Nepal's Maoists must change to lose US terror tag

KATHMANDU, Oct 6 (Reuters) Nepali Maoists must show a fundamental change in their behaviour and end violence and intimidation if they want Washington to take them off its list of terrorist organisations, the United States said today.

The Maoists declared a ceasefire with Nepal's government in April after a decade-long insurgency, and are negotiating to join an interim government with the country's mainstream political parties.

The rebels appealed last week for the United States to remove them from a State Department list of terrorist organisations, where they were placed more than two years ago. But an American official said they needed to do more to change their ways.

''Maoists are on the terrorist list because of their actions,'' said Steven R Mann, the US principal deputy assistant secretary for south and central Asia, calling on the rebels to show a ''fundamental and basic change in behaviour''.

Nepal's Maoist rebels have been fighting for a communist republic since 1996 -- a conflict in which more than 13,000 people have been killed. Their cadres have been accused of extortion, kidnapping and killing opponents.

A peace process took off shortly after King Gyanendra surrendered power to a multi-party government in April following weeks of pro-democracy protests.

The interim government which the Maoists would join is meant to supervise elections to an assembly to draw up a new constitution for the Himalayan kingdom.

But negotiations have stalled, partly over the question of when and how the rebels would surrender their arms, as well as over the future of the monarchy.

Nepal's Prime Minister Girija Prasad Koirala is expected to meet Maoist chief Prachanda on Sunday in a bid to iron out their differences and kickstart the peace process.

Mr Mann said for any peace process to be meaningful, it should have no place for ''Maoist intimidation, coercion, or violence''.

REUTERS SHB PM1713