Land and People

East Timor (tē'môr) or Timor-Leste (–lĕsht) , Tetum Timor Lorosae, republic, officially Democratic Republic of Timor-Leste (2002 est. pop. 800,000), 5,950 sq mi (15,410 sq km), in the Lesser Sundas, Malay Archipelago, off the SE Asia mainland. The country occupies the somewhat narrower, eastern half of Timor island, the exclave of Ambeno (or Oecussi) on the northwest coast of Timor, and offshore islands. Dili, on the north coast, is the capital and largest city, as well as the country's main port. Other large cities include Dare, outside Dili, and Baucau, on the northeast coast and the site of the main airport. The terrain is largely hilly and mountainous, reaching its highest point on Mt. Tatamailau (6,562 ft/2,963 m).
Although East Timor, whose economy is largely agricultural, was one of the world's poorest nations at independence, it has offshore oil and gas fields in the Timor Gap off East Timor's southern coast that are under development. Rice, coconuts, and coffee (the main export) are grown, and stretches of grassland support cattle. The inhabitants, of predominantly Malay and Papuan descent, are largely Roman Catholic. Portuguese and Tetum, the main local language, are official languages; English and Bahasa Indonesia are “working languages.” The national government consists of a popularly elected president, who is the head of state and may serve two five-year terms; a prime minister, who is the head of government, and a cabinet; and a unicameral parliament whose members are elected for five-year terms. The island is divided administratively into 13 districts; Ambeno and the island of Ataúro have autonomous status.

Economy

Prior to and during colonisation, Timor was best known for its sandalwood. In late 1999, about 70% of the economic infrastructure of East Timor was laid waste by Indonesian troops and anti-independence militias, and 260,000 people fled westward. Over the next three years a massive international program led by the UN, manned by civilian advisers, 5,000 peacekeepers (8,000 at peak) and 1,300 police officers, led to substantial reconstruction in both urban and rural areas. By mid-2002, all but about 50,000 of the refugees had returned. This successful UN effort was headed by Special Representative of the Secretary-General, Sérgio Vieira de Mello, later to become High Commissioner for Human Rights, who was killed in Baghdad in August 2003.
The country faces great challenges in continuing to rebuild the infrastructure and strengthen the infant civil administration. One promising long-term project is the joint development with Australia of petroleum and natural gas resources in the waters southeast of Timor.
The Portuguese colonial administration granted a concession to Oceanic Exploration Corporation, [NASDAQ: OCEX.OB] of Denver, Colorado, to develop the petroleum deposits of the Timor Sea. Before the concession could begin to be developed, the Indonesian invasion made it impossible.
Timor Sea petroleum resources were divided between Indonesia and Australia by the Timor Gap Treaty in 1989,[13] which established guidelines for joint exploitation of seabed resources in the area of the "gap" left by then-Portuguese Timor in the maritime boundary agreed between the two countries in 1972. [14] Revenues from the "joint" area were to be divided 50%-50%. Woodside Petroleum and ConocoPhillips began development of some resources in the Timor Gap on behalf of the two governments in 1992.
OCEX currently has a $30B lawsuit against ConocoPhillips pending in US District Court in New York. This lawsuit is the company's sole significant asset; to fund the suit, it relies on the deep pockets of its majority owner, James Neal Blue, who also owns General Atomics (maker of the Predator drone aircraft).
East Timor inherited no permanent maritime boundaries when it attained independence, repudiating the Timor Gap Treaty as illegal. A provisional agreement (the Timor Sea Treaty, signed when East Timor became independent on 20 May 2002) defined a Joint Petroleum Development Area (JPDA), and awarded 90% of revenues from existing projects in that area to East Timor and 10% to Australia.[15] The first significant new development in the JPDA since Timorese independence is the largest petroleum resource in the Timor Sea, the Greater Sunrise gas field. Its exploitation was the subject of separate agreements in 2003 and 2005. Only 20% of the field lies within the JPDA and the rest in waters not subject to the treaty (though claimed by both countries). The initial, temporary agreement gave 82% of revenues to Australia and only 18% to East Timor.[16]

Government

The Government of East Timor has sought to negotiate a definite boundary with Australia at the halfway line between the countries, in accordance with the United Nations Convention on the Law of the Sea. The Government of Australia preferred to establish the boundary at the end of the wide Australian continental shelf, as agreed with Indonesia in 1972 and 1991. Normally a dispute such as this could be referred to the International Court of Justice or the International Tribunal for the Law of the Sea for an impartial decision,[17] but the Australian government had withdrawn itself from these international jurisdictions (solely on matters relating to maritime boundaries) shortly before Timorese independence.[18][19] Nevertheless, under public and diplomatic pressure the Australian government offered instead a last-minute concession on Greater Sunrise gas field royalties alone.[20] On July 7, 2005, an agreement was signed under which both countries would set aside the dispute over the maritime boundary, and East Timor would receive 50% of the revenues (estimated at A$26 billion or about US$20 billion over the lifetime of the project [21]) from the Greater Sunrise development. Other developments within waters claimed by East Timor but outside the JPDA (Laminaria-Corallina and Buffalo) continue to be exploited unilaterally by Australia, however.[22]

History

The Portuguese visited Timor in the early 16th cent. and were the first Europeans to establish themselves in Timor, at Lifau in what is now Ambeno in 1556. Their claim to the island was disputed by the Dutch, who arrived in 1613. By a treaty of 1859, modified in 1893 and finally made effective in 1914, the border between the Dutch and Portuguese territories was settled. The colonial powers exploited the island's sandalwood, which was largely exhausted by the early 1900s. In World War II, Timor was occupied (early 1942) by the Japanese. In 1950, Dutch Timor and the rest of the surrounding Dutch East Indies became the Republic of Indonesia.
In 1975, when Portugal's former colonies were being granted independence, fighting broke out between rival independence parties in Portuguese Timor. The leftist Revolutionary Front for an Independent East Timor (FRETILIN) triumphed, and on November 28th FRETILIN established the Democratic Republic of East Timor, with Francisco Xavier do Amaral as its president. Nine days later, Indonesia invaded and claimed sovereignty, administering the area as Timor Timur province, but the annexation was not accepted internationally. The population was decimated by food shortages, disease, and military violence, with perhaps as many as 120,000 people dying by 1979. Sporadic warfare with FRETILIN guerrillas continued, and in Aug., 1998, Indonesia and Portugal reached an agreement that would give East Timor the right to local self-government. Indonesia was reluctant to withdraw its forces, however, and talks broke down.
In Mar., 1999, Portugal and Indonesia agreed to let the East Timorese choose between autonomy within Indonesia or independence. Indonesia expected to win ratification of its rule, but in August, in a UN-supervised referendum, voters chose independence. The territory descended into chaos as pro-Indonesian militias and the army engaged in a campaign of terror and brutality, killing supporters of independence, looting and burning buildings, and causing thousands to flee their homes. In September, after intense international pressure, Indonesia asked the United Nations to send a peacekeeping force to East Timor. In October, the United Nations agreed to assume the administration and defense of East Timor, which became a non-self-governing territory. Although Indonesia tried some officials and security personnel in connection with the violence, nearly all ultimately were acquitted or had their convictions overturned.
A constituent assembly, charged with writing a constitution for East Timor, was elected in Sept., 2001. In Apr., 2002, José Alexandre “Xanana” Gusmão, a former guerrilla leader, defeated Xavier do Amaral for the presidency, and the following month East Timor became an independent nation. FRETILIN won a majority of seats in the parliament, and Mari Alkatiri became prime minister. An agreement resolving most border issues was signed with Indonesia in 2005; peacekeeping forces were withdrawn the same year.
Oil and gas fields in the waters between East Timor and Australia made the settlement of their ocean boundary contentious, but in an agreement signed in 2006 East Timor postponed settlement of the issue for 50 years in exchange for an increased percentage of oil and gas revenues. A report by an independent truth and reconciliation commission concerning the effects of Indonesia's occupation of East Timor, including an estimate of up to 183,000 deaths as a result of Indonesia's policies, was submitted to the United Nations in Jan., 2006, drawing protests from Indonesia and chilling relations with Jakarta.
In Feb., 2006, soldiers from W East Timor struck in protest over pay and perceived bias against them as westerners (generally regarded as more pro-Indonesian); in March some 600 soldiers were dismissed as a result. Protests by the former soldiers spiraled into rioting in April and gang violence in May, as former soldiers fought supporters of Prime Minister Alkatiri, whose resignation the soldiers demanded. Foreign peacekeepers returned to East Timor in late May, but stability was slow to be restored to the country. In late June, Alkatiri, under pressure, finally agreed to resign, but the situation remained unsettled, and there was much concern over possible long-term tensions between W and E Timorese. José Ramos-Horta, the former foreign minister and co-winner of the 1996 Nobel Peace Prize, was appointed prime minister in July.