[25] The 1997 Asian Financial Crisis, however, caused tremendous upheaval in Indonesia and led to Suharto's resignation in May 1998, ending his thirty-year presidency.

[27] The subsequent "reformasi" period of relative political openness and transition, included unprecedented debate about Indonesia's relationship with East Timor.

[28] On 8 June 1998, three weeks after taking office, Habibie, as Suharto's successor, announced that Indonesia would soon offer East Timor a special plan for autonomy.

[29] Indonesia and Portugal announced on 5 May 1999 that a vote would be held allowing the people of East Timor to choose between the autonomy plan or independence.

"[32] As militia leaders warned of a "bloodbath", Indonesian "roving ambassador" Francisco Lopes da Cruz declared: "If people reject autonomy there is the possibility blood will flow in East Timor.

[36] At the same time, Indonesian troops and paramilitary gangs forced over 200,000 people into West Timor, into camps described by Human Rights Watch as "deplorable conditions".

Australian Prime Minister John Howard consulted United Nations Secretary General Kofi Annan and lobbied U.S. President Bill Clinton to support an Australian-led international peacekeeping force to enter East Timor to end the violence.

The United States offered crucial logistical and intelligence resources and an "over-horizon" deterrent presence, but did not commit forces to the operation.

Habibie announced on 12 September that Indonesia would withdraw its soldiers and allow an Australian-led international peacekeeping force to enter East Timor.

The United Nations Transitional Administration in East Timor (UNTAET) was established at the end of October and administered the region for two years.

[49] The United States provided crucial logistic and diplomatic support throughout the crisis, while the cruiser USS Mobile Bay operated in open ocean at arm's length, whilst Australian, Canadian and British ships entered Dili.

A US Marine infantry battalion of 1,000 men—plus organic armour and artillery—was also stationed off the coast aboard the USS Belleau Wood to provide a strategic reserve in the event of significant armed opposition.