Dili – Students clashed with police Tuesday in East Timor over plans to increase fees at the new country's main university.

About 300 students gathered outside the government building in the capital following news that annual fees at East Timor National University would jump from 15 to 100 dollars.

The demonstration turned violent, when protesters started throwing rocks and plastic bottles at local and international police officers guarding the building. No one was hurt or arrested, students said. Police could not be reached for comment.

"We are having these problems because of the government's poor policies," said Sebastiao Markues Soares, a university student. "My parents can't afford to pay my fees. They don't have a job."

The protest was the second in two days by students upset over rising prices and unemployment in the newly independent country.

East Timor is Asia's poorest nation and its independence from on May 20 was greeted by questions of how it would survive without the continued assistance of foreign donors.

Since then, many businesses in Dili have suffered as the UN transitional administration scaled back its presence on the half-island state.

Hikes in prices of fuel and basic foodstuffs such as rice and vegetables are also expected.