Fresh protests in Bolivian city

Many of the protesters are indigenous Bolivians

Protests demanding the nationalisation of Bolivia's energy industry have continued in the political capital La Paz despite efforts to end the crisis.

Politicians have agreed a consensus is needed to reconcile protesters' demands with those of the resource-rich provinces that want more autonomy.

A BBC correspondent in Bolivia says President Carlos Mesa's government has virtually ceased to function.

Indigenous Bolivian protesters have set up roadblocks in and near La Paz.

Transport services have been shut down and key roads, such as the one to the international airport, have been blocked.

Schools have been closed and reports say many streets have remained empty.

Autonomy objections

The government has rejected calls for international mediation to ease the crisis.

"The difficulties that the country faces will be solved by the Bolivian people within the framework of its institutions and the democratic mechanisms," the foreign ministry said.

A Congress session called to discuss the crisis had to be postponed on Wednesday because of disagreements among lawmakers.

Congress was due to address the issue of autonomy, a key demand of Bolivia's wealthier eastern and southern provinces which are home to most of the country's oil and gas.

The protesters, mainly from the impoverished highlands, want to stop the Congress granting autonomy to the wealthier eastern and southern provinces.

Precedent

They are also demanding the nationalisation of the energy industry, saying a law which increases taxes on foreign gas investors does not exert enough control over the country's resources.

Farmers are demanding a new constitution and more influence

President Mesa has said the gas law is too punishing for the multinationals that have invested billions of dollars in Bolivia's gas fields.

A similar dispute led to the overthrowing of Mr Mesa's predecessor, Gonzalo Sanchez de Lozada, in October 2003.

The president has vowed to remain in office for his full term, despite frequent political crises.

He is backed by the armed forces, which last week sacked two officers after they claimed to represent a new nationalist movement in the military.