East Timor coalition seeks power

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East Timor's former President, Xanana Gusmao, has proposed a coalition after the country's inconclusive elections.

The coalition would have a majority in the 65-seat parliament, but would exclude Fretilin, the single largest party after last week's poll.

Fretilin, which held power in the last parliament, saw its support slide from 57% to 29% of the electorate.

President Jose Ramos-Horta has to decide which politician will try to form the new government.

Mr Gusmao's Congress for the Reconstruction of East Timor won 24% of the vote, and it has now joined with the Association of Timorese Democrats-Social Democrat Party and the Democrat Party in a bloc which won a total of 51%.

"We hope this alliance is able to guarantee a strong and lasting majority," the parties said in a statement.

Fretilin's leader, Mari Alkatiri, had said talks were taking place with several other parties, but had ruled out a deal with Mr Gusmao's party.

Correspondents say the slide in support for Fretilin was largely due to popular anger at the slow pace of development since independence.

Fragile peace

More than 500,000 votes were cast in last Saturday's election, which was declared generally free and fair by European Union election monitors.

A fragile peace has existed in the impoverished country since violent feuding between rival units in the fledgling army and police forces spilled onto the streets in 2006.

Alkatiri resigned as PM in the wake of last year's violence

The clashes left more than 30 people dead, forced tens of thousands of people from their homes and led to the deployment of an international peacekeeping force.

Mr Alkatiri - who was forced to resign after last year's violence - has accused Mr Gusmao of authoritarian tendencies.

But Mr Gusmao used his campaign to tell supporters that Mr Alkatiri had already tried - and failed - to run a successful administration.

Parliamentary elections come a month after former Prime Minister Jose Ramos-Horta was elected president, vowing to end violence in the young nation.

Mr Gusmao chose not to seek a fresh term as president - a largely ceremonial role - preferring to seek the job of prime minister.

The former Portuguese colony of East Timor broke away from 25 years of Indonesian rule in a 1999 referendum. It was placed under UN protection until it achieved independence in May 2002.