Early Portuguese presence on Timor was very limited; trade was directed through Portuguese settlements on nearby islands. Only in the 17th century did they establish a more direct presence on the island, a consequence of being driven out of other islands by the Dutch.[29]: 267  After Solor was lost in 1613, the Portuguese moved to Flores. In 1646, the capital moved to Kupang on Timor's west, before Kupang too was lost to the Dutch in 1652. The Portuguese then moved to Lifau, in what is now Timor-Leste's Oecusse exclave.[32]: 90  Effective European occupation in the east of the island only began in 1769, when the city of Dili was founded, although actual control remained highly limited.[34] A definitive border between the Dutch and Portuguese parts of the island was established by the Permanent Court of Arbitration in 1914 and remains the international boundary between the successor states Indonesia and Timor-Leste, respectively.[35] For the Portuguese, East Timor remained little more than a neglected trading post, with minimal investment in infrastructure and education, until the late nineteenth century. Even when Portugal established actual control over the interior of its colony, investment remained minimal.[29]: 269, 273  Sandalwood continued to be the main export crop and coffee exports became significant in the mid-nineteenth century.[30] At the beginning of the twentieth century, a faltering domestic economy prompted the Portuguese to extract greater wealth from its colonies, which was met with East Timorese resistance.[31] The colony was seen as an economic burden during the Great Depression and received little support or management from Portugal.[29]: 269  During World War II, Dili was occupied by the Allies in 1941, and later by the Japanese beginning in 1942. The mountainous interior of the colony became the scene of a guerrilla campaign, known as the Battle of Timor. Waged by East Timorese volunteers and Allied forces against the Japanese, the struggle killed between 40,000 and 70,000 East Timorese civilians.[36] The Japanese eventually drove the last of the Australian and Allied forces out in early 1943.[37] Portuguese control resumed, however, after Japanese surrender at the end of World War II.[38] Portugal began investment in the colony in the 1950s, funding education and promoting coffee exports, but the economy did not improve substantially and infrastructure improvements were limited.[29]: 269  Yearly growth rates remained low, near 2%.[39] Following the 1974 Portuguese revolution, Portugal effectively abandoned its colony in Timor, and civil war between East Timorese political parties broke out in 1975. The Revolutionary Front for an Independent East Timor (Fretilin) resisted a Timorese Democratic Union (UDT) coup attempt in August 1975,[40] and unilaterally declared independence on 28 November 1975. Fearing a communist state within the Indonesian Archipelago, the Indonesian military launched an invasion of East Timor on 7 December 1975.[41] Indonesia declared East Timor its 27th province on 17 July 1976.[42] The United Nations Security Council opposed the invasion, and the territory's nominal status in the UN remained as "non-self-governing territory under Portuguese administration".[43] Indonesian occupation (1975–1999)[edit] Main articles: Indonesian occupation of East Timor and Timor Timur A demonstration for independence from Indonesia held in Australia during September 1999 Fretilin resisted the invasion, initially as an army, holding territory until November 1978, and then as a guerrilla resistance.[44] The Indonesian occupation of Timor was marked by violence and brutality. A detailed statistical report prepared for the Commission for Reception, Truth and Reconciliation in East Timor cited a minimum of 102,800 conflict-related deaths in the period between 1974 and 1999, including approximately 18,600 killings and 84,200 excess deaths from hunger and illness. The total number of conflict-related deaths during this period is difficult to determine due to a lack of data. One estimate based on Portuguese, Indonesian, and Catholic Church data suggests it may have been as high as 200,000.[45] Repression and restrictions counteracted improvements in health and education infrastructure and services, meaning there was little overall improvement in living standards; economic growth mostly benefited immigrants from elsewhere in Indonesia.[29]: 271  A huge expansion of education was intended to increase Indonesian language use and internal security as much as it was for development.[46] The 1991 massacre of more than 200 demonstrators by the Indonesian military was a turning point for the independence cause, and brought increased international pressure on Indonesia. Following the resignation of Indonesian President Suharto,[44] the new President BJ Habibie, prompted by a letter from Australian Prime Minister John Howard, decided to hold a referendum on independence.[47] A UN-sponsored agreement between Indonesia and Portugal allowed for a UN-supervised popular referendum in August 1999. A clear vote for independence was met with a punitive campaign of violence by East Timorese pro-integration militias supported by elements of the Indonesian military. In response, the Indonesian government allowed a multinational peacekeeping force, INTERFET, to restore order and aid East Timorese refugees and internally displaced persons.[48] On 25 October 1999, the administration of East Timor was taken over by the UN through the United Nations Transitional Administration in East Timor (UNTAET).[49][50] INTERFET deployment ended in February 2000 with the transfer of military command to the UN.[51] Contemporary era[edit] See also: East Timor independence and United Nations Administered East Timor José Ramos-Horta, 1996 Nobel Peace Prize winner, fourth and seventh president of Timor-Leste On 30 August 2001, the East Timorese voted in their first election organised by the UN to elect members of the Constituent Assembly.[16][52] On 22 March 2002, the Constituent Assembly approved the Constitution.[16] By May 2002, more than 205,000 refugees had returned.[53] On 20 May 2002, the Constitution of the Democratic Republic of Timor-Leste came into force and Timor-Leste was recognised as independent by the UN.[52][54] The Constituent Assembly was renamed the National Parliament, and Xanana Gusmão was elected as the country's first president.[55] On 27 September 2002 the country became a UN member state.[56] In 2006, a crisis of unrest and factional fighting forced 155,000 people to flee their homes; the United Nations sent in security forces to restore order.[57][58] The following year, Gusmão declined to run for another term. While there were minor incidents in the build-up to the mid-year presidential elections, the process was peaceful overall and José Ramos-Horta was elected president.[59][60] In June 2007, Gusmão ran in the parliamentary elections and became prime minister at the head of the National Congress for Timorese Reconstruction (CNRT) party. In February 2008, Ramos-Horta was crit