Human rights/law

Leaders reject international tribunal

Green Left Weekly - June 26, 2003

Vannessa Hearman -- On the eve of an official visit to Jakarta, Timorese PM Mari Alkatiri on May 30 called for an international tribunal in a "neutral country" to try those responsible for serious crimes in his country in 1999. He likened the current Indonesian trials to "a piece of theatre".

However, on June 11 foreign minister Jose Ramos Horta said East Timor would not press for an international tribunal and that it wasn't on the government's agenda. He refused to comment on the trials of 18 people currently being held in Indonesia, in regard to 1999 crimes.

During the Jakarta trip, on June 12, Horta said Indonesia had made a "tremendous effort" on the trials front. The next day, on a visit to Singapore, according to the Straits Times, Horta said that the government was leaving the 1999 events well behind it, and concentrating instead on jobs and reconstruction. He praised the Indonesian government for showing "true statesmanship" in its relations with East Timor.

Amnesty Alkatiri went one step further, calling for an amnesty for all those in prison for crimes committed in 1999. He even criticised some of the sentences handed down by the United Nations Serious Crimes Unit (SCU) in Dili as "excessive". In an interview with the Portuguese news agency Lusa, Alkatiri said that Timorese leaders must "look for a pragmatic approach that allows relations [with Indonesia] to progress".

In 2001, Timorese President Xanana Gusmao had also called for an amnesty to encourage the remaining Timorese refugees to return from the camps in West Timor. His comments shocked many Timorese and, until Alkatiri's recent statement, they were seen as a poorly conceived tactic to encourage returnees.

Alkatiri says an amnesty for those in prison for committing crimes in 1999 is fair given that Indonesian military officers are unlikely to ever stand trial. In February, Gusmao and Ramos Horta criticised the SCU's indictment against former Indonesian military chief Wiranto for crimes against humanity. They argued that it had no jurisdiction in an independent East Timor.

The prosecution of serious crimes was a part of the mandate of United Nations Transitional Administration in East Timor, as contained in UN Security Council Resolution 1272. Even though the UN retains the authority to investigate and prosecute serious crimes committed in 1999, even after independence, the UN mission also disassociated itself from the Wiranto indictment.

In a May 13 letter, the National Alliance for an International Tribunal for East Timor, consisting of a range of Timorese NGOs and victim support groups, condemned the UN for shirking its responsibilities.

Predictably, Wiranto welcomed the UN and Timorese leaders' statements against his indictment, arguing that the SCU had no legal standing. PM Alkatiri also criticised the SCU's US$4 million budget, arguing that it is too large relative to US$150,000 for the entire legal system.

The UN has already reduced its international prosecutors from 13 to nine, and will not guarantee the SCU beyond June 2004. With no prosecutions against senior military officers, either in Indonesia or internationally, the serious crimes panels were the only mechanism the Timorese had to see justice done.

Trials Some militia members are serving long sentences following trials in East Timor. One of them, Joni Marques, is a leader of the Los Palos-based Tim Alfa militia. He was convicted for a series of crimes including the murder of nine people in a roadside ambush, among them clergy members and a journalist. Marques was sentenced in 2001, together with eight other militia members, to more than 33 years' jail. During the Tim Alfa trial, Syaiful Anwar, an Indonesian military officer, was accused of slitting the throat of an alleged independence supporter.

The indictment issued in April for the Suai Church massacre on September 6, 1999 listed eight members of the Indonesian army (TNI), including the district and sub-district commanders, the former Indonesian district civilian administrator (also a TNI officer), the former Indonesian district chief of police and six East Timorese TNI soldiers.

They were charged with 31 counts of crimes against humanity, including murder, extermination, enforced disappearance, torture, deportation and persecution committed against the civilian population of the district. However, Indonesia has refused to allow the extradition and trial of anyone indicted by the SCU.

The UN, as the former transitional government, argued that Indonesia must first try those accused of crimes against humanity in 1999. This is despite a UN recommendation in 2000 for an international tribunal.

An Indonesian tribunal specifically focused on East Timor was only set up in 2001. Until then, cases such as that of Tim Alfa were tried under international law by the serious crimes panels consisting of three judges in Timorese courts.

The Indonesian human rights tribunal for East Timor was to hear cases against 18 people charged in Indonesia over the 1999 violence. The list did not include Wiranto. So far, 12 have been acquitted, five have been found guilty, though several remain free on appeal, a process which could take years.

Amnesty International and the Judicial Systems Monitoring Program have criticised the trials saying they "have not been performed in accordance with international standards, and have delivered neither truth nor justice".

The court decision against Adam Damiri, a former TNI regional commander, is pending. The prosecutor has argued that Damiri be acquitted of all charges, and in an unprecedented move, Damiri has been permitted leave several times to prosecute the war in Aceh.

International pressure East Timorese Bishop Carlos Ximenes Belo has been a lone voice among Timorese leaders in calling for an international tribunal. More than 90 religious leaders in the US recently signed a statement demanding an international tribunal be set up "regardless of the outcome of the Indonesia trials". On May 20, the first anniversary of East Timor's independence, the International Federation for East Timor and the US-based East Timor Action Network called on the UN Security Council and the US government to support the creation of an international tribunal for East Timor.

In April, the British-based TAPOL Indonesian Human Rights Campaign and the Catholic Institute for International Relations condemned the soft stance taken by the United Nations Commission on Human Rights towards the sham trials in Indonesia. TAPOL spokesperson Paul Barber said that Indonesia had forfeited its chance to ensure justice for East Timor.

Hendardi, chairperson of the Indonesian Legal Aid Association, said on May 31 he feared that the trials were a lost opportunity for Indonesia to stop the military's impunity for human rights abuses.

"The farcical nature of the trials is an argument in favor of establishing an international tribunal for East Timor", said Jon Lamb from Action in Solidarity with Asia and the Pacific. "Clearly, there needs to be more pressure built for an international tribunal, the only chance the East Timorese people now have to see justice done."

Aid and development

Timor urges rich nations to do more to help poor countries

Agence France Presse - June 16, 2003

Lisbon -- East Timor, one of the world's poorest countries, on Monday called on rich nations to boost international aid and reduce their trade barriers in order to help lift developing countries out of poverty.

"We believe there is a clear need for rich nations to redefine their aid policies," East Timorese President Xanana Gusmao said after receiving a peace prize at a ceremony held in Portugal's parliament.

Rich nations should raise their international aid contributions to at least 0.7 percent of their gross domestic product and should implement more debt forgiveness progams for the most heavily endebted nations, he said.

"Lastly, greater access to the markets of rich nations should be given by lowering customs duties which are sometimes excessive and by simplifying trade procedures," said Gusmao. Farm subsidies in rich nations should be lowered as they "put poorer nations at a great disadvantage and help maintain poverty levels," he said.

Gusmao said poverty prevented many nations from consolidating their fragile democracies -- and he singled out regional neighbours the Philipines and former colonial ruler Indonesia as two nations which were in particular need of help. "Today these two nations, especially Indonesia, face gigantic challenges to be able to proceed towards democracy," he said.

The pan-European rights watchdog Council of Europe awards each year to defenders of human rights, democracy and the partnership between rich and poor nations. The ceremony was presided over by Portuguese President Jorge Sampaio.

Gusmao said that while the establishment of education and health services was an important goal for poor nations, development plans must also focus on boosting growth. "If not there is a risk of building thousands of educational establishments but children do not go to school because their parents can not afford to pay the fees," he said.

Upon independence from Indonesia just over a year ago, East Timor was the poorest country in Asia. The economy in the former Portuguese colony is contracting and is still greatly reliant on foreign assistance. Forty percent of the population lives below the poverty line of about 55 cents a day.

Speaking at a press conference after receiving the award, Gusmao said the Timorese people were "aware of the long road they still have to walk" in order to become a fully functional state. Gusmao received two other peace prizes last week. On Thursday he was awarded the "Path to Peace Foundation" prize in New York after having received UNESCO's "Felix Houphouet-Boigny" Peace Prize two days earlier in Paris.

Former recipients of the United Nations Educational, Scientific and Cutlural Organisation prize included Jimmy Carter and Nelson Mandela.

Gusmao, who returns to Dili on Wednesday, led the guerrilla resistance to Indonesian troops for 11 years until he was captured in 1992. He spent seven years as a prisoner of Jakarta but has worked for reconciliation since assuming the presidency of the new nation in May last year.

Pro-Jakarta militias, backed by the Indonesian military, waged a campaign of intimidation before East Timorese voted in August 1999 for independence, and a scorched-earth revenge campaign afterwards. At least 1,000 people are estimated to have died and whole towns were burnt to the ground.

News & issues

Floods worsen East Timor's food shortage

ABC News - June 18, 2003

More than 600 people in East Timor have been made homeless by severe monsoonal flooding.

Anne Barker reports one person has died and two more are missing. The United Nations says unseasonal rains in East Timor's south have caused widespread damage to crops, livestock, houses and roads.

Some villages have lost their entire crop, compounding the nation's already critical food shortage that threatens 150,000 people. One of those missing is a UN staff worker.

Most of the homeless are in the Suai area where UN peacekeeping forces are sheltering them. The UN has begun supplying food and water, which it hopes, will last for at least a month. Many flooded areas are still cut off by road and air. Some roads could remain cut for at least two weeks.

600 homeless, widespread damage after floods

Lusa - June 18, 2003

Dili -- At least one person is dead and about 600 people are homeless after torrential rain lashed parts of East Timor at the weekend, the United Nations Dili mission announced Wednesday.

The heavy rain, unusual for June, hit three districts south and southeast of Dili, destroying homes, crops, roads and left large numbers of cattle dead.

A UN official is among two people listed as missing. The UN's No. 2 Timor representative, Sukehiro Hasegawa, is holding emergency talks Wednesday with senior Dili ministers and foreign aid and relief officials to coordinate response measures.

International relations

ASEAN cracking open club's door for Dili: Horta

Lusa - June 23, 2003

Macau -- Dili's foreign minister, Josi Ramos Horta, said Monday that East Timor would likely be admitted to ASEAN's Regional Forum security structure next year, with hopes of obtaining formal observer's status in ASEAN by 2006.

Ramos Horta, in comments to reporters in Macau, where he is on a five-day visit, said the "crushing majority" of the 23 forum members had supported lifting a "moratorium" on new members at a Phnom Penh meeting last week.

Dili's membership in the regional security forum, an ASEAN spinoff, would likely open the way for East Timor's to join the pivotal, 10-nation Southeast Asian bloc as an observer "in 2005 or 2006", he said, adding that full membership could come within "five or six years".

On Monday, Ramos Horta held talks with Macau's chief executive, Edmund Ho Hau Wah, on promoting bilateral ties and business. Macau, the Timorese diplomat said, could serve as East Timor's "nerve center" in its search for foreign investment.

Earlier, Ramos Horta announced Dili planned to open an embassy in Beijing, as well as a cultural and economic mission in Macau, a Special Administrative Region of China, that was administered by Portugal until December 1999. Ramos Horta said Sunday that the opening of the embassy was under discussion with Chinese officials in Dili.

Timor's Macau mission was a topic of discussion with Ho Hau Wah, whom Ramos Horta invited to visit Dili. The Macau mission, due to open in 2004, will primarily be geared towards "attracting investment and support and will also project Timorese business opportunities in Hong Kong, Taiwan and East Asia", Ramos Horta said.

Australia underwrites East Timor's survival

Deutsche Presse-Agentur - June 19, 2003

Sydney -- Prime Minister John Howard on Thursday gave East Timor an open-ended commitment of military support. He said Australian troops might stay on in the world's newest country "for years". Of the 2,800 United Nations peacekeepers in the former Portuguese colony around 1,000 are Australian.

"Having invested so much into helping the people of East Timor we don't want to pull out prematurely so that the country then comes under unacceptable strain and perhaps collapses," Howard told Australia's ABC Radio. "That would be the worst possible outcome." Last month East Timor marked its first full year as a sovereign country.

Indonesia gave up almost a quarter of a century of sometimes brutal occupation in 1999, the same year Australia led an international force that entered East Timor to stop the violence that followed a referendum on independence.

ASEAN gets scolding for dragging heels on Timor

Sydney Morning Herald - June 20, 2003

Mark Baker, Phnom Penh -- Australia has chided regional governments for stalling moves to admit East Timor to their annual security talks with the United States, Japan and China.

The 23-member ASEAN regional forum voted on Wednesday to defer a decision on membership applications from East Timor, Pakistan and Bangladesh.

The meeting overturned a decision earlier in the week by South- East Asian foreign ministers to grant immediate membership of the forum to Pakistan. Strong objections from the Indian Foreign Minister, Jaswant Singh, denied an obligatory consensus.

The dispute also derailed a strong push by the US, Australia and several regional ministers to grant immediate membership to East Timor, whose application has faced strong opposition in the past from Burma, which has been angered by Timor's support for the embattled Burmese opposition.

The Australian Foreign Minister, Alexander Downer, said yesterday that it was regrettable the forum had failed to admit East Timor, the region's newest nation and one with a clear entitlement to be part of what has become the most important security dialogue in the Asia-Pacific region. "East Timor is, indisputably, within the footprint of the ASEAN regional forum," he said.

"What's the point of keeping East Timor out ... ? They are not going to threaten anybody ... I've spoken up for East Timor. Other delegations joined me, came in behind me and supported my comments to get East Timor into the [forum]."

Mr Downer questioned the meeting's final decision to defer the new membership applications for further consideration. "These matters seem to have been given a lot of consideration by officials. Just keeping these matters being considered by officials isn't taking you anywhere."

The East Timorese Foreign Minister, Jose Ramos Horta, said he expected his country, which regained its independence last year, to be granted forum membership next year, when Indonesia will hold the rotating chairmanship. "We will not accept further delays and excuses," Mr Ramos Horta said. "Those who don't support our membership should say so and let us know their reasons."

Economy & investment

Bright dawn, dark days in Timor

Australian Financial Review - June 23, 2003

East Timor won huge goodwill as it launched into independence. But Asia-Pacific editor Rowan Callick has discovered, in investigating a deeply troubled Australian venture there, that the tasks of winning business confidence and creating the rule of law are, for now, proving too hard.

A family-owned Queensland construction firm, JJMcDonald & Sons, thought it was doing the right thing for East Timor and for itself when it spent $3 million on setting up a business there to help the country's reconstruction.

Today, three years into the company's first venture beyond Australia, it is anxiously awaiting a court verdict on June 25. This could result in it losing everything it has built up in East Timor following a move by its former joint-venture partner, Timorese citizen Foo Hau Kiun, to seize the firm's assets.

The venture has been plagued by bizarre episodes, including the burglary of its offices in Dili and those of its barrister in Darwin -- when documents about the court case were targeted -- and the registration of a company of the same name by the husband of the presiding judge.

Responding to fast-mounting concern about the country's legal system, President Xanana Gusmao said recently: "I call upon the officers of justice to strip themselves of all kinds of xenophobia. The development of our country will depend, essentially, on a policy of openness to foreign investment and on the application of a justice system that is honest, impartial and professional." He was speaking at the swearing-in of the first president of the court of appeal. But the court still has no judges, so cannot hear appeals.

JJMcDonald & Sons (JMS) has had turnover this financial year of almost $60million. Revenue in East Timor -- where the firm has ranged, depending on the projects in hand, between the biggest and third-biggest private sector employer in the country -- has contributed between 10 and 20 per cent of the total. But legal costs will drive the East Timor operation into the red this year.

This has been JMS's first venture overseas. Chairman Chris Greig, who has had considerable experience in the Asia-Pacific region and beyond, says it will be the last in a developing country.

"The risks hadn't been properly considered when we became involved," he says. "It won't stop us going offshore, but our experience there will make us assess critically the risks, and the legal framework, before making a move." When JMS went to look at opportunities in East Timor following the militias' violent rampage, senior officials from the United Nations Transitional Administration in East Timor said that in order to gain some of the business of reconstructing buildings and roads, it should find a local joint-venture partner.

The partner it chose was Foo. He was one of only a few local builders with his own quarry and graders, although some had been damaged by militants. They named the joint company East Timor Constructions.

The Australian partner was to fund the venture, provide the personnel and most of the equipment, and build premises. It contributed $3 million in plant and funding. Later, it was envisaged, the partners would share the profits or losses after tax in the normal way.

The partnership quickly broke down. Foo failed to turn up to meetings. But the Australian partner fixed his damaged equipment, used it, and paid all taxes and outgoings.

They had agreed at first that there was no point in paying rent for using Foo's equipment until the joint venture was making a profit, or it would drain the business further. After 12 months, he began to demand rent for the use of his equipment. The firm said that since it had not yet made a profit, it could not pay -- and that when it did make a profit, he too would receive a payout.

Foo terminated the joint venture in April 2001, little more than a year after signing the agreement, initiating a legal action claiming $3.23 million rent for plant, an amount 20 times more than the agreed rate.

Since then, the Australian firm has continued to operate the business. But Foo wants to take it over. He re-established his own construction business and took his equipment back -- which had been repaired at no cost to him by his former Australian partner. He called his new firm Timor Constructions.

The court ordered the seizure of equipment as security in case Foo was successful. It would be extraordinarily difficult to get this equipment off the island, and the Australian-owned business depends on it, yet Foo succeeded in having the equipment seized and on occasion confined to the compound. The business, which has a constant struggle for court permission just to use its own equipment, consequently lost contracts.

Foo has also issued a criminal complaint against the directors on the same issues, claiming fraud. At the start of JMS's operation in Timor there was no bank in Dili, so the money was kept in its Australian accounts, with "hooks" attached so it could be kept separate and tagged. As soon as ANZ opened a branch in Dili, an account was opened there instead.

But Foo has claimed this as fraudulent. The UN police investigated and found no grounds to pursue the matter. But Foo persuaded the deputy prosecutor in Dili that his complaints were indeed reasonable.

Since then, the company's senior staff and directors have been constantly called in for questioning, sometimes for days. On some occasions they have been held in the country, released, and summonsed to fly back. Similar questions have been asked over and over again.

Greig, the chairman, is among those who have been interrogated in the police station as well as at the court. "We can't adopt any kind of strategy while this has been going on," he says. "We haven't known whether to take on new contracts or build a new business or to try to extract ourselves."

This confusion appears to arise in part from the law itself, and from its implementation in Timor, which has been eccentric at best.

The East Timor constitution preserves the law as it stood at independence, unless it is modified by parliament. In place at independence was Indonesian law, backed up by UNTAET regulations. The prevailing code is thus a Dutch/French version of civil law, hinged around the role of an examining magistrate. It is inquisitorial rather than adversarial, and there are no juries.

As in the Bali bombing cases, most of the questions are directed by the judge, after which the lawyers may have an opportunity to follow up. To Australian eyes, it looks and sounds more like a commission of inquiry conducted by judges than a common law trial.

The judges determine which witnesses they see. They can call witnesses and reject those put forward by the parties, and can determine the order in which they are heard.

Barrister Tim Lindsey, director of the Asian Law Centre at Melbourne University, is part of JMS's legal team, and has been assisted by Colin McDonald, a QC from the Northern Territory. Lindsey is an expert on Indonesian law and has trained hundreds of judges in Indonesia.

"Threats of detention and interrogation by the Dili authorities have now made it too risky to send directors there any more, even though this is essentially just a private complaint," Lindsey says.

"It seems to be a device preventing us from calling our lead witnesses, because we know they risk being detained. And the deputy prosecutor refuses to charge our people -- which would enable us to do something to get out of this bind."

The court usually hears the case for one or two days at a time, Lindsey says. The longest hearing has been three days. There have been eight returns so far.

"We often just get two or three days' notice before the next hearing, knowing we will have to fly up from Australia," says Lindsey. "Most of our witnesses and the legal team are in Australia. And it usually costs at least $3000 per person to get to Dili, accommodated, and back. On occasion we've turned up and no one has been there at the court. We have had no formal explanation.

"The court has never sent us any correspondence. The information about the hearings is passed on orally to our local lawyer. Sometimes we have sat there half a day outside the courtroom waiting for the judges to appear, and then gone home. Sometimes the hearings have started late and finished early, or the judges have gone to lunch and not returned, with no explanation. "This is extraordinarily expensive and unreasonable. And it looks to us like a tactic."

UNTAET granted Lindsey and the JMS solicitor, Jeff Guy from Townsville, the right to appear in court in East Timor. The constitution of independent East Timor expressly provided for such rights to be carried over.

But the court refuses to give the two lawyers standing. They have had to hire an East Timorese representative with limited experience. "It is extraordinarily difficult," says Lindsey. "I sit next to him and advise him, in Bahasa Indonesia, what to say. We have appealed this."

The proceedings are in Indonesian, but some witnesses have given their testimony in English. But Lindsey says the court interpreters make serious errors. "When there was a riot on the street outside the front door of the court room, with people waving machetes, the interpreter said our witnesses should go out the front, instead of the back."

For most of the trial, there has been no transcription, no record of what has gone on. Some judges bring their own tape recorders, but the defence has not heard the results. Yet two of the three judges on the panel have been replaced during the hearings.

Lindsey says: "When we complained that one of the judges had come in after four witnesses had been heard, the presiding judge replied that she would tell him what had been going on. We have appealed that as well.

"We now have six appeals outstanding. But the court of appeal exists in statute only. They have recently sworn in a head of the court, but there are no judges and no indication when it will start hearing cases. "The court in Dili is out of control."

But the appeals cannot, now, be heard until after the judgement. Foo claimed that the joint venture was not registered properly. But the business registrar said the paperwork was correct. As the defence team was at the registry, it noticed that the presiding judge's husband had registered the same business name: East Timor Constructions.

Lindsey says: "We handed up the copies of the registration, and the bench noticed the name of the husband of the presiding judge, yet they said they didn't want to hear from the registrar, nor did they formally wish to look at the register.

"We have appealed this as well. We said she shouldn't hear this case because there was a bias, or a reasonable perception of one. We reported it all to the superior council of the judges, seeking her disqualification due to a massive conflict of interests. The case, though, continues. No one will intervene."

The company stands to lose its $3 million investment and the business it has built up. The equipment would be seized. The joint-venture partner would, in effect, take it over.

"It's the most outrageous case I've ever been involved in," says Lindsey. "Someone even broke into the business office in Dili and stole files relating to this case, setting fire to some documents. The filing cabinet was attached to the floorboards, which they removed. Original documents, confidential memoranda and advice on the case were stolen. They knew just what they were looking for. But the police never found out who it was. The QC's office in Darwin was also broken into.

"Our local counsel in Dili has signed an affidavit that a lawyer from the other side attempted to bribe him to throw the case, for a percentage of the other side's winnings, plus a trip to the USA."

The bottom line, says Lindsey, is that "the rule of law doesn't exist. There's a bitter anti-foreigner feeling throughout the system. It is politicised. What incentive is there for people to invest?"

The company has made representations right across government, but has been told the situation is beyond anyone's control. "Our opponent," says Lindsey, "identifies himself as a good East Timorese businessman, who should therefore be supported. Identity politics are strong."

The judges have had very brief training programs. None had been a judge before independence, since the Indonesian system did not use East Timorese as judges. Some were legal aid activists, some academics in Indonesia and some were law students. Most had little or no experience in a courtroom before they became a judge, says Lindsey.

"I have some sympathy for them. They're trying to find their way beyond their competency. But they have no grasp of procedure or how systems should work."

Nevertheless, Greig says that if the court verdict came down for the company, and that the recent period is viewed as an aberration, then his company would be a long-term investor in East Timor: "The only proviso is maintaining the security of our people."

In hindsight, he says, there was a misalignment of the expectations of the partners in the joint venture. "We were cautious," he says. "We refused to make corrupt payments. We paid our Timorese staff well, and invested in training them. But we didn't, as a result, make a profit in our first year.

"When I met Mr Foo, he said, 'I want money, I want money.' Then he stopped communicating with us, and started taking legal actions." Vital dos Santos, the lawyer representing Foo, says his client's chief complaint is that JMS did not register Foo's name as an equal partner, as was agreed in forming the joint venture.

He says that "to my best knowledge, the court has facilitated equal opportunities to both sides to present their arguments, evidence and witnesses."

Foo says the joint-venture agreement unfairly prevents his companies from operating in competition with East Timor Constructions, even though he has worked in the construction industry there for 18years.

And he says that just $33 in monthly rent was paid by ETC for the use of his vehicles, whereas it was paying a daily rent of $200 a day to another firm. He says ETC "totally destroyed" some of his equipment.

East Timor open for business

Australian Associated Press - June 17, 2003

East Timor is open for business, the world's newest nation said today. The nation was aiming to attract foreign investment in agriculture, fishing, manufacturing, tourism and the petroleum support industry as it struggles to achieve financial independence, East Timor Secretary of State for Investment Jose Teixiera said today.

Mr Teixera said the nation -- which celebrated its first birthday last month -- had just developed its first business and investment laws.

"We believe we are now in the position and will be in the next couple of months to launch a very business-friendly package of laws," Mr Teixiera told the South East Asia Australia Offshore Conference (SEAAOC).

"In relation to the law in investment, Timor Leste will have a transparent regime for attracting and licensing foreign investment which will be non-discriminatory and apply the modern universal guarantees sought by investors."

The nation would install an investor-friendly tax regime, and also establish a one-stop shop for investors, including information and support services.

East Timor, which suffers chronic poverty and massive levels of unemployment, received a boost with the announcement this week the $2.3 billion Bayu-Undan gas development in the Timor Sea will proceed. East Timor stands to earn $6 billion in royalties over the 20-year life of the project.

Mr Teixiera said the government would establish a fund in which to inject all the revenue from petroleum and gas developments, to safeguard the money for future generations. "The future of our people is so dependent on these revenues, we have a responsibility to preserve and safeguard these for future generations," he said.

Foreign Minister Alexander Downer said Australia would continue to support East Timor through its aid program. "I don't think it would be right for Australia to scale back its aid program in the short term just because East Timor is getting that revenue."

Local media monitoring

East Timor local media monitoring

UNMISET - June 16-26, 2003

Suara Timor Lorosae reported that two armed, off-duty Police Officers (STL did not mention their names) caused a major incident by shooting into the air several times on Saturday during a party at Kakaulidun? Dili. The article said that the two police officers came uninvited to the party, already drunk. The incident occurred when one of them was dancing suggestively with an Aldeia Chief's wife, Mrs Maria Madalena de Canossa. A local youth got angry started to hit him. In response the other policeman tried to assist by pulling out his pistol and shooting into the air. This made the situation worse and the police were attacked and disarmed by the angry party-goers. The article said that the Deputy of the Investigation Unit, Sub Inspector, Aquiles Sarmento Varela, had confirmed that the case is under investigation.

STL has reported an interview with World Bank's Country Manager, Ms Elisabeth Huybens regarding World Bank's activities in Timor- Leste. The article misquoted Ms Huybens by saying that World Bank had donated US$176.80 million to Timor-Leste. In fact the World Bank coordinates the multi donor TFET (Trust Fund for East Timor) program which totals US$176.80. The article mentions the Bank's support for the Government of Timor-Leste in the implementation of the National Development Plan to support sustainable economic growth and alleviate poverty.

President Xanana Gusmao is today scheduled to received the "North-South" prize from the European Council at the Portugal's Parliament in Lisbon. The "North-South" prize is, an award aimed at promoting human rights and democracy.

Speaking to the media upon his return from Jakarta, Prime Minister Mari Alkatiri said that the Government did not close the doors for former refugees in West Timor to come back to Timor- Leste. The article said that UNHCR (United Nations High Commissioner for Refugees) had ended its activities in the West Timor refugee camps on December last year, and that the Indonesian Government had also stopped its humanitarian assistance. The article said that UNHCR and IOM (International Organization for Migration) and some local Non Government Organizations in West Timor are continuing to help those individuals who have plans to return to their villages in Timor- Leste.

In an interview with Timor Post, RTL and TVTL, Prime Minister Mari Alkatiri said that the Government of Indonesia has a strong political will to solve the remaining issues with Timor-Leste. The interview was conducted in Jakarta after the conclusion of the Prime Minister's visit to Indonesia. Mr Alkatiri said that the remaining issues will be discussed further in detail through the Joint Commission already established.

In response to the Government plan to establish a new police special force, Mr Julio Pinto, a military and political observer said that the Government should first explain the definition and function the two words "defense and security". Mr Pinto said the role of any special force needs to be clear. Mr Pinto spoke to Timor Post on last Friday at Dili's University.

June 17, 2003

Suara Timor Lorosae reported that the Speaker for Fretilin in the Parliament, Mr Francisco Branco, has told STL that the National Police (PNTL) requires a radical change to its members' mentality. Mr Branco said that some of the national police are still using force as a means to dominate people, like during the colonial era. He said this should be erased. Mr Branco said that the police institution should radically change its mentality to accommodate its new vision in accordance to the Constitution. Mr Branco said this in response to the STL report on Kakaulidun's incident. (See Media Monitoring June 16).

The National Parliament strongly criticised the Kakaulidun's incident where 2 drunk off-duty Police caused a disturbance at a party. The Parliament said they regretted the negative impact that the incident had had on the police image, both nationally and internationally.

The Government of Japan has disbursed its second term donation of US$470.000 to the Reception, Truth and Reconciliation Commission. The Counsellor of the Embassy of Japan in Timor-Leste, Mr Akinori Wada, presented the donation on Monday to the Chairman of the Commission, Mr Aniceto Guterres. The article said that the Government of Japan pledged US$1million donation to the Commission's activities during a visit by President Xanana Gusmao to Japan in January 2002.

The Chancellor of Dili's University, Dr Lucas da Costa, said that it is critical for the Government to consider the fiscal policy for the coming year. Mr Costa said " on one hand we invite foreign investors to come and invest in Timor-Leste, but on the other hand we introduce a tax increase. It is counter productive to the Government's efforts to attract investors" said Mr Costa.

The Timor Post reported that the Director of East Timor Study Group, Joao M. Saldanha, (Phd), has said that the Agreement on free visa and trade for communities near the Timor-Leste and West Timor's border will end smuggling activities. Mr Saldanha welcomed the new agreement on free visa and free trade for border communities. He said it was a positive step towards strengthening the good relationship between the two countries.

The Commander of Timor-Leste's National Police (PNTL), Mr Paulo de Fatima Martins told Timor Post that there was an incident on Saturday where two martial groups engaged in fighting in the Colmera business area. The two groups were SH (an acronym in Bahasa Indonesia for Setia Hati) and Kongfu Master. As a result of the clash, two members from SH were taken to the hospital and suffered serious injuries. Mr Martins said that one of them already recovered and had returned home.

The Speaker of the National Parliament, Mr Francisco Guterres Lu-Olo, said that all martial arts groups should obey the peace agreement already agreed in January 8, 2003. The witnesses of the January 8, 2003 peace agreement included, the RDTL's President, Mr Xanana Gusmao, then the Justice Minister, Mrs Ana Pessoa and the Commander of the Falintil-FDTL Gen. Taur Matan Ruak. Mr Lu- Olo said that they (martial arts groups) broke their promises. In addition, a member of the Parliament from Christian Democratic Party, Mr Antonio Ximenes made an appeal to the Parliament to set up a regulation regarding the formation of civic organizations. (The article does not expand upon Mr Ximenes comments).

The Commander of the National Police, Mr Paulo de Fatima Martins, yesterday told Timor Post and STL that the pistols taken from the off-duty Police Officers during the Kakaulidun incident had been returned to the police on Monday.

June 18, 2003

Suara Timor Lorosae reperted that heavy rain for two consecutive days from Sunday until Tuesday caused widespread flooding in the Districts of Manufahi(Same) and Covalima (Suai). 24 houses and livestock have been swept away by the weather in Same. The UN PKF in the affected areas have undertaken urgent measures in close coordination with the local authorities to deliver assistance to the victims of the flooding. Bridges and roads in Viqueque, Same and Suai, have been rendered it impassable by the bad weather. This is severely restricting access for assistance from outside.

The Falintil-FDTL's Chief of Staff, Col. Lere Anan Timor, said he will resign from the Armed Forces in 2004 if the Government does not provide solution to overcome the former Falintil and Combatants' living conditions. The article said that Mr Lere is not satisfied with his former guerillas' living conditions. Mr Lere also appealed to the Government for continued support to the Veterans and Ex-Combatants' Commission in finalizing their task.

The Commander of the National Police, Mr Paulo de Fatima Martins, said that there are indications of an organized crime band acting in Dili. Mr Martins said that recently the band had attacked a shop called "Melati" in the Audian area at 3am. The band were wearing balaclavas and had swords in their hands, attacking the shop while the owner was sleeping. One of the shop's neighbors witnessed the event. Mr Martins said that the case is under police investigation.

The umbrella organization of Opposition Parties organization umbrella called "Political Platform of National Unity" and the Journalist Association held an informal lunch time discussion yesterday at the International Republican Institute's office in Farol-Dili. In this informal discussion all the participants came to a conclusion that Timor-Leste's media needs to enhance its relationship with the Government and all stakeholders in order to record developments and community issues. Presented at the lunch were the President of the Journalist Association, Mr Virgilio Guterres, PSD's Vice President, Mrs Maria Paixao, the Secretary General of Democratic Party, Mr Mariano Sabino, the Country Director of Internews, Ms Lyndal Barry and members of the National Unity grouping.

The Timor Post reported that President, Xanana Gusmco, has said that the international community should grant debt relief to Indonesia, as "poverty causes intolerance". "The Indonesian government wants to consolidate the democratic process, but remains weak due to enormous pressures caused by its foreign debt", Gusmco said Monday in the Portuguese Parliament, where he had received the Council of Europe's North-South Prize. Gusmco said he closely monitored Indonesia's difficulties in widening its democracy. He said Jakarta's enforced slashing of social spending "has caused huge social unrest", he added. "The North should make the brave choice of writing off the debt, or else we will see how poverty leads to war and intolerance", said President Gusmao.

Timor-Leste's Minister for Foreign Affairs and Cooperation, Dr Jose Ramos Horta, was invited to participate in the 36th ASEAN's Foreign Ministers Annual Meeting in Phnom Pen ? Vietnam. Dr Horta comments that Timor-Leste is looking for a membership in the Association of Southeast Asian countries. He said however, that Timor-Leste does not feel any pressure to become a full member of ASEAN (Association of the South East Asian Nations) in the short term, because of its financial implications to the country. Dr Ramos Horta said Timor-Leste wants to strengthening its relationship with its neighbors in that region. Dr Horta is scheduled to meet with his counterparts from Papua New Guinea, Cambodian as well as other informal meetings with his ASAEN and non ASEAN counterparts.

Vice Minister of Health, Mr Luis Lobato, said yesterday that total budget for his department for fiscal year 2000-2003 is US$7,1 million and 80% at the budget would be spent on quality health facilities reconstruction in remote areas. Mr Lobato said that for the fiscal year 2003 the Department of Health got an additional US$8,7 million. Mr Lobato added that besides the Government's budget, his department also received additional assistance from the World Bank to support the Department of Health's Annual Action Plan to build community health centers. In this article Timor Post said that the Vice Minister of Health did not mention the amount of the assistance given by the World Bank.

June 20, 2003

Suara Timor Lorosae reported that according to UNMISET press release received yesterday said that the flooding in the East and South Districts of Timor-Leste were resulted in 2 people death and 3 missing. More than 600 people without home and have also caused widespread damage to crops, livestock and roads. The Deputy Special Representative of the Secretary General of the United Nations in Timor-Leste, Mr Sukehiro Hasegawa, held a emergency disaster response coordination meeting this morning with the Acting Prime Minister, Mrs Ana Pessoa, the Minister of Health, Dr Rui Maria de Araujo and the Interior Minister, Mr Rogerio Lobato as well as development partners. Mr Hasegawa briefed them on how the UN is responding to the emergency situation. At the moment, the flooded are still cut off roads, but the situation is manageable.

STL covered the same main news stories as appeared in yesterday's Media Monitoring. -- Story about Col. Lere's resignation. -- Story about martial arts' groups fighting in Colmera.

The Timor Post reported that the Chief of Staff of the Falintil- FDTL, Col. Lere Anan Timor, told reporters that his resignation will happen if the Government does not address the issue concerning Veterans and former Combatants' living conditions. He said that when he resigns he would not hand his gun over to the Government.

The Secretary of State for Public Works, Mr Joao Baptista Alves, said that the heavy rain had caused 2 main bridges a fall of in Viqueque, as well as extensive damage to roads in the Sub District of Venilale, Ossu and Viqueque. Mr Alves pointed out that the collapse of Karau Ulun bridge will jeopardize land transport connections in Betano, Same and Natarbora.

In response to the Commander of Falintil-FDTL, Gen Taur Matan Ruak's appeal to build a heroes' monument, the Speaker of the National Parliament, Mr Francisco Guterres Lu-Olo said that he accepts Gen Ruak's appeal. He said, however, that the Parliament needs to set up a regulation regarding the criteria of a hero. Mr Lu-Olo said that these honored because who they had lost their life during the struggle for the liberation of their country will be honored as stipulated in the article 11 of the RDTL Constitution.

June 21, 2003

Suara Timor Lorosae reported that President Xanana Gusmao has commented on Col Lere's threatened resignation by saying that he is confident that Col Lere would not resign from his military post. President Gusmao reiterated that the existing Commission for Veterans and former Combatants is not aimed at solving the problems. President Gusmao said that the Commission's function is to identify and register Veterans and Ex-Combatants. He said the Commission would then give this file to the Government and the Parliament. President Gusmao added "it is too complicated to reward veterans and Ex-Combatants. For those who still alive maybe we could reward them by given them a job, but what about those who are already dead ?".

The Speaker of the National Parliament, Mr Francisco Guterres Lu-Olo, said that Col Lere's threaten to resign from Falintil- FDTL is not the best solution to the Veterans and Ex-Combatants issues. Mr Lu-Olo cited the establishment of the Veterans and Ex-Combatants' Commission and the establishment of a Parliamentary Bill to undertake and overcome the issue.

The Secretary General of the United Nations, Mr Kofi Annan has told President of RDTL, Mr Xanana Gusmao, that Timor-Leste should make good use of the UNMISET presence in Timor-Leste. President Gusmao told the media this on Thursday on his arrival at Nicolau Lobato International Airport.

The Indonesian Representative for the Mission in Timor-Leste, Mr Fauzi Bustami, raised objections about Col Lere Anan Timor's comments in local newspaper regarding martial art groups' fighting. Mr Lere was reported as saying the Indonesian mentality is one of violence, is undisciplined, and cannot keep promises.

The Timor Post reported that President Xanana Gusmao said that the assistance fund of US $4m donated by the Government of Japan is not aimed at assisting the Veterans and Ex-Combatants only. He said it will also assist other vulnerable groups, in particular widows. President Gusmao said that he believes that Col Lere will not resign from the military.

The Commander of the National Police, Mr Paulo de Fatima Martins, said that the mastermind of the martial arts incident on Saturday in Colmera has been arrested. Timor Post said that Mr Martins did not mention the person's name or which group he was affiliated.

Timor Post has sought opinions on Col Lere Anan Timor's threat to resign from a range of people including independent observer, Julio Tomas Pinto and the Secretary General of the Democratic Party, Mr Mariano Sabino Lopes.

June 23, 2003

Suara Timor Lorosae reported that in response to the Chief of Staff of Falintil-FDTL, Col Lere Anan Timor's threat to resign, Prime Minister Mari Alkatiri said that Falintil ?FDTL, as an National Security Institution, should understand "the National Development Plan and the Government Budget Policies". Mr Alkatiri said that he will not put the issue of former Falintil Combatants aside. The article said that Mr Alkatiri hopes to schedule a meeting with the Commander of Falintil-FDTL, Gen Taur Matan Ruak, the Chief of Staff, Col Lere Anan Timor and the State Secretary for Security Affairs, Mr Roque Rodrigues. Mr Alkatiri spoke to reporters on Saturday on his arrival from his visit to Britain.

Prime Minister Mari Alkatiri said that it was an advantage for Timor-Leste to take part in the "Blair Initiative" regarding oil and gas management held in London. Mr Alkatiri said that the conference was attended by 60 countries. He said that a major part of the media coverage focused on Timor-Leste's participation. The Prime Minister said that even though Timor- Leste is a new nation, it is advanced in the management of oil and gas. He said that this advanced management was fostered by an Norwegian management style and also has a strong support from the Norwegian experts.

Prime Minister Mari Alkatiri said that the Government will channel its assistance to the flooded areas. Mr Alkatiri said that he has received a preliminary report from the Acting Prime Minister, Dr Ana Pessoa who has visited the flooded areas and has seen the communities' condition.

The Timor Post reported that the Speaker of the National Parliament, Mr Francisco Guterres Lu-Olo said on Friday that the UNMISET mission will finish soon in Timor-Leste. Therefore Timor-Leste has to have an concrete program about defence and security issues. Mr Lu-Olo appealed to Timor-Leste's citizens to work together hands in hands to undertake defence and security tasks. Mr Lu-Olo said "we should make good use of the UNMISET presence in this remaining time". Prime Minister Mari Alkatiri said that governing a country is not the same as running a kiosk. He said that it needs a great effort, combined with a good national development plan to achieve the goal. Mr Alkatiri made his comments in relation to the threatened resignation of the Chief of Staff of the Falintil-FDTL, Col. Lere Anan Timor if the Government does not address the issue concerning Veterans and former Combatants' living conditions.

Timor Post also reported about Prime Minister Mari Alkatiri's visit to Britain as reported in STL.

June 24, 2003

Suara Timor Lorosae reported that the Commander of the Falintil FDTL, Gen Taur Matan Ruak, said that the Falintil-FDTL has no competence to analyze and understand the Government's budget. He said that it is others institutions' competence. Gen Ruak spoke to reporters yesterday in response to Prime Minister Mari Alkatiri's comments that it is important for the National Security Institution to analyze and understand the budget and expenditure which the government had prepared for the Defense Force.

STL has sought opinions on Prime Minister Mari Alkatiri's comments on Falintil-FDTL to analyze and understand Government's Budget from a range of people including Mrs Maria Paixao, a Parliamentarian member from the Social Democratic Party and Rui Menezes, a member of the Parliament from the Democratic Party, their comments were in line with Gen Taur Matan ruak's comments .

An Australian police officer will head the United Nations civilian policeforce in Timor-Leste, the federal government announced on Saturday. Sandra Peisley will replace Canadian Peter Miller as police commissioner this month. Her duties are to provide interim law enforcement and public security in East Timor and to assist at development of a professional East Timorese police service. " Peisley is a senior Australian police officer with a strong history of achievement in policing and strategic leadership with the Australian Federal Police and the Commonwealth's Protective Security Coordination Centre," the government said in a statement. Peisley has served with the United Nations in Cyprus. The new UNPOL commander arrived in Dili on Monday.

The Timor Post reported that the Commander of Falintil-FDTL, Gen Taur Matan Ruak said yesterday that he had not yet talked or received a letter regarding the Chief of Staff, Col Lere Anan Timor's resignation.

The Chief of Staff of the Falintil-FDTL, Col Lere Anan Timor said that he loves his nation and trusts his superiors. Mr Lere said that his reactions were not intended to oppose the Government nor his superiors. However, he was concerned in particular about his fellow Falintil Combatants' living conditions.

The Vice President of the KOTA (Klibur Oan Timur Aswa'ain) Party, Mr Clementino dos Reis Amaral, said yesterday that the Government only explained verbally to the Parliament about the budget execution. The Government did not provide any record of it. Mr Amaral said that it sets a bad precedence, the possibility of creating corruption, collusion and nepotism for this country in the future.

Timor Post did not carry a story about the UNMISET and UNPOL press conference regarding martial art groups fighting. It does however, feature a big picture of Marcia Poole, the UNMISET spokeperson, the UNPOL Dili District's Commissioner from Portugal, Elias L. da Silva.

June 25, 2003

Suara Timor Lorosae reported that Prime Minister Mari Alkatiri, yesterday told reporters after the graduation ceremony of the National Police that the Government has no intention of giving preferences in the building up of the Falintil-FDTL (Timor- Leste's Defense Force) and the PNTL (Timor-Leste's National Police). Mr Alkatiri said that both institutions are state owned, not belonging to a group nor a party. The article said that some members of the Parliament had raised questions regarding the budget allocation for the two institutions. The article said that Opposition Parties in the Parliament accused the Government of undertaking a discriminatory policy in the budget allocation, in which the major portion of the annual budget was allocated to the National Police.

Prime Minister Mari Alkatiri yesterday chaired the graduation ceremony of the National Police (PNTL) at the National Police Academy in Comoro. During the Graduation ceremony were presented the President of the National Parliament, Mr Francisco Guterres Lu-Olo, the Vice President of the National Parliament, Mr Francisco Xavier do Amaral, State Minister, Dr Ana Pessoa, the Commander of the Falintil-FDTL, Gen Taur Matan Ruak, the Deputy of UNMISET, Mr Sukihiro Hasegawa, the Commander of the UNPOL, Sandy Piesley and cabinet members. The Commander of the National Police, Mr Paulo de Fatima Martins, said in his speech that for this graduation the total number of participants was 253, where 150 were selected from former combatants and the clandestine movement, 103 were recruited through the normal procedure.

The Timor Post reported that Prime Minister Mari Alkatiri yesterday said in his speech during the graduation ceremony that the National Police and the Falintil-FDTL should cooperate mutually in order to provide protection for the community. Mr Alkatiri said that the National Police and the F-FDTL, as protectors of the community, should keep their impartialities intact and not be influenced by other groups or political parties' interest.

The Speaker of the National Parliament, Mr Francisco Guterres Lu-Olo, said that the National Parliament is setting up a regulation regarding the eligibility of Veterans and Ex- Combatants. Mr Lu-Olo yesterday spoke to reporters in response to the current controversy regarding the eligibility/criteria of veterans and former combatants.

June 26, 2003

Suara Timor Lorosae reported that President Xanana Gusmao asked the Commander of the National Police, Mr Paulo de Fatima Martins, to enforce the National Police members' mentality and discipline.

The President said that some of the National Police staff often take brutal actions against the community. President Gusmao yesterday called Mr Martins to his office to convey his concerns regarding the involvement of some National Police members in the recent fighting amongst martial arts groups.

A group of 10 persons from a former clandestine movement of the Lospalos District came to the Parliament on Tuesday to protest against the recruitment process in the Timor Leste National Police. One of the protestors said "we are all disappointed with the recruitment process conducted by the National Police. There was a huge discrimination in the recruitment process".

The Commander of the National Police, Mr Paulo de Fatima Martins, on Tuesday said that his institution has identified police staff involved in the fighting amongst martial arts groups. Mr Martins added that he had taken measures against those involved by suspending them from their jobs and those armed will be disarmed.

Timor Post reported that Prime Minister Mari Alkatiri said yesterday in the Parliament that the Government would consider the recommendations of the Commission of Economy and Finance of the National Parliament. The Commission yesterday delivered its report of 20 pages regarding the National Budget for the fiscal year of 2003-2004. (The article did not mention the Commission's recommendations in detail).

Opposition Parties in the National Parliament yesterday urged the Government to prioritize the Agriculture sector for the fiscal year 2003-2004. Mr Rui Menezes from Democratic Party said that there were no substantial differences between the last fiscal (2002-2003) budget and the current fiscal year budget. Mr Menezes said that fixed expenditure still got a higher portion than capital expenditure.

Timor Post reported the message conveyed by the RDTL President to the Commander of the National Police regarding the President's concern about the involvement of the National Police members in the fighting amongst martial arts groups as reported in STL.