East Timor's prime minister, Xanana Gusmao, has thanked the Chinese government for funding the construction of the country's new military headquarters.

In Dili this morning China and East Timor signed a contract for China to fund a new $9 million headquarters for Timor's fledgling army.

China has paid for other large buildings in East Timor, including the president's palace, the ministry of foreign affairs and the military residential headquarters.

It is another sign of military cooperation between the two countries.

East Timor recently bought two patrol boats from China for its navy.

Mr Gusmao says his government wants to strengthen bilateral military cooperation with countries that provide support without ties.

He also says it would not be legitimate for other countries to try to stop East Timor accepting military training from China.