The Defence Force is working on an "exit strategy" for East Timor that could result in withdrawal of all its 660 troops in four months.
"Given the fact there are other pressure points around the [Pacific] region too, we really need to get our numbers down in Timor and get them
back here in a reasonable time," the Chief of Defence Force, Air Marshal Carey Adamson, told Parliament's foreign affairs and defence select committee.
He said work was in progress looking at whether to withdraw from the former Indonesian territory in November, or to continue the deployment through to March or May next year.
Options depended on funding from the Government, getting the United Nations to confirm troops to replace the New Zealanders, and the security situation on the border with West Timor.
"The trouble is that all it takes is for somebody to run across the border and fire a few shots and the tension remains high."
Air Marshal Adamson said maintaining any significant commitment beyond May would mean having to send troops back for a second time, "which is not a very palatable option."
The Defence Force had received $41 million for the East Timor deployment in the financial year ending next March.
Staying on beyond then would cost more, he said.
However, the UN had started reimbursement, with one payment so far of $2 million for February and March's personnel costs. New Zealand was owed operating costs for the same period.
"I think because we are one of the nations that pay our UN dues on time, we are one of the first to be paid out."
Defence Minister Mark Burton said, through a spokesman: "It has always been New Zealand's preference to scale down our presence in East Timor as quickly as possible with due regard to the security requirements.
"It continues to be a matter under constant review and discussion with the United Nations and the other nations that we are engaged with in East Timor."
On a recent visit to Asia he discussed the situation with defence ministers from Singapore, Malaysia, Korea and Australia.
- NZPA
Herald Online feature: Timor mission
