PM urged to keep China out of Timor

Steve Bracks says China believes it can win over East Timor as a strategic ally on our doorstep.

Prime Minister Scott Morrison. Picture: AAP

Former Victorian premier Steve Bracks says China believes­ it can win over East Timor as a strategic ally on Australia’s doorstep, and warns that Canberra must act.

Mr Bracks has urged Scott Morrison to dramatically deepen relations with East Timor to counter the rising influence of Beijing.

Ahead of the Prime Minister’s visit to Dili tomorrow, Mr Bracks said the government should help the former Indonesian territory to develop the $50 billion Greater Sunrise gasfields in the Timor Sea, to avoid it seeking China’s help.

Former Victorian Premier Steve Bracks. Picture: David Swift.

An adviser to former East Timor­ president Xanana Gusmao, Mr Bracks said Mr Morrison should make a formal commitment to helping East Timor develo­p the gas processing plant in-country, rather than in Darwin as preferred by Australia and joint-venture partner Woodside.

He said China would likely fund the $16 billion project if Mr Morrison failed to step in with an alternative, in a move experts warn could put East Timor under the influence of Beijing.

“At the moment Australia is arguing­ very strongly it should be based in Darwin,’’ Mr Bracks told The Australian. “Now they will say they are agnostic and it is up to the developer, in this case Woodside, but the reality is Australia is doing everything possible for this development to be facilitated through Darwin. It is part of their 20-year strategic plan for that to happen.

“Timor is resolute about this. It is worth more than any aid project. It is about self-determination. And it gives them their own economic benefit, which I believe will assist their country.

“I think they should facilitate the in-country development of the Sunrise field and allow it to happen in Timor, not in Darwin. That would produce enormous goodwill in Timor for that to happen.”

He said Australia should view the project through the lens of a “strategic relationship for the fut­ure­”, warning that East Timor was a “gettable” ally for other nations.

Mr Morrison will meet Prime Minister Taur Matan Ruak and President Francisco Guterres in the East Timorese capital tomor­row. He will attend festivities to celebrate the 20-year anniversary of the independence referendum, when the nation­ cut its ties with Indonesia, with the help of Aust­ralian peacekeeping forces.

The leaders will ratify the Maritime Boundary Treaty, reconfiguring the royalty split from the undeveloped Greater Sunrise gasfields from 50-50, as forced under the Howard government, to at least 70-30 in East Timor’s favour.

East Timor’s ambassador to Australia, Abel Guterres, said his country would source the $16bn to build the onshore gas-processing plant from whichever country was willing to fund it, including China.

“If Australia doesn’t want to do it, then OK, we have no choice,” he said. “We are friends to all ­countries, including China. We are not an enemy to any country.”

The ambassador said the decis­ion to build the plant in East Timor, rather than offshore or ­piping the gas to Darwin for processing, was a “calculated risk”.

“Having the processing here onshore on our south coast at Beaco, it’s very important for us as a young country,’’ he said.

“With the investment that comes with it, it’s billions of dollars. And that would transform the country economically, because that would lead to other multiple effects in terms of commerce, food production, all those things that come with it.”

Security expert Alan Dupont, a non-resident fellow at the Lowy Institute, said Australia could “lose out in a big way” if China funded the project, warning the People’s Liberation Army aimed to build defence facilities in East Timor.

“China could invest in a major way and make East Timor part of its Belt and Road Initiative, which would basically make it the major donor and supporter of Timor’s development,” Dr Dupont said.

“So if the Chinese wanted to build (defence) facilities it would be very difficult for the East Timorese to say no. That will open the possibility of China building a military-capable runway, support facilities, and so on, in East Timor.”