July Portugal unilaterally withdraws from East Timor. December 7 Indonesia invades East Timor. July 17 President Suharto signs a Bill annexing East Timor as Indonesia's 27th province. Australia gives de facto recognition to Indonesia's incorporation of East Timor. Papal visit to East Timor.
Indonesian police attack democracy demonstrators.
Indonesian President B J Habibie announces the East Timorese will be allowed to vote on independence or autonomy within Indonesia. Xanana Gusmao to be moved from prison to house arrest in Jakarta. Gusmao orders resumption of insurrection campaign, after pro-Jakarta militias kill 17 people. Pro-Indonesian militias kill 40 villagers inside priest's house in Liquica. Militias kill another 21 in Dili.