Country’s first ambassador to ASEAN accred- ited 27 June; ASEAN SG Surin Pitsuwan pledged to look for ways to increase cooperation. F-FDTL reportedly dismissed military police officer indicted in May killing in Dili, following internal disciplinary process; 4th dismissal in past 2 months.

3 soldiers convicted then pardoned in May 2006 murder of 8 police officers dismissed from military 27 May following disciplinary proceedings. PM Gusmão 17 May accused UN of interfering in country’s sovereignty after leaked UNMIT document called his leadership a potential threat to independence of parliament, judiciary; UNMIT 20 May said internal presentation does not represent its “official views”. Court 9 May cleared deputy PM Jose Luis Guterres of corruption charges.

During visit to Timor-Leste, Australian Defence Minister Smith 14 Apr said decision on possible withdrawal of Australian troops to be taken after 2012 Timorese elections. Indonesian President Yudhoyono 30 March expressed “unconditional” support for Timor-Leste’s bid to join ASEAN; followed late March visit by PM Gusmao to Indonesia, during which govts took steps to improve bilateral relationship through series of trade and development agreements.

UNMIT 27 March formally handed over all policing responsibilities to Timorese police; UN will continue in supporting role until after 2012 presidential elections. Govt 4 March formally applied to join ASEAN.

UNSC 24 Feb extended mandate of UNMIT peacekeeping mission by 1 year.

Ahead of Feb UNMIT mandate renewal, govt-UNMIT discussion on handover of security to Timor police continued. Govt 4 Jan criticised leaked UNDP report alleging slow govt progress on poverty alleviation, prosecution of war criminals.

PM Gusmão 21 Dec reportedly told high-level meeting of security force leaders that time had come for international forces maintaining security in country to leave.

Dili district court 23 Nov dismissed corruption charges against FM da Costa, accepted those for vice-PM Gutierres. UNTAS, grouping of former militia and pro-integrationist Timorese now in Indonesia, met in Kupang 28 Nov to discuss future leadership and direction; announced end to policy rejecting Timorese independence.

UNMIT 5 Oct reported “significant progress” on human rights in country, including on accountability for those involved in 2006 violence. UN SRSG Ameerah Haq 19 Oct raised concerns about “excessive use of force” by police and President Ramos-Horta’s Aug pardoning of 23 rebels involved in 2008 attack on president, VP.

PM Xanana Gusmão’s coalition govt weakened after deputy PM Mario Carrascalão resigned 8 Sept in response to public comments by PM that he was “stupid” for trying to follow up on report that $3mn was missing from state coffers. UN 24 Sept handed over tenth district to Timorese police control; responsibility for immigration, border patrol and Interpol units handed back 28 Sept.