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Anti-government protests have spread in Peru,
with the south of the country paralysed by a
general strike in protest over plans to privatise
two regional electricity companies.
In a separate protest, public transport workers
in the capital Lima are holding a two-day strike
to protest against government moves to
impose an insurance scheme.
The general strike in
the south began on
Wednesday, as
protests entered their
sixth day in Peru's
second city, Arequipa,
and spread to six
other cities.
On Wednesday
afternoon, the
government
announced the
temporary suspension
of the sale until a
court had ruled whether it was valid.
Facing what correspondents say is his worse
crisis since coming to power last July,
President Alejandro Toledo has also cancelled a
scheduled trip to Nicaragua and the US.
Violence feared
It was President Toledo's announcement that
he planned to sell off two regional electricity
companies around Arequipa - about 1,000
kilometres (600 miles) south of Lima - that
triggered the protests last week.
The protests in
Arequipa turned to
riots, leaving one
person dead and over
100 injured.
The government
declared a state of
emergency on Sunday
and sent hundreds of
additional troops to
the area to quell the
unrest.
Reports say the
violence has
diminished, but a general strike has spread
across the region bringing it to a halt.
Shops and schools are closed and there is no
transport. Many tourists are reported to be
stranded in the region, while many others have
been unable to reach the country's main
tourist attraction, the Inca citadel of Machu
Picchu.
The trouble has prompted the Chilean
authorities to seal off the border, and
correspondents say the situation could turn
violent again.
And, the US State Department has issued a
travel warning for Arequipa.
Popularity loss
The protesters in the south accuse Mr Toledo
of breaking an election promise not to privatise
public utilities.
The president says the privatisation will benefit
the community, bringing jobs and investment.
But past privatisations have left bitter
memories. Former President Albert Fujimori -
ousted in a corruption scandal - raised about
$9bn by selling state firms in the 1990, but
much of that money appears to have been
squandered.
Mr Toledo's approval ratings are currently
down to around 20% according to recent polls,
with many Peruvians accusing him of failing to
deliver.
Mr Toledo acknowledges that much remains to
be done, but says he received a country
"devastated" by recession.
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