Last Updated: Friday, 16 June 2006
Maoists to join Nepal government http://news.bbc.co.uk/2/hi/south_asia/5085760.stm
[It is the first time Prachanda (centre) has met a serving premier]
The Nepalese government is to dissolve parliament and set up an interim government that will include the country's Maoist rebels.
The move was announced in the capital, Kathmandu, after landmark talks between rebel leader Prachanda and Prime Minister Girija Prasad Koirala.
Prachanda said he wants the new government set up within one month.
Friday's talks in Kathmandu were the first such meeting between the government and the rebels.
They are the latest step in moves to end Nepal's decade-long insurgency.
Prachanda also told journalists that he wanted elections to a constituent assembly to be held by May, 2007 at the latest.
He also offered to dissolve Maoist administrations in areas they control once parliament is dissolved.
The Maoists took up arms 10 years ago, but are currently observing a truce.
[It is time the West helps to establish democracy with the king as a figurehead
Sherpa Dinesh Kathmandu, Nepal
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[Prachanda: Reclusive leader]
This is Prachanda's first known visit to Kathmandu in decades and is taking place amid tight security.
He was flown in from central Nepal by helicopter and was driven to the prime minister's residence where the talks took place.
The BBC's Charles Haviland in Kathmandu says the rebel leader has been underground for 25 years and his arrival prompted feverish excitement and a host of rumours.
Progress
Nepal's peace process gathered pace after King Gyanendra agreed in April to abandon direct rule following weeks of street protests and strikes.
[STEPS TO PEACE 6 April: Mass anti-king protests break out 24 April: King reinstates parliament, gives up direct rule 30 April: Parliament votes to hold constituent assembly polls 26 May: Preliminary peace talks begin with Maoists 2 June: First Maoist rally in capital in three years 16 June: Top Maoist leader Prachanda meets prime minister]
Our correspondent says the political landscape has been shaken up since the king restored representative rule.
Opposition parties - who had been speaking to Prachanda while out of power - have since joined the government.
The new government has released rebels from jail, dropped terrorism charges against them and agreed to the ceasefire.
But differences remain between the two sides over the future of the monarchy.
The rebels hope elections will clear way towards abolishing the monarchy, but the prime minister has ruled that out.
Nepal's 10-year Maoist insurgency has left around 13,000 people dead.