[Congressional Record (Bound Edition), Volume 150 (2004), Part 12]
[Extensions of Remarks]
[Page 16726]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  U.S.-AUSTRALIA FREE TRADE AGREEMENT

                                 ______
                                 

                        HON. DENNIS J. KUCINICH

                                of ohio

                    in the house of representatives

                        Wednesday, July 14, 2004

  Mr. KUCINICH. Mr. Speaker, I rise today in opposition to H.R. 4759, 
the United States-Australia Free Trade Agreement, and I wish to draw 
members' attention to Australia's unauthorized oil drilling for 
resources in the Timor Sea, at the expense of the world's poorest and 
newest nation, East Timor.
  East Timor gained independence in 1999, and since then, has received 
a great amount of aid from the international community. Australia has 
been one of the more generous nations. East Timor is still one of the 
most impoverished nations in Asia however, and despite its modest 
government budget, it will accrue an estimated deficit of US $126.3 by 
2007. This deficit cannot be good for East Timor.
  Close off the coast of East Timor lies many rich oil and gas fields. 
But East Timor does not stand to profit. Instead, Australia claims 
sovereignty over the fields and is only half-heartedly negotiating with 
East Timor to arrive at an equitable sharing of the oil. In 2007, East 
Timor is expected to start collecting a small amount of revenue from 
just some of rich oil and natural gas resources that exist in the Timor 
Sea, just off the coast of East Timor. East Timor's rightful claim is 
protected by international law, the 1982 UN Convention of the Law of 
the Sea, which specifically says that the maritime boundary between two 
countries exists halfway between the countries. Despite this law, 
Australia has laid claim to the resources, citing an illegitimate 
treaty with Indonesia from 1972 that delimited Australia's maritime 
boundary as the continental shelf line, which exists much closer to 
East Timor than Australia. At the time the treaty was signed, East 
Timor was occupied by Indonesia. East Timor gained independence in 1999 
thereby invalidating the treaty between Indonesia and Australia.
  Between 1999 and 2002, Australia made $638 million from the 
Laminaria-Corallina oil fields, even though these fields are twice as 
close to East Timor than Australia. By 2007, Australia is expected to 
make $1.266 billion from these fields.
  The Laminaria-Corallina oil fields are just some of the many rich 
resources that exist in the Timor Sea. The Greater Sunrise fields, 
located 150 km south of East Timor, and 400 km north of Australia, 
although not yet tapped, are expected to bring in over $30 billion. 
Certainly East Timor's economic future could improve considerably with 
these resources included in its territory.
  Australia has proposed a Joint Petroleum Development Area, an area 
covering 40 percent of the energy fields in the Timor Sea, and 
specifically the Bayu-Undan field. In this Area, East Timor would 
receive 90 percent of the oil production, estimated by the Australian 
government to be valued at $300 million. The success of this 
production, however, is yet to be determined, as the resources will not 
bring in revenue until 2007. But as for the much richer Greater Sunrise 
field, expected to yield $30 billion, Australia claims the right to 
over 80 percent.
  Australia claims to be negotiating with East Timor about their much 
needed maritime boundary in ``good faith.'' Yet it took over a year of 
pleading by the East Timorese government in order for the Australian 
government to finally concede to the negotiation process, and they only 
conceded to meet twice per year. East Timor has requested that the 
maritime boundary be determined within 3-5 years, a reasonable amount 
of time for settling this type of dispute, yet Australia has refused, 
claiming this dispute is much too complicated for a time limit to be 
set. In the meantime, Australia only benefits from time passing, as it 
continues to drill in the Laminaria-Corallina oil fields and has taken 
initial steps to guarantee drilling in the Greater Sunrise fields. It 
has been suggested to the Australian government that revenue from the 
resources extracted in the disputed area be held in escrow until the 
maritime border is determined between East Timor and Australia. Once 
again, the Australian government has refused, displaying ``bad faith'' 
in the negotiating process.
  Australia is a strong and wealthy country, certainly the stronghold 
of the region. East Timor has very little, and any leverage it may have 
in negotiating with Australia over its rightful claim to the resources 
in the Timor Sea lies completely in its moral claim. I urge my 
colleagues to support the efforts of the world's newest independent 
state.

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