Without this progress ... there was a real question mark over the survival of basic social services and law and order in the Solomon Islands as a whole

New Zealand Foreign Minister Phil Goff

The two militia groups - the Isatabu Freedom Movement (IFM) and the Malaita Eagle Force (MEF) - say they will seek peace monitors from Australia, New Zealand and other Pacific countries to ensure an end to the fighting.

The MEF had wanted local peace monitors but the IFM called for the deployment of international observers.

"The parties to this agreement hereby declare that they renounce, deplore and do solemnly give up violence ... and confirm their respect for human rights and rule of the law," said the accord, signed by Solomon Island militia leaders and by national and provincial government leaders.

Looting

Violence flared in June after a failed coup attempt led to widespread lawlessness and looting.

The unrest was sparked by tensions between Isatabu people from the main Guadalcanal island and migrants from neighbouring Malaita.

The conflict erupted in 1998, when the indigenous Isatabu community tried to evict Malaitans from Guadalcanal, angry at the economic dominance being achieved by the migrants.

The violence forced at least 20,000 Malaitans from their homes and off Guadalcanal.

A spokesman for the IFM, Tarcisius Tara Kabutaulaka, said the land issue was something that had to be looked at.

"We sympathise with the fact that a lot of people have been evacuated from the land they acquired in Guadalcanal, but whether the land was acquired legally is something that needs to be assessed," he said.

The Isatabu have expelled 20,000 Malaitans

Mr Kabutaulaka added: "If we achieve disarmament that would be huge achievement."

In June the Malaita Eagles took their grievances onto the streets of the capital, Honiara, staging an attempted coup which led to the resignation of the then prime minister, Bartholomew Ulufa'alu.

IFM representative Ezekial Alebua said around $100m was needed for compensation, along with millions of extra dollars to rebuild the economy.

"The economy is sinking - it's almost a wreck now," he said.

New Zealand Foreign Minister Phil Goff said on Sunday that the Solomons Islands would need help from his country and Australia if peace was to take hold.

"I think it will be important to ensure that we keep this momentum rolling," Mr Goff added.

"Without this progress, quite frankly Honiara as a city would have closed down in the near future, and there was a real question mark over the survival of basic social services and law and order in the Solomon Islands as a whole."