Canberra – Australia said on Friday it appeared the Indonesian military was becoming less involved with East Timor's pro-Jakarta militias, accused by the United States of intimidation ahead of an August independence ballot.

"There's certainly some growing evidence that the Indonesian military, TNI, are taking a less engaged approach with the militias," said John Dauth, deputy secretary of Australia's foreign affairs department.

"If that is the case, then I think that is obviously a source of satisfaction that TNI is playing its proper role as the arbiter of security in East Timor," Dauth told a parliamentary inquiry into East Timor.

The UN-monitored vote on whether East Timor should break away from Indonesia has been twice delayed because of concerns about violence involving the militias, persistent unrest and logistical problems.

On Thursday, the United States said unidentified Indonesian officials and anti-independence militia leaders had engaged in intimidation by suggesting a vote for independence would result in extensive violence or even civil war.

US State Department spokesman James Rubin urged Jakarta to provide a secure environment for the campaign begining this weekend and make sure the August 30 vote was fair.

Anti-independence militias in East Timor have been accused by human rights groups and independence leaders of a campaign of terror in which dozens of people have been killed in recent months.

But Australia said on Friday the security situation in the troubled province was improving slightly and it expected the vote to go ahead as planned.

"The situation has been very serious, continues to be serious, continues to be far from perfect," said Dauth, adding "it's, in our view, showed some recent signs of slight improvement but is far from perfect." Dauth said the voter registration process, during which more than 430,000 East Timorese signed up, was encouraging. "The registration proceeded far more smoothly than I, for one, had judged was likely. It was a singular success."