Crisis In Nepal Continues

(CBS/AP)  Nepalese security forces opened fire Saturday on protesters marching toward the king's palace, witnesses said, wounding at least four people.

The clash happened in the Katmandu neighborhood of Thapathali, about three miles from the royal palace, the symbolic heart of the city and the goal of tens of thousands of protesters filling the city streets.

Authorities have also cut mobile phone service in Katmandu.

Nepal's opposition alliance rejected King Gyanendra's offer to nominate a prime minister for a new government, instead pledging to continue with protests.

"We will not accept ... We will continue the protests," Madhav Kumar Nepal, general secretary of Communist Party of Nepal, of the members of the alliance, told a cheering crowd of supporters in Katmandu.

A visibly uncomfortable king promised Friday to restore democracy in Nepal, trying to end a bloody political crisis that has engulfed this Himalayan nation. His efforts, though, met only with an opposition pledge of more demonstrations.

With at least 150,000 protesters filling the streets and with a top envoy warning the government could be nearing collapse, the king's promises Friday showed little sign of mollifying the political opposition - or a public desperate for change 14 months after he seized power.

Leaders from the seven main opposition parties were scheduled to meet Saturday to discuss King Gyanendra's proposals and come up with a joint statement.

Subash Nemwang of the Communist Party of Nepal said they were locked in individual party meetings Saturday morning.

There were no reports of major protests or clashes early Saturday, although small groups of people were starting to appear on the streets of the capital, Katmandu.

The king insisted in his speech he was acting on behalf of the nation his family has ruled since the 18th century.

His dynasty, he said, has an "unflinching commitment toward constitutional monarchy and multiparty democracy," and he called on the seven main opposition political parties to quickly name a prime minister.

"Executive power ... shall, from this day, be returned to the people," he said in the announcement broadcast on state television and radio.

Gyanendra is deeply unpopular, isolated in a collection of palaces, and has lost control of much of the countryside to Maoists seeking to create a communist Nepal in an insurgency that has killed nearly 13,000 people over the last decade.

Opposition leaders saw little in the speech to resolve the crisis, which began when the king seized power in February 2005, saying he needed to crush the Maoist insurgency that had made holding elections impossible.

"This is incomplete," said Minendra Risal of the Nepali Congress Democratic party.

The king, he noted, fell short of a key opposition demand — the return of parliament and election of a special assembly to write a constitution.

Most opposition leaders want a constitution that would make the king a ceremonial figure or eliminate the monarchy entirely.

But they saw other problems too: Under the new plan, the king would retain an undefined political role in a constitutional monarchy and apparently keep control of the military.

"This looks like another attempt by the king to fool the people," said Subash Nemwang of the Communist Party of Nepal. "It is a desperate attempt to save the regime."

On the outskirts of Katmandu, scene of the most violent protests, many said Gyanendra could not be trusted, while others voiced cautious optimism.

"We have won the battle, but we still must win the war," said Grihendra Shrestha.

The curfew covers Katmandu and the suburb of Lalipur, according to a government statement broadcast on state-run Radio Nepal.

Nepal's crisis has escalated since a general strike called by the parties and the Maoists began two weeks ago. Protesters have filled the streets daily, leaving the country paralyzed, stores emptied of goods and the situation dangerously volatile. Security forces firing at protesters have killed at least 14, and wounded many more.

The Maoists remain a major unknown. Although they have recently allied themselves with the political parties, their violent history worries even their allies.

When Gyanendra claimed direct control over the government 14 months ago, he argued that he had to bring order to a corrupt political scene and end the communist insurgency.

While many initially welcomed the king's move, hoping he would bring stability, his popularity waned badly as the insurgency worsened and the economy faltered.

"It's not enough for us. We are demanding a new constitution with a presidential system - a republic," Prakash Thapa, a teacher, said Friday after the king's speech. "This country does not need Gyanendra, the thief."

Associated Press writers Matthew Rosenberg and Binaj Gurubacharya contributed to this report.