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The Associated Press , Katmandu | Tue, 07/22/2008 6:36 PM | World
Nepal's former rebels say they have withdrawn plans to form the Himalayan country's new government.
The rebels announced their decision Tuesday, saying they had lost the moral grounds on which to lead the new government after their candidate for president was defeated Monday.
The party's chairman Prachanda says the rebels will now allow other political parties to form the new government.
The Maoists had emerged as the largest party in April election.(**)