East Timorese PM Xanana Gusmao has said he'll consider the federal government's plan to host the offshore processing centre that Julia Gillard is hoping for, despite opposition in his own country.
"We are open-minded and open for discussion in participation to solve the problem," he told reporters.
"This is not only Australia's problem but also the region's problem. So the government cannot avoid this issue," he said, adding that his nation had a responsibility to help.
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"We were refugees in other countries and also in our own country," he said of East Timor, which is still dependent on foreign aid more than a decade after its bloody vote to split from Indonesian rule.
Earlier, Gillard admitted she's yet to speak to Gusmao, instead she has held preliminary talks with President Jose Ramos Horta.
Critics, however, say that as PM, real power in East Timor lies with Gusmao.
As well as Gusmao being cool on the idea, opposition to the plan is widespread in the government and opposition ranks.
Despite Ms Gusmao sounding a more positive note towards the plan, many other East Timorese politicians, including members of the prime minister's own party, are resisting the proposal.
Aderito Hugo da Costa said he did not support the idea, regardless of whether it resulted in a financial windfall for East Timor.
"The issue is how we have time to look at (other countries') problems, rather than look at our own people's problems," Mr da Costa said.
East Timor's main opposition Fretilin party also refused to support the proposal.
"I think Timor should reject the proposal, simply because there is no condition in Timor to do that ... economic and social conditions ... we are one of the poorest countries in the region,"
Fretilin vice-president Arsenio Bano said.
Such comments are in line with the Greens' immigration spokeswoman Sarah Hanson-Young, who today said any such processing centre should be in Australia.
Nontheless, Gusmao's comments may help pour water on his deputy Jose Luis Guterres's statement on Wednesday that East Timor is "very unlikely" to agree to Ms Gillard's plan, announced earlier this week.
Opposition to plan 'expected'
This morning, Immigration Minister Chris Evans said mixed reactions in the Asia-Pacific about an asylum seeker processing centre in East Timor were tobe expected.
He told ABC Radio that East Timor has a strong humanitarian record and is a signatory to UN refugee conventions, but stressed Australia would make a serious contribution to building and running the centre - which he says would create jobs.
Julia Gillard has recently spoken about the issue of boat arrivals withIndonesian President Susilo Bambang Yudhoyono and New Zealand Prime Minister John Key.
But she's come under fire for spruiking policies before being assured ofsupport.
Speaking to ABC TV, Gillard said that she may be prepared to look at building the processing centre in a third country, were East Timor torefuse.
"We are going to have a dialogue across the region about options acrossthe region", she said.
"I think that is in part a question for the discussions."
"I obviously believe it is appropriate to be talking this through withcountries that are signatory to the refugee convention; East Timor is."
