Kathmandu: Two more people died in clashes as violence andturbulence in Nepal'sTerai plains, where people of Indian origin live, spread despite Prime MinisterGirija Prasad Koirala's appeal for peace.

A policeman and a protester were killed in Koirala's hometown Biratnagar Wednesday night, the same day the government decided to concedetwo of the major demands of the demonstrators and asked them to begin talks.

Naresh Jung Karki and Sadanand Yadav were killed whenhundreds said to be led by the Madhesi Janadhikar Forum, a socio-politicalgroup spearheading the protests, stormed a police post in Budhnagar near theIndian border.

The mob reportedly carted away sophisticated firearms fromthe post after the clashes and three policemen are still missing, giving riseto fears that they could have been taken prisoner by the crowd.

This takes the toll in the Terai clashes to 11.

Fresh violence was also reported in Sunsari district, whereForum activists were said to have vandalised over 10 trucks.

Eastern Nepal reeled underan additional blow as a second ethnic group, the Limbu community, called athree-day strike in areas where they are concentrated, to press for an autonomousLimbu state.

The three-day closure, called Wednesday, has shut down shopsand markets and forced traffic off roads in Nepal's tea garden districts.

The unrest continued despite Koirala making an emotionaladdress to the nation Wednesday, pleading for peace and asking all dissentersto resolve grievances through dialogue.

Conceding that the Madhesis -people of Indian origin livingin the Terai plains - have been badly neglected by a series of earliergovernments, Koirala Wednesday pledged to fulfil their demand for a federalform of government.

He also agreed to add more electoral constituencies in theplains areas based on population to enable the community be better representedin parliament.

Home Minister Krishna Prasad Sitaula, the chief architect ofthe peace negotiations between the government and the Maoist guerrillas, hasbeen asked to form a talks team to start dialogue with the Forum and theJanatantrik Terai Mukti Morcha, a group of former Maoists.

However, Koirala has warned that the government will comedown heavily on the unrest in the days to come.

"Stop protests and shutdowns," he said.

 "All problems canbe resolved through dialogue," he said.

The first sting of the Terai violence was felt by followersof King Gyanendra, whom the government suspects of fomenting unrest in theplains to prevent elections from being held by June.

Police this week arrested Kamal Thapa, who was home ministerduring the last turbulent days of King Gyanendra's Government, Badri PrasadMandal, who held two ministries, and Salim Miya Ansari, former forest ministeralleged to have links with the underworld of Indiaand Pakistan.

They were sent to detention yesterday (Jan 31, 2007)for 90days on the charge of posing a threat to the country's peace and security.