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By Crispin Dembassa-Kette BANGUI (Reuters) - Thousands fled a gun battle between Chadian troops escorting a convoy of Muslim civilians and local militia in Central African Republic, Medecins Sans Frontieres said on Tuesday, as Chad completed a withdrawal of soldiers from its violence-ravaged neighbour. Central African Republic has descended into chaos since the mainly Muslim Seleka rebel coalition seized power a year ago. The Chadian troops were escorting the last 540 Muslim residents of the northwestern town of Bossangoa to Gore in Chad when militia attacked the convoy at night on April 11 as it passed through Boguila, around 310 miles (500 km) north of the capital Bangui. “We witnessed the majority of the population fleeing in panic to the bush," Stefano Argenziano, MSF head of mission in the country, said in a statement on Tuesday, estimating that around 7,000 people were displaced in the clash.