Haiti's rebel leader said last night he was disarming his forces and retreating from the streets of Port-au-Prince.
The decision by rebel leader Mr Guy Philippe, whose month-long revolt led to President Jean-Bertrand Aristide's downfall, came after a brief meeting with the top US military official in Haiti. He was told the United States expected him to honour his word and disarm.
Hours later, Prime Minister Yvon Neptune declared a state of emergency, allowing the government to suspend certain constitutional rights such as press freedoms and the right to demonstrate.
"We have decided to lay down our arms," said Mr Philippe a day after announcing that he was chief of the military and police in defiance of the United States, which is heading a UN-authorised mission to restore order.
"The Front from now on has no men patrolling the streets," Mr Philippe told reporters, referring to the rebel forces.
Mr Philippe, a former police chief, said he had made the decision because international security forces were moving to disarm Mr Aristide supporters. But the US military commander in Haiti said the multinational force, which now numbers more than 1,700 American, French and Canadian troops, was not taking sides.
Over a thousand people marched by the US marine-guarded National Palace in support of Mr Aristide, who was forced from office on Sunday by the armed revolt and by international pressure.