(Adds Maoist threat of protests) By Gopal Sharma KATHMANDU, June 1 (Reuters) - Nepal went back to work on Sunday as government offices and schools opened for the first time since the Himalayan nation ended its centuries-old monarchy and became a republic. A special assembly that voted on the monarchy's fate on Wednesday gave dethroned King Gyanendra 15 days to vacate the imposing Narayanhity royal palace, a prime location in the heart of the national capital. The government declared a three-day national holiday to mark the birth of Nepal as a republic, a crucial condition set by Maoist former rebels in a 2006 peace deal that ended their decade-long civil war which caused more than 13,000 deaths. In Gorkha, a small hill station in west Nepal, Maoist chief Prachanda visited an ancient palace from where the latest monarchy began centuries ago, and put up a sign reading "Federal Democratic Republic of Nepal", state television reported. But the mood in the Narayanhity palace was subdued. "Today is the first day in office after the assembly vote and there is all confusion," a senior palace official, who asked not to be named, said on Sunday, a working day in Nepal. "There is no one to tell us what to do and what not. We are headless," he added. There are nearly 600 civilian employees -- bureaucrats, royal photographers, drivers, cooks and maids -- still working in the palace. They were hired by the king and received direct instructions from him. The government says it will either retire them or move them to government departments. "We are loyal to His Majesty," the palace official said. "But we can't do anything for him." POLITICAL TENSIONS Emerging from years of Maoist conflict and political turmoil desperately poor Nepal is now trying to leap into an era of peace and development. The Maoists scored a surprise win in elections held in April, emerging as the biggest political party in the 601-member constituent assembly -- though they are short of a majority -- and are expected to form an interim government. Addressing a public meeting in Gorkha, Maoist chief Prachanda, who still goes by his nom de guerre, accused other political parties of not supporting his group's efforts to form a new government. The Maoists will launch street protests if they are not allowed to form the cabinet in the next two to three days, independent Kantipur television quoted Prachanda as saying. Maoists have often issued similar threats during the peace negotiations but few have been implemented. Analysts say the ability of the squabbling political parties to steer Nepal through the transition will be tested in the coming days as they try to form a unity government to oversee preparation of a new constitution, another peace deal condition. Meanwhile media reports say King Gyanendra was consulting astrologers for an auspicious hour to move out of the still heavily guarded palace where he has been living since ascending the throne in 2001, after a bizarre palace massacre. In that shootout, popular King Birendra and most royal family members were killed by Crown Prince Dipendra, who was angry over not being allowed to marry his girlfriend. The prince also killed himself. No public memorials were held on Sunday, the anniversary of that incident which broke the mystique of the monarchy, once revered by many Hindus. Gyanendra has not made any comment since the assembly vote and is expected to move to his private home in Kathmandu. (Editing by Bappa Majumdar and Mary Gabriel)
A schoolboy shouts slogans against the education ministry who he says did not make textbooks available, in Kathmandu June 1, 2008. Nepal went back to work on Sunday as government offices ...
