UNITED NATIONS, Dec. 30 (Xinhuanet) -- UN Secretary-General Kofi Annan urged Nepal's government and its leftist rebels on Friday to reach a mutually-agreed truce after the expiration of the unilateral ceasefire declared by the latter.

    In a statement issued through his spokesman, Annan voiced serious concern that fighting in Nepal could escalate after the four-month-old ceasefire declared by the Communist party of Nepal (CPN-M) expires on Jan. 2.

    "He deeply regrets that despite the appeal of so many national and international voices, including his own, no progress appears to have been made towards a mutually agreed truce between the government of Nepal and the CPN-M," the statement said.

    It noted that the people of Nepal have benefited from the de-escalation of violence in the last four months and they would bearthe brunt of a renewal in fighting.

    "In the interest of peace and the welfare of civilians throughout the country, the secretary-general therefore reiterates his strong appeal to the government of Nepal to reciprocate the ceasefire and to the CPN-M to extend its unilateral ceasefire," the statement said.

    Annan also pledged that the UN would assist the parties at their request.

    The leftists' insurgency, which started in 1996, has claimed more than 10,000 lives and dealt a heavy blow to Nepal's profitable tourist industry. Enditem