Who Gets Royalty?

Is royalty being paid by the British or Indian governments, either to the Nepali Government or to some other entity, for the privilege of recruiting Gurkha soldiers? It certainly began that way. According to researcher Vidya Bir Singh Kansakar, "In order to ensure the regular supply of the Nepalese in the Indian army, in 1919, the British government provided the Nepal government with a gift of one million rupees annually in perpetuity. This gift . .. (was) treated as the ruling Prime Ministers' personal income, and they deposited the money in foreign banks, particularly in India." In August 1945, Viscount Wavell, the Viceroy, sanctioned a raise, and the annual "present" was hiked to two million rupees.

What has happened since? The British have been long gone from India and the Ranas from the seat of power in Kathmandu. It seems that the Indian government continued to transfer two million rupees through the State B ank of India to the Nepal Rastra Bank till 1976-1977. That year, officials in Kattunandu recall, the annual payment was unilaterally halted from the Indian side. There was some discussion in the Nepali Government, which decided to quietly allow the matter to lapse. Raising the issue for so paltry a sum would only lead to international embarrassment.

Officials in the British Embassy maintain that they have no knowledge of any continuing payment of "royalty" for "use" of the Gurkhas.