Aussie sets back Timor talk

Aussie sets back Timor talk

DARWIN, Australia (AP): Talks on dividing production from oil
fields under the sea separating Australia and East Timor may not
be completed ahead of a crucial mid-July deadline after Canberra
raised new issues, a negotiator for East Timor said Wednesday.

U.S. diplomat Peter Galbraith, who has been appointed by the
United Nations to negotiate on East Timor's behalf, declined to
detail the issues.

Negotiations are due to resume next week in Canberra.

"We were close to reaching and agreement; we had a text of
which only a couple of items were unresolved and there was a path
to resolve them," Galbraith told Australian Broadcasting Corp.
radio.

"But since then, some new issues have been introduced by the
Australian side and that's making it more difficult," he said.

Galbraith confirmed Australia's offer to East Timor of a 85-15
revenue split from the oil reserves was one issue that had been
on track to resolution. East Timor wants a 90-10 split.