>The following article appeared in the latest >issue of Green Left Weekly (http://www.greenleft.org.au), >Australia's radical newspaper. > >***************************************************** > >Scrap the Timor Gap Treaty > >BY JON LAND > >Media reports during the recent visit to Australia by East >Timorese leader Xanana Gusmao highlighted the improving >diplomatic relations between Australia, East Timor and Indonesia. >Not so widely reported during Gusmao's trip were renewed calls >for the Timor Gap Treaty to be renegotiated. > >Speaking on ABC radio on May 7, National Council of Timorese >Resistance (CNRT) vice-president Jose Ramos Horta called for the >treaty to be renegotiated with terms fairer to East Timor. > >Horta stated that East Timor is entitled to up to 90% of gas and >oil royalties from exploration in the area covered by the treaty. >Commenting on the possibility of the treaty being changed, Horta >said: �I believe that Australia is an enormously rich country and >I am confident it is prepared to take the initiative itself, so >that the East Timorese can benefit much more from the treaty.� > >In response to questions on the Timor Gap Treaty raised by >journalists at the National Press Club on May 5, Gusmao hinted >that the future East Timorese government would seek to >renegotiate the treaty. �Hopefully, as soon as possible, when >East Timor is independent we will have also a team of experts to >deal with this matter�, he said. > >The treaty was also raised in a forum held at federal parliament >on May 5. Representatives of the federal Coalition government and >the Labor opposition skirted questions on where they stood on >renegotiation. Labor's shadow foreign affairs minister Laurie >Brereton said it was matter to be dealt with �in the future�, >while Liberal Senator Marise Payne (speaking on behalf of foreign >affairs minister Alexander Downer) declined to comment. > >Downer was just as evasive when asked by reporters on May 8 >whether the government would consider changes to the treaty. He >could only bring himself to say that the government �will be >happy to talk with the East Timorese on this issue [the Timor Gap >Treaty] as East Timor moves toward independence�. > >A more blunt and forthright reply was made on May 7 by Northern >Territory chief minister Denis Burke. He told Radio Australia >that �the negotiations that were done when the Indonesians had >control was > >a very good deal for Indonesia at the time and that deal passed >directly through to East Timor. It's probably the best deal they >would get. I wouldn't be fearful if I were East Timorese about >loss of revenue.� > >Burke also urged the federal government to do �everything >possible� to assist oil and gas industry developments projected >for the Timor Sea because �there are plenty of alternate >suppliers�. > >Burke's claim that the Timor Gap Treaty is the best deal for East >Timor is false. If the area which the treaty covers is >renegotiated under internationally accepted norms and laws, then >a vast amount of territory would return to East Timor. This would >result in a substantial amount of oil and gas reserves and >associated royalties from exploration coming under the control of >the United Nations Transitional Administration in East Timor >(UNTAET) or the East Timorese state, once the mandate of UNTAET >concludes. > >When the Timor Gap Treaty was signed in December 1989 it >signified a big step forward in relations between Indonesia and >Australia. The treaty marked the end of lengthy negotiations >(which had begun as far back as 1972) to bridge �the gap� in the >sea bed boundary between Australia and Indonesia. > >The gap existed in the territorial waters of East Timor because >the Portuguese government -- the administering power of East >Timor prior to the Indonesian invasion in 1975 -- refused to >accept the Australian government's claim that the boundary be set >along the edge of the continental shelf, rather than along the >median line. > >The signing of the treaty was only able to take place because >successive Australian governments acknowledged Indonesian >sovereignty over East Timor. Though not entirely acceptable to >oil and mining interests in Australia, the Timor Gap Treaty >enabled exploration and development of lucrative oil and gas >deposits to begin. > >The treaty divides the gap into three zones: zone A, the largest >zone, which is jointly administered, with revenue raised from >taxes shared equally; zone B, which is under Australian >jurisdiction (with most of the revenue going to Australia); and >zone C, which was under the jurisdiction of Indonesia (now >UNTAET). > >There is potentially billions of dollars in royalties and taxes >to be generated from oil and gas developments, especially in Zone >A. When the Senate passed the Timor Gap Treaty (Transitional >Arrangements) Bill 2000 on March 16 -- under which UNTAET >formally replaced Indonesia as the co-signatory for the Timor Gap >Treaty -- industry minister Nick Minchin stated: �It is likely >that projects currently awaiting approval could, if developed, >provide several tens of millions of dollars per annum to both >East Timor and Australia for a period of 10 to 20 years >commencing in about 2004�. > >According to a report in the April 13 Sydney Morning Herald, the >Bayu-Undan field (located in Zone A) alone could potentially >generate $5.2 billion in government revenue over a 24-year >period. Under the current terms of the Timor Gap Treaty, this >would be split evenly between East Timor and Australia. If the >sea bed boundary was changed to the median line between East >Timor and Australia, the Bayu-Undan field would fall within East >Timor's territory, so all revenue from Bayu-Undan would go to >East Timor. > >The hypocrisy of the Howard government's grandstanding on its aid >commitment to East Timor is more apparent when the current terms >of the Timor Gap Treaty are considered. According to budget >figures, the government is only prepared to commit a paltry $150 >million in aid to East Timor over the next four years. This is >less than 6% of the expected revenue from the Bayu-Undan field >income alone -- which rightfully belongs to East Timor. > >The Howard government is trying to hoodwink both the Australian >and East Timorese people by claiming to provide much aid and >assistance to East Timor. If it was really committed to helping >East Timor, it would scrap the Timor Gap Treaty immediately, and >return the territory and revenue it gained by giving support to >Indonesia's murderous and illegal occupation of East Timor. >----------------------------------------------------------------- > >--------------------------------------------------------------------------- > > __________________________________ KOMINFORM P.O. Box 66 00841 Helsinki - Finland +358-40-7177941, fax +358-9-7591081 e-mail [EMAIL PROTECTED] http://www.kominf.pp.fi ___________________________________ [EMAIL PROTECTED] Subscribe/unsubscribe messages mailto:[EMAIL PROTECTED] ___________________________________
