Nepalese children look at damage caused by a bomb blast in Kathmandu.

The death toll made it one of the bloodiest in recent weeks in the poverty-stricken Hindu kingdom, observers said.

At least 131 people, including 98 Maoists, 29 soldiers and four policemen, were killed in clashes, officials said.

The rebels have been battling since 1996 to oust the constitutional monarchy and install a communist republic.

There has been a surge in bloodshed ahead of the January government deadline for the rebels to resume peace talks.

The Japan Times Weekly: Dec. 25, 2004
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