Thousands of people living in the southern province of Sihanoukville have been fleeing the area amid growing alarm at the possible health risks from 3,000 tons of suspected toxic waste from Taiwan.

Sihanoukville's police commissioner said that around 30% of people living in the province have already left. On Monday four people were killed and 13 injured in car crashes as they fled the coastal town in heavy rain.

There have been public appeals for calm

The waste, which was found dumped earlier this month at a site 10 kilometres from the main coastal town, had been labelled as cement material.

The Taiwanese petro-chemical company, Formosa Plastics, later confirmed that it had imported the waste, which contained traces of mercury certified as non-toxic.

Deputy Prime Minister Sar Kheng said that he believed the hazard from the waste was limited. Several officials involved in the shipment have been suspended, he said.

A cleanup involving hundreds of soldiers and expected to last 10 days is to start on Wednesday.

Despite public calls for calm, the mood of anger which led to riots at the weekend leaving one person dead, has now given way to panic and alarm.

Health officials said at least two people have died and five are being treated in hospital since the waste arrived earlier this month.

Schools in the main seaside town were closed for a second day running as were many government offices.

Cambodia's Environment Minister Mok Maret, said he had appealed on local television for people to stay calm, explaining that any harmful effects from the waste would be limited to the area in which it was dumped.

However, officials in the town said that many residents had brought sacks of the waste to their homes using it to mix with cement and building materials.

Water danger

The waste was later dumped in streets and near water supplies when people realised that the material could be dangerous.

The head of the town's water supply authority said water samples had now been sent to Phnom Penh for testing.

Work is now beginning at the dump site to pack the waste into containers ready to ship it back to Taiwan.

Cambodia's acting Head of State, Prince Norodom Ranariddh, said he had been told that three million dollars may have been paid in bribes to officials to import the waste.