East Timor MPs rejected yesterday Julia Gillard's plans for a regional refugee processing centre to be established in their fledgling nation as the Prime Minister strongly indicated an election could be called within days.
The blow from East Timor's Parliament to Ms Gillard's credentials on asylum-seekers came as yet another illegal entry vessel was intercepted in Australian waters on Sunday night, taking to 77 the tally of boats in 2010.
Ms Gillard declined to comment on the Timor development after she emerged from the Sydney launch of Blanche d'Alpuget's book Hawke: The Prime Minister.
But last night, Foreign Minister Stephen Smith said the East Timor Parliament's rejection of the plan was not necessarily a reflection of its Government's view.
Just 34 of the 65 members of East Timor's Parliament voted unanimously on the issue.
''I think it is important not to overinterpret the resolution passed by the East Timor Parliament,'' Mr Smith said.
Earlier, Ms Gillard's address to a think tank sparked fresh speculation that Australians should prepare for an August election.
''In the days to come I will be putting forward more detailed arguments about some of the biggest challenges facing our nation,'' she said in an address to Per Capita in Adelaide.
''I will be explaining the steps I think we need to take and asking for people's consideration of those steps. I will ask for the Australian people's trust to move Australia forward.''
Ms Gillard has a small opening to make the trip to Yarralumla, to see Governor-General Quentin Bryce and set the date for the election.
Ms Bryce leaves the country on Saturday to visit France for a ceremony to recognise Australian and British soldiers killed during the Battle of Fromelles during World War I.
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