By Fernanda Ezabella

SAO PAULO, Haiti (Reuters): UN peacekeeping forces have established military control in Haiti and paved the way for reconstruction but have yet to contain the supply of arms to slum gangs, the Brazilian force commander said.

UN troops have secured the capital Port-au-Prince as well as the interior of Haiti, said General Carlos Alberto dos Santos Cruz, commander of the UN peacekeeping mission.

Improved public security would now allow the government and aid groups to begin economic and social development projects, he told Reuters by telephone from Port-au-Prince.

"We really have control today, we can move freely through 100 percent of the capital and the interior of the country."

Santos Cruz added that there are now "conditions to access (communities) ... to develop projects to normalize life."

His comments appear to contrast with reports by officials and residents late last month that heavily armed gangs, expelled from dangerous slums by the peacekeepers, had established new bases in provincial areas.

There also appears to have been no let up in a prolonged wave of kidnappings and rapes in the Caribbean island.

UN peacekeepers were sent to Haiti, the hemisphere's poorest country, shortly after then-President Jean-Bertrand Aristide was ousted in a rebellion in February 2004.

They have stepped up operations against slum gangs in recent weeks.

The UN Security Council voted two weeks ago to extend the peacekeeping mission for eight months. The UN force has 6,800 troops and nearly 2,000 police.

Two Haitian activists in Brazil this week called for the troops' withdrawal and accused them of human rights abuses.

In a report they say numerous Haitian women have been raped by UN troops over the past six months. They also say recent confrontations with militants have intensified a climate of war.

General Santos Cruz played down reports of rebels in Haiti's interior.

"It's still a rumor. Small cities usually don't tolerate those types of criminals," Santos Cruz said.

He also denied human rights violations, saying that Haitians were "satisfied and friendly" despite confrontations between armed gangs and UN troops.

The force's biggest challenge was to arrest militants in coordination with local police and to cut off their supply of arms from abroad.

"The control of ships is still very inadequate, the coast guard needs to be strengthened. There is a very long, accessible coast line here," Santos Cruz said.

The force is unlikely to meet such challenges in the short-term, Cruz said, adding he expects its mission to be extended beyond October.

Long-term projects to strengthen Haiti's institutions include judicial reform and additional training and equipment for local police.

Haiti is considered a test-case for Brazil in establishing regional leadership and showcasing international diplomatic clout as it seeks a seat in the UN Security Council.