Nepal's governing parties and Maoist rebels met on Thursday about an interim constitution that could bring the rebels into government and see the monarchy suspended, but failed to reach agreement after a second day of talks, officials said.
"The work on the interim constitution is nearly finished and we were supposed to present the interim constitution to the prime minister today, but due to his ill health we decided to present it Friday," Maoist spokesman Krishna Bahadur Mahara told journalists on Thursday night.
Leaders from the ruling seven-party coalition, including Prime Minister Girija Prasad Koirala, attended the talks, while the Maoists were represented by their second-in-command, Baburam Bhatterai.
Rebel leader Prachanda made an appearance at the talks at the end of the day.
Arjun Narsingh, a senior leader from the Nepali Congress party, told journalists waiting outside the talks venue the government and former rebels were "very close to reaching a final deal on the interim constitution".
Officials gave no details of the constitution expected to be agreed upon in further talks yesterday.
Earlier in the day, senior government negotiator Pradeep Gyawali said talks on Wednesday were "positive and sorted out differences that cropped up on some crucial issues, including who [was] to be made the head of state in the interim period."
But he would not elaborate further.
The Maoists have said they wanted to strip King Gyanendra of his title and name a temporary head of state such as Prime Minister Girija Prasad Koirala, the respected octogenarian architect of last month's peace deal that officially ended a decade-long civil war.
Some members of the interim coalition, however, would prefer to see the position left open or the king -- who is still revered by many in the conservative nation as a Hindu deity -- retain a strictly ceremonial role.
"Unlike the previous constitution of 1990, the new interim constitution will not give any power to the king," said Maoist negotiating team member Dina Nath Sharma.
"There will be instead a provision that the future of the monarchy will be decided by the majority of the first constituent assembly," Sharma added.
Under the terms of the peace deal, elections are to be held next June for the assembly that will permanently rewrite the constitution and decide whether to retain the 238-year-old monarchy.
The king, however, has already been stripped of most of his powers and has been tainted by allegations of abuse of power.
King Gyanendra and Queen Komal were heading south for the winter to escape the cold and what royal astrologers say is a bad spell on the palace, according to a news report on Wednesday.
The monarch was also said to be under orders to keep a low profile.
Despite differences on who, if anyone, would be named Nepal's interim head of state, the seven-month-old peace process was making headway, rebel negotiator Sharma said on Thursday.
"Though yesterday's meeting ended inconclusively, the talks are on track and today's meeting is likely [to] make a final decision on the contentious issues," said Gyawali, speaking for the government side.
Once foes, the rebels and parties in the coalition government formed a loose alliance late last year, and in April organized massive protests that forced the king to give up direct rule.
Armed rebels still control large tracts of the countryside.
At least 12,500 people were killed during the rebel war.
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