EAST TIMOR'S EMBATTLED PRIME MINISTER ANNOUNCED HIS RESIGNATION MONDAY, SETTING OFF CELEBRATIONS IN THE VIOLENCE-SCARRED CAPITAL AND RAISING HOPES FOR AN END TO WEEKS OF POLITICAL TURMOIL AND UNREST. PRIME MINISTER MARI ALKATIRI, WHO IS BATTLING ALLEGATIONS THAT HE FORMED A HIT SQUAD TO SILENCE OPPONENTS, HAS FACED MOUNTING CALLS TO STEP DOWN, INCLUDING FROM THE COUNTRY'S POPULAR PRESIDENT. «I DECLARE I AM READY TO RESIGN FROM MY POSITION AS PRIME MINISTER,» ALKATIRI TOLD REPORTERS WHO GATHERED AT HIS HOME IN DILI. MANY SAY ALKATIRI'S DISMISSAL OF 600 DISGRUNTLED SOLDIERS IN MARCH WAS TO BLAME FOR STREET BATTLES AND GANG WARFARE THAT LEFT AT LEAST 30 PEOPLE DEAD AND FORCED NEARLY 150,000 OTHERS TO FLEE THEIR HOMES. IT WAS THE WORST VIOLENCE SINCE THE NATION VOTED FOR INDEPENDENCE FROM INDONESIA SEVEN YEARS AGO, THE ASSOCIATED PRESS REPORTED. ALKATIRI READ A STATEMENT SAYING HE WANTED TO SHARE RESPONSIBILITY FOR THE «CRISIS AFFECTING OUR COUNTRY» AND TO AVOID THE RESIGNATION OF PRESIDENT XANANA GUSMAO, WHO HAD THREATENED TO STEP DOWN IF THE PRIME MINISTER DID NOT. GUSMAO, WHO LED EAST TIMOR'S ARMED RESISTANCE AGAINST 24 YEARS OF INDONESIAN ROLE, ENJOYS NEARLY UNANIMOUS SUPPORT IN A COUNTRY OF 800,000 THAT IS DIVIDED ALONG POLITICAL AND SOMETIMES ETHNIC LINES. HE SAID ALKATIRI NO LONGER HAD THE TRUST OF THE PEOPLE, WHO HAVE POURED INTO THE STREETS IN RECENT DAYS TO EXPRESS THEIR DISPLEASURE.