Dili – Most of the 400 East Timorese soldiers protesting against alleged discrimination bowed to President Xanana Gusmao's ultimatum to return to barracks and dispersed early Thursday from around the presidential palace.

A column of army and police trucks ferried some 200 military demonstrators to the army instruction center at Metinaro, 40 kms outside the capital, in mid-morning.

Officers told Lusa most other protesters had dispersed of their own accord overnight Wednesday, complying with an ultimatum given by Gusmao in a meeting with them.

Defense Force sources estimated "only 10 to 15" of the total 404 soldiers remained AWOL, but said a final tally would only be possible once the unarmed protesters reported back to their respective barracks.

As the truck convoy departed Dili, it drove past the president's Cinzas Palace without stopping in a sign of respect and thanks for Gusmao's role in resolving the affair.

After a second meeting with the AWOL soldiers Wednesday night, Gusmao promised an inquiry into their grievances and no reprisals if they returned to barracks by Thursday morning.

The soldiers, who spent most of Wednesday in and around the presidential complex, were protesting alleged discrimination in promotions and ill-treatment in the Defense Force.

Much of the anger centered on the commander of Baucau's 1 Battalion, Colonel Falur, whose replacement the protesters demanded.

A five-member inquiry commission, comprised of officers and lawmakers, has been set up to investigate the soldiers' accusations.