  The relativistic version of finite-range-regularisation is proposed. The
covariant regulator is generated from the nonlocal Lagrangian. This nonlocal
interaction is gauge invariant and is applied to study the nucleon
electromagnetic form factors at momentum transfer up to 2 GeV$^2$. Both octet
and decuplet intermediate states are included in the one loop calculation.
Using a dipole regulator with $\Lambda$ around 0.85 GeV, the obtained form
factors, electromagnetic radii as well as the ratios of the form factors are
all comparable with the experimental data. This successful application of
chiral effective Lagrangian to relatively large momentum transfer make it
possible to further investigation of hadron quantities at high $Q^2$.
