East Timor Legal Information Site
CRISIS 2006 STATEMENTS AUGUST
9 AUGUST 2006 REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE GABINETE DO PRIMEIRO-MINISTRO PRESS RELEASE Prime Minister praises the work of the Portuguese Police Force

Prime Minister, José Ramos-Horta, visited this Wednesday, August 9th, the Headquarters of the Portuguese Police Force GNR. In a statement during the visit, the Prime Minister complimented the work of the Portuguese police force in ensuring the safety of Dili.

During this visit, the Prime Minister highlighted the important task of the GNR in Timor-Leste:

“The Portuguese policemen, like the other international forces, are having a decisive role in the reestablishment law and safety.”

The chief of the Government also said that the all the international forces are in Timor-Leste invited by the Timorese main State bodies: “The international policemen and the international military were invited to work in Timor-Leste after a formal invitation from the President of Republic, the President of National Parliament, and the Government. They are acting in a very closely cooperation between the President and myself.”

Ramos-Horta also noted the specific role of the Portuguese Police on the framework  of the
international forces in Timor-Leste: “GNR is an intervention police force. It is acting where other police forces cannot solve the situation. GNR is not at the service of anyone in particular, it is here serving the Timorese people. They act regardless of the place of birth of the citizens involved in the incidents.”

The Prime Minister also had the opportunity to express gratitude to “the quick response from Portugal, in sending these outstanding policemen”.

In the visit to the GNR Headquarter, the Prime Minister was accompanied by the minister for Public Administration, Ana Pessoa, the minister for Interior, Alcino Baris, and the minister for Labour and Community Reinsertion, Arsénio Bano.

The Prime Minister’s delegation was welcomed by 50 GNR. In total, the Portuguese police force has 127 personnel in Timor-Leste, and three medical staff from the Portuguese Medical Emergency Organization (INEM). The commander of the force is the Captain Gonçalo Carvalho. The Headquarter is being built in the former building of Centre for Customs Studies, which will work as operational Headquarter and barracks for the policemen. During the visit the Prime Minister was briefed on the two months of GNR operations in Timor-Leste.

Dili, 9 August, 2006

For further information, please contact the media advisor: Rui Flores (tel. +670 723 01 40 or rui.flores@gmail.com)
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United Nations S/2006/620 Security Council  Distr.: General 7 August 2006 Original: English 06-45647 (E) 070806

Letter dated 4 August 2006 from the Chargé d’affaires a.i. of the Permanent Mission of Timor-Leste to the United Nations addressed to the President of the Security Council

I have the honour to submit to you a copy of a letter dated 4 August 2006 addressed to the Secretary-General by José Ramos-Horta, Prime Minister of the Democratic Republic of Timor-Leste, on the establishment of a new integrated United Nations peacekeeping mission in Timor-Leste.

I should be grateful if the present letter and its annex could be circulated as a document of the Security Council.

(Signed) Sofia Borges Chargé d’affaires a.i.

Annex to the letter dated 4 August 2006 from the Chargé d’affaires a.i. of the Permanent Mission of Timor-Leste to the United Nations addressed to the President of the Security Council

I wish to thank you for your continued concern for the people of Timor-Leste and your personal engagement during these past months. The emergency situation in my country is at an end and it is now important to focus attention on the establishment of a new integrated United Nations peacekeeping mission in Timor- Leste working under the authority of the Secretary-General and within a framework as agreed to by the Government of Timor-Leste.

I should like to express our appreciation for the work of your Special Envoy, Ian Martin, and the efforts of the recent assessment mission.

On behalf of all Timorese, I wish to reiterate that we are deeply indebted to the deploying countries — Australia, Malaysia, New Zealand and Portugal — all of whom were able to respond promptly and efficiently to quell the violence and to maintain law and order and to re-establish confidence among the people.

As mentioned in the 11 June letter signed by President Kay Rala Xanana Gusmão, the President of the National Parliament, Francisco Lu’Olo Guterres, and then Prime Minister Mari Alkatiri (S/2006/383, annex), we believe that a robust police, military and civilian element is indispensable to our hard-won peace and freedom.

There is a consensus among all stakeholders that the situation in Timor- Leste requires the establishment of a United Nations multidimensional and integrated peacekeeping mission. Furthermore, in light of the prevailing fragility of the security situation and the need to maintain stability throughout the upcoming presidential and parliamentary elections, but taking into account that the emergency phase has passed and that the current arrangements regarding the international forces need to be reviewed, we deem necessary that along with a strong civilian component, the new mission should have a police force of considerable strength to allow for adequate deployment throughout the districts and subdistricts, backed by a small military force, under the command and control of the United Nations.

I reiterate my thanks for your support for the people of Timor-Leste and trust we can count on your continuing support in meeting our critical requirements for an integrated peacekeeping mission in your upcoming report to the Security Council.

(Signed) José Ramos-Horta Prime Minister
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REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE GABINETE DO PRIMEIRO-MINISTRO MEDIA RELEASE 01 August 2006 GOVERNMENT PROGRAM DEMONSTRATES COMMITMENT TO THE POOR

Prime Minister Dr José Ramos-Horta yesterday presented the program of the II Constitutional Government to National Parliament, a requirement determined by the Constitution.

The program demonstrates Dr Ramos-Horta’s and his Government’s commitment to the poor. “It is time that we dedicate much of our efforts to help the poor who, unfortunately, are the vast majority,” Dr Ramos-Horta said. “Our people have suffered for a long, long time and many, who were poor before the recent crisis, have now lost the little that they had. “It is time we show some compassion and really start to do some concrete things that will benefit them,” he said. In this aspect, the government program foreshadows the:

* construction and/or reconstruction of houses destroyed or damaged during the recent crisis;
* establishment of a food stock;
* provision of assistance to veterans and former combatants;
* development of programs to support unemployed youth;
* continuation of awarding scholarships;
* continuation of the improving of conditions and quality of teaching in schools;
* increase the economic activity in rural areas; and
* better service national and foreign investors.

“The budget for the financial year 2006/2007 just started has an increase of 121% over last year’s budget,” Dr Ramos-Horta said. “As a result my government is going to stimulate the economy by creating employment with projects – such as rural roads, hospitals, schools, electricity, pipedwater, etc - in several areas that will have a medium and short term immediate impact in the lives of the population,” He said.

Prime Minister Ramos-Horta joined in his presentation of the Government program to National Parliament by the two Deputy Prime Ministers, Eng Estanislau da Silva and Dr Rui de Araujo, said that besides the budget of US$315 million, the Government had a further US$100 million through Development Capital (donors) , an increase of 300%.

“Most of this money will go towards 400 infrastructure projects around the whole country,” Prime Minister Dr Ramos-Horta said. “For example, the Ministry for Labour and Community Reinsertion through the Centre for Employment and Professional Developemnt in Tibar, will manage a Solidarity fund for the construction of 100 houses to veterans already identified.

“The Ministry of Agriculture, Forests and Fisheries will receive a special fund called “Fund for Community development aimed at helping initiatives in rural areas and the Ministry of Planning and Finances will establish and manage a fund to establish the Bank of Rural Credit, a financial institution dedicated at helping finance local projects in the sector of agriculture,” Dr Ramos-Horta said.

Prime Minister Ramos-Horta said that all of this, of course, will be done under strict adherence to the principles of transparency and fiscal responsibility.

In his Government’s quest to kick start economic activity around the whole country, Prime Minister Ramos-Horta announced a meeting in Dili of all District and Sub-District Administrators at the end of August.

“The idea for this meeting is to encourage them, to make them feel they are not forgotten and, above all, awaken up their creativity in order they can better serve their people,” Dr Ramos-Horta said.

“In three months we will meet with Liurais, Chefes de Suku and villages.”

In his closing words to national parliament Prime Minister Ramos-Horta vowed his government’s willingness to be available to dialogue with all political parties including those not represented in Parliament.

“My Government does not hold monopoly of knowledge and truth. We will be going to the people in search of the millennium-old knowledge of the people so that we can better serve our people now and prepare a future of peace and prosperity,” Dr Ramos-Horta said.

For further information please contact: CHRIS SANTOS Assessor de Imprensa/Media Advisor Tel: +670 729 7099
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REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE GABINETE DO PRIMEIRO-MINISTRO PRESS RELEASE Programme of the Government approved by the National Parliament

This Tuesday, 1st August 2006, National Parliament approved the Programme of the II Constitutional Government, by 68 votes in favour, two against and one abstention. The program of the Government contains the main political options for Timor-Leste, with the fight against poverty being one of the priorities. The Programme drew inspiration from the Program of the I Constitutional Government and from the National Development Plan (the document which determines the political long term options of the Government).

At the end of a two-day debate, the Prime Minister, José Ramos-Horta, said he was very pleased with the result of the voting, underlining the strong support of the Parliament members to the Government. In the Parliament, Fretilin, the majority party, holds 55 seats on 88.

“We can speak in an almost unanimous support to the Programme of the II Constitutional Government. Some members of the Parliament had some doubts concerning Program and the Budget execution, but I want to state to clarify that this Government has the capability to execute the Budget for the Fiscal Year of 2006/07 that has been approved by the Council of Ministers”, said Mr Ramos-Horta.

Having only nine months of work as head of the Government, Ramos-Horta identified the eight priorities of this Government: community
reconciliation; security consolidation and reform of the security and defence institutions; general and presidential elections; poverty reduction and economic growth; good governance; develop and consolidation of diplomatic relations with friends; final definition of the land border between Timor-Leste and Indonesia; ratification of the agreement established with Australia regarding the joint exploration of the Greater field.

Dili, 1 August, 2006

For further information, please contact the media advisor: Rui Flores (tel. +670 723 01 40 ou rui.flores@gmail.com)
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BACKGROUND TO THE CRISIS IN EAST TIMOR IN 2006
East Timor - Downfall of a prime minister Australian Broadcaster SBS Dateline program - August 30, 2006

Two months back, when East Timor's then Prime Minister, Mari Alkatiri, was dramatically forced to resign after weeks of violence and chaos, from many quarters, there was an audible sigh of relief. Gone was the man variously described as undemocratic, alleged to have armed a hit squad to eliminate his political opponents and a crypto-bloody-Marxist to boot! Alkatiri, of course, maintains he was the victim of a concerted effort to oust him. Meanwhile, Australia has spent millions of dollars supporting the idea of constitutional democracy in East Timor and has hundreds of troops there maintaining the fragile peace.

But, post the violence, there are key strategic and security issues at stake for both countries. Indeed, as we'll see in a moment, new information is coming to light that demands scrutiny. Dateline sent David O'Shea and John Martinkus, two Dateline reporters with a long history of covering East Timor, back to the troubled fledgling nation to our near North.

Reporters: David O'Shea and John Martinkus

David O'Shea: Although he is putting on a brave face, 2006 will go down as a bad year for Rogerio Lobato. Even the cake-maker got his birthday wrong.

Rogerio Labato (Translation): The birth date is 25-7-2016.

Following the violence in May, the former interior minister resigned. Tainted by allegations he'd armed a hit squad and under intense pressure, Prime Minister Mari Alkatiri was forced to resign one month later. According to Rogerio Lobato, a great injustice has occurred.

Labato (Translation): The prime minister, who was democratically elected, was shamelessly discredited because of a film.

The film Lobato refers to is the ABC 'Four Corners' program broadcast in June containing the damning hit squad allegations. Lobato has been charged but despite the very public crucifixion of Alkatiri, there have never been any charges laid against him.

Mari Alkatiri, former prime minister: I am fully confident because I have said I have nothing to do with these kinds of things.

Major Alfredo Reinado, (Translation): This is your last warning young men!

On 23 May, Major Alfredo Reinado fired the first shots of the crisis. He was Australian army-trained and was leading a group of rebel soldiers who had split from the army and, along with some policemen, were now firing on their former colleagues. Reinado insisted that he had fired in self-defence but I was there and I clearly saw and heard him shoot first. The soldiers who were fired on that day said the attack against them came out of the blue.

Soldier (Translation): He counted up to seven, I heard him. Seven, yes, I heard that. I didn't hear anything after seven. I only heard gunshots. I thought they were allies so why were they firing at us? As an officer I had to respond.

Curiously, just days before, politician Leandro Isaac, a staunch opponent of prime minister Alkatiri, told me that something big was about to happen, 'I didn't realise how big it was going to get.' So why did Major Reinado attack? The former prime minister insists that what happened here at Fatu Ahi was the launch of a premeditated campaign to oust him.

Alkatiri: I think Alfredo Reinado was instructed to come down to Fatu Ahi and to restart everything with violence because this is the only way they can provoke everything – to start violence to justify everything.

This was the beginning of four days of chaos in the capital, Dili, before the arrival of Australian forces. As a witness to that upheaval, I have come back with colleague John Martinkus, who has covered East Timor for 10 years. Following Reinado's opening volley, the second major attack of the crisis was led by a man called Rai Los. He told 'Four Corners' that he was the leader of the so-called 'hit squad' and was supposed to be killing people on behalf of Alkatiri.

Well, how then does he explain this amateur footage? The man that filmed it told Dateline these are Rai Los's men and they were fighting alongside the forces they are meant to be killing. They are all fighting the national army and, by extension, the government of Mari Alkatiri. But Rai Los is adamant he didn't join the forces rebelling against Alkatiri.

Rai Los, hit squad leader, (Translation): I didn't go there to join them, I went to stop them. I talked to them, I'd been told to stop them by force, but I had other ideas. I wanted to stop them by using negotiation and dialogue.

You would have to say that taking up arms and firing at the army is an unusual method of dialogue. East Timor's Prosecutor-General is still investigating the incident and confirms Rai Los's role in the fighting in Taci Tolu, on the outskirts of Dili.

Reporter: So it was confirmed that Rai Los was involved in the fighting in Taci Tolu, they led the attack, and they began the shooting?

Longuinos: Yes, thank you very much.

Just as Alfredo Reinado had started the battle and then withdrawn, so did Rai Los. All that's left today of this crucial event in May is a pile of empty cartridge shells. Rai Los's claims about his role in the attack raise serious questions about his credibility and his damning allegations against Alkatiri.

Over the days that followed it seemed everyone had a gun. And many of them were handed out by this man – Police Commissioner and Alkatiri critic, Paulo Martins. The Commissioner admits to emptying the police armoury and distributing the weapons just before the violence began, a fact confirmed by former Prime Minister Mari Alkatiri.

Alkatiri: The Police Commander, Paulo Martins, said the weapons were not in storage and they had been allocated to different police units. He was saying one of the units was in Ailieu and in Dili and in Liquica.

By coincidence or otherwise, the anti-Alkatiri forces were concentrated in precisely the areas named by Alkatiri.

Reporter (Translation): The weapons you sent to Ailieu, where are they now?

Paulo Martins, Police Commander (Translation): The guns that were transferred from Ailieu are now back in Ailieu.

Reporter (Translation): Where?

Martins (Translation): The Police Reserve Unit.

It's common knowledge that members of the police reserve unit had joined the rebels, along with many civilians.

Martins (Translation): The fact is that no one has proved that the civilians used police guns.

If that is the case, how did this police weapon end up in the hands of Leandro Isaac? He is a member of East Timor's Parliament and he's carrying a police issue Steyr rifle.

Leandro Isaac, independent member of parliament (Translation): Because East Timor, especially Dili was in a state of war! WAR! And if I had nuclear bombs, I'd use them.

Reporter (Translation): Some people might be asking why a member of parliament is using a gun?

Isaac, (Translation): There's a difference between using and owning.

Reporter (Translation): And now the gun is?

Isaac, (Translation): It is back with the owner. I am not the owner.

Reporter (Translation): Who is the owner?

Isaac, (Translation): A policeman that was here at the time.

The most horrific incident of the four days was the massacre of unarmed police on 25 May. It was carnage. 9 police were shot dead and 27 were wounded, all of this done by three soldiers, so the story goes.

The UN is investigating the incident. We can offer a dramatically different scenario. This footage suggests there were many more than three soldiers firing. One eyewitness we spoke to claims he saw civilians shooting at the police from these palm trees. And this group of armed men, some of them in civilian clothes, were among many unidentified gunmen at the scene. Who were they and does the presence of groups like this cast doubt on the accepted version of events?

Dateline was told the UN has video evidence supporting the version we have offered. Was this deadly confrontation part of a pattern to discredit the army and further undermine the prime minister? With security spiralling out of control in East Timor, Australian troops arrived to more damaging allegations against Alkatiri, which were big news in Australia.

SBS news story: East Timor's Prime Minister, Mari Alkatiri has today dismissed a string of serious allegations and repeated his claim that he is being forced from power.

Forces loyal to Mr Alkatiri have also been accused of massacring 60 unarmed protesters and dumping their bodies in a mass grave. Mr Alkatiri also stands accused of trying to kill opposition leader Fernando Araujo.

Alkatiri: It is just completely false. I think this kind of accusations and allegations is part of the whole plan trying to demonise me but nothing is true, it is completely false.

True or false, Australia apparently took the threat against opposition leader Fernando Araujo very seriously. They flew his wife and son to Darwin on two Black Hawk helicopters from this isolated airport in the south-west of the country. She arrived just in time to make the Australian news bulletins.

Mrs Araujo: In Australia where you can speak and you can debate and your house will not be burned down and be threatened to be killed.

It's worth noting that neither the death threats nor the allegations of mass graves have ever been proved. While Australia protected Araujo's family, many East Timorese say his Democratic Party, or PD, is actually responsible for coordinating the anti- Alkatiri mobs.

Reporter: You provide the trucks to bring them in to town. PD is involved in organising the transport to bring these people into town.

Fernando Araujo, opposition leader: For demonstrations this is the people's right. If they burn house, this is a crime, they should be arrested. It's not my responsibility.

And Araujo had plenty of help stirring up anti-Alkatiri sentiment. Take for instance Rui Lopes – a man made wealthy through his close connection with Kopassus, the notorious Indonesian Special Forces.

Rui Lopes (Translation): We are ready to die, we're ready to defend, and ready to kill.

When Dateline went looking for Rui Lopes, we found he had crossed the border into Indonesia.

Martinkus: It's a shame. Rui Lopes is not at home. He has had lots of meetings with those people and has provided money and logistics to the PD party. And what we wanted to ask him was – where was the money coming from?

Araujo: I, er, I never get any money from Rui Lopes. Actually we have the same view that Mari is threatening this country, is destroying this country. We organise the demonstration together.

Another of Araujo's associates and supporters is Nemecio de Carvalho. He's a former leader of one of the most bloodthirsty militia that terrorised Timor during 1999. De Carvalho is under house arrest for his militia activities.

Nemecio de Carvalho: So Rui Lopes, I and other people and, according to me, now most Timorese are against Fretilin because they are undemocratic.

Another influential player in this drama is the Catholic Church. The church was openly opposed to Alkatiri and his government, as this April 2005 letter shows.

Church letter: 'The citizens of this country don't identify with the model that this government wants to impose on Timorese society. It's completely alien and cut off from the roots of our cultural, social and historic realities.'

Both of East Timor's bishops signed it and sent it to the president of parliament, asking that

Church letter: 'they decide on the immediate removal of the current prime minister, Dr Alkatiri and his government, and the appointment of a new prime minister who would immediately form a government.'

The letter was ignored. But the church has apparently been involved in more than letter writing. Reliable sources in the army high command told Dateline that two priests personally urged them to oust Alkatiri. Father Apolinario was one of them.

Reporter: Is that true?

Father Apolinario: I can't say anything.

Reporter: Is it true you went to visit, to talk or not?

Bishop Ricardo da Silva, a co-signatory of the letter, also wasn't to keen to discuss the church's alleged approaches to the army or FFDTL.

Bishop Ricardo: Not true – people want to extend everything – not true.

Reporter: Thank you, Bishop.

Alkatiri: It means what they couldn't do at that time they decided to plan it better and to do it in a different way. I don't think we can really blame the church as an institution.

And there was more. According to top level army sources, in late 2005, armed forces chief Brigadier-General Taur Matan Ruak and Lt-Colonel Falur Rate Laek were approached by two Timorese leaders accompanied by two foreigners on two separate occasions. The four also asked the army, or FFDTL, to remove Prime Minister Alkatiri. Again the FFDTL refused.

Alkatiri: I was aware. I was informed by the commanders of the FFDTL of the situation, that they were approached by some Timorese and some foreign nationals, but I was fully aware and confident in the command of the army that I didn't think that it was an issue that could worry me and for me it was nothing.

Martinkus: The two foreign nationals who were involved with approaching the military here to convince them to mount a coup against you, Were they Australian?

Alkatiri: Even the commanders were not clear on this, if they were Australian or American – between these two. But I still have no clear information from the command if they were Australian or American but surely they were English-speaking.

So who would want to mount a coup in East Timor? And why? Mari Alkatiri says it's simply because he was too independent and threatened Australian interests in the oil and gas fields of the Timor Sea.

Alkatiri: What I was doing in my term was to defend the interests of my people in having the resources to develop this country, independently. Not to be dependent. I was fully aware we have our right and we still have our right on the Timor Sea and we have to defend it. Not because I am anti-Australian. I like very much Australia as a country, as a nation, as a people. I would never be anti-Australia.

Martinkus: Do you have any evidence that Australia was involved at some level in the effort to seek your resignation?

Alkatiri: Evidence, no. But the only prime minister in the world that was really "advising me" quote-unquote, to step down, was the Prime Minister of Australia during these days, these difficult days.

John Howard, on the other hand, is far more disposed to Alkatiri's replacement as prime minister Jose Ramos Horta. Just days after being sworn in, new PM Ramos Horta presided over the historic signing of the first oil production sharing contract between the two countries.

Jose Ramos-Horta: When you deal with oil and gas and economics, well, you have to be fair and realistic and pragmatic. Australia cannot always be philanthropic with everything it does for East Timor.

I asked Horta's Energy Minister, Jose Texiera, whether he thought East Timor was getting a fair deal in the lucrative oil and gas agreements.

Jose Texiera, energy minister: It's not the ideal outcome but it's the pragmatic outcome – to give us an outcome.

It seems pragmatism has won the day but the former prime minister says he wanted to ensure East Timor had greater control over its natural resources, particularly the Greater Sunrise oil and gas field.

Alkatiri: What I have been doing up until now is to really get some independent feasibility study of getting the pipeline to Timor Leste and an LNG plant in Timor Leste. And this is very important. What Australia is trying to achieve is having Sunrise sent to Darwin. This is Australia's interests. But my interests can't be always coinciding with Australian interests and vice versa, and this is the reality.

In the midst of the crisis today, there's a media event being staged at President Xanana Gusmao's house. He's taking local journalists on a tour of his much loved garden.

Reporter: Is gardening one way you can forget the troubles?

Xanana Gusmao: Yes.

Xanana Gusmao is the man who holds the greatest moral influence in East Timor and is often portrayed as staying above the political fray, but this murky affair – with its many unanswered questions – has seen him at the very centre of events. In March this year, in a nationally televised address, he responded to the recent split in the country's army, speaking out about discrimination against recruits from the west of the country.

Whatever the President's intentions, his words had immediate effect. That very night the first easterner's houses were burned down and the first refugees fled their homes. Many felt that the President had taken sides with East Timorese from the west of the country, who are mostly anti-Alkatiri.

And again today he is very proactive. On his front doorstep, literally, two guns and a man who said he got them off the former interior minister.

Man: (Translation): In the name of the government, they distributed weapons. Coming from the mountains as we do, how can we afford to buy these weapons?

This media event draws an intriguing cast of characters, including Rai Los, whose hit squad allegations brought down the prime minister. Rai Los is warmly received by the President, but as we pointed out earlier, Rai Los attacked the national army, which under the constitution is headed by President Gusmao.

Kirsty Sword Gusmao is East Timor's Australian-born first lady. In May she was quoted in the 'Australian' newspaper saying that Alkatiri should resign. Many here regarded her comments as symbolic of Australian meddling.

Kirsty Sward-Gusmao, East Timorese First Lady: There was some rather mischievous reporting going on by the 'Australian' newspaper. I did not call for his resignation. I said there were increasing demands for him to resign but I didn't make any forceful demands for him to resign but I did express an opinion on that issue.

Reporter: It's been picked up here as meddling Australian intervention in the internal affairs of East Timor.

Sword: No, it was a misquote.

Reporter: Some people are suggesting what happened was Australia's first coup. What do you say to that?

Gusmao: No, I already told people that we are aware of our own mistakes, our own wrongdoings. We are very aware of this.

Reporter: So the coup is...?

Gusmao: No, no.

Reporter: Thank you.

Dateline made multiple requests for an extended interview with President Gusmao, but he declined.

Nemecio de Carvalho: He is the boss in the struggle. Now he get nothing. Just a symbolic role according to our constitution.

Whatever his motivations, Nemecio de Carvalho, the former militiaman is prepared to say what many East Timorese now believe but are afraid to spell out – that the President and/or others wanted Alkatiri removed and the only way to achieve it was through drastic means.

Carvalho: There must be a crisis and instability, including war. So he can play in such a situation. Without conflict, without instability, without anarchy, war, maybe he will never get more power.

Reporter: There are also a lot of people – much of it is whispers – saying the President is behind all this stuff?

Kirsty Sward-Gusmao: There are bound to be comments like that made, I can say with absolute confidence, as an insider and someone who has accompanied very closely this whole situation, that it's nothing but a load of codswallop.

Meanwhile, 150,000 East Timorese sit in refugee camps, waiting for their leaders to sort out the mess.

George Negus: The question marks still hanging over our troubled northern neighbour. And with Australia and the East Timorese committed to constitutional democracy in the fledgling nation, Xanana Gusmao as President may find it impossible to remain silent and aloof about these violent events.

And in a dramatic, late-breaking development, Alfredo Reinado, the Australian-trained rebel leader David O'Shea was with when he got caught in the crossfire that started the May hostilities, earlier today escaped with 55 other prisoners being held in Dili's Becora jail. Reinado had been arrested and charged with murder and firearm offences.

Reporter/Camera – David O'Shea, John Martinkus Editors – Wayne Love, Scott Fergusson Subtitling – Robyn Fallick, Silvia Lemos Producer – Mike Carey