Nepal?s new prime minister was sworn in on Thursday and began wooing political parties to join a multi-party government in a bid to defuse a political crisis and end a Maoist revolt in the Himalayan kingdom. Sher Bahadur Deuba, fired by King Gyanendra nearly two years ago, was reappointed on Wednesday as Nepal?s 14th prime minister in as many years, replacing royalist Surya Bahadur Thapa who quit last month after weeks of pro-democracy street protests.

Deuba was sworn in by King Gyanendra at the sprawling Narayanhity palace in the temple-studded capital, Kathmandu. ?I will make all efforts to include other political parties to the government. Let me first meet parties, then I will form the new cabinet,? Deuba told reporters. Speaking shortly after his appointment on Wednesday, Deuba said he would work for peace and would aim to hold a general election by April next year, as requested by the king.

His sacking by the powerful king in 2002, and the subsequent appointment of pro-royalist governments, provoked a crisis and political parties have since been demanding the restoration of full democracy. His appointment is expected to ease political tension but is unlikely to stop the rebel violence that has plagued the impoverished kingdom since 1996, analysts said. Two of the main parties that have been leading the democracy protests were guarded in their reaction to Deuba?s return. The Nepali Congress met on Thursday and was due to meet again on Friday. A party spokesman said protests would go on. ?The general thinking of the party is Deuba?s appointment does not address the issues raised by us during the protests, which will continue,? said spokesman Arjun Narsingh K.C. The Maoist rebels, fighting for a communist state in place of the monarchy, have not commented, but have said in the past a government change would make no difference to their revolt.

Opposition leaders say the growing anarchy in the countryside and the political crisis in Kathmandu could turn the world?s only Hindu kingdom into a failed state, a danger zone of instability between the nuclear-armed giants of China and India. One general said Nepal could become the new Afghanistan ? a nest for international militants. The rebels, who model themselves on the Chinese revolutionary but are disowned by Beijing, have about 15,000-20,000 core fighters backed by about 50,000 militia. They insist on U.N.-brokered negotiations and elections for an assembly to prepare a new constitution to decide the role of the monarchy.

The revolt is bleeding aid-dependent Nepal, where the average income is 60 US cents a day. Tourism has collapsed in a country that is home to eight of the world?s tallest mountains, including Mount Everest.

As Nepal grapples with the Maoist revolt, police in the eastern Indian state of Bihar, which shares a border with Nepal, arrested 12 Maoist rebels in the provincial capital, Patna. Police said they had also stepped up their vigil along the porous 700-km (440-mile) border to prevent rebels from sneaking into Bihar. But analysts see little hope of an end to the insurgency under Deuba. Few expect him to be able to bring the rebels back to negotiations because he has in the past rejected their demand for a new constitution.

Peace talks failed twice in the past after the government refused to compromise on the role of the monarchy. But analysts say Deuba?s appointment could end the political party protests because he is seen as less of an ardent royalist than his two predecessors. Nevertheless, he will have to convince the main parties, which have been insisting they be allowed to name the new prime minister, that he is his own man, independent of the king.

Although a constitutional monarch on paper, King Gyanendra has effectively wielded unchecked power. He was crowned in 2001 after his popular brother, King Birendra, and eight of his relatives were killed by the then crown prince, Dipendra, who then shot himself.

<B>Gopal SHARMA</B>