Ethiopian snipers stood by as hundreds of Somalis gathered at the former defence headquarters where the Ethiopians, who are protecting the interim government, are staying.

The soldiers said they bought the 40 bags of cereal with their own money, and distributed it to hundreds of hungry residents -- already struggling with inflation and local traders' rejection of old Somali notes for food purchases.

"This is unprecedented," resident Abdifatah Abdikadir told Reuters. "Ethiopian troops were only known to shoot people. This act of goodwill is the talk of the town. Everyone is wondering what message they are trying pass."

Many Somalis resent the presence of the soldiers from Ethiopia, an ancient rival of Somalia, despite the fact the interim government invited them in to help take control of the capital Mogadishu.

The Ethiopians have also developed a reputation for ruthlessness in quelling violence in one of the world's most dangerous and heavily-armed cities.

HAPPY BUT CAUTIOUS

Awrala Abdi, an old Somali woman who got some of the food, was happy but cautious:

"We don't know if we will eat this food in peace. Islamist insurgents will not be impressed by this gesture. They might attack the Ethiopians who live across from us and we might die."

Meanwhile, in the southern port city of Kismayu, a woman died and two men were seriously wounded when a guard opened fire on refugees trying to loot food aid, residents said.

The government and their Ethiopian allies are facing a year-old Islamist-led insurgency in the bombed-out Somali capital that has already claimed nearly 7,000 lives and uprooted tens of thousands.

Somalia plunged into anarchy in 1991 after former dictator Mohamed Siad Barre was ousted by clan militias. The interim government -- formed in 2004 -- is struggling to assert its authority.