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Nick L
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This follows from Theorem 9.3 (page 216) of the book "Compact tranformation groups" by Bredon (note that it is freely available online).

More is true: Any effective group action of a torus on a torus is free. The proof starts along the lines you mentioned via fundamental group considerations.

The result is originally due to Connor and Montgomery:

Conner, P. E., and Montgomery, DC. Transformation groups on a K(n, l), I. Michigan Math. J. 6 (1959), 405-412.

Nick L
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