Nepal govt calls truce with Maoists

Kathmandu: Nepal's Cabinet declared a cease-fire on Wednesday with Maoist rebels and urged them to open peace talks with the government, Deputy Prime Minister Khadga Prasad Oli said.

He added that all terrorism-related charges will be dropped against the insurgents, and the government will end its designation of the Maoists as a terrorist group.

The moves are in response to the unilateral truce announced by the rebels last week after three weeks of often-bloody protests forced King Gyanendra to yield control over the government last week.

The Maoists played a key role in the protests and appear headed for a role in the political mainstream. They have been fighting since 1996 to create a communist state. The insurgency has left 13,000 people dead.

"The government decided to declare a cease-fire," Oli said. ''All terrorist charges on the Maoists have been removed. We are urging the Maoists to come forward for peace talks.''

Added Finance Minister Ram Sharan Mahat: ''We expect the Maoists to come to the talks.''

Earlier in the day, US Assistant Secretary of State Richard Boucher said Washington isn't ready yet to drop the Maoists from its terror list.

''We can't forget the issue of the Maoists in Nepal, what they have done in the villages, what they continue to do in the villages,'' he told a news conference.

''They killed people, they extorted money. So our removing them from the terrorist list is not going to happen until they stop that behavior.''

Mahat said the Cabinet also invalidated February's municipal elections for mayors and city and town council members. No date was immediately set for new balloting.

It was the first move to rescind all of the legislation, decrees, appointments and other actions taken since the king grabbed power in February 2005.

Mahat, sworn in Tuesday with the rest of the new seven-man Cabinet, also said the government will give Rs 1 million (about US$14,000) to each of the families that died in three weeks of protests that forced the king to yield power last week.

At least 17 protesters died when riot police tried to quell the demonstrations, opening fire with live rounds and rubber bullets.