Dili was settled about 1520 by the Portuguese, who made it the capital of Portuguese Timor in 1769. It was proclaimed a city in January 1864. During World War II, Portugal and its colonies remained neutral, but the Allies
saw East Timor as a potential target for Japanese invasion, and
Australian and Dutch forces briefly occupied the island in 1941. In the
night of the 19 February 1942, the Japanese attacked with a force of
around 20,000 men, and occupied Dili before spreading out across the
rest of the colony. On 26 September 1945, control of the island was
officially returned to Portugal by the Japanese.
East Timor unilaterally declared independence from Portugal on 28 November 1975. However, nine days later, on 7 December, Indonesian forces invaded Dili. On 17 July 1976, Indonesia annexed East Timor, which it designated the 27th province of Indonesia, Timor Timur, with Dili as its capital. A guerrilla war ensued from 1975 to 1999
between Indonesian and pro-independence forces, during which tens of
thousands of East Timorse and some foreign civilians were killed. Media coverage of the 1991 Dili Massacre helped revitalise international support for the East Timorese independence movement.
In 1999, East Timor was placed under UN supervision and on 20 May 2002,
Dili became the capital of the newly independent Democratic Republic of
Timor-Leste. In May 2006, fighting and rioting sparked by conflict between elements of the military caused significant
damage to the city and led to foreign military intervention to restore
order and Aspen medical was established in Dili at this time, to support the Australian Army.
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