Indonesian Political, Business & Finance News

UN appeals for more aid to support fledgling E. Timor

| Source: AP

UN appeals for more aid to support fledgling E. Timor

CANBERRA (Agencies): The United Nations appealed on Friday for greater generosity from international donors to support East Timor and warned against political violence as the fledgling state prepares for its first parliamentary elections.

Speaking at the opening of the fourth Donor's Meeting on East Timor, the state's UN administrator, Sergio Vieira de Mello, said he expected a US$20 million deficit in this year's budget.

De Mello said the United Nations Transitional Administration in East Timor (UNTAET) had prepared a US$65 million budget for fiscal year 2001-02, which was "neither lavish nor imprudent."

"Support to bridge this deficit is what we are asking of the donor community for 2001-02. Budget support is not unusual in the early days of independence. East Timor should be no exception," he told the 27 governments, and 18 aid agencies attending the conference in Australia's capital.

Total spending from all aid sources in rebuilding the country, including the budget, is estimated at US$304.7 million in 2001- 02.

The aid donors renewed their pledges on Thursday to help rebuild devastated East Timor following calls for longer-term support after the territory gains independence next year.

But a two-day meeting of donors in Canberra discussed the need to move away from emergency assistance and plan a strategy to help East Timor achieve economic sustainability.

"We need to think about a paradigm shift in our assistance to address issues that clearly go beyond emergency reconstruction," World Bank East Asia and Pacific Regon vice president Jumal-ud- din Kassum told the meeting.

The World Bank is administering a three-year $170 million trust fund for East Timor which is being used to help rebuild hospitals, schools and other infrastructure.

The former Portuguese colony, which suffered 23 years of Jakarta rule before its UN-run referendum, is one of the world's poorest territories with widespread unemployment, a dearth of skilled personnel and an army of homeless.

Australian Foreign Minister Alexander Downer said Canberra would provide budget support in the early years of independence and appealed for other donors to do the same. "There will have to be budgetary support for East Timor," he told reporters.

However, Downer said he wanted to quickly wind back support claiming it could be counterproductive. He said that by 2004, oil developments in the Timor Sea would be delivering considerable revenue to the East Timorese.

"We need to be generous to East Timor ... we do that not just from the goodness of our hearts but because Australia has a vested interest in a successful new emerging country in our vicinity," he said.

Australia and East Timor are locked in talks over splitting petroleum revenues from a disputed oil and gas area of the Timor Sea with a deal expected to be signed within weeks.

De Mello said East Timor was prepared for the Aug. 30 Constituent Assembly elections, but a new civil administration would not be ready by the time the UN mandate ended next year.

"The reality today is that we do not yet have an effective East Timorese administration and we will not have one on Jan. 31, 2002 or whenever East Timor fully becomes independent," he said.

De Mello also warned his administration, which is supported by a UN peacekeeping force, would not tolerate political violence during the coming elections.

"There is still a very real fear among much of the population that the political process may lead to unrest and violence. I will not tolerate politically motivated violence in the territory," he said.

View JSON | Print