Baburam Bhattarai led the rebels in failed peace talks
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Maoist rebels in Nepal, who have been fighting for a communist republic for the past 10 years, have admitted to a rift in their ranks.
Rebel leader Prachanda has said that he had serious differences with Baburam Bhattarai, the second most powerful person in the rebel movement.
Nepal's state-owned media had reported recently that Mr Bhattarai and his wife, Hisila Yami, had been expelled.
The rebels have denied the reports, and ruled out a split in the party.
But in an e-mail statement, Prachanda has listed a number of serious differences with Mr Bhattarai.
He also appeared to confirm that Mr Bhattarai had been stripped of key positions he held in the party.
Morale
Mr Bhattarai headed the Maoist community's party political wing and led the rebels in failed peace talks with the government in 2003.
Since then there have been frequent newspaper reports alleging a rift between him and Prachanda - apparently over Mr Bhattarai's wish to resume peace talks.
Without elaborating, Prachanda said in a statement that Mr Bhattarai was carrying out his responsibilities assigned by the party.
Correspondents say that the personality clash between the two leaders had never been a secret, but this is the first time that their differences have been made public.
Analysts say such public airing of differences could affect the morale of the rebels.
The conflict has cost 11,000 lives so far, the army says
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Violence has escalated in Nepal following the rebels' withdrawal from negotiations in August 2003.
About 11,000 people have now died in the 10 years since the rebels began their fight for a communist republic, the army says.
In February, with the security situation worsening, King Gyanendra sacked the multi-party government, seized direct powers and declared a state of emergency.
Prachanda responded by promising to step up what he called armed resistance.
During the state of emergency, the army said it had inflicted some heavy defeats on the rebels.
On Saturday, King Gyanendra lifted the state of emergency evoking a mixed reaction from opposition parties and legal experts.