Maoist rebels in Nepal have formally given up their demand for a republican state and the abolition of the monarchy in the Himalayan kingdom, but have insisted on a new constitution and the creation of an interim government.
After waging an insurgency for the past five years, Maoist leader Prachanda said in a statement on Saturday that the party has decided to drop the demand for a republican state during the forthcoming talks with the government. The government accuses the rebels of continuing to extort money from businesses and schools and abusing those who refuse, despite an agreement at a first round of talks held near Katmandu in August to cease all acts of violence.
A second round of talks was held in a resort at a jungle resort at Bardia, 500 kilometers west of Katmandu. The rebels have fought since 1996 to replace Nepal's constitutional monarchy and democracy with a communist republic. More than 1,800 rebels, security personnel and civilians have died in the fighting. The constitutional monarchy, which makes the king the ceremonial head of the country, was adopted in 1990 after a democratic movement toppled the absolute monarchy.
The rebels say about 300 of their workers are still to be released from the jail but the government had published a list of about 188 Maoists who were in jail.
The government said Friday that it would release 68 Maoist rebels from jails around the country and drop the charges against them before the third round of peace talks, which is expected to be held before the Hindu festival of Diwali November 16. The government also agreed to scrap the recently formulated public security regulations which provides local authorities and the police with extensive powers to take action against any individual whom they consider to be a security threat.

"By giving up the demand for a republic, the Maoists have shown a degree of liberalism. The government wants the Maoists to renounce violence and killings and join the mainstream national politics," Nepal's Home Minister Khum Bahadur Khadka said Saturday.

However, despite the flexibility on their demands ahead of the talks, the Maoist rebels continue to hold hostage about 150 workers of various political parties, including 24 policemen, officials said. Bureau Report