Timor capital calm as Cabinet crisis talks end

East Timor's government ended a day of crisis talks yesterday as foreign troops tightened their grip on the capital after a weekend of violence by gangs allied to feuding factions of the country's armed forces.

The Cabinet of the world's newest state, which last week appealed for international peacekeepers to quell a rebellion by almost half its army, met for most of the day amid talk of major differences between the President and Prime Minister. Officials said no decision was taken on how to end the violence, and the country's leaders would meet again today.

Prime Minister Mari Alkatiri sacked around 600 of the 1,400-strong army in April after they protested publicly over alleged discrimination against soldiers from the east, triggering the mayhem.

A few dozen protesters brandished banners reading "Down with Alkatiri" outside President Xanana Gusmao's office where ministers met in the capital, Dili.

At one stage the President left the talks to urge a cheering crowd to stop fighting and return to their homes. "We are all Timorese," Mr Gusmao said. "Stop this fighting that is dividing us."

Some in the crowd dispersed, but others called for Mr Alkatiri to address them. "If he is a man he should come out," shouted a group of youths. Timorese special forces, in the first display of armed state authority in over a week, kept guard outside along with a handful of Australian soldiers. Small numbers of Timorese police and soldiers also helped Australian troops man city checkpoints.

The troops were searching for weapons and while they confiscated some machetes and axes, they did not detain anyone.

Sources close to the government say Mr Gusmao is pushing for the country's army and police force to be disarmed and returned to barracks. Foreign troops would then take control until a full investigation into the rebellion has been completed.

He wants dismissed soldiers to be reinstated while their grievances are looked into, sources say.

Mr Alkatiri, who is reported to have opposed foreign intervention in the country of one million or to have pushed for a more limited mission, wants the rebels disarmed but the rest of the security forces to resume work as soon as possible.