TIMOR-LESTE: LISBON PLEDGES EUROS 50 MILLION AID TO DILI OVER NEXT 3 YEARS

Lisbon, January 5, 2004,
Portugal and signed a new cooperation accord Monday that commits Lisbon to furnishing about euros 50 million in development aid to its former colony in the coming three years.

The 2004-2006 cooperation plan was signatured by Portugal`s foreign minister, Teresa Gouveia, and her Timorese opposite, José Ramos Horta, who was in Lisbon for talks with senior Portuguese officials.

Gouveia said Lisbon was funding projects deemed a priority by both governments, particularly Portuguese-language teaching and economic and political cooperation.

Ramos Horta said the "generous" Portuguese initiative would encourage other donor nations to make similar aid pledges to the world's newest nation.

Timor is the main beneficiary of Lisbon`s overseas aid programs, receiving 40 percent of Portugal`s total cooperation budget.

After Australia, Portugal is Timor-Leste`s second largest donor nation, giving about euros 120 million to the world`s newest nation to date.

"Although the situation in Timor-Leste has been stable and peaceful in the last year, there continue to be many difficulties and institutions remain very weak", noted the Timorese diplomat.