Nepalgunj, Aug 18: The government remains optimistic about the chances of ongoing peace talks ending a seven-year communist insurgency in this Himalayan Kingdom, despite the guerrillas' rejection of proposed reforms. "The rebel response has not been too encouraging. But we are still hopeful the talks will have a positive outcome," information minister Kamal Thapa said today. "The rebels should realize this is an opportunity that can't be passed." Thapa and Finance Minister Prakash Chandra Lohani were to fly to a mountain village Hapure to meet Maoist rebel leaders later today.


Heavy rainfall has delayed their departure to the rebel stronghold, about 400 kilometers west of Katmandu.


On the first day of talks yesterday, the guerrillas rejected a government proposal for an interim administration that would include rebel members. It also promised other reforms. Bureau Report