LIMA, Peru (AFP) - Police in Peru yesterday tried to retake the southeastern city of Andahuaylas, where an ultranationalist group of some 150 combat veterans have staged an uprising against the government of President Alejandro Toledo.

At least four policemen have died in Andahuayalas, after 150 heavily-armed former soldiers belonging to a group calling itself the "Etnocaceristas" seized a police station early Saturday, taking ten officers hostage and blocking roads in the city.

Lima, Peru - Supporters of ultra-nationalist retired army major Antauro Humala, stand guard in the street of a remote Andean town in Andahuaylas, 440 kilometres (275 miles) south of Lima last Saturday. President Alejandro Toledo on Saturday declared a 30-day state of emergency in a remote Andean province where a group of nationalist dissidents seized a police station and took officers captive, demanding his resignation. (Photo: AP)

Toledo, who called an emergency cabinet meeting late Saturday, said yesterday the government would act with "a firm hand" to quell the revolt.

"Democracy yes, but a firm hand" against "those who have seized government buildings, who have killed and taken hostages - this my government will not permit," Toledo told reporters after visiting police wounded in an assualt on the rebels' positions.

Around mid-afternoon, however, the "Etnocacerista" leader, retired army major Antauro Humala, said in a radio interview that the rebels would lay down their arms if the government abstains from attacking.

Humala is the brother of Ollanta Humala, an army lieutenant colonel forced into retirement three days ago. Ollanta Humala led a month-long military uprising in October 2000 against the government of Alberto Fujimori, who resigned in November 2000 amid a corruption scandal.

Three of the four police officers that died were killed after attacking a rebel position near a city bridge, Humala said earlier.

It is unclear if the fourth slain officer was a hostage. An additional seven people were wounded in intense gunbattles near the police station, sources said.

Earlier yesterday, as more than 300 heavily armed police tried to retake the city, Humala warned in an AFP interview that "there may be a very high number of dead," while accusing the government of greeting them "with hostility and attacks".

He said the band of rebels under his commend were "proud" and "motivated" in their fight against Toledo's government.

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