An Australian-led international peacekeeping force launched a raid to capture East Timor rebel Alfredo Reinado yesterday, killing four people, an Australian commander said. Reinado, who led a revolt that plunged the tiny nation into chaos last May, evaded capture and denied any of his men had been killed.

Reinado has been on the run since he escaped from jail in East Timor?s capital Dili in August along with 50 other inmates. President Xanana Gusmao ordered security forces to arrest Reinado following accusations the rebel led a raid on a police post. Reinado denied attacking the police post.

Reinado told Reuters he was willing to negotiate with the government but would not surrender to international troops. Australia has 800 troops to keep peace in East Timor following last year?s violence. The standoff between Reinado and the troops has raised fears of violence ahead of a presidential election next month.

East Timor voted in a 1999 referendum for independence from Indonesia, which annexed it after Portugal ended its colonial rule in 1975. The country became fully independent in 2002 after a period of U.N. administration.

But an east-west divide in the impoverished nation erupted into chaos and gang violence in May following the sacking of 600 soldiers. High youth unemployment also plagues the country.

<B>Lirio DA FONSECA</B>