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* Senior military, intelligence officials accused of

inciting chaos

* Army tanks seen rolling through Khartoum around midnight

* Streets appear normal Thursday

* Sudan hit by unrest, inflation after losing the south

By Ulf Laessing and Khalid Abdelaziz

KHARTOUM, Nov 22 (Reuters) – Sudan arrested its former spy

chief and other senior military and security officers on

Thursday after foiling what officials said was a plot to incite

chaos and target leaders in this oil-producing African state.

Witnesses told Reuters they saw army tanks and armoured

vehicles moving down a main street in the centre of Khartoum

around midnight, but life in the city was normal during the day

with shops in the centre bustling with customers.

Sudan’s President Omar Hassan al-Bashir has kept up a

23-year hold on power, even as a series of uprisings troubled

the country’s poor border areas, including the conflict-torn

region of Darfur.

But Sudan has been stuck in economic crisis since the south

– the source of most of its known oil-reserves – declared

independence last year under the terms of a peace deal.

High prices for food have added to widespread public anger

over losing the south and have emboldened opposition activists

to call for protests. Analysts say the crisis has also

exacerbated divisions in the government and squeezed the

patronage system they say Bashir has relied on.

(To see a special report on Bashir’s Sudan, please click on

ID:nL3E8MD574])

Unrest over price rises and food and fuel shortages has

preceded coups in Sudan in the past.

Salah Gosh, former head of Sudan’s powerful intelligence and

security agency, was arrested with 12 o thers on suspicion of

“inciting chaos”, “targeting” some leaders and spreading rumours

about Bashir’s health, the information minister told reporters.

Bashir, 68, has undergone throat surgery twice since the

summer. Officials insist he is in good health.

“A lot of evidence was gathered showing there is a movement

aiming to incite chaos, target some leaders and undermine the

country’s stability,” the minister, Ahmed Belal Osman, said.

“The situation is now totally stable,” he added, naming

Gosh, and another arrested officer, Wad Ibrahim, a prominent

Islamist in the army.

Some Islamists inside the army and the ruling National

Congress Party have said that Bashir and other senior leaders

have abandoned the religious values of the 1989 coup and have

concentrated decision-making in the hands of a few people.

Some also feel Bashir has been too soft on South Sudan,

which temporarily wrong-footed the Sudanese army by seizing a

major oilfield during border fighting in April – a shock to many

officers.

TANKS HEADED DOWNTOWN

Harry Verhoeven, an Oxford University researcher who has

studied Sudan extensively, said the arrests’ timing suggested

the incident was connected to a conference of Sudan’s Islamic

Movement last weekend that illustrated these tensions.

The Islamic Movement is a part of Sudan’s ruling

establishment that counts many of the country’s most powerful

politicians as members.

Analysts say reform-minded members of the group were unhappy

with the new secretary-general elected at the conference.

The arrest of Gosh – who is not seen as overly close with

the Islamists – may have been a signal to the reformists that

authorities would not tolerate serious dissent, Verhoeven said.

“I think the key question is what the reformists do. Do they

form a new party? Do they stay quiet?” he added.

Officials have cited a plot but have stopped short of saying

this constituted a coup attempt.

Witnesses said they saw military vehicles on a major street

that runs alongside the city’s airport overnight.

“We saw something unusual in Khartoum … four armoured

vehicles and two tanks on Abeid Khatim Street heading in the

direction of downtown,” one witness said, asking not to be

named.

Security at the defence ministry, intelligence headquarters

and other buildings associated with military and security

authorities appeared normal, a Reuters witness in the city said.

Sudan has been plagued by political conflicts and crises for

most of its history since independence from Britain in 1956.

Decades of civil war between the north and south culminated

with South Sudan’s independence in July last year under a 2005

peace deal.

Tensions in both nations and between the two states have

been high since then. The two countries accused one another of

incursions in disputed border zones on Wednesday, a setback to

recent security and border deals.

Small demonstrations against cuts in fuel subsidies and

other austerity measures broke out across Sudan in June but

petered out after a security crackdown and the start of the

Muslim fasting month of Ramadan.

“PLOTTING LIKE BREATHING”

Gosh was once among Sudan’s most influential officials. As

chief of the National Intelligence and Security Service, he

headed what is one of the country’s most powerful institutions

alongside the army.

Bashir removed Gosh as spy chief in 2009, replacing him with

the current head Mohammed Atta al-Moula. Officials did not

explain the decision to sack Gosh at the time, but Khartoum

political circles widely speculated the former chief was

suspected of plotting against Bashir.

A leaked U.S. diplomatic cable from 2008 quoted a government

official as saying Gosh had mused about the possibility an

International Criminal Court arrest warrant for Bashir could

lead some to try to replace the president.

“Conspiracy and plotting is like breathing in Sudan,” the

cable noted.

Gosh had been appointed presidential adviser on security

affairs, but was also removed from that position last year.

Western rights groups have accused Gosh of complicity in

abuses in the country’s Darfur region, which has endured a

nearly decade-old insurgency.

But while the ICC has issued arrest warrants for Bashir and

other officials on charges of war crimes in Darfur, Gosh has

never been indicted.

The former spy chief is also described by historians and

analysts as a key interlocutor with U.S. officials when Sudan

was cooperating with the United States by providing information

on al Qaeda in the years after the Sept. 11 attacks.