Ceasefire declared in Nepal

A statement by the rebel leader, Prachanda, said the ceasefire would take immediate effect and that the rebels were ready for peace talks.

" Both sides have announced a ceasefire - the peace process will begin immediately "
Planning and Works Minister Narayan Singh Pun

Shortly afterwards, the Nepalese Government said it would also observe a suspension of hostilities after nearly seven years of fighting that has left more than 7,000 people dead.

A government minister has been appointed to mediate with the rebels.

Conditions

The statement from the Maoists was faxed to news organisations in the capital, Kathmandu.

It comes after nearly 24 hours of speculation and rumours about a pending ceasefire.

In his message, Comrade Prachanda said the Maoists had agreed to observe a ceasefire after talks with the government, and had called upon distant rebel units to be aware of this.

A dialogue would begin soon, the statement said, and the government had precipitated the move by agreeing to three conditions:

• To stop calling the Maoists terrorists
• To lift rewards offered for their arrest
• To withdraw international police warrants issued for the rebel leaders

The Maoist leader also reasserted his group's demands for constitutional changes in Nepal. However, he made no mention of the rebels' long-standing demand for the abolition of the monarchy.

The BBC's Daniel Lak in Kathmandu says the government concessions appear to amount to less that what the rebels have in the past demanded. But it is thought the government has also given some ground as well.

Peace hopes

For the government, Planning and Works Minister Narayan Singh Pun welcomed the move, and said a more detailed response would be given shortly.

A government statement said Mr Pun would lead a negotiating team that would begin talks with the rebels as soon as possible.

Peace talks in 2,001 collapsed in acrimony and more violence when the Maoists walked out.

Since then, there have been more than 4,000 deaths in intense fighting in rural areas of the country.

Casualties soared after the army entered the fray just over a year ago.

Our correspondent says military pressure may have added to the Maoist decision to come to the negotiating table, but neither side looked likely to win outright any time soon.

Nonetheless, the long suffering people of Nepal, with their security and economy in ruins, will be desperately hoping that peace is now possible in their country.