East Timor's Fretilin party open to unity government

DILI, July 10 (Reuters) East Timor's ruling party, Fretilin, has begun negotiations with other parties for a unity government in the young nation after the recent parliamentary election, the party's secretary general said today.

Both Fretilin and CNRT, a party set up by former president Xanana Gusmao, had previously ruled out a proposal by President Jose Ramos-Horta to form a unity government. Both had said they sought to form a coalition government instead.

Fretilin said yesterday it planned to form a minority government if attempts to link up with coalition partners failed.

Today, though, Fretilin leader Mari Alkatiri signalled a change of tack.

''Our doors are open for all parties including CNRT, and we have conducted formal and informal negotiations with all seven parties in the parliament,'' said Alkatiri, who stepped down as prime minister after last year's turmoil.

''We are waiting for their response to form a unity government,'' he told Reuters.

Fretilin won 21 seats in the 65-seat chamber in the June 30 election while the CNRT won 18 seats, the Association of Timorese Democrats-Social Democratic Party (ASDT-PSD) 11 and the Democratic Party 8. Smaller parties took the rest.

Gusmao's CNRT, which the resistance hero established this year as a vehicle to become Prime Minister, and the ASDT-PSD and the Democratic Party said last week they had formed a coalition.

Fretilin, which led the 24-year struggle against Indonesian rule, remains popular, especially in the east of the country, but its candidate fared badly in the recent Presidential election.

Gusmao, who ended his term as president in May, appeared to become increasingly frustrated by the pace of progress under Fretilin rule and by the factional infighting which broke out in East Timor last year and helped cause chaos and bloodshed.

The factional fighting was triggered by the Fretilin government's sacking of 600 rebellious soldiers. In the ensuing mayhem 37 people were killed and 150,000 driven from their homes.

Foreign troops led by Australia intervened to restore order, but sporadic violence and unrest have continued.

REUTERS PY PM1840