Sydney – A pro-East Timor activist group has accused the Australian government of appeasing Indonesia and ignoring problems in the territory as the two countries signed an historic maritime treaty.

The Australian-based Friends of East Timor said on Friday in a statement that "the Australian people...will be outraged when our foreign minister (Alexander Downer) panders to (Indonesian foreign minister) Alatas while the ongoing gross human rights violations occur inside occupied East Timor".

Australia and Indonesia signed on Friday a sea boundary treaty, establishing economic zones between the two countries after some 30 years of negotiations.

Indonesia invaded East Timor in 1975 and annexed it one year later but the United Nations still regards Portugal as the territory's administering power.