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© Reuters. FILE PHOTO: Jose Ramos-Horta, President of Timor-Leste, speaks in the course of the Sustainable Growth Targets (SDG) Summit at United Nations headquarters in New York Metropolis, New York, U.S., September 18, 2023. REUTERS/Caitlin Ochs/File Picture

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By Kirsty Needham

SYDNEY (Reuters) -East Timor has not mentioned army cooperation with China in its improve of diplomatic ties, President Jose Ramos-Horta mentioned, including Australia and Indonesia can “sleep at peace” as a result of the island nation will not be a safety concern to its neighbours.

China’s growing assertiveness in efforts to kind safety ties with creating international locations in shut proximity to Australia have raised alarm bells in Canberra, and a current shakeup of Australia’s defence has refocused on defending its northern approaches.

A Complete Strategic Framework signed by East Timor throughout a gathering between Prime Minister Xanana Gusmao and China’s President Xi Jinping in China final week coated improvement cooperation in agriculture and infrastructure, the Nobel laureate mentioned in a phone interview with Reuters.

The settlement additionally offered scope for funding from China together with authorities and business loans to East Timor, he mentioned.

“Proper now we do not have a single mortgage from China,” he mentioned. “Sooner or later we’d request a mortgage from China … We is not going to settle for any unmanageable, unsustainable mortgage with too excessive curiosity fee.”

Some Australian politicians expressed concern after China’s state media reported on Saturday that Beijing’s settlement with East Timor, round 700km (450 miles) north-west of Australia, additionally coated army exchanges.

China struck a safety pact with Solomon Islands, 2,000km (1,200 miles) to Australia’s north-east final yr, heightening Canberra’s wariness about Beijing’s naval ambitions.

“It was by no means mentioned when it comes to army cooperation, by no means mentioned, and the Chinese language aspect additionally by no means raised this situation,” Ramos-Horta mentioned.

East Timor, often known as Timor Leste, goals to hitch the Southeast Asian regional bloc ASEAN by 2025 because it seeks to cut back excessive poverty charges.

“We’d by no means herald a overseas ingredient into Timor Leste that may be seen by the remainder of ASEAN as endangering ASEAN coverage of neutrality or peace and safety,” he mentioned.

“Indonesia and Australia, we will embrace Singapore and Malaysia they’re the international locations which can be closest to us, can at all times sleep at peace – Timor Leste shouldn’t be going to be a nuisance, a priority when it comes to safety.”

Timor has intensive safety cooperation with Australia, which can be its high assist donor, with Canberra offering army and police advisers and patrol boats, he mentioned. “That is to date solely with Australia,” he mentioned.

China’s assist was primarily in infrastructure together with authorities buildings, finance, agriculture and well being, he mentioned.

A big delegation of Chinese language corporations arrived in East Timor’s capital Dili on Thursday to proceed discussions on potential funding in oil and fuel initiatives, he mentioned.

The principle focus for East Timor is finalising a three way partnership settlement with Australian firm Woodside (OTC:) Power for the joint improvement of the Higher Dawn fuel challenge, he mentioned.

East Timor is trying to begin producing from its Higher Dawn fields round 2030, which will likely be essential to the Southeast Asia island nation’s financial system.

Australia has appointed an envoy to hurry up negotiations between East Timor and Woodside; Gusmao’s authorities desires fuel to be piped to East Timor and never Australia.

Ramos-Horta mentioned meals safety was a significant situation for East Timor, and it wanted funding in irrigation and roads, and to supply monetary incentives to farmers to “feed its individuals”.

Australia, as one of many world’s most developed agriculture nations, ought to commit funds to the UN’s Worldwide Fund for Agricultural Growth, to handle the agriculture challenges being posed by local weather change to small farmers globally, he mentioned.

On the International Citizen Competition in New York final week, Ramos-Horta additionally supported requires a fossil gasoline non-proliferation treaty, backed by six Pacific Islands international locations, that places stress on Australia as a significant coal exporter.

Australia’s relationship with East Timor is “stronger than at any time within the final decade”, Australia’s Division of International Affairs mentioned in an announcement.

“Australia is proud to be Timor-Leste’s largest improvement and safety accomplice,” a spokesman mentioned.