Korengal Valley, Afghanistan - Construction crews stand at the ready and millions of dollars are ripe for spending, but after years of bitter fighting the buck stops firmly at the mouth of Afghanistan's most dangerous valley.

Elsewhere in the country, the prospect of jobs and development can effectively slacken the grip of Taliban insurgents and their allies on isolated communities. In the Korengal, local chiefs claim they cannot break free, despite the rewards that beckon.

"We have fruit on the tree - but we can't eat it," a village elder lamented to government and US military officials at a recent meeting in the Valley of Death, as the troops call this scenic pocket of strife near the eastern border with Pakistan.

"We are very unhappy that construction of the road has stopped, we beg (the militants) to put down their weapons but we are unable to force them," the heavily bearded and turbaned elder said.

But the US suspects many elders support the insurgents or play both sides to their advantage, which after some four years of hostilities can only prolong the fight.

There are usually one or two clashes a day in the Korengal, shattering the picture-book tranquility with thunderous artillery, mortars and small-arms' fire, cannon bursts from Apache helicopters and the ear-splitting roar of bombs dropped by NATO jets.

Insurgent losses in the valley's 10-kilometre-long battlefield are unknown, but the US 1st Battalion, 26th Infantry Regiment lost six men killed and 19 wounded in action since deploying here in July.

Amid such ferocity, no one expects to find a panacea to the Korengal's troubles in the planned 43-kilometre asphalt road bisecting the valley and linking it with the main highway through the surrounding Kunar province.

But a bubble of entrenched resistance may be burst with improved access to the outside world, and while local loyalties are torn here, the lure of the potential benefits is strong.

"A lot of the elders grew up with the head guys fighting us now, but there are also a lot of middle-age males who are interested in commerce and development," said Lieutenant Cliff Pederson, who leads one of the platoons here.

Therein lies the contradiction that has kept it mired in violence. Everyone knows that kick-starting the Korengal's dormant timber industry with a smooth asphalt road to market would revitalize the valley.

Yet some elders still stand by their old ties with the militants and younger villagers find work as cheap trigger pullers against the US and Afghan troops.

It's a similar story across Kunar, where the insurgents can recruit raw manpower for an average daily payment of 5 dollars.

"Most of the people in the province are fighting predominantly not for ideological reasons but for a job," said Navy Commander Daniel Dwyer, who this year headed military development in the province, including the road construction that ground to a halt under fire at the Korengal.

"We feel it's more important to give jobs to the local fighting-age males to prevent them from picking up a rifle and fighting against us," the officer told US Defense Secretary Robert Gates during his visit here in September.

If a 5-dollar daily wage can keep the ranks of the resistance replenished, it may be enough to just outbid them and let economics tip the balance.

According to Dwyer, locally hired road workers will receive 10-15 per cent more as an incentive to choose peaceful employment.

For now, though, it's stalemate in the Korengal and signs of exasperation are showing in the US camp at the refusal of the locals to take a chance and accept what's on offer.

"Nothing's working," said Lieutenant Colonel Brett Jenkinson, commander of the ground forces in Kunar. "We've tried fighting them into submission and talking them down from the mountains and giving them projects. Those people don't want progress, or they'd fight for it."

Kunar Governor Sayed Wahidi is adamant that efforts to break the deadlock must not slacken.

"If we don't have a continuous dialogue they will think we've forgotten about them," he said before the meeting with the elders. "The big hope is to bring people closer to the government and start the actions planned for the valley, a community centre and the road."

He then tells his audience that their villages are poised to receive a good share of 50 million US dollars earmarked for development in the province, if they embrace the opportunity.

"If you stop fighting this money will come to you," Wahidi said. "Don't complain any more that there are no jobs, no money: it's up to you." (dpa)