At that time, i.e. in the 50s, the only channel used for trade with China by land route was Tatopani via the Araniko Highway. However, business transactions were not done in large scale and through modern technology as it is now.

Vehicles (especially German vans) operated in small numbers. Many people used to walk from Miteri bridge in Liping of Tatopani to Khasa. 

According to the data published by the National Bank in 1992/93, the annual import trade with China through the Tatopani border was around 900 million. The export trade from Nepal to Khasa was worth 16 million. A lot of Nepalese goods that are consumed in the market were sent. The main items exported from Nepal at that time were flour, vegetable ghee, construction materials, cement, paint etc. Some food items were also delivered to Khasa.

It was expected that if the transport connection from Kathmandu to Lhasa could be increased, it would help in the promotion of tourism and trade between Nepal and China. For that purpose, a bilateral agreement was signed between Nepal and China on 23 Baisakh 2051 to operate transport via Kathmandu-Tatopani-Khasa to Lhasa. The then Construction and Transport Assistant Minister Shivraj Joshi signed the agreement. But there was a delay for the Nepalese study team to go to Tibet in order to conduct the transport by land route of about 900 km to Lhasa. There was also concern that the agreement to operate the transport would not be implemented. 

Two months after the agreement, Assistant Minister Joshi said that the vehicle had to go across the mountains and the traffic rules between the two countries were different and there was a delay. On the Lhasa highway, which has to be crossed at an altitude of about 17,000 feet, there are different rules for driving vehicles on the right side in the Tibetan area and on the left side in the Nepali area.

According to the border trade agreement, the vehicles of both countries were able to cross the border between Nepal and Khasa in Tibet. But even though the Chinese authorities brought vehicles up to twelve vehicles, the Nepalese were not allowed to take private vehicles. Some businessmen used to say that it was difficult to believe the matter up to Lhasa in the absence of clear laws, especially when Nepalis were not able to take vehicles. Officials of the Nepal Himalayan Cross Trade Association were complaining that the border can only be reached by crossing the check post at 14 places on the Arani highway. Their complaint was that Nepali businessmen were discouraged by such behavior.

The road from Khasa to Tibet, about 200 km to Lhasa, was very difficult. There was not even one shop in that section. Tamla Ukyaw, former Imperial Nepalese Consul General for Lhasa, said that in 1984 and 1985, when he was in Lhasa, there was a principled agreement between Nepal and Tibet on trade and tourism at the local level. He said, 'Even if vehicles can be safely delivered to Khasa, Nepali products will find a market.' At that time, most of the food items and construction materials for Khasa region were going through Tatopani Customs. Things like vegetable ghee, flour, sugar, eggs, noodles used to go from Nepal. 

Air communication was also established between Nepal and Lhasa. China Airlines was flying Lhasa-Kathmandu once a week. Nepal believed that both import and export trade would be facilitated if the transport was operated up to Lhasa. Satyantran Narayan Shrestha, head of the Tibet branch of the Ministry of Commerce, said that China is reluctant to implement the Letter of Credit (LC). He said that when LC is not implemented, various charges are added when exporting goods. At that time, Tatopani Customs did not even have a telephone.