Military

DATE= 05/28/02

TYPE=CORRESPONDENT REPORT

TITLE= NEPAL / STRIFE / S-L COMBO

NUMBER=2-290264

BYLINE= JIM TEEPLE

DATELINE= NEW DELHI

CONTENT=

VOICED AT:

INTRO: Government officials in Nepal say scores of Maoist rebels have

been killed during a failed attack on an army base in the western part

of the country. V-O-A's Jim Teeple reports from our South Asia Bureau

in New Delhi the fighting comes as political turmoil is gripping the

capital Kathmandu.

TEXT: Nepal's deputy home minister says there were intense fighting and

heavy guerrilla casualties in Monday night's battle, which took place

at an army camp near Khara in Nepal's Rukum District, more

than 300 kilometers southwest of the capital, Kathmandu.

The fighting took place just hours after Nepal's King Gyanendra

re-imposed emergency rule for a three-month period, to fight the Maoist

insurgency.

The move to extend emergency rule has split the ruling Nepali Congress

Party. Prime Minister Sher Bahadur Deuba -- who supported the extension

of emergency rule -- was expelled from the party in a revolt led by former

Prime Minister Girija Prasad Koirala who opposed the measure.

Defying his party, Mr. Deuba Sunday dissolved parliament and set

new elections for November. Even though he no long heads the ruling party,

Mr. Deuba is expected to stay on as prime minister -- but he will not

be able to campaign as a candidate for the Nepali Congress Party.

/// REST OPT FOR LONG ///

Emergency rule was first authorized last November, after the rebels

walked out of peace talks and resumed their struggle to overthrow the

world's only Hindu kingdom and establish a people's republic. Under

the emergency, security forces have been given enhanced powers to detain

and restrict the movements of Nepali citizens they consider to be Maoist

supporters.

Since last June's royal massacre, when a deranged Crown Prince Dipendra

gunned down his father King Birendra and nine other members of his

family, Nepal has lurched from crisis to crisis.

More than four-thousand people have died in the insurgency -- half of

them in the last six months. Nepal's fragile economy -- heavily

dependent on tourism -- has sunk to new lows. (Signed)

neb/jlt/wd