La’o Hamutuk
Timor-Leste Institute for Reconstruction Monitoring and Analysis
1/1a Rua Mozambique, Farol, Dili, Timor-Leste
Tel: +670-3325013 or +670-7234330
email: info@laohamutuk.org
Website: www.laohamutuk.org

To: His Excellency. Mr. Francisco “Lu Olo” Guterres,
President of the National Parliament of Timor-Leste and all members of Parliament

Cc: Bancada Fretilin Party,  Bancada Social Democratic Party, Bancada Democratic Party, Bancada KOTA, Bancada Timorese Nationalist Party, Bancada Timorese Socialist Party, Bancada Timorese Popular Party, Bancada UDT, Bancada Liberal Party, Bancada Christian Democratic Party, Christian Democratic Union/Christian Democratic Party, Media

Subject: La’o Hamutuk Analysis and Recommendations on the CMATS Treaty

Date: 9 March 2006

Dear Mr. President and all members of the National Parliament,            

Introduction

As we know the Constitutional Government of Timor-Leste, led by H.E. Mr. Mari Alkatiri, has signed a treaty with Australia to enable exploration of the Greater Sunrise oil and gas field and to give opportunities to Australia to explore other areas of the Timor Sea. From the perspective and analysis of civil society, the revenue from Bayu-Undan in the JPDA will be sufficient to sustain and develop Timor-Leste for the next few years, as long as Timor-Leste has good policies to use the funds and develop other sectors of our economy.

However, the governments of Timor-Leste and Australia are moving rapidly toward this exploration, opening the way with the CMATS agreement.

As members of civil society who study Timor-Leste’s development process, La’o Hamutuk strongly supports any decision taken by this Government which will benefit Timor-Leste’s people. La’o Hamutuk also recognizes that the current Government has the legal authority to sign this Treaty, and we do not question the legitimacy of this Government led by H.E. Mr. Mari Alkatiri. Our concerns about the CMATS Treaty relate to the substance and the timing of the Treaty and not to the Government’s right to sign it.

La’o Hamutuk appreciates the effort taken by the Government to improve the Treaty over what Australia offered in the 2003 International Unitization Agreement (IUA), increasing. Timor-Leste’s share of upstream Sunrise revenue from 18% to 50% and has provided opportunities to Timor-Leste fishermen. La’o Hamutuk also appreciates the Government and the National Parliament for not ratifying the IUA, which helped encourage both Governments to renegotiate, resulting in a better agreement.

However, as a Civil Society Organization which has closely monitored oil and gas developments in Timor-Leste for several years, La’o Hamutuk wants to express our position for consideration by the National Parliament before you ratify the Treaty.

Based on current international legal principles, Timor-Leste has more rights to resources in the Timor Sea than this Treaty recognizes. But the Australian Government defies international law and continues to take those resources. Australia 2002 withdrawal from the International Court of Justice (ICJ) in 2002 shows that Australia knows that its position is very weak in following international legal principles. This position, which is economically beneficial to Australia, is based on politics and faulty legal reasoning.

La’o Hamutuk Analysis

1. This Treaty doesn’t resolve the essential issue: the disputed Maritime Boundary. The treaty gives priority to exploit Greater Sunrise (article 2) and share its revenue (article 5). This contradicts our long struggle for independence.  La’o Hamutuk thinks that the debate over the Timor Sea is not only about oil and gas reserves, but also other resources in the Timor Sea. Our struggle for delimitation of our maritime boundary continues our struggle for independence, completing the liberation of our Patria from foreign occupation.

2. The Treaty legalizes and extends Australia illegal occupation of part of the Timor Sea from 30 years (Timor Sea Treaty) to at least 50 years (CMATS Treaty article 3). We continue to believe that Timor-Leste’s Government and civil society have the same position that gives priority to the Maritime Boundary. But this Treaty violates this principle and extending the occupation which contradicts our principles and struggle.

3. The Treaty is more favorable to Australia than to Timor-Leste. This Treaty allows Australia to exploit other fields in the Timor Sea outside the JPDA and Sunrise IUA, including Laminaria-Corallina, Buffalo and other fields which may be discovered in the future (article 4). Economically, this article gives Australia opportunity to exploit current and potential fields in disputed areas, and Australia will receive many benefits from the Timor Sea. Timor-Leste will not have a strong legal position for 50 years or more, while CMATS is in force, including legalizing Australia’s occupation of Laminaria-Corallina.

4. There are not many modifications to the IUA (including article 9.8) which Timor-Leste has not ratified, except for increasing Timor-Leste’s share of revenue from 18% to 50%. But Australia still has the same political power over development decisions. According to IUA Article 9.8, which defines the composition of the Sunrise Commission, Australia has two Commissioners and Timor-Leste has only one. This gives Australia stronger political power than Timor-Leste in making decisions.

5. CMATS Articles 4.5 and 11 about dispute resolution are not favorable to Timor-Leste.  We have seen that they require negotiation to settle disputes, which is favorable to the more powerful country. Negotiations are influenced by economic, political and military power, and reject legal principles.

6. Although the Prime Minister Dr. Mari Alkatiri declared to the public that the Sunrise LNG plant will be developed inside Timor-Leste, but CMATS doesn’t include this point. This omission gives the chance for the oil companies, especially, to make this decision.  We know that Woodside, as Sunrise operator, encouraged by the Australian Government, is opposed to an LNG Plant in Timor-Leste.  

7. Finally, La’o Hamutuk observes that this Treaty appears more favorable to Australia and other countries which will purchase our oil and gas than it is to Timor-Leste which wants to delimit our maritime boundaries.

La’o Hamutuk’s Recommendations

Based on our analysis above, we would like make several recommendations:

1. Regarding to the Maritime Boundary which is delayed for 50 years or more, La’o Hamutuk would like to recommend that the National Parliament of Timor-Leste review this Treaty. We strongly recommend that Negotiation over Maritime Boundaries should continue, even while Greater Sunrise is being developed. after the two countries sign the CMATS Treaty. Because of this, we recommend some changes in this Treaty, especially Article 3.

2. While the negotiation over Maritime Boundaries proceeds, there should be a Moratorium on exploration of new fields until the two countries agree on maritime boundaries.

3. IUA article 9.8, about the composition of the Sunrise Commission, should be modified. Both countries should have equal representation on the Sunrise Commission.

4. Regarding dispute settlement, the Treaty should incorporate with other for mechanism conflict resolution such as; arbitration, courts, the International Court of Justice, if in the future there are conflicts about this agreement.

5. We recommend adding an article about an LNG plant, to ensure that the LNG Plant will benefit the people of Timor-Leste.

In conclusion, La’o Hamutuk believes that this treaty primarily serves the national interests of Australia in guaranteeing their profit from the Greater Sunrise oil and gas reserve, rather than the national interests of Timor-Leste in delimiting a maritime boundary.

For the above reasons, and listening to the voices of civil society in Timor-Leste, Australia and other countries, we would like to urge the National Parliament, as the voice of the voiceless, to take these issues into consideration before ratifying this Treaty. We are confident that the National Parliament, as a sovereign institution elected by the Timor-Leste people, will defend Timor-Leste’s people’s interests, and not those of the Australian Government or oil companies.

We hope that Timor-Leste’s National Parliament will review the Treaty and ask the Prime Minister to renegotiate it with the Australian Government to make some modifications in the Treaty. We trust that the National Parliament will use well your right given under RDTL Constitution Article 95, to defend our national interest and our sovereignty.

For your sincere consideration, we would like to thank you.

Sincerely,

Guteriano Nicolau Soares Neves and Santina Soares
La’o Hamutuk Natural Resources Team

La’o Hamutuk
Timor-Leste Institute for Reconstruction Monitoring and Analysis
1/1a Rua Mozambique, Farol, Dili, Timor-Leste
Tel: +670-3325013 or +670-7234330
email: info@laohamutuk.org
Website: www.laohamutuk.org

Bodik ba : Sua Exelensia Senhor Francisco “Lu Olo” Guterres, Prezidente Parlamentu Nasional Timor-Leste no membros Parlementu hotu.

Kopia hato’o mos ba: Bankada Partidu Fretilin, Bankada Partidu Sosial Demokratiku, Bankada Partidu Democratiku, Bankada Klibur Oan Timor Asuwain, Bankada Partidu Nasionalista Timorense Bankada Partidu Sosialista Timorense Bankada Partidu Povu Timor Bankada Uniaun Democratiku Timorense Bankada Partidu Liberal Bankada Partidu Demokratiku Cristaun Bankada Uniaun Demokratiku Cristaun/Partidu Demokratiku Cristaun

Konaba: Analiza no Rekomendasaun husi La’o Hamutuk konaba Tratadu CMATS.

Loron 9 de Marcu, 2006

Senhor Prezidente no Membru Parlamentu Nasional hotu mak ami haktanek,

Lia makdalan

Nuudar ita hotu hatene, Governu Konstitusional Timor-Leste, neebe lidera hosi Sua Excelensia Senhor Mari Alkatiri, asina tiha ona akordu ida ho Australia atu hadalan esplorasaun kampu oleu no gaz Greater Sunrise no fo oportunidade ba Australia atu esplora area seluk iha Tasi Timor. Maske iha mos perspetiva no analize oi-oin husi sosiedade sivil katak rendimentu husi JPDA ne’e natoon ba sustentabilidade no dezenvolvimentu Timor-Leste ba tinan hirak tuir mai. Naran katak Timor-Leste iha vontade politika diak atu utiliza fundu ne’e hodi harii seitor sira seluk. Maibe, haka’as-an husi Governu Timor-Leste no Australia atu hala’o lalais esplorasaun ne’e ikus mai hetan ona ninian dalan liu husi akordu CMATS. Nuudar sosiedade sivil neebe mos hanesan parseiru iha dezenvolvimentu, La’o Hamutuk apoia tebes desizaun saida deit mak Governu ne’e hola, naran katak desizaun hirak ne’e lori benefisiu ba emar Timor-Leste. La’o Hamutuk mos hatene ho neon no laran katak Governu iha poder politika atu asina Akordu ne’e, no nunka tau iha duvida lejitimidade Governu neebe mak Sua Ezelensia Senior Mari Alkatiri kaer ne’e.

La’o Hamutuk apresia esforsu hirak neebe Governu ne’e hala’o hodi halo akordu ne’e hetok diak liu fali akordu uluk, hanesan aumenta husi pursentu 18 ba pursentu 50 husi rendimentu upstream husi Sunrise, sura mos ho oportunidade neebe mak tiha ikan nain sira husi Timor-Leste sei hetan. La’o Hamutuk mos apresia Governo no Parlamentu Nasional Timor-Leste nebe la ratifika Akordu Unitizasaun Internasional (AUI); no tan ne’e halo Governu rua ne’e negoseia fali hodi hetan fali rezultadu neebe diak liu iha akordu ohin loron. Maibe, hanesan Organizasaun sosiedade sivil ida neebe mak tau matan ba dezenvolvimentu mina no gaz iha Timor-Leste iha tinan balu nian laran, La’o Hamutuk hakarak hatoo ninian pozisaun neebe mak Parlamentu Nasional bele tau iha konsiderasaun molok atu ratifika akordu ne’e.

Bazeadu ba prinsipiu lei internasional ohin loron nian, Timor-Leste mak hetan direitu barak ba riku soin sira iha Tasi Timor laran liu fali akordu ne’e rekoniese. Maibe Governu Australia fila kotuk ba lei internasional hodi eziji nafatin rekursu hirak ne’e. Australia neebe dada-an sai husi Korte Internasional ba Justisa iha 2002 hatudu katak Australia ninian pozisaun fraku liu tuir prinsipiu lei internasional. Pozisaun ne’e, neebe mak ekonomikamente benefisial ba Australia, hetan ninian baze iha politika no rasiosiniu legal neebe la loos.

La’o Hamutuk Nia Analiza

1. Akordu ne’e la rezolve buat hirak neebe mak esensial konaba Fronteira Maritima neebe mak sei disputada hela. Maibe Akordu ne’e hakarak liu atu hala’o esplorasaun petroleum iha Greater Sunrise (artigu 2) no regula fahe reseita (artigu 5). Buat ne’e kontra ita nian luta naruk ba independensia. La’o Hamutuk hanoin katak debate konaba Tasi Timor ne’e laos konaba rezerva mina no gaz maibe mos konaba soin seluk tan iha Tasi Timor laran. Ita sei luta ba Fronteira Maritima ida neebe loos nuudar luta kontinuada ida ba independensia kompleta atu liberta ita nian Patria husi okupasaun rai seluk.

2. Akordu ne’e legaliza no hanaruk tan okupasaun ilegal Australia iha Tasi Timor husi tinan 30 (tuir Tratadu Tasi Timor) ba fali iha tinan 50 nian laran (Tratadu CMATS, Artigu 3). Uluk knanain, ami fiar katak Governu Timor-Leste iha pozisaun neebe hanesan ho sosiedade sivil katak Fronteira Maritima mak sei iha uluk. Maibe Akordu ne’e sees tiha ona husi prinsipiu ida ne’e no hanaruk tan okupasaun ilegal neebe mak la tuir ita nian prinsipiu no luta.

3. Akordu ne’e favoravel liu ba Australia duke ba Timor-Leste. Akordu ne’e sei fo lisensa ba Australia atu esplora tan kampu sira seluk iha Tasi Timor laran neebe mak JPDA no AUI Sunrise la kobre, inklui Laminaria-Corallina, Buffalo no kampu sira seluk tan neebe sei hetan iha loron aban bain rua (artigu 4). Ekonomikamente, artigu ne’e fo oportunidade barak liu ba Australia atu esplora kampu foun sira karik sei hetan iha futuru, no Australia sei hetan benefisiu barak liu husi Tasi Timor. Timor-Leste sei la iha pozisaun legal neebe forte atu reivindika iha tinan 50 nian laran, bainhira CMATS ne’e tama iha forsa, inklui legalize okupasaun Australia ba iha Laminaria-Corallina.

4. La iha modifikasaun barak ba iha AUI, (inklui artigu 9, pontu 8), neebe mak Timor-Leste la ratifika, ezetu aumenta tan fahe rendimentu husi pursentu 18 ba 50. Maibe Australia sei iha poder politika hanesan iha prosesu esplorasaun neebe iha nanis ona iha AUI. Artigu 9, pontu 8 husi AUI, neebe regula kompozisaun Komisaun Sunrise, haktuir Komisioner nain rua husi Australia no ida deit husi Timor. Kompozisaun ne’e sei fo poder politika neebe makaas liu ba Australia duke ba Timor-Leste atu hola desizaun.

5. Artigu 4, pontu 5 no artigu 11 husi CMATS konaba rezolusaun Ddsputa ne’e la favoravel ba Timor-Leste. Ita haree tiha ona katak metodu rezolusaun disputa, hanesan Negosiasaun, sempre favoravel ba rai hirak neebe forte liu. Metodu negosiasaun hatalin an ho beran ekonomiku, politiku no militar, maibe nega prinsipiu legal.

6. Maske S.E. Sr. Mari Alkatiri deklara ona ba publiku katak Planta LNG sei dezenvolve iha rai Timor-Leste laran, maibe CMATS la hatama pontu ne’e iha laran. Ninian absensia sei fo posibilidade ba Kompania Oleu, hanesan Woodside atu hasees an atu la halo tuir buat ne’e. Hanesan ita hatene Kompania Woodside, neebe sai hanesan operador iha Greater Sunrise, enkoraja bebeik Governu Australia atu rejeita, karik Planta LNG sei dezenvolve iha rai laran iha Timor-Leste.

7. Atu hakotu lia, La’o Hamutuk hakarak atu dehan katak Akordu ne’e prefere fo liu benefisiu ba Australia no estadu seluk tan neebe mak sei sosa mina no gaz; duke interese Timor-Leste neebe hakarak delimitasaun Tasi Ketan.

Rekomendasaun La’o Hamutuk

Bazeia ba ami nian analiza sira iha leten; ami hakarak hatoo ami nian rekomendasaun hanesan tuir mai ne’e;

1. Konaba Fronteira Maritima neebe adia too tinan 50 nian laran, La’o Hamutuk hakarak rekomenda ba Parlamentu Nasional Timor-Leste atu haree hikas fali didiak Akordu ne’e. Ami rekomenda makaas katak Negosiasaun konaba Fronteira Maritima tenki continua nafatin, maski estado rua asina Acordo CMATS. Tamba ne’e mak ami recomenda atu halo mudanca ruma iha acordo ne’e, liu-liu iha artigo 3, acordo CMATS.

2. Bainhira negosiasaun konaba Fronteira Maritima sei kontinua, tenke iha Moratoriu ba estudu viabilidade sira seluk atu hetan no esplora kampu foun sira, too rai rua ne’e hetan ona Akordu konaba Fronteira Maritima.

3. Tenke iha modifikasaun ba Artigu 9, pontu 8 husi AUI, konaba Kompozisaun Komisaun Sunrise. Rai rua ne’e tenke iha numeru neebe hanesan iha kompozisaun Komisaun Sunrise.

4. Konaba rezolusaun disputa, akordu ne’e tenke konsidera orgaun rezolusaun disputa seluk sira hanesan Tribunal, ICJ, ka metodu Arbitragem karik iha loron aban bain rua mosu konflitu ruma konaba akordu ne’e.

5. Ami rekomenda atu tenke hakerek artigu ruma konaba Planta LNG, atu asegura katak Planta LNG sei beneficio ba Povo Timor-Leste.

Nuudar konkluzaun, La’o Hamutuk atu hateten katak Akordu ne’e serve liu interese nasional Australia atu asegura ninian lukru husi rezerva mina no gaz iha Greater Sunrise duke ita nian interese nasional konaba delimitasaun Fronteira Maritima.

Tan ne’e, hodi haree mos ba lian hirak neebe mai husi sosiedade sivil iha Timor-Leste, Australia no rai selseluk tan, ami hakarak ezije ba Parlamentu Nasional, nuudar lian ba hirak neebe lian laek, atu tau iha konsiderasaun buat hirak ne’e molok ratifika Akordu ne’e. Ami fiar metin katak Parlamentu Nasional hanesan orgaun soberanu ida neebe mak emar Timor-Leste hili, sei defende emar Timor-Leste ninian interese; laos interese Governu Australia no interese husi kompania minarai sira.

Ami ezije atu diak liu Parlamentu Nasional Timor-Leste haree hikas fali Akordu ne’e no propoen ba S.E. Sr. Primeiru Ministru Timor-Leste atu renegoseia buat ne’e ho Governu Australia no halo modifikasaun ruma ba Akordu ne’e. Ami fiar katak Parlamentu Nasional sei uza didiak direitu neebe konsagradu iha artigu 95 husi Konstituisaun Timor-Leste atu defende interese nasional no ita nian soberania.

Ba ita boot sira nian konsiderasaun sinceru, ami hatoo ami nian kmanek wain.

Sinceremente,

Guteriano Nicolau Soares Neves no Santina Soares
Responsavel ba Assuntu Recursu Naturais iha La’o Hamutuk