KATHMANDU - A senior US diplomat Wednesday urged Nepal's King Gyanendra, who seized power 100 days ago, and political parties to bury the hatchet and concentrate on tackling an increasingly bloody Maoist insurgency.
"The threat is so large it's time for political parties and the palace to move forward together," Assistant Secretary of State Christina Rocca said at a news conference at the end of a three-day trip.
Rocca, the highest level US official to visit since King Gyanendra seized power, said that a few years ago Maoist rebels were only active in 30 districts but now enjoyed a presence in 72 out of the 75 districts in the impoverished Himalayan nation.
"The palace and parties need to pull together to find a sustainable peace," she said.
Rocca said there could be no military solution to the nine-year-old revolt aimed at installing a communist republic that has claimed over 11,000 lives.
"The Maoist problem has to be resolved at the negotiating table," said Rocca, whose visit coincided with some of the deadliest fighting reported between rebels and troops since the king's February 1 takeover.
Nepal's army said hundreds of rebels stormed two bases overnight Monday, sparking battles that killed at least 37 guerrillas and four members of the security forces.
Earlier Rocca called for elections and "true multi-party democracy" as soon as possible and warned failure to probe human rights abuse complaints could "jeopardise our (US) ability to continue assistance."
She added US military aid to Nepal's badly-equipped army was still under review since the king took control, saying the move was necessary because squabbling parties had failed to end the insurgency.
The United States spent 10 percent of its 45 million dollars of aid to Nepal in 2004 on security that included arms and training for Nepal's army. This year, 1.5 million dollars has been set aside for that purpose.
Rocca met King Gyanendra Wednesday morning after holding talks with Foreign Minister Ramesh Nath Pandey and chief of army staff General Pyar Jung Thapa.
She said she had expressed Washington's "firm belief reconciliation between the government and political parties is crucial if Nepal is to move toward functional democracy and to address the brutal Maoist insurgency" and called her discussions "productive."
She also urged the government to free "all political detainees, to restore civil liberties."
Soon after her appeal, authorities freed four senior politicians arrested after the king's takeover -- three belonging to the Nepali Congress and one to the Nepal Communist Party-United Marxist Leninist party.
But hours later a powerful anti-corruption commission set up by the king ordered the detention for five more days of former premier Sher Bahadur Deuba, who was fired by the king, and his ex-works minister Prakash Man Singh.
Deuba, arrested two weeks ago and being held on corruption charges, has accused the panel of a vendetta against opponents of the king's takeover.
The government has been freeing some political leaders and activists since King Gyanendra lifted emergency rule nearly two weeks ago but human rights groups say hundreds remain in detention.
The acting president of the Nepali Congress-Democratic party, Gopal Man Shrestha, said he told Rocca at a meeting "not to be misled by false pledges of the government when civil liberties still remain suspended."
"The government needs to release all political activists to prove it really is easing restrictions," he said.
Meanwhile, there was criticism of India's decision Tuesday to start releasing military supplies to Nepal. India and Britain suspended arms shipments after the king's takeover.
It "cannot be seen as a positive move for the restoration of democracy," said former communist minister and constitutional expert Nilambar Acharya.
"Weapons from India will help to prolong the direct rule of the king."

05/11/2005 13:31 GMT