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More than 300 people have died in recent fighting between Angolan government forces and the former rebel movement, National Union for the Total Independence of Angola (UNITA), in the capital Luanda, the Portuguese news agency Lusa reported.

The victims included two members of the United Nations peacekeeping forces in Angola, who were shot by UNITA forces as they drove through Luanda in a jeep Saturday, Lusa quoted a military source as saying.

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UNITA has set up a new headquarters in Angola's second city of Huambo, and over the last two weeks its forces have seized control of much of southern and central Angola.

The fighting follows UNITA's rejection of its defeat in last month's UN-supervised elections. UNITA signed a peace agreement with the ruling Popular Movement for the Liberation of Angola in May 1991, and the cease-fire held until last month's elections.

Meanwhile, South African President Frederik de Klerk appealed to UNITA leader Jonas Savimbi yesterday to declare a cease-fire and hold peace talks.

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