East Timor on Friday stood by its former occupier, Indonesia, in jointly rejecting a UN panel's recommendation that an international tribunal be created to try those accused of violence sparked by the territory's vote for independence in 1999.

The joint statement, released in Jakarta, signaled East Timor's intent to pursue good relations with its giant neighbor rather than seek justice for more than 1,500 Timorese killed when Indonesian-backed soldiers and militias launched a bloody rampage before and after the independence vote.

It also reflects improving ties between the two countries following the end of Indonesia's brutal 24-year occupation.

"Both parties expressed their disappointment toward the report of the commission of experts," the statement said, referring to a UN panel that recommended the creation of an international tribunal. "Both parties shared the opinion that the commission does not promote the process of reconciliation."

Following the 1999 violence, Indonesia promised to punish those responsible, but all 17 police, military and government officers who stood trial were acquitted.

The UN panel, consisting of five international judges who visited Indonesia and East Timor earlier this year, was appointed to evaluate Indonesia's attempts to bring the perpetrators to justice.

It submitted a report to the UN Security Council last week that described Jakarta's efforts to secure justice as "manifestly inadequate."

The report recommended that the Security Council establish an international criminal tribunal akin to those for the former Yugoslavia and Rwanda unless Indonesia takes "substantive action" within six months.

East Timor had previously opposed such a court, saying relations with Indonesia were more important than settling old scores.

The two countries recently set up a joint Commission on Truth and Friendship to deal with the violence. The body, staffed by officials from both countries, will investigate the violence but has no power to recommend criminal proceedings.

The two countries also signed agreements establishing a provisional land border as well as technical assistance and training in Indonesia for Timorese civil servants.