Aid pledges and praise for East Timor

East Timor left a meeting of global donors yesterday with pledges of more aid and a slap on the back for its progress since independence two years ago.

Delegates from 26 countries attending the World Bank-organised conference in Dili agreed help would be on its way to cover a vastly reduced US$30 million ($50.95 million) budget deficit as the country faces uncertainties over oil incomes.

Although production started in February at an offshore gas field expected to earn East Timor more than US$100 million a year for 20 years, the country claims it is losing US$1 million a day to Australia from another disputed field.

Those attending the conference urged Australia, one of East Timor's leading aid providers, to resolve the standoff swiftly after fruitless talks in April.