Nepal's new Cabinet on Wednesday matched communist rebels' cease-fire declaration and said it would drop terrorism charges against them in an effort to end a decade-old insurgency that has killed 13,000 people.

The rebels had joined with a seven-party alliance to force King Gyandendra to relinquish power last week and, in a dramatic reversal, the guerrillas now appear to be headed for a role in the political mainstream. Read more here.