Striking teachers rejected a proposal to allow police back in this embattled colonial city and gunfire erupted when leftist protesters tried to seize a government building, dimming hopes for a quick resolution to five months of turmoil. The teachers and leftists have taken over large parts of Oaxaca and driven police out of much of downtown, scaring away tourists and costing businesses millions of dollars in lost revenue. The national government had proposed allowing police to resume patrols under federal command, trying to ease protesters’ fear of reprisals by state officials. Full Story
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