East Timor PM offers resignation

DILI, Feb 6 (AFP): East Timor resistance hero Xanana Gusmao has submitted his resignation as prime minister, the government said Friday, after more than a decade leading the half-island nation during the fraught early years of its independence.

The president must now decide whether to accept the resignation of the 68-year-old, who has served as either president or prime minister since East Timor became independent in 2002 following a long struggle against Indonesian occupation.

The departure of the former guerrilla fighter would deprive Asia's youngest nation of a unifying figure who has helped resolve numerous crises, but analysts say it is time for Gusmao to step aside to enable a transition to a new generation of leaders.

While he remains popular, Gusmao has struggled to fulfill his promises of improving livelihoods in one of the world's poorest countries, and diversifying an economy that relies heavily on abundant oil and gas reserves.

"The transition is starting now and I urge all parties not to panic," said Gusmao, who spent years living in the jungle when he was a resistance fighter. "We must all contribute towards stability."