By AUDREY YOUNG
DILI - As the sun rises over the dusty lands of East Timor this morning, it will be a new dawn for the world's newest country.
It is a quarter of a century since the small Melanesian island was occupied by Indonesia and just two years on from the bloody rampage by pro-Jakarta militias that saw most of its buildings destroyed and hundreds of thousands of Timorese flee into Indonesian West Timor.
Yesterday thousands of its 850,000 people, 97 per cent of whom are Catholic, knelt in the dirt to pray for a better future, as celebrations of their independence as the world's 190th country began.
East Timor officially became the first new country of the 21st century at midnight and Xanana Gusmao, a man often likened to Nelson Mandela, was installed as president.
In a ceremony that began at dusk with a solemn three-hour mass and was scheduled to end with a pageant of fireworks, thousands witnessed the formal birth of a sovereign nation.
A weekend show of military strength by former occupying force Indonesia did not quell the spirit of the East Timorese.
Thousands of locals and international visitors poured into the celebration site at Taci Tolo, 8km from the capital, Dili, to watch the United Nations flag come down and the East Timorese flag go up at midnight (3am, NZ time).
Local youths painted their upper bodies in the flag of the democratic republic of East Timor while other locals donned traditional clothing.
Earlier, the New Zealand delegation received a rapturous welcome on the tarmac at Dili.
Jorge Teme, the Associate Foreign Affairs Minister, threw his arms around New Zealand Foreign Minister Phil Goff and Associate Foreign Minister Matt Robson, who have both long campaigned for East Timorese independence.
An emotional Mr Robson embraced Mr Teme, lifting him off the ground as if to spin him around.
"The dream has come true," he said.
Mr Teme is well known to both ministers, having studied in exile at Massey University.
UN Secretary-General Kofi Annan, given the task of handing over authority for the country's administration to the Speaker of the East Timor Parliament, described plans by Indonesian President Megawati Sukarnoputri to briefly attend, despite domestic critics, as a "wise and courageous decision".
"I think it is a firm indication that we have decided to put the past behind us and look to the future."
He described the Indonesian action on Saturday as a "hiccup" that should be seen in perspective. But clearly tensions remain in the relationship between East Timor and Indonesia.
The Indonesian military suggested it had dispatched 2000 troops and six warships because of possible risk to President Megawati.
But President Gusmao said "Dili will not even let a fly touch Megawati".
President Megawati was scheduled to make a four-hour visit to Dili and planned to visit an Indonesian heroes' cemetery.
President Gusmao hoped she might one day visit the Santa Cruz cemetery, site of a massacre in 1991.
There is a lot of domestic sensitivity in Indonesia about President Megawati visiting at all. There are suggestions that the show of force by Indonesia was done independently of the president and that it has been an embarrassment.
The UN has controlled the former Indonesian territory since soon after the 1999 independence vote, when pro-integration militia went on a killing and burning spree with the acquiescence of the occupying Indonesian Army.
International outrage grew to a climax at the Auckland Apec summit and Indonesia, threatened by economic penalties, was forced to accept outside intervention.
Its soldiers had invaded in 1975. They left in November 1999.
Mr Gusmao, who served eight years in a Jakarta prison, won 82 per cent of the popular vote in April to be named president.
Taci Tolo, where last night's ceremony was held, was a landing site for the Indonesian invasion in 1975. Its lakes are said to have been the watery grave of young tortured freedom fighters. This morning the site was dedicated as a "garden of heroes".
More than 90 countries sent delegations to celebrate independence, putting enormous strain on Dili. Guests include former United States President Bill Clinton and Australian Prime Minister John Howard.
The UN Security Council on Saturday voted to extend its presence in East Timor, with the support of the new Government.
It will known as the UN Missions of Support in East Timor (Unmiset), but will be phased out completely within two years.
The 8000 peacekeepers will be phased down to 5000. New Zealand's last battalion of 621 left for duty this month and most will be back in November.
Mr Goff paid tribute to the transitional work of the UN, restoring physical infrastructure and developing human infrastructure.
"But the celebration for independence is really the beginning of the process. It's not the end."
New Zealand has pledged East Timor $10 million over the next four years.
But for now poverty haunts East Timor. Barefoot children hawk oranges in the streets as jobless youths ponder how they will ever get work
But at least for one day the Timorese can celebrate their independence and nascent democracy.
"We are free," said 22-year-old student Justino Vieira. "Now, we cannot be intimidated by anyone."
Feature: Indonesia and East Timor
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East Timor rises to stand alone
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