East Timor's Government was in a state of paralysis yesterday as the country braced for trouble at a rally by supporters of former Prime Minister Mari Alkatiri.
Mr Alkatiri stepped down on Monday, bowing to popular and political pressure for him to resign.
However, his supporters have been gathering on the outskirts of the East Timorese capital of Dili with plans to stage a protest march - a proposed demonstration which saw the city practically deserted yesterday except for security forces from Australia, Malaysia, New Zealand and Portugal.
The soldiers were rushed to East Timor in May after factional violence broke out.
The country had been relatively calm in recent weeks but fresh rioting broke out yesterday and at least 20 buildings were torched.
New Zealand Prime Minister Helen Clark yesterday said a planned deployment of up to 25 police officers to East Timor announced on Monday would go ahead.
"We can always revise that if we think circumstances have deteriorated to the point that the police couldn't do the job. That's not the advice I've got at the moment."
However, Helen Clark painted a bleak picture of the situation in East Timor and said government in the country had largely ceased to function.
"Apparently apart from the health system to some extent and the ombudsman's office, nothing else seems to be working at all, and the normal processes have ground to a halt."
Helen Clark said it would be going too far to call the situation in East Timor civil war, but said it would be very unfortunate if communal violence in the country deteriorated into something worse.
"We shouldn't overplay what's happening but on the other hand it's disturbing that with all the effort that's been gone to, to get an international stabilisation force in there and get the political process moving along, that we're still facing a resumption of violence and some suggestion of targeting of the international forces."
Helen Clark said the United Nations could not increase its contribution to East Timor without a Security Council mandate, but if tensions increased the UN might need to move "faster than anticipated".
UN Secretary-General Kofi Annan yesterday called on the Timorese people to remain calm and to unite during a time of challenge and change.
He also urged all political leaders to ensure any demonstrations were peaceful, legal, and conducted in co-operation with international forces.
"The United Nations will continue to stand with the Timorese people during this difficult period," Mr Annan said.
A team of senior UN officials is in Dili to prepare a report on the future role of the United Nations in East Timor.
Meanwhile, more than 50 New Zealand Defence Force personnel will leave for East Timor tomorrow. The soldiers, based at Burnham and Linton Camps, will relieve soldiers rushed to Dili in May, and maintain a company of 170 troops in the country.
Dili paralysed as protest rally looms
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