Nepal arms deal with rebels ready-leader

KATHMANDU, Nov 6 (Reuters) The government of Nepal and the country's Maoist rebels are expected to announce a long-awaited weapons agreement tomorrow a senior ruling party leader said today.

The deal covering the supervision of arms held by both the army and the guerrillas had been expected on Monday but other issues relating to the peace process between the two sides delayed the formalisation of the pact.

''The main issue of arms management has been settled but other matters need more time to be resolved, therefore, we have adjourned the meeting today,'' Arjun Narsingh K C, a senior leader of the Nepali Congress party, the biggest party in the seven-member ruling alliance, told reporters.

Narsingh, who attended the six-hour talks, added issues still being discussed revolved around an interim parliament that will include the rebels and elections to a constituent assembly that will decide Nepal's political future, including the role of the king, if any.

The arms issue has dogged talks between the multi-party government and the rebels and raised concerns about the durability of Nepal's trek to peace.] A sticking point has been the rebels' refusal to disarm their fighters before the elections for the constituent assembly in 2007.

The arms agreement had been expected to be signed today between Prime Minister Girija Prasad Koirala and rebel chief Prachanda.

The Maoists and the government, formed soon after King Gyanendra handed power back to political parties in April after mass protests, are observing a ceasefire and began peace talks in May.

ARMS UNDER LOCK AND KEY? Earlier today, Maoist negotiator Krishna Bahadur Mahara said the Maoists were now ready to lock up arms held by the 35,000-strong rebel army in temporary camps, where the fighters will also be stationed, under UN supervision.

''The key will remain with us,'' he said, adding that an equal number of arms held by the Nepali army would also be locked up separately.

''Mechanisms will be installed to send signals to UN monitors if the lock is opened or weapons are removed,'' said Ram Chandra Poudel, a leader of the Nepali Congress party.

Sites for camps for the guerrillas would be identified soon and the UN would prepare a list of rebel arms, Poudel said.

Mahara also said earlier an agreement to keep the monarchy until next year's elections was also close. Rebels had been demanding the monarchy be immediately abolished or suspended, but have agreed it should remain until the assembly meets.

''The first meeting of the constituent assembly will take a decision on the monarchy,'' Mahara said. ''But during the interim period the king will have no power at all.'' The Maoists have been fighting the monarchy since 1996 in a conflict that has wrecked the economy and killed more than 13,000 people.

Reuters AKJ VP0018