For East Timor, the second anniversary of independence, on May 20th, was not a happy time. The occasion was overshadowed by a bitter dispute with its rich neighbour, Australia, over access to big oil and gas reserves beneath the Timor Sea that divides the two countries, resources which East Timor says would make the difference between economic self-sufficiency and "begging" for aid to survive. After pressure from East Timor, talks with Australia opened in Dili, the East Timorese capital, on April 19th aimed at establishing a permanent sea boundary, and thus the division of resources worth tens of billions of dollars. The atmosphere was prickly. Alexander Downer, Australia's foreign minister, later accused East Timor of having made "a very big mistake" by "trying to shame Australia, accusing us of [being] bullying and rich and so on, when you consider all we've done for East Timor." Xanana Gusmao, East Timor's president, replies: "We are not shaming Australia. We are only telling the truth."
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