Nepali policemen missing after rebel attack

KATHMANDU, Thursday (Reuters) At least seven policemen were missing after a fierce battle with Maoist rebels in Nepal in the biggest clash since a guerrilla ceasefire ended 10 days ago, an army officer said.

The fighting began on Wednesday evening in the western Nepal town of Dhangadhi after the rebels attacked many government installations.

"The policemen went out of contact after the Maoists stormed a post where about 30 policemen were having dinner," the officer said, without giving further details.

Another army officer said reinforcements had been sent and the guerrillas, who wanted to storm a local jail, were repelled.

"The situation is under control," he said.However, the independent Kantipur radio said 20 policemen were missing and three people, including a civilian, had been wounded.

Dhangadhi, a Maoist stronghold, lies about 660 km (410 miles) west of the capital Kathmandu on the border with India. The Maoists have been fighting since 1996 to replace the monarchy with a communist republic in the world's only Hindu kingdom, a conflict that has cost more than 12,500 lives and shattered the Himalayan kingdom's tourist and aid-dependent economy. On Jan 2, the Maoists ended a four-month ceasefire, accusing the royalist government, which had refused to match the truce, of provoking them to break it.

They have threatened to extend their revolt from rural areas to cities and towns.

Residents in Dhangadhi said they heard gunfire and big explosions for several hours.

"We were all terrified and no one dared venture out of their homes," resident Madhav Upadhyaya told Reuters by telephone.

"We could not sleep the whole night. But it is quiet now."