Nepal Celebrates Peace Deal With Rallies

Nepal's Prime Minister Girija Prasad Koirala, left, and Maoist rebel leader Prachanda sign a formal peace accord in Katmandu, Nepal, Tuesday, Nov. 21, 2006. Nepal's government and communist rebels signed a peace deal Tuesday to end a decade-long insurgency, paving the way for the guerrillas to join the country's interim government. (AP Photo/Binod Joshi) (Binod Joshi - AP)

KATMANDU, Nepal -- Rallies celebrating Nepal's peace deal swept the impoverished Himalayan country Wednesday, and King Gyanendra accepted the pact between the government and communist rebels who had jointly forced him to give up his authoritarian rule.

The unexpected announcement by the royal palace followed the agreement reached by the rebels and seven-party government, marking the end of a 10-year insurgency that killed more than 13,000 people.

"His Majesty the king is pleased that a peace agreement has been concluded in keeping with the nation's needs and people's aspirations," the statement said.

The king "appreciated the contributions of all those involved in bringing to an end bloodshed, violence and terrorism through the peace accord and hopes that by ensuring sustainable peace, a prosperous Nepal can now be built," the statement said.

Prime Minister Girija Prasad Koirala and Maoist rebel leader Prachanda, who uses a single name, signed the accord Tuesday.

On Wednesday, schools, offices and businesses were closed after the government declared a public holiday.

Thousands of men, women and schoolchildren took to the streets in celebratory rallies around the country to mark the signing of the accord, which many hope will help bring peace and stability to the impoverished nation.

Thousands of political activists and citizens gathered in the heart of Katmandu, waving banners and chanting slogans.

"Victory is ours! Long live people's democracy and peaceful Nepal," they chanted.

There were reports of similar rallies in other parts of the country.

The agreement came after months of negotiations focused on how to disarm the insurgents and usher them into the government, which they helped bring to power by backing mass protests in April against Gyanendra's dictatorship.

The rebels are pledging to shun violence and work on a campaign of peace to build a new Nepal.