Leo Shanahan – East Timorese rebel leader Alfredo Reinado has vowed not to give himself up and says he is willing to shoot at Australian troops.

Reinado was contacted at his jungle hide-out by SBS program Dateline last night, but refused to confirm his location because "there are Australian troops hunting me around, chasing me around".

The fugitive escaped last week from Dili's local jail with 56 other men. He confirmed that he has been in contact with Australian troops and indicated he was willing to negotiate.

"I do have communication, been communicating with them. I just let them know that, 'don't come after me, because I am not a problem of this nation'. The Government is the problem of the nation and my people will not let that happen. I'm willing to talk to any one, to talk, to do any dialogue, anything but to hand over myself, no way," Reinado told SBS.

He said he was armed and willing to fire upon Australian troops if necessary: "When they after me, I will stop them. If they shoot me, I will shoot them back, because I have a right to protect myself in my country."

His escape has once again put East Timor on the edge, with international forces already struggling to curb gang violence.

He also confirmed that he was in contact with East Timorese President Xanana Gusmao and was "always loyal" to the President.

Reinado and his rebel troops were blamed for the outbreak of violence in May that eventually led Australian troops to return to the fledging nation.

He criticised new East Timor Prime Minister Jose Ramos Horta, accusing him of siding with former prime minister Mari Alkatiri. "Ramos Horta is not in favour with the people any more. Because he's part of the Mari Alkatiri club... Ramos Horta, of course, has betrayed me."

Prime Minister John Howard dismissed Reinado's threats as propaganda. "I think Australian soldiers can handle that situation. I have every confidence in (Australian commander) Brigadier (Mick) Slater," Mr Howard said.