Nepal raises national flag in palace

By Gopal Sharma

KATHMANDU (Reuters) - Nepali authorities raised the national flag at the palace of dethroned King Gyanendra on Thursday, hours after stone-throwing demonstrators clashed with police and tried to storm inside.

More than 25 people were injured when police beat the crowd back with bamboo sticks but protesters continued to shout anti-king slogans.

"Gyanendra, thief, leave the palace!" they shouted.

Earlier on Thursday, the royal flag was lowered from Nepal's palace as the Himalayan nation celebrated its first day as a republic following the abolition of its 239-year-old Hindu monarchy.

A special assembly elected in April voted to abolish the monarch and gave Gyanendra a fortnight to vacate the sprawling pink palace in Kathmandu. His palace will be turned into a museum.

That vote was a key condition of a 2006 peace deal with the Maoist former rebels who ended their decade-long civil war and joined mainstream politics.

"Vive la Republique," read a banner headline in the Kathmandu Post.

"A hope is born," said the Himalayan Times daily.

About 500 people shouting "This is the people's victory" marched in celebration of the new republic.

"I feel really honored," said 27-year-old university student Dev Raj Bhatta standing in sweltering heat outside the palace gate earlier on Thursday.

"The end of the monarchy has made me a proud Nepali citizen."

The U.S. government, which classifies the Maoists as a terrorist organization, gave its support to the new republic.

"This is another exciting milestone in Nepal's democratic development," a U.S. embassy statement said.

Deputy Assistant Secretary Evan Feigenbaum said he held talks with all major Nepali political leaders this week and raised U.S. concerns about political violence.

He declined to comment on whether or when Washington would review the Maoists' designation on two U.S. terrorism lists.