Ecuadoran troops surround Indian protesters; attack predicted

Observers said they believed an attack by President Gustavo Noboa's government was imminent. Ecuador's interior and defence ministers asked the Indians in television and radio broadcasts to end their protests against government austerity measures. The protest have included blockades of streets and occupations of cities.

The ministers also warned the protesters that the military can break up unauthorized demonstrations and clear public and private buildings in which political gatherings are taking place.

The state of emergency, which will continue indefinitely, repealed some rights and constitutionally guaranteed freedoms and put the military on alert. It was declared after the National Indian Federation did not show up for talks with the government Friday. Federation leaders did not give a reason for missing the meeting.

The group is demanding the repeal of price increases ordered in December for gas, petrol and transportation - hikes the government has said are non-negotiable because they are needed to cut the national budget deficit.

The protesters also want the government to freeze all prices for five years, break off negotiations with the International Monetary Fund and rescind last year's decision to replace the national currency, the sucre, with the U.S. dollar.

Indian protests a year ago forced out Noboa's predecessor, president Jamil Mahuad, and then-vice president Noboa was sworn in the same night. Then, Indians were joined by a group of young military officers.

Ecuador's economic situation did not improve with the change in government, however. The sucre dove in value, and the dollar was adopted as Ecuador's currency. But the use of a foreign currency that the government does not issue has forced it to enact strict budget discipline.

(klei/dpa)