Nepal King names new cabinet, world condemns

KATHMANDU - Nepal's King Gyanendra unveiled a 10-member cabinet under his leadership on Wednesday, a day after he sacked the prime minister for failing to hold elections or end an escalating civil war with Maoist rebels.

Amid global condemnation, a South Asian summit in Dhaka, which the king was due to attend next week, was postponed as India pulled out, partly in protest at the king's move.

Life carried on as normal on the streets of Kathmandu, but the revolt-racked country remained largely cut off from the rest of the world a day after the king dismissed Prime Minister Sher Bahadur Deuba and assumed power himself.

Gyanendra declared a state of emergency, suspended civil liberties, including press freedom, and placed many leading politicians under house arrest. He said his new government would aim to restore multiparty democracy within three years.

Phone lines and internet links from Nepal remained cut. But air links, badly disrupted by the takeover, were restored.

The king's move to take power drew condemnation from the United States, neighbouring India, Britain and the United Nations, who said the move would play into the Maoists' hands and urged the immediate restoration of democracy.

But many Nepalis seemed happy to see the back of politicians widely regarded as corrupt and incompetent.

"We're very happy," said Simon, a bystander in the centre of town. "This will help restore order. He's a good man, but the politicians are corrupt. We have more chance of peace."

On a sunny day in Kathmandu, life appeared normal, with children in uniform going to school and no sign of increased security, apart from the usual army patrols.

A Reuters team was turned away from Deuba's house in the hills overlooking the capital by police, standing guard alongside soldiers manning machinegun nests.

Plainclothes police and elite special forces in blue camouflage uniforms also guarded the home of Madhav Kumar Nepal, head of the Communist Party of Nepal (UML), the largest in the sacked four-party coalition.

"I am under house arrest," Nepal said, shouting from his rooftop where he was enjoying the sun in a grey tracksuit. "I am fine. They have not even issued any (arrest) papers."

Nepal is locked in a bitter three-way struggle between the king, the rebels and political parties which are divided. Sacked prime minister Deuba was Nepal's 13th in 14 turbulent years as a constitutional monarchy.

Political parties can bring up to half a million activists onto the streets, and protests have toppled previous governments appointed by the king. But they enjoy limited popular support.

The Maoists have long insisted they would rather deal directly with the king in any peace talks, and many Nepalis seemed inclined to give the monarch a chance to prove himself.

About 11,000 people have been killed in the Maoist insurgency since it erupted in 1996. Diplomats worry that the revolt could be spinning out of control and that Nepal could one day become a haven for international terrorist groups or drugs trafficking.

The Rajdhani newspaper said the king had made a "risky move", and said he still needed to unite political parties and isolate the Maoists.

"This move is also an opportunity for His Majesty. If he succeeds in maintaining peace and holding elections within the deadline, then the popularity of the throne will be tremendously increased," it said in an editorial.

The king said he would chair the cabinet, mostly consisting of royalists, and no prime minister was appointed.

The Maoist rebels, fighting to topple the monarchy, called for a three-day general strike from Wednesday in protest, the Press Trust of India said.

Rebel leader Prachanda, who uses one name, said the king's action smacked of "medieval feudal autocracy".

Despite the troubles, tourists still come to Nepal in their tens of thousands, and have never been targetted by the rebels.

"I was worried yesterday, but it's OK today," said British tourist Alex Ball. "I plan to go to the Everest region on a trek. (But) I can't contact my local (trekking) agents. The email is down, the telephone is down."

New Delhi, which has been watching with concern the bloody revolt in its landlocked neighbour, said it had tried to dissuade Gyanendra from a grabbing power. But analysts said the king had called India's bluff.

"Clearly, King Gyanendra has calculated when it comes to a choice between the monarchy and Maoists, India and the international community would have no option but to side with him," the Indian Express newspaper said.

- REUTERS