Tensions heighten between East Timor and Indonesia

New tensions have emerged between East Timor and Indonesia following an alleged attempt by an Indonesian warship to stop and board a tour dive boat well inside the territorial waters of Jakarta's former province.

The incident, which follows a clash last December over a disputed island, came as Australian and East Timorese negotiators prepared for another round of talks on the division of profits from the rich oil deposits of the Timor Sea.

Jakarta was a partner in the original division of spoils under the Timor Gap Treaty signed with Australia before East Timor's bloody 1999 vote for independence.

Indonesia continues to take a keen interest in the negotiations - the latest round winds up in Canberra today.