Both sides have claimed victory in the London High Court's dismissal on 21 February of an application by seven former Gurkhas for equal pension with British soldiers.

It may be politically incorrect in this day and age to allow recruitment of soldiers into foreign armies, or to pay foreign soldiers less than its own soldiers but the Nepali economy depends on remittances from its Gurkhas in the Indian and British armies, and the verdict means recruitment will continue.

In his decision last Friday, Justice Sullivan said the difference in pay and pensions were not "disproportionate or irrational" given the differing standards of living in Nepal and Britain. But he cautioned the British Ministry of Defence that it may be providing insufficient privileges for families of servicemen from Nepal.

The verdict allowed both sides to claim victory, but it was clear that the court had rejected the Gurkhas' counsel Cherie Booth's claim that the pension scales were discriminatory. British officials estimated it would have cost ?2 billion to compensate the soldiers if the verdict had gone against them. In such a case, they had said, Gurkha recruitment would have been terminated.

The judge urged both sides in the dispute to resolve the issue through negotiation, and refused the Gurkhas permission to appeal. Interestingly, the Gurkha Army Ex-Servicemen's Organisation (GAESO) that has been led the legal charge against the British government, welcomed the verdict.

GAESO's attorney, Gopal Siwakoti 'Chintan', told reporters Wednesday: "The court admitted there has been discrimination, we can now flood the British courts with hundreds of cases in future."

Deputy chief of mission at the British Embassy, David Ward, told us, "The court judgement has clearly identified that very serious allegations of discrimination are clearly not true, and have found that the terms of service which the British government offers to Gurkha soldiers are fair. This provides a sound basis for future planning and operations."

Defence Ministry sources said Britain was keen to continue recruitment of Gurkhas on the basis of the present understanding between the two governments. "We have to be very sensitive on what is laid down on the 1947 tripartite agreement (between Britain, India and Nepal) as it specifically sees return of the Gurkha soldiers to their home country upon the completion of service," a senior defence official told us. "If that arrangement were to change now, our government would look very seriously at whether the present arrangement would continue."

Many ex-Gurkhas are disappointed about the costly legal battle being waged in their name. Pragmatic groups like the Nepal Ex-Servicemen Association say they may gain more lobbying through diplomatic channels. They say
continued recruitment of Gurkhas is in Nepal's national interest.