The meeting between the PM and the Leader of the Opposition, Madhav Kumar Nepal on February 22 as an attempt to break the current impasse failed to reach a breakthrough. Nepal told the PM that he would have to consult other opposition parties on the issue. The five opposition parties insist that the PM resigns on moral grounds in connection with the government approved lease of an aircraft from Lauda Air of Austria. They suspect corruption, in which the PM is seen to have been involved. On February 24, the national airline issued a "white paper" refuting any irregularities in the lease contract. The document provides details of the procurement process. At the time when some government agencies objected to the leasing of another aircraft, the lease agreement was already completed and advance payments made to Lauda Air. None of the opposition parties involved in the parliamentary boycott has any tangible evidence of any wrongdoing. Their goal is to unseat the PM, a very forceful politician who is highly unpopular among all leftist political parties. At a special meeting by NC lawmakers, the PM received their full support in his determination not to give in to the opposition's demands for his resignation. However, parliamentary proceedings continue to be at a standstill.

When one considers the ideological division of the country, with the Nepali Congress and the combined leftist movement each having about one half one half of the popular vote, on will realize that a government of any political party would have a very difficult time to govern effectively. Although the leftist parties are accusing the government of a failure to maintain law and order in the country, they themselves vehemently object to the passing of any laws or ordinances formulated to address the Maoist problem. Because no government in office since the start of the Maoist "people's war" more than five years ago dared to take effective measures to address the Maoist problem, the Maoists were able to establish their presence in virtually every part of Nepal. The present NC government has been in office for two years, yet it has not been able to deal with the problem so far. The Maoist leadership is posturing itself as if they has the upper hand. They have also intensified their attacks on the police posts that are currently their main target. On April 2 alone, they killed 35 police personnel and abducted 23 and inflicted injuries to many more, yet other than condemnation, no counter measures to deal with the escalating violence have been announced by the government. During the first week of April, Maoist attacks on police posts in four districts left 72 police personnel dead, at least 40 seriously injured and 35 abducted.  

Also, the two ordinances intended to address the Maoist problem we due to be passed by parliament by April 6, but could not due to the opposition's boycott of the parliamentary proceedings. The current unproductive session of parliament has also been ended.  On April 8, the country celebrated the 11th anniversary of the restoration of multi-party democracy, however, there was little reason for jubilation in view of the current political turmoil faced by the country. Although the government discussed available options to deal with the recent escalation of Maoist terrorist activities, no decision was yet made. The communist opposition, in its verbal attacks is blaming the government for the failure to maintain law and order in the country. Yet it is the communist opposition's lenient view of the Maoist activities that is making it difficult for the government to resort to drastic measures to stop the violence. The nine leftist parties alliance, which includes the main opposition CPN/UML party, is determined to force the PM to resign. In their latest move, as of Monday, April 16, they plan to block the entrance to the government offices, in order to prevent the PM from entering them.

On April 12, the General Secretary of the main opposition CPN/UML Madhav Kumar Nepal made the following statement: "We demanded Koirala’s resignation in the parliament and now we are doing the same on the streets. If street protests also fail to force Koirala to step down, then in such a situation we could come to take arms ... if such situation was to arise,  what then will be the fate of the country?" Although some of the leftist parties including the main opposition CPN/UML participate in the mainstream parliamentary political system, their conduct reveals their revolutionary character that is not too far distant from that of the Maoists.

Although it was rather naive on the part of the leftist alliance to assume that they would be able to prevent the PM from entering his office, the unsuccessful attempt was made. Some of the demonstrators threw rocks at the PM vehicle as it drove toward the government offices. Subsequently, the situation turned rather ugly when the angry demonstrators resorted to vandalism and by setting on fire a number of vehicles and motorcycles, some of which belonged to private citizens or corporations. As was to be expected, the leftist alliance blamed the riot police for the mob's behavior. Although by the end of the week the situation in the city has calmed down, the six-party alliance that includes the main opposition party CPN/United Marxist Leninist and also the CPN/Marxist, Leninist, Maoist threatens to continue their agitations aimed at forcing the PM to resign for his alleged involvement in the RNAC jetliner lease contract.

The local press has also been critical of the undemocratic actions of opposition parties: "The use force and intimidation to oust a prime minister chosen through elections is inappropriate unless he was proved guilty of something. For communist opposition parties, who are schooled in authoritarian methods of governing, stalling the house, paralyzing the streets and creating a national sense of anarchy could be seen as a natural extension of their beliefs." The comments made by the US Ambassador and the EU that their countries would object to any change of government by unconstitutional means were considered by CPN/UML leadership as interference in Nepal's internal affairs. The PM also made it clear that he is not going to resign under pressure from the opposition.

The government also announced an Integrated Security and Development Program (ISDP) intended to be implemented by the army in the seven districts most affected by the Maoist insurgency. As was to be expected, the opposition parties immediately voiced their opposition to the ISDP, because according to their partisan view the program was intended to suppress political opposition. On one side they accuse the government of failure to maintain law and order in the country, yet at the same time are opposed to any measures that the government would introduce in order to bring an end to the Maoist atrocities.

The leftist opposition political parties continue their partisan demonstrations demanding the resignation of the PM. A minor twist has been added in the protest program. During the last week of April, the Commission for the Investigation of Abuse of Authority ordered the detention of a former Minister of Tourism and also a number of former executives of the state owned airline in connection with suspected irregularities in the jetliner lease contract. The opposition parties have been demanding the PM's resignation on the suspicion of his personal involvement in the lease contract. Now, since the PM has not been personally implicated in any scam, they are demanding his resignation "on moral grounds", because the detained minister is an MP of the ruling party.

While the Lauda Air jetliner lease contract was being investigated, the Parliamentary Public Accounts Committee has undertaken its own investigation of the previous two jetliner lease contracts with China South Airlines and found that they also involved corruption. The first CSA contract was negotiated when a high-ranking Communist leader was the Minister of Tourism and Civil Aviation and was endorsed by him. The contract was subsequently extended under the terms, but at that time the Minister belonged to the Nepali Congress party. Since the PAC implicated a prominent member of the official opposition Communist party that is currently engaged in tirade against the PM, because of their suspected irregularities in the Lauda Air lease, the party leadership immediately condemned the PAC decision to seek legal action against all officials involved in the CSA lease contracts and formed its own committee to "investigate" the PAC findings.

The CPN/UML continues it's one point agenda to force the PM to resign. On May 27, the UML announced a three-day nationwide general strike, an action supported by all ten leftist parties. Although the party leadership proclaimed that their protest action would be peaceful, it turned violent. The demonstrators vandalized government office in an effort to close them down and set several government owned vehicles on fire. The toll was more than 140 people injured and four people killed. Some sick people also died, because road closures. The damaged caused by vandalism amounts to millions of rupees in addition to economic losses. The general strike planned for May 31 by Maoist sympathizers was cancelled, when the organizers realized it would be hard on the public to call another strike immediately after the three-day mayhem.

The Communist politicians in the pursuit of their own political agenda seem to completely ignore the damage resulting from their actions. Based on past experience, they should have known that the people they recruit as demonstrators would turn violent. Because the NC government commands a majority in the House. They are aware that any non-confidence motion against the PM would be defeated, thus they try to achieve their objective through unconstitutional means. However, even if the PM should decide to resign, it will not result in any gains for the Communists. The present government would simply be replaced by another NC government with basically the same political agenda. Furthermore, all NC MPs reject the opposition's hint to call mid-term general elections. Although there are some dissident MPs within the NC party, they would never again allow the collapse of the majority government this time as was the case in 1994.

In the evening on June 1, a very tragic incident occurred that may have a profound impact on the already fragile political situation in Nepal. A routine weekly dinner party of the royal clan in the palace turned suddenly into a bloody carnage that left the King, his Queen, two of his children, his brother, three sisters, a brother-in-law and a son-in-law dead or dying. Although there were many versions of the shooting circulating in Kathmandu by informants who requested to remain anonymous, hardly any presented the true facts. It has also not been confirmed just how many people attended the dinner party, only that fourteen people were either killed or seriously injured in the shooting including Prince Dipendra, who allegedly committed suicide. The first person who publicly stated in an interview to a weekly newspaper on June 6 that Crown Prince Dipendra was indeed the gunman was the Prince's maternal uncle Suraj SJB Rana. On June 7, the media was called to a press conference at the military hospital to hear an eyewitness' account of the shooting. The account was presented by Dr. Capt. Rajiv Shahi, the son-in-law of Dhirendra, the youngest brother of the late King Birendra. Dr. Shahi, who also attended the dinner party, gave a detailed description of what he had witnessed before fleeing through the window to call for help. According to Dr. Shahi, Prince Dipendra became intoxicated at the party and was escorted to his own residence, only to return later on to commit the shooting.

What might have prompted the Crown Prince to commit such a violent act? The most frequently quoted reason was his parents' refusal to allow him to marry a wife of his own choice, the very attractive daughter of Pashupati SJB. Rana, a former Minister and currently NDP/(RPP) MP. During the past two centuries, since the rise to political power of the Rana clan, members of Nepal's Shah royal family always married a member of the Rana clan. The late King Birendra and his two brothers followed the practice. Thus it seemed almost pre-ordained when the Crown Prince Dipendra Shah fell in love with Devyani Rana and expressed his desire to marry her. But instead of welcoming Dipendra's wish, his parents were adamant that he would not marry Devyani. Apparently Devyani's Indian connection on her mother's side went against her. Probably due to occasional outbursts of anti-India sentiments in Nepal, the last thing the royal family wanted was a future Queen with Indian blood in her veins. But the Prince refused to consider any alternatives proposed by his obstinate mother. Three agonizing years went by, but neither the pleadings of his parents, nor their threats of disinheritance moved the Prince. Friday's family banquet at the palace was a weekly affair during which the Prince again expressed his wish to marry Devyani, and once again, he was turned down by his parents. What happened next is history now.

It took nineteen hours after the incident before the public at large was made aware that the royal family died but no details how were given. Then the Privy Council announced that in accordance with the constitution and local customs, Prince Dipendra was declared King to succeed his father. Since he was physically unable to conduct the affairs of state, the Privy Council appointed King Birendra's middle brother Prince Gyanendra to act as Regent. In his statement, Prince Gyanendra said that the royal family died as result of an accidental discharge of an automatic weapon. As was to be expected, with the funeral rituals for King Birendra over, early in the morning on Monday June 4, the uncrowned King Dipendra was finally pronounced dead. Although declared brain-dead by the medical team when he was brought into the hospital, Dipendra was kept artificially alive, so that his body would not be included in funeral rites for his parents. On the same day, Prince Gyanendra was proclaimed the new King of Nepal and crowned the same morning.

As soon as the passing of King Dipendra and his funeral arrangements were announced, massive demonstrations erupted throughout Kathmandu and Patan and the government had to declare curfew in both townships three days in a row. At least six people died as the mob battled with police and dozens were injured. Many demonstrators were accusing the new King of conspiracy. It is unfortunate that neither the government or the new King had the wisdom to tell the people exactly what happened in the palace the preceding Friday, especially since the country's leadership must have been aware of the details of the shooting from survivors and those who attended the dinner party and escaped unharmed. The media not controlled by the government apparently published some details of the assassinations, thus at least the city's literate population became aware of how the royal family died.

On June 4, the new King formed a three-member probe panel that included the leader of the main opposition in parliament to investigate the palace shooting and present its full report within three days. One of the appointees, the CPN/UML leader M.K. Nepal declined to take part because in his or his party's view the commission was not formed in accordance with the constitution. The two remaining members started the probe of the incident on Friday June 8, but doubts have already been expressed whether it would able to present its report as early Sunday. The new King's own version of the incident  that the deaths were caused by an "accidental discharge of an automatic weapon" was disproved by information provided by survivors of the shooting and others who attended the palace gathering, as well as by Dr. Shahi, who gave an eyewitness' account of the incident at an informal press conference held under tight security in the military hospital on June 7. It was generally believed that Dr. Shahi's presentation on the palace massacre must have been authorized by the military establishment.

However, on Friday June 8, Nepal's monarchy disavowed the account of the royal witness to the murder of Nepal's King on June 1, and said it was launching an investigation into the matter. Angry palace officials said they had not known about or approved Dr. Shahi's statement, and there were unconfirmed reports that he has been detained and may face a court-martial. Although Dr. Shahi's public presentation was reported in independent Nepali media and by foreign news agencies, the government ordered the state-run TV, radio and newspapers not to report it and they obeyed. The palace murders must have deeply embarrassed Nepal's monarchy, and also because palace officials earlier said they were accidental. All this also shows that the authorities are confused and don't know how to present the situation to the public. The palace's abrupt disavowal of Dr. Shahi's statements and the possibility that he may even be punished for what he said have raised concern that the new monarch, King Gyanendra, is trying to quash dissent and assert power over Nepal's elected government. The army also published full-page ads in all major newspapers congratulating King Gyanendra and pledging to serve him loyally. The ads also warned that "misleading" information about the murders had come out, and the army remains "alert and disciplined" in the face of any threats to national security.

There is no question that the unexpected demise of King Birendra is going to reverberate in the country for some time to come. It is also too early to predict what the consequences will be in the context of the current fragile internal political situation in the country and on the future existence of the monarchy itself. In another development on June 7, the editor, director and managing director of Nepal's largest selling newspaper were arrested for publishing an opinion article by the Maoist leader Baburam Bhattarai related to the royal assassinations. Although Bhattarai's views and conclusions were not based on known facts and could be interpreted only as Maoist propaganda, the arrests and the associated charge of treason are a major blow to the freedom of expression in Nepal. The editor and publishers have since been released on bail, but legal proceedings against them are pending.

The panel probing the royal palace murders presented its 200-page report to the King on June 14, who in turn asked the government to make it public as soon as possible. In general the report does not reveal anything that has not already been revealed eyewitnesses as mentioned above. At the press conference, the two-member panel also stated that the findings are not their judgment nor their conclusions. When asked what might have been the possible motive behind the massacre, one of the panel members said "I don't know", though he clearly said that the panel "put together the facts what it has found in accordance with the terms of reference" established by King Gyanendra. However, according to the report Devyani Rana, presumed to be one of the key persons behind the entire episode, declined to reveal details of the telephone conversations she had with Crown Prince Dipendra just prior to the incident.

The report also seems to have generated some doubts about the validity of the findings. One wonders if it were indeed the Crown Prince Dipendra who shot himself. "The shot was from the left side", said speaker Ranabhat, who could not explain why the right-handed Prince would use his left hand to pull the trigger on himself. Although both Dr. Shahi and Prince Paras stated that the Prince got drunk that evening, the medical records confirmed that there were no traces of alcohol in Dipendra's body. Also, there was no reason for the Prince to become irritated by his parents' objections to his wish to marry Devyani, since according to Dr. Shahi the subject of Prince Dipendra's marriage never came up during the evening.   One also wonders how the Prince could handle three weapons, while being in a highly intoxicated state and only a short time earlier had to be escorted by three people into his living quarters. It was also said that Prince Paras begged Dipendra to save his and his sisters lives during the carnage. Does it make sense that a drunken person would brutally kill all members of his own family, but save the lives of others? It all adds to the confusion and suspicion of the already confused population There are also doubts that any post-mortem examinations of the dead bodies of the Royal Family ever took place.

There has been a somewhat negative reaction to the report by constitutional lawyers and experts in criminal investigations, who said that the report presented by the probe committee is incomplete and lacks professionalism. They said the report fails to corroborate eyewitnesses’ account with facts and also fails to reach any conclusion about the massacre. " It is not the conclusion but confusion that the report offers." The report tries to answer the question "Who?" by drawing inference, based on eyewitnesses' accounts, that the then Crown Prince Dipendra shot dead the King and other members of the royal family and relatives. But it fails to answer the question "Why".

The leaders of two other major parties urged the people not to question the impartiality of the probe panel. What has created doubts about the massacre in many people's minds and especially among the political extreme left was the statement by the royal palace that the "death were due to an accidental discharge of an automatic weapon". The immediate reaction to the statement by the extreme political left and especially by the Maoists was a theory of conspiracy. It will be interesting to see what the reaction will be to the report among the Nepalese people. The new King may have a difficult time to make himself acceptable to all political forces in the country. Two days after the report on the palace massacre was made public, the main opposition party CPN/UML in a press release stated that "it views the report in a positive manner". The UML is the only communist party that has accepted the probe panel's findings. The Maoists and other extreme left wing parties continue to support their conspiracy theory. The government enacted Public Security Regulations intended on curbing general strikes and other protest demonstration that usually result in vandalism. The PCR was welcomed by the business community, but deplored by the opposition parties.

The new session of parliament opened on June 25 and the government presented it's 14-point program. There has been no disruption of the proceedings by the opposition, however, the UML leader continues to demand PM's resignation. There has been some indication that there has been some privately concluded agreement between the PM and the leaders of the opposition parties, according to which the pledged to resign at the conclusion of the debate on the government's 14-point program. The PM himself must have realized that it would be in the country's best interest if he steps down, yet he does not want it to appear as if he were forced to do so due pressure by the political opposition. However, the main opposition party is putting a pressure on the PM to vacate his post as soon as possible. It would also be naive to expect that the PM's resignation would bring about any change in government policies. The NC holds a comfortable majority in the House and any future PM would simply follow in Mr. Koirala's footsteps. During the parliamentary debate, the government stressed the need for a dialogue with Maoists to end the insurrection. The NC General Secretary put before the House the question "With whom should we talk?, although the government took several initiatives to create an appropriate environment for a dialogue with the insurgents, they never seriously responded to the government's call for the resolution of the problem."

It is also no secret that the extreme political left dislikes the new King. He is probably the wealthiest person in Nepal, with financial interests in hotels, casinos and a tobacco factory. The status of being a wealthy tycoon and also a King of one of the world's poorest countries is not viewed favorably by the more radical leftist political parties. The CPN/ML has even gone as far as asking that King Gyanendra makes all his assets public and that any of his excess property be nationalized. They are also asking that assets of the assassinated members of the royal family be nationalized and the funds thus realized directed toward social works. During the first two weeks of July, the Maoists have escalated their terrorist activities in many parts of the country, which has somehow caught the security forces unprepared for such  wide range attacks on residences of political personalities, including that of the PM and his daughter, on the destruction of communication infrastructures and police posts. The attacks on police posts resulted in the death of 43 policemen with many more injured and the abduction of almost 100 police personnel. The recent Maoist terrorist activities have reached crisis proportion. Although the parliament is currently in session, there has been no indication whether the government has any immediate plans to restore law and order. One can blame the government's inaction for the daring escalation of terrorist activities by the insurgents.

In a startling new development on the political scene, during the session of the House on July 13, the Deputy Prime Minister and Home Minister Ram Chandra Paudel announced that he handed his resignation to the PM. In his announcement to the House of Representatives, the DPM said that democracy in Nepal is in crisis because democratic forces are divided and added that if democratic forces that fought together for the restoration of democracy in 1990 remain united, democracy could be saved. He also sharply criticized Prime Minister Koirala for failing to take initiatives and leadership for the resolution of national problems and accused the PM of breaching the confidence with opposition parties because of his greed for power. The DPM also expressed concern over the growing factionalism within his own Nepali Congress party. He also vehemently condemned the Maoist insurgents.

As for the PM, he said that he regretted DPM's decision to resign but at the same time reiterated that he himself is not going to resign, but at the same time has been in consultation with the key people within his own party to seek a solution to the current crisis within the NC party. In spite of any informal agreement that may have been reached between the PM and the opposition parties seems to have been ignored, since they again started to boycott the parliamentary proceedings. In view of the renewed political stalemate, the PM finally decided to resign from his post on July 19. The NC party leadership is now selecting candidates for the PM's post from among the younger generation of party leaders. Although the opposition welcomed Mr. Koirala's decision to step down, the more radial Communist leader P.K. Oli already suggested that his party would not support any new PM, who would represent Mr. Koirala's personal choice as a successor.

On Sunday, July 22,  NC party MPs elected Sher Bahadur Deuba as the new Prime Minister. There were only candidates for the post, the second was Sushil Koirala, a nephew of the departed PM. However, Deuba received almost twice as many votes. The new PM is now in the process of forming a new government. Although it was generally expected that the opposition parties would welcome the election S.B. Deuba as the new PM, all leftist parties are expressing some apprehension based on S.B. Deuba's past record as a P.M. The new Deuba led government was sworn-in on July 26. In another development, in response to the new PM's appeal to the Maoists, both sides have declared a temporary cease-fire. However, given the rigidity of the demands made by the Maoist leader, it is difficult to speculate whether a mutually acceptable agreement could ever be reached. At least mass attacks on police posts have been suspended for the time being. The PM is also seeking a consensus among all political parties to prepare an agenda for talks. However, unless the Maoists drastically scale down the list of their demands, which also include preparations for the establishment of a republican state, it is doubtful that the government and the insurgents may ever find a common ground for negotiations. It was during S.B. Deuba's previous tenure as a PM when the Maoist insurgency and "people's war" was born.

The party leadership gave the PM full mandate to negotiate with the insurgents. However, there have already been some doubts expressed in political circles whether a mutually acceptable accord could be reached with the insurgents. A lot will depend on the attitude of the opposition toward the Maoists' demands, which in broad terms mean the scrapping of the parliamentary system as it now exists in Nepal. During the first week of August, the PM reached a consensus of all political parties that are part of the mainstream political systems on how to approach the negotiations and both sides have appointed their respective negotiating teams, although it is not known whether the two teams met. The new King Gyanendra in an interview with a prominent media person hinted that he wishes that his role within the framework of the existing constitution be properly defined. The King also said that he will not remain as a mere onlooker to the events in Nepal like his brother which means that he wishes to play an active role in nation's politics and made it clear that the constitution of the day must be respected and duly honored by everyone including the political parties and not only by the common people and the monarch. This also means that the King is aware of the fact that Nepal's political leaders have at different times during the 12 years of parliamentary democracy exceeded their role by ignoring the spirit of the constitution. It seems that the King henceforth may not be prepared to tolerate the excesses in the actions of Nepalese political leaders. The King also hinted that the establishment of a republican state in Nepal would have to be decided by the Nepalese people and not by one political faction.

The first meeting between the government's and Maoist's negotiation teams took place during the last week of August. Nothing was negotiated during that meeting, it was only an exchange of views and both teams agreed to meet again in the near future. Based on the public statements made by two Maoist negotiators following the meeting, one cannot be very hopeful that the insurrection can be resolved unless each side makes substantial concessions in their differing political agendas. Both Maoist negotiators publicly stated that their party is not going to settle for anything less than a republican state, interim government and a new constitution. The truce is also a shaky one, because sporadic incidents of violence continue, as well as collection of donations, extortion of money and forced closure of private schools.

The government also presented a land reform bill that shall limit the size of landholdings, and that any surplus land would be distributed among the landless against government compensation. This has brought a wrath of opposition from the two rightwing parties, the NSP and NDP, both being supported by the wealthy landholders but the government passed the bill in spite of protests from right wing MPs. The main opposition party CPN/UML managed to form a coalition of ten communist and leftwing political parties. This was obviously motivated by the sharp criticism of the Maoist leadership of UML for following a middle of the road policy. On September 3, K.P. Oli, one of UML's key leaders publicly advocated amendments to the present constitution and the formation of a "united government", which would be similar to interim government as demanded by the Maoists. According to Oli, such a united government, which would include the Maoists, would be responsible for holding general elections, which would elect a new government. This concept is certainly not on PM Deuba's agenda and can be interpreted as a communist ploy to seize power. After all, the NC party received an overwhelming majority in the elections, and it is doubtful that it would bow to the Maoist demands, who gained their present position through armed terror and intimidation. Legally, new general elections are not due till 2004 and it is doubtful that the government would agree to meet such Maoist demand.

The second meeting between the government and the Maoists took place on September 14 and 15, but ended in a deadlock. The Maoist negotiators have thus far shown an uncompromising attitude thus far in the negotiations. People are already expressing a view that an agreement cannot be reached. The acceptance of their key demands would represent a total capitulation of the government side. They want to transform Nepal into a Maoist People's Republic and they want it now. They must also be well aware that in case they do join the mainstream political system, they will have to put their political concept to a test by contesting the next general elections. If they do, they could never gain any significant nationwide public support in view of their past terrorist background. The Maoist politburo has been meeting in northern India during the first week of October in preparation for the third and possibly the last meeting with government. Although no date or venue has been confirmed, the Maoist negotiating team came to Kathmandu in mid October. They held a press conference at which they announced their new conditions for the third and possibly the last meeting with government negotiators. The government made no official response other than that the third meeting would be held after the current holiday season, which could mean no sooner than during the second half of November. During the Dasain holidays, the King proclaimed his only son Paras the Crown Prince. Although the King's action was legally correct, Paras is the most disliked among all members of the royal family due to his past behavior.

During the latter part of October there has been upsurge in sporadic Maoist violence. Recently, the rebels have been targeting activists belonging not only to the NC party, but also of the UML communist party. This has provoked sharp criticism of the Maoists by the UML leadership. The third round of talks with the Maoist insurgents finally took place on November 13, but ended in a deadlock. Although the Maoists have given up a demand for the formation of a republican state, they are now insisting on the abrogation of the present constitution and the election of a constituent assembly. However, in a new turn of the events, Prachanda, the Chairman of the underground Communist Party of Nepal (Maoist) has put off the 4th round of peace talks with the government for now. In the statement issued on November 21, Prachanda said that "the desire and efforts of the people and Maoist party to seek positive political outlet through peace talks have been made unsuccessful by imperialist and reactionary conspiracies". However, he added that his party would not completely close the doors for peace talks in the future. Just two days later, the Maoists declared a parallel "People's Revolutionary Government" and resumed terrorist attacks in many parts of the country. Any analysis of the public comments made by the Maoist negotiating team made it clear that they were not interested in joining the mainstream political system. Their only objective is to grab power without putting their popularity to test in general elections, something the present government seemed prepared to do.

On November 25, the Maoists unleashed well coordinated mayhem in more than twenty districts that has claimed hundreds of lives. Consequently, the government declared a state of emergency on November 26. The King also approved mobilization of the army and promulgated an ordinance declaring the cadres of CPN(Maoist) as terrorists. As was to be expected, there was no immediate spontaneous word of approval from the communist-leftist opposition. However, after holding two central committee meetings, the main opposition party CPN-UML expressed only a conditional approval of the emergency measures on November 29, but at the same time expressed its commitment to multi-party democracy. The only political party that fully supports the emergency measures is the right wing NDP party led by politicians from the Panchayat era. The Chinese government and the Chinese Communist Party also expressed their support for the measures taken by the Nepalese government to restore peace and political stability in the country.

Barely one month after the declaration of the state of emergency, some leftist politicians have already been putting pressure on the government to end it soon. This is particularly true of the CPN/ML that has in the past openly supported the political objectives of the Maoists, although not their violent activities. However, the PM announced that the emergency measures are going to remain in effect till the Maoists have been fully disarmed. The CPN-ML party leadership has also been complaining that some of their "cadres" have been detained on suspicion of being engaged in Maoist activities. In spite the objections by the leftist politicians to the emergency measures, there is no doubt that the majority of the population supports them. The temporary restrictions imposed on personal freedom are a very small penalty to pay if the people indeed desire the restoration of tranquility in their country. The prolonged insurgency has had a profound impact on the country's economy and it is very surprising that none of the leftist parties acknowledged this nor has shown full support of the measures aimed at restoring peace in the country.

The new session of parliament started on February 10 and the government is seeking the extension of the emergency measures by three more months. After debating the issue for several days, the emergency measures were extended for three more months by a more than the required two-thirds majority. The massive Maoist attack on government forces in Achham district a few days earlier must have convinced the opposition politicians of the need to continue the emergency measures. Another new development that took place in mid February was the reunification of the dissident faction of the CPN/UML with the parent party. However, all forty dissident MPs lost their seats in the general elections, thus a reunification will not result in any gain for the main opposition party till the next general elections are held two years from now. The main opposition party CPN/UML is seeking the formation of a national government with participation of all political parties to oversee the next general elections. Since the Nepali Congress party holds a comfortable majority in the House, it will be up to its leadership to determine the issue. There is no unanimity of opinion within the ruling party how to deal with the current internal political crisis in the country.

Since the start of the second phase of the emergency, the lack of unity within the ruling party has surfaced. The PM's main adversary in the present state of affairs is the former PM G.P. Koirala, who is also the President of the party. There is a division of opinion as to right course to deal with the present situation in the country. Although the main opposition party CPN/UML supported the vote to extend the state of emergency, it tries to derive political mileage out of that concession. The opposition party is also pushing for an amendment to the present constitution and it has even found some politicians within the ruling party who support the notion. However, the judiciary is opposed to any tinkering with the constitution. A senior justice of the Supreme Court, who was member of the drafting committee of the present constitution called on those wanting to tinker with the constitution to first clearly identify its faults before going ahead with constitutional amendments: "Political parties should not raise the issue of constitutional amendments with a motive to gain power". The justice's remarks have drawn severe criticism from politicians of the main opposition party. Some political quarters have also suggested that the King should play an active role in efforts to find solutions to the country's major problems.

During the last week of March, the Chief of Army Staff made some critical remarks directed at politicians, who governed the country during the past twelve years since the restoration of multi-party democracy in Nepal. While addressing officers at a graduation ceremony, Gen. Rana asked a lot of tough questions: "The deteriorating situation of the country over the last few years has now reached a critical point…It is imperative to ask who led the country to this sorry situation?" Although the local politicians must take the blame for the birth of the Maoist problem, they immediately became critical of General Rana's remarks and boycotted three sessions of parliament demanding explanation from the PM who also holds the Defense portfolio. While the local politicians continue to squabble over petty issues, the Maoist terrorist activities continue unabated. During the first week of April, the government passed an Anti-terrorism Bill against the opposition of all leftist parties and RPP, the party of former Panchas. The local politics are politics of hypocrisy. Although the main opposition party CPN/UML endorsed the extension of the emergency measures, they walked out of the House when the voting on the Anti-terrorism Bill started. They also admitted that their support of the extension of the emergency measures was made only under the condition that the government would proceed with constitutional amendments during the current session of parliament.

In the middle of May, the PM traveled to USA to meet President George Bush and to Britain to meet British PM Tony Blair. The discussions in both countries focused on Nepal's war against domestic terrorism. Both countries pledged to support Nepal in its efforts to restore political stability in the country. When PM Deuba returned home, he called a meeting of all political parties to seek a six-month extension of the emergency measures. Already while he was abroad, the sentiments within his own party seemed to turn against the extension. He called a special session of parliament to seek approval of the extension of the emergency that was due to expire on May 25, however, from comments made by key political leaders both from his own party and the opposition, it became clear that the motion to extend the emergency would be defeated. PM Deuba then asked the King to dissolve the parliament and announced to call snap general elections on November 13. Since his own party holds a majority in the House and general elections were not due for two more years, the PM's decision was sharply criticized by his adversaries in his own party and led to his expulsion from the party for three years. The former PM G.P. Koirala even registered a writ petition with the Supreme Court seeking to void the dissolution of the House and the call for snap elections.

The recent events also make it clear that the two factions within the Nepali Congress cannot unite for the good of the party and the nation. Thus in addition to the Maoist problem, the country plunged into a deep internal political crisis. By contrast, the communist opposition welcomed the call for new general elections, because they expect to gain from NC's internal squabbles. Even if the NC wins the next vote, it is doubtful that they would again be able to form a majority government. On Monday May 27, the PM requested the King to extend the emergency by three months. Thus the emergency remains in effect till August 25. Since the dissolution of parliament and the re-imposition of the emergency measure took place in consultation with the King, PM's rival, former PM G.P. Koirala without naming the King viewed the events as a "grand design" and a possible prelude to end the present parliamentary system. His remarks were also immediately noticed and commented on by the main opposition communist party. During the first week of June, the central leadership of NC party also filed a writ petition seeking the reinstatement of parliament. Thus the NC party stands divided between two factions - one loyal to G.P. Koirala and the other to PM S.B. Deuba. The PM continues to stress his loyalty to the NC party, although he also made it clear that he cannot contest the election without belonging to a political party.

Although numerous NC leaders tried during the first two weeks of June to reconcile the differences between the Koirala and Deuba factions, all these efforts failed. Party president Koirala showed no willingness to soften his stance toward his rival. The PM called a general convention of the party for the week of June 16 to wrest the leadership of the party. One week prior to the convention, Koirala asked the PM to re-instate the parliament and call off the elections as a condition toward reconciliation, but the PM did not respond. On Tuesday June 18, the party formally split with the expulsion of the president Girija Prasad Koirala by an unanimous decision of the hastily convened general convention, party sources said. The convention also reinstated the party membership of the PM and elected him as the new party president. The next day, the new rebel leadership of the party visited the National Election Commission to register the name of PM Deuba as the new party president. While addressing the Midwestern Branch of the Press Union on July 2, G.P. Koirala stated that his faction has not yet decided whether it would contest the elections. The Election Commission is also still deliberating, which of the two factions should be recognized as the official Nepali Congress Party in the forthcoming elections. As previously announced, on August 6 the Supreme Court announced its verdict related to petitions for the re-instatement of parliament made by PM's political opponents. The SC unanimously dismissed all four writ petitions challenging the PM's legality to dissolve parliament. Thus the court's decision paves the way for the November 13 vote. The verdict also represents a blow for the NC faction led by former PM G. P. Koirala. The government also dissolved all local bodies, the municipal, district and village development committees when their mandate expired on July 16. Although the main opposition party has sought a one-year extension of their mandate, it was rejected by the government alleging that the previous local elections were rigged. The local elections were held during the tenure of CPN/UML government and two thirds of the elected representatives belonged to CPN/UML. The government has now applied to the Election Commission that the local elections be held during the current fiscal year.

It is quite obvious that the communists expect to gain from the split of the ruling party and see the elections as a strong opportunity of forming the next government. If the NC contests the elections as two different parties, it is doubtful that either faction would win a majority. Yet even if the communists should win the elections, it is also doubtful that they too would win enough seats to form a majority government. Thus if no party wins enough seats to form a majority government, there may be a repeat of the unstable political situation that followed the 1994 general elections. There no question that Nepal is currently passing through a most serious internal political crisis since the restoration of the multi-party political system in 1990. In their constant quest for power, the politicians failed focus their attention on the pressing needs of the nation. This quest for power has also been demonstrated by the fact that 102 political parties have registered with the National Election Commission to contest the November elections. This is more than double the number that contested the previous elections. A political party must win at least four percent of the popular vote to be officially recognized as a party.

The war of words between the two factions of the Nepali Congress party continues and both factions are claiming their right to the party flag and election symbol. Any efforts at reconciliation of the two factions failed. G.P. Koirala has been demanding the resignation of the PM as a precondition to possible reconciliation. On July 19, the Maoist leadership made a new offer for the resumption of the peace talks. This time, they have abandoned some of their key demand for a republican state made during the failed negotiations, and there is even an indication that they are now ready to join the mainstream political system and contest the November elections. The initial response among all major political parties to the latest Maoist initiative has been positive but rather muted. However, comments made by both the PM and the Home Minister that the Maoists must first disarm before the government agrees to the resumption of peace talks already cast some doubts on the possibility of a new dialogue. However, by the end of August, the opposition political parties and human rights activists have been putting pressure on the government to resume the peace talks. A general consensus is that only a negotiated settlement can restore peace in the country.

Since the emergency measures were lifted during the last week of August, the Maoists have been very active staging two major new attacks on government forces. This has even raised the question whether the elections can be held in the present political climate. There is also a strong consensus among all opposition parties and the Koirala faction of NC that the insurgency cannot be resolved militarily. On September 12, P.K. Dahal, the leader of the Maoist insurrection made another public statement declaring their willingness to call a cease-fire and resume the peace process. It is really surprising that the Deuba government is not able to come to grips with realities and to acknowledge that the only way to end the insurrection is through negotiations. On September 17 the PM suffered another setback when the Election Commission announced that it recognizes Nepali Congress as the party headed by former PM G.P. Koirala. The EC also stated that its decision is only "interim" and would be made final at a later date. At issue is the validity of the General Convention summoned by the PM that elected him party president to replace G.P. Koirala. The Koirala faction claims that 129 names among the 770 attending convention members were a fake. However, the EC has also granted PM Deuba seven days to register a new party and election symbol acceptable to the Commission. EC also allowed the Deuba faction to be recognized as different faction of the Nepali Congress. Judging by the utterances of the leaders of the two NC factions, there is no indication that the EC ruling would lead to possible reunification. The PM is even having a difficulty in reaching a consensus among his faction's central committee on the party's name, flag and election symbol that he has to present to the EC by September 23rd.

On September 22, the Maoist leadership made another appeal to the government to resume the peace process, their eighth in two months. They all seemed to have fallen on deaf ears, although all opposition parties as well as the mainstream NC party are in favor of the talks. The Maoists also called a general strike on November 13, the election day. The majority of leading politicians feel that it will be virtually impossible to hold the elections as planned unless both warring sides declare a cease-fire and resume the peace process. After all-party meetings that reviewed the worsening current political situation, all opposition parties concluded that the elections could not be held on the scheduled day. In a meeting with the PM, he also agreed and a six-months postponement would be announced before the end of the first week of October. All opposition parties also put pressure on the PM to renew the peace negotiations to resolve the insurgency.

The internal political crisis culminated during the first week of October. During the last week of September, the PM held consultations with leaders of the key political parties. There was a consensus that in view of the deteriorating law and order situation, it would not be possible to hold the elections as scheduled. The opposition parties suggested that the elections be postponed by six months. The PM agreed with that view and suggested that after consultation with his cabinet he would ask the King to postpone the elections. Although it seemed that not all cabinet members agreed with the delay of the elections, the PM had an audience with the King and proposed that the elections be postponed by fourteen months. Subsequently, for two days the King held meetings with leaders of political parties and other prominent people to deliberate his final decision in the matter, since according the Election Commissioners, the decision had to be made by Friday, October 4. At 10.45 PM on October, the King addressed the nation on Nepal TV to announce that he is assumed executive powers after dismissing PM Deuba for being "incompetent" and failing to hold elections as scheduled. The King also postponed the elections. The King will form a new government within five days by appointing people with a clean image including some not affiliated with political parties.

There has been a mixed reaction to the King's assumption of executive powers. Some welcomed the move and others did not. The most vocal reaction has been from the two factions of Nepali Congress with Deuba going as far as stating that the King's action was unconstitutional. The main opposition party CPN/UML is still analyzing the current situation. The former PM can only blame himself for the latest developments. He reached an agreement with the opposition to delay the elections by six months as requested by them. The agreement reached with the opposition was then discussed with his cabinet before presenting it formally to the King. Following that cabinet meeting was a sudden turnaround when the then Home Minister K.B. Khadka announced that the elections would be held on November 13. Then most probably out of his own impulse, the PM went to see the King to request postponement of the elections by 14 months. When this was made public, the opposition disagreed with such a long deferment. Subsequently, for two days the King discussed the current crisis with key political leaders and the judiciary.

There is no doubt that the King must have come to the conclusion that the Deuba government would not be able to resolve the current crisis and decided to give the country's political system a fresh start. However, the majority of political parties disagreed with King's action. Some legal experts also felt that the King's action was unconstitutional. Although the King asked the leaders of all political parties to provide names of their nominees with a clean record and who would not contest the elections to the new Council of Ministers. Instead, the six main leaders sought a meeting with the King as a group to discuss the formation of the new government, but there was no response from the King prior to his deadline for nominations. It came as a shock and a surprise when the King appointed as the PM Lokendra Bahadur Chand, who was the last PM of the Panchayat era at the time of the 1990 People's Movement and currently one of the principals in the NDP party of former Panchayati to head the new 9-member caretaker government. Following his appointment the new PM told the media that the intends to seek mediation with the Maoists to bring them into the political mainstream as one of his key objectives. The PM also stated that he would like to include people from other political parties in the new government after the current holiday season ends. However, they all declined their participation under his leadership. The six major parties in the dissolved parliament are demanding the dissolution of the present government and a formation of a new all-party government under article 128 of the constitution, but there has been no response from the King to their pleas. During the third week of November, the King expanded the government by adding eight new ministers and five assistant ministers. The expansion of the Council of Ministers has immediately widened the rift between the King and the political parties if the initial reaction of major political parties is any indication. Since the formation of the Chand government, there has been a constant pressure from all quarters to engage in a dialogue to resolve the Maoist insurgency. Even the government admits that the elections cannot be held unless peace and law and order has been restored.

Although the Chand government has been in office for two months now, it has not managed to establish a link of communication with the Maoist rebels. Any talk of the resumption of peace talks is just that. The Home Minister also stated that the government has not received any direct official peace offer from the rebels. The peace offer the Maoists made in the form of a press statement is not being considered as a genuine peace offer by the government. The mainstream political parties also continue to express their opposition to the royal power takeover, yet they cannot agree on a uniform approach that would resolve the current internal political crisis. Koirala continues to insist on the recall of parliament, his party has a majority in the House prior to its dissolution, and due to vertical split in the party, he is well aware that his party can no longer win a majority in the next elections. However, the younger generation NC leaders support an approach similar to that of the main opposition party. The main opposition party - CPN/UML - is opposed to the recall of parliament being well aware that NC being split into two parties, they stand a good chance to form the next government. Of course, everybody acknowledges that the elections cannot be held unless a peace is restored in the country.

The King appointed government has been in office for two months, but except for making speeches has accomplished very little. Efforts to resume talks with the Maoists are also progressing at a snail's pace. While the key political parties continue to oppose King's assumption of all executive powers, they are don't seem able to reach a uniform consensus how to best counter the King's move. During a recent public demonstration UML leader M.K. Nepal stated that the King cannot play a dual role of a politician and constitutional monarch at the same time, he has to chose one or the other. However, there has been no response from the king. The deposed PM Deuba has been rather low key, in one of his latest public statements he advocated the resumption of peace talks with the insurgents, something he has vehemently opposed while in office throughout the past year. He engaged the army to resolve the insurgency and although the army killed several thousand insurgents, the Maoists still rule in the countryside. He has also contracted to purchase 5,500 mini machine guns for the army from Belgium at a cost of Euro 25 million. The king appointed government, even after three months in office, has not yet established any contact with the Maoists in spite of their repeated offers for dialogue. The government's response to the latest Maoist peace initiative is its refusal to accept a peace offer sent to the media as a legitimate offer to the government. The government wants the Maoists to send an official peace offer directly to them. Thus the population has little to cheer about as it enters into the new year.

The Chand government has completed its first one hundred days in office, but there is a general consensus that its performance has been disappointing. The king dismissed the previous PM Deuba on the basis of incompetence, but the new PM Chand, the king's appointee after more than three months in office has not demonstrated higher level of competence than his predecessor. The main king's directives to the new government was to hold parliamentary elections as soon as possible and to restore law and order in the country. Neither of the two directives has been achieved. The government has not been able to set an election date, nor established a meaningful contact with the Maoists to get the peace negotiations started. The main political parties, with the exception of the NDP and NSP, the only two political parties participating in the king appointed government, refuse to recognize the legitimacy of the new government and also refuse to cooperate with it. They are now planning to launch a protest movement that may lead to confrontation with the King. Thus the internal political crisis created since the king assumed all executive powers continues unabated. Unexpectedly, there is even an disillusionment with the king appointed PM within his own party. On January 21, the NDP Central Working Committee gave the PM fifteen-day ultimatum to resign as a PM or leave the party.

However, there has been a dramatic turn of events during the last week of January. On January 27, the Norwegian envoy announced at a press conference that her country was considering withdrawal of development assistance to Nepal if the government does not resolve the internal political crisis soon. This might have been a signal to lackluster Chand government to finally take a positive step toward the resolution of the Maoist problem. Late in the evening on January 29, both the government and the Maoists have announced a cease-fire, when the government finally agreed to their pre-conditions for peace negotiations, which also include the formation of an interim government. Since the Maoist leadership earlier announced that they are prepared to join the political mainstream, they may put their political clout to test by contesting the general elections to be held this year. The cease-fire was welcomed by the business community tourist entrepreneurs, who suffered great losses due to the frequent general strikes, as well as the majority of political parties with the exception of the leaders of the two factions of Nepali Congress - Deuba and Koirala. At a public meeting, Koirala stated that the announcement of the cease-fire could be interpreted as a serious conspiracy against the political parties and speculated whether the government and the Maoists were coming closer to begin a campaign against political parties. Deuba on the other hand speculated that the cease-fire could be a ploy of the Maoists to consolidate their position and that the Maoists may have opted for peace talks after seeing that the government was consolidating its position through the import of modern weapons from
Belgium and America.

According to the Minister for Physical Planning and Work Col. Pun, who negotiated the cease-fire, the peace talks could start as early as during the first week of February. The CPN/Maoist politburo was also holding a meeting to formulate their modalities for the peace negotiations, which include roundtable meeting of all political stakeholders including the crown; election to a constituent assembly and the formation of an interim all-party government. The government has also sent a formal letter to the Maoists inviting them to start a dialogue, while the mainstream political parties continue to view the cease-fire agreement with suspicion, because they were not consulted by the government. The reason they were not consulted lies in the fact that by their own choice they declined to join the interim government. Any statements made by the Maoist leadership since the declaration of cease-fire give a clear indication that they too would like to see permanent peace in the country restored. The PM called an all-party meeting on February 17 to seek their input while the modalities and preparations for the actual talks are being formulated but all major parties represented in the dissolved House including his own RPP declined to participate. The UML, NC and several other leftist parties continue to question the legitimacy of the king appointed government. Even the media has been critical of the main political parties for putting their selfish partisan interests against the interests of the country by obstructing   the peace initiatives.

There is no unanimity among all political parties as to the key items on the Maoist's agenda - round-table discussion of all political state holders including the king, elections to a constituent assembly and the formation of an all-party government. There is also no question that if the Maoists return to the political mainstream, it will be at the expense of all other political parties, especially the communists. The CPN/UML is well aware that the majority of Maoist cadres are their former followers. Although the interim government lacks the support of the large political parties, it is making a genuine effort to restore peace in the country. This was quite obvious from the number of concessions the government made in order to bring the Maoists to the negotiating table. It is now five months since the King assumed executive powers, yet the political parties have not reconciled themselves with the fact that the monarch is not going to respond to their demands. Prior to his accession to the throne, the King was a successful businessman and there is no doubt that by sidelining the political parties till the elections are held and appointing people with no political ambitions into an interim government was in the best interest in resolving the internal political crisis. Col. Pun, the government's peace talks coordinator announced that preliminary talks with the Maoists would start during the second week of March.

The PM called two meetings of all political parties to obtain their input while the talks modalities are formed, but all four main political parties declined to attend the first meeting and the NC and UML declined to also attend the second. In their view the present caretaker government is lacking the legitimacy to deal with the political crisis. Thus they have chosen to boycott the peace process. At the same time, the leaders of the two main political parties do not share the same views on how to resolve the current political impasse. Koirala is pushing for the restoration of the dissolved parliament, Madhav Nepal wants an all-party government. Both leader feel that they should be negotiating the peace with the Maoists. There can be no doubt that their views are politically motivated and by petty partisan motives, because they both must feel that they can derive some political mileage should they succeed in brokering the peace accord. During the second week of March, the king has been meeting individually with leaders of both large and small political parties, most probably to assess any options that may be in the best interest in resolving the crisis. He formed an interim government with people that have no political ambitions and who would be neutral when negotiating peace with the CPN Maoist. This of course would not be the case should the king hand the negotiation over to the politicians.

History has shown that during the past twelve years since the re-establishment of the multiparty system, the politicians were guided by self-interest and ignored the main issues faced by the population at large. The popularity of the Maoists among the rural population has not been achieved through any coercion, they were simply seen by the poorest segment of population as a better alternative to the corrupt political system in charge of the country's affairs. The past has also shown that there never been any unanimity among the political parties represented in the parliament, nor within the individual parties themselves. The past twelve years have seen splits within the three main political parties, and the internal disagreements are also surfacing since the king assumed all executive powers in October 2002. For instance, there is no unanimity within any of the three main political parties concerning the three Maoist conditions to form the basis for the peace negotiations: round-table conference of all political players including the crown, formations of an all-party government, election of a constituent assembly. Thus what should the king do, let the disagreeing politicians handle the peace process, or let people with no political ambitions to bring the peace to a positive conclusion? To any neutral observer the answer is obvious, but such is not the case with power hungry Nepalese politicians. It is also unfortunate that while the Maoists are anxious to get the peace process started, they are caught in the middle of the current political stalemate. Although the Maoists do not approve of the October 4 royal power takeover, the also do not share the views of political leaders on the future political structure of the country. They want to see sweeping changes to meet the economic needs of the population.

All members of the Maoist negotiating team arrived in Kathmandu and the informal talks followed by formal talks are to start during the first week of April. The political parties continue to express their opposition to the October 4, 2002 royal takeover. During the last ten days of March, the King made a pilgrimage visit to India, his second visit to that country in eight months. There may be more to that visit than what has been officially stated. On arrival there he immediately met with all key political figures, no doubt to get their reaction to the latest developments in Nepal. Early in April there is another civil reception planned for the King this time in western Nepal. Irrespective of whether the initiative was from the local people or the palace, such occasion provides the King with an opportunity to express his personal views on the current political situation in the country.

By mid-April, the government finally formed a peace negotiating team headed by the PM with five other ministers as members. The formal peace talks are expected to start during the third week of April. There has been no change in attitude of the political parties toward the king appointed government. They also continue their boycott of the government's peace initiatives and are planning various programs to show their opposition to the October 4 royal take over. Even G.P. Koirala, always a staunch monarchist in the past, as well as some other key NC leaders have been making public utterances in support of a republican state should the king continue to sideline the political parties. The ten-party leftist alliance joined by the Koirala led NC party plan to stage a mass protest rally against the king's October 4, 2002 assumption of all executive powers.

Although the mainstream political parties have been staging various protest activities during the month of May, the public at large has not shown a spontaneous support for their activities. It seems that people are more interested in seeing the peace process completed and normal conditions restored as quickly as possible. The king, through the media, has also expressed displeasure with the actions of the political parties and finally offered to meet political leaders collectively, something he has declined in the past. It took almost ten days for the politicians to respond. They want to meet the king "collectively with a package" how to resolve the current political crisis. Based on past statements, the package would be to form an all-party government with full executive powers. Although the NDP party, the third largest political party represented in the dissolved parliament, has officially acknowledged the legitimacy of the technocrat government appointed by the king, a considerable dissention seems to have surfaced within the party leadership. During the last week of May, the former party chairman S.B. Thapa publicly supported the stand of the five opposition parties concerning the formation of an all-party government with full executive powers. The CPN/Maoist has been maintaining a neutral position in the current political impasse. At the same time, the political parties intensified their agitation against the king. Since S.B. Thapa's comments came from a key leader of PM's own party, he resigned in order to pave a way toward national reconciliation.

The king accepted PM Chand's resignation and asked the leaders of all political parties to make a unanimous choice of the next PM. The king also met collectively with the leaders of all but one political party to ask each of the leaders to present their nominee for the next PM. It was perhaps somewhat naive of the king to expect them to make a unanimous choice of the nominee. There has never been any unanimity not only among political parties, but even within the parties themselves. Only the four parties currently engaged in agitation against the king suggested UML's M.K. Nepal as their choice. All other parties presented their own leaders as their choice. What the political parties sought and were expecting was the transfer executive powers to an all-party government with full executive powers under article 128 of the 1990 constitution. Whatever the king's motivation was, since the seven parties represented in the dissolved parliament did not present a unanimous choice of a nominee, the king appointed S.B. Thapa as the new PM under article 127 of the constitution with executive powers under article 35. This is of course not what the political parties were seeking, since it allows the king to exercise the ultimate executive power just as was the case before..

Following his appointment, PM Thapa sounded rather optimistic stating that the "king has cleared the issues raised by the political parties" with whom he will seek a dialogue to end the current crisis in the country. He added "the political issues have been cleared, this should be a   basis for the start of national reconciliation. The royal message addressed the issues of government's executive powers and an all-party government. The political parties engaged in the anti-king agitation are going to meet on June 5 to appraise the current situation. However, PM Thapa's optimism might have been rather premature, since some prominent politicians have already expressed the view that the new government will be no different from the Chand government and thus their party will not participate in it. CPN/Maoist's Dr. Bhattarai also issued a warning to the political parties following PM Chand's resignation that whatever the king's action may be, it will not change the current status quo.

Three weeks after PM Thapa's appointment as PM, the five parties agitating against the King declined any participation in his government. Thus the impasse continues. They probably would have participated had the king appointed UML's M.K. Nepal as PM. However, the king's own choice of a politician from the Panchayat era and now a prominent member of the RPP party founded by former Panchas that is supporting active monarchy is not going to break the ongoing political stalemate. The five agitating parties are demanding the reinstatement of the legislature before they would consider joining Thapa's government. Whether Thapa's executive powers allow him to do so is doubtful. The ultimate executive power is still held by the king. Furthermore, the political parties also feel that any laws enacted by the provisional government through ordinance will not remain in effect unless they are approved by the legislature. This also applies to any peace accord the government may reach with the CPN/Maoist. The agitating parties have also been busy with drafting of changes to the present constitution that would curtail the king's powers so that the present situation could not be repeated in the future. They held two mock sessions of their representatives in the dissolved parliament to adopt a new political charter to be ratified in the next session of the House after the elections are held.

Among the highlights are that Nepal will be known as a secular state; the King's Advisory Council will be abrogated; limiting the royal title to king, queen and the crown prince; making public the property owned by the reigning monarch at regular intervals; end to the practice of the constitutional monarch to enact laws as part of the royal discretion. Moreover, they also expect to put the functioning of the Royal Palace under the domain of the Ministry of Royal Palace; equally far-reaching is the suggestion concerning secularization of the army, which so far identifies itself with the crown. The new arrangements, which would be enforced after the proposed amendment of the constitution, the army will be put strictly under the command of the government, and will be accountable to the people and the parliament; the commitment to amend constitution to pave a way for a referendum on issues ranging from constitutional to political and those of national importance, which aim at consolidating the sovereignty and power of the state inherent in the people; a new national anthem, which will reflect pride, national unity and patriotism. Apart from these major political and constitutional issues, the parties have also suggested drastic measures to bring about socio-economic transformation and a demand under which the parliament will be evolved along strong lines with huge powers. Notable in this context is the demand under which the parliament will be automatically revived in case elections cannot be held such as under present circumstances. The parties have also suggested measures to ameliorate the status of women, Dalits, members of the ethni