Chad government forces fought rebels in the capital N'Djamena on Thursday but President Idriss Deby said the situation in the city was under control. Residents and diplomats said a battle appeared to be raging in the northeast of the city, where the national parliament and a Libyan-run hotel complex are located. "They (the rebels) are in the city," a Reuters reporter said. "It can be heard from within the city, artillery and machinegun fire." The rebels are bent on overthrowing Deby and taking control of the landlocked central African oil producer, as well as disrupting a presidential election scheduled for May 3, but the president said the poll would go ahead. "The situation in N'Djamena is under the control of the defence and security forces," he told French radio RFI. Both the United Nations and the U.S. embassy were planning to evacuate non-essential staff, diplomats said. One resident reported seeing a column of smoke. Most people stayed indoors and there was little traffic.