New E Timor parliament sworn in

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East Timor's newly-elected parliament has been sworn in, as political wrangling continues over who will form a new government.

The two main parties have failed to agree on who should take charge after neither won a majority in elections held exactly a month ago.

President Jose Ramos-Horta has warned he will make the decision himself if no agreement is reached by Monday.

The election was seen as a fresh start for the young, impoverished nation.

A fragile peace has held in the tiny nation since violent feuding between rival units in the fledgling army and police forces spilled onto the streets in mid-2006.

Deadlock

In their inaugural session, the new 65 members of parliament elected Fernando de Araujo of the Democratic Party as parliamentary speaker.

He beat off the candidate for the much larger Fretilin party, and promised to lead a body that "represents national interests, not those of individuals or certain parties".

However, deadlock remains over who will take up the post of prime minister.

Fretilin said it had the right to form a government after winning the largest number of seats, 21, in the election.

Fretilin is headed by Mari Alkatiri, East Timor's first post-independence prime minister who was forced to stand down after the 2006 clashes that left more than 30 dead and thousands displaced.

His main rival is former president and independence hero Xanana Gusmao, who formed the National Congress for the Reconstruction of East Timor (CNRT) to fight the elections.

The CNRT only won 18 seats, but has sought to form a coalition government with two smaller parties.

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.