Kathmandu, February 7:

The US Mission in Nepal has been authorised to continue economic and development assistance to the Government of Nepal and to the peace process here, even if the Maoists join the government.

“The authorisation comes in the form of a licence granted to the US Department of State and US Agency for International Development (USAID). The licence was issued on February 5 by the US Department of Treasury’s Office of Foreign Assets Control (OFAC) and is valid until February 28, 2008,” stated a press release issued by the American Centre here today.

“This licence enables the US Mission to meet its commitments to continue supporting the people of Nepal and the peace process,” the release quoted US Ambassador James F Moriarty as saying.

The embassy and its development arm, USAID/Nepal, requested the State Department and USAID in Washington to seek the licence because of US prohibitions against aid to terrorist organisations.

The release further stated that the US government, however, would continue to call Maoists a terrorist organisation. The US Mission to Nepal provides most of its development assistance in Nepal through NGOs.

“The ambassador stressed that if the Maoists join the Cabinet without abandoning violence, the US Mission will work to ensure that the Maoist ministers cannot claim credit for US assistance,” the release stated.

In coming days, the US Mission will be consulting with Washington on licence requirements and also briefing USAID/Nepal contractors and grantees in Nepal on this positive development, the release further said.