Nepal Should Restore Civil Rights, U.S. Envoy Tells Government Feb. 4 (Bloomberg) -- Nepal should restore democratic rights and release political leaders detained under a state of emergency imposed three days ago in the Himalayan kingdom, a U.S. envoy told the new government installed by King Gyanendra. U.S. Ambassador James Moriarty met Foreign Minister Ramesh Nath Pandey yesterday in the capital, Kathmandu, to express U.S. concern at the king dismissing the government of Prime Minister Sher Bahadur Deuba, U.S. State Department spokesman Adam Ereli said yesterday in Washington. ``He made the point that we believe Nepal's government needs to restore and protect civil and human rights,'' Ereli said, according to an e-mailed transcript. The U.S. is ``continuing to consult with neighboring countries about conditions in Nepal.'' King Gyanendra said he will head a new government after dismissing Deuba's administration Feb. 1 for failing to ensure security in the face of an insurgency by rebels fighting to create a communist republic. The conflict has killed more than 10,000 people since 1996 in the country of 27 million, where 80 percent of the population rely on agriculture for a livelihood. Farming accounts for 40 percent of gross domestic product. Nepal, lodged between India and China, attracts tourists and climbers coming to see Mount Everest and eight other of the world's 14 peaks higher than 8,000 meters (26,248 feet). Soldiers and police remain on the streets of Kathmandu and other cities and towns, the Nepalese media is under censorship and telephone and Internet links are still cut, the British Broadcasting Corp. said. Soldiers have been sent into television stations, the BBC reported, without saying where it obtained the information. Student Protest Nepal's human rights commission says the army raided a student hostel after demonstrations in the central town of Pokhara on Feb. 1, the BBC reported. As many as 250 students were arrested, it said. About 100 political activists have been detained and leaders of the main political parties placed under house arrest, Agence France-Presse reported yesterday from Kathmandu, citing an unidentified member of Deuba's Nepali Congress Democratic Party. The U.S. will continue to ``press for the kinds of actions that respect the rights of the people and mark a return to democratic practices'' in Nepal, Ereli said, according to the State Department transcript. Rebels last month ignored a government deadline to start peace talks that broke down in August 2003. They are demanding an assembly be created to change the constitution. Pushpa Kamal Dahal, the rebel leader known as Prachanda, has called for a three-day nationwide strike to protest the state of emergency. Nepal's new Home Minister Dan Bahadur Shahi yesterday told the rebels to return to negotiations or the government ``may have to think of alternative steps,'' AFP said. India's Concern India also expressed concern at events in its neighboring country. Indian Prime Minister Manmohan Singh earlier this week withdrew from a Feb. 6-7 summit of the South Asian Association for Regional Cooperation, due to be attended by King Gyanendra. The meeting was subsequently canceled. Political parties accused the king of acting unconstitutionally in October 2002 when he fired the government, then headed by Deuba, and dismissed parliament. The monarchy held power until 1990 when the constitution was changed to create a multiparty democracy. The king reappointed Deuba as prime minister in June last year. Nepal is one of the least developed countries in the world with 42 percent of its population living below the poverty line. Its GDP was estimated at $1,400 for each citizen in 2004, according to U.S. government data. The international community funds 62 percent of Nepal's development. http://www.bloomberg.com/apps/news?pid=10000080&sid=aunSfuReUu7g&refer=asia