Nepal's prime minister, rebel chief begin first talks

KATHMANDU, June 16 (Reuters) Nepal's Maoist rebel chief Prachanda began talks with Prime Minister Girija Prasad Koirala today in a bid to iron out differences before holding landmark elections and drafting a new constitution.

The talks in Kathmandu between Koirala, who heads a multi-party, interim administration, and Prachanda was the first known high-level meeting between the rebels and the government since the revolt began 10 years ago.

''The main agenda for the meeting is to discuss early elections for the constituent assembly and solve the political hurdles for this,'' rebel spokesman Krishna Bahadur Mahara said.

Prachanda, whose assumed name means Awesome, has led a bloody war against the monarchy in the impoverished Himalayan nation in which more than 13,000 people have been killed.

Speaking to Reuters in a rare interview in western Nepal yesterday, he said peace talks with the government which started in May were largely back on track after initial troubles.

But differences remained over a Maoist demand for the dissolution of the reinstated parliament before elections for a special assembly to draft a new constitution that would decide the future of monarchy, he said.

Prachanda flew into Kathmandu today in a private helicopter and drove straight to Koirala's high-security official residence in the heart of the capital.

He was accompanied by his second-in-command, Baburam Bhattarai, and Home Minister Krishna Prasad Sitaula as they arrived at Koirala's house.

Soldiers behind sandbag bunkers kept vigil while dozens of Maoist guerrillas in plainclothes, and apparently unarmed, prevented media cameramen from taking pictures.

The government and the rebels are observing a ceasefire for more than a month after weeks of street protests in April forced King Gyanendra to end his absolute rule and hand power back to political parties.

REUTERS SHR RS1010