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| Background: |
Under British influence a monarchy was set up in 1907; three years later a treaty was signed whereby the country became a British protectorate. Independence was attained in 1949, with India subsequently guiding foreign relations and supplying aid. A refugee issue of some 100,000 Bhutanese in Nepal remains unresolved; 90% of these displaced persons are housed in seven United Nations Office of the High Commissioner for Refugees (UNHCR) camps. Maoist Assamese separatists from India, who have established themselves in the southeast portion of Bhutan, have drawn Indian cross-border incursions.
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