Two sides, which so admirably demonstrated remarkable unity in the recent pro-democracy agitation despite their differences on some issues, appear to be moving towards loggerheads.

Even though both are committed to sparing no efforts to reach an understanding on some crucial issues, indications are quite clear that government and the ultras known as "Maoists" may witness mutual acrimony on the fate of the monarchy in the country, and more importantly dealing with the sensitive matter of status of the arms with the cadres of the radicals in the coming days. The latter is now the most complex issue. The country is expected to witness national elections early next year.

The picturesque Himalayan country, embroiled in a bloody Maoist insurgency and also vexed political crisis, recently moved another step further to resolve both the crises, having largely settled the political problem earlier and now addressing the Maoist issue along with plans for a new constitution.

Elections for a constituent assembly to draft a new constitution for the country will be held by April next year, and this decision meets another demand of the ultra leftists, who are now observing a ceasefire with the government following broad understanding between the two sides. The polls dates development had satisfied the Maoists, who were pressing for an election for a body to re-draft nation's constitution.

The present parliament, which was scrapped by King Gyanendra in February 2005,was restored a few months ago following a pro-democracy peoples movement spearheaded by both political parties and the Maoists. This settled the political problems with the king, and the country is back to democratic rule, but the lingering crisis involving the radicals persist although no fighting is there under the changed circumstances.

Things were moving well with the government and the Maoists with Prime Minister GP Koirala and Maoist supremo "Prachanda" achieving unexpectedly good progress in their talks before centering the shape of things relating to the system of governance. Nepal saw the broad-based unity of two sides in ending the absolute rule of the king, whose powers have now been largely clipped by the restored parliament. Close on the heels of all these, the government and the radical leftists initiated difficult dialogue on the future of the nation making progress.

Notwithstanding the narrowing down of differences on a variety of issues, two crucially important subjects like the fate of the arms now in possession of the rebels and the future of the monarchy are haunting them. Obviously, the government wants to continue with the Westminster system of democracy, while the Maoists in principle believe in the one-party communist system, which, however,. is not a bone of contention at the moment.

But the ultimate shape of the monarchy is certainly at the heart of the differences. The prime minister and some parties in the present seven-party alliance coalition favour continuation of monarchy devoid of any executive power, but the ultras oppose monarchy tooth-and-nail in any form.

They even want trial of King Gyanendra for what they say is amassing wealth in the poverty-ridden country and atrocities committed during the pro-democracy movement.

The government has stripped the king of key powers including control over the armed forces, automatic accession to the throne on family lines, and limiting their properties.

But it favours the continuation of the throne in line with Britain, Japan, or Thailand. But the fact remains that the Nepalese throne has been badly bruised by the present king by his absolute power and atrocities to crush the movement seeking democracy.

The Maoists want total abolition of monarchy, making Nepal a "republic" and this is where the two sides are showing increasing differences. A recent comment by Prime Minister Koirala that all quarters -- political parties, the Maoists, and the king -- should have a place in the national affairs and play their role, drew sharp reactions from the radicals, who found the remarks "objectionable" as they sought to equate the king with the Maoists.

This has queered the healthy pitch of negotiations that have been going on for some time past. Maoist leader "Prachanda," whose real name is Pushpa Kumar Dahal, protested pro-monarchy ideas and also urged powerful neighbour India to help Nepal to get rid of the monarchy.

It is believed in certain quarters in Nepal that New Delhi may be favouring continuation of a titular throne. During the pro-democracy agitation, the Indian government had dropped indications that a king without executive powers would be desirable, but later also gave the impression that it was up to the people of Nepal to decide on the issue. The government and the Maoists are likely to lock horns on this issue unless talks remove the big gaps.

But the most sensitive issue is the status of the arms that are in possession of the Maoist cadres. The government wants them to disarm, but "Prachanda" is not ready to give up the arms so easily. After all, they were able to develop a more than 30,000-strong force in ten years and are unlikely to deposit arms without making at least some progress in the realisation of their fundamental objectives.

The issue is assuming significance on one hand and complexity on the other as the elections are drawing nearer. The UN is expected to be involved in monitoring of the arms of the rebels as that of the government troops during or ahead of the polls, but details are contentious in nature and it remains to be seen how settled. Maoists are willing to join mainstream conventional politics, but Prime Minister Koirala said it will be difficult unless they lay down arms. This issue may prove a difficult nut to crack.

Earlier, the two sides demonstrated great signs of accommodation and this made the progress possible, even under difficult situation. So much so was the positive ambience that the Maoists were even expected to join the government in the run up to the polls and "Prachanda" had said the cadres were unlikely to go back to the interior and fighting.

Now, he says there is no question of joining the government without resolving some fundamental matters and does not rule out revival of the fighting. This is definitely a slide that was least expected.

However, things are not that bad despite some ominous signs since both sides are under pressure from the people to deliver the goods because the country suffered badly for long and all want to see Nepal overcome its woes. Since the king is no longer an effective player in the scenario, the government and Maoists must not disappoint their people and should resolve their problems, which is not much difficult given the will and intention.

Zaglul Ahmed Chowdhury is Foreign Editor of BSS.