East Timor: Risk of ‘failed state’

East Timor was at risk of becoming a failed state unless Australia came to a fairer agreement over joint oil reserves, an Oxfam report said today.

As the country celebrated its second anniversary of independence, Oxfam Community Aid Abroad said the battle to overcome extreme poverty remained at the forefront of Timor’s problems.

Agency director of public policy James Ensor said East Timor was at risk of becoming a failed state, and that Australia had a responsibility to support its nearest neighbour.

Under a temporary treaty signed with East Timor, Australia has access to two-thirds of the known oil and gas deposits in the Timor Sea, even though a maritime boundary set according to international law could deliver most, if not all, these resources to East Timor.

The United Nations Security Council has adopted a resolution renewing the mandate of the UN Mission of Support in East Timor (UNMISET) for 12 months up to May 20 next year.

The Australian Defence Force will contribute about a quarter of the total UN military presence.