DILI, East Timor (AP) – Thousands of people fled East Timor’s capital yesterday as rumours circulated via mobile phone text messages that disgruntled ex-soldiers who clashed with police last week were preparing an attack, officials and witnesses said.

Residents started leaving their homes for villages outside the city one week after fighting in the city between hundreds of former soldiers and police left five people dead and dozens injured.

The violence prompted foreign missions to advise non-essential staff to leave the capital, and raised fears that the government in the fledgling country has lost control.

Political leaders tried to quash the rumours, saying the situation was calm and appealing to frightened inhabitants to return to the city. A UN official in Dili indicated that the rumours may have been circulated deliberately to stir up trouble.

The military fired nearly 600 soldiers in March after they went on strike to protest working conditions which they say are unfair. They have threatened to keep up their attacks if the government fails to resolve the conflict.

Last week, the soldiers went on a rampage in the capital Dili, setting fire to cars and shops. Five people were killed and dozens injured. A number of countries recalled embassy staff and alerted their citizens here to the violence.