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KATHMANDU, Tuesday (AFP) Prime Minister Lokendra Bahadur Chand urged all Nepalese to bury their bitter differences and pledged to hand over power to an elected government "as early as possible."

His government, he said in an address to the nation, was working to institutionalize a constitutional monarchy and multi-party democracy.

"The present government is eager to transfer power to the elected representatives of the people as early as possible," he said in a speech broadcast live on state-run radio and television.

Chand was appointed prime minister by King Gyanendra in October, shortly after the monarch had sacked elected premier Sher Bahadur Deuba as "incompetent" in dealing with a seven-year insurgency by Maoist rebels.

The move was sharply criticised by Nepal's political parties as well as human rights groups, who accused the king of usurping executive powers.

"No one could have any doubt that the multi-party system is the best one in the world," Chand said in his brief speech.

"Both his majesty the king and the people's expectations and commitments are centred on the system, although nothing was done in the past 12 years of multi-party system of the government to promote it," he said.

"Therefore, let our thought and action be guided by the monarchical culture and values of the multi-party polity".

After 30 years of a partyless political system and after a 10-week-long political movement, the late King Birendra had dissolved the partyless Panchyat government and re-established multi-party parliamentary democracy in 1990.

Referring to the mutual ceasefire agreement reached with the Maoists last week, Chand said the key demands of the rebels had been met, including the dropping of charges of terrorism as well as withdrawing Interpol arrest warrants against their leaders, and dropping the bounties placed on their heads.

Chand appealed to all Nepalese to forget about mutual bitterness and differences in order to resolve the problems in the larger interest of the nation.

"We should rise above individual, party and group interest and give priority to the nation's existing and long term necessity," he said. 

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