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Bulldozers razed the barricades near an anti-Saleh stronghold. Meanwhile anti-government protests continue in Sanaa, demanding peace and stability for the torn country.
Military positions separating Yemen's warring forces in central Sanaa were dismantled on Thursday.
It's a show of faith by both sides that they want to halt nearly a year of fighting to topple the president.
Bulldozers crashed through the walls of sandbags fortifying the fighters' positions on a main street in Hasaba, a flashpoint area where tribal leader Sadeq al-Ahmar's compound is located.
It's the site of fighting between al-Ahmar and outgoing President Ali Abdullah Saleh's forces, including units led by Saleh's son.
[Mohamed Naser Ahmed, Yemen Defense Minister]:
"We are happy about what is happening. This is the second day work takes place in the Hasaba area. We thank all those involved, including citizens, tribal leaders, military forces and security forces, for their cooperation. We are cooperating for the good of the country, and I wish all involved success."
Residents of the area say dismantling the barriers is not enough.
[Areef Al Ansi, Hasaba Resident]:
"What we need now is compensation, because this whole area has been badly affected over the past 11 months. We have nothing, we have no power or water, the roads have been cut off; the whole area is suffering."
Mohamed Motair, another resident, sums up their demands:
[Mohamed Motair, Hasaba Resident]:
"Our main demand now is security and stability, security and stability."
Separating the country's many warring forces is central to a plan brokered by Yemen's wealthier neighbors, to ease Saleh from power and avoid civil war that they fear could give al Qaeda a foothold in Yemen.