Malaysian troops were also on their way to East Timor, where violence in the capital Dili has left at least six people dead in recent weeks.

The inexperienced and cash-strapped government of the world's newest independent nation has been struggling to cope with clashes initially sparked by the sacking of around half the army.

A Reuters witness said there was widespread shooting in the capital on Thursday and some buildings had been razed. Foreigners as well as local residents were seen leaving the city.

"There have been exchanges of fire between the involved parties... The condition in Dili has made it difficult for people over there to move and nobody can go out of their houses," Arlindo Marcal, East Timor ambassador in Jakarta, told Reuters.

Despite a population under a million and a land mass only slightly bigger than the Bahamas, East Timor has been the scene of a complex international tug of war and a bloody independence struggle for 30 years.

This week the government asked for troops from Australia, New Zealand, Portugal and Malaysia after a police unit rebelled and its own forces proved incapable of calming the situation.

Australian Prime Minister John Howard told the Australian Parliament the commandos would "take immediate action to secure the perimeter of Dili international airport," adding the deployment followed a "significant" deterioration of security around the capital.

"Everyone is waiting for the arrival of the foreign troops," Marcal said. "When people heard that there would be foreigners coming in, the situation became calm last night."

Things deteriorated in the morning as various factions struggled to secure territory, he added.

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