East Timor's president assumes emergency power

Gangs of youths have defied peacekeepers in Dili. Picture / Reuters.

DILI - President Xanana Gusmao assumed emergency powers in East Timor late last night, taking sole control of the Army after days of violence in which at least 20 people have been killed.

President Gusmao told a news conference he had taken control of the nation's entire security, information and intelligence branches and would be solely responsible for coordination with international peacekeepers.

He said he had made the decision in collaboration with Prime Minister Mari Alkatiri - with whom he is said to be at odds over the government's handling of the crisis - and the head of parliament.

As the leaders continued their negotiations last night, rival gangs continued to roam Dili.

Earlier in the day, gunfire was reported near the New Zealand Embassy, shots were fired during a riot and more buildings were burned.

President Gusmao and Prime Minister Alkatiri negotiated the tiny country's uncertain future at the Palacio Da Sinja, across the street from the abandoned and looted city police headquarters.

Foreign Minister Dr Jose Ramos Horta had earlier said that some Cabinet ministers were likely to resign but he had refused to comment on the possibility of the Prime Minister quitting.

Mr Alkatiri's future, and President Gusmao's gaining effective control of security forces, are crucial to a solution to the crisis that has overtaken the country.

Although the Prime Minister does not have mass popular support, he has the backing of powerful - and potentially violent - elements of the ruling Fretilin party.

The paralysed state of the country was demonstrated by the heavy Australian Army escort that sped Mr Alkatiri into the talks.

Despite the disarming of about 130 police on Monday, in which New Zealand troops were involved, the situation remains extremely tense and volatile.

Coalition force commander Brigadier Mick Slater said that despite yesterday's renewed violence, Monday had produced breakthroughs.

In Dili, soldiers had confiscated between 300 and 400 weapons from gangs, including high-powered rifles, handguns, grenades, swords and machetes.

Continuing violence has also heightened a growing humanitarian crisis, with latest figures reporting that between 80,000 and 100,000 refugees are sheltering in overcrowded compounds around the city.

- additional reporting: REUTERS