East Timor President appeals for peace

East Timor President, Xanana Gusmao, has made an appeal for peace after weeks of violence, amid continued rebel demands for him to oust unpopular prime minister, Mari Alkatiri.

Rebel leader, Major Alfredo Reinado, said he had assumed command of 600 rebel soldiers who were sacked by Prime Minister Alkatiri in April after they complained of discrimination.

The soldiers were later joined in their revolt by members of the police force, which lead to armed clashes between pro-government and rebel forces.

Major Reinado has accused Mr Alkatiri of ordering illegal killings, including the shooting of nine unarmed police last week, and said the prime minister must stand down and face an official investigation.

But the prime minister, a minority Muslim in an overwhelmingly Catholic country, has refused to step down.

The political division has heightened fears that violence could spiral into all-out civil war in a country that has only been independent since 2002.

Troops aiming to disarm police and soldiers

The situation remains tense but calm in the capital, Dili, where at least 20 people were killed last week in unrest that caused the government to call in more than 2,200 foreign troops.

The Australian-led international peacekeeping force is now on the ground in East Timor with the aim of disarming all police and soldiers.

The majority of the army have surrendered their weapons, but the police, seven of whom were gunned down by soldiers last week, are proving more reluctant.

The current crisis mirrors the divide in the country leading up to the violent referendum of 1999 when Timorese voted overwhelmingly for independence from Indonesia, which had annexed the country after colonial power Portugal withdrew in 1975.