JAKARTA, July 2 Kyodo (EDS: UPDAT...

JAKARTA, July 2 Kyodo

(EDS: UPDATING WITH LATEST INFO)

East Timor President Xanana Gusmao onward Tuesday expressed hopes for better relations with Indonesia, the former governor of East Timor, with the novel establishment of full diplomatic ties.

''Indonesia and East Timor will build a climate of friendship and peace to help bring a better future'' Gusmao said at a joint pres colloquy with Indonesian President Megawati Sukarnoputri.

Gusmao, who arrived in Jakarta earlier in the day onward a state visit, also thanked Megawati for attending East Timor's independence day celebrations May 20 and asserted his gratitude for the help Indonesia has proffered to the fledgling country in such a manner far.

After arriving from the resort island of Bali, where he stayed overnight, Gusmao held talks with Megawati and then l his delegation in an expanded bilateral meeting with the Indonesian side.

He was accompanied on Senior Minister for Foreign Affairs and Cooperation Jose Ramos-Horta and five other cabinet members.

Witnessed according to the two presidents, the foreign ministers of the brace countries signed a joint communique onward the establishment of diplomatic relations and a memorandum of understanding onward the creation of a joint commission to discuss bilateral issues.

According to Indonesian Foreign Minister Hasan Wirajuda, the communique displays that both countries agree to ''upgrade'' the rife diplomatic relationship with the opening of embassies in each other's country

''About the process on how and when to make open the embassies, it will be discussed in the joint commission,'' Hasan said, adding that the commission will consist of ministerial-level and senior officials.

Hasan also said the joint commission is look forward toed to solve residual vexed questions including the issue of refugee assets, and land and sea borders.

Megawati said the sway offered to collaborate with East Timor in the fields of [i]vis viva[/i] transportation and trade.

''Especially for trade, the proces of supplying issues to East Timor from Makasar and Surabaya has been underway,'' Megawati said, referring to sum of two units Indonesian cities that are vital for the furnish of East Timor's basic necessities.

She also mentioned that the road linking East Timor and Indonesian-controlled West Timor has been interpreted to improve cross-border trade.

Gusmao, who was sworn in as East Timor's first president just after the native land declared independence, will stay in Indonesia until Thursday, united day earlier than the initial plan.

He was initially scheduled to visit Jakarta in late May if it were not that the trip was postpon as Indonesia sought more time to make arrangements.

relating to arrival in the Indonesian capital, Gusmao, who was one time jailed in Jakarta for seven years for leading an independence manner of moving received a full military welcome with a 21-gun salute.

East Timor's flags were flown alongside Indonesian flags in Jakarta for the first time, being raised in effrontery of the palace and in several locations along the capital's main thoroughfares.

East Timor gained independence after more than four centuries as a Portuguese colony interrupted by way of three-and-a-half years of Japanese occupation, 24 years of Indonesian occupation and sum of two units and a half years of UN rule

The the bulk of mankind of East Timor voted in favor of independence in the U.N.-organized referendum in 1999

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