Outline of the Fourth Donors' Meeting on East Timor

19 June 2001

On 14 and 15 June in Canberra, Australia, the Fourth Donors' Meeting on East Timor was convened, of which the following represents a summary. (Co-chairs: United Nations Transitional Administration in East Timor (UNTAET) and the World Bank. In addition to the delegation from the East Timor Transitional Administration (ETTA), delegations from approximately 30 countries, more than ten international organizations, and international and local non-governmental organizations (NGOs) were also present. The Japanese delegation was headed by Deputy Director-General of the Asian and Oceanian Affairs Bureau Chihiro Atsumi.

1. Main Results of the Meeting

(1) It was confirmed that the process of preparation, including voter registration, for the Constituent Assembly elections is generally running smoothly and the elections are expected to be held as planned on 30 August.

(2) Concerning the budget for the 2001-2002 fiscal year, support in line with the original plan was announced. However, a cautious posture was taken concerning the budget outlook for the next four years.

(3) Concerning social and economic development, the representatives from donor countries and organizations at the meeting welcomed the clear expression of eagerness for a mid- to long-term and comprehensive development strategy from the East Timorese Cabinet member in charge of economic affairs.

(4) It was generally agreed that a UN mission would continue to be necessary in East Timor after independence, but it was also confirmed that further discussion would be necessary on specifics including its future scale and functions.

2. Japan's Position

Through debate in each session, Japan expressed and clarified the following points:

(1) In order to build a self-sustainable East Timor nation, it is necessary for the international community as a whole to continue providing assistance. Japan for its part will continue to actively provide assistance.

(2) Japan welcomes the fact that political processes in East Timor are proceeding smoothly. The support of the international community will be necessary for the success of the elections and Japan is currently examining how best it can offer support for the elections.

(3) Capacity-building needs to be implemented expeditiously in order for East Timor to become independent both in name and in reality. In addition, concerning the efforts underway by Japan and the ASEAN countries for human resource development in East Timor, the East Timorese are expected to define them from a strategic viewpoint in order to build relations with the ASEAN.

(4) Concerning a fiscal scale, fiscal discipline is important. ETTA's efforts so far to maintain its fiscal discipline are welcome. Japan, however, expects the East Timorese to redouble their efforts to ensure East Timor's own financial resources and strictly manage expenditures. Furthermore, the financial outlook for the next four years as laid out in the Canberra meeting will have to be reviewed on appropriate and timely occasions.

(5) Concerning economic and social development, it is necessary for East Timor to formulate a mid- and long-term development strategy as quickly as possible.

(6) In light of the security situation and the necessity for continuous efforts for human resources development into the post-independence period, a UN mission in East Timor will continue to be necessary beyond independence, including a minimal yet essential civil administration pillar.