Nepal’s parliament speaker said communists have agreed to stop blocking parliamentary proceedings so that politicians can choose a new government.

Troops were deployed to protect key areas of Nepal’s capital Katmandu today – a day after police clashed in the streets with protesting communists who are demanding that the president back the firing of the country’s army chief.

Nepal’s political parties were holding crisis talks on forming a new coalition government today after the prime minister resigned in a power struggle with the president over enlisting former Maoist rebels into the military.

NEPAL’S prime minister resigned yesterday amid a power struggle over his firing of the army chief, saying he was stepping down to “save the peace process” that brought the Himalayan nation out of a decade-long civil war.

NEPAL’S prime minister fired the army chief yesterday after accusing him of defying government orders, prompting a key party to quit the coalition government and plunging the Himalayan country into a political crisis that could endanger its peace process.

Nepal authorities said today they finished vote-counting and were preparing to announce results from elections for a constitutional assembly, the first since communist rebels gave up their insurgency and joined mainstream politics.

Nepal’s Maoist former rebels continued today to sweep initial results announced in elections key to a peace process that saw them give up their 10-year armed revolt.

The former leader of Nepal’s bloody Maoist insurgency captured a seat today on a new assembly that will chart the Himalayan country’s future, election officials said.

Nepal celebrated the end of a bloody 10-year insurgency by declaring a public holiday today, as the international community hailed the deal under which communist rebels will join an interim government.

Maoist rebels today agreed to peace talks with Nepal’s government, raising hopes for an end to a decade-old insurgency that has killed 13,000 people.

NEPAL’S new prime minister announced a seven-member Cabinet yesterday, designating a communist as his deputy and foreign minister.

Nepal’s new prime minister announced a cabinet today that includes a communist party leader as his deputy, and he faces the daunting tasks of negotiating peace with Maoist rebels and cementing the return of democracy.

THE newly-recalled Nepalese Parliament called yesterday for a ceasefire with communist rebels and elections for an assembly to rewrite the constitution.

A visibly uncomfortable king promised to restore democracy in Nepal, in a bid to end a bloody political crisis that has engulfed the Himalayan nation.

NEPALESE King Gyanendra’s vow to return multiparty democracy to his Himalayan nation after weeks of bloody protests was immediately rejected by the opposition yesterday.

Nepal’s King Gyanendra today vowed to bring multiparty democracy back to his Himalayan nation, 14 months after he seized control and set off a bloody political crisis that has engulfed the country.

Baton-wielding police beat journalists who were protesting against a media clampdown in the Nepalese capital of Kathmandu today, as a general strike called by the opposition to demand the king’s departure shut down the Himalayan nation.

Pro-democracy activists vowed to hold a mass rally today in Kathmandu despite the royal government’s ban on demonstrations in Nepal’s capital, as protests escalated against King Gyanendra’s rule.

Communist rebels attacked two towns in south-western Nepal, prompting a fierce overnight battle in which at least nine rebels and three members of the security forces were killed, officials said today in Katmandu.

Police in Nepal fought frenzied street battles today with activists during their four-day general strike against the king’s rule, and 150 people were reported arrested in a crackdown that has sparked international condemnation.

Police clashed with pro-democracy protesters in the Nepalese capital Kathmandu today, firing tear gas and beating activists with batons just hours after authorities lifted a ban on demonstrations in the Himalayan kingdom’s capital.

NEPAL’S royal government vowed yesterday to hold municipal elections next month despite a boycott by major parties, street protests, a candidate’s assassination and rebel violence that killed 26 over the weekend.

Nepal’s royal government pledged today to hold municipal elections next month despite a boycott by major parties, disruptive demonstrations, the assassination of a candidate and rebel violence that left 26 dead over the weekend.

NEW rebel violence killed at least 25 people in Nepal yesterday, while political parties continued to defy a government crackdown on protests against King Gyanendra’s direct rule over the Himalayan kingdom.

New rebel violence killed at least 26 people in Nepal today, while political parties continued to defy a government crackdown on protests against King Gyanendra’s direct rule over the Himalayan kingdom.

Nepal’s main political parties vowed today that they would continue to hold protest rallies until King Gyanendra steps down as absolute ruler.

Nepal’s political parties today rejected on offer from communist rebels to help the campaign to restore democracy in the Himalayan nation, saying the guerrillas must renounce violence before the two groups can unite to challenge King Gyanendra.

Police in Nepal stormed the house of former Prime Minister Sher Bahadur Deuba and took him into custody today after he failed to appear before an anti-corruption commission, in a crackdown by the royalist government that critics say is politically motivated.