Australia's Immigration Minister, Chris Bowen, says he does not accept reports East Timor is not in favour of housing a regional processing centre for asylum seekers.
East Timor's Prime Minister, Xanana Gusmao, is reported in The Economist magazine as saying it would be difficult to explain to his poorer citizens, the better services the asylum seekers would be given.
However, Mr Bowen says the Australian Government is not changing its focus from East Timor.
"I've said consistently that this is a controversial proposal in East Timor," he said.
"But we've taken a significant step forward as part of the Bali Process.
"We'll continue those discussions under the framework agreed by ministers in Bali last week."
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