A ceasefire agreement was signed in Dili yesterday at the behest of the Indonesian armed forces chief, Gen Wiranto, under which pro-Indonesian militias who have been attacking unarmed civilians have undertaken to lay down their arms.
However, the situation in the East Timor capital remains volatile, according to a leading Catholic Church official in Dili, and expectations for an immediate improvement in the situation were "not very high" as the military remained "reluctant" to change its anti-independence tactics.
The agreement was signed in the grounds of the seafront house of Bishop Carlos Belo by pro-Jakarta militia leaders and simultaneously in Jakarta by the pro-independence guerrilla leader, Mr Xanana Gusmao, who is under house arrest.
Mr Gusmao is said to have signed only reluctantly as the agreement appeared designed to portray the army as the mediator between two warring factions. At least 32 people were massacred by pro-integration militias in Liquica two weeks ago and another 18 in Dili at the weekend.
The armed forces chief had flown to Dili on Tuesday as world criticism mounted over the role of the Indonesian military in encouraging the pro-Indonesian groups, mainly made up of unemployed labourers paid and armed by the Indonesian authorities.
The immediate agreement to end terror by the militias demonstrated the military's ability to control them and turn the violence on and off, according to a pro-independence observer. The six-point agreement bound the signatories to end hostilities, cease the use of terror, restrain militants on both sides, begin a process of disarmament, exercise restraint and work for reconciliation.
On the pro-independence side it was signed by Mr Liandro Isaac of the Council for National Timorese Resistance and Mr Gusmao, and on behalf of the pro-integration militias by the supreme militia commander, Gen Joao da Silva Tavares. The document was also signed by Gen Wiranto, the East Timor Governor, Mr Arbilio Soares, the Regent of Dili, Mr Domingos Soares, and the head of the police, Gen Timbul Silaen. A separate document witnessing the event was signed by Bishop Belo and East Timor's other bishop, Dr Basilio do Nasciento.
The leading pro-independence figure, Mr Manuel Carrascalao, whose son, Manuel (17), was murdered by the militias on Saturday and who is under police protection, also attended the ceremony under the palm trees in the gardens where the bishop says open-air Mass every Sunday.
One of the leading pro-integration militia groups, Besi Merah Putih (Red and White Iron), handed in 10 guns to the army as a gesture. However, Mr Manuel Abrantes, head of the Catholic Justice and Peace Commission who also attended the ceremony, said last night that the home of Mr Carrascalao was still occupied by the militias.
"It doesn't mean things will be stable or settle down and is not a complete ceasefire, but it gives some time for cooling down here," he said. "Our expectations are not too high."
East Timorese resistance leaders outside the former Portuguese colony also expressed scepticism about the truce. "It is such a display of cynicism and hypocrisy. They are the ones who are planning, masterminding the violence," said the Nobel Peace laureate, Mr Jose Ramos-Horta, who is in the US.
He dismissed any notion of Gen Wiranto playing a mediating role in the crisis in East Timor, which was invaded by Indonesia in 1975, comparing it to "asking Milosevic to mediate the conflict in Kosovo."
Mr Domingo Oliveira, secretary-general of the Timorese Democratic Union (UDT), said in Australia that the accord was just another "farce and trap" mounted by the Indonesian army. "It is the army that should put an end to the killings and massacres," he said.
A Dili militia leader, Mr Basilio Araujo, said that while the peace document did not include disarmament, militias had told Gen Wiranto they would lay down their arms. "What Wiranto told us is that starting from tomorrow [Wednesday] onward, after signing that document, nobody will be allowed to use any guns any more," he said.
The agreement comes on the eve of talks in New York today involving the Indonesian and Portuguese Foreign Ministers, Mr Ali Alatas and Mr Jamie Gama, and the UN Secretary-General, Mr Kofi Annan, on a proposal for autonomy to be put to the 800,000 East Timor inhabitants and East Timorese living abroad in the coming months.
Portugal is still recognised by the UN as the administrative power for East Timor. A ballot is expected in July but may be put back too September.