In a report from the territory, Lusa quoted members of the resistance movement against Indonesian rule in East Timor as saying that the two men died during an attack on a student dormitory in the town, 140 km southwest of the capital, Dili.

Concerned by the ongoing violence in East Timor, Australian Prime Minister John Howard has voiced his anxiety for the safety of Australians in the country, but he said an evacuation was not yet warranted.

"I do not believe the situation has reached that point," Howard told Australian Radio. "But we are ready and we will of course execute any evacuation plan if that becomes necessary.

"We remain concerned but not alarmed about the safety of Australians," Howard said. There are 200 to 300 Australians in the bloodied territory.

Australian forces are on stand-by to evacuate Australians from East Timorafter last Monday's UN-run referendum on independence.

The vote, expected to put the Indonesian-ruled territory on the path to independence, has been followed by clashes between pro-independence supporters and pro-Jakarta militias.

Indonesia invaded East Timor, a former Portuguese colony, in 1975 and annexed it in 1976 in a move not recognised by the United Nations.

Meanwhile, ministers from Asia-Pacific countries are likely to have talks on East Timor in Auckland next week if the situation remains unstable, New Zealand Prime Minister Jenny Shipley told a press conference on Friday.

She said New Zealand supported a Canadian initiative for talks by foreign ministers who will be in New Zealand to attend meetings of the Asia-Pacific Economic Cooperation (APEC) forum.

But Shipley said the talks would be held outside the formal procedures of APEC, which is an economic body.

"Canada has sought to take the lead," she said. "A number of countries who have an interest in this have expressed enthusiasm tobe part of that discussion."

She said a meeting would depend on developments following announcement of the result of the independence or autonomy ballot.

"I believe that if there is still a major question over stability in East Timor there are very likely to be meetings around APEC," she said.

Shipley confirmed that Indonesian President B J Habibie was expected to attend the APEC summit on September 12-13.