E/CN.4/1995/31/Add.3 page 6 Nepalese presence in Bhutan was confined to Samchi and the hills of Chirang. It was after that date that persons of Nepalese origin settled in areas in southern Bhutan. The first settlers, who were farmers, were given Bhutanese citizenship in 1958. In the 1960s, according to the Bhutanese, there was an influx of ethnic Nepalese who crossed illegally into Bhutan to work as contractual labourers. These people are considered by the authorities to be economic migrants. The Government felt that Bhutan, which had a small population and a favourable land-people ratio, abundant employment and business opportunities arising from rapid economic progress and expanding development programmes, became an economic haven for ethnic Nepalese facing population pressure and job scarcity in their own areas, i.e. territories contiguous to Bhutan’s southern borders, the Duars region of West Bengal and Assam, and the neighbouring areas of Kalimpong, Darjeeling and Sikkim, all areas dominated by ethnic Nepalese, as well as persons coming from eastern Nepal. According to the Bhutanese authorities, the massive illegal immigration that took place after 1961 could not have been accomplished without the active connivance of the local population in southern Bhutan and the corruption of the local administration. 18. While the Working Group is not in a position - nor is it inclined - to opine on the merits of the situation now prevailing in southern Bhutan in relation to the legitimacy of the claims of persons of Nepalese origin, a historical perspective nevertheless leads to a better understanding of the problem and explains why under the Bhutan Citizenship Act, 1985, a person permanently domiciled in Bhutan on or before 31 December 1958 and whose name is registered in the census register maintained by the Ministry of Home Affairs is deemed to be a citizen of Bhutan by registration. The Act is designed to exclude all Nepalese who allegedly illegally entered Bhutan in the early 1960s. The Group takes note of the fact that the refugee camps in Nepal consist of persons of Nepalese origin who allege that they are being denied their legitimate right to settle in Bhutan. The Bhutanese authorities, on the other hand, claim that the number of refugees has been rising since 1991, when there were only 300, to nearly 100,000. The refugees further allege that they were forcibly evicted from Bhutan. The Working Group believes that the Bhutanese and the Nepalese Governments are seeking to resolve the issue of the origin of the persons in the refugee camps bilaterally and hope to reach a settlement in the near future. 19. The above historical perspective is also necessary to appreciate the context in which persons of Nepalese origin have been detained in Bhutan. The Bhutanese authorities claim that the genesis of terrorism in southern Bhutan is the result of instability wantonly created by persons of Nepalese origin. Owing to inadequate protection, the Bhutanese residing in southern Bhutan are exposed to acts of violence. A summary of terrorist activity as of 17 October 1994 was given to the Working Group by the Royal Government of Bhutan and is attached as annex I. This reflects the official Bhutanese position and seeks to explain the reason for the detention and trial, under the National Security Act, 1992, of various persons of Nepalese origin for acts of violence.