Nepali leaders give cautious welcome

"We think the Maoist statement is a positive sign, but some clarifications are needed to create an atmosphere of mutual trust," said Nepal Communist Party-United Marxist and Leninist general secretary Madhav Kumar Nepal.

He added that the rebels should first lay down their arms, ending a conflict that has claimed about 12,000 lives since 1996 in the Himalayan kingdom.

"To prove their sincerity and genuine desire for talks, the Maoists should make a formal announcement (on giving up their arms) from their party's plenum," Nepal told AFP.

On Monday, Maoist chairman Pushpa Kamal Dahal, also known as Prachanda ("The Fierce"), called for talks with an alliance of seven political parties working to restore democracy in Nepal after February's royal takeover of power.