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Damara resident Bertin Andjipassera told Reuters news agency that people have been fleeing their homes.
BBC: Central African Republic rebels halt advance on Bangui
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The rebels' advance started last week when they pushed past Damara, a town 75 kilometers (47 miles) to the northeast.
NPR: C. African Republic Hospitals Looted After Coup
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Damara had marked the line of control drawn by regional forces in January, following an accord signed in Libreville, the capital of neighboring Gabon.
NPR: C. African Republic Hospitals Looted After Coup
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On Friday, the rebels seized Damara, which had been the boundary line drawn up by regional forces before the January peace accord was signed.
NPR: Rebels Enter C. African Republic Capital
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The rebels pushed all the way to a town just outside Damara, 75 kilometers (47 miles) from the capital, before entering into talks with the government.
NPR: Split Appears In C. African Rebel Coalition
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On Friday it was reported that they had taken a checkpoint in the town of Damara, about an hour's drive from Bangui, where regional Fomac peacekeepers are based.
BBC: Central African Republic rebels 'enter capital Bangui'
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In just three days, they swept past Damara, marking the "red line" set up by a regional force to divide rebel-held territory from the area under government control, and advanced all the way to a checkpoint, PK12, just outside the capital.
NPR: Split Appears In C. African Rebel Coalition