FED: Free East Timor needs at least $80 m a year aid: Downer

AAP General News (Australia)
02-18-1999
FED: Free East Timor needs at least $80 m a year aid: Downer

By Stephen Spencer, Diplomatic Correspondent

CANBERRA, Feb 18 AAP - An independent East Timor would need at least $80 million a year in
aid just to replace the funding lost from Indonesia, Foreign Minister Alexander Downer said
today.

But Mr Downer pledged Australia's help whatever path East Timor chose, and tonight revealed
he was already discussing an aid plan with other nations.

Mr Downer will visit Indonesia next week for talks with President BJ Habibie on the future
of East Timor.

He will also meet senior opposition figures and jailed Fretilin resistance leader Xanana
Gusmao.

Mr Gusmao has been angered by Prime Minister John Howard's opposition to full independence
for East Timor on the grounds that it would be costly to Australia and could lead to civil
war.

But Mr Downer said Australia would accept and support a fully independent East Timor, if
that is what the people of East Timor wanted.

"Because it's not us, or Indonesia, who in the medium term are going to decide the fate of
East Timor, it's the East Timorese," Mr Downer told ABC TV's Lateline program.

"Either way we'll be giving them help whether they adopt the autonomy package or whether
they go down the path of independence."

Mr Howard has warned a fully independent East Timor would be a major drain on Australia's
budget, because Australia would be expected to become the major aid donor to the vulnerable
new nation.

Mr Downer refused to say how much Australia would contribute. But he revealed talks were
already underway with other nations, particularly the former colonial power Portugal and Japan
and the European Union, to put together an aid package for East Timor.

But he indicated at least $80 million a year would be needed just to fill the gap left by
Indonesia's withdrawal.

"Indonesia at the moment provides around half of the total GDP of East Timor, and without
Indonesia there, there is of course going to be a considerable hole," Mr Downer said.

"The total GDP of East Timor is around US$100 million (A$160 million). If you take that
half out of it, that US$50 million out of it (A$80 million) then that gives you a bit of a
sense of at least the total amount that would have to be spent .... to maintain living
standards."

But Mr Downer said East Timor would also need additional help to establish many of the
structures necessary for an independent nation.

"If they do choose that path (independence) then you've got to remember they need to write
a constitution. They need to establish a judicial system, they need to establish a central
bank, a currency," he said.

"All of this infrastructure we take for granted in our own country has to be established
and built up pretty much from the ground up."

An independent East Timor is also likely to see tens of thousands of refugees returning to
the island, and the displacement of similar numbers of Indonesian settlers.

Mr Gusmao yesterday warned the settlers would have to give up their land under an
independent East Timor.

AAP ss/cjh/de

KEYWORD: INDON TIMOR DOWNER

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