Aussie rejects UN suggestion

Aussie rejects UN suggestion

CANBERRA (AFP): Foreign minister Alexander Downer said Tuesday Australia was unlikely to agree to a United Nations suggestion that all oil profits from the Timor Sea should be given to East Timor.

Downer and Resources Minister Nick Minchin will be briefed Wednesday on negotiations on a new treaty for splitting oil profits.

"We are still negotiating a range of issues regarding revenue- sharing options," a spokesman for Downer said.

Australia had agreed to split profits from the region 50-50 under an agreement with Indonesia but had indicated it was prepared to be more generous once East Timor became independent.

The United Nations transitional administration in Dili has proposed that the seabed boundaries be re-drawn to give all revenue to East Timor.

The new Timor Gap Treaty is expected to be in place late this year, in time for East Timor's move to full independence.