East Timor Situation Report

Publication Date: July 2001

Publisher: Library of Congress. Congressional Research Service

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A United Nations Transitional Authority in East Timor (UNTAET) was established in October 1999 following the entrance of U.N.-sponsored international peacekeepers into East Timor. These measures came in response to Indonesianinstigated violence against East Timorese who had voted overwhelmingly for independence from Indonesia in a referendum of August 30, 1999. UNTAET's mandate is broad. It is to help East Timor recover from the violence through humanitarian aid and reconstruction of facilities that were damaged or destroyed. It is to help East Timor establish a functioning government, which will take over from the United Nations when East Timor formally becomes independent. Independence is estimated for the end of 2001, but recent statements by U.N. officials suggest that it could be postponed. The United Nations also has been involved in Indonesian West Timor in assisting about 240,000 displaced East Timorese who fled or were forcibly transported to West Timor during the violence.

The U.N. operations are financed through assessments on all member nations and voluntary contributions from governments. Current funding levels are to cover the period 2000-2002. The U.S. Agency for International Development provided $29 million in FY2000 and $25 million in FY2001 in bilateral assistance. U.S. aid is helping to establish a judicial system, train civil servants, assist local radio and television programming, educate voters, and assist the coffee industry (East Timor's main export). The Bush Administration requested $10 million for FY2002, but Congress already has indicated that $25 million may be appropriated.

East Timor faces a continuing threat from Indonesia. East Timorese militia groups, who committed much of the violence in September 1999, regrouped in West Timor after the establishment of UNTAET. They controlled the camps housing displaced East Timorese, preventing many from returning home. In August 2000, militia members murdered U.N. workers in the camps. The militia rearmed with assistance from the Indonesian military, and they infiltrated back into East Timor. The Indonesian military also has resisted attempts to bring to trial military officers and militia leaders responsible for the violence of September 1999.

The United States faces several policy issues: levels of future aid to East Timor, the U.S. role in assisting an indigenous East Timorese military force, and influencing Indonesian policy toward East Timor.