Wednesday, August 31 2005 12:16 Hrs (IST) - World Time -

New Delhi: In strong comments on the developments in Nepal, US Ambassador David Mulford today (Aug 31, 2005) said King Gyanendra has to 'wake up' to the long-term effect of the 'deteriorating' situation on the Himalayan Kingdom and have a 'rethink' on the Maoist problem.

Neither India nor the US are in a position to intervene directly, he told reporters in response to a spate of questions on Nepal.

"We are hoping that the King wakes up to the fact that Nepal is going to be poorly served in the long run by the deteriorating circumstances, deteriorating economy and frightening away of investments," he said.

Mulford said there have been restrictions on supply of military equipment to Nepal and 'some limitation' on related support and advisory services.

"The hope is that this will help him (the King) recognise that he is going have increasing difficulty keeping his position vis-a-vis the Maoists unless he rethinks on it," he said.

He said the US has made it clear that it seeks restoration of democratic principles in Nepal including civil liberties and political freedom and 'encourages' the King to restore his relations with political parties and the democratic political process.

Mulford said the US was opposed to Maoists "In all shapes and forms our position is identical to that of India".

Asked about the recent bomb blasts in Nepal, he said the US was very concerned about it and was in close touch with India.