DONORS� MEETING ON EAST TIMOR GETS UNDERWAY IN DILI

Donor countries and multilateral agencies gathered in Dili this morning for a two-day conference to discuss post-independence support for the economic program outlined by the East Timorese Government.

In opening remarks at today�s meeting, Special Representative of the Secretary-General Sergio Vieira de Mello called on the international community to remain engaged in East Timor after the territory becomes fully independent on 20 May.

�Targeted development assistance will be needed for many years to come if the East Timorese are to achieve the development goals they have set for themselves � in particular, to have a lasting impact on poverty and to improve the quality of life and well being of all East Timorese people,� the SRSG said.

President-elect Xanana Gusm�o and Chief Minister Mari Alkatiri also made opening statements at the conference, and Minister for Foreign Affairs Jos� Ramos-Horta chaired the presentation of the National Development Plan that includes strategies for poverty reduction and economic growth.

Representatives of 27 nations, the European Commission and a wide range of multilateral groups are attending the conference that will conclude tomorrow with a pledging session.

At a 13 May press conference both Alkatiri and Ramos-Horta expressed confidence that donors will meet the requirements outlined by the Government in its proposed budget approved last week. A total of US$90.9 million is being sought by the Government for direct budget support over the next three years.

Ministry of Finance officials say the budget delivers on the Government�s commitment at the Oslo Donor�s Conference in December 2001 to contain growth in medium-term expenditures and provide a plausible donor exit strategy from the provision of direct budget support.

The first Donors� Meeting for East Timor was held in Tokyo in December 1999 and was followed by meetings in Lisbon (June 2000), Brussels (December 2000), Canberra (June 2001) and Oslo (December 2001).

A Background Paper for the Donors Meeting on East Timor is attached.