Amnesty International, the human rights group, said that it was the first time Chinese police had fired on protesters since the crushing of the Tiananmen Square demonstrations in 1989, when hundreds died in the heart of Beijing.

The Government placed the death toll at three. Residents put the number of dead at anywhere from two to twenty.

The violence erupted on Tuesday in the village of Dongzhou in southern Guangdong province, bordering Hong Kong.

Armed police opened fire when villagers gathered to demand more compensation after their land was seized to make way for a wind farm.

However, some farmers said the dispute began in March last year and centred on complaints about pollution from a nearby coal-fired power plant, which is still under construction but partly operational.

The Government defended the shootings, saying police opened fire after protesters with knives, spears and dynamite attacked a power plant and then turned on authorities.

But, within hours, the authorities announced that the commander who ordered his men to shoot had been detained. The commander was to blame for the deaths, the provincial government said. “The commander’s wrong actions caused deaths and injuries,” the Government said.

Such a rare and swift admission underscores the alarm such incidents cause China’s Communist Party leaders. Last year, 74,000 cases of unrest were recorded in China, according to official figures, reflecting such grievances as corruption by local officials and low pension payments.

Anxious to retain their grip on power, China’s leaders are particularly perturbed at the emergence of issues that could unite large numbers of people.

Disputes over land are among the commonest reasons for protests in rural areas, where 800 million of China’s 1.3 billion people live.

President Hu Jintao’s Government has made a priority of spreading prosperity to areas left behind by China’s 25-year-old economic boom. However, tens of millions of families still live on just a few hundred pounds a year while city dwellers are riding a wave of prosperity that is enabling them to buy cars, flats and houses.

The Government has identified the widening gap between rich and poor as one of the most urgent problems in China.

Yesterday at least 100 police with riot shields and helmets stood guard in the village. Police stopped vehicles at roadblocks, looking for local men. There was no violence, but residents could be seen arguing angrily with police officers.

Police trucks drove through the village blaring promises over loudspeakers that officials would deal with local grievances.

“Have confidence in the Government,” said the announcement in the local dialect. “This matter will be handled well.”

Government banners hung at the entrance of Dongzhou said, “Following the law is the responsibility and obligation of the people” and “Don’t listen to rumours, don’t let yourself be used.”

Another tried to placate local anger, promising: “The people’s Government will always support the people of Dongzhou.

The Government account said an initial assault by farmers on the power plant on December 5 resulted in a seven-hour suspension of operations. About 170 villagers took part in a second onslaught and police used teargas to break up the protest and arrested two people.

The villagers then formed a blockade in an attempt to free their colleagues. When darkness fell, chaos erupted and the police opened fire.

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