By Anne Barker in Dili
East Timor's capital Dili has descended into a near riot as thousands of people tried to storm a Government warehouse in search of food.
The tiny nation is facing a growing shortage of food.
Several thousand people flocked to a storehouse in central Dili this morning which stores emergency sacks of rice.
Government authorities have begun distributing rice on a daily basis but as food supplies elsewhere dry up, the people are becoming more desperate.
This morning they tried to storm the warehouse, while others who received rice were mobbed by looters as they tried to wheel it away on wooden carts.
Australian troops were called in to control the crowds and stop any looting.
The World Food Program says the situation is urgent because normal food supplies from shops and markets are not available.
The aid agency is diverting supplies from other projects.
Australia's aid agency AusAID is sending $1 million worth of food and medical supplies to Dili.
East Timor's Foreign Minister Jose Ramos Horta has warned of a humanitarian crisis if those in refugee camps do not begin returning home.
The commander of Australian troops in East Timor Mick Slater says it is now safe to do so.
Across town the talks are continuing to resolve the political deadlock over who should govern East Timor.
Despite pressure for him to resign, Prime Minister Mari Alkatiri seems likely to survive as leader.
Violence
The commander of one battalion in East Timor, Lieutenant Colonel Mick Mumford, says the incidence of shootings and house fires has dropped.
Lieutenant Colonel Mumford says his troops have confiscated hundreds of weapons, and he is confident it is now safe for thousands of displaced people to return home.
"It is very reasonable to tell them to go home because it is safe, and while there might be some gangs out there our guys are out there too and they're finding them, they're disarming them and those individuals are going back to their homes as well," he said.
Meanwhile, one of the East Timorese police officers injured in fighting in Dili last week remains in a critical condition in Royal Darwin Hospital.
The man has gunshot wounds to his chest, spine and stomach and he is expected to have further surgery today.
His condition is reported to be improving.
Nine other evacuees injured in the fighting, including an Indonesian man airlifted to Darwin last night, are listed as being in a serious condition.
NZ troops
New Zealand troops have arrived in Darwin to help strengthen Australia's peacekeeping efforts in East Timor.
One-hundred-and-twenty New Zealand troops left Townsville this morning.
A Royal New Zealand Air Force 757 carrying the soldiers landed at Darwin's RAAF base this afternoon.
The contingent will most likely spend the night in Darwin before heading to Dili tomorrow to help bolster the Australian-led peacekeeping force.
They will join 42 other New Zealand soldiers already on the ground.