Despite hopes that the presence of international troops would quell the unrest, violence continued throughout Dili and other parts of Timor-Leste. On 27 May, gangs from different parts of the country fought in the streets of Dili, destroying cars and houses and fighting with knives,
machetes and slingshots leaving at least three East Timorese hacked to death. Australian troops were attacked as they endeavoured to keep the gangs apart, while they helped civilians escape to safety through back alleys. The Australians did not return fire, instead discouraging the gangs by advancing towards them and "shouting orders and threats". The rescued civilians were then rushed to the UN compound nearby. The Major commanding the troops said that the gangs were using mobile phones to co-ordinate their attacks, but that the attacks would likely cease as more international troops arrived and completely secured the city. Australian Defence Minister
Brendan Nelson also said that the Timor-Leste authorities should expand the rules of engagement of the international forces, to give them police powers to combat the gangs, saying that "It's clear there needs to be political leadership as far as the policing is concerned ... what we need is a policing strategy across Dili."
Council of State meeting Throughout 29 and 30 May, President Xanana Gusmão held crisis talks with the
Council of State, an advisory body composed of community leaders. The Council, which has the ability to authorise the President to dismiss the
National Parliament, was the first meeting between Gusmão and Prime Minister Alkatiri since the escalation of violence in the previous week. The meeting was also attended by Foreign Minister Ramos-Horta (leading to speculation that Ramos-Horta might be appointed as a temporary Prime Minister if Alkatiri were to be sacked), the Bishop of Dili, the
UNOTIL representative Sukehiro Hasegawa and
United Nations Secretary-General Kofi Annan's personal representative
Ian Martin, who was previously the UN representative to East Timor in the leadup to the independence referendum in 1999. Late on 30 May, after the Council meeting and following an emergency meeting with his cabinet, Gusmão announced that he was declaring a state of emergency to last for 30 days, during which time Gusmão, as
Commander-in-Chief, would have sole command of both the military and the police forces, and would personally co-ordinate with the international forces, and to combat the gang violence both internal and international forces would have increased policing powers. however under the emergency arrangements Alkatiri would remain in office, albeit with reduced authority. Gusmão said that the decision to assume control was taken in "close collaboration" with Alkatiri, despite some members of the government, including Foreign Minister Ramos-Horta, attributing some of the blame for the crisis directly to Alkatiri. On 1 June, Gusmão visited a refugee camp near the United Nations headquarters, telling people "The best thing you can do is go back to your homes", and urging them not to take security matters into their own hands. On the same day, Interior Minister
Rogerio Lobato and Defence Minister
Roque Rodrigues resigned, Lobato blaming the crisis on opponents to the government resorting to violence rather than political means. Foreign Minister Ramos-Horta subsequently took over the Defence ministry, while Malaysian Foreign Minister
Syed Hamid Albar urged Ramos-Horta to act strongly in his new capacity, in the interests of achieving political stability, while emphasising that the United Nations should be prepared to resume greater role.
Civil unrest in Dili On the night of 31 May, gangs in the capital Dili burned down a market and several houses in arson attacks. On 2 June, a large crowd of about 1000 people who had waited in vain for several hours for food handouts raided a government warehouse in Dili, taking computer equipment, furniture and other supplies to trade them for food. Australian soldiers present at the warehouse were unable to prevent the looting due to a lack of police powers, and although they summoned Portuguese police, the warehouse was practically empty. On the same day a crowd of 500 to 600 people protested outside Government House again calling for the resignation of Prime Minister Alkatiri. A group of Timor-Leste police who arrived to confront the demonstration were stopped and searched by Australian troops, who confiscated their only weapons, several cans of
pepper spray, as part of a policy of removing all weapons from the streets. In interviews, Slater said that he did not ask Reinado to surrender or participate in negotiations because the situation was not ready for discussions, as not all groups were ready to participate. Slater said that some of the violence seemed coordinated, and that he had been co-operating with the military, the police, the government, and Reinado in an attempt to find those planning the violence. On the night of 2 and 3 June, looting and gang violence destroyed another dozen houses in Dili, and forced the temporary closure of the main road between Dili and the airport to the west of the city, where the international forces were based, although Australian and Malaysian forces quickly secured the road. However at the same time in the centre of Dili, the unrest had all but ended, with commercial areas re-opening and some of the damaged buildings and shops being repaired. However, there was little or no violence accompanying the convoy, aside from some stones thrown as the convoy passed through Comoro, indicative of the level of support for the protest, which one reporter described as "a very impressive show of people power". The crowd chanted for the resignation of Prime Minister Alkatiri, while also expressing support for President Gusmão. Gusmão later addressed the crowd from atop a car outside his office, saying "Let me bring peace to East Timor and then we will resolve others matters." He was said to be in tears at times, and said "The priority now is to stop people burning, and guns shooting." The convoy completed a loop around the inner city, before peacefully dispersing again. Meanwhile, Australian Defence Minister
Brendan Nelson said that the Timor-Leste judicial system was beginning to deal successfully with the problem of violent street gangs, saying that "We are detaining people, we are bringing them before a magistrate, and if they are found guilty, then, they are further being detained." On 8 June, claims emerged that former Interior Minister and Alkatiri ally
Rogerio Lobato (who had resigned a week earlier), acting on Alkatiri's instructions, recruited and armed a civilian militia to "eliminate" opponents of Alkatiri. The group consisted of about thirty civilians, and were allegedly armed with "18
assault rifles, 6,000 round
sic of ammunition, two vehicles and uniforms." The leader of the group, referred to as Commander Railos, said that they had instructions to kill all of the rebel soldiers, but after losing five of the group in armed combat in Dili came to "appreciate that the cost of arming civilians was bloodshed and deaths on all sides" and was prepared to surrender to President Gusmão. Alkatiri strenuously denied the claims, saying that his government had not armed any civilians. Foreign Minister Ramos-Horta also said that he found it "very hard to believe that our own Prime Minister would... arm civilians". On 9 June, Lieutenant
Gastão Salsinha, the original leader of the rebel soldiers, reiterated the claims of Commander Railos, saying that Lobato had distributed 200 rifles stolen from the police
armoury to civilians. He also claimed that on 28 April, the same day as the clash between the military and rebel soldiers that sparked the crisis, soldiers loyal to Alkatiri had shot and killed 60 civilians, before burying them in a
mass grave outside Dili. at a ceremony in the city of
Gleno on 5 July. Meanwhile the violence in Dili appeared to be subsiding, despite sporadic outbreaks, as international peacekeepers continued to secure the city. By 16 June, rebel soldiers were ready to hand in their weapons, in exchange for protection from the international military forces, following more than a week of negotiations. At camps in
Gleno and
Maubisse, rebels including
Alfredo Reinado surrendered weapons, including several
M16 rifles, which were then sealed in a
shipping container. Brigadier Slater expressed doubts that all weapons would be handed in, but said that the presence of international forces around the rebel bases "will enable them to confidently enter into negotiations with the president and other members of the government." On 20 June, the Timor-Leste Prosecutor-General issued an
arrest warrant for Rogerio Lobato for arming Commander Railos and other civilians. Although there was initially some speculation as to whether Lobato had fled the country, by 21 June he was under
house arrest in Dili. On 20 June, the
United Nations Security Council issued
Resolution 1690, extending UNOTIL's mandate until 20 August and expressing support for the existing international peacekeeping effort. Five days later, the Council adopted
Resolution 1704 creating the new
United Nations Integrated Mission in Timor-Leste (UNMIT). Australia was allowed to retain command over the joint military task force, although the UN Secretary-General and Security Council will revisit this question by 25 October. ==Resolution==