The Maoist rebels, after three days of intense peace talks organized by the king, agreed to a ceasefire. Both sides compromised, but the rebels, increasingly hounded by the army, gave up the most ground. But the rebels themselves are split, and rebel leaders warned that any of their number who violated the ceasefire would be dealt with severely. Peace talks will now follow where the king and his wealthy followers will have to compromise on economic issues in return for an end to the rebellion. The monarchy is still widely popular in Nepal, but the poor economic conditions are not.