(Adds attack in Mogadishu) By Daniel Wallis NAIROBI, Aug 19 (Reuters) - Somalia's government has formally signed a peace deal with some opposition figures, U.N. officials said on Tuesday, but the pact initialled in June has been rejected by hardliners and done little to quell violence. More than 8,000 civilians have been killed and 1 million uprooted in fighting since early last year pitting President Abdullahi Yusuf's interim administration and allied Ethiopian forces against Islamist rebels. His government and a faction of the opposition initialled a tentative peace agreement on June 9 at U.N.-led talks in Djibouti, and then formally signed it late on Monday. "The parties agreed to continue the political dialogue between themselves and refrain from making inflammatory statements," the United Nations said in a statement. "(They) strongly condemn the perpetrators as well as those who mastermind and fund violence which targets innocent people, including killings, indiscriminate shelling, looting, raping and acts of piracy." The Djibouti Agreement seeks the replacement of Ethiopian troops supporting the transitional government with U.N. peacekeepers, who would also take over the duties of a small, ill-funded African Union force. But disagreement over the discussions split the Eritrea-based opposition Alliance for the Re-Liberation of Somalia (ARS) in two, with hardline exiles in Asmara joining the insurgents in denouncing the ARS officials who took part. Like previous rounds of talks -- including a six-week peace conference last year in rubble-strewn Mogadishu -- the negotiations have done little to reduce bloodshed on the ground. At least five people were killed on Tuesday when Islamist fighters attacked a military base near a busy Mogadishu market. "Three mortar shells landed in Bakara market and hit traders and customers," Mohamud Hussein, a mini-bus driver said. He counted 17 wounded. Another resident, Nimco Sara, said fighting between the insurgents and the allied government and Ethiopian troops killed two fighters and lasted about 15 minutes. ETHIOPIAN DENIALS In some of the worst violence for weeks, city residents said nearly 50 people died last Friday when Ethiopian soldiers and government troops opened fire on civilians in retaliation after two roadside bombs ripped through their convoys. This was denied by the Ethiopian foreign ministry. "Ethiopia's military conduct follows international rules of engagement and we do not attack civilians," Wahade Belay, a ministry spokesman, told Reuters. He said an independent investigation by Somali officials found the only deaths had been caused by bombs planted by the rebel al Shabaab militia, which Washington says is a terrorist group with close ties to Osama bin Laden's al Qaeda. Near-daily grenade attacks, gun battles and assassinations have driven many civilians from their homes, particularly in the capital, and their plight has been compounded by record food prices, hyper-inflation and drought. The U.N. statement said both sides in Djibouti were united on the urgent need to address the crisis. "The parties reaffirmed their strong determination to help ensure unhindered humanitarian access and assistance," it added. The number of Somalis desperately needing food aid could reach 3.5 million people later this year -- nearly half the population, but the international donors have only funded about a third of a $637 million aid appeal, according to the U.N. (Additional reporting by Tsegaye Tadesse in Addis Ababa; Writing by Daniel Wallis; Editing by MacDonald Dzirutwe and Matthew Tostevin)
Israeli police officers stand guard as Ethiopian immigrants protest outside the office of Israel's Prime Minister Ehud Olmert in Jerusalem August 17, 2008. Some 1,000 Israelis of Ethiopian descent took part ...
