Referendum should decide Nepal king's fate-experts

KATHMANDU, Aug 25 (Reuters) The draft of Nepal's interim constitution has recommended the fate of monarchy in the restive Himalayan nation should be decided through a referendum.

The draft was prepared by a panel of experts appointed by the Maoist rebels and Nepal's interim government in June. It was given to the two sides today, with this key recommendation.

''Whether to keep the king or not should be decided through a referendum at the time of elections for the constituent assembly,'' it says.

Elections are expected next year to vote for a special assembly which would write a new constitution for Nepal -- rocked by more than a year of turmoil since King Gyanendra sacked the government and assumed absolute power.

The monarch was forced to step back after weeks of often violent street protests in April, led by the political parties and supported by the Maoist rebels, who have fought the monarchy for more than a decade -- a conflict that has killed 13,000 people.

The rebels and the parties heading the new government have had serious differences over the fate of monarchy. The Maoists want the interim constitution to end monarchy but political parties feel this should be decided by the constituent assembly.

''There is no consensus on political issues, including on monarchy, between the parties and Maoists,'' the panel chairman, Laxman Prasad Aryal, told Reuters. ''They should form a consensus on these subjects and include them in the draft.'' A consensus on the interim constitution is key to Maoists joining the government, as desired by the political parties.

REUTERS MS RK2150