Christopher Torchia, Dili – Rejecting a presidential promise of special status for their homeland within Indonesia, thousands of East Timorese demonstrated today for the right to vote for full independence.

More than 3,000 students and others gathered on the grounds of the state-funded University of East Timor.

"We want total independence. We want to be free," said Licinio Branco at the noisy but peaceful rally.

Organizers called for a full and free referendum on the future of East Timor, a former Portuguese colony invaded by Indonesian troops in December 1975 and annexed in January 1976. Since then, the territory has endured human rights abuses and separatist rebels have fought a guerrilla war.

The protest, organizers said, was the biggest since euphoric celebrations marked the awarding of the 1996 Nobel peace prize to Roman Catholic spiritual leader Bishop Carlos Belo.

Belo had asked the protesters to abandon plans to march through the streets of Dili, fearing it would only lead to a violent confrontation with the Indonesian military.

Demonstrators stayed safely on campus, raising their fists in the air and singing rebel songs. Some briefly held up outlawed rebel flags; others stood on rooftops and chanted anti-Indonesian slogans.

President B.J. Habibie signaled a possible easing of Indonesia's tight control over East Timor on Tuesday, saying he's ready to grant special status to East Timor in exchange for peace in the disputed territory.

In an interview with the British Broadcasting Corp., Habibie also said he had signed a decree to release 10 jailed East Timor rebels.

The new Indonesian leader emphasized, however, that special status did not mean political autonomy, and that imprisoned East Timorese rebel leader Xanana Gusmao would remain behind bars. He is serving a 20-year prison term in Jakarta's Cipinang Prison.

East Timorese activists said Tuesday's gesture was not enough for them to end their long-running guerrilla war against Indonesian rule.

"They are rehashing an old position, which requires first that the United Nations recognize the illegal annexation of East Timor by Indonesia," said Jose Ramos-Horta, a Nobel Peace Prize-winning independence activist for East Timor.

"Only then might they consider some wishy-washy 'special status' for East Timor," Ramos-Horta told The Associated Press in a telephone interview from Harvard University's John F. Kennedy School of Government.

"This is not a serious proposal, and I am stating unequivocally that we reject it."

Although the granting of special status for the territory would be largely a symbolic gesture, Habibie's offer is regarded as a significant shift in policy. Longtime President Suharto, who ordered the 1975 invasion, steadfastly refused to make any concessions toward East Timor.