"In the supreme decree, we are declaring a state of emergency in the department of Apurimac," Toledo told reporters at the Government palace, after cutting short a holiday trip for an urgent Cabinet meeting on the situation.

At least seven people were wounded in a shootout during the takeover on Saturday. The dissidents are followers of a retired Army Major, who, along with his brother, seeks to establish a nationalist indigenous movement modelled on the ancient Incan Empire."This is a military protest and we are willing to lay down our arms and surrender, when Toledo resigns from office," Antauro Humala told Radiop-rogramas Radio from the captured police station in Andahuaylas, 440 km southeast of Lima.