A New Zealand lawyer based in Dili says the political situation in East Timor is collapsing under fighting which broke out five days ago.
Martin Breen from Nelson, who has lived in the capital Dili for six years, said he was surprised how quickly the city had fallen into chaos.
"The whole system has collapsed completely," he told NZPA.
"I have been here six years and cannot believe how fast this has developed into this mess."
He said the city had been physically split into two factions: with the police and western forces on one side and the army on the other.
New Zealand ambassador Ruth Nuttall is expected to return to the embassy in central Dili today after being forced to leave when the compound was surrounded by an angry mob.
Ms Nuttall and former consul general to Timor Suzanna Gordon sought refuge at the Australian Embassy 1km away.
Ms Nuttall became a target for the mob because she sheltered two teenage survivors of Thursday's brutal murder of a mother and five children, the Herald on Sunday reported.
The murdered family were targeted because they were related to Interior Minister Rogerio Lobato . Foreign Affairs Ministry spokesman Brad Tattersfield told NZPA last night about 27 people remained in the embassy, including the defence attache, police liaison officer and some local Timorese staff members and their families.
Protection was provided by a number of Australian troops present at the New Zealand embassy.
Mr Tattersfield said the mob eventually moved off and the first contingent of New Zealand troops landed in Dili 11pm (NZ time) and headed straight the compound.
A further 124 New Zealand troops are expected to arrive in Dili sometime today.
Mr Tattersfield said it was unclear at the this stage exactly when and what their tasks would be.
"[The] specifics of that aren't known as yet, not 100 per cent sure -- all of those decisions are still under discussions.
Hundreds of Dili's residents are camped out towards the airport sheltering in the security of the international troops arriving.
Thirty-six New Zealanders are believed to live in East Timor.
Mr Tattersfield said MFAT had made contact with most of them.
"They are fine as far as we know.
"We haven't actually been able to make contact with all of them, some of them are in outlying areas."
He said a small number had left.
- NZPA
East Timor political system collapses in unrest
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