Opposing factions in the eastern Afghan town of Gardez are expected to hold more talks Monday, with the help of mediators sent by Afghanistan's interim leader, Hamid Karzai.

During a first day of meetings Sunday, the two sides agreed to a conditional cease-fire, to see if their talks can lead to a solution of the bloody factional dispute.

Fighting last week in Gardez, the capital of Paktia province, killed more than 50 people. The forces of a local warlord were battling troops loyal to a governor recently appointed by Mr. Karzai. Local tribal leaders accuse the new governor, Padshah Khan, of corruption and brutality. They are appealing to Mr. Karzai to replace him.

In the worst violence in Afghanistan since the Taleban regime was ousted in December, the governor and his armed supporters were driven out of Gardez last week. However, Mr. Khan says his supporters are ready to fight to regain control of the region.

Other skirmishes have been reported in northern Afghanistan between Uzbek General Rashid Dostam and an ethnic Tajik commander. The violence threatens Mr. Karzai's efforts to bring peace and stability to the country after 23 years of war.

Meanwhile, Iran has once again denied U.S. accusations that it helped or allowed Taleban and al-Qaida fighters to escape from Afghanistan across the Iranian border. A Foreign Ministry spokesman in Tehran (Hamid-Reza Asefi) says that Tehran has always opposed the Taleban.

U.S. Defense Secretary Donald Rumsfeld said on American television Sunday that he has no doubt some Taleban and al-Qaida fighters found refuge in Iran.

Mr. Rumsfeld says the United States has numerous reports that Iran is arming various factions inside Afghanistan, in an effort to influence and destabilize the Afghan interim government.

Some information for this report provided by AP, AFP and Reuters.

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