Serious escalation in violence ahead of government’s 13 January deadline for Maoists to agree to peace talks. At least 100 killed as fighting intensified in eastern and western districts, while bomb attacks targeted government offices in Kathmandu. Maoist chief Pushpa Kamal Dahal (a.k.a. Prachanda) vowed to sabotage elections if government goes ahead without meeting Maoist demands for talks leading to constituent assembly. Two-day strike called by Maoist Newa National Liberation Front 20-21 December followed by blockade of Kathmandu valley and parts of east and west Nepal. Blockades lifted 29 December. King Gyanendra’s visit to Delhi postponed indefinitely at last minute due to death of former Indian PM P.V. Narasimha Rao. Visits to Nepal by EU Troika and UN working group and Kofi Annan statement of 24 December underlined growing international concern at deteriorating situation.

Violence escalated after Dasain truce ended 28 October. Fierce 21 November clashes in Pandaun of Kailali district as security forces raided Maoist training camp; 10 soldiers killed, bodies of 26 rebels recovered. Previous week, clashes on major highway at Krishnabhir, close to Kathmandu, and in Kailali district killed at least 11. Further clashes in Khairi Khola area of mid-western Banke district 17 November and Kailali district 29 November. Political infighting also escalated. Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) position in coalition government uncertain after senior UML member publicly called on party to disown leadership. UML General Secretary Madhav Kumar Nepal added UML ready to form interim government including Maoists. Information Minister Mohammed Mohsin, royal appointee in cabinet, warned 11 November that authoritarian government cannot be ruled out if present government fails. PM Deuba’s 13 January deadline for Maoists to agree to peace talks rejected by Maoists. Deuba threatened to hold parliamentary elections should Maoists refuse.

Fighting resumed after Maoists and government observed truce from 20-28 October for Dasain festival. At least 12 Maoists killed in clashes after truce ended. Earlier incidents 2 and 14 October reportedly killed 16 rebels. Political tension and manoeuvring continued with talk of new split in Rashtriya Prajatantra party, member of governing coalition. PM Deuba refused to extend truce and insisted general elections will be held if Maoists do not come for talks. King Gyanendra approved revised anti- terrorism law 13 October allowing preventive detention for 6 months without recourse to judiciary.

Maoists placed tough conditions for talks in response to offer from PM Sher Bahadur Deuba. High Level Peace Talks Committee ended discussions 29 September without decision on way forward. Maoists called general strike 28-29 September in protest at killing of 2 senior leaders. Deuba met Indian counterpart PM Manmohan Singh 9 September seeking further support against insurgency, received promises of military supplies. Five-day Kathmandu curfew lifted 6 September after anti-Muslim protests against killing of 12 Nepalese by Islamic militants in Iraq - at least 2 killed, over 50 injured in clashes with riot police. All Nepal Federation of Trade Unions, responsible for August hotel bombings, withdrew threat of further violence after government agreed to free 2 jailed leaders and provide information about 22 others union claimed as missing. U.S. Kathmandu information centre bombed 10 September prompting withdrawal of Peace Corps.

Maoist rebels suspended week-long blockade of Kathmandu 25 August, gave government 1 month to make concessions including release of jailed guerrillas and public report on missing rebel suspects. Journalists launched protest campaign against excesses of Maoist rebels following murder of reporter and death threats to journalists. Attacks within Kathmandu included killing of 4 soldiers, explosions in luxury hotel, police post and government office and killing of policeman. Maoists forced closure of 12 industries 17 August, and attacked Khalanga in Jumla district, inflicting heavy damage to government infrastructure. Government formed high level peace committee as first step towards institutionalising future peace talks – opposition parties still outside committee. Violent demonstrations 1 September after killing of 12 Nepali hostages in Iraq.

Ongoing violence, with Maoist rebels increasingly attacking targets within Kathmandu: police, municipal and government officials shot dead; bomb blasts 15/18 July wounded 12, killed 1. Three mayors outside Kathmandu also killed. Elsewhere at least 45 died in separate clashes between Maoists and government troops/police. PM Sher Bahadur Deuba announced new coalition government 5 July, but does not include influential Nepali Congress Party. PM to control crucial defence and foreign ministries. Maoist chief Prachanda issued statement saying no immediate possibility of talks but reiterated preference for UN mediation.

PM Sher Bahadur Deuba reappointed by King Gyanendra 2 June after political parties failed to agree on candidate to replace former PM Surya Bahadur Thapa. Opposition parties split on support for Deuba. Main opposition communists, called for constitutional convention, agreed 30 June to join Deuba’s government. Maoist leadership rejected Deuba appointment. Nepali Congress president Girija Prasad Koirala refused to join government, continued to call for return to multi-party democracy. Bomb exploded in Kathmandu Indian-run school in apparent enforcement of indefinite school and college strike called by Maoist student group. Deuba claimed willing to hold ‘meaningful dialogue’ with Maoists in 9 June address to nation. Clashes between Maoists and Armed Police Force (APF) continued, as did Maoist abductions. Thirty-five APF and 4 civilians killed in separate Maoist attacks in western Nepalgunj district 14,19 June.

Political chaos, Maoist violence, strikes, demonstrations continued. PM Surya Bahadur Thapa resigned 7 May amid mounting calls for restoration of democracy. 5 main opposition parties met King Gyanendra; failed to agree on replacement PM, vowed to continue ‘agitation’ campaign. Maoist attacks worsened throughout east and west leaving over 60 rebels and security forces dead. 30 May Kathmandu bus bomb killed 1, injured 21. Maoists reportedly abducted school children and teachers, called for mass school closures.

Triangular conflict between king, political parties and Maoists continued. King Gyanendra attempted talks with political parties in bid to end stand-off: rejected by 5 main parties but Gyanendra met former PM Sher Bahadur Deuba, whom he sacked in 2002 for incompetence. Demonstrations started 1 April to press Gyanendra to fire royalist PM and form all-party government. Political parties vowed to continue protesting until king appoints their nominee as prime minister or revives parliament. Ban on all political gatherings in Kathmandu 8 April led to crackdown on protestors and thousands of arrests (including former PM Deuba). Despite ban, demonstrations continued daily. Maoist rebels called for joint movement with constitutional parties 21 April. Previously political parties have ruled out alliance with Maoists unless they renounce violence. Maoists stormed 2 police posts in separate attacks 5 and 8 April, killing 11 police officers.

Violence and disruptive strikes continued. Fierce fighting 20 March in Beni, 175 miles west of Kathmandu, worst since cease-fire collapsed in August. Government sources claimed 500 rebels killed: Maoists put total dead at under 200 - 40 rebels, 150 security personnel. Earlier attack on telecommunications tower by Maoist rebels in eastern Nepal killed up to 29 troops and 10 rebels. Landmines killed 11 civilians in Kanchenpur district, 4 soldiers in western Kaski district. Maoists launched 15-day transport strike in 14 western districts 10 March. King Gyanendra announced intention to hold long-delayed elections by April 2005.