The world's newest nation took the reins of government into its own hands yesterday, passing its first law in the inaugural session of parliament, signing a treaty on oil and gas exploration and swearing in a new Cabinet.
Outside, exultant East Timorese reveled in the streets of the seaside capital, still celebrating the birth of their nation in a blaze of fireworks the night before.
Xanana Gusmao, the adored hero of the bloody 24-year guerrilla war against Indonesian rule, took his place as president on a stage before the colonial-era government headquarters and swore in the first prime minister and Cabinet.
Earlier, as the tropical sun rose over East Timor's first day of independence, truckloads of troops cruised the boulevards singing the national song Patria, Patria (Nation, Nation).
The flag of the resistance movement, raised when East Timor first declared independence on Nov. 28, 1975 -- Indonesia invaded nine days after that declaration -- hung from the new government's headquarters.
The flag was hoisted shortly after midnight overnight as parliament speaker Francisco "Lu Olo" Guterres proclaimed independence in front of 120,000 people at a gala ceremony outside Dili.
After the government was officially named, the 88-seat parliament was sworn in and held its inaugural session, passing its first law approving East Timor's membership of the UN and other world bodies.
Prime Minister Mari Alkatiri named a Cabinet of 25 members including himself, with women holding three portfolios -- justice, planning and finance and agriculture.
Alkatiri, who is also development and environment minister, signed a treaty with Australia guaranteeing the impoverished nation up to US$5 billion over 17 years in oil and gas revenues from the Timor Sea.
The agreement awards impoverished East Timor 90 percent of earnings from the joint area, giving it a lifeline to economic self-sufficiency in some three years.
Royalties from the energy developments, known as First Tranche Petroleum payments, will be locked away to earn interest for the future.
The world's newest state is the poorest in Asia, with a per capita GDP of US$478 and 41 percent of the 800,000 population living in poverty.
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