The Australian government has dropped the prosecution case against lawyer Bernard Collaery.

The previous government charged Collaery with leaking information about the Australian government bugging East Timor government offices.

Australian correspondent Murray Olds told Heather du Plessis-Allan the leaked information was about the carve up of a gas field between East Timor and Australia.

He says a lot of people think it was an embarrassing spell for the Australian government.

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