Posted: 29 June 2006 1705 hrs

DILI : Thousands of supporters of Timor Leste's ex-prime minister have streamed into the capital, creating fears of fresh violence as the president said early elections were needed to end the political crisis.

Mari Alkatiri resigned as premier on Monday, raising hopes of an end to weeks of turmoil including deadly fighting last month that saw at least 21 people killed and nearly 150,000 flee their homes.

Instead, at least 150 trucks and cars parked with Alkatiri's supporters began moving along the coastal road into Dili, chanting his name as foreign peacekeepers cleared the route to prevent clashes.

The city was brought to a standstill as the convoy rolled through, with businesses and restaurants shuttered, and soldiers in armoured vehicles and police with dogs guarding government offices.

"Viva Fretilin!" "Long Live Unity!" the protestors yelled, waving large black, yellow and red Timorese flags as the vehicles drove past with horns blaring.

Foreign troops, among a 2,200-strong contingent which arrived here in May, were stationed on Dili's perimeters to carry out rigorous searches of vehicles and protestors entering the city.

At one junction soldiers held back about 100 anti-Alkatiri protestors to prevent them from getting near the convoy as each side taunted the other.

Tensions were already high after houses were torched and youths threw stones at refugee camps on Wednesday in response to television pictures aired the evening before showing a defiant Alkatiri calling for a march on Dili.

Sixteen people were arrested for arson, looting and other offences.

Fretilin spokesman Jose Reis told AFP that the protestors planned to circuit the city and hand in a letter to President Xanana Gusmao to ensure their voices were heard.

"We're asking the president to respect Fretilin because Prime Minister Alkatiri resigned under pressure from the president and so far no successor has been chosen," he said.

Peacekeepers made announcements by loudspeaker to people living on the edge of the city and along the planned route of the protest, urging them not to provoke the demonstrators and also assuring them they would provide security.

They also warned that anyone provoking the marchers could be arrested.

Gusmao, who has been seeking to forge a path back towards peace, said that the fledgling nation must hold elections as soon as possible.

"I am conscious that the current crisis can only be completely overcome through free elections to be held as soon as possible," he said in a presidential declaration dated Wednesday.

Gusmao said the formation of a new government was a matter of "great urgency" and that he had begun to search for a "stable solution of governance" capable of restoring peace in Timor Leste, but gave few details.

Timor Leste, which gained independence four years ago after decades of rule by Indonesia and centuries as a colonial outpost of Portugal, is due to hold parliamentary elections early next year.

UN chief Kofi Annan called on the Timorese people "to remain calm and to unite during this time of challenge and change".

Alkatiri was blamed for the May fighting between factions of the military, and between the army and police, which degenerated into gang street violence.

The unrest had its roots in Alkatiri's decision in March to sack some 600 deserting soldiers - or nearly half of the military - who had complained about discrimination.

In Australia, which has some 1,500 troops and police in Timor Leste, Treasurer Peter Costello denied charges that Canberra had been involved in ousting Alkatiri.

"It's absolutely false that Australia has intervened in any way in the political line-up in East Timor," Costello said.

Alkatiri's supporters have accused Australia of orchestrating the premier's downfall.

A retired Portuguese general who once commanded a UN force in Timor Leste also claimed last week that Australia had provoked the crisis. - AFP/ch
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