KATHMANDU, May 2 (Xinhua) -- U.S. Ambassador to Nepal Nancy Powell had a formal meeting with chairman of the Communist Party of Nepal (Maoist) (CPN-M) Prachanda for the first time, the U.S. Embassy said Friday.

    According to a press release issued by the U.S. Embassy in Nepal Friday morning, "The U.S. Ambassador Powell met with chairman of the CPN-M Prachanda (Puspa Kamal Dhahal) to discuss the outcome of the CA elections, CPN-M's plan for the CA and the future of the U.S.-Nepal relations."

    Powell said that the U.S. government was ready to assist Nepal for stability and democracy and expressed confidence that the new government will ensure a favorable environment for donors and investors, according to the statement.

    "Powell encouraged Prachanda to ensure that all CPN-M organizations illustrate their commitment to the political process through their words and actions," said the statement.

    During the meeting, chairman of the CPN-M Prachanda drew the attention of Powell towards the fact that U.S. has listed CPN-M in its terrorist watch list.

    The U.S. government is yet to remove the CPN-M from the terrorist list even after CPN-M became largest political party of Nepal following their victory in the Constituent Assembly (CA) elections held recently.

    Powell returned to the U.S. on Friday for consultations on U.S.-Nepal relations.