Australian town evacuated from fire path

Associated Press WriterSYDNEY, Australia (AP) -- Firefighters battled 100-foot flames and evacuated about 1,000 people from a mountain town Monday as isolated storms failed to contain wildfires threatening Australia's largest city and its capital.

Meanwhile, about 1 million revelers ignored threatening fires and a shroud of acrid smoke to throng Sydney's harborfront for a New Year's fireworks celebration billed as one of the world's largest.

The red, yellow and green bursts were triggered from Sydney's famous bridge despite concerns that fireworks could spark more bush fires around the waterfront and worsen record air pollution levels. For days, smoke has obscured the city skyline and triggered alarms in buildings.

Firefighters hoped Monday's storms would dump heavy rains on bush fires burning just 12 miles from the nation's largest city. These were the first storms over Sydney since the crisis began Christmas Eve.

But only light rainfall fell and the strong winds may have fanned flames elsewhere. There also were fears that lightning may have started new blazes.

A new fire outbreak threatened homes in Hilltop, 50 miles southwest of Sydney, forcing many residents to evacuate homes overlooking tinder-dry bush land.

The fast-moving wall of fire climbed towering eucalyptus trees and created choking smoke. Australia's forests are dominated by eucalyptus and other oil-based trees that burn easily, but regenerate quickly after fires.

Some people ignored the danger, using garden hoses and buckets to wet their homes.

"Where else are we going to live? We owe it to ourselves to stay and fight," resident Andrew Pemberton said.

Firefighters later said a last-minute wind shift spared the tiny town.

About 150 homes have been destroyed and thousands of acres of forest and farmland blackened by the fires. Insurance officials estimate damages at more than $25 million.

More than half of the 100 blazes across New South Wales state have been lit by arsonists, officials said. Police have arrested six suspects and are searching for more.

Fires not only surrounded Sydney on three sides, they also raged near Australia's national capital, Canberra, 155 miles to the southwest. The latest flared Monday at Mt. Painter, just north of the city.

Weather forecasters said dry Outback winds and temperatures approaching 100 would return Tuesday and potentially could fuel the fires.