ABC News Online

Aust pledges $240m in aid to E Timor

Mr Downer has committed $240 million in aid to East Timor over the next four years.

The package includes more than $70 million for water and sanitation, with the extra funding also going to East Timor's education system.

East Timorese President Jose Ramos-Horta has welcomed the assistance.

"The announcement [Mr Downer] has just made of additional assistance to Timor Leste is extremely generous," he said.

"It is $70 million a year that properly applied, particularly to the benefit of the poorest people in this country in the rural areas, will make a tremendous difference in the lives of the poor."