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"We have taken the decision to become more flexible on the advice of our friends, keeping in view the changing circumstances," a statement issued by the president of the underground party Pushpa Kumar Dahal alias Prachanda said.
"We will be compelled to adopt a stronger policy and decisive action if the ceasefire is breached by the other side," the statement faxed to some newspapers warned.
The rebels have lost nearly 1,000 of their men in the week-long crackdown launched by the security forces in the Maoist stronghold of Rolpa district.
Continuing their operations, the security forces killed 250 rebels in Gam, where the Maoist rebellion originated.
The ultras had twice in the past declared a truce only to target government establishments on both occasions.
A state of emergency was declared last November when Maoists unilaterally withdrew from a four-month ceasefire after three rounds of talks ended inconclusively.
The rebels have been waging a violent insurgency for the last six years to replace the constitutional monarchy. More than 3,000 lives have been lost during this period.
Meanwhile, Prime Minister Sher Bahadur Deuba vowed to crush the Maoist insurgency and sought international support to fight the threat.
Deuba, who met US President George W Bush at the White House in Washington, said Bush showed 'tremendous goodwill' towards Nepal to fight terrorism.
Speaking at the Wilson Centre, he said, "Most of my colleagues in parliament and in my cabinet are also soldiers of democracy. We will leave no stone unturned to fight again to liberate our people from terror and to ensure security, peace, freedom and improved quality of life to each and every man, woman and child in Nepal."
He expressed happiness at the offers of help by US President Bush and Prime Minister Vajpayee.
SAARC has passed a resolution against terrorism and China has made it clear that although the terrorists call themselves Maoists, they will get no help from Beijing, he said.
President Bush has assured of help both for development of the country and strengthening its security forces, Deuba said.
"An American military team has gone to Nepal to assess the country's needs. However, US forces will not be asked to fight the Maoists," he said.
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