The U.S. ambassador to Nepal has urged King Gyanendra to reconcile with the nation's political parties, warning that Nepal could "slide toward confrontation, confusion and chaos."
Speaking in Kathmandu late Tuesday, Ambassador James Moriarty said the royal palace should reach out to political parties "with sincere proposals" that reflect a common agenda of multi-party democracy and constitutional monarchy.
Nepal's king seized absolute power on February 1, saying the move was necessary to end government corruption and quell the nine-year-old Maoist insurgency.
Meanwhile, Nepal's army troops are continuing a search for soldiers missing since Sunday's fierce clash with the rebels in a remote western district.
Tuesday, the army said it found the bodies of 40 soldiers and 76 were still missing.
The rebels say they have killed 159 troops and captured another 50. The army rejects the claim.
Some information for this report provided by AFP and Reuters.