Government yet to reciprocate Maoist September unilateral ceasefire. Demonstrations and turmoil continued: visiting EU troika concerned Nepal on verge of political collapse. Election Commission set 8 February 2006 for municipal assembly polls; King Gyanendra now promising parliamentary elections by April 2007; Nepali Congress announced boycott, saying free vote impossible under king’s regime. Hundreds protested media curbs in Kathmandu. India doubled border guards in response to Maoists’ pledge to cooperate with Indian counterparts. UN Human Rights monitors reported violence related to insurgency reduced but abuses on both sides continued.

Situation in flux, with both resolution and escalation of conflict possible. Maoists announced 3-month ceasefire 3 September in bid to win support of mainstream political parties. National Human Rights Commission said violence reduced by 90% since ceasefire but government has not reciprocated. Pitched battles between pro- democracy protesters and police erupted almost daily throughout month: police detained hundreds protesting against King Gyanendra. UN accused authorities of violating international human rights standards. Over 20,000 marched for peace in Kathmandu 21 September. FM Ramesh Nath Pandey reassured UN General Assembly of Gyanendra’s “unflinching” commitment to democracy and intent to hold local elections in April 2005, national parliamentary elections by April 2008. King had cancelled proposed New York trip after strong international opposition, including U.S. pressure.

Large-scale Maoist attack on Royal Nepalese Army (RNA) base in western Kalikot district 7 August killed over 50 soldiers; 60 being held as POWs. RNA alleged Maoists tortured, mutilated and executed soldiers in cold blood. Maoist attacks, including bombing and assassination, also carried out inside Kathmandu valley. 7-party opposition alliance agreed to formalise dialogue with Maoists so long as rebels adhere to promises not to attack civilians, NGO staff or political party workers in areas they control. Maoists accused by newspaper of raping 25 women at gunpoint in Saptari district 18 August. King Gyanendra visited eastern and western districts in first trip out of capital since February 2005 coup. Central committee of CPN-UML, largest mainstream leftist party, decided to drop constitutional monarchy platform in favour of democratic republicanism; similar debate intensifying within Nepali Congress in run-up to its general convention.

Maoist leader Prachanda formally invited 7-party alliance for talks on “all political issues”: party leaders positive but called on Maoists first to abandon violence: statement coincided with visit of UNSG’s Special Advisor Lakhdar Brahimi. Government insisted UN mediating role not necessary but Brahimi’s visit and rapid establishment of human rights monitoring mission underlined UN seriousness about helping peace process. Prachanda reinstated second-in-command, Baburam Bhattarai, previously demoted due to policy disagreements. India resumed military aid with shipment of non-lethal equipment. Attacks outside Kathmandu continued, though reporting remained restricted: 7 security personnel killed in west 23 July. King Gyanendra brought more hardline royalists from pre-democratic period and a convicted criminal into his cabinet. Former PM Deuba given 2-year sentence by extrajudicial royal tribunal for alleged corruption: Deuba’s conviction followed by arrest of student leader Gagan Thapa on sedition charges prompted fresh street protests. Civil society-led 25 July protest broken up by police; many arrested.

Maoist attacks continued, killing at least 45 across Nepal. 7-party alliance led by former PM and Nepali Congress party President G. P. Koirala asked Maoists to give up violence and support their agenda for restoration of democracy: Maoist chief Prachanda said would no longer target civilians and political workers, but failed to shun violence. Alliance said would not participate in municipal elections planned for 2006, claiming free and fair elections not possible under king’s direct rule. Kathmandu protest rally demanding restoration of media freedom led to arrests of 50 journalists - later released. Federation of Nepal (umbrella organisation of 2,600 NGOs) said would back 7- party alliance. Landmine exploded under bus in southern Nepal 6 June, killing 41 passengers and wounding 69; Maoists promised enquiry and apologised for deaths.

Despite no reduction of royal powers since 30 April nominal lifting of state of emergency, aid flow resumed. India announced decision to restart limited military assistance 10 May; UK also to resume non-lethal military assistance; no announcement on resumption of U.S. military aid but non-lethal supplies delivered. No discernable moves towards political reconciliation between king and parties. Main political parties formed united front 8 May to launch movement for restoration of democracy; largely peaceful joint protests held 22 and 27 May. Media censorship continued as did certain travel restrictions. Dozens more student activists arrested. Information on crisis outside Kathmandu, including several major military clashes, remained limited and unreliable.

State of emergency formally lifted 30 April, but practical impact and extent of reduction of royal powers uncertain. Battles between Maoists and security forces intensified: at least 100 rebels reported killed western district of Rukum 9 April in deadliest encounter in over year; further 84 rebels reported killed Rukum and Rolpa districts. Widespread disruption caused by general strike imposed by Maoists from 2-12 April. In positive development Nepal agreed to UN human rights monitoring mission: 50-member international monitoring team likely to start deployment across Nepal with wide mandate in May. King Gyanendra met Indian PM Manmohan Singh Jakarta 23 April, claimed India to resume military aid; New Delhi says awaiting progress on democracy. Gyanendra promised elections in over 50 municipalities by April 2006 but parties sceptical. Despite Gyanendra’s reassurances of reconciliation former PM Sher Bahadur Deuba arrested 27 April after refusing to appear before Royal Corruption Control Commission panel; student leaders also arrested. Human rights groups believe thousands of political activists remain in custody.

Dissent against royal coup increased with pro- democracy protests – hundreds arrested. Maoists called 11-day bandh (countrywide general shutdown) for 2-12 April. Former PM Sher Bahadur Deuba released from house arrest 12 March, urged King Gyanendra to begin talks with political parties. Government claimed security forces in western district of Arghakhanchi killed 30 Maoists 7 March. Reports emerged of wide-ranging human rights violations by government-backed vigilante groups in Kapilvastu late February. International community remained largely united against coup: World Bank suspended disbursement of $70 million; UK cancelled $2.5 million aid meant for police, prison services and PMs office; while EU, UN and international aid agencies released joint statement condemning worsening humanitarian situation. Pakistan, however, offered to supply arms (subsequently turned down by Nepal) while China has been publicly supportive and sent Foreign Minister Li Zhaoxing to Kathmandu 31 March. Royal Nepalese Army announced split within Maoist leadership 14 March, claiming second-in- command Baburam Bhattarai expelled from party – subsequent reports appeared to confirm Bhattarai facing internal disciplinary action for criticisms of party line.

Situation increasingly grim after King Gyanendra’s 1 February coup: state of emergency imposed; senior politicians arrested; media subjected to total censorship; and new 13-member cabinet appointed. Daily reports emerged of Royal Nepalese Army killing “Maoists” while vigilante actions against Maoists reported in Kapilvastu district, with at least 20 suspected Maoists beaten to death by local resistance squad and houses torched - retaliatory strike by Maoists reportedly killed 4 civilians. Maoists reacted to coup with strikes and 14-day transport blockade of all major roads into country, bombed electricity station in mid-western Banke district 20 February and increased attacks on security forces. Major clash in Bardiya district 28 February reportedly killed at least 50 Maoists. Five political parties, including that of deposed PM Deuba and arch-rivals Nepali Congress, announced common forum to wage non-violent protest against royal coup. U.S., UK, France, India recalled ambassadors for consultations. UK froze planned military assistance worth U.S.$2.5 million, India announced military aid on hold, World Bank suspended budgetary support worth $70m.

February 1, as CrisisWatch going to press, King Gyanendra announced disbandment of government, intention to rule alone with advisory council for 3 years, and intensified military action against Maoists. Takeover without warning, and consequences feared. Earlier, government’s 13 January deadline to agree to talks ignored by Maoists, who claimed government lacked authority to negotiate. PM Deuba vowed to push ahead with elections in April, announced 9% increase in defence budget. Maoists reiterated aim to obstruct polls, while political parties remained divided. Heavy fighting continued in eastern and western districts: clashes in Kailali district 5 January reportedly claimed at least 55 lives; fighting in eastern area of Ilam 20 January killed 29 soldiers.