Prime Minister Xanana Gusmao said today that the resignation of his deputy, whose party threatened to withdraw from the ruling coalition, will not lead to the collapse of East Timor's government.

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.

Australian troops backed by a warship arrived in East Timor today after rebels shot and seriously wounded the president.