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KATHMANDU, Nepal (CNN) -- A small group of pro-democracy protesters have returned to the streets of Nepal's capital, one day after police killed three when they opened fire on a crowd.

A shoot-on-sight curfew went back into effect on Friday after security forces prevented thousands of protesters from storming the city's center on Thursday.

People have been warned to stay indoors between 9 a.m. and 8 p.m. (0315-1415 GMT) or risk being shot.

Kathmandu residents rushed to buy food and supplies before it began, but staples like milk were in short supply.

Thursday's rally was the culmination of more than two weeks of protests against King Gyanendra's rule, which his opponents say is unconstitutional and are demanding he step down from power.

Police, wearing full body armor and carrying shields, estimated there were as many as 115,000 demonstrators surrounding the capital on Thursday, shouting slogans and chafing at the restrictions.

Police were ordered to shoot anyone trying to enter the capital.

The center of Kathmandu was in "complete lockdown" during the protests, CNN's Dan Rivers reported, a virtual ghost town.

But it was a tense scene just outside the city where police fired on pro-democracy activists in an effort to keep them out of Kathmandu.

Three protesters were killed and at least 100 others injured in the clash, according to police sources.

"We've seen bullets on the ground and blood on the streets," said Rivers, who was being pelted with stones during his live report.

The protests, now entering their third week, have led to 13 deaths.

The United States has urged both sides to "exercise restraint," and restated its call for the king "to return democratic powers back to the government," State Department spokesman Sean McCormack said Thursday.

"The decisions and the immediate fate of democracy in Nepal, and certainly the immediate future course of Nepal, rests squarely with the king," he said.

Ian Martin, from the Kathmandu office of the U.N. High Commissioner for Refugees, called it the worst government crackdown since the king seized power last year.

The restrictions on movement were making it difficult for UNHCR and other civil rights groups and journalists from adequately monitoring the protests, Martin said, adding he was required to use a police escort.

Thursday's clashes came hours after Indian diplomats met with the king in an attempt to persuade him to loosen his grip on power.

Indian Foreign Secretary Shyam Saran and India's special envoy, Karan Singh, hand-delivered a letter to King Gyanendra during a meeting at Narayanhity Palace, and relayed a message from Indian Prime Minister Manmohan Singh.

Karan Singh said "the ball is in his court now," referring to Nepal's king.

"I wouldn't like to pre-empt what he may or what he may not do, but we have very clearly expressed our views and our concerns, and we are hopeful that the upshot will be positive," the envoy said.

Saran met Wednesday with Nepal's army chief, Gen. Pyar Jung Thapa, who is considered the real power behind the throne.

India, the world's largest democracy, shares a long border with Nepal and the two countries have close diplomatic and economic ties.

While Martin urged the U.N. and the international community to insist Nepal's security forces "exercise restraint" on the protesters, Nepali Information Minister Shirish Rana defended the security measures.

"We cannot afford a large unmanageable group of people entering the city that can be violent," he said. According to Rana, protesters are free to demonstrate as long as they stay outside the capital.

Government officials said Maoist "terrorists" were among the protesters, and they blamed them for helping to incite the discontent.

The Maoist rebels joined seven major political parties in calling for the general strike and protests on April 6. They vow to continue until the king leaves.

The Maoist rebel insurgency that began in 1996 has killed at least 13,000 people. The king justified his takeover of the government by accusing it of failing to control the rebels who sought to set up a communist regime.

-- CNN Senior International Correspondent Satinder Bindra and Correspondent Dan Rivers contributed to this report

Copyright 2006 CNN. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report.

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