CABINET ENDORSES AMENDMENTS
ON TAXES AND DEFENCE FORCE

The East Timor Transitional Cabinet today worked on two key documents to be presented to donors at the upcoming Canberra Donors Conference, in June. These were the Monitoring Report on the Brussels Benchmarks and a further list of priority areas for which bilateral donor funds are sought. The Monitoring Report provides information on the achievements of the East Timor Transitional Administration against benchmarks for each sector which were adopted at the 1999 Brussels Donors Conference. The list of priority areas provides donors with information on ETTA’s priority needs. These documents are to be finalised next week. The Cabinet also discussed policy issues related to the establishment of a Banking and Payments Authority with the management of the Central Payments Office and will consider the matter further next week. The Cabinet endorsed a number of amendments to Regulation 2000/18 on a Revenue System for East Timor and the related Directive 2001/2. The draft amendments, aiming at clarifying some elements of the tax system, will now be forwarded to the National Council.

The Cabinet also endorsed amendments to regulation 2001/1 on the establishment of the East Timor Defence Force. The proposals were made by the East Timor Defence Force and the National Council on, among other things, the recognition of Falintil’s role in the history of East Timor and the non-participation of members of the Defence Force in political activities. The amendments, which maintain the spirit of the proposals, will now be forwarded to the National Council. Finally, the Cabinet approved a draft Directive which would allow for the export of sandalwood legally harvested prior to the promulgation of Regulation 2000/17 on the prohibition of logging operations and the export of wood from East Timor, on 8 June 2000.

PDM APPLIES FOR PARTY REGISTRATION

The party Partai Democratik Maubere (PDM) submitted an application for registration to the Independent Electoral Commission today, 24 May, in order to present candidates to the elections for the Constituent Assembly. This is the seventh party to submit an application.