The Australian Government's proposal to develop a regional processing centre for asylum seekers East Timor looks more shaky by the day.

The Government says an Australian delegation visited East Timor last week for discussions and had productive talks. But East Timor's Deputy Prime Minister says the Australians arrived when many Timorese politicians were visiting China.

Presenter: Sara Everingham

Speaker: Mario Carrascalao, East Timor's Deputy Prime Minister

Sara Everingham: The Australian government says it sent a team of officials to East Timor last week for initial discussions about the proposal of a regional processing centre for asylum seekers. East Timor's Deputy Prime Minister Mario Carrascalao says they weren't formal talks.

Mario Carrascalao: No there is no negotiations until now.

Sara Everingham: East Timor's Prime Minister Xanana Gusmao has delegated responsibility for negotiations with Australia to President Jose Ramos-Horta. But when the Australian team visited, Dr Ramos-Horta was in China. East Timor's foreign minister was there too, in fact 100 officials from East Timor took part in the China trip. The Australian delegation met representatives from Timor's Ministry for Foreign Affairs and from the president's office. Mario Carrascalao says they did not meet one minister in East Timor's government.

Mario Carrascalao: Then they went back there was no negotiation no position being taken.

Sara Everingham: Mario Carrascalao is also the acting foreign minister. He says in those meetings the Timorese probably just reiterated the position that the government is open to hearing Australia's proposal. He wants to make it clear the conversation went no further.

Mario Carrascalao: This is not, as I say, not an issue here in Timor-Leste, nobody talking any more on that, because practically we know that the majority of the people are going to refuse, you know, to reject this proposal.

Sara Everingham: Earlier this month East Timor's parliament passed a unanimous resolution opposing Australia's proposal. The Australian government shrugged it off saying the vote wasn't well attended. But Mario Carrascalao says it was representative of the opinion in East Timor. He says he too is opposed to the idea.

Mario Carrascalao: After the resolution taken by the parliament it is not easy for any minister to take a step that is to go against what had been decided by the parliament.

Sara Everingham: The Australian government insists there is still life in its East Timor solution. A spokeswoman for Australia's minister for foreign affairs, Stephen Smith, says East Timor's top political leaders have indicated willingness to continue discussions about Australia's proposal. She says as part of those talks Mr Smith recently had a phone conversation with his East Timorese counterpart. She says Australia is also discussing its plan with officials from the region at the ASEAN-related meetings this week in Hanoi.