Villagers in Arunachal Pradesh have stumbled upon a World War II camp-cum-observation post used by American forces, close to a graveyard where over 1,000 soldiers of the Allied Forces are buried, officials said Tuesday.

A government spokesman said villagers discovered the post, spread over about 500 square metres, near Wintong village in Changlang district, about 600 km east of state capital Itanagar.

'The area was probably used as a monitoring and observation camp by American soldiers who were part of the Allied Forces to monitor air strikes during World War II,' said Arunachal Pradesh assembly speaker Setong Sena.