Tibetan rioters spilled into the neighbouring Chinese province of Gansu Tuesday and tried to storm a government office, despite efforts by the military to quell protests against Chinese rule.
Roughly 100 armed troops holed up inside the building repelled the protesters with tear gas, as CTV cameras filmed the confrontation.
One protester, bleeding profusely from the head, said he had been beaten by the soldiers.
The crowd then moved to a school in the remote town, located close to the Tibetan border, where they pulled down the Chinese flag and replaced it was the former national flag of Tibet.
On the same day, French Foreign Minister Bernard Kouchner was considering a proposal by the head of the European Parliament and media watchdog Reporters Without Borders, who have suggested boycotting the opening ceremonies of the 2008 Beijing Olympics.
Kouchner said the idea should be discussed later this month when EU foreign ministers meet.
However, he insisted that France has no plans to skip the Games and he added that a full boycott would not be "just."
Meanwhile, Chinese Premier Wen Jiabao said Tuesday that recent violent demonstrations by Tibetans were well-planned.
"There is ample fact -- and we also have plenty of evidence - proving that this incident was organized, premeditated, masterminded and incited by the Dalai clique," Wen said.
"This has all the more revealed that the consistent claims made by the Dalai clique that they pursue not independence but peaceful dialogue are nothing but lies."
Wen made the comments to reporters at his annual news conference at the end of China's national legislative session.
"By staging that incident they want to undermine the Beijing Olympics Games, and they also try to serve their hidden agenda by inciting such incidents," he said.
The Dalai Lama has maintained that he is not behind the violence, said Chao, reporting from the China-Tibet border.
"For the most part the Dalai Lama has urged both sides to show restraint," said Chao.
"He has always advocated peace rather than violence. So, in this case, he says if it is proven at all that he is involved he will step down."
On Tuesday, the Dalai Lama warned that he would leave his post as leader of Tibet's government-in-exile if Tibetan protesters in China continued to act out violently.
Later, a top aide said the Dalai Lama "would have to resign because he is completely committed to non-violence.''
However, the aide said he would resign only as the political leader and head of state -- not as the Dalai Lama.
Tibetans began protesting early last week, timed for the anniversary of a 1959 uprising against the Chinese government. China took control of a then-independent Tibet in 1950.
Tibet's governor has said that 16 people have died in the protests. However, Tibet's government in exile, based in India, said that the number of people killed is closer to 80, which the governor has denied.
China restricts the access of foreign journalists to Tibet, so independent verification is very difficult.
There are reports that some local governments in western China are also banning foreign reporters.
China has already ordered all tourists out of Tibet's capital, Lhasa. Canada has warned travellers to stay out of the region, unless it is absolutely necessary.
With files from CTV's Steve Chao and The Associated Press