Australia plans to withdraw 100 troops from East Timor by early 2009 because the security situation has improved since trouble erupted in the tiny Pacific nation two years ago, Australia’s defence minister said today.

Indonesia and East Timor expressed deep regret for violence surrounding Dili’s 1999 independence vote after a joint probe blamed state institutions for “gross human rights violations”.

Former resistance fighter Xanana Gusmao was sworn in as East Timor’s prime minister today as violence by supporters of the party shut out of the new government entered a third day.

The fired army commander whose rebellion triggered the collapse of security in East Timor today demanded that the prime minister resign and be put on trial.

The Islamic militant accused of planning last year’s Bali bombings targeted the tourist island as part of a “programme of jihad” against the United States for its invasion of Afghanistan, a key witness said today.