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.