The Peruvian Congress has repealed two laws which would have eased restrictions on tree cutting and oil drilling in Peru's northeastern Amazonas Region. Most of the half a million Indians who live in the rain forest are strongly opposed to its destruction. Dozens of people have been killed in violent protests against the laws, including an unknown number of police officers.

The decrees were first issued by President Alan Garcia in 2007 and 2008. They ease restrictions on farming and tree clearance and allow foreign corporations to exploit the region's resources. On Friday, indigenous inhabitants of the region set up blockades on roads near the town of Bagua. Police attempted to end the blockades by thousands of Indians. Eyewitnesses said police used live ammunition and fired at the demonstrators from helicopters.

On Saturday protestors seized 38 police officers and held them as hostages. Some of the police hostages were killed in a rescue attempt. The protestors also threatened to set fire to an oil pumping station.

On Tuesday, Nicaragua granted political asylum to the leader of the protestors. Alberto Pizango fled to the Nicaraguan embassy in the Peruvian capital Lima after justice officials issued a warrant for his arrest.

The Peruvian labour federation, the General Confederation of Workers of Peru, has called for a nationwide strike. The labour federation says it will hold a protest march to call for an end to the "arrogant, intolerant, overbearing and discriminatory attitude of the government towards the Amazon communities".

Around 3,000 indigenous protestors are still blockading the road. They say they will remain until the laws have definitively been repealed. President Garcia has 15 days to sign the suspension order or return it to Congress.