The rebels - about 600 soldiers who were dismissed in March after complaining of discrimination within the military - left their military barracks in the capital, Dili, after clashing with loyalist forces in April and May.
Gunbattles between the police, loyalist army troops and renegade soldiers were followed by fights between street gangs that terrorized residents and left hundreds of houses torched, the AP reports.
The leader of the dismissed soldiers, former military police commander Lt. Cmdr. Alfredo Reinado, has said he prefers dialogue to force. He could not immediately be reached for comment Thursday.
Slater said the rebels have been "exceptionally cooperative." A handful of Australian forces are posted at the Portuguese, colonial-era villa where Alfredo is based.
The violence that erupted in late April led to the deaths of at least 30 people and forced more than 100,000 people to flee their homes in fear.
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