Both sides accuse the other of violating the ceasefire
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Liberia's main rebel group says it is boycotting peace talks, accusing the chief mediator of allowing President Charles Taylor to renege on a commitment to step down.
The group - Liberians United for
Reconciliation and Democracy - demanded that mediator Mohamed Ibn Chambas leave the talks, calling him a "spokesman" for President Taylor.
An agreement reached at the talks last week gave the rebels and the government 30 days to establish an interim authority that excluded President Taylor.
Meanwhile, the BBC's Jonathan Paye-Layleh reports there has been "intense destruction" in the town of Ganta on the border with Guinea.
He says retreating rebels have set on fire almost every building in the town.
'True spirit'
The other rebel group - the Movement for Democracy in Liberia - has backed the demands for Mr Taylor to go, throwing the peace effort into further confusion.
Mr Chambas is executive secretary of the Economic Community of West African States (Ecowas), which has been trying desperately to find a solution to the Liberian conflict.
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CHARLES TAYLOR
Indicted on war crimes charges
Under UN sanctions
Former warlord
Won 1997 elections
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He did not say whether he would withdraw and urged all parties to stick with the peace process.
"It is for all of us, our duty to co-operate with each other in the true spirit of the negotiations," he told the Associated Press news agency.
"I urge them to return to the peace talks because the only option is to stay."
President Taylor said last week that he did not intend to step down before his term ends next year and may seek re-election.
Accounts frozen
The government has accused the rebels of continuing to shell Ganta from Guinean territory.
The rebels too claim they have been attacked by government forces since the ceasefire was agreed.
Monrovia residents are trying to resume normal life
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Elsewhere, the Swiss authorities have agreed to block bank accounts belonging to Charles Taylor.
This follows a request from the United Nations-backed war crimes court in Sierra Leone.
It is not known how much money is involved at this stage but he is accused of profiting from diamonds smuggled out of Sierra Leone during the 10-year civil war.
"The money may be evidence of the joint criminal enterprise that we allege Taylor, with several other indictees, conducted in Sierra Leone over a period of years," said David Crane, prosecutor of the Special Court for Sierra Leone.
The UN-backed Special Court for Sierra Leone has indicted Mr Taylor for alleged war crimes during the brutal war, which ended last year.