Because of the constraints on our time, I shall omit several paragraphs of my statement, the full text of which has been distributed to delegations. The President, the Prime Minister and the people of Timor-Leste have conveyed to the people and the Government of the United States our profound sympathy for the people of the Gulf states, in particular the people of the city of New Orleans, who were the victims of Hurricane Katrina. President George W. Bush and Secretary of State Condoleezza Rice have spoken touching words of gratitude in recognition of the outpouring of sympathy from so many nations. We must remember that the United States Administration and the American people were among the first and most generous to respond to the tsunami tragedy that befell the peoples living on the borders of the Indian Ocean on 26 December last year. Only a little more than three years ago, the Secretary-General, Kofi Annan, handed over power to our elected President. Since then, we have made real progress in nation-building, peacebuilding, economic development, national reconciliation and enhancing relations with our neighbours. Timor-Leste has acceded to the seven main international human rights instruments, and my Government is committed to fulfilling its obligations. We were among the first in the world to pioneer a streamlined treaty reporting procedure. We are currently drafting our first reports, and all Government agencies are participating in that exercise. The internal political and security situation, including our porous common land borders, is peaceful and stable. A recent report of the World Bank, commenting on the general situation of peace and stability in my country, stated, “Most countries emerging from conflict ... relapse into violence within five years. Timor-Leste has avoided that fate, maintained peace and political stability, and established security”. As a result of the unexpectedly high prices of oil and gas, Timor-Leste today enjoys a surplus, which has enabled our Government to increase our public expenditure by 30 per cent during the current fiscal year. That increase will benefit mostly the rural population and the poorest. In addition, we are proud to report that 36 per cent of our national budget is allocated to education and health. We have fostered the best possible relationships with our neighbours. At of the end of July, we became the twenty-fifth member of the Regional Forum of the Association of Southeast Asian Nations (ASEAN); our next goal is ASEAN membership. We enjoy special observer status in the Pacific Islands Forum. Without the active involvement of our regional and international friends, the leadership and coordinating role of the United Nations and the engagement of its many agencies, of the Bretton Woods institutions and of the Asian Development Bank, we would not have been able to achieve the impressive progress we have made thus far. With regard to truth and reconciliation, I shall now address the issue of justice. In an effort to uncover the truth about the events of 1999, the Governments of Timor-Leste and Indonesia have established a joint commission on truth and friendship. The commission is mandated to examine serious acts of violence that occurred in the period before, during and after the 30 August 1999 popular consultations sponsored by the United Nations. We are accused in some quarters of being too preoccupied with forging close relations with Indonesia, to the detriment of justice for past abuses, and in doing so of encouraging impunity. To our accusers, we say the following. We are mindful of the need to accord dignity and respect to the victims of past abuses, and we believe that in the pursuit of justice we must be sensitive to the need to establish a balance between comprehensive justice and national reconciliation in order to avoid perpetuating the divisions of the past and risking the exacerbation of existing cleavages in our society. We believe that our first obligation, as a responsible member of the international community, is to build a peaceful, stable, democratic and prosperous country. By consolidating nation-building, internal peace and stability and 26 unshackling our people from poverty, we can contribute to wider peace and stability. If one were to read the aforementioned World Bank report on the developments in my country, one would reach the same upbeat conclusion about the impressive gains that we have attained in only three years. Let me share with members some additional findings: “Timor-Leste, the world’s newest nation, was created out of ashes ... Given that the country started from scratch both physically and institutionally, Timor-Leste has done remarkably well”. We have developed a model Petroleum Fund legal and policy regime, which we took directly to the people and to the National Parliament for approval. We do not want Timor-Leste to fall prey to the developing nations’ so-called resource curse, whereby God-given resources are squandered. The key principle is that only the sustainable income from our petroleum wealth will be available for current expenditure. Commenting on our Petroleum Fund, the World Bank said that Timor-Leste “has adopted a state-of-the-art legal framework for on- and off-shore petroleum production and taxation and a draft savings policy and associated Petroleum Fund Act consistent with the Extractive Industries Transparency Initiative (EITI) ... having embraced transparency principles even before EITI existed ... True to stated principles, the Government has adhered to a provisional savings policy for petroleum revenues ahead of the adoption of the permanent savings policy”. I should now like to touch upon the theme of United Nations reform. As we observe the current news coverage surrounding the oil-for-food scandal, with the United Nations painted as the villain, we are certainly disappointed that the Organization we idealize is tainted by allegations of corruption. In peacekeeping and conflict prevention, we must remember that while the Secretary-General has the responsibility to alert the Security Council to ongoing or potential conflicts that may threaten international peace and security, the ultimate decision to act rests with the Security Council, in particular the five permanent members. The role of the United Nations in the world has not, however, been limited to peacekeeping; it has provided facilities and an environment for informal meetings between parties in conflict, it has mediated hostage situations or border disputes, and it has mobilized resources and coordinated assistance to war-torn countries or to communities affected by natural disasters. While we all agree that our collective Organization has failed at times, those shortcomings and failures should not obscure its virtues and successes. The United Nations can become more effective if regional bodies do their share in addressing the challenges in their respective regions. Much has been said and written about the need for a thorough review of the United Nations system, and much of the debate has been focused on the Security Council, overshadowing all other issues, including the much-needed reform of the General Assembly itself. Reform is also urgent in regard to the existing human rights system. The proliferation of treaty bodies and agenda items results in a morass of duplication, waste, inefficiency and loss of focus. The General Assembly remains the prime organ of the United Nations that brings together all nations, rich and poor, large and small. The endless and repetitive yearly general debate and agenda must be reviewed in order to shorten it and make it more focused. I now turn to the Commission on Human Rights. No country or group has a monopoly on selectivity. We are all good practitioners, focusing our attention on issues that are often remote from our shores or that do not collide with friendships, alliances or interests. Timor-Leste fully endorses the establishment of a Human Rights Council and is prepared to serve in such a body if we are asked to do so. Timor-Leste strongly supports the creation of a Peacebuilding Commission, which will play a critical role in post-conflict situations. The merits are sui generis. In view of our unique and rich experience, Timor-Leste would be pleased to serve on that new body if our friends believe we can be useful there. There is agreement that the Economic and Social Council must be reformed. It seems to duplicate or add little value to its subsidiary bodies. We do not support expanding the Council’s mandate to include managing United Nations post-conflict activities. 27 A permanent member of the Security Council should not limit its peacekeeping contributions to eloquent rhetoric while refraining from providing the troops necessary to back up its words. We are all capable of delivering eloquent speeches with apparent moral force, but we do not all have the same political will, courage or raw power to match our words. Aspiring Security Council members, permanent and non-permanent alike, should be countries with stable and open political systems and with effective credible national leaderships that inspire trust and respect in their respective regions and throughout the world as a whole. My Government holds the view that regional balance remains a sine-qua-non principle as should representation of civilizations. Asia, which contains half of the world’s population, is grossly underrepresented in the United Nations system and will remain so, even with the possible addition of India and Japan. Timor-Leste supports the G-4 initiative, because we believe that the four countries concerned fulfil every reasonable qualifying criterion for permanent membership in the Security Council. Timor-Leste, which has an overwhelmingly Catholic majority population, is proud to have been the first country to draw the attention of this body to the need to insure that the Muslim world be adequately represented in an expanded Security Council. We continue to believe that Indonesia, the world’s largest Muslim country, with the third largest population in our region and the third largest Asian democracy, is uniquely suited for permanent member status. I wish now to touch on an issue that has been very much in the news in the last few months: Japan and its neighbours. Timor-Leste understands the reservations of certain countries that do not wish to see too large a Security Council; we understand the reluctance of some of the current permanent five to abandon or share privileges with new ones. We understand that countries that were invaded and colonized by Japan during the Second World War are not receptive to their former aggressor. Timor-Leste, too, was occupied by Japan during the Second World War. But we also remember how the proud Japanese people were made to pay an extraordinary price for their Second World War sins. Hiroshima stands as the living reminder of that horrible price. Japanese leaders were brought to trial at the International Military Tribunal for the Far East and paid for their crimes. A defeated Japan was effectively occupied and administered by the victorious American Power. This benign occupier charted the course of the new Japan, which today is a world economic Power, a peaceful and vibrant democracy that has made enormous contributions to the well-being of developing countries and the United Nations system. Allow me now to share with the Assembly my Government’s concern on some key international issues — the Middle East, Afghanistan and Iraq. First, we commend Israeli Prime Minister Ariel Sharon for his courage in disengaging from Gaza. We hope that this is only a first step towards the full implementation of the road map leading to the establishment of a democratic Palestinian State. The new Palestinian leaders and people deserve equal praise for their moderation and statesmanship, patience and tolerance. In Iraq and Afghanistan, local extremist elements and foreign mercenaries continue their campaign of terror to reverse the democratic gains made by the people of the two countries. The international community and, in particular, the neighbouring countries, have a special duty to provide all necessary support to the brave peoples of Afghanistan and Iraq in their struggle to consolidate their hard-won freedoms; the neighbouring countries must do more to prevent their territories from being used as springboards for the infiltration of mercenaries and weapons into Afghanistan and Iraq.