The Federal Opposition says it is the Government that is playing politics over Australia's negotiations with East Timor over the boundaries in the Timor Sea, which determine control over oil and gas reserves.

Opposition Leader Mark Latham says it appears there has been bad blood in the negotiations so far and if Labor is elected, it would restart the talks.

Mr Downer says those "extremely irresponsible" comments have undermined Australia's position, and the talks may have to be suspended.

"We're in the middle of a very delicate and a very difficult negotiation," he said. "We've got the next round of the negotiations scheduled for September. "If the Labor Party is still going to take the view that it wants to politicise these delicate negotiations, we'll have no choice but to suspend the next round of the negotiations... until after the election has taken place."

Mr Downer says Mr Latham does not know what he is talking about. "Look it's just irresponsible politicking and it simply demonstrates Mr Latham's inexperience and naivety," he said.

But Labor's Kevin Rudd says the Opposition policy on East Timor was released in January. "Six months later Alexander Downer decides to make a political case out of it," he said. "I'd suggest that what you've got here is a clear illustration of Mr Downer constantly acting as a domestic political commentator on the Labor Party, rather than acting as the Foreign Minister of Australia."

The Australian Government is claiming ownership of an oil-rich continental shelf two-thirds of the way across the Timor Sea, while East Timor wants the boundary drawn mid-way.

Last month East Timor Prime Minister Mari Alkatiri said a half-half agreement would be worth an additional $US12 billion in revenue for his country over the "next generation". He said Australia's proposal would generate $US4.0 billion for East Timor.