East Timor celebrates becoming a nation

Independence finally arrives after long and bloody struggle

After a lengthy wait of four-and-a-half centuries, East Timor finally emerged from the shadow of its colonial past last night and became the world's newest nation state, during an emotional midnight independence ceremony in its seaside capital, Dili.

The United Nations secretary general, Kofi Annan, formally handed over authority to East Timor's new government, watched by several heads of state. They included Megawati Sukarnoputri, the president of Indonesia, the country East Timor broke away from after nearly a quarter of a century of brutal oppression.

"I salute you, people of East Timor, for the courage and perseverance you have shown," Mr Annan told an exuberant crowd of thousands of East Timorese. "Yours has not been an easy path to independence. You should be very proud of your achievement."

Shortly after midnight local time East Timor's independence leader, Xanana Gusmao, was formally sworn in as the country's first head of state. Mr Gusmao, a 55-year-old poet and former guerrilla leader, was elected president in a UN supervised vote in April.

"Independence! As a people, as a territory, as a nation! One body, one mind, one wish," he told the crowd, with the country's new red, black and gold flag draped round his neck.

Mr Gusmao immediately struck a conciliatory note towards Indonesia, and promised his people a better future.

Addressing President Megawati directly, he declared: "We warmly welcome your pres ence here among us, not only in your capacity as head of state of the brotherly and neighbouring country, but also as a symbol of the democratic yearnings of the brotherly people of Indonesia."

Earlier, a peacekeeper lowered the blue flag of the UN, which had administered the territory since it voted overwhelmingly for independence in 1999. A platoon of soldiers from East Timor's new defence force then escorted the country's flag on to the stage.

They raised it as a choir sang the new national anthem. The simple ceremony marked the end of four centuries of Portuguese colonial rule, 24 years of Indonesian occupation and two-and-a-half years of interim rule by the UN.

Mr Gusmao, who spent six years in jail in Jakarta, made a point of arriving at the venue with President Megawati. Her presence at the ceremony had been in doubt.

A last-minute diplomatic row with Indonesia appeared to loom when six naval ships were sent to accompany her. They were later withdrawn after the East Timorese government protested. The two leaders held hands and raised them aloft, as the crowd cheered and clapped.

Attending the festivities were the former US president Bill Clinton, who officially repre sented the United States, the Australian prime minister, John Howard, and Portugal's president, Jorge Sampaio.

"Your freedom has been paid for by blood and sacrifice," Mr Clinton said.

Despite yesterday's euphoria East Timor wakes up this morning to a host of problems. The world's 192nd country is also one of its poorest. Some 70% of its people are unemployed, and the illiteracy rate is 43%. The World Bank says the average East Timorese lives on just 55 US cents a day.

"Our independence will have no value if all the people in East Timor continue to live in poverty and continue to suffer all kinds of difficulties," Mr Gusmao admitted in his inaugural speech last night. "We gained our independence to improve our lives." And East Timor's independence came with a heavy price.

Hundreds of thousands of East Timorese were killed during Indonesia's long occupation through forced migration, starvation and murder. Immediately after the vote for secession the Indonesian military and its militias went on the rampage, killing up to 2,000 people and bringing the country's independence struggle to international attention.

East Timor has set up a truth and reconciliation commis sion to reveal past crimes and help its citizens come to terms with them.

Its new leadership says perpetrators should be brought to justice but insists that nation-building, not revenge, should be the government's priority.

Trials are under way in the Indonesian capital of Jakarta to prosecute several military officers involved in the 1999 violence - but many human rights groups say the proceedings amount to a whitewash.

East Timor also wants to prevent disgruntled Indonesian officers from inciting pro-Jakarta militiamen still living in refugee camps in Indonesian West Timor.