KATHMANDU, Aug 9: Maoist rebels and the Nepal government said on Wednesday they had settled a dispute over monitoring each other’s fighters and weapons — a move which revives their peace process and power-sharing plans.

The joint announcement followed a meeting between rebel leader Prachanda and Prime Minister Girija Prasad Koirala on the arms dispute, which had threatened a three-month ceasefire.

Under the agreement, the rebels would confine their soldiers and weapons to camps in the countryside and the army would stay in barracks, while UN civilians would monitor both sides, they said in a joint statement.

“We have agreed on a UN letter asking assistance in monitoring and managing arms and armies of both sides,” said Home Minister Krishna Prasad Sitaula.

Arrangements would be worked out among the parties and the United Nations, the minister said.

“By reaching a common consensus we have entered into a new process in the peace deal from today onwards — this has opened doors to address a new agenda during the peace process,” rebel spokesman Krishna Bahadur Mahara quoted Prachanda as saying.

The spokesman told a press conference the meeting between Prachanda and Koirala “has sorted out the confusions that cropped up in the past few days. We have come to a positive conclusion and it is very important and sensitive.”

The letter signed by Prachanda and Koirala was handed over to the United Nations High Commissioner for Refugees country representative Abraham Abraham at a media conference.

It will be forwarded to UN General Secretary Kofi Annan.

The issue gained urgency this week after the rebel number two Baburam Bhattarai warned the peace process was in jeopardy because of differences over weapons and over the role the king should play under a new constitution. The dispute had threatened to derail plans for elections next year for a constituent assembly. —AFP