I. Introduction

1. By its resolution 1599 (2005) of 28 April 2005, the Security Council decided
to establish the United Nations Office in Timor-Leste (UNOTIL) and requested me
to keep it closely and regularly informed of developments on the ground, the
implementation of the mandate of UNOTIL, and the planning for a transition to a
sustainable development assistance framework by 20 May 2006. The Council also
requested me to submit a report by 28 August 2005. The present report covers major
developments on the ground since my end of mandate report on the United Nations
Mission of Support in East Timor (UNMISET) dated 12 May 2005 (S/2005/310) and
describes the activities undertaken by UNOTIL since its inception.

II. Recent political and security developments in Timor-Leste

2. During the reporting period, the overall situation in Timor-Leste remained
calm and stable, except for a few isolated incidents involving mostly martial arts
and political opposition groups. In order to curb the violent activities of martial arts
groups, a series of initiatives was undertaken, with the support of President Xanana
Gusmão, which culminated in the signing of a joint declaration by 14 groups on
30 June. The signatories to this declaration committed themselves to preventing,
reducing and eradicating acts of violence between martial arts groups. On 22 July,
six members of a political opposition group were detained in Lautem district
following violent clashes with the local community, which reportedly opposed the
group’s opening of an office and the raising of its flag in the village of Pitilete.
Following the incident, from 22 to 29 July, the Timorese national police conducted
coordinated search operations of that group’s premises across the eastern part of the
country, reportedly seizing items including military uniforms, machetes, knives,
flags, a firearm and ammunition. Subsequently, the coordinator of the group
submitted a complaint to the Provedor for Human Rights and Justice.

3. Local elections were held in two phases in the districts of Cova Lima, Ermera
and Viqueque, on 12 and 18 May, and in those of Ainaro, Aileu and Manufahi, on
27 June and 2 July. The elections were conducted in a peaceful and orderly manner,and the average voter turnout reached about 86 per cent. While the ruling party won
a relative majority, opposition and independent candidates fared well, especially in
Cova Lima and Ermera, jointly securing about half of the contested seats. Although
some technical difficulties primarily involving voter verification continued to be
encountered, improvements were noted in voter education and in the level of
cooperation between the Secretariat for the Technical Administration of Elections
(STAE), the local authorities and the police. Local elections have now been held in
11 of Timor-Leste’s 13 districts, and preparations have begun for the final round to
be held in the districts of Dili and Liquica in late September 2005.

4. Further advances were made towards strengthening the Timorese institutional
and legal framework. Two important organs provided for in the Constitution, namely
the Superior Council for Defence and Security and the Council of State, were
inaugurated on 12 and 17 May respectively, providing the President with the
institutional support required for implementation of his mandate. The Provedor for
Human Rights and Justice and his two Deputies were sworn in by the National
Parliament during the reporting period. The office of the Provedor provides an
important legal instrument to address, inter alia, the continued reports of human
rights violations by the Timorese police, including excessive use of force, illtreatment
and arbitrary arrest and detention. On 25 July, the National Parliament
approved the statute of the Office of the Public Prosecutor, which establishes the
procedure for appointment of the Prosecutor-General, sets out the organic structure
of the Office of the Prosecutor-General and provides for the Superior Council of the
Prosecution Service. On 29 July, the Parliament gave its authorization for the
adoption of the penal code and of the penal and civil procedure codes by
government decree.

5. A decree law on restructuring of the Government was promulgated on 28 June,
raising the total number of ministries from 10 to 15 and establishing, inter alia, five
new Secretary of State posts for the coordination of regional development and
investment programmes. Pursuant to the law, on 27 July Prime Minister Mari
Alkatiri officially announced the composition of the new Government, which has 41
members, of whom 7 are women and 2 have strong ties with an opposition party.
The new Government was sworn in by President Gusmão on 28 July. Another major
legislative development that occurred during the reporting period was the approval
by the National Parliament of the draft law on freedom of assembly and
demonstration on 18 July 2005, following a positive decision of the Court of Appeal
on its constitutionality. The parliamentary resolutions to ratify the Conventions on
the Privileges and Immunities of the United Nations and the Specialized Agencies
were also approved by the National Parliament on 19 July. Moreover, during the
reporting period, the National Parliament approved the law on the Petroleum Fund,
the law on petroleum taxation and the law on petroleum activities. The laws on
domestic and external investment, the parliamentary laws on the juridical regime of
real estate (part II) and on licensing, oversight and regulation of insurance
companies and insurance brokers, and Government decrees on the Institute of
Health Sciences and on the statutes for hospitals were also promulgated during the
period under review. However, no progress was registered on the formulation of key
legislation for the establishment of the High Administrative Tax and Audit Court, as
mandated by the Constitution, or on the drafting of the electoral law for the
parliamentary elections scheduled to be held in 2007.

6. Following the signing of a joint declaration by Prime Minister Alkatiri and the
bishops of Dili and Baucau on 7 May, acknowledging that religious teaching must
be included as a regular discipline in the school curriculum, relations between the
Government and the church have normalized. On 9 June, the Council of Ministers
approved a new curriculum that includes one hour of religious teaching per week
during normal school hours, attendance being subject to parental consent. The joint
working group established pursuant to the 7 May declaration, comprising 40
representatives from the Government, the Catholic Church and other religious
denominations, met twice during the reporting period to examine proposals to
reform the state education curriculum and other issues of concern.

7. Relations between Timor-Leste and Indonesia continued to improve. The
foreign ministers of the two countries met in Bali on 18 and 19 June to address
issues related to the bilateral Commission for Truth and Friendship and their
common border. Subsequently, a Timorese delegation travelled to Jakarta to attend
the third meeting of the Joint Ministerial Commission on 7 and 8 July. A number of
outstanding issues were discussed, including border issues. According to the joint
statement issued at the end of the meeting, agreement was reached, inter alia, on
completion of negotiations on unresolved segments of the common land boundary
by the end of the year; the establishment of a new border management mechanism
between Timor-Leste and Indonesia’s border security agencies; the opening of a bus
line from the enclave of Oecussi to mainland Timor-Leste; and the issuance of
border passes to the residents of border areas.

8. On 1 August, the Governments of Timor-Leste and Indonesia officially
announced the names of the 10 members — 5 from each country — of the bilateral
Commission for Truth and Friendship. The Commission met for the first time in
Denpasar, Bali, on 4 and 5 August, to discuss matters related to its internal
structures, working procedures and programme of work. The 10 members of the
Commission and five of their six alternates were sworn in by President Gusmão and
his Indonesian counterpart, President Susilo Bambang Yudhoyono, at an official
ceremony held on 11 August in Bali, where the Commission’s joint secretariat is
located. On that occasion, the two Presidents also signed a memorandum of
understanding on the establishment of the Commission.

9. The Commission of Experts which I established to review the prosecution of
serious human rights violations committed in Timor-Leste in 1999 (see S/2005/310,
para. 8) visited Jakarta from 18 to 20 May. During its visit, the Commission of
Experts met with a number of relevant officials, including President Yudhoyono, the
Minister for Foreign Affairs, the Commander-in-Chief of the Indonesian army, the
Attorney General, the Chief Justice and public prosecutors. The Commission of
Experts submitted its final report to me on 27 May, and I subsequently shared it with
the Governments of Indonesia and Timor-Leste, for their comments, and with
members of the Security Council. President Gusmão and Prime Minister Alkatiri
conveyed their views on the report in separate letters addressed to me, dated
22 June. The report of the Commission of Experts and the comments of President
Gusmão and Prime Minister Alkatiri were issued as Security Council documents on
22 and 25 July, respectively (S/2005/458 and S/2005/459).

III. Contribution of the United Nations

A. Role of the Mission

10. Pursuant to Security Council resolution 1599 (2005), by which the Council
called on relevant stakeholders “to start immediate planning for a smooth and rapid
transition from a special political mission to a sustainable development assistance
framework”, UNOTIL has placed special emphasis on the coordination of donor
assistance and encouraged the implementation of measures towards sustainable
long-term development in Timor-Leste. To this end, UNOTIL organized a
“brainstorming” retreat with officials of the Timor-Leste Government,
representatives of the diplomatic community, United Nations agencies, multilateral
financial institutions and non-governmental organizations in Dili on 9 June, to
discuss strategies and assistance programmes for the implementation of the
Mission’s mandate. Subsequently, in accordance with paragraph 6 of resolution
1599 (2005), my Special Representative, Sukehiro Hasegawa, established a
consultative group to coordinate the assistance efforts of these stakeholders. The
first meeting of the consultative group, chaired jointly by my Special Representative
and Prime Minister Alkatiri on 28 June, was opened by President Gusmão and
discussed the transition from UNOTIL to a sustainable development assistance
framework. Specific consideration was given to the need to retain a number of key
civilian adviser posts beyond the expiration of the UNOTIL mandate (see para. 20
below). The second meeting of the consultative group, held on 26 July, addressed
the institutional capacity development of the Timorese national police (see para. 26
below).

11. In accordance with paragraph 2 of Security Council resolution 1599 (2005),
UNOTIL has also instituted an internal monitoring, review and coordination
mechanism known as the policy review and coordination meeting. Its primary
purpose is to bring together a number of stakeholders, including civilian advisers,
development partners, representatives of UNOTIL and other United Nations system
actors, to monitor progress in the Mission’s programme areas, review policy
measures taken by the Government and contribute to the work of the consultative
group.

12. Pursuant to Security Council resolution 1543 (2004), the Serious Crimes Unit,
the Defence Lawyers Unit and the Special Panels for serious crimes concluded all
activities on 20 May 2005, as the UNMISET mandate came to an end. However, in
paragraph 9 of its resolution 1599 (2005), the Security Council underlined the need
for the Secretariat, in agreement with Timor-Leste authorities, to preserve a
complete copy of all the records compiled by the Serious Crimes Unit. As
previously reported (S/2005/310, para. 19), 10 staff members were retained until
30 June for this purpose. During that period, they established copies of some
160,000 pages of the Unit’s records. They also scanned about 10,000 photographs
documenting forensic work and entered them into a database.

13. A handover ceremony was held in Dili on 3 June to mark the transfer of all
court documents of the Special Panels for serious crimes to the Dili district court.
All court files are now closed except to legal parties and other members of the
public requesting access approved by a judge, per order of the President of the Court
of Appeal. All records compiled by the Serious Crimes Unit, including all the copies
that have been made for preservation by the Secretariat (see para. 14 below), are stored in the Office of the Prosecutor-General of Timor-Leste, which previously
housed the UNMISET Serious Crimes Unit. UNOTIL is helping to guard the
premises of the Office of the Prosecutor-General, to ensure the security of the
building and the records it contains.

14. Pursuant to paragraph 9 of Security Council resolution 1599 (2005), UNOTIL
is negotiating an agreement on the preservation and management of the serious
crimes records with the Timorese authorities to regulate, inter alia, the conditions
under which copies of the records would be held by the United Nations and the
circumstances in which the Organization would grant access to them. In this
connection, an on-site evaluation was undertaken by the Archive and Records
Management Section of the Secretariat to determine what arrangements needed to be
made for the preservation of a full replica of these records by the Secretariat.
Meanwhile, all records of the Serious Crimes Unit are under the jurisdiction of the
Prosecutor-General of Timor-Leste, and no copies may be transferred to UNOTIL
until the agreement between the United Nations and the Government of Timor-Leste
is finalized. Once the agreement is concluded, the Secretariat will be required to
undertake the preservation and management of the serious crimes records well
beyond the expiration of the UNOTIL mandate, with considerable cost implications.

Programme I

Support for the development of critical State institutions

15. By resolution 1599 (2005), the Security Council authorized the continued
deployment of up to 45 civilian advisers to further the development of critical State
institutions. Following a comprehensive review of the outstanding requirements of
the Government and the public administration, 22 civilian advisers’ posts, which
were already provided under UNMISET, were retained for another year, while 23
new posts were instituted. In total, 2 advisers have been assigned to assist the Office
of the President; 3 have been assigned to provide support to the National
Parliament; 13 have been tasked to contribute to the functioning and further
development of the Timorese judiciary; while the remaining 27 advisers have been
deployed across various Government offices, including the Office of the Prime
Minister, the Office of the Inspector General and the ministries of justice, foreign
affairs, planning and finance, interior, the State administration and transport,
communications and public works.

16. During the reporting period, UNOTIL civilian advisers continued to focus on
the transfer of skills and knowledge to their Timorese counterparts, particularly in
the areas of democratic governance, rule of law, justice, human rights, transparency
and accountability. In this respect, seven legal advisers focused on strengthening
democratic governance in the National Parliament and the Office of the President
and contributed to the further development of the legislative framework of the
public administration and the judiciary by helping with legal drafting. The technical
assistance provided by UNOTIL legal advisers, in particular, proved essential to the
development of the recently enacted Petroleum Fund Act, which lays the legal
foundation for an accountable and transparent management of hydrocarbons.

17. In a letter to the Electoral Assistance Division of the Secretariat dated 12 July
2005, the Minister for Internal Administration, Anna Pessoa, requested continued
assistance “in drafting the whole scope of electoral laws and procedures needed for
the national elections scheduled for 2007”. By the same letter, Ms. Pessoa also requested support in negotiations with donors so as to obtain assistance in the areas
of “information technology, database management, capacity-building, electoral
management, operations and logistics” as required “in order to hold the national
elections in a satisfactory manner”. In consultation with the United Nations
Development Programme (UNDP) project manager for electoral assistance in
Timor-Leste and the Electoral Assistance Division, UNOTIL is exploring ways in
which its civilian advisers can help cover some of the needs for electoral assistance
outlined in the Minister’s letter, as part of their efforts to assist the capacity-building
of State institutions.

18. Despite significant progress towards the development of a viable justice sector,
Timor-Leste continues to depend on the support of international advisers to ensure
the proper functioning of the Courts, the development and enactment of relevant
legislation and the training of national judicial actors. Thus, 18 judicial advisers,
including four groups of judges, prosecutors and public defenders in the four district
courts, continued to perform line functions at both the Court of Appeal and district
courts to help reduce the backlog of cases and to ensure access to justice services at
the district level. In this regard, although the serious crimes process terminated on
20 May 2005 in accordance with Security Council resolution 1543 (2004), one
international prosecutor and two international defence lawyers continued to assist
the Timorese Court of Appeal so as to ensure the completion of pending trials.
During the reporting period, UNOTIL judicial advisers continued to provide training
to 15 judges, 15 prosecutors and 10 public defenders, most of whom are expected to
assume their duties in the national courts by May 2006. It is envisaged, however,
that following completion of the training programme, the Timorese judges will
continue to require on-the-job training, mentoring and supervision until the end of
2006. A coordinated strategy will need to be put in place to meet this requirement
through assistance offered by bilateral and multilateral partners, and to ensure a
smooth transition.

19. UNOTIL advisers in the areas of trade and investment continued to support the
Government’s capacity-building efforts and to provide valuable technical assistance.
In the finance sector, eight UNOTIL advisers helped to enhance the transparency
and accountability of the Office of the Treasury, the Office of the Inspector General
and line authorities. To this end, they focused, in particular, on the transfer of skills
and knowledge and on the elimination of corruption through relevant public
information, education and advocacy campaigns, as well as the implementation of
corrective measures. However, inadequate transparency and accountability in
various sectors of public administration remains a matter of concern. Instances of
bribery, theft of public funds and corruption continue to be reported and appear to
be on the increase, particularly in the areas of procurement and customs. At the first
meeting of the consultative group (see para. 10 above), the Minister of Planning and
Finance stated that international support continued to be required to improve the
public financial management system, as well as the management of oil resources. As
reported in paragraph 37 below, the World Bank and the International Monetary
Fund (IMF) are expected to provide technical assistance in these areas.

20. Meanwhile, efforts are under way to phase out the assistance provided by
UNOTIL civilian advisers before the expiration of the Mission’s mandate. At its
first meeting, the consultative group reviewed donors’ commitments to supporting a
smooth transition from UNOTIL to a sustainable development assistance
framework. The pledges made by bilateral and multilateral donors included continued funding of key civilian adviser posts currently provided by UNOTIL.
Ultimately, while the World Bank is expected to secure funding for most civilian
adviser posts in the finance sector, it is hoped that UNDP will be able to absorb key
civilian adviser posts in the sectors of justice, rule of law and democratic
governance.

21. As a result of these pledges, it may become possible to reduce the number of
UNOTIL civilian advisers before May 2006. In the longer term, the requirements for
advisory assistance are expected to decrease as additional progress is achieved in
the development of State institutions. The Capacity Development and Coordination
Unit of the Office of the Prime Minister, for example, is expected to assume
responsibility for coordinating the activities of UNOTIL and UNDP civilian advisers
by the end of August 2005, in an effort to entrust the Government of Timor-Leste
with greater managerial authority and responsibility, as well as to enhance the
coordination of institutional capacity development support programmes.

Programme II

Support for further development of the Timorese police

22. By its resolution 1599 (2005), the Security Council authorized the continued
deployment of up to 40 police training advisers to support further development of
the Timorese national police. Their activities are primarily targeted at the
specialized units of the Timorese police, which include the Police Reserve Unit, the
Rapid Intervention Unit and the Marine Unit, in addition to the Border Patrol Unit.
Assistance is also being provided to the Professional Ethics Office, Crime Scene
Office and Public Information Office of the national police and the immigration
services, as well as in the areas of close protection, counter-terrorism and explosive
ordnance disposal.

23. UNOTIL police training advisers provided three-dimensional support as: (a)
field trainers providing on-the-job training; (b) subject matter experts focusing on
the training of trainers; and (c) strategic planners who contribute to the strategic
development of the Timorese police leadership by engaging them in the
organizational planning process. A specific training package was designed for the
Rapid Intervention Unit, aimed at providing refresher training in crowd and riot
control, use of force and human rights protection. A standardized approach was
adopted to ensure that the training provided conformed to similar programmes
implemented by the Timorese Police Academy with support from bilateral partners
such as Australia and the United Kingdom (see para. 25 below).

24. UNOTIL police advisers attached to the immigration unit provided technical
assistance in drafting the readmission agreement and in designing border-crossing
passes. In addition, they completed a training manual on immigration and safe
handling of weapons, which was handed over to the Timorese police. UNOTIL
police advisers also helped to finalize an inter-government agency cooperation
agreement, by which the immigration, customs and quarantine departments may
assist the under-resourced Marine Unit in the task of conducting maritime
surveillance of 700 km of coastal borders. Finally, UNOTIL police training advisers
assisted in the establishment and development of the counter-terrorism section
within the intelligence section of the Timorese police.

25. All activities undertaken by UNOTIL police training advisers during the
reporting period were closely coordinated with the relevant units of the Timorese police, in order to ensure the sustainability of police development efforts and
facilitate local ownership of the process. UNOTIL police training advisers also
worked in close coordination with bilateral and multilateral partners to integrate and
complement their respective efforts. For example, UNOTIL police training advisers
and the Timor-Leste Police Development Project, supported by Australia and the
United Kingdom, jointly designed a four-week training programme for police
station commanders which commenced on 25 July. The UNOTIL police component
also held regular meetings with interested donors to strengthen cooperation and plan
integrated training initiatives for further development of the Timorese police.

26. As reported in paragraph 10 above, the second meeting of the consultative
group, which took place on 26 July, addressed issues related to further development
of the Timorese national police, including the Border Patrol Unit. The meeting was
attended, among others, by the General Commander of the national police and some
35 Timorese police officers, the Commander of the Border Security Task Force of
the Indonesian army, Indonesian army officers from Kupang and Denpasar and
UNOTIL police and military training advisers. Agreement was reached on the need
to develop the managerial leadership of the Timorese police; improve the integration
and coordination of bilateral and multilateral assistance to the police; and enhance
the accountability of the police and ensure effective border management by the
Border Patrol Unit and the Indonesian army. These goals will form an integral part
of the strategy of the UNOTIL civilian police component in the coming months.

27. In an effort to further develop the capacity of the Timorese national police, a
group of five Timorese police officers was recently selected to serve with the
civilian police component of the United Nations Interim Administration Mission in
Kosovo (UNMIK). These officers will be posted to work with their international
counterparts in the Mission, alongside the Kosovo Police Service, in managerial and
operational areas. It is hoped that through their one-year assignment to UNMIK, the
Timorese police officers will gain valuable experience, skills and knowledge which
they can share with their national colleagues upon return to normal service with the
national police of Timor-Leste.

Support for development of the Border Patrol Unit

28. With regard to UNOTIL assistance to the development of the Border Patrol
Unit, the mandate provides for up to 35 additional advisers, of whom 15 may be
military advisers. As indicated in my previous report to the Security Council
(S/2005/310, para. 24), the additional 20 positions are being filled by police training
advisers. The advisers are mandated, inter alia, to assist the Timorese police in
developing procedures and training programmes for the Border Patrol Unit and to
assist the Government in coordinating contacts with the Indonesian military, with
the objective of enabling the Border Patrol Unit to assume full responsibility for
such coordination as soon as possible.

29. A joint concept of operations was developed to ensure close cooperation
between the police and the military training advisers tasked with further
development of the Border Patrol Unit. Joint operations and reporting mechanisms
have been established at UNOTIL headquarters, where police and military training
advisers plan and coordinate their activities in the three border sectors of Bobonaro,
Cova Lima and Oecussi while maintaining regular contact with the Timorese
national police headquarters. Joint military and police training adviser teams are deployed to each of the three border sectors. Military training advisers are primarily
responsible for facilitating relations between the Border Patrol Unit and its
Indonesian counterpart, while police training advisers provide training and
mentoring to the Border Patrol Unit.

30. UNOTIL police and military advisers jointly visited all Border Patrol Unit
posts, where they gave guidance to officers in the management of operational
information and other aspects of their work. Similar visits have commenced to all
district headquarters of the Border Patrol Unit. During the reporting period,
UNOTIL military training advisers also finalized a border management training
curriculum with detailed lesson plans to be implemented towards the end of August
2005.

31. In accordance with their coordination role, UNOTIL military advisers
supported several tactical-level meetings between the Border Patrol Unit and its
Indonesian counterpart at various junction points along the border. They also
monitored the conduct of family meetings and, in cooperation with UNOTIL police
advisers, supported direct negotiations between the Border Patrol Unit and the
Indonesian army on the establishment of a new border management mechanism,
which was discussed at the third meeting of the Joint Ministerial Commission, held
in Jakarta on 7 and 8 July (see para. 7 above). At a fourth round of negotiations held
at Motaain on 13 July, the Border Patrol Unit engaged in direct dialogue with the
Indonesian army, reflecting the Unit’s increased competence and confidence.

Programme III

Provision of training in observance of democratic governance and human rights

32. Security Council resolution 1599 (2005) authorizes the deployment of up to 10
human rights officers to provide training in the observance of democratic
governance and human rights. Following a request from the Government, six human
rights officers have been assigned to various State institutions to provide direct
assistance in the areas of human rights and democratic governance, while the
remaining four officers are based at UNOTIL headquarters. The primary objective
of UNOTIL human rights officers is to assist State institutions in the development of
long-term plans for human rights capacity-building, including through the continued
transfer of skills and knowledge to national human rights officers. In this respect,
UNOTIL continued to work closely with UNDP and other relevant United Nations
system actors in Timor-Leste, seeking to maximize the collective impact of various
United Nations initiatives to build human rights capacity at the national, district and
local levels.

33. During the reporting period, the UNOTIL Human Rights Unit focused, in
particular, on building the institutional capacity of the newly established Office of
the Provedor for Human Rights and Justice. In order to maximize exposure to longterm
institutional development assistance beyond the end of the Mission’s mandate,
the Unit facilitated contacts between the Office of the Provedor and various regional
and international human rights networks. In addition, the Unit continued to support
the development of the capacity of the Ministry for Foreign Affairs and Cooperation
to discharge the reporting obligations for the various human rights treaties to which
Timor-Leste is a party, and to assist in the completion of the final report of the
Commission for Reception, Truth and Reconciliation, which is due to be published
towards the end of September 2005.

34. UNOTIL human rights officers also cooperated with the Ministry of the
Interior through the provision of training on human rights and the use of force to the
national police, including the Rapid Intervention and Police Reserve Units. A
“training-of-trainers” course was also implemented, providing 46 police trainers
with in-depth knowledge of human rights, use of force, arrest and detention
practices and interview techniques. In addition, UNOTIL, in collaboration with the
Government and the national police, launched a training manual on human rights
designed for use in the instruction of police officers and new recruits.

35. Finally, the UNOTIL Human Rights Unit continued to review the human rights
situation in the country, to ensure targeted assistance to State institutions and to
contribute to the overall promotion and protection of human rights in Timor-Leste.
The Unit supported the development of non-governmental capacity for human rights
monitoring, providing technical training on the establishment of a human rights
database to five local human rights non-governmental organizations.

B. Role of the United Nations system

36. Despite significant progress towards the achievement of the goals laid out in
the national development plan, Timor-Leste still has the lowest level of human
development in East Asia and the Pacific and remains among the 20 poorest
countries in the world. Moreover, economic growth is expected to be modest in
2005 due to stagnant employment opportunities, a continued downsizing of the
international presence and a decline in bilateral and multilateral assistance. As
potential revenues from oil and gas exploitation remain uncertain, the country will
continue to depend on external assistance to finance its economic, social and human
development and to reduce overall poverty.

37. The World Bank continued to administer the transition support programme, a
multidonor grant-funded programme which contributed some $30 million to the
national budget of Timor-Leste. Since April 2005, the programme has supported,
inter alia, the rehabilitation of 10 market sites, the training of 354 new
entrepreneurs, training programmes in entrepreneurship and financial management,
the establishment of an electronic information centre for agriculture, and the
completion of the national education policy framework. The World Bank also
continued to coordinate a consolidation support programme, a budget support
programme which contributes some $10 million to $15 million to the national
budget. The budget support has primarily served to strengthen the capacity of staff
in the Ministry of Planning and Finance, line ministries and districts, particularly in
the areas of planning and financial management. Increased support by the World
Bank to institutional capacity-building in the finance sector, in close cooperation
with IMF and other development partners, is expected to facilitate the transition
from UNOTIL to a sustainable development assistance framework. In addition, the
Asian Development Bank has introduced a new development grants facility to
finance the rehabilitation of roads, urban water supply and sanitation.

38. UNDP continued to focus on democratic governance. The UNDP Institutional
Capacity Development Support Programme provided support to State institutions,
including the National Parliament, while the UNDP Justice Sector Support Project
focused on the training of judges, prosecutors and public defenders, in coordination
with UNOTIL judicial advisers. On 28 July, Brazil and UNDP launched a programme for the provision of four advisers to the judiciary sector, including one
judge, one prosecutor and two public defenders. At the local level, UNDP and the
United Nations Capital Development Fund helped the Ministry of Internal
Administration to pilot a decentralized government programme, under which seven
local assemblies were established in Bobonaro district to serve as the centre for
local planning and decision-making processes.

39. Together with the United Nations Office for Project Services, UNDP continued
to implement community activation programmes, that help communities to start
small-scale businesses. Moreover, in cooperation with the International Labour
Organization, UNDP began the implementation of the Skills Training for Gainful
Employment Programme. Meanwhile, the United Nations Educational, Scientific
and Cultural Organization and the United Nations Children’s Fund (UNICEF)
supported the national plan for non-formal education, which targets out-of-school
youth and women in rural areas.

40. In anticipation of possible food shortages in the coming months, several
initiatives have been undertaken to ensure effective coordination of food aid. An
inter-ministerial commission on food aid has been established, with the assistance of
international food agencies and donors, to identify the areas that are most likely to
be vulnerable to food shortages. In accordance with a contingency plan to guarantee
food security, the World Food Programme (WFP), in cooperation with the
Government, has begun to put in place strategic food reserves supplied by local
purchase of rice from surplus production areas. WFP and the Government also
began to implement a mother and child health service and school feeding
programmes in areas identified as disadvantaged. Meanwhile, the Food and
Agriculture Organization of the United Nations (FAO), in cooperation with the
Ministry of Agriculture, Forestry and Fisheries and the Secretariat of State for
Labour and Solidarity, launched a project providing agricultural inputs and training
to help some 1,000 ex-combatants to resume their livelihood activities. FAO also
assisted the Ministry of Agriculture, Forestry and Fisheries in the development of an
agricultural statistics system for the collection and analysis of agricultural sector
data.

41. In the health sector, the United Nations Population Fund (UNFPA) supported
the improvement of emergency obstetric care in district hospitals. The World Health
Organization (WHO) continued to assist the Ministry of Health in strengthening the
integration of disease surveillance and prevention and control of communicable
diseases, such as malaria, tuberculosis and leprosy, in all 13 districts, while
UNICEF helped the Ministry of Health to implement systematic outreach activities
to support health services targeting mothers and children. UNICEF also assisted the
Government in complying with its reporting obligations under the Convention on
the Rights of the Child and, as of 21 May 2005, took over a civilian adviser’s post at
the Ministry of Education that was previously funded by UNMISET.

42. The United Nations Development Fund for Women (UNIFEM) provided
training to 795 male and female candidates in the local elections and is developing a
training programme for elected female officials in cooperation with the National
Institute for Public Administration. UNIFEM continued to support the Office for the
Promotion of Equality, including in meeting its reporting obligations under the
Convention on the Elimination of All Forms of Discrimination against Women. The
Office of the United Nations High Commissioner for Refugees (UNHCR) continued to encourage the development of national law and regulations for the protection of
refugees and to support the enhancement of capacity of the Asylum Unit within the
Department of Immigration.

IV. Financial aspects

43. The initial operation of UNOTIL for the period from 21 May to 30 September
2005 is being funded under the provisions of General Assembly resolution 58/273,
on unforeseen and extraordinary expenses, and by using the savings achieved under
other special political missions’ budgets. A separate report presenting a full budget
of UNOTIL for the period up to December 2005 is under preparation and will be
submitted to the General Assembly at the beginning of its sixtieth session. Similarly,
requirements for UNOTIL for 2006 will be included in a consolidated report of the
Secretary-General on estimates in respect of special political missions, good offices
and other political initiatives authorized by the General Assembly and/or the
Security Council, to be submitted to the General Assembly at its sixtieth session.

V. Observations

44. Since its establishment, UNOTIL has continued the efforts made by UNMISET
over the past three years to strengthen the capacity of the Timorese State institutions
and security forces. In this respect, UNOTIL has focused on the transfer of skills
and knowledge to further enhance the capacity of the Timorese public
administration and national police to deliver the necessary services in accordance
with established principles of democratic governance and human rights. Special
emphasis has been placed on the coordination of international assistance through the
consultative group, which brings together a wide range of stakeholders, and through
weekly policy review and coordination meetings, in order to ensure a smooth and
rapid transition to a sustainable development assistance framework by the end of the
UNOTIL mandate on 20 May 2006.

45. During the reporting period, Timor-Leste has made further advances towards
the threshold of self-sufficiency. Progress has also been made in strengthening the
country’s legal and institutional framework — including the adoption of a number
of key pieces of legislation — which is expected to enhance democratic governance,
promote respect for the rule of law and facilitate economic activities. As a result of
these positive developments, the reduction in the number of United Nations civilian
advisers which accompanied the transition from UNMISET to UNOTIL has not had
a negative impact on the Timorese public administration and has been largely offset
by a review of the advisers’ competencies and distribution across the various State
institutions, in an effort to respond more effectively to priority needs.

46. The 45 advisers who have been retained continue to provide key assistance to
the further development of the Timorese finance sector, where lack of transparency
and accountability could threaten the country’s long-term economic and social
development. Even more essential is the support which UNOTIL and UNDP
continue to provide to the Timorese judiciary, which is unlikely to become fully
self-sufficient before 2007. Although the support of UNOTIL to the training
programme for national judges, prosecutors and defence lawyers is due to end in
May 2006, additional on-the-job training will need to be provided before the Timorese judicial personnel are able adequately to fulfil their functions without any
international assistance.

47. UNOTIL police training advisers began implementation of an advanced
training programme for the Timorese national police. In this regard, it should be
noted that although the skills and competencies of the Timorese police have been
considerably enhanced, instances of excessive use of force and human rights
violations by police officers, including against members of political opposition
groups, continue to be reported. Training in the observance of democratic
governance and human rights, for members of the Timorese police and other
Government officials, will remain an important priority for the remainder of the
UNOTIL mandate.

48. The overall security situation remained calm, and relations between Timor-
Leste and Indonesia continued to improve. With continued support from the
UNOTIL military training advisers, the Border Patrol Unit has begun to engage in
direct dialogue with its Indonesian counterpart, which bodes well for their future
interaction once the UNOTIL mandate comes to an end. Timor-Leste and Indonesia
have also recognized the importance of concluding a border management agreement
by the end of the year. The UNOTIL military training advisers will continue to
provide both parties with the necessary support to finalize the agreement and
establish a mechanism to facilitate the resolution of border incidents. Despite
consultations with neighbouring countries, UNOTIL has not been able to secure
contingency arrangements to ensure the safety of its personnel. As a result,
UNOTIL would have to rely solely on civilian air assets for the evacuation of its
staff in the event of an emergency.

49. Finally, the end of the UNMISET mandate brought the serious crimes process
to a close. Although the Serious Crimes Unit has made an important contribution to
achieving justice, it was able to investigate fewer than half of the estimated 1,450
murders committed in 1999. In this connection, I would like to appeal to the
Governments of Timor-Leste and Indonesia, and to the international community as a
whole, to ensure that all those responsible for the serious crimes committed in 1999
are held accountable, so as to respond to the desire for justice of all those affected
by the violence.

50. In conclusion, I would like to pay tribute to my Special Representative,
Sukehiro Hasegawa, and to all the men and women of UNOTIL, for their dedicated
efforts to discharge the mandate entrusted to the Mission by the Security Council.

References: S/2005/533