Clashes between squatters and property-owners in a shanty-town near the Peruvian capital, Lima, have left at least four people dead and at least 10 injured.

The violence took place on Thursday night in Villa el Salvador after thousands of homeless people took over a plot of land and erected makeshift homes.

Landowners say they protested to the police, who refused to evict the squatters.

Opposition parties have accused President Alberto Fujimori of encouraging homeless people to invade property in return for their support in April's presidential election.

Dawn clashes

Witnesses said gangs of men, armed with guns, iron bars and knives fought with the squatters for control of the land in battles lasting until dawn.

The clash ended abruptly when the squatters were fired on by the shantytown dwellers, who own the land and grow crops on small plots.

"If the police do not do anything and fail to defend private property, then we will do it ourselves" said Eduardo Narrea, leader of the Landowners Association of Villa El Salvador.

Some said they had decided to pay groups of men to get rid of the squatters by force.

Homeless migrants

The arid, 125-acre plot of land resembled a refugee camp as thousands of homeless migrants built their makeshift homes last week.

Tens of thousands of Peruvians from rural areas come to Lima each year to search for work.

Many, finding nowhere to live, end up building shacks in shantytowns.

Spokesmen for the squatters in Villa el Salvador said they needed a place to live and demanded that the land be sold to them.

Battle for votes

Opposition parties accuse President Fujimori of offering the squatters plots of land in return for their vote in the upcoming presidential election.

They say many of the squatters put up banners supporting "Peru 2000", a slogan used by the ruling alliance.

Squatter Ises Sulca said they had called their township 'Peru 2000' "because we need the government to help us and with this name they are bound to do so".

President Fujimori said he condemned the violence, but said police would not take action to remove the families.