DILI - Gangs of youths allied to feuding East Timor police or army units went on the rampage in parts of the capital on Saturday, torching houses and vehicles, as Australian and Malaysian peacekeeping troops stepped up their patrols.
Youths armed with machetes, swords and knives patrolled neighbourhoods near government buildings against what they said were rogue army elements planning to return from the hills surrounding the capital of the world's newest independent nation.
Black smoke billowed above the city, but residents were generally calm, gathering on corners to hear gossip and news about the situation.
"The FDTL are trying to come back. We will stop them," said one sword-wielding youth, referring to hundreds of soldiers who rebelled after being sacked from the 1,400-strong army in April.
The army split is mirrored in the general population, with neighbourhoods and street gangs allied to one faction or another. The police force has also effectively disintegrated, further complicating the situation.
Earlier this week the government asked Australia, New Zealand, Portugal and Malaysia to send troops to help restore order. On Saturday patrols by foreign forces were the only sign of any real authority.
The ministry of foreign affairs said the cabinet was aiming to meet on Saturday for emergency talks.
Anti-Government Protest
Residents say the rebellion has turned into a protest against the government of Prime Minister Mari Alkatiri, who they say has failed to deliver any economic or social development since Timor became an independent state in 2002.
An election is scheduled for early next year, but some diplomats say the government cannot last that long.
A convoy of around 30 heavily armed Australian troops in civilian four-wheel-drive vehicles drove around the streets outside the government secretariat, but they appeared to steer clear of the neighbourhoods where houses were being torched.
Malaysian troops also patrolled the streets for the first time since arriving on Thursday. They drew curious stares, and children ran behind their cars as they cruised through suburbs.
The commander of the Australian forces, Brigadier Mick Slater, said their deployment had already made a difference.
"The amount of violence that is being reported around town has gone downhill," he told Australian Broadcasting Corp. radio.
Hundreds of Timorese troops rebelled in April after they were dismissed for protesting over what they said was discrimination against soldiers from the east of the country. Most of the military leadership is said to come from the west.
The simmering revolt turned bloody last week when police were routed after they tried to disarm the sacked soldiers. Officials say around 15 people have been killed in the past three days.
Portuguese Colony
A Portuguese colony for centuries, East Timor was annexed by Indonesia in 1976 in a move the United Nations condemned and much of the population resisted.
Australia led a U.N.-backed intervention force to East Timor in 1999 to quell violence by pro-Indonesian militias after a referendum vote for independence. This was finally achieved in 2002 after almost three years of U.N. administration.
On Saturday President Xanana Gusmao, a hero of the independence struggle, was trying to broker talks between the government and the rebels.
At least three houses belonging to relatives of army officers were torched by gangs allied to rebel soldiers. Scattered gunfire could be heard, but there were no immediate reports of injuries.
"There is going to be a lot of this revenge stuff going on," said one businessman who had shuttered up his office supplies shop against the possibility of looters.
Foreign troops remain the only sign of authority on the streets of the capital and, while their presence has calmed the situation, it is unclear how well armed the rebels are or if the regular army can be relied upon to disarm them.
The Australians say their aim is first to restore order to the capital before fanning out into the rural areas where most of the 1 million population live and where the rebels have fled.
Australian political leaders voiced concerns on Saturday about the way East Timor has been governed in recent years.
"There is a significant governance problem inside East Timor, there's no point in beating around the bush," Prime Minister John Howard told Australian radio.
"Sacking one-third of the army ... In a fragile democracy like East Timor, it has to be said, that was a pretty heavy-handed sort of decision," Foreign Minister Alexander Downer said in a separate radio interview.
However, Downer said the immediate political challenge was to settle the differences between rebels and government, and Canberra would stay out of the country's domestic politics.
"The local people have to take responsibility for their local affairs," he said.








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