Our correspondent Jonathan Head reports that about 100 pro-Jakarta militiamen are on the rampage, and fired automatic weapons near the offices of the UN Mission in East Timor (Unamet).

He says Indonesian troops who were in the area made no attempt to halt the violence, saying they were not allowed to intervene under the current UN agreement.

David Wimhurst: "The situation is deteriorating"

Indonesian police have confirmed that at least one person was killed near the UN building.

Police also say the UN building is now secure, and that at least 100 people who had taken shelter inside the building are safe.

The BBC's David Shukman: "There were running battles on the streets"

Earlier attempts to secure the building were halted when militia away both the Indonesian police and UN civilian police.

The militia set fire to at least two nearby buildings, and beat and chased journalists who were in the area.

There are reports that the Indonesian government has sent additional police to East Timor.

Roadblocks

Buildings have been set alight in Dili

The militia set up roadblocks and started taking control of the streets in Dili as officials began counting votes from Monday's referendum on the territory's future.

Their show of force, which began at the funeral of an Aitarak member who died in fighting at the weekend, signals opposition to a vote which is widely believed to favour independence.

Opponents of independence are reported to have withdrawn their witnesses from the vote counting process.

The BBC's Matt Frei sought refuge in the UN compound

"We have been embarrassed by Unamet throughout the last two months and we do not want to be used now," an official of the United Front for Timor's Autonomy told Portuguese radio.

The UN, which supervised the vote, is withdrawing its election volunteers and deploying more unarmed police and military advisers in response to an increasingly insecure situation.

A UN spokesman expressed disappointment at the failure of the Indonesian police to maintain order.

Refugees

The BBC's Jonathan Head talks us through why he got beaten at the hands of the rebels

Residents of Dili are seeking shelter in the surrounding hills.

"When the bullets fly the children and old people can't escape - we'll be safer up there," one man told the BBC as he prepared to leave his home

Up to eight supporters of independence have been killed in the town of Hera, near Dili, where automatic gunfire was heard throughout Tuesday night.

Gangs roam the streets of the capital and have set up roadblocks

The UN said one of its local officers was killed on Monday and two others are missing, also feared dead.

In the town of Gleno, 45km from Dili, pro-Indonesia militias fired warning shots at one UN helicopter as it swooped down to collect ballot boxes.

The ballot asked East Timorese whether they wanted to become independent or remain part of Indonesia as an autonomous region. About 98.6% of eligible voters turned out.

The results, which will be announced in a week, are expected to show that a majority of people voted for independence.