The Australian government is looking to Timor-Leste for a political safe haven from the ongoing issue of so-called 'boat people' coming here seeking asylum. New Prime Minister Julia Gillard has announced that she favours a regional processing centre preferably in East Timor (Timor-Leste) as part of the solution. This could prove a more difficult negotiation than the one she has just had with miners about a resource rent tax.

Whilst Timor-Leste President José Ramos-Horta has shown some interest in the idea, the real power rests with Prime Minister Xanana Gusmão and his government. As indicated in my earlier post, Timor-Leste PM Sprays Friendly Fire at Aid Community, Gusmão is far from happy with the Australian government over a number of issues including development aid.

First is the vexed question of Woodside's proposed hub for the Greater Sunrise gas field.

The second issue concerns Australia's aid. Even the President has criticised aspects of the program in recent months:

East Timor's president has criticised Australia's overseas aid program for cutting funding to what he says is one of the few effective aid projects in his country. ...In particular, Dr Ramos-Horta is unhappy with AusAID's decision to cut funding to a project run by the not-for-profit group Peace Dividend Trust.
Ramos-Horta urges AusAID to rethink funding cut

Gusmão is expected to link these if talks begin in earnest though the President dismisses this suggestion out of hand. At this stage Gillard has yet to speak with him on the matter and has denied any link.

Julia Gillard gave what was described as a 'nuanced' speech:

Think of the impasse the division has created. If you are hard-headed you're dismissed as hard-hearted. If you are open-hearted you are marginalised as supporting open borders.

...That Australia's basic decency does not accept the idea of punishing women and children by locking them up behind razor wire or ignoring people who are fleeing genocide, torture, and persecution; nor does it allow us to stand back and watch fellow human beings drown in the water, but equally there is nothing inconsistent between these decencies and our commitment to secure borders and fair, orderly migration.
Moving Australia Forward

There is little doubt that fear of asylum seekers has gripped many voters in recent years following the Tampa incident in 2001. On Wednesday 7 July Tony Abbott, the Leader of the Liberal Party and Opposition coalition in Australia, repeated his description of them as a 'peaceful asylum invasion'.

The controversy is complex and emotive. Undercurrents of anti-Muslim and anti-immigration feelings, racism and xenophobia vie with widespread humanitarian support for refugees. Many people believe that the problem is more a question of perception than reality. They point out that the people arriving by boat are a tiny proportion of immigration each year:

Source: Tim Bennett, Electron Soup

PM Gillard has said that her proposal is not meant to be a 'quick fix' but there is an election just over the horizon. It may be difficult for her to separate the politics of development aid, gas mega plants and asylum seekers in coming days. Update: When I returned to this this draft after lunch the following hit ABC News - 'Just In':

He [Gusmao] says Mr Ramos-Horta will take a lead role in negotiations with Australia.

...Mr Gusmao says East Timor will approach the issue with an open mind.
Gusmao gives Ramos-Horta lead on asylum negotiations

This came after a day of criticism that Julia Gillard had not consulted Xanana Gusmão first. In another twist yesterday former Liberal Prime Minister Malcolm Fraser gave support to the East Timor solution. Fraser was the Founding Chairman of the development NGO Care Australia. Recently he resigned his life membership of the Liberal Party because he believes it is becoming too conservative on issues like asylum seekers.

As I have said before, everything is connected in our global village. Please watch this space for the unfolding story of why a rich country like Australia is asking one of the world's poorest countries to help solve its border control problems.