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CONAKRY (Reuters) - At least one person died in two days of clashes between Christians and Muslims in eastern Guinea and dozens more were injured, but the violence had mostly subsided by Sunday, witnesses and officials said.

Residents of Nzerekore reported widespread gunfire in the town on Saturday, a day after several people were hurt in stone-throwing between residents of the town in the far east of the world's top bauxite exporter.

The trouble appears to have been sparked by a religious dispute but the town is in the home region of wounded junta leader Moussa Dadis Camara, and there are fears the dispute may be manipulated for political reasons.

"The situation is very difficult in Nzerekore and it is still very tense," said a police source, who asked not to be named. "We put in place a curfew but, despite that, clashes continued. We have been told of one dead and many injured."

Residents contacted by Reuters said that the violence had subsided by early afternoon on Sunday but dozens of women and children had left the town, seeking refuge in the bush.

A government delegation is in the town, holding talks with leaders of both sides.

The dispute degenerated into violence last week after a Christian woman, accused of wearing indecent dress while passing Muslims at prayer, was attacked. In retaliation, Christians stoned Muslims trying to pray.

The region is sensitive as local people there have been angered by the sidelining from power of Camara, a member of one of the minority "forestier" ethnic groups of the region.

Camara, who has been held responsible by a U.N. report for the killings of over 150 pro-democracy marchers in Conakry last September, is convalescing in Burkina Faso after suffering head wounds in a December 3 gun attack by an ex-aide.

Last month in Nigerian town Jos, more than 400 people were killed in clashes between Muslims and Christians.