The United Nations Security Council is split over whether Australia or the United Nations should head an expanded peace-keeping force in East Timor - and so are New Zealand and Australia.
Australia at present leads a multinational intervention force, which includes New Zealand troops, to keep peace after violence erupted in May and wants to continue to lead it without having to come under the "blue beret" status that denotes the United Nations being at the helm.
New Zealand wants the United Nations to formally head the peace-keeping operation, but would back Australia to continue to lead a new peace-keeping mission under the UN umbrella.
New Zealand not only places greater weight on the United Nations but the cost of blue beret operation would be the UN's responsibility. The Security Council was to have voted on a new structure at the weekend but has delayed the vote for a week.
Supporting Australia's bid to maintain their "green helmet" status are permanent members the United States and Britain, as well as Japan, a short-term member.
But China, France and Russia reportedly want a United Nations mission.
Malaysia and the Philippines, which also have troops in East Timor, are believed to also want the peacekeepers under the United Nation.
In a debate last week on a report by Secretary-General Kofi Annan, New Zealand's ambassador to the UN, Rosemary Banks, suggested that a proposed 1600-strong police force might be excessive.
Mr Annan's report recommended a UN multinational military force be mandated to back up a larger police force.
Australian Defence Minister Robert Hill proposed that the UN head the police force and lead East Timor in developing institutions but that Australia continue to head the multinational military mission. He said his country would carry the cost.
Australia's Foreign Minister, Alexander Downer, said Australia would not walk away from East Timor if it did not get its way but said keeping it as is would be easier.
"It's an easier way to administer the military component without operating through New York all the time and getting into debates about rules of engagement with the UN," he said on Radio National.
A spokesman for Prime Minister Helen Clark said last night that New Zealand wanted to see a compromise and unanimous agreement.
Reuters reports that Japan is preparing a new draft resolution to be discussed this week.
Timor force
* About 200 NZ troops and 25 police have been in East Timor since violent clashes broke out in May.
* Australia has a 2200-strong force in Timor.
UN split over Australia as leader of Timor operation
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