Arequipa,Peru, June 17: Peru's defense minister Aurelio Loret de Mola declared a state of martial law late on Sunday in the city of Arequipa, to restore civil order following three days of anti-government rioting. Peru's armed forces have been authorised to restore peace in Arequipa, the country's second largest city, some 1,000 kilometres (some 600 miles) south of the capital Lima.

Government officials said a curfew is in force from 10 pm (0300 GMT) until 5 am (1000 GMT).

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Area residents have been violently protesting the government's auction of two state-owned utility companies, arguing instead for regional ownership.

Peruvian President Alejandro Toledo on Sunday declared a state of emergency for the entire southern department of Arequipa.

The department's capital city, which carries the same name, has a population of nearly 11.5 million. Bureau Report