Lima - The Peruvian government and indigenous communities who have been demonstrating for more than two months over land rights finally started talks aimed at ending the conflict in the Andean country.

Prime Minister Yehude Simon met late Tuesday in Lima with representatives of the Amazonian Indios who have been protesting over controversial decrees on foreign investment in the Amazon region, which they say impacts their claims on land.

The Indios have been on strike for more than two months to demand the repeal of laws that give foreign investors access to the Amazon's mineral wealth and forests. The laws were enacted without any consultation with indigenous communities.

The talks were made possible after the government decided to revoke the decrees. The final move on the issue was to be made Thursday by Congress.

Simon also said that he would step down as prime minister as soon as the tension is defused, giving into demands of both the Indios and the opposition.

Given the change in the government's attitude, Indio leaders asked their supporters to end the blockades on roads, waterways and oilfields that they had kept up for weeks.

Peruvian President Alan Garcia also allowed Indio leader Alberto Pizango to leave for Nicaragua. After being charged with having caused the deadly violence, Pizango took refuge in the Nicaraguan embassy in Lima and was granted asylum by the Central American country. He left for Nicaragua on Wednesday.

For months, Garcia ignored the peaceful protests of the Indios, and indigenous protestors finally clashed with security forces on June 5 near the town of Bagua. At least 34 people were killed, including 24 police officers.

The Indios claim that more of their people were killed when police opened fire on protestors at a road blockade. The Indios also responded with violence. According to Amnesty International, at least 79 indigenous demonstrators were being detained and at least 169 were wounded in the protests.

Garcia had earlier said that the economic development of the whole country - including the Amazon - is needed to fight widespread poverty. The authorities insisted that the state, which ultimately owns the land in question, will watch out for the interests of the people involved, and also for the environmental equilibrium of the jungle areas at stake.

Garcia had signed the decrees after a free-trade agreement between the United States and Peru was inked.(dpa)