July 8, 2006:
The government wants the Maoists to return stolen property and stop extorting money from businesses. The Maoists refuse, as they need to raise about $20 a month for each gunmen they have in service. The Maoists want to change nothing, in their organization, until they see how the new constitution shapes up, and how the upcoming elections turn out.
July 6, 2006: In eastern Nepal, two Maoist gunmen were killed during a dispute between Maoist factions from different tribes.
July 5, 2006: The government has disbanded the joint police-army units used for hunting down Maoists.
July 4, 2006: The government invited the UN to monitor the Maoist forces during upcoming elections. The Maoists control large sections of countryside, and about a third of the population. The Maoists use terror, when persuasion fails, to keep people in line. After all, it was Mao who said, "political power comes out of the barrel of a gun." The government doesn't trust the Maoists to stand idly by if people appear ready to vote against the Maoists.
July 1, 2006: The devil is in the details. The Maoist proposal that many of their armed men be merged with the army, was not well received by the army generals. The political parties suggested that the UN supervise the weapons of Maoist gunmen who are demobilized. The Maoists don't like this, and don't want to give up their weapons until new elections are held (and, presumably, the results are acceptable to the Maoists.).
June 17, 2006: The Maoists agreed to disband their government functions in rural areas, and join the regular government. The Maoists will also work with the other political parties to create a new constitution.