Diplomats tried to broker a compromise between Nepal's king and political parties on Monday that could end 19 days of massive street protests as Maoist rebels renewed their revolt in the countryside.
Thousands of demonstrators defied a curfew to shout slogans against the king in Kathmandu ahead of a major rally planned for Tuesday, which will be led by two former prime ministers and is expected to attract hundreds of thousands of people.
As tensions rose, the US embassy ordered non-essential staff and family members to leave the country. It also recommended American citizens should consider leaving Nepal.
Maoist rebels waging a decade-long insurgency against the monarchy flexed their muscles by staging a raid on a district capital just a few hours drive from Kathmandu.
Hundreds stormed the town of Chautara, 100 km (60 miles) east of the capital and fought a six-hour gunbattle that left at least five rebels and a soldier dead. In Kathmandu, rumours swirled that the king might agree to revive parliament, dissolved in 2002, addressing a key demand of the seven-party alliance leading the street protests.
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