JOINT STATEMENT

DEPUTY PRIME MINISTER AND MINISTER FOR TRADE, THE HON TIM FISCHER AND MINISTER FOR FOREIGN AFFAIRS ALEXANDER DOWNER

11 May 1999

Funding for action to meet the historic foreign policy challenge of developments in East Timor is the key feature of the 1999-2000 Foreign Affairs and Trade portfolio Budget. The Budget also provides funds to meet the Government's election commitment to open an Embassy in Zagreb, Croatia. The portfolio will receive total new funding of $36.6 million over four years for these two initiatives. The Budget also maintains our strong commitment to the aid program with spending being maintained in real terms.

Initiatives in East Timor

A package of measures has been developed to further Australia's important national interests in encouraging a peaceful and orderly transition process in East Timor. New funding of $26.8 million over four years will be provided. The elements of the package are:

Australian Consulate-General in Dili: Funds are provided to open a Consulate-General in Dili, East Timor, to which the Indonesian Government has agreed. The Consulate-General will enable Australia to respond quickly to the rapid pace of developments in East Timor. It will improve Australia's capacity to monitor developments and to assist the transition process, recognising that the ultimate responsibility for resolving issues in East Timor rests on common action between the Indonesian Government, the East Timorese themselves and the United Nations. Future Australian involvement in an international confidence-building and administrative role during a transitional process in East Timor will benefit from the presence of the Consulate-General.

Arrangements for opening the Consulate - General are being finalised with the Indonesian Government, following the signing in New York on 5 May of the agreements between Indonesia, Portugal and the UN on the autonomy package.

AusAID will establish an office in the Consulate-General in Dili. The Government has made clear that Australia will provide substantial assistance to an autonomous or independent East Timor. Decisions on the level and nature of that assistance will be taken once the situation is clearer. In the meantime, Australia's aid to East Timor continues to be delivered as part of our overall aid program to Indonesia. Australia is the largest bilateral donor to East Timor, providing $7 million in 1998-99. Australia has also pledged $20 million (additional funding in 1998-99) to assist the UN consultation process planned for August 1999. This process will allow the East Timorese people to determine their future.

Australian Policy Liaison Office in Lisbon: Funds are provided to enable DFAT to establish a policy liaison office in Lisbon, Portugal. Portugal will be a key player in the transition process in East Timor and beyond. The Australian policy liaison office in Lisbon will help build and maintain a substantial dialogue with Portugal as the transition unfolds.

The package of measures on East Timor reflects the high level of Australian community interest in developments in East Timor. Australia has strong historical ties with East Timor stemming from World War II. This, its close proximity to Australia and the presence of a large number of East Timorese in Australia, has led to a sense of responsibility and concern for East Timor among Australians.

Australian Embassy in Zagreb

New funding of $9.8 million over four years is provided to open an Australian Embassy in Zagreb, Croatia. The Embassy will strengthen Australia's diplomatic representation in Central Europe and its establishment is recognition of the cultural, economic and family ties held by many Australians of Croatian background. It will work to advance Australia's foreign and trade interests bilaterally and regionally including via consular, passport and visa work and trade and investment promotion. Delivery of consular, passport and visa services to the estimated 3000 Australian citizens living in Croatia will improve significantly.

The Government is committed to assisting Australian firms identify and capture export opportunities in emerging markets particularly in Central Europe. As part of this effort, the measure provides funds for Austrade to locate marketing staff in the Embassy in Zagreb to identify opportunities for expanded trade and investment between Australia and Croatia.

Aid Budget

Total overseas development assistance for 1999-2000 will be $1.5 billion - a $22 million increase over the 1998-99 budget - maintaining the level of the aid budget in real terms.

Priority Aid Assistance for East Asia

In 1999-2000, responding to the East Asian financial crisis, particularly to needs in Indonesia, continues to be a priority. Aid to East Asia and the Pacific will increase to assist our aid partners respond to the East Asian financial crisis and support their longer-term development needs. Total assistance to East Asia and the Pacific in 1999-2000 is expected to be almost $890 million. The increase to East Asia includes:

Doubling the Asia Crisis Fund to $12 million. The Fund will continue to assist countries most affected by the financial crisis to restore growth, protect social investment and ensure appropriate social safety nets.

Increasing country program assistance for Indonesia by $6 million (taking total flows for Indonesia to $121 million) in recognition of the effects of the financial crisis, and to support the reform process.

For further information: 

Media Contacts:

Brendan Egan (Mr Fischer's Office) Tel: (02) 6277 7420; Mobile: 0417 044682

Tony Melville (DFAT): Tel: (02) 6261 1555

Matt Francis (AusAID): Tel (02) 6206 4960; Mobile: 0417 683 126