The State Department is calling for more international observers to be allowed into court.

On the first day of the trial on Monday, the presiding judges refused to allow observer status to some foreign diplomats and civil rights representatives, including a US embassy representative.

BBC Asia Correspondent Matt Frei: After this trial Malaysia will never be the same again

US State Department spokesman James Rubin said: "We believe that given the enormous interest in this trial, it is in Malaysia's interest to follow the policy announced by the high court and allow spectators to observe the trial."

The White House said President Clinton would not have separate talks with the Prime Minister of Malaysia, Mahathir Mohammed, at an economic summit in the Malaysian capital, Kuala Lumpur, next week.

Anwar upbeat

Anwar says he was beaten shortly after his arrest

Appearing in court on the first day of his trial on charges of corruption, Mr Anwar appeared in good spirits and told reporters he was "in good health and expecting a good trial".

Mr Anwar has pleaded not guilty to the initial four charges of corruption, related to his alleged illicit homosexual relationships.

He also faces another six of corruption and of sodomy, which is illegal in Malaysia.

The run-up to the trial has provoked unrest and demands for political reform on a scale not seen in the country for many years. It has also attracted strong international interest.

Riot police and paramilitary troops were in position around the high court and although a crowd of Mr Anwar's supporters gathered nearby, there was no trouble.

Observers 'insult to the court'

The judge, Augustine Paul, said allowing official observers would be an "insult to the court" and give the impression "it may not be dispensing justice".

The case has provoked widespread anti-government protests

"The presence of these people would amount to interference in the powers and functions conferred on me by the constitution," the judge told the packed Kuala Lumpur courtroom.

The judge said whilst there would be no official observers, representatives of various monitoring groups were permitted to observe the trial from the public gallery.

But there are a limited number of seats in the gallery and several diplomats are reported to be considering lodging a complaint with the Malaysian authorities.

'Critical test'

Amnesty International lawyer Mark Daley: "There seems to be a use of these laws to stifle dissent"

Mr Anwar has said he is the victim of a high-level political conspiracy and says he was beaten unconscious by police shortly after his arrest.

Human Rights group Amnesty International has described the trial as a "critical test for human rights in Malaysia".

BBC South East Asia Correspondent Simon Ingram: A difficult first day for the defence

The BBC's correspondent in Kuala Lumpur, Simon Ingram, says many observers regard the case as a political show trial despite government assurances to the contrary.