Earlier, Kampala police chief Edward Ocwom said a man of Asian origin had died after being beaten by angry demonstrators, who also targeted other ethnic Asian people.

"I have just confirmed that one Indian who was beaten by rioters has just died at Mulago hospital," he told AFP.

Police fired live ammunition and tear gas into the air to disperse the crowd, who responded by hurling stones.

Later, military police moved in, beating the demonstrators to break up the crowds, who had also attacked motorists of Asian origin and burnt a truck that was carrying sugar.

The demonstrators were rallying against the plan to clear around 7,000 of the 30,000 hectares (75,000 acres) in Mabira Forest Reserve east of Kampala.

The government plans to seek parliamentary approval before handing over the forest land to Indian-owned Mehta Group for sugar cane farming, a move that has angered conservationists and opposion lawmakers.

They have warned that further encroachment of the forest would threaten up to 312 species of trees, 287 species of bird and 199 of butterflies.

In December, Norwegian environmentalist Olav Bjella quit as National Forestry Authority chief over the issue.

Officers had to evacuate about 100 people of Asian origin who had sought safety in a temple, said Ugandan police chief Major General Kale Kaihura.

"We have evacuated some people from an Indian temple because some (protestors) tried to target them," he told AFP.

They were taken to a city police station.

"We have an obligation to protect people and their property, whether foreigners or poor. We moved in quickly and calmed the situation after we got information that they wanted to burn the temple," he added.

Visibily shaken, members of the rescued group described how several people had been injured in riots that had forced businesses to shut down.

"People started throwing stones at us and we hid in the temple ... until police came and evacuated us from the place," said Rajesh Patel, a trader.

"This is very bad because they are beating innocent people."

Some protestors carried anti-Indian and anti-government placards. "All Indians should go back to Bombay," read one. Others read: "(President Yoweri) Museveni is trying to rob us", and "We are tired of Indians".

The protestors also chanted slogans in praise of former dictator Idi Amin, who expelled around 50,000 Asian merchants merchants from Uganda and confiscated their properties in 1972.

Amin, whose 1971-1979 rule was marked by atrocities, was finally ousted and died in exile in Saudi Arabia in 2003. Although thousands of Asian merchants returned, native handle them with suspicion owing to their domination of local business.

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