UN optimism over Nepal's future

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A UN peace envoy to Nepal says he is confident that the talks between the government and the Maoist rebels will be successful.

The peace talks are aimed at ending the 10-year-old insurgency.

Ian Martin said the negotiations were proceeding at a rate faster than international standards.

His comments have come two days ahead of a key summit meeting between the Nepalese prime minister and the top rebel leader, Prachanda.

Mr Martin, UN Secretary General Kofi Annan's special representative in Nepal, is heading a mission to help the peace process.

'Difficulties ahead'

His team includes experts on military and political affairs, ceasefire monitors and election specialists.

The team came to Nepal after the government and the rebels jointly asked the UN to supervise the peace process - including arms and troop management and the constituent assembly elections, due to be held next year.

Mr Martin has warned against expecting quick results and says there are many difficulties ahead.

The rebels have differed with the government over giving up arms

But after three rounds of talks between Prime Minister Girija Prasad Koirala and rebel leader Prachanda over the past five days, both sides seem upbeat.

The two are due to meet again on Sunday.

Negotiators say a substantive agreement is likely on key issues such as arms management, an interim constitution, interim government and parliament and the future of the monarchy.

Earlier, the government insisted on disarming the rebels ahead of inducting them into an interim administration.

The rebels refused, saying that a political solution should precede disarmament.

Peace talks have been in place since a popular uprising forced King Gyanendra to end his direct rule and appoint a multi-party government in April.

The rebels backed the anti-king agitation and subsequently entered into peace talks to end the bloody conflict which has left 13,000 people dead.