Nepal and Bhutan are independent kingdoms. Nepal is a Hindu state. Today Bhutan enjoys special relations with India but China has not readily accepted the position. Besides, there is every probability of Bhutan asserting its status with the passage of time. Both countries are still living in a feudal age. Though communism has not made much headway in either country, the possibility of the doctrine gathering adherents cannot be ruled out.

More impor­tant, if the rulers in either country find their position undermined by political agitation aimed against their position, the temptation to play the dangerous game of trying to set off one group of power seekers against another will be there; but at the same time, such tactics gives opportunity for outsiders in intervene Any internal trouble, whatever its sources, may be attempted to be exploited by China for its own ends. It is in the interests of India to so conduct itself in its relations with these states that the administrations there­in remain politically stable.