Bolivian President Carlos Mesa signed a decree on Thursday to quell weeks of unrest over a new energy policy that indigenous groups felt fell short on state control.

Mesa, who came into power 19 months ago, called on Congress to elect a constitutional assembly to rewrite the constitution with the aim of redistributing power in favor of the poor indigenous majority.

In addition, a referendum on regional autonomy would be held on October 16, said the president.

"The country is experiencing a very critical moment, a high-risk confrontational situation and in this context we cannot wait until Tuesday," he said in a televised announcement, referring to a planned debate in Congress on constitutional reform and a referendum on regional autonomy.

"I urge this country to return to calm," the leader added.

He also called on the Roman Catholic church to sponsor a "national meeting" of politicians and social leaders to calm the unrest.

Protesters took to the streets after the parliament passed a law on May 17 to levy a 50-percent tax on foreign oil and gas companies operating in the country which boasts an estimated 48.7 trillion cubic meters of natural gas, the second-highest reserves in South America after Venezuela.

Trade unions, including the Regional Trade Union and the Bolivian Central Trade Union, and farmer, indigenous and student organizations participated in the demonstrations to push for a rewrite of the constitution and for nationalization of the naturalgas wealth.

Demonstrators also demanded the resignation of President Mesa, the closing of the congress and the trial of ex-president Gonzalo Sanchez de Lozada who resigned in October 2003.

Demonstration has turned into riots since May 24 when marchers blocked a downtown square in La Paz, where the executive and legislative departments are located, and began to smash windows inbuildings and cars in the surrounding streets.

Mesa released a statement Wednesday, calling on the demonstrators to "respect the president of the republic, the national government and people in general."

Source: Xinhua