Former East Timor PM questioned over 'hit squad'

East Timor's former prime minister, Mari Alkatiri, has faced questioning by prosecutors over allegations he authorised the arming of a hit squad to eliminate his rivals.

Mr Alkatiri, who did not make any comment to the media, was questioned for about two hours.

Heavy security surrounded the prosecutor-general's office, with six tanks parked on the streets outside and about 20 Australian troops guarding him.

About 50 demonstrators rallied outside the building, carrying banners and shouting anti-Alkatiri slogans.

Mr Alkatiri has engaged at least four foreign lawyers to defend him against allegations that he authorised the transfer of weapons to a civilian militia group to target his political enemies.

He has repeatedly denied any involvement but agreed to face prosecutors for interrogation.

Mr Alkatiri resigned as prime minister in June amid pressure to take responsibility for violence in May that left 21 people dead and forced 150,000 people to flee their homes.

The country descended into chaos after Mr Alkatiri sacked 600 soldiers from the west of the country who had complained of discrimination.

A United Nations special envoy, Ian Martin, has stressed the need for a "substantial" UN police presence in East Timor.

He said it was necessary to create the conditions for credible parliamentary and presidential elections in 2007.

Mr Martin has been on a fact-finding tour of East Timor to help conflicting parties address their grievances.

His recommendations for a new UN mission will be detailed in a report due out in August.

The envoy said that while the size of the deployment had not been finalised, the police force would need to be "substantial as long as elections place a premium on security."

A UN administration and security forces numbering in the thousands ran East Timor after the nation voted for independence from Indonesia in 1999 until 2002.

Only a skeleton UN team has remained.

About 3200 foreign peacekeepers, including NZ troops and police, have been patrolling the capital, Dili, since the latest unrest erupted in May.

- RADIO AUSTRALIA