Corinne Podger – Defence Minister Joel Fitzgibbon has told Radio Australia that Australian troops will stay as long as East Timor says it needs them.

"This is a decision we need to make together; they are a sovereign nation state and at the end of the day, we will further draw down when they decide they are capable of maintaining their own security and therefore their own peace and stability," he said.

"People often don't appreciate how crucial our work is here. A stable and secure East Timor is crucial to Australia's own long-term security, so we will be here as long as is necessary."

Mr Fitzgibbon was in East Timor to open an Australian-funded specialist training wing. The new centre will assist with Canberra's efforts to help train the East Timor Defence Force in communications, logistics, engineering and medical skills.

Mr Fitzgibbon, who is making his second trip to East Timor, met President Jose Ramos-Horta and Prime Minister Xanana Gusmao in Dili. He was accompanied by Veterans Affairs Minister Alan Griffin and the Chief of the Australian Defence Force, Air Chief Marshal Angus Houston.

"My discussions with both the President and Prime Minister focused on areas for future cooperation, including maritime security and providing additional English language instruction," the Defence Force Chief said.

Mr Fitzgibbon says Australian troops are working not only to assist with peacekeeping, but also in training the army and police.

"Those two organisations are working far more cooperatively together than ever before, so the progress is excellent, but it's still early and peace and stability remains fairly fragile here."

He says last year's assassination attempts on East Timor's leaders is an indication of how fragile the situation remains, and he says increasing employment for young East Timorese must be a priority to ensure the country's stability over the longer term.

"Just like in places like Afghanistan, raising living standards and giving people employment opportunities are critical to maintaining peace and security in the longer term," he said.

"And there is a significant international effort here in terms of foreign aid and capacity building which gives me optimism about East Timor's long-term future."