Australia shrugs off snub of refugee center by East Timor

SYDNEY - Australia said on Tuesday it is still in talks with East Timor over a regional asylum-seeker center, despite a rejection by the country's parliament that dealt the pre-election policy a severe blow.

Prime Minister Julia Gillard said East Timor's government was still discussing the possibility of hosting a center to process Australia's asylum-seekers - a major plank of her election strategy, which has become mired in difficulty.

Australia's first woman leader, who is expected to announce an election within days after ousting the once hugely popular Kevin Rudd last month, was speaking after 34 of East Timor's 66 lawmakers voted against the plan.