KATMANDU, Nepal (AP) _ King Birendra on Wednesday formally inaugurated a sugar mill built largely with Chinese aid in Sunuwal, 100 miles southwest of the capital Katmandu.

The mill can produce 10,000 tons of sugar a year, meeting about 20 percent of the needs of this landlocked country that borders India and the Tibetan region of China, Radio Nepal said.

Beijing reportedly provided $10.7 million in aid for the project, equivalent to 75 percent of the cost of the mill. The balance was funded by the government of Nepal, one of the least developed countries in Asia.