|The Agreement was by way of an exchange of notes, on the 10 February 2000, between the Government of Australia and the United Nations Transitional Administration in East Timor (UNTAET) which concerned the continued operation of the Timor Gap Treaty which had been entered into between Australia and the Republic of Indonesia on 11 December 1989.|
The Agreement took effect from 25 October 1999, the day when Indonesia officially withdrew from East Timor and the UNTAET took over, and was to continue until East Timor gained its independence (May 2002). Acting on behalf of East Timor, the UNTAET assumed all rights and obligation exercised by Indonesia under the Timor Gap Treaty for the benefit of the East Timorese. Revenue that would have flowed to Indonesia under the Timor Gap Treaty now flowed to East Timor.
The above Agreement, it was stated, 'will benefit the people of East Timor and will assist UNTAET in carrying out its functions entrusted to it under Security Council resolution 1272 (1999)'. However, the Agreement is stated to be 'without prejudice to the position of the future government of an independent East Timor with regard to the Treaty'.
The Agreement also states clearly that 'in agreeing to continue the arrangements under the terms of the Treaty, the United Nations does not thereby recognise the validity of the "integration" of East Timor into Indonesia.'
Pursuant to the Agreement a Memorandum of Understanding was entered into between the two parties in connection with further arrangements relating to the Timor Gap Treaty.