The Timorese Prime Minister was in NSW for a day, where he and some of his cabinet met NSW politicians, the Australia East Timor Business Council and members of the Timorese community living here.

Mr Gusmao and his wife Kirsty Sword Gusmao were met by Mr Iemma at Governor Macquarie Tower, where he received a warm welcome from community members dressed in traditional tais.

President Jose Ramos-Horta's mother, Natalina Ramos-Horta, Maria Isabel Moreira and Genova da Costa travelled from Liverpool and Green Valley.

But the president of the Timorese Australian Council, Carlos Pereira, said while the community was happy with the relationship between NSW and East Timor, they were disappointed that a planned community function in Liverpool with Mr Gusmao was cancelled.

"They met with the business community but didn't get the time with the other community,'' he said.

"The community has got a lot of issues to put to [the ministers] but we didn't get the chance.

"Some members of our community feel that they are classified as second-class citizens.''

Mr Pereira said the large Timorese community living around Liverpool, Fairfield, Campbelltown and Penrith wanted to talk about matters of land and property in East Timor, citizenship and the security situation.

Earlier Mr Gusmao had thanked Australia for being loyal friends and "steadfast partners to the people of Timor-Leste''.

"Standing side by side in peacekeeping, contributing to our health, education, human capacity and building our institutions,'' he said.

"And working with us, not only identify our challenges but to help us deliver solutions.''

Mr Iemma said after a memorandum of understanding was signed in February, he used the visit to strengthen bilateral ties.

"My Government is keen to provide assistance and further strengthen the public sector in East Timor and we will do that in conjunction with [the Department of Foreign Affairs and Trade and AusAID,'' he said.

"The [memorandum] will see the NSW Government continue to provide support and assistance for the establishment of the Consulate-General for a period of three years.''

The NSW Government has provided assistance to East Timor through pharmaceutical products and medical aid, teachers being seconded, donations of buses and fire engines and has established an East Timor NSW Government Taskforce.