President Bouteflika's first few months in office were a remarkable honeymoon.

His energetic drive for national reconciliation won him support at home and abroad. He vowed to end the political violence which has scarred the country for the last seven years - and which, by his own frank admission, has claimed 100,000 lives.

Building on a ceasefire called by one of the main Islamic opposition groups, he started releasing thousands of Muslim militants from jail and pledged to put his peace plan to a national referendum on 16 September.

The president's bold initiative served to erase the memory of his election in April. His credibility was undermined when his six rivals all withdrew, claiming the contest had been rigged.

President Bouteflika faces his sternest test

Mr Bouteflika's drive for peace has also won him plaudits abroad. A charm offensive in Western capitals has earned him support and goodwill.

Relations with Algeria's former colonial ruler, France, often prickly in the past, are now warmer than for many years.

But, after an initial lull in the violence following the April election, the killings have resumed and are posing an obvious challenge to Mr Bouteflika's peace initiative.

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In one recent attack 29 civilians had their throats slit in the western province of Bechar. As usual, officials suspect the attackers were Islamic militants.

They believe the motive is obvious - to sabotage September's referendum.

Algeria's nightmare of violence began in 1992, after the authorities cancelled elections which the main opposition party, the FIS or Islamic Salvation Front, was on the verge of winning.

The FIS was outlawed and thousands of suspected Islamists rounded up.

More extreme Islamic groups - notably the GIA, or Armed Islamic Group - launched a savage war against what they saw as an illegitimate, military-backed regime.

Pitted against the Islamists were the security forces and shadowy pro-government militias. Innocent civilians found themselves caught in the crossfire.

Extreme Islamists are not the only opponents of Mr Bouteflika's peace initiative.

Hard-line figures in the armed forces, known as "eradicateurs", oppose any concessions to the Islamists.

For the time being, the initiative remains with the president, and all the signs are that the referendum will give overwhelming support to his efforts to end the violence.

But many analysts believe a real and lasting solution is still a long way off.

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