The East Timorese Government has hit out at the United Nations Development Program over a report which criticises the government for failing to address rising poverty and joblessness.

The draft UNDP report acknowledges that progress has been made since the country gained independence in 2002.

But it is also critical of the high level of unemployment among young people and rising rural poverty, and questions the spending of profits from the Timor Sea oil and gas project.

East Timor's State Secretary for Security,

Stephen Smith will meet with his Indonesian counterpart Marty Natalegawa.

Indonesian officials have expressed concern the proposed processing centre in East Timor could encourage more unauthorised people to enter Indonesia.

They say this is due to the porous nature of the border between Indonesia's West Timor and East Timor.

But Mr Smith has told Australia Network's

The announcement of a possible offshore processing centre for asylum seekers in their country has come as a surprise to most people in East Timor.

There's already concern that it doesn't have the capacity to host such a facility.

Presenter: Sara Everingham

Speaker: Jose Luis Guterres, East Timor's deputy prime minister; Zacarias da Costa, East Timor's foreign minister; Jose Teixeira, Fretilin party spokesman

Listen: Windows Media

SARA EVERINGHAM: East Timor's president

Xanana Gusmao says East Timor will determine its own development strategies and that too often foreign development partners including NGOs and consultants are acting out of self-interest and not helping his country develop.

He has criticised the US for recently putting an embargo on East Timor because Dili's port lacks anti-terrorism security.

Australia also came under fire.

Mr Gusmao said reliable opinions suggest

An aid organisation says a substantial increase in resettlement money to East Timorese displaced by fighting in 2006, is encouraging people to move out of temporary housing.

Fighting three years ago forced more than 150,000 East Timorese from their homes and hundreds of displaced families still live in temporary housing managed by humanitarian organisations.

A 2007 progress report on Internally Displaced Persons(IDP) returns criticised the East Timor government's reintegration strategy citing a lack of housing and security as the main problems.

The UN says the $US200,000 National Adaptation Program aims to foster understanding on how climate changes are affecting people's lives and what can be done to help.

An introductory meeting on the two-year program was held in Dili this week.

It was attended by about 80 people, including representatives of government, donors, international agencies, students and non-government organisations.

East Timor is vulnerable to a range of

Our reporter in Dili, Stephanie March, says during a whistle-stop visit to East Timor Mr Fitzgibbon met with East Timor's prime minister, Xanana Gusmao.

Both leaders agreed the security situation in the country is fragile, and further economic development is required to create lasting peace.

Prime Minister Gusmao said the state agreed international forces should remain throughout 2009, but didn't rule

The government policy is to import rice and sell it for $16 per 32kg bag, regardless of the market price, but much of that rice has not been reaching those who live in rural areas.

Orlando Mota is a resident of Hatabaulico, a remote mountain village six hours drive from the capital Dili.

Speaking through a translator, he told Radio Australia's Stephanie March, there's currently no affordable rice

Jose Ramos-Horta was shot on February 11 during two attacks in Dili in which Prime Minister Xanana Gusmao was also targeted and rebel leader Alfredo Reinado was killed.

Dr Ramos-Horta has been undergoing treatment in Australia's northern city of Darwin and will return to Dili on Thursday.

Stephanie March reports from Dili that the United Nations Police Commissioner, Rudolfo Tor, says two permanent police check points will be set up on the road leading to and from the