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DR JOSE RAMOS HORTA INTERVIEW - Wednesday 11th April, 2007

GEORGE NEGUS: Dr Horta, thanks very much for your time. At this point we don't really know who's going to be the next president of East Timor. How confident are you that you can go from prime minister to president?

DR JOSE RAMOS HORTA, PRESIDENTIAL CANDIDATE: Well, I'm very confident, but I haven't lost much sleep over it. I never wanted to be a candidate. I didn't do much campaigning in the last two weeks or so. If the people decide to vote for me, I will accept the burden of the cross, will carry it with honour and respect for five years. If they have chosen someone else, well, I will honour that choice as well. Which ever way, I feel I will be a winner. Winner if I win the election, winner if I lose, because I win my freedom.

GEORGE NEGUS: It actually sounds like you've got mixed feelings, but, given your decades of campaigning for your country's independence, we would've thought it would be a foregone conclusion that you'd win. Why do you think there's any doubt about you?

DR JOSE RAMOS HORTA: Well, I have had significant support wherever I went, in Dili particularly, the capital. Many people seem to be trusting me and I accept their trust. I know I will do the job with confidence, with integrity - I would not fail them, particularly in the next five years it's so crucial to heal the wounds of the country. But if they feel someone else can do it as well, equally well, I'll be happy because I have a writing career for me waiting to start.

GEORGE NEGUS: Only a couple of days ago, your colleague Xanana Gusmao said East Timor is pretty close to being a failed state. That's a dire situation to be in.

R JOSE RAMOS HORTA: Well, I would say that the country has tremendous potential to move forward. We have resources from the Timor Sea, more than US$1 billion sitting in our treasury, waiting to be spent, spent wisely on the people who need most, the poorest of this country, the widows, the orphans, the children the youth. They are the future. We must invest in them.

GEORGE NEGUS: Why hasn't that money been spent - that $1.2 billion nest-egg from your oil royalties?

DR JOSE RAMOS HORTA: Well, the previous prime minister, Dr Mari Alkatiri, he is a fiscal conservative. He does not believe in being audacious, in being compassionate in being aggressive in tackling the issue of poverty. He makes grand speeches on fighting poverty as a national cause but he doesn't move, hasn't moved aggressively enough, creatively enough with new ideas. I have argued that we can simply sign off cheques to the tune of $40 million to the poorest of this country. This way we are not responding to a moral and ethical challenge but we are injecting money into the rural economy.

GEORGE NEGUS: So there's a serious split between yourself and Mari Alkatiri, your old colleague from the Fretilin days.

DR JOSE RAMOS HORTA: Oh, definitely. When it comes to how to manage the economy, we have a profound differences. While Dr Alkatiri talks a lot about the private sector, he doesn't do much about it. I have taken the initiatives in the few months that I've been in office in for instance, initiating radical reform of the entire fiscal system that would make East Timor a fiscal paradise, next only to Hong Kong, that would attract investors from Australia and the entire region.

The Asian Development Bank, in its latest report, only a week or so ago, has already indicated that they are forecasting economic growth of more than 30% in 2007/2008, based on oil revenues and my policies.


GEORGE NEGUS: You've certainly got a long way to go from one of the poorest nations on earth to this economic miracle that you're talking about.

DR JOSE RAMOS HORTA: Yes, obviously for economic growth for progress, material benefits to spread around, we have first to secure peace and stability. For that we need Australian and New Zealand troops to stay here until the end of 2008. I need the international United Nations police force to stay here at least until 2012.

GEORGE NEGUS: Which is actually another disagreement between you and Mari Alkatiri. He would see Australian troops out of East Timor very smartly.

DR JOSE RAMOS HORTA: Well, interesting enough, he and Mr Lu Olo Guterres, his leader and parliamentary speaker and President Xanana, they are the ones who signed a letter to Mr Howard back in May, asking the troops to stay. But a few weeks or a few months later, Dr Alkatiri was already claiming in the media that he never wanted foreign troops here when he, in fact, took part in a meeting with me, with President Xanana, with a brigadier, a commander of our defence force and all of us unanimously agreed to bring in international security forces.

GEORGE NEGUS: Can I ask you this? If Fretilin doesn't have a serious role to play, isn't that a problem for your country's stability?

DR JOSE RAMOS HORTA: Well, Fretilin would not be wiped out politically - it could be a formidable opposition in the parliament. That is what democracy is all about. I would hope that the Fretilin leadership, in particular Dr Mari Alkatiri, would be able to show to the country and to the rest of the world that losing the election doesn't mean necessarily that Fretilin would reject and become violent and be an obstruction to stability in this country. Again, Dr Alkatiri and many of his colleagues do not have a good reading of the mood of the country. The simple fact that, Mr Fernando de Araujo of the Democratic Party has done so well around the country is an indication of the widespread frustration, disillusion, unhappiness and resentment with the ruling party Fretilin.

GEORGE NEGUS: Can I read you something that was in the 'New York Times'? It's a pretty awful picture that they paint. Talking about East Timor, they say, "Poverty and unemployment have led to be spread of gangs and contributed to an atmosphere of instability and lawlessness. Tensions remain between an older Portuguese speaking elite and a younger generation educated during 24 years of Indonesian rule. The failure of independence to bring prosperity has added to a sense of futility and anger." Doesn't that mean that since those heady days of independence you and Xanana Gusmao have failed to move your country forward?

DR JOSE RAMOS HORTA: Well, of course, the 'New York Times' and other American writers, they have this sweeping black-and-white judgments about anything anywhere in the world. They fail to forget that we are only 4- or 5-year-old independent country. And in five years it's impossible to transform an economy, transform a country that we inherited in 2002 from the ashes, ashes of destruction, caused by the Indonesian army and the militias in '99. And when the UN departed in 2002, what they gave us was only a skeleton, a sketch of a state. And so in the last five years, and that is credit to Dr Alkatiri and the others, we helped to build the state, its constitution and its laws. So to say, given only less than five years, that we have failed, I think is one of those typical, America, journalist jargons that see everything in black and white.

GEORGE NEGUS: Dr Horta, good to talk to you.

DR JOSE RAMOS HORTA: My pleasure, thank you.