President Habibie of Indonesia and parliamentary leaders say elections are planned for next year once political reforms have been enacted.

The speaker of the Indonesian parliament, Harmoko, said a special team would be appointed to speed the liberalisation of Indonesia's tightly-controlled political system.

In the first sign of such liberalisation, a British minister, Derek Fatchett, was allowed to visit the jailed East Timorese leader, Xanana Gusmao, inside a top security prison and hold a joint press conference with him.

Mr Gusmao is serving a twenty-year sentence for armed rebellion.

Mr Fatchett called for his release.

Two political prisoners were released on Tuesday and the authorities say more are to be freed soon.