"We are now considering with key international partners what our longer term policy for providing assistance to Nepal should be, including assistance with a humanitarian purpose," he said, urging the king to restore democratic government.
Britain briefly recalled its ambassador to Kathmandu in protest at Gyanendra's actions, but Straw said he had now returned.
INDIA HALTS:
KATHMANDU: India has halted military aid to Nepal after King Gyanendra seized power early this month, Indian officials said on Tuesday. New Delhi, a major aid donor and key arms supplier to the Nepal army to help it fight Maoist guerrillas, has been urging the king to restore democracy, release political leaders and lift curbs on the media.
"In view of the current disturbed situation in Nepal, it is a fact that there is no military supply since February 1, 2005," Indian foreign ministry spokesman Navtej Sarna told reporters in New Delhi.
Gyanendra sacked the government, detained the chiefs of Nepal's main political parties and imposed a state of emergency on February 1 prompting criticism from around the world.
An Indian embassy official in Nepal said Indian humanitarian aid and support to infrastructure projects would not be affected.
"As of now, many aspects of our bilateral relations are being re-assessed and reviewed. But as far as military supplies are concerned, they are on hold as of now," embassy spokesman Sanjay Verma told.