The issue concerns the 2006 Treaty on Certain Maritime Arrangements in the Timor Sea, which equally divides the revenue stream from oil and gas assets found in waters between the two countries.
In correspondence sent to Canberra in late April, East Timor argues the treaty is invalid because Australia engaged in espionage when the agreement was being negotiated in 2004.
In a joint statement today from Foreign Minister Bob Carr and Attorney-General Mark Dreyfus, the government declined to confirm or deny the allegation.
“However, Australia has always conducted itself in a professional manner in diplomatic negotiations and conducted the CMATS treaty negotiations in good faith,” the statement reads.
While Australia considers the treaty active, East Timor has initiated arbitration which, if pursued, will see the matter considered by a tribunal consisting of a representative of each country and an independent third party.East Timor will allege that during mediation in 2004, Australian negotiators became aware of relevant information confidential to its northern neighbour.
The treaty includes a clause enabling either party to request arbitration through diplomatic channels.
Australia is considering its response to East Timor's notification, the statement said.
AAP
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