Gangs of youths allied to feuding East Timor police or army units went on the rampage in parts of the capital today, torching houses and vehicles as Australian and Malaysian peacekeeping troops stepped up patrols.
Youths armed with machetes, swords and knives patrolled neighbourhoods near government buildings against what they said were rogue army elements planning to return from the hills surrounding the capital of the world's newest independent nation.
Black smoke billowed above the city in the morning, but residents were generally calm, gathering on street corners to hear gossip and news about the situation.
By mid-afternoon the clashes appeared to have ended, although Australian helicopters circled the city and three navy ships cruised along the waterfront.
Residents say a rebellion by soldiers angry about being sacked has turned into a protest against the government of Prime Minister Mari Alkatiri, who they say has failed to deliver any economic or social development since East Timor became an independent state in 2002.
An election is scheduled for early next year, but some diplomats say the government cannot last that long.
Earlier this week the government asked Australia, New Zealand, Portugal and Malaysia to send troops to help restore order. On Saturday, those foreign military patrols were the only sign of any real authority.