It was at this time when the Newars of the central Kathmandu Valley developed a popular Hindu-Buddhist culture. Between the 8th and 11th centuries, many Buddhists fled to Nepal from India and founded the town of Gurkha. In the 18th century, Gurkha armies seized much land across the boundaries of Nepal, but an attack on Tibet saw strong resistance from the Chinese. The Gurkha’s were defeated in 1792 and entered into treaty relations with Great Britain, but this soon turned to war as the Gurkha’s tried to expand into India’s territory. The British were victorious and forced a retreat by the Gurkha’s. Prior to 1989, Nepal maintained a position of neutrality in foreign affairs, balancing relationships with China, the USSR, the United States and India. India's geographical proximity and its extensive economic aid made it the most influential foreign power in Nepal, but there was one major problem; India’s constant military and political interference in Nepal's affairs. In 1969, Nepal cancelled an arms agreement with India and ordered them to withdraw their troops from Kathmandu. In 1989, the Indian government closed its borders to all economic aid for Nepal. This brought Nepal's economy to a complete standstill, forcing the Nepalese to form closer links with the Chinese. The prince then committed suicide and the king’s brother took to the throne. The new king was opposed to many constitutions agreed upon by his brother. Elections were postponed indefinitely, leading to riots throughout the country. In 2003, revolt in the countryside was growing and there were increasing public protests against the king. The king promised to hold parliamentary elections in 2005, but in February 2005, a state of emergency was declared by the king, placing opposition figures under arrest. He took direct control of the government as chairman of a new cabinet. Things may not be 100 per cent stable in Nepal, but the economic and political situation has certainly improved over the last year and it if it continues to do so, then a permanent agreement may be reached. | 
