"We pushed back the rebels from the Freeport area to Duala, which is about a mile (1.6 kilometres) away," Chea said by telephone from Monrovia.

"We began an operation at 2:00 am (0200 GMT) this morning. The process is still going on. Our determination is to try and get the aggressors out today so that they cannot attack the city centre."

Chea said 37 civilians had died in heavy fighting that has raged for two days in the capital, after government and rebel sides vowed to pursue a full-fledged battle to defeat one other.

"These guys mounted 81 mm mortar guns in Bushrod Island and started firing at random. Shells landed in the city centre and near the American embassy. At least 37 civilians died in downtown areas. I have seen the bodies," he said.

Bushrod Island is separated from the city centre by a narrow strip of water.

"But by the close of day," the defence minister said, "we will push them to a point so that the city centre is out of reach," he said.

Chea said he feared the toll from the renewed fighting "will cross 300."

President Charles Taylor, who currently controls only one-fifth of Liberia, is facing his worst challenge in a four-year rebel war.

WAR.WIRE