Peace prize winner to lead East Timor

DILI, East Timor -- Nobel peace laureate Jose Ramos-Horta was named East Timor's new prime minister yesterday, shouldering the responsibility for restoring stability in the young nation after months of violence and political turmoil.

President Xanana Gusmao announced the formation of a new government, filling a void created when former prime minister Mari Alkatiri resigned last month amid allegations he formed a hit squad to kill his political opponents.

Many in East Timor blame Alkatiri's dismissal of 600 soldiers for street battles in May that erupted in the capital between police and army units and later spilled into gang warfare, looting, and arson. At least 30 people were killed and 150,000 others forced from their homes.

The recent violence was the worst to hit the country of less than one million people since its 1999 vote for independence after 24 years of Indonesian rule. Though the violence eased with the arrival of 2,700 foreign peacekeepers six weeks ago, isolated incidents still occur.