ANNEX to the agreements signed by Portugal and Indonesia at the United Nations

May 5, 1999

A CONSTITUTIONAL FRAMEWORK FOR A SPECIAL AUTONOMY FOR EAST TIMOR

PART ONE

RESPECTIVE AREAS OF COMPETENCE

Chapter I

The Indonesian (Central) Government

Section A: Foreign Relations

Article 1

The Indonesian Government, hereinafter, referred to as the Central
Government, shall have responsibility for and competence over the
foreign affairs of the Special Autonomous Region of East Timor
(SARET). It shall consult the Government of the SARET for the
purpose of taking into account the views of the Government of the
SARET on issues of particular relevance to the SARET.

Section B : Defence

Article 2

The Central Government shall have responsibility for and competence
over the external defence of the SARET, as part of the territory of
the unitary state of the Republic of Indonesia.

Article 3

For such purpose, the Indonesian armed forces (Tentara Nasional
Indonesia - TNI) shall maintain a military presence in the SARET in
the context of defending and safeguarding the external security of
the SARET.

Article 4

In the event of an external armed attack, or an imminent threat of
such an attack, the Indonesian armed forces (TNI) may be deployed
outside their bases or normal areas of operation in the exercise of
its duty to defend the sovereignty and territorial integrity of the
unitary state of the Republic of Indonesia.

Section C: Economic and Fiscal Policies

Article 5

The SARET shall be a part of the Indonesian monetary and customs
unit subject to those national monetary and fiscal policies, and
laws and regulations of Indonesia which are consistent with this
Agreement.

Article 6

The Central Government will continue its assistance to the
development of the SARET.

Article 7

The Central Government shall have exclusive competence over
national taxation and the Government of the SARET shall have
exclusive competence over local taxation, in conformity with the
existing laws and regulations.

Article 8

Natural resources in the SARET, except those considered to be
strategic or vital under national laws, shall be under the control
of the Government of the SARET. In the exploitation of all natural
resources, the Central Government and the Government of the SARET
may establish cooperative or joint undertakings.

Article 9.

For the purposes of its overall development, the Government of the
SARET may receive foreign assistance which is to be channelled d
through the Central Government.

Article 10

The Government of the SARET can enter into domestic loans to
finance part of its budget with the consent of the Regional Council
of People's Representatives of the SARET.

Section D : Continuity of Indonesian Laws

Article 11

Indonesian laws in force upon the date of the entry into force of
this Agreement that fall within the competence of the Central
Government, as defined in this Chapter, shall remain in force for
the SARET.

Chapter II

The Government of the Special Autonomous Region of East Timor

Article 12

All matters, other than those listed within Chapter I of Part One,
and as provided in other relevant provisions of this Agreement,
shall be within the responsibility and competence of the Government
of the SARET.

Article 13

The powers of the Government of the SARET shall be exercised in
accordance with the provisions of this Agreement, and also in
accordance with the Constitution of the Republic of Indonesia.

Article 14

The Government of the SARET shall not:

a. restrict the rights of workers as recognized by law; and

b. reserve any occupation or public office solely to persons with
East Timorese identity.

Chapter III

Jurisdictions of the Central Government and the Government of the
SARET

Article 15

The Government of the SARET shall have jurisdiction over crimes
committed in the SARET with the exception of those related to
treason and terrorism, narcotics and other international crimes,
over which Indonesian laws and jurisdiction shall prevail.


PART TWO

EAST TIMORESE IDENTITY AND IMMIGRATION

Chapter I

Definition

Article 16

Any person,

a. who was a lawful resident of East Timor prior to or in
December 1975,

b. whose father, mother, grandfather, or grandmother was a lawful
resident of East Timor prior to or in December 1975, or

c. who has permanently resided in East Timor for a period of at
least five years at the time of the entry into force of this
Agreement,

shall be considered to have East Timorese identity, irrespective of
nationality, and have the right to permanent domicile in East
Timor.

Chapter II

Acquisition of Identity and Immigration

Article 17

The Government of the SARET shall have the exclusive right to
establish the rules and procedures under which persons who do not
have East Timorese identity may acquire such identity.

Article 18

The Central Government shall have the power to apply immigration
controls on entry into and departure from the SARET of persons who
are neither citizens of Indonesia nor have East Timorese identity,
pursuant to its authority under Article 1 of this Agreement.

Article 19

The SARET shall have the authority to issue documents to
individuals in order to identify those who have East Timorese
identity.

Chapter III

Symbols of Identity

Article 20

The SARET may adopt its own coat of arms. The Indonesian national
flag and Indonesian national anthem "Indonesia Raya" shall be flown
and performed at such places and occasions as required by the
existing laws and practices.

Article 21

The SARET may participate under its own name, with the concurrence
of the Central Government, in international cultural and sports
events in which other non-state entities participate.



PART THREE

POWERS AND INSTITUTIONS OF THE SARET

Chapter I

Legislative Powers and Institutions of the SARET

Article 22

The legislative power of the SARET shall extend to all matters not
within the jurisdiction of the Central Government, as defined in
Chapter I of Part One. This power shall include, the establishment
of political, economic, and social policies in the SARET; cultural
and educational matters; designation of a second language or
languages in addition to the official language, Bahasa Indonesia;
the establishment of courts of first instance pursuant to Article
40; rules of family law and succession; and public order, including
the creation of an East Timor police force that shall be
responsible for enforcement of all laws and regulations in the
SARET, in accordance with the laws and regulations of the Republic
of Indonesia.

Article 23

The SARET may adopt legislations regulating or restricting the
ownership of property by persons who do not have East Timorese
identity without contravening legitimately acquired rights.

Article 24

The SARET shall have the authority to establish a Land Claims
Commission, whose members shall be selected in accordance with the
manner prescribed for the selection of judges in Article 42, which
shall make recommendations in order to decide on all disputed
claims to title over real property through the court.

Article 25

The Regional Council of People's Representatives of the SARET

1. The legislative power of the SARET shall be vested in and
exercised by the Regional Council of People's Representatives of
the SARET, elected by persons of East Timorese identity as
defined in Part Two, on the basis of universal adult suffrage.
The implementation of elections for the Regional Council of
People's Representatives of the SARET shall be further
determined by the SARET and need not coincide with national
elections.

2. Members of the Regional Council of People's Representatives of
the SARET shall be persons who fulfill the eligibility
requirements for membership. No racial, ethnic, religious,
nationality, or other requirement unrelated to the exercise of
the functions of a member of the Council shall be imposed.

3. Members of the Regional Council of People's Representatives of
the SARET shall be immune from legal action in respect of their
oral or written statements or actions relating to the business
of the Council, or made or taken in their capacity as members of
the Council.

Chapter II

Executive Powers and Institutions of the Government of the SARET

Article 26

The executive power of the Government of the SARET shall be
exercised by a Governor who will be assisted by an Advisory Board
whose members shall be appointed by the Governor upon the
recommendation of the Regional Council of People's Representatives
of the SARET.

Article 27

The Government of the SARET shall have the competence to design,
guide and implement policies and programmes and issue executive
decrees and regulations within the scope of the laws of the SARET.
It shall also be responsible for ensuring that all laws and
regulations applicable in East Timor are faithfully administered
and enforced'

Article 28

The Governor of the SARET shall be elected by a majority of the
members of the Regional Council of People's Representatives of the
SARET and responsible to it. The list of candidates for the post of
Governor of the SARET shall first be consulted with and approved by
the President of the Republic of Indonesia.

Article 29

The Governor-elect shall be formally confirmed to the post by the
President of the Republic of Indonesia and shall be formally
invested before the Regional Council of People's Representatives of
the SARET.

Article 30

The Governor shall designate officials who shall be in charge of
the executive services and other bodies of the SARET.

Article 31

The Government of the SARET shall have responsibility for the
maintenance of public order in East Timor and for the
administration and enforcement of all laws and regulations within
the SARET.

Article 32

There shall be a Police Force of the SARET which shall be organized
in accordance with regional laws.

Article 33

The Police Force of the SARET shall be subject to the authority and
control of the Government of the SARET.

Article 34

Members of the Police Force of the SARET shall be recruited,
without discrimination on racial, ethnic, or religious grounds.

Article 35

The primary functions of the Police Force of the SARET shall be:

a. to preserve internal peace and good order in East Timor; and

b. to maintain and, as necessary, enforce the law in an impartial
and objective manner.

Chapter III

Judicial Powers and Institutions of  the SARET

Article 36

The judicial power of the SARET shall be vested in and exercised by
an independent judiciary.

Article 37

The judiciary of the SARET shall have jurisdiction over all civil,
criminal, administrative, and other matters that fall within the
competence of the SARET.

Article 38

In any civil suit, with the consent of all of the parties to such
suit, the judiciary can apply any customary law applicable between
such parties and recognized as such by the judiciary of the SARET.

Article 39

The judiciary of the SARET shall consist of such Courts of First
Instance as may be established by regulations of the SARET, a Court
of Appeal, a Court of Final Appeal and a Public Prosecutor.

Article 40

Courts of First Instance

1. There shall be Courts of First Instance in the SARET for the
administration of justice. Such courts shall have such original
civil, criminal and administrative jurisdiction as may be
necessary to administer the laws in force in the SARET.

2. The Courts of First Instance shall consist of such judges as may
be required for the proper administration of justice.

Article 41

The Court of Appeal

1. There shall be a Court of Appeal, consisting of a President and
as many other judges as may-be required, which shall have
appellate jurisdiction from judgments of the Courts of First
Instance.

2. The Court of Appeal also shall have original and appellate
jurisdiction over all cases that concern the interpretation of
Indonesian laws applicable to the SARET or the interpretation of
Parts One, Five and Six of this Agreement.

3. The President of the Court of Appeal shall be appointed by the
Chief Justice of the Supreme Court of the Republic of Indonesia,
upon the recommendation of an independent Judicial Commission,
which will be established in accordance with procedures adopted
by the Regional Council of People's Representatives of the
SARET.

Article 42

Judges of the Courts of First Instance and the Court of Appeal
shall be selected by the Judicial Commission.

Article 43

The Judicial Commission also shall be responsible for disciplinary
and other issues related to judicial performance, as specified by
the Regional Council of People's Representatives of the SARET.

Article 44

Court of Final Appeal

1. The court of final appeal of the SARET shall be the Supreme
Court of Indonesia.

2. An appeal shall lie from decisions of the Court of Appeal to the
Supreme Court of Indonesia which is the right of the disputing
parties:

a. in all cases concerning laws and regulations of Indonesia
applicable in East Timor;

b. in all cases concerning the interpretation of this Agreement,
provided that the Supreme Court shall establish a special
chamber to hear such cases composed of an odd number of judges
drawn from the Supreme Court of Indonesia and ad hoc judges
drawn from the East Timor Court of Appeal of the SARET.

3. An appeal shall lie from decisions of the Court of Appeal to the
Supreme Court of Indonesia with the leave of the Court of
Appeal:

a. in all cases concerning the interpretation of the regional
laws and regulations of East Timor;

b. on questions of law arising in criminal and civil cases.

Article 45

The Public Prosecutor shall be appointed, discharged and shall have
such duties, as provided for by the regional laws and regulations
of the SARET.



PART FOUR

PROMOTION AND PROTECTION OF HUMAN RIGHTS AND FUNDAMENTAL FREEDOMS

Article 46

The Central Government and the Government of the SARET shall
promote, protect and respect human rights and fundamental freedoms
without discrimination of any kind, as set forth, inter alia, in
the Universal Declaration of Human Rights, the 1993 Vienna
Declaration on Human Rights and the Decree of The People's
Consultative Assembly No. XVII/MPR/1998 Concerning Human Rights.
These rights and fundamental freedoms include:

a. freedom of thought, conscience, and religion;

b. the right to life, liberty, and security of person;

c. freedom from torture, violence, arbitrary arrest, detention, or
exile;

d. the right to a full and fair hearing by an independent and
impartial tribunal in the determination of any civil rights or
obligations or any criminal charge;

e. freedom of expression in all its forms, association, and
peaceful assembly; .

f. the right to form political parties specific to East Timor
without restrictions of any kind and subject to the provision of
Article 57;

g. the right to participate in government without discrimination,
through free periodic elections and non-discriminatory access to
public service, subject to the provisions of Article 25;

h. the right to participate in Indonesian national political life,
including the right to vote in general elections and to be
elected as a member of the Indonesian national Parliament or be
appointed as a member of the People's Consultative Assembly;

i. the right to participate in Indonesian public and administrative
services without discrimination on any grounds;

j. freedom of movement throughout the territory of the Republic of
Indonesia;

k. the of everyone to enjoy and participate in his or he! culture;

l. the right to own property and not to be arbitrarily deprived of
it;

m. the right to protection for family life, privacy, home and
correspondence;

n. the right to education, including, as a minimum, the right to a
free primary education for all;

o. the right to an adequate standard of living, subject to
available resources and capabilities;

p. the right of women to full and equal participation in political,
civil, economic, social, and cultural life;

q. the rights of the child, without discrimination of any kind, as
set forth in the UN Convention on the Rights of the Child.

PART FIVE

RELATIONSHIP BETWEEN THE CENTRAL GOVERNMENT AND THE GOVERNMENT OF
THE SARET

Article 47

The Central Government shall take into account the views of the
Government of the SARET in the adoption of laws, regulations and
policies within the competence of the Central Government that may
have a direct effect in the SARET.

Article 48

In the implementation of those laws, regulations or policies of the
Central Government that are applicable in the SARET, as set forth
in Chapter I of Part One, the Government of the SARET shall
coordinate, with the relevant offices of the Central Government.

Article 49

The Central Government shall appoint a senior official, who shall
reside in Dili, to exercise the competences of the Central
Government in the SARET, and to coordinate and supervise such
Central Government officials in the SARET as may be necessary to
assist the Government of the SARET in the implementation of laws,
regulations and policies within the competence of the Central
Government, as set forth in Chapter I of Part One, and to perform
the functions provided for in Article 50 below.

Article 50

The Central Government and the Government of the SARET may create
bodies or other arrangements to facilitate consultation,
cooperation and coordination on such matters as police matters,
tourism, transportation, telecommunications, education, health and
the environment.

Article 51

In the performance of its duties, the Police Force of the SARET
shall consult and cooperate with the Central Government authorities
with respect to the enforcement of Indonesian national laws in the
SARET.

Article 52

The Police Force of the SARET shall take the necessary action, at
the request of the Indonesian National Police to apprehend persons
in the SARET accused of having committed crimes outside the SARET.

Article 53

The Indonesian National Police shall take the necessary action, in
cooperation with the Police Force of the SARET, to apprehend
persons outside the SARET accused of having committed crimes in the
SARET.

Article 54

In exceptional cases the Indonesian National Police will assist the
Police Force of the SARET in the performance of its functions.

.

PART SIX

RELATIONSHIPS BETWEEN THE SPECIAL AUTONOMOUS REGION OF EAST TIMOR
AND OTHER ENTITIES

Article 55

Without prejudice to the responsibility and competence of the
Central Government, as set forth in Article 1,

a. the Government of the SARET may, with the consent of the
Central Government enter into agreements and engage in social,
cultural, trade, environmental, transportation, scientific,
technical tourism, and sports activities with regional
governments / cities of foreign countries and international
organizations;

a. b the Government of the SARET may seek and obtain
international development assistance with the consent of the
Central Government; and

b. foreign governments may open, with the consent of the Central
Government, non-diplomatic representative offices in the
SARET.

PART SEVEN

THE UNITED NATIONS

Article 56

The United Nations Secretary-General shall have the responsibility
and authority to monitor arid verify compliance with this
Agreement. This authority includes monitoring the election of
members of the Regional Council of People's Representatives of the
SARET and verifying that such elections are free and fair. For this
purpose, the United Nations Secretary-Genera! may establish in the
SARET such offices as he deems necessary which would operate within
a specific time-frame to be further agreed upon between the United
Nations and the Indonesian Government.

PART EIGHT

GENERAL PROVISION

Article 57

The special autonomy for East Timor as provided in this Agreement
is granted within the framework of the Constitution of the Republic
of Indonesia.

PART NINE

BASIC LAW OF THE SARET

Article 58

The SARET shall be governed by a basic law, enacted by the first
elected Regional Council of People's Representatives of the SARET
and which shall be in accordance with the provisions of this
Agreement.

PART TEN

TRANSITIONAL PROVISIONS

Article 59

The following provisions shall be in effect during the time between
the entry into force of this agreement and the election and
assumption of office by the Regional Council of People's
Representatives of the SARET and the Government of the SARET:

a. There shall be a broadly representative Transitional Council,
composed of no more than 25 persons of East Timorese identity,
whose members shall be appointed by the United Nations
Secretary-General in consultation with relevant individuals
and groups within the SARET and . with the Government of
Indonesia.

b. The Transitional Council can enact the regional laws and
regulations for the election of the first Regional Council of
People's Representatives of the SARET and for such subjects as
may be agreed upon by the parties to this Agreement, in
accordance with existing laws, while maintaining the smooth
functioning of the general administration, public services and
public order.

c. The Secretary-General of the United Nations, the Government of
Indonesia and the Transitional Council shall engage in
consultations to ensure the effective implementation of this
Agreement, and the smooth and peaceful process of transition
in the SARET.

d. The Secretary-General of the United Nations, the Government of
Indonesia and the Transitional Council shall establish a
working group that will address transitional security
arrangements.

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