Nepal Prime Minister Girija Prasad Koirala and Maoist leader Prachanda met on Friday for the first round of direct talks aimed at resolving the country's decade-long insurgency.
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Coverage: The Nepal Crisis
The talks took place at the Kathmandu residence of Koirala where Prachanda arrived with a deputy under heavy security, sources said.
This is the first meeting between Prachanda, whose real name is Pushpa Kamal Dahal, and the country's prime minister since the beginning of insurgency in 1996.
Home Minister Krishna Sitoula held talks with Prachanda on Thursday after which the two sides announced that Koirala and the rebels' leader would soon be holding talks. They also announced that elections to the constituent assembly would be conducted 'as soon as possible.'
Elections to a constituent assembly, which would write a new constitution possibly clipping King Gyanendra's powers, was one of the key demands of the rebels for resuming peace talks.
During the two-hour meeting, rebel and government representatives agreed to form a monitoring committee comprising peace activists and human rights workers, with help from the United Nations.
The first round of talks to end the conflict took place last month when the two sides agreed upon a code of conduct. The rebels have observed a ceasefire with the interim government that came to power in April after mass protests forced King Gyanendra to end 14 months of direct rule and reopen parliament.
Top leaders of the Seven Party Alliance are also present at the summit talks between Koirala and Prachanda being held at the prime minister's residence at Baluwatar, a prime minister's aide said. Home Minister Krishna Sitoula is leading the government's negotiating team while Krishna Bahadur Mahara heads the Maoists' delegation.
The main issues being discussed in the meeting are holding constituent assembly election to draft a new constitution, formation of an interim government including the Maoists, monitoring the ceasefire with the help of UN and arms management, a member of the negotiating team said.
