May 29 (Bloomberg) -- Nepalese lawmakers voted to abolish the nation's 240-year-old monarchy, concluding a more than decade-long struggle by communist former rebels to install a republic in the Himalayan country.

Members of the Constituent Assembly cheered and applauded as the motion to proclaim a republic was backed by 560 votes to 4 late yesterday, the United Nations Mission in Nepal said.

The royal flag was lowered at the Narayanhiti palace in the capital, Kathmandu, today and replaced by the national flag, Ramesh Nath Pandey, Nepal's former foreign minister, said by telephone. ``The king has been given 15 days to vacate the palace,'' he added.

King Gyanendra's security can't be guaranteed if he refuses to leave the palace and live as a ``common citizen,'' the Communist Party of Nepal (Maoist), which fought a 10-year insurgency before disarming under a November 2006 peace accord, has said.

The accord saw the Maoists send their 23,500 fighters to camps under UN supervision and join an interim government. They won the most seats in last month's elections and plan to form a coalition government.

``My dream has come true,'' Nepal's interim Prime Minister Girija Prasad Koirala told lawmakers as the assembly met for the first time, according to the UN. ``Nepal is entering a new era by overcoming all the difficulties and we have to maintain unity and collaboration between the parties.''

`Necessary Measures'

The Constituent Assembly has directed the government to ``take necessary measures'' to vacate the king from the palace in 15 days, Jhala Nath Khanal, general secretary of the Communist Party of Nepal (Unified Marxist Leninist) said in an interview from Kathmandu. ``I hope he has made up his mind to do so.''

Nepal's three biggest parties, holding 433 seats in the 601- member parliament, and four other smaller parties agreed a day ago to replace the monarchy with a ceremonial president, with most authority concentrated in the prime minister's office, Khanal said. ``The Maoists will lead the coalition government as they are the single largest party. The powers or the rights for the president are yet to be decided. Discussions are on.''

Talks are also going on amongst the political parties to choose a candidate for president and prime minister, Khanal said. ``I do not think the president and prime minister will be from the same party. The method for electing the president has also to be agreed upon by the parties. The process will be completed within two weeks.''

Rewriting Constitution

A drafting committee is planned to help the lawmakers start rewriting the constitution, Khanal said. ``The whole process has to be completed in two years.''

Gyanendra, the last king in the Shah dynasty, held consultations with aides before yesterday's vote, Nepalnews.com said. He hasn't publicly commented on his plans.

The king lost most of his powers in 2006 when he was forced by nationwide strikes to end more than a year of absolute rule and allow the return of a civilian government.

An interim administration said he must pay taxes, place the army under civilian control and remove his image from the 500- rupee note, replacing it with Mount Everest.

The dynasty began in 1768 when King Prithivi Narayan Shah unified the country that was divided into principalities. He took control of Kathmandu city and drove the Malla rulers from the surrounding valley.

Reincarnated Gods

Many Nepalese believed the Shah kings, who created the landlocked kingdom between India and China, were reincarnated Hindu gods. About 80 percent of Nepal's population of 26.4 million people is Hindu.

Gyanendra became king in June 2001, after his brother Birendra and close relatives were killed by Crown Prince Dipendra, who then shot himself.

The Maoists won 220 seats in the April 10 ballot. Nepali Congress, the nation's oldest political party, won 110 seats, while the CPN (UML) secured 103 and the Madhesi Janadhikar Forum, representing the Terai region bordering India, won 52.

Maoist leader Prachanda says he wants all parties that won seats, including ethnic groups, to join a ``consensus government.''

More than 13,000 people were killed in the civil war. Nepal is among the world's poorest countries, according to the U.S. government. One-third of its citizens live below the poverty line and per capita gross domestic product is about $1,100.

To contact the reporters on this story: Michael Heath in Sydney at mheath1@bloomberg.net; Jay Shankar in Bangalore at jshankar1@bloomberg.net.

Last Updated: May 29, 2008 05:31 EDT