Nepal rebels ponder peace talks

By Sushil Sharma
BBC correspondent in Kathmandu

The Maoists have insisted on the release of three leaders

Maoist rebel leaders and their peace negotiators have met in western Nepal to discuss a resumption of peace talks that have been stalled for the past two months.

The meeting follows a formal government appeal to the rebels earlier this week to return to negotiations.

Sources close to the rebels say the meeting began at a remote hideout in the west of the country.

There has however been no independent confirmation.

Mutual mistrust

The rebels are expected to make a formal response to the government's call for negotiations after the meeting.

They had earlier insisted that the government honour the decision made at previous talks to free three senior leaders and release information about members who had allegedly disappeared in government custody.

The government has indicated its readiness to meet the Maoists' demands once the rebels agreed to the resumption of dialogue.

Mutual mistrust is widely believed to have blocked progress in the peace process.

An escalation in arrests, abductions, extortion and minor skirmishes across the country in recent weeks have fuelled concerns of a resumption of hostilities.

A tenuous peace process has been in place since January to end the Maoist insurgency that has claimed 7,000 lives in the past seven years.