Three people are reported to have been killed in renewed sectarian violence in the Moluccan islands - shortly after Indonesian President Abdurrahman Wahid visited the region to call for peace.

The official Indonesian news agency Antara said angry crowds of Muslims and Christians went on the rampage in a village on the central island of Seram, attacking people and burning hundreds of houses. Four people were seriously injured.

According to the reports, residents from the village of Hualoy, armed with sharp objects, homemade explosives and weapons, attacked the neighbouring settlement of Seriholo and burned hundreds of houses.

President Wahid, who visited the provincial capital, Ambon, on Sunday, urged Muslims and Christians to end the clashes which have killed hundreds this year.

Mr Wahid told both communities to resolve their differences or face intervention from the government.

'Respect for each other'

"People must regain respect for each other," Mr Wahid said. "This is not just a problem for this region. It is a national issue."

More than 700 people have died in fighting between the two communities which has left a trail of destruction through the Moluccan islands.

Thousands of houses have been destroyed in the violence and tens of thousands of people have fled to other Indonesian regions.

Residents have accused soldiers and police of escalating the violence by dividing along religious lines and joining in the fighting.

When he took office, Mr Wahid suggested that his vice-president, Megawati Sukarnoputri, should take on responsibility for dealing with the Moluccas.