East Timor's President Xanana Gusmao took to Dili's troubled streets on Thursday, pleading with the country's feuding security forces to show national unity as foreign peacekeepers appeared to take control.
Isolated clashes between youth gangs - the product of East Timor's desperately poor economy and massive unemployment - were reported throughout the day, but the city appeared mostly calm as night fell on Thursday.
Gusmao, who on Tuesday assumed emergency powers and sole responsibility for security, went on a tour of the city, urging thousands of displaced residents to return to their homes and promising security would be restored soon.
A government official said the defence and interior ministers had now formally resigned. Changes in government were inevitable, Foreign Minister Jose Ramos-Horta, a winner of the Nobel Peace Prize, said earlier this week.
"The best thing you can do is go back to your homes," Gusmao told hundreds of people who swarmed around him as he visited a camp for displaced people near the United Nations headquarters.
"Let us deal with the security. Do not take matters into your own hands."
Rival gangs loosely allied to the armed forces went on a rampage of looting and arson last week after the government ordered feuding soldiers and police out of Dili, leaving the capital of the world's youngest nation without security.
The violence has deepened differences between Gusmao, a hero of East Timor's independence struggle, and Prime Minister Mari Alkatiri, whose sacking of 600 soldiers triggered the crisis.
A 2,500-strong Australian-led peacekeeping force is now on the ground in East Timor with the aim of disarming all police and soldiers, and taking full responsibility for security.
Force commander Brigadier Mick Slater says the majority of the army had surrendered their weapons, but that the police - seven of whom were gunned down by soldiers last week - were proving more reluctant.
"Today has been a good day," Slater said on Thursday evening. "There have been far fewer incidents."
Foreign troops were also with Major Alfredo Reinado, leader of the rebellious soldiers, east of the capital. He says the crisis would not end until Alkatiri resigned.
"The prime minister must go," he told the Australian Broadcasting Corporation. "He is responsible for this mess."
The soldiers were dismissed for mutiny after they went public with allegations of discrimination against Lorosae (eastern) troops by officers from Loromonu (the west).
The split is said to mirror the divide in the country leading up to the bloody referendum of 1999 when Timorese voted overwhelmingly for independence from Indonesia, which annexed the country after colonial masters Portugal withdrew in 1975.
Gusmao's tour of Dili was met by enthusiasm by residents who chased after his convoy as it went through the potholed streets of the ramshackle capital.
At the police headquarters, around 50 officers - including some women - who had surrendered their weapons stood in formation as Husmao addressed them.
"This is a time when the country needs unity, not fighting," he told them, accompanied by a small contingent of Timorese bodyguards as well as some Australian troops.
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