Update #3 ·

New details emerge in claims of spying on East Timor

The East Timor Government has accused Australia of unconscionable and unacceptable conduct in the mounting storm surrounding an Australian spy agency's bugging of crucial negotiations over a gas treaty in 2004.Prime Minister Xanana Gusmao says raids conducted yesterday by ASIO on a lawyer and a whistleblower working with his government were unworthy of a close friend and neighbour. His blast comes amidst new evidence about a secret espionage operation mounted by Australia to gain an edge in talks on a multibillion-dollar gas deal.7.30 has learned of dramatic evidence to be presented to an international court in The Hague, where the Timorese Government is seeking to tear up the treaty. That material includes testimony describing how a team of spies was dispatched to Dili to secretly record the talks and then used a diplomatic bag to sneak the transcripts back to Australia. 

http://www.abc.net.au/7.30/

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