Dozens of protesters waved Fretilin party flags in Dili on Tuesday (August 7) as they protested the president's decision to choose Xanana Gusmao as prime minister. The move by President Jose Ramos-Horta broke a deadlock after no single party won a majority in parliamentary elections more than a month ago. Jose Ramos-Horta, an ally of Gusmao, the country's first president after independence from Indonesia, had said he would use his constitutional right to decide the composition of the new government if parties failed to do so. Riot police and tanks circled the area as protestors hurled rocks at them in the restive capital. CNRT, a party founded this year by Gusmao, declared a coalition with other parties in the 65-member parliament to form a majority after the June 30 election. The former ruling party Fretilin said the new government was unconstitutional. Alkatiri, a former prime minister, said Fretilin would challenge the legality of such a government, but would not mobilise supporters to engage in violence. But soon after the announcement, Fretilin supporters burned tyres and blocked roads in Dili, forcing police to fire tear gas, police commander Mateus Frenandez said. Factional bloodshed broke out in the impoverished country of about one million people last year, forcing tens of thousands of people to flee their homes. The mayhem, during which 37 people were killed, was triggered by Alkatiri's government decision to sack 600 soldiers. Fretilin won 21 seats in the 65-member parliament in the June poll, far short of the majority required to rule, while CNRT took 18 seats. Fretilin, which led East Timor's 24-year struggle against Indonesian rule, had argued that it won most votes in the polls. Ramos-Horta urged Fretilin supporters not to turn to violence. The United Nations welcomed the appointment of a new government, but issued a warning over violence. Fretilin has also threatened to withdraw from parliament if Ramos-Horta went ahead with his plans. The party had proposed the appointment of an all-inclusive government with an independent prime minister as a way to end the stalemate. Gusmao, a fighter-turned-politician who battled Indonesian forces in the hills for years before being captured, appears to have become increasingly frustrated by the pace of progress under Fretilin since independence five years ago.