THE impoverished Himalayan nation of Nepal entered a new era yesterday as Maoist insurgents and the central government signed a peace deal ending a decade of civil war that has claimed at least 12,500 lives.

Nepal’s prime minister said today he took a major political gamble partnering with communist rebels, which has resulted in peace being restored.

Nepal could rewrite its constitution within 18 months to meet a key demand of communist rebels who joined the political opposition in a campaign that forced King Gyanendra to relinquish power, the new deputy prime minister said.

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.

Nepal’s new prime minister conferred with top political leaders today to decide on a cabinet that will have the key task of negotiating peace with the country’s communist rebels, party officials said.

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

Nepal’s Parliament reconvened today for the first time in four years, after weeks of often-bloody protests forced the king to give up absolute power and return the country to democratic rule.

NEPAL’S newly-appointed prime minister was forced to miss a victory rally yesterday because of an illness which may keep him away from the reopened parliament.

Nepal’s communist rebels today declared a three-month halt in attacks, lifting a key burden on the new government poised to take control after weeks of bloody protests forced King Gyanendra to reinstate Parliament.

TENS of thousands of people celebrated in the streets of Nepal yesterday as weeks of pro-democracy protests were called off after the king gave in to a key demand to reinstate parliament.

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.

BONO and Taoiseach Bertie Ahern will address the World Newspaper Congress, which will held here for the first time in June.

Nepalese police have used tear gas and baton charges to disperse thousands of protesters demanding the resignation of Prime Minister Girija Prasad Koirala.