Two injured in East Timor unrest

Violence has been blighting Dili in recent weeks

New violence has erupted in East Timor with clashes between security forces and ex-soldiers who were sacked earlier this year.

At least two people were wounded in a shootout near the capital, Dili, and there are reports of further skirmishes in the vicinity.

Five people were killed in similar clashes in the city last month.

Australia and New Zealand have offered to intervene to help East Timor deal with the unrest.

Gunfire broke out on the outskirts of Dili, apparently from hills where the ex-soldiers had set up camp.

One soldier was in a critical condition after the clashes, while a second had been shot in the leg, a hospital official told the Associated Press news agency.

East Timor has been plagued by unrest since nearly 600 soldiers were sacked for going on strike in March for better working conditions and to protest against what they described as favouritism in promotions.

The violence escalated, and in April five people were killed, many buildings were destroyed and tens of thousands of people fled Dili fearing further unrest.

Intervention

Australia has again offered to intervene in the situation. New Zealand also said it would be willing to help.

Australian Foreign Minister Alexander Downer said that his country was "ready to offer assistance to East Timor if it's needed, and if it's requested by the East Timorese government".

He said his government remained concerned about the situation in the fledgling nation, which officially gained independence in 2002.

"We've positioned some military assets in northern Australia, including naval vessels, aircraft and even some troops to enable a rapid response," he said.

Australia led a UN-military force into East Timor in 1999, to end the unrest sparked when the population voted for independence from Indonesia.