www.bernama.com.my - Malaysian National News Agency - Business
May 11, 2005.

Gas Negotiations Resume

MELBOURNE, May 11 (Bernama) -- Negotiations between Australia and East Timor over the contested Timor Sea gas and oil reserves have resumed in Sydney.

The talks between senior officials from both countries, expected to continue until Friday, are intended to finalise the agreement reached at the last round of talks in Dili two weeks ago.

Under the Dili agreement, East Timor will indefinitely postpone debate on the disputed maritime boundary in exchange for immediate earnings of between A$2 billion and A$5 billion on top of the revenue it already received from the joint petroleum development area (JPDA), the Australian Associated Press reported "The intention (of the talks) is to build on the progress made in Dili," a foreign affairs spokesman was quoted saying.

"There was substantial agreements made on all the major issues which will give East Timor a significantly greater share of the revenues flowing from the Timor Sea."

But prominent critic of the Australian government's approach to the negotiations, the Timor Sea Justice Campaign (TSJC), has accused Australia's Foreign Minister Alexander Downer of "spinning the truth".

TSJC coordinator Tom Clarke said Downer's announcement that a deal had been brokered was premature and he would not be surprised if this latest round of talks broke down. "There are a lot of details that still need to be sorted out," he said.

If the deal does go ahead, Clarke said it was a significant improvement, but still left East Timor shortchanged under international law.

The outcomes of the talks were expected to be announced on Friday.

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