Spokeswoman Zhang Qiyue made the remark in response to a question requesting comment on Nepal's King Gyanendra's announcement to dismiss the prime minister, dissolve the Cabinet and assume executive power.

Zhang said, "We've taken note of the changes in the situation in Nepal." They were Nepal's internal affairs, she said.

As a friendly neighbor, China believes Nepal can maintain domestic peace and stability and its economy will develop, which accords with the fundamental interests of Nepal and its people, Zhang said.

(Xinhua News Agency October 5, 2002)