Supporters of Fretilin and Francisco "Lu-Olo" Guterres campaign in Dili during the presidential election in March. Credit:Wayne Lovell Xanana Gusmao, East Timor's independence hero, has for years demanded that the gas be piped to a proposed $1.4 billion industrial complex on the country's remote southern coast, despite a consortium led by Woodside Petroleum saying that this approach was unviable and shelving the project. "I can't guess what the outcome will be. Each side has a position. That is what we will take to the table," Mr Guterres said, referring to negotiations on a new sea border by a September deadline. The comments are the most positive yet by an East Timorese leader on the stand-off, which has stirred strong nationalistic sentiments in a country famous for its long struggle for independence. In January, East Timor dropped a spying case against Australia in the international court and issued a joint statement with Canberra pledging to negotiate the sea borders "in good faith".

Supporters of Fretilin, the country's largest political party, on the streets of Dili. Credit:Wayne Lovell Rebecca Strating, an expert on East Timor from Victoria's La Trobe University, told a parliamentary committee last week it is "very possible" East Timor could be the "architect of its own demise" as revenues from its existing oil and gas resources and a sovereign wealth fund are exhausted. "There are elections this year. A change in government or a change in personalities might produce a government that is willing to think a little more laterally or flexibly around the interests in the Timor Sea," Dr Strating said. Xanana Gusmao's support for the candidacy of "Lu-Olo" Guterres could prove critical in Monday's first round of the presidential elections. Credit:AP "But since 2012 it seems to me that this pursuit of independence may actually create a failed state in Timor-Leste [East Timor]," she said.

East Timor, which has failed to diversify its income to manufacturing or agriculture, relies on oil and gas revenues for more than 90 per cent of its $2 billion-a-year budget. "The next five years with new leadership is a critical time because revenue from currently used oil fields is mostly depleted," said Charles Scheiner of Lao Hamutuk, a Dili-based think-tank. Presidential elections will be followed by general elections in July. Mr Guterres, a former guerrilla fighter, said he cannot see any of seven other candidates beating him for the presidency, predicting he will win enough votes to avoid a run-off election in April. Mr Gusmao, the country's behind-the-scenes powerbroker, swung his support behind Mr Guterres and rejected a push for younger leaders to replace former resistance fighters who have dominated the country's politics since independence in 2002.

"Yes, there is some opinion that younger leaders should be elected. But no way," Mr Gusmao told reporters. "We are not a perfect state … it is very early. That is why you have to trust Lu-Olo to keep the country united," he said. Antonio da Conceicao, education minister from the Democratic Party, appears to be Mr Guterres' closest rival, but analysts say his best chance would be in a run-off. Jose Ramos Horta, the country's respected former president, prime minister and Nobel laureate, decided in January not to contest the election, saying it is time for generational renewal. Electioneering in Asia's youngest democracy has been largely violence-free but intense amid persistent poverty and claims of entrenched corruption.

Twenty-six observers have travelled from Australia for the election, the country's first without United Nations support. Damien Kingsbury from Melbourne's Deakin University, who is leading the delegation, said despite some technical issues he expects the voting will proceed without any major hiccups. East Timor has been ruled since 2015 by a power-sharing executive made up of leaders of Mr Gusmao's National Congress for Timorese Reconstruction (CNRT) and Fretilin. The two groups had been bitter rivals for years. Clinton Fernandes, a Timorese expert from the University of New South Wales, said whoever Mr Gusmao endorses will win the elections. "Voters see the cash liquidity flowing through the economy and – crucially – they trust Xanana," Professor Fernandes said.

"He's lost weight and appears to be looking after his health – which to me means he's probably intending to be a player well into his 80s." Professor Fernandes said the person Mr Gusmao endorses for prime minister later in the year will have to have three qualities – connection to the public, ruthlessness and magic. "Xanana is very much an animist and appears to believe his destiny and that of his country are in the hands of the ancestors whose spirits influence the land," he said.</s>With 90 per cent of the ballots counted, Guterres, leader of the Fretilin party, has secured 57 per cent of the vote, according to figures from the Technical Secretariat for Electoral Administration.

His closest rival, Antonio da Conceicao, is in second position with 32 per cent.

"I believe there won't be a second round," Guterres said after early results were counted.

To avoid a second round, a candidate has to win more than 50 per cent of the vote.

The election commission is expected to announce the result on March 23. It will be verified by a court in about a month.

Carlos Saky, an official at the country's Democratic Party, which backs Conceicao, congratulated Guterres on his impending victory.

"Congratulations to Dr Francisco Guterres Lu-Olo, elected president of the RDTL (Democratic Republic of East Timor) for the period 2017-2022," he said in a Facebook post.

The central concern among East Timor's 1.2 million people has been a failure to spread wealth from oil and gas revenues, with unemployment running at around 60 per cent.

Analysts said the challenge for any incoming government would be to wean the predominantly Roman Catholic nation away from reliance on oil money and diversify its sources of income into agriculture and manufacturing.

The energy sector accounted for around 60 per cent of GDP in 2014 and more than 90 per cent of government revenue.

"I will push the government to work hard to make up the lag that we have seen in all other sectors of the economy," Guterres said.

The former Portuguese colony was invaded by neighbouring Indonesia in 1975. A 24-year, often violent, resistance movement achieved East Timor's independence in 2002 and many of its key figures still feature prominently in the running of the country.

The election is the first since UN peacekeepers left East Timor in 2012.</s>East Timor voted for a new president yesterday in an election that will test Asia’s newest and poorest nation.

Francisco “Lu Olo” Guterres, a former guerrilla leader from the leftist Fretilin party, was up against seven other candidates. He and the Democratic Party’s Antonio da Conceicao, the minister of education and social affairs, were the front-

 runners.

While East Timor’s president has a mostly ceremonial role, the prime minister heads the government.

Guterres, 62, lost to current President Taur Matan Ruak in the 2012 presidential election. But in this election, he had strong support from former Prime Minister Xanana Gusmao, a resistance leader who remains influential in politics.

“I am confident that I will win in this election in one round,” he told reporters in the capital, Dili, after casting his vote. “But I’ll accept whatever the result.”

Ruak was not up for re-

 election and is expected to make a run for prime minister in July’s parliamentary elections.

“We have voted based on our own choice,” Ruak said. “I am grateful to all people for a peaceful election. This will result in greatness for our people and the nation.”

East Timor voted overwhelmingly in 1999 to end 24 years of brutal Indonesian occupation that left more than 170,000 people dead.

Its transition to democracy has been rocky, with its leaders battling massive poverty, unemployment and corruption as the nation continues to recover from the bloody break for independence more than a decade ago.

More than 740,000 of the country’s 1.1 million people were expected to vote. While an early quick count will give a reliable indication of the election outcome within hours of the polls closing at 3 p.m., official results are not expected until tomorrow. AP</s>DILI, East Timor: East Timor voted for a new president Monday, with a former guerrilla fighter tipped for victory after winning the backing of the two biggest parties, in a new sign of stability for Asia’s youngest nation.

The vote comes at a challenging time for the tiny half-island nation 15 years after gaining independence, with oil reserves running dry and its leaders struggling to reach agreement with Australia in a row over lucrative energy fields.

It is the first presidential election since the departure of United Nations peacekeepers in 2012 but despite fears of violence, there has been only sporadic and low-level unrest in the run-up to the vote.

Francisco Guterres, known by his nom de guerre “Lu-Olo,” is favorite to win the presidency which is largely ceremonial but can have a key role in keeping the peace between the country’s feuding politicians.

He is leader of the second-biggest party, Fretilin, and also received the backing of independence hero Xanana Gusmao and his CNRT party, the country’s largest.

Analysts say the unified candidacy will boost stability in a nation that has been repeatedly rocked by bouts of violence since gaining independence in 2002 following a brutal 24-year Indonesian occupation.

“That is good from the point of view of stability, because competitive politics can raise tensions,” Damien Kingsbury, an East Timor expert from Australia’s Deakin University, told AFP.

Kingsbury said it suggests that the country will continue to be led by a unity government following parliamentary elections later in the year.

But he added that having no viable opposition could raise concerns about the government’s accountability.

Guterres is from a humble family and like many members of East Timor’s political class participated in the bloody struggle against Indonesian occupation. He was Fretilin’s unsuccessful candidate for presidential polls in 2007.

There are eight candidates running in the presidential polls, and whoever wins will preside over a nation with huge challenges.

East Timor remains a deeply poor country and the government has struggled to improve the livelihoods of its 1.1 million people.

As well as diversifying the resource-rich economy away from a reliance on oil, the country’s leaders must agree a new sea border with Australia after tearing up a contentious maritime treaty that cuts through energy fields.

If none of the candidates win more than 50 percent of votes Monday, the election will go to a run-off in April. Polls close at 3:00 pm and preliminary results should be known within a few days.

Many of the candidates are not serious contenders and are more concerned with raising the profile of their parties before the more important parliamentary elections that will decide the government and prime minister.

During the Indonesian occupation of East Timor, around 183,000 people died from fighting, starvation or disease.</s>East Timor is voting for a new president in an election that will test Asia's newest and poorest nation.

Francisco "Lu Olo" Guterres, a former guerrilla leader from the leftist Fretilin party, is up against seven other candidates Monday. He and the Democratic Party's Antonio de Conceicao, the minister of education and social affairs, are the front-runners.

While East Timor's president has a mostly ceremonial role, the prime minister heads the government.

Current President Taur Matan Ruak is not running again and is expected to make a run for prime minister in July's parliamentary elections.

East Timor's transition to democracy has been rocky, and its leaders have battled massive poverty, unemployment and corruption in a country still recovering from a bloody break for independence from Indonesia over a decade ago.</s>DILI, East Timor (AP) — East Timor voted for a new president Monday in an election that will test Asia’s newest and poorest nation.

Francisco “Lu Olo” Guteres, a former guerrilla leader from the leftist Fretilin party, was up against seven other candidates. He and the Democratic Party’s Antonio de Conceicao, the minister of education and social affairs, were the front-runners.

While East Timor’s president has a mostly ceremonial role, the prime minister heads the government.

Guteres, 62, lost to current President Taur Matan Ruak in the 2012 presidential election. But in Monday’s election, he had strong support from former Prime Minister Xanana Gusmao, a resistance leader who remains influential in politics.

Ruak was not up for re-election and is expected to make a run for prime minister in July’s parliamentary elections.

East Timor voted overwhelmingly in 1999 to end 24 years of brutal Indonesian occupation that left more than 170,000 people dead.

Its transition to democracy has been rocky, with its leaders battling massive poverty, unemployment and corruption as the nation continues to recover from the bloody break for independence more than a decade ago.

More than 740,000 of the country’s 1.1 million people were expected to vote Monday. While an early quick count will give a reliable indication of the election outcome within hours of the polls closing at 3 p.m., official results are not expected until Wednesday.</s>DILI: Former East Timorese independence fighter Francisco "Lu Olo" Guterres was on track on Tuesday to win the presidency in one round, based on early vote counting a day after Asia's youngest nation went to the polls.

Guterres, with nearly 60 percent of the vote so far, held a solid lead over his seven rivals in the tiny nation's fourth election since independence from Indonesia in 2002.

The national secretariat for technical and electoral administration had counted just over 30 percent of votes by Tuesday morning. A candidate needs more than 50 percent to win in one round.

"I believe there won't be a second round," Guterres, who is backed by one of East Timor's main political parties Fretilin, said after early results were counted.

The election commission is expected to announce the result on March 23. It will be verified by a court in about a month.

The central concern among East Timor's 1.2 million people has been a failure to spread wealth from oil and gas revenues, with unemployment running at around 60 percent.

Analysts said the challenge for any incoming government would be to wean the predominantly Roman Catholic nation away from reliance on oil money and diversify its sources of income into agriculture and manufacturing.

The energy sector accounted for around 60 percent of GDP in 2014 and more than 90 percent of government revenue.

"I will push the government to work hard to make up the lag that we have seen in all other sectors of the economy," Guterres said.

The former Portuguese colony was invaded by neighbouring Indonesia in 1975. A 24-year, often violent, resistance movement achieved East Timor's independence in 2002 and many of its key figures still feature prominently in the running of the country.

Monday's election is the first since U.N. peacekeepers left the half-island nation in 2012.</s>A former guerrilla fighter has won East Timor's presidential election in just one round, an early count indicated Tuesday, in a sign of growing stability for Asia's youngest nation.

With most ballots counted, Francisco Guterres -- known by his nom de guerre "Lu Olo" -- had received over 57 percent of votes cast in Monday's poll, according to the election commission.

That is comfortably above the 50 percent needed to avoid a run-off.

Guterres's closest rival, Education Minister Antonio de Conceicao, was on 33 percent in a crowded field of eight candidates, election commission chief Alcino Baris told AFP.

If final results confirm Guterres's victory, he will take over the largely ceremonial role at a challenging time for the tiny half-island nation 15 years after it gained independence following Indonesia's brutal occupation.

Key oil reserves are running dry and the government is struggling to resolve a long-running row with Australia over lucrative energy fields.

It will be the first time since 2002 that a presidential election in the country has been decided in just one round, if the final results due in several days confirm Guterres has won.

He was backed by the country's second-biggest party Fretilin, which he leads, as well as by independence hero Xanana Gusmao and his CNRT party, the largest.

"A strong vote in favour of a candidate is positive," Damien Kingsbury, an East Timor expert from Australia's Deakin University who was in the country as an election observer, told AFP.

The vote -- the first presidential election since the departure of United Nations peacekeepers in 2012 -- ran smoothly and there were reports of only low-level and sporadic unrest in the run-up.

While the presidency is largely ceremonial, it can have a key role in keeping the peace between feuding politicians.

Guterres is from a humble family and like many members of East Timor's political class took part in the bloody struggle against Indonesian occupation.

The vote sets the stage for more important parliamentary elections later in the year that will decide the government and the prime minister.

Indonesia moved into East Timor in 1975 after colonial master Portugal withdrew. During the occupation, around 183,000 people died from fighting, starvation or disease.</s>DILI, East Timor (AP) - An unofficial vote count shows a former guerrilla leader has won East Timor's presidency in the first election without U.N. supervision since peacekeepers left in 2012.

The tally announced Tuesday by the country's Election Commission indicated that Francisco "Lu-Olo" Guterres had a commanding lead over the Democratic Party's Antonio da Conceicao, who is minister of education and social affairs.

Official results are not expected until next week, but with 90 percent of the ballots tallied, Lu-Olo, a 62-year-old former guerrilla commander representing Fretilin, the traditional party of resistance to Indonesian rule, had 57 percent. Da Conceicao had 32 percent.

An election worker holds up a ballot during the presidential election's vote counting at a polling station in Dili, East Timor, Monday, March 20, 2017. East Timor voted for a new president Monday in an election that will test Asia's newest and poorest nation. (AP Photo/Kandhi Barnez)

East Timorese voted overwhelmingly in 1999 to end 24 years of brutal Indonesian occupation.</s>An unofficial vote count shows a former guerrilla leader has won East Timor's presidency in the first election without U.N. supervision since peacekeepers left in 2012. The tally announced Tuesday by the country's election office indicated that Francisco "Lu-Olo" Guterres had a commanding lead over the Democratic Party's Antonio da Conceicao, who is minister of education and social affairs.

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Elections are held in East Timor to vote for the nation's 4th President. Francisco Guterres, runner-up in the 2007 and 2012 elections, is expected to win due to the support of Xanana Gusmão.