Dili – The threat of violence from pro-Indonesian militias opposed to East Timor's independence has decreased significantly, raising hopes that thousands of peacekeepers may soon be able to go home, a U.N official said Friday

UN peacekeeping spokesman Lt. Col. Jan Fredrik Drangsholt said militia activity on the border with Indonesia's West Timor province had practically ceased over the last 12 months. "The problems we now have on the border are illegal markets and smuggling," he said in East Timor's capital, Dili. "This is a matter for police and customs to deal with, not the military."

There are currently around 8,000 peacekeepers in East Timor, of which 2,000 are based along the border with West Timor.

An Australian-led international force first arrived in East Timor in September 1999, after Indonesian troops and their proxy militia bands laid waste to the country following its overwhelming vote for independence from Indonesian rule. UN troops drawn from several countries, including Australia, New Zealand and the territory's former colonial power Portugal, arrived shortly thereafter.

The militias, along with around tens of thousands of refugees, fled to Indonesian West Timor from where they continued to launch sporadic raids. Two peacekeepers were killed last year in border incidents. East Timor is being governed by a transitional UN administration until it gains full independence in May.

Drangsholt said peace initiatives to encourage former militia to return to East Timor to face justice had reduced tension. This week, independence leader Xanana Gusmao traveled to West Timor to appeal for reconciliation and persuade refugees to come home. Returning militiamen in Dili have said that the Indonesian army is no longer providing them without finance or weapons to continue their campaign.

The reduction in violence has prompted hopes that peacekeepers will be able to leave by 2004. "Peacekeepers will not move out of the country until the East Timorese can take over and run things smoothly, but they would like to leave as soon as possible," Drangsholt said.

The UN force has already begun to withdraw in the central and eastern areas of the country. By May, the force is expected to be reduced to 5,000 soldiers. Planners expect it will be down to 2,500 by January 2003.

International experts are training East Timor's nascent defense to take over security duties in the county when peacekeepers leave. The first of two active battalions of East Timorese troops is due to graduate this weekend.

The defense force will also include an independent infantry company based in the isolated enclave of Oecussi, along with two reserve battalions and logistics and communications units. A small naval component equipped with two patrol boats is also planned.