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Tuesday, 27 March, 2001, 11:21 GMT 12:21 UK
Paraguay in agreement with farmers

The Paraguayan government has reached a deal with farmers' groups, who led a march in the capital, Asuncion, on Monday demanding the resignation of President Luis Gonzalez Macchi.

The Interior Minister, Julio Cesar Fanego, said after five hours of talks the two parties reached an agreement, but he gave no further details.

The National Police Chief, Blas Chamorro, said the protestors would be leaving the capital and making their way home during the night.

Earlier, the protest organisers had threatened to stay in the capital and keep up their demonstrations until their demands for agricultural reforms were met. President Macchi is under pressure to step down following a corruption scandal involving his government, and over criticism of his handling of the economy.

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