Independent Timor will honor oil treaty: Australia envoy

Independent Timor will honor oil treaty: Australia envoy

CANBERRA (AP): An independent East Timor would probably seek to renegotiate aspects of the Timor Gap Treaty, but would honor the controversial agreement between Australia and Indonesia, Australia's ambassador to Jakarta said Wednesday.

The treaty divides up the gas and oil rich area of the sea bed between Australia and Timor into three zones -- Australian, Indonesian and a joint cooperation zone.

East Timor is a disputed territory at the eastern end of the Indonesian archipelago. Separatists have fought against Indonesian rule in the former Portuguese colony since it was invaded in 1975.

Talks to deliver autonomy or independence to East Timor are being sponsored by the United Nations.

An independent East Timor would inherit most of the area now covered by the Indonesian zone, leading to concerns amongst Australian mining companies about the future of the treaty.

But ambassador John McCarthy said East Timorese independence leaders had made it clear they would abide by the treaty with Australia if they succeeded in breaking free of East Timor.

"I would also not be totally surprised if some aspects were renegotiated," McCarthy said.

"But certainly, as to the main purpose of the treaty, with respect to whatever government might eventually take over, they have to honor the treaty.

"The (pro-independence) Fretilin side in East Timor have suggested publicly that they would in fact abide by normal international practice on succession, and hence would take over the rights and obligations under the Timor Gap Treaty which formerly fell to Indonesia."

McCarthy warned it may be another 18 months before Indonesia's economy recovers from the Asian downturn, and that Australian companies looking for a short term profit should look elsewhere.