Jakarta welcomes East Timor president

Jakarta rolled out the red carpet for the former guerrilla

East Timor's President Xanana Gusmao, who spent seven years in an Indonesian prison, has said the two countries would work together towards reconciliation.

The two leaders have plenty to talk about

Mr Gusmao was speaking in the Indonesian capital where he was given a full ceremonial welcome on his first visit since East Timor became independent.

Jakarta laid on an honour guard and 21-gun salute for the former guerrilla leader, who fought an armed rebellion against Indonesia for two decades.

The two sides later signed a communique which established full diplomatic ties between the two nations.

'Warm' discussions

Indonesian President Megawati Sukarnoputri said the two leaders held "very warm and useful discussions".

Mr Gusmao was released from prison in 1999 when East Timor overwhelmingly voted for independence. East Timor became the world's newest country on 20 May.

Mr Gusmao thanked "the readiness of the Indonesian government in helping us as a new nation".

"There were lots of inputs on how to co-operate between the two countries to resolve residual issues."

Reconciliation

The two neighbours have close economic ties, but also have plenty of unresolved questions, including compensation for Indonesian property in East Timor and the return of thousands of East Timorese refugees in Indonesia.

President Gusmao and Megawati agreed to set up a commission to resolve such sticky issues.

East Timor has so far rejected Jakarta's compensation claim saying both sides should wipe the slate clean.

East Timor is the world's newest nation

During the independence vote more than 1,000 East Timorese were killed when pro-Jakarta militias went on the rampage, destroying towns and villages.

Mr Gusmao had been due to make his first trip as president to Indonesia in May but Jakarta postponed the visit due to what it described as a scheduling problem.

The cancellation had sparked speculation by some observers that Jakarta was not yet comfortable with accepting East Timor has an equal. Analysts will be watching this visit closely.

Mr Gusmao was also scheduled on Tuesday to meet top security minister Susilo Bambang Yudhoyono and Foreign Minister Hassan Wirayuda and attend a state banquet.

On Wednesday he will lay a wreath at the "Heroes' Cemetery" and meet the speakers of the two houses of parliament, Amien Rais and Akbar Tandjung.

He will then head for Makassar in Sulawesi province, where he will on Thursday address a seminar on prospects for economic co-operation between eastern Indonesia and East Timor.