Sources said the US embassy has demanded a compensation of US $ 5 million, while other embassies have expressed their inability to cooperate with the government, citing various reasons. [break]
"We are trying to resolve the issue by holding an informal meeting with the concerned embassies," said a top government official, asking to be unnamed.
The road expansion drive being carried out by Kathmandu Valley Town Development Authority (KVTDA) in collaboration with the Metropolitan Traffic Police Division has affected six diplomatic missions -- Japanese, American, Russian, French, German and Chinese embassies.
While there is official response from Chinese and French embassies, Japanese embassy has citied financial reason for its inability to demolish its compound walls.
While the German embassy is situated in Gyaneshwor, the remaining five other embassies are situated in Lazimpat and Baluwatar.
Sources said the German embassy has said it would not be left with any compound wall if it knocks down the existing one.
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