Kathmandu, June 13 -- Throughout its 260-year history, Nepal has tried to keep an equilibrium between its two giant neighbours. Past rulers have tried to ensure friendly relations with India and China even if the two are not exactly friendly with each other.

But just how delicate this balancing act can be was thrown into sharp relief last week in two events.

A Nepali was among 25 killed in an attack in Kashmir last month, and at a seminar on regional terrorism this week in Kathmandu foreign policy wonks felt Nepal needlessly irritated India by not being more forthcoming in its condemnation of Pakistan.

Then, at the annual Kathmandu International Mountain Film Festival (Kimff) Chinese documentaries on Tibet were screened under a China...