Camden Smith – Closer ties can be forged between East Timor and the Territory because a Labor government is in power, East Timor's Chief Minister-elect Mari Alkatiri said yesterday.

Mr Alkatiri said the election last month of the Labor Government would make relationships "different" than with the previous CLP administration. He also praised the Territory Labor Party's opposition to the Indonesian invasion of East Timor in 1975.

Earlier this year, Mr Alkatiri threatened to boycott a ceremony in Dili to mark a breakthrough in negotiations between Australia and East Timor on Timor Sea gas because former Chief Minister Denis Burke was going to attend. At the time, Mr Alkatiri was critical of Mr Burke's vocal role in oil and gas negotiations with East Timor.

Mr Alkatiri said: "It will be different because we have an elected government in East Timor and we have a new government in the Territory. If we look to the past, the Labor Party was always a supporter of the struggle in East Timor. "

Mr Alkatiri said the new East Timorese Government was eager to reach agreement on the allocation of Timor Sea royalties. He said: "We need the money two or three years from now but we need a good deal for both sides. Imagine a country with a $65 million budget every year, and increase it to $200 million, it's very important for this country."