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WASHINGTON, Friday (AFP) The United States said that Nepal's decision to call elections two years early was an internal matter, but said domestic fury over the move would not hinder US plans to provide anti-terror aid to Kathmandu.

Nepalese Prime Minister Sher Bahadur Deuba sparked political fury with his recommendation to the king to dissolve parliament, as it seemed set to reject a six-month extension of emergency rule, which hawks say is needed to crush insurgent Maoist rebels.

"It's obviously an internal matter to be worked out within Nepal's democratic system through procedures established by their constitution," said State Department deputy spokesman Philip Reeker.

"They certainly continue to struggle against the Maoist insurgency that we've talked about and we reiterate our support for the right of the government of Nepal to safeguard their citizens against the Maoist guerrillas within the framework of their constitution."

"The dissolution of parliament does not affect our plans to provide economic and security assistance to Nepal."

The Bush administration has already asked Congress to grant 20 million dollars in military aid to Nepal's government as it battles the rebels. The money has not yet been approved -- and officials say they are still working out how it can best be spent.

At least a dozen US military experts have in recent weeks toured far western parts of Nepal where the insurgency, which has killed 2,700 people, broke out in 1996.

Nepalese defense officials have said their government wants foreign financing for night-vision helicopters, automatic weapons and rocket launchers, among other items. 

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