China on Tuesday disputed a report that it had interfered in Nepal's internal affairs and caused political upheaval there.

The report "is sheer unfounded rumor," Foreign Ministry spokesman Ma Zhaoxu told a regular press conference. "The Chinese government always adheres to the principle of non-interference in the internal affairs of other countries."

Ma said that China, as a friendly neighbor of Nepal, sincerely hoped all parties in Nepal would work together for peace, political stability and economic development.

Nepali Prime Minister Pushpa Kamal Dahal, also chairman of the Unified Communist Party of Nepal (Maoist) (UCPN-M), resigned on May 4 after President Ram Baran Yadav overruled his move to sack Chief of Army Staff Gen. Rookmangud Katawal for alleged insubordination.

The Times of India reported on May 9: "While India was inviting popular opprobrium in Nepal trying to prevent Maoist Prime Minister Prachanda from sacking the army chief, China at the same time sent messages to Prachanda pledging support for doing just the opposite."

The article also said that "according to sources monitoring events in Nepal during those crucial days, China reportedly told Prachanda to stick to his guns and they would support him. "

(Xinhua News Agency May 12, 2009)