East Timor seeks donor aid for fragile economy

East Timor opened talks with foreign aid donors today to secure $90 million to help nurture its fragile economy.

East Timor opened talks with foreign aid donors today to secure $90 million to help nurture its fragile economy.

Donors from about 30 countries are meeting Timorese leaders for two days in the capital, Dili, focusing on plans to pull Asia's poorest country out of poverty and keep it afloat when the United Nations hands over the reins of power on May 20th.

The United Nations has administered East Timor since late 1999 following the territory's decision to break from 24 years of Indonesian rule in a referendum that triggered murderous rampages from pro-Jakarta militias who opposed the move.

"I encourage you to remain in East Timor for the long haul because you and I know this is a worthwhile cause," the outgoing UN chief in East Timor, Mr Sergio Vieira de Mello, told donors in opening remarks to the meeting.

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The money being sought will fund most of East Timor's budget deficit over a three-year fiscal period starting in July 2003.

The World Bank said it was confident of donor support for East Timor, which has few natural resources apart from petroleum and top-quality coffee.