Hundreds of East Timorese flee homes after clashes

DILI, Apr 29 (Reuters) Hundreds of residents of East Timor's seaside capital have fled their homes after four people died in protests by soldiers and their supporters, prompting the president to urge them to return to their homes.

The cash-strapped government dismissed more than 500 soldiers earlier this month, prompting a series of protests joined by groups the government says have broader motives.

Yesterday's demonstration turned violent, as protesters burned cars and threw rocks at police and officers fired into the crowd.

Police originally said two people died in the clashes, but today said two more bodies had been found.

All the dead were protesters, police said.

The Friday riot and sounds of gunfire in Dili overnight prompted more than 1,300 people to flee their homes, a Reuters photographer said.

He said more than 1,000 were camped out in the grounds of a Catholic cathedral and around 300 on a field at the US embassy.

''The situation is under control now. I ask people to return home,'' East Timor President Xanana Gusmao told the refugees.

Yesterday's protest had been planned as the last in a series by the sacked soldiers. They say their dismissal was unfair and have demanded a quick government investigation.

A one-time Portuguese colony, East Timor, north of Australia and 2,100 km east of Jakarta, was invaded by Indonesia in 1975 and formally annexed the following year.

After decades of simmering rebellion against Indonesian forces, the East Timorese people voted overwhelmingly for independence in a 1999 referendum marked by bloodshed in which an estimated 1,000 people were killed.

Most of the violence was blamed on pro-Jakarta militia backed by elements of the Indonesian military.

Australian troops with a UN mandate were critical to bringing peace to East Timor in 1999. After an interim period of UN administration, East Timor became independent in 2002.

Australian Foreign Minister Alexander Downer today ruled out further Australian involvement.

''There is no plan for Australia to become any more involved and the East Timorese haven't asked us to become involved,'' he said. ''...They feel confident they can handle the situation on their own.'' One of the world's poorest countries, East Timor has considerable energy resources but is only now starting to develop them.

REUTERS PG HS1634