PORT-AU-PRINCE - Haiti's Prime Minister late Wednesday declared a state of emergency and the country's interim president named a new national police chief to combat lawlessness and violence in the Caribbean nation.

Prime Minister Yvon Neptune declared a state of emergency to combat what he described as groups fomenting terror in the capital, and to restore calm to Haiti.

Mr. Neptune says vandalism and looting have caused $300 million worth of damage in Haiti over the past few days.

A state of emergency gives Haiti's government authority to suspend constitutional protections, however Mr. Neptune gave no indication he plans to do so. Mr. Neptune says a state of emergency will allow the resumption of normal life in Haiti.

Mr. Neptune called on all public employees to return to their jobs and says banks which have been closed for more than a week are expected to reopen on Thursday.

Haiti's interim president, Supreme Court Justice Boniface Alexandre has named the former head of Haiti's Coast Guard, Leonce Charles, as the country's new national police chief. Mr. Charles has a reputation for being honest and politically independent.

Opposition groups who have complained about political interference in Haiti's police force welcomed the appointment.

Following a meeting with the commander of U.S. Marines in Haiti, Colonel Mark Garganus, rebel commander and former regional police chief Guy Philippe called on his supporters to disarm.

Mr. Philippe says now that Jean Bertrand Aristide has left Haiti, and multinational troops are in the country, it was time for his forces to lay down their arms. U.S. officials say Mr. Philippe's pledge to disarm will greatly help stability in Haiti. There are now more than 1,000 U.S. Marines in Haiti. French commanders say they expect to have about 800 troops in the country by the end of Thursday.