East Timor's independence leader Xanana Gusmao has thanked the international community for a pledge to donate more than $500m to help rebuild the devastated territory.

"We are grateful for the generosity and I must say that the amount of payment has gone beyond our expectations," Mr Gusmao told a conference of international aid donors in Tokyo.

Delegates from 30 countries and international agencies had gathered in the Japanese capital for a one-day meeting organised by the World Bank to discuss the reconstruction of East Timor.

True partnership

The pledge of almost $520m exceeds the World Bank's estimate that the cost of reconstruction would need up to $300m.

The territory was devastated when pro-Indonesian militias went on the rampage after the East Timorese voted against integration with Indonesia in August.

Every sector from agriculture to schools needs to be rebuilt and institutions, such as civil service and the justice system, need to be organised.

Some of the money will be used immediately for humanitarian aid, while a large chunk of it will be put into trust funds and administrated by the World Bank and United Nations.

The donors said $370m would be used to cover the costs of running East Timor and for development and reconstruction efforts over the next three years.

Mr Gusmao had earlier called for a true partnership with the international community.

Guarding against corruption

"Our people who have suffered so much deserve not only financial assistance. They deserve assistance which is given with respect, consideration and love," he told the conference.

Mr Gusmao was captured by Indonesian troops in 1992 and sentenced to life imprisonment. After East Timor voted for independence in August, he was released, and is tipped to become the territory's first head of state.

He told delegates that decision-making should be left to local governments, and warned of the need to guard against corruption.

"We face a big challenge. There has been destruction in East Timor," he told Japanese MPs at a later reception. "There are no homes, no food. Some people even have no clothing."

Japan has said it will also provide aid to non-governmental organisations helping East Timorese refugees and send a mission to investigate further needs.