Battle rages in Mogadishu, at least 35 dead

MOGADISHU, May 9 (Reuters) The latest flare-up in fighting between Islamic militia and a self-styled ''anti-terrorism'' alliance of warlords in Somalia's capital Mogadishu has killed at least 35 people, sources on both sides said today.

Fighting, which many believe is being fuelled by US support for the warlords, continued for a third day on Tuesday in the run-down Siisii area of the lawless coastal city.

''By yesterday, 35 people have died from both sides, including civilians, and over 70 are wounded,'' Ali Nur, an alliance militia member, told Reuters by telephone, adding that he was on his way to the battle zone.

The Horn of Africa nation of about 10 million people has been a battleground for feuding militia groups since the toppling of former dictator Mohamed Siad Barre in 1991.

But this year's fighting in Mogadishu, a city awash with assault rifles and heavier hardware, has been the worst for years. Two battles in February and March killed some 90 people.

An Islamic militia leader, Siyad Mohamed, confirmed fighting had started again today morning. ''We have lost at least four today on our side, and three yesterday,'' he said by phone.

The violence is a setback to plans by an interim Somali government -- the 14th attempt to restore central rule in 15 years -- to move from its provincial base Baidoa to the capital.

It is also impeding relief efforts in a nation where nearly 2 million people rely on emergency food aid. Around Mogadishu, thousands of internal refugees live in squalor in the war-scarred shells of former government buildings.

US MONEY? Alliance spokesman Hussein Gutale Rage said the fighting could get worse. ''There is more intense fighting today ... If they (Islamic militia) do not cease fire by today then other coalition members who had not taken part in the battle will join in to help wipe them out,'' he said.

''The real battle starts now when the big guns join in.'' Fighters on the Islamic militia side are linked to Mogadishu's powerful sharia courts and funded by local businessmen. Coalition leaders say they include some al Qaeda-trained fighters.

Washington has long viewed mainly Muslim Somalia as a potential haven for Islamic militants, and it is thought by many both inside and outside the nation to be sending money to the Mogadishu warlords as part of its counter-terrorism strategy.

Even Somalia's interim President Abdullahi Yusuf said last week Washington was backing the warlords, whose new coalition is called ''Alliance for the Restoration of Peace and Counter-Terrorism.'' The alliance has denied receiving US funding. US officials have mainly avoided comment.

Western and African diplomats believe the United States is involved, but had different views on which side would emerge victorious in the battle to control Mogadishu.

''It's the Americans who are behind all this, it's known everywhere even if they continue denying,'' said an African diplomat involved with peace efforts in Somalia. ''I see the coalition losing this battle because they lack public support.'' A Western diplomat, who tracks Somalia from Kenya, said he did not see any clear winner in Mogadishu.

''Although the alliance has lost the last two battles they are still there,'' he said, referring to the Islamic militia's successful capture of an airport and a port earlier in the year.

REUTERS OM RN1505