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Nepal's ruling Seven-Party Alliance (SPA) government and the guerrillas have reached a historic agreement, with both the sides agreeing to form an interim government by Dec. 1 to end the decade-old conflict.

The summit talks held between SPA and guerrilla leaders at Prime Minister Girija Prasad Koirala's official residence at Baluwatar in Kathmandu on Tuesday night reached a 15-point agreement.

As per the agreement, the future of the monarchy will be decided by the first meeting of the Constituent Assembly, the interim government containing guerrillas will be formed by Dec. 1, the present House of Representatives will be dissolved by Nov. 26 and new constitution will be announced by the date, the guerrilla's armed forces "People's Liberation Army" will be kept in seven divisions and 21 brigades across the country by Nov. 21.

An interim legislature containing 330 members will be formed.

(Xinhua News Agency November 8, 2006)