This report concerns the political developments and bilateral relations of Nepal with the United States. Nepal has been described as a yam between two boulders. Nepal's geopolitical status as a small, landlocked buffer state situated between two Asian giants - India and China - has severely constrained its foreign policy and trade options. Although Nepal has sought to maintain friendly relations with both neighbors, its cultural, linguistic, religious and economic ties with India historically have been much closer than those with China.
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