By CHRISTOPHER TORCHIA
The Associated Press
Friday, June 2, 2006; 5:06 AM

DILI, East Timor -- The violence that swept East Timor in 1999 was a clear-cut conflict between mostly unarmed civilians eager for independence and vengeful militias backed by Indonesia, the former occupier.

Nearly seven years later, the unrest that has ravaged the capital of independent East Timor in past days stems from a murky mix of political rivalry, economic stagnation and prejudices festering since Indonesia's brutal, 24-year hold on the former Portuguese colony.

Two broad factions _ one tied to the country's east, the other based in the west _ have emerged among the players in East Timor's recent turmoil, who include the military and police, street gangs, government ministers and civilian victims. Tens of thousands of people have fled their homes, and Australian-led peacekeepers are trying to keep order.

Those from the east, or Lorosae, which means "where the sun rises" in the local Tetum language, are said to be die-hard supporters or veterans of the independence fight. Among them are old, grizzled guerrillas who spent many years in mountain hideouts, mostly in the east.

Those from the west of the country, or Loromonu, which means "where the sun sets" in Tetum, are said to have poor credentials in the separatist movement.

The pro-Indonesian militiamen who laid waste to East Timor after it voted for self-rule in 1999 were recruited heavily in the west, which borders the Indonesian region of West Timor. East Timor became independent in 2002 after an interim U.N. administration.

But many people in the western part of the country opposed the Indonesian occupation as much as easterners, and held leadership positions in the separatist movement. Any differences had rarely been a source of conflict in the past.

The situation was once similar to the way California and New York look at each other: some good-natured jibes here and there, but nothing more.

"If you look at the history of this country, there was never a war fought between regions," said Foreign Minister Jose Ramos Horta, a Nobel Peace Prize winner. "This whole east-west division, it's only a geographic expression."

The spark for the recent violence was a rebellion by 600 dismissed members of the 1,400-member army who had complained about discrimination by their commanders, led by Taur Matan Ruak, a former guerrilla who mostly operated in the east. The rebels, many of whom are from the west, fled to the hills.

The police, some of whom served under Indonesian authority, are also perceived as members of the western camp, though suspicions about their loyalty were never substantiated. Last week, 10 of them were shot dead as they tried to surrender to loyalist soldiers.

Rivalries at top levels of East Timor's fledgling government also appear to have fueled tension. Rogerio Lobato, who resigned as interior minister on Thursday, had formed special police units that some East Timorese viewed as an attempt to bolster his personal power.

Prime Minister Mari Alkatiri is also a polarizing figure whose opponents from east and west seek his ouster. "We hate Alkatiri," read a protester's banner on Thursday outside government offices in a colonial-era building on the waterfront.

Alkatiri is unpopular because he is perceived as haughty, given to playing favorites and thin-skinned about criticism, sometimes lambasting newspaper editors if he is unhappy about a report. He is one of a small number of Muslims in mostly Roman Catholic East Timor, and does not have close ties to the church.

Under the constitution, Alkatiri can only be removed in a vote of no-confidence in Parliament, but lawmakers are unlikely to convene soon because of security concerns. The prime minister appears intent on staying in power, though his top Cabinet allies, the interior and defense ministers, have quit to help defuse the crisis.

President Xanana Gusmao, a former guerrilla leader and independence hero, is navigating among the factions, using his stature to try to unify a bruised and bitter population.

Political observers say there is no sign that outside forces, including Indonesia or elements in the Indonesian military, are trying to foment unrest in East Timor.

However, a mob recently stole or destroyed prosecutors' evidence of 1999 massacres during the break with Indonesia, raising the possibility that those involved in the old killings might be active today.

The scourge of high unemployment is also a factor, with gangs of young men burning shops and cars seemingly at random, though many declared allegiance to "east" or "west" as a rallying cry.

The city of Dili was a flashpoint because many residents are relatively new arrivals, and the so-called divide between east and west flourished in neighborhoods with weak bonds. The rest of East Timor, so far, is peaceful.