Dancing in the street as Nepalis celebrate 'people's victory'

KATHMANDU - Nepalis cheered and danced on the streets in the early hours of Tuesday after King Gyanendra announced he was giving in to massive pro-democracy protests and reinstating the kingdom's dissolved parliament.

Political parties leading nearly three weeks of protests that have crippled the impoverished kingdom hailed the proclamation and said they would most likely call off the anti-monarchy campaign later in the day.

"This victory is the people's victory, long live democracy," hundreds chanted on the streets of the capital Kathmandu and in other towns, whistling and cheering.

Nepal's parliament has been dissolved since 2002, and a multi-party government was suspended in February last year when Gyanendra declared a state of emergency and assumed absolute power himself.

Speaking on national television late on Monday, the king said he was calling back the assembly.

"We, through this proclamation, reinstate the house of representatives which was dissolved on May 22, 2002," he said, adding that the first session would be held on Friday.

"It is the victory of the people's movement," said Arjun Narsingh K.C., a senior leader of the Nepali Congress, the largest political party.

The United States welcomed the move and urged a "ceremonial role" for the king.

Ram Chandra Poudel, another leader of the Nepali Congress, said the seven-party alliance that has led the movement would meet on Tuesday to decide a formal response to the king. "We will most likely call off the protests," he told Reuters.

Gyanendra had offered last week to hand over power to a prime minister nominated by the seven parties, but they said this was not enough. Monday's address went much further in content and in tone.

The king said he was reconvening parliament "convinced that the source of state authority and sovereignty of the kingdom of Nepal is inherent in the people of Nepal, and cognisant of the spirit of the ongoing people's movement".

"For him to even acknowledge there was a people's movement, that really shocked me," said Kunda Dixit, editor of the Nepali Times.

Reinstating the parliament was a key requirement of the pro-democracy campaign.

Elections to an assembly that would write a new constitution have been another demand of the protesters, and of Maoist rebels who control large swathes of the countryside.

The king made no explicit reference to such a constituent assembly but said his proclamation was being made "according to the road map of the agitating political parties".

Analysts said the rebels had been given assurances during frantic negotiations brokered by diplomats that the reconvened parliament would call constituent assembly elections. Giant neighbour India played a leading role brokering the deal.

"This was the only compromise possible," Dixit said.

"The parties got their parliament, the Maoists got their constituent assembly through that parliament, the king got to keep his throne, for now."

But he said there was much to be done.

"Our parties are better at fighting for democracy than making it work."

There was no immediate word from the Maoists, who have been fighting a decade-long insurgency that has killed at least 13,000 people.

The US State Department said it saluted the courage of the people of Nepal in the struggle for democracy and urged the Maoists to renounce violence.

"We believe that he (the king) should now hand power over to the parties and assume a ceremonial role in his country's governance," spokesman Adam Ereli said in a statement.

"Nepal's political parties must step up to their responsibilities and cooperate to turn the people's demands for democracy and good governance into reality. The Maoists must end their violent attacks and join a peaceful political process."

- REUTERS