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.

Nepal’s opposition alliance called off weeks of devastating pro-democracy protests today after King Gyanendra gave in to a demand to reinstate Parliament, but Maoist insurgents quickly rejected the royal announcement.

Nepalese security forces fought back a communist rebel attack today, as foreign diplomats sought to halt the country’s political crisis and officials placed the capital, Kathmandu under curfew for the fifth day due to anti-monarchy protests.

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.

Amnesty International’s secretary general urged donor nations to suspend military aid to Nepal today, following the king’s declaration of a state of emergency in the Himalayan nation.

Maoist rebels and government forces temporarily halted fighting in Nepal today, a step officials hope will lead to peace talks to end the country’s eight-year insurgency.

The leader of Nepal’s communist rebels today offered a month long ceasefire in the six year guerrilla war after a week of fierce fighting in which the government said hundreds of combatants have been killed.