UPDATE- May 4 - 4:00PM

The Maoist led government is not more.

I have just come from a press conference at the Prime Ministers office where Prime Minister Prachanda was to address the nation.

The Meeting was first addressed by Minister of Communications and Information, and spokesperson of the Government, Krishna Mahara. He informed those present that the just completed cabinet meeting has declared that the actions of the President in reinstating the Chief of Army Staff was illegal, and sent him a letter demanding he revoke his decision. He also informed that the cabinet meeting has also accepted the resignations that had been presented by the ministers from the UML and the Sabdhavana party.

After this Prachanda addressed the Nation. He announced that he has resigned from his position as Prime Minister. This has naturally completely changed the political situation in Nepal. It seems, my early analysis would be, that this is to open it up to the opposition to try and create a government without the Maoists, which would be extremely difficult and have no political basis- apart from being "anti-Maoists".

It is hard to tell at present the exact course of events, however, when i have more information i will pass it on. There again has been protests from both sides all day, which without doubt would have had some clashes.

Still a situation of tremendous uncertainty. things are changing by the moment, sorry for short post...