KAMPALA, April 12 (Reuters) - Ugandan police opened fire with tear gas and live rounds on Thursday and at least two people were hurt as hundreds demonstrated in Kampala against plans to slash a rainforest nature reserve, a protest organiser said.

"People were demonstrating peacefully when there was a misunderstanding with the police. All of a sudden they opened fire with tear gas and live ammunition," Frank Muramuzi, chairman of a Ugandan environmental group, told Reuters by telephone.

"Everyone scattered but two people were seen lying in the road. I don't know if they were killed or injured, but they have been rushed to hospital."

Police officials could not immediately be reached for comment. Commanders had earlier approved the march, which was called to demonstrate against plans to replace thousands of hectares of Mabira Forest with sugarcane plantations.

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