Armed mutiny rocks Bangladesh capital

Bangladesh border guards launched an armed mutiny on Wednesday, taking officers hostage and sparking a fierce gunbattle in the capital that left at least five people dead and 42 wounded.

Thousands of police and troops with canons and heavy arms cordoned off the headquarters of the Bangladesh Rifles (BDR) after the paramilitary border security force took up arms against their superiors over low pay.

An armed forces spokesman said the guards quickly seized control of the BDR headquarters in the capital Dhaka, home to between 3,000 to 4,000 troops, and fired at army helicopters hovering over the barracks.

After hours of gunfire and panic in the city, one of the mutineers' leaders said late Wednesday they were prepared to lay down their arms and return to barracks following an offer of a general amnesty from Bangladeshi Prime Minister Sheikh Hasina.

"We have pledged to her that we will lay down arms and go back to barracks. She has agreed to meet our demands gradually," said Tauhid, an assistant director of BDR, after talks with the prime minister.

But the mutineers said they would not lay down their arms unless troops surrounding the compound are removed.

Sporadic gunfire could still be heard into Wednesday evening and the country's home minister had to back off from entering the headquarters, an AFP reporter at the scene said.

With no surrender in sight, thousands of troops cordoned off the area housing barracks and headquarters, an army major at the scene told AFP.

"We are ready for any circumstances," he said, adding some 800 students from nearby Dhaka University dormitories had been evacuated.

Officials said tensions in the force had been simmering for months but exploded into violence when senior officers dismissed appeals for more pay, subsidised food and holidays.

At least five people have been killed, including two top army officers and 42 others wounded, police and medical officials said.

The bodies of the two senior officers were found dumped in a drain outside their barracks, police said. Both had shot wounds.

Red Crescent ambulances have been allowed to collect injured soldiers from the barracks and headquarters, and private ATN Bangla television quoting a mutineer said 10 more dead bodies were lying scattered inside the compound.

Several television channels also reported that the head of the BDR had been injured or possibly killed in the fighting, but this could not be confirmed.

It is the biggest challenge to face Sheikh Hasina since she took office less than two months ago after a landslide election victory that ended two years of army-backed government.

She appeared keen to bring a quick and peaceful end to a stand-off that has highlighted the frustrations felt by many Bangladeshis, including high food prices, a sluggish economy and rampant corruption within the country's ruling classes.

Some rebels have accused their chiefs of stealing government funds meant for soldiers.

Although there was no apparent threat of a coup, an unnamed soldier described as a participant in the mutiny told ATN Bangla the mutineers would not give up and had taken their officers hostage.

Since winning independence from Pakistan in 1971, Bangladesh has had a history of political violence, coups and counter-coups.

The grindingly poor country was run by military dictator Hussain Mohammad Ershad from 1982 to 1990, before democracy was restored in 1991.

The army again stepped in in January 2007, cancelling elections and declaring a state of emergency following months of political unrest. Democracy was restored with elections last December.