Monday, September 18 2006 17:55 Hrs (IST) - World Time -

Kathmandu: Even as the government Monday initiated steps to resume the peace negotiations with Maoist guerrillas, public mood in Nepal is turning pessimistic with predictions that the uneasy truce would not last long.

Prime Minister Girija Prasad Koirala made a rare appearance his office and held a cabinet meeting Monday to begin 'homework' for the next round of dialogue.

Maoist chief Prachanda and his deputy Baburam Bhattarai met the ailing Koirala Sunday in a bid to build trust and pave the way for the next round of negotiations, Bhattarai told private television channel Kantipur.

However, though the rebels want dialogues to resume at the earliest, Koirala has not succumbed to the pressure nor announced a date for talks so far.

After three rounds of negotiations, parleys are deadlocked following the government's insistence that the rebels disarm and the guerrillas demanding dissolution of parliament and suspension of monarchy.

The growing suspicion between both sides and the mounting allegations of continued recruitment, abductions, extortion and even murder by the communist insurgents have kept the peace dialogues stalled for nearly three months now.

Nepal's biggest festival Dashain - corresponding to India's Dussehra - begins later this month when the entire nation, including government offices, shuts down for days. The Maoists say they want talks between the top leaders of both sides to resume before Dashain.

The government's dragging its feet is partly attributed to its decision not to be coerced by the Maoists. However, the rebels allege it is also due to the followers of King Gyanendra in the government conspiring to lengthen the talks and scuttle the peace process so that the move to abolish monarchy is checkmated.

Caught between a weak government and aggressive guerrillas, the public continues to suffer, despite the ceasefire.

The Maoists have begun flexing their muscles in the capital, where earlier they were unable to make a dent due to the army's presence.

On Monday, the rebels' student union started a conference at the heart of the city, affecting traffic and triggering fears of a shutdown. Earlier this month, their women's wing had held a convention at the same venue, creating a similar chaos.

Businessmen and even householders in the capital say they are being approached by the guerrillas openly for "voluntary donations", which nobody dares refuse.

The rebel trade union has been intimidating industries like never before. Last week, they threatened the chief of the state-owned Dairy Development Corporation at his own residence and ordered him to be present at their party office for an explanation.

The 75-year-old was also assaulted before stunned family members.

The student union has begun throwing their weight around in private schools, dictating what the fees should be, and compelling students to participate in rebel programmes and rallies.

The committee set up jointly by the rebels and the government to monitor if both sides were adhering to the code of conduct to be followed during the truce has reported violations by the guerrillas, with recruitment of soldiers and extortion still going on.

After the feeling of liberation following the ouster of King Gyanendra's regime in April, now there's growing pessimism and disenchantment, said the Nepali Times weekly.

In its recent opinion poll, the weekly said more than 57 percent of the respondents believe the ceasefire will not last beyond Tihar, the festival of lights in October-November.

"Never before have we seen the kind of lawlessness and anarchy that we see today," the weekly said in its editorial.

"On any given day, there are strikes, road blockages and sit-ins by up to a dozen different groups. The state doesn't exit and it has become a free for all," he said.