Australia is accused of conducting an operation that targeted East Timor's Cabinet when the two countries were negotiating a gas treaty in 2004. After learning about the spying, the East Timor government wants to revoke a deal worth billions of dollars that it signed with Australia, claiming that the latter had illegally obtained intelligence to gain advantage during the negotiations. The petition is now lodged at The Hague.
Things became more heated early this month when the Australia Security Intelligence Office raided the Canberra office of the lawyer who is representing East Timor in the case. Australia said it merely acted to defend its national security but East Timor is now demanding the return of the documents seized in the law office.
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"When you try to listen in to phone conversations of the president of Indonesia, a friendly country, or his own wife, or when you spy on a friendly neighbor like Timor-Leste which Australia helped to free in 1999 and which Australia claimed to be a friend, well it really undermines 10 years of our relationship," Ramos-Horta added, referring to Australia's spying activities in Indonesia which sparked a separate diplomatic row last month.
OOPS ! 
