Stephen Spencer, Canberra – The federal ALP has moved to dramatically recast major areas of its foreign policy, in what it frankly admits is a recognition that some areas, in particular Indonesia and land mines, could have been handled better in government.

For the first time, the draft policy to be put to January's ALP National Conference recognises the right to self-determination for East Timor, declaring this to be the only lasting solution to the conflict there.

And in a move that could further strain relations with Indonesia's military-backed government, the draft platform commits a Beazley Labor government to consulting with Indonesia's opposition pro-democracy forces.

If Labor were to be elected, the East Timor proposal would mark a major change in foreign policy by Australia, which is still the only country to recognise Indonesia's 1975 forced annexation of the former Portuguese colony.

However, opposition foreign affairs spokesman Laurie Brereton said he was confident Australia's relations with Indonesia had matured enough to cope with the new policy.

"Because of the maturing of the relationship between the two countries over the last two decades, we now have a very close relationship which should allow us to express a view," Mr Brereton told AAP.

But he made it clear that differences over East Timor would not be allowed to derail relations between Australia and Indonesia.

"It's a view - no more than that," Mr Brereton said.

"But we're not in a position to impose that view."

On the question of wider consultation with Indonesia's pro-democracy forces, Mr Brereton said it was a recognition that Australia needed to look to the future beyond President Suharto's rule.

"It's not a matter of taking sides," he said.

"We're simply indicating that the dialogue should be broader than it has been in the past."

Mr Brereton said the new policy on East Timor, and support for a complete ban on landmines, which the Keating government opposed, were a recognition that some areas of foreign policy could have been handled better by the Keating and Hawke governments.

"It builds on Labor's strengths when in government and reviews critically our weaknesses, such as Indonesia and landmines," he said.

The draft platform now commits Labor to completely eliminating Australia's stockpile of landmines, except for a very limited number which would be retained for defence force training.

In a major overhaul of Labor's platform, which previously held a position on virtually every world trouble spot, Mr Brereton said Indonesia and China were the only two countries to be singled out in the draft policy.

And in a pointer to the direction of the entire new ALP platform, Mr Brereton said this was due to a recognition that platforms should be about guiding principles, rather than specific instructions on every area of policy.

The foreign policy, for instance, is headed Securing Australia's Place in the World, and contains such sections as Engagement in Asia-Pacific and Beyond, Human Rights in International Relations, Global Diplomacy, and Strength and Self-reliance in Defence Policy.

The draft platform's position on foreign aid is likely to disappoint many aid organisations, with its commitment in the short term to merely sustaining the current historically low level of foreign aid.

Howard government budget cuts have taken aid spending to just 0.27 per cent of Gross National Product (GNP), compared to the United Nations target for developed nations of 0.7 per cent.

The draft platform promises not to further diminish this low level of aid, and to sustain and build it towards a longer term goal of 0.4 per cent, or more than one billion dollars extra a year, by 2005.

But in a move that is likely to be welcomed by aid organisations, Mr Brereton said the aid budget would now be unequivocally targeted at helping those most in need.

"It will have a single clear goal of helping developing countries and reducing poverty," Mr Brereton said.

While there was still scope for aid to be tied up with promoting Australian trade, Mr Brereton said this would now be secondary to the aims of the aid budget.

"Short term diplomatic and trade goals can compromise foreign aid," Mr Brereton said.

"Aid should be aid."