The dotted line is the 1972 border negotiated with Indonesia. The black line is the equidistant line between the two nations, which Timor-Leste argues is based on international law.
This is from a letter "leaked" to Wikileaks, from Ramiro V. Paz to Mari Alkatiri.
I'm inclined to think that Timor-Leste has a fair point. But then I am a rabid pinko, so I would say that.
I suppose it's not especially surprising to find Australia bullying small, newly independent nations into maintaining agreements made under colonialism. Even less surprising that Australia supported the Indonesian occupation for as long as they could.
Much more on the issue can be found at http://www.etan.org/issues/tsea.htm and the links there.
It should be noted that no boundary has been agreed between Timor and Australia (nor under the occupation between Indonesia and Australia) just resource sharing agreements, which in the case of Timor and Australia is both an improvement over the Australia- Indonesia agreement (Indonesia wanted the recognition not the oil) and certainly one-sided in favor of Australia.
John / 2:10am / 26 October 2007