Nepal's Maoists and the government said on Wednesday they had resolved differences over managing their weapons, paving the way for the inclusion of the insurgents in an interim administration.
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The announcement came after Maoist chief Prachanda and Prime Minister Girija Prasad Koirala held talks to end a row over the issue.
The dispute had begun to strain ties between the two sides and hurt their three-month-old peace process.
A joint statement by the two sides said that the rebels and their arms would be confined to one set of camps while government troops would be stationed in their barracks.