[Australians keen to help in the reconstruction of East Timor are being asked to make a financial commitment. The world's newest nation will be looking in its own backyard for the foreign investors needed for everything from roads and phones to farming and fishing, naming Australia and Asia as the best sources of investment and expertise. But a conference attracting about 100 business people in Sydney has been told that legal structures are lacking and that security issues could discourage investment.]

Presenter/Interviewer: Finance Correspondent, Karon Snowdon

Speakers: Jose Teixiera, East Timor Secretary of State for Tourism, Investment and Environment; Major General Mike Smith, retired and former Deputy Commander, UN Peace Keeping Force; Alexander Downer, Australian Foreign Minister; David Mayes, Director Robertson and Marks Architects

Snowdon: The international conference in Sydney was called "East Timor: Ready For Business". But is it? The country's transformation in the last couple of years has been nothing short of miraculous, but a lot of work remains to be done before investors feel comfortable about committing large amounts of money. Although not a universal view, some attending the conference thought it was being held too soon – before the new government has had time to put together the necessary regulation and legal framework or worked through the complex mess of land ownership and valuation, left from the Indonesian years, issues for which potential investors need answers. East Timor's Secretary of State for Tourism, Investment and the Environment, Jose Teixiera, says all that is not far off and the first cab off the rank will be a simple, unified commercial code.

Teixiera: Its a cliche but its just around the corner, and we might see within two months it being promelgated into law.

Snowdon: Why should business go to East Timor? The predictions for economic growth are zero for the immediate future, it's not a booming economy, it's really grass roots stuff isn't it?

Teixiera: Because its a greenfields site. There are opportunitites there. We're creating the environment to attract business. We think the fact that we've come so far in so little time should give people confidence that if they have the courage to come and invest that they will see their investment bear fruit, such as certain agri-business and also in the tourism sector.

Snowdon: All greenfields investments take a certain courage but taking investment risks can be rewarding and getting in on the ground floor is one of East Timor's current selling points. But the second most asked question on the day after regulation, concerned the security situation. According to Major General Mike Smith now retired but previously Deputy Commander of the UN Peace Keeping Force in East Timor, there are no major problems for business there. But his advice is for the government to pay as much attention to security as it has to development and governance.

Smith: Unless you do this cohesive planning, then simply, the nation won't sustain itself. If, in the border regions of East Timor the people do not believe that the government of East Timor has an active presence, and if they do not believe that their lifestyle is going to be bettered, then what will be set down there is potential seeds for an insurgency campaign.

Snowdon: Australia's Foreign Minister Alexander Downer told the conference Australia remains committed to helping East Timor's economic development and he believes security threats, particularly from any lingering militia, are remote – warning instead about basic law and order.

Downer: I think the quality of policing there is going to be very important, and for us our aid program needs to be addressing that issue, so do other countries such as the Portuguese and the like.

Snowdon: Also at the conference, the Australia-East Timor Business Council was launched and while it might be too early to report on significant new investment plans there's no doubt about the high level of business good will towards the newly independent East Timor. David Mayes, a Director of Robertson and Marks Architects in Sydney explains why his company will be at least taking a look at business opportunities there.

Mayes: I guess about 12 years ago I met a very passionate Timorese Australian called Gerry de Sousa, and he talked about his history and how he'd come to Australia as a refugee and how he was going to try and put something back into the country. That was 12 years ago and I've kept in touch with him and now its all happened and I'm interested in I guess following up on that.

Snowdon: How can an architectural firm help East Timor and what's in it for you?

Mayes: We can help just with our experience in planning and thinking about things before they're done, and I guess for us it's just another opportunity to work in architecture and look at a new culture and country, and perhaps learn something from them about their past and the Portuguese connection and the nature of the architecture and perhaps build on that.