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Maoists 'quit Nepal government' Maoists 'quit Nepal government'
(30 minutes later)
Former Maoist rebels in Nepal say they have resigned from the interim government in a dispute over the future of the monarchy. Former Maoist rebels in Nepal say they have quit the interim government.
The Maoists have been demanding the immediate abolition of the monarchy. The Maoists have been demanding the abolition of the monarchy ahead of constituent assembly elections due to be held in November.
Elections are due to be held in November for a constituent assembly to decide Nepal's future. Analysts say the Maoists look set to gain few votes. The prime minister says the constituent assembly itself must decide the monarchy's fate. Analysts say the Maoists will do badly in the polls.
The Maoists ended a 10-year insurgency last November in which their aim was a communist republic. The Maoist move is the biggest setback to peace efforts since the rebels ended their insurgency last November.
More than 13,000 people were killed during their 10-year fight for a communist republic.
Failure
The Maoists and the other seven parties in the interim government had been meeting in the capital, Kathmandu, to try to iron out their differences over the monarchy.
King Gyanendra's future is the centre of debate
"We have pulled out from the government this afternoon as the talks failed to reach an understanding on the immediate abolition of monarchy and a proportional election system," a senior Maoist, Dev Gurung, told the AFP news agency.
One of the Maoists in the interim cabinet, Krishna Bahadur Mahara, blamed Prime Minister Girija Prasad Koirala for the breakdown in talks.
"The prime minister was not ready to negotiate so his party is responsible," Mr Mahara said.
He ruled out any return to armed conflict. "Now we will focus on peaceful protests to meet our demands."
Mass rally
Correspondents say that Prime Minister Koirala has taken a firm line in refusing to bow to the Maoists' demand that King Gyanendra be stripped of his title and the monarchy abolished.
The Maoists have called a mass rally of their supporters in Kathmandu later on Tuesday.
The civil war brought a decade of bloodshed to Nepal. Human rights groups regularly accused both the Maoists and the military of gross human rights abuses.
The fighting brought further poverty and misery to one of the poorest countries in the world.
King Gyanendra was forced to surrender his powers in April 2006 after the Maoists joined forces with a coalition of seven political parties in a sustained campaign of street protests against his direct rule.