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Australian Financial Review
Thursday, August 26, 1999

Timor market economy pledge

By Tim Dodd, Jakarta

As more than 10,000 independence supporters filled Dili streets yesterday in
a colourful and peaceful rally, independence leader Mr Xanana Gusmao pledged
that the new state of East Timor would be based on a market economy, the rule
of law and a fully accountable government.

In a statement he read at his prison house in Jakarta, Mr Gusmao also
promised a general amnesty for all past political crimes and made clear that
this included members of the pro-Indonesia militia groups which have fought
against independence with terror and intimidation.

"The state of Timor Lorosae (East Timor) will welcome to its bosom all the
Timorese, regardless of the positions they assumed in the past. I
particularly refer to those who are part of the pro-integration paramilitary
forces," he said.

Mr Gusmao, a former guerilla leader who fought the Indonesian army for 16
years, called for reconciliation on all sides, saying: "Our nation will be
greater if each and every one of us is able to forgive, including those who
have committed the most reprehensible acts."

At yesterday's rally in Dili, Agence France-Presse reported that many in the
crowd held framed pictures of Mr Gusmao or wore T-shirts with his picture.
Others just drew a semblance of his face on their shirts.

The tenor of Mr Gusmao's statement left no doubt that he expects East
Timorese to choose independence in Monday's referendum and that the
Indonesian People's Consultative Assembly will subsequently allow East Timor
to separate.

He said the new East Timor would be based on a market economy and would
"encourage the building and strengthening of the private sector". It would
encourage investment from abroad and a specific bill protecting national and
foreign investments would be enacted.

But with an estimated annual GDP per head of about $A200, East Timor will be
in the bottom economic tier of nations if it becomes an independent state and
is expected to be heavily reliant on foreign aid.

Mr Gusmao acknowledged that "to overcome Timor Lorosae's backwardness and
underdevelopment is a very difficult task". "The scarcity of resources and
the high level of illiteracy are preoccupying," he said. He defined the
objective of economic policy as transforming the present agrarian and
subsistence economy into a more diversified and developed one.

He promised open, responsible government, saying that "public administration
will be managed with transparency, raising the level of professionalism with
full and regular accountability". An independent East Timor would also want
good relations with a "democratic and multi-party Indonesia".

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Didistribusikan tgl. 25 Aug 1999 jam 21:57:50 GMT+1
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