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East Timor, Australia and the Oil Factor

Xanana Gusmao aboard USNS Mercy. Credit: United States Navy, Chief Mass Communication Specialist Don Bray

Xanana Gusmao aboard USNS Mercy. Credit: United States Navy, Chief Mass Communication Specialist Don Bray

By Alex Schlotzer

Since its birth the fledgling nation of East Timor (Timor Leste) has experienced extreme poverty and numerous hardships.

Of course Australia has been there since independence in 1999; even Victoria’s (a southern state of Australia) former Premier Steve Bracks gives advice to the Prime Minister. Australia’s armed forces and diplomats are there to help keep the peace; keep their borders safe and to help build much needed infrastructure which had been destroyed by the militia forces as they retreated back into Indonesian territory during the struggle for statehood.

Australia takes great pride in helping East Timor and being the defenders of the newest of the world’s nations. However there is an almost cruel duplicity in this sense of pride. The duplicity exists because while Australia “helps” East Timor, it is also responsible for keeping the nation from achieving economic security and rapid development of infrastructure.

But how could this be so?

To quote that old cliché, Australians are hospitable people and our forces are helping to rebuild the nation, or so ordinary Australians would view their country’s Timorese commitment.

Held to ransom

But, if the truth be known, the current Labor federal government, like its Coalition predecessor, are still holding the poor nation of East Timor to ransom for the sake of access to oil and gas reserves in the Timor Sea. While it is true an agreement was reached between Australia’s and East Timor’s governments in 2006, the terms of that agreement were grossly skewed in favour of Australian interests.

Sadly, the rub is that Australia gains the lion’s share of royalties. The particular issue at stake is the official sea boundaries between Australia and East Timor. Our current Labor government refuses to agree to a change in our national sea borders to accommodate a fair redistribution to recognize the legitimate right of East Timor to its sea borders under international law.

Amazingly Australia, under the stewardship of a Labor government, has maintained the stance by the Coalition by not returning to the maritime boundary jurisdiction of the two international arbitration bodies used to settle such disputes; the International Court of Justice (ICJ) and the International Tribunal of the Law of the Sea (ITLOS).

East Timor map. Credit: CIA World Factbook.

East Timor map. Credit: CIA World Factbook.

Even today the government apparently continues to ignore requests to return to the international fold.

The remarkable (or perhaps unremarkable) thing is that the Australian government continues this position because re-drawing the sea boundaries means the Timor oil and gas reserves would be entirely located in East Timor’s waters; thereby giving the nation the sole rights to collect royalties from the oil and gas reserves. If there is a close neighbour of Australia that needs the royalties from our global obsession with oil, surely it must be impoverished East Timor.

The country needs significant public infrastructure improvements and social and health programs. They need a boost to support education and for business investment with future job prospects. The full royalties from the Timor oil and gas reserves can help re-build a nation that was badly damaged in the ensuing violence after the vote for independence from Indonesia. Despite the good work being done by a range of charities and non-government organizations like APHEDA-Union Aid Abroad; Australian government policy is holding back social and economic infrastructure and development.

These kinds of international issues, and the ones right here in our region’s backyard, cannot be allowed to be forgotten. This is about Australia’s responsibility to East Timor to do the right thing if we as a nation want to “help”. And here the right thing to do is to return to international law and recognize East Timor’s rightful sea boundaries thereby ensuring it has full rights over the oil and gas reserves located in their waters and how royalties are used.

Alex SchlotzerAlex Schlotzer is a straight talker when it comes to politics and loves to vent his spleen.  He is actively involved in Australian and international politics with a keen understanding of the dynamics of the political machine. Alex has a prolific online presence and has been a cyber activist for over 15 years. He can also be found at his blog and his exciting online project Australian Politics TV.



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6 Comments

  1. hey,

    I do agree with some of the points you made about the unfair share of revenues from the Timor Sea including Autralia’s reluctance to bring the matter to ICJ or ITLOS. Yet I’m not quite sure about the ‘good work’ done by the aid organizations since most of the aid money aimed at empowering local community ended up in the pockets of the aid workers, their advisor, consultants, and other administrative work rather than investing into projects that have real impact on the lives of Timorese people. This is completely a separate topic that need to be examined thoroughly before one could draws a conclusion that a ‘good work’ has been done by the aid organizations.

    Also the way australian government deals with the Timor Sea dispute is not a new phenomenon. Australia government had consistently supported Indonesian occupation and refused to recognize the illegality of the occupation for such a recognition would result in, among others, the loss of the revenues it derived from the Timor Sea.

    Thank godness! violence escalated in ‘99 providing a window of opportunity for Australia to redeem some of its dignity as a big brother of the Pacific- and hence won a status as the ‘reluctant savior’ of this tiny nation whose people voluntarily and bravely fought and died alongside australians during the WWII to prevent the Japanese military from invading Australia during- for which Timorese are hardly given any credits!

    Now if Indonesia had pulled out peacefully, there will not even be what you call “cruel duplicity of pride” among australian public in general. What would be left for Australian government to claim? … …ANYTHING BUT PRIDE..!

    As an East Timorese, I am [and I believe most of the Timorese are] used to the unfairness of Australia [and the international community generally speaking]. We have been betrayed many times before in various different ways and we learned and grew from it. Yes, we struggled, we fell, but we had to get back on our feet again and continue going! But I do feel profoundly sorry for australia and austrlians ..!

    All the best with your future writings Alex..:))

  2. Steve there was only claim to those resources when East Timor was governed by Indonesia, when the sea borders existed between Indonesia and Australia. Now that East Timor is its own sovereign nation, Australia should respect this and make reparations as soon as possible.

  3. Some excellent points Steve, thanks for commenting.

  4. Australia had first claim to those resources and we do have the infrastructure to develop those reserves. Given the aid you mention Alex it would seem that East Timor is well looked after by Australia. And if Mr Bracks were providing any good advice then perhaps East Timor could get “full rights” to the oil and gas reserves.

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