US embassy cable - 03COLOMBO1602

C O N F I D E N T I A L SECTION 01 OF 03 COLOMBO 001602 
 
SIPDIS 
 
DEPARTMENT FOR SA, SA/INS 
NSC FOR E. MILLARD 
 
E.O. 12958:  DECL:  09-15-13 
TAGS: PREL, PTER, EAID, CE, US, UN, LTTE - Peace Process 
SUBJECT:  The Ambassador reviews the peace process, aid 
and redesignation in initial call on Prime Minister 
 
 
(U) Classified by Ambassador Jeffrey J. Lunstead. 
Reasons 1.5 (b, d). 
 
1.  (C) SUMMARY.  In a September 14 introductory 
meeting, the Ambassador and Prime Minister 
Wickremesinghe agreed that last week's donor roundtable 
on the occasion of Japanese envoy Akashi's visit had 
usefully demonstrated that the donors were holding firm 
to the Tokyo linkage between progress at the peace table 
and the release of reconstruction aid for the North and 
East.  The PM said he has no qualms at all about the 
imminent U.S. redesignation of the LTTE as a terrorist 
organization.  The Ambassador reviewed the FTA process 
and also told the PM that no decision has been taken on 
a November White House meeting.  The PM plans to have 
some "like-minded countries" activities in New York but 
would appreciate more information on U.S. "UN reform" 
perspectives.  The PM encouraged the Ambassador to have 
a close working relationship with President Kumaratunga. 
END SUMMARY. 
 
2.  (C) The Ambassador, accompanied by DCM, paid an 
introductory courtesy call on Sri Lankan Prime Minister 
Ranil Wickremesinghe September 14.  Minister for 
Economic Development Milinda Moragoda and Secretary to 
the PM Bradman Werakoon sat in with the PM. 
 
Akashi, Aid and Redesignation 
----------------------------- 
 
3.  (C) After an initial exchange on latest developments 
at the WTO meeting in Cancun (Moragoda had just gotten 
off the phone with Sri Lankan Ambassador to the U.S. 
Devinda Subasinghe who is in Cancun) in which the PM 
pledged that Sri Lanka would be as helpful as possible 
there, the conversation turned to the September 12 
donor's meeting in Colombo chaired by Japanese special 
envoy Yasushi Akashi.  Wickremesinghe told the 
Ambassador that the U.S. statement at the September 12 
donor roundtable had been "quite useful," especially in 
its reiteration of the U.S. view of the Liberation 
Tigers of Tamil Eelam (LTTE).  The PM commented that, as 
his government takes a "soft approach" to the LTTE as 
part of its peace negotiating strategy, it is helpful 
that that be balanced by "tough statements from the 
outside." 
 
4.  (C) The Ambassador briefed the PM on the timeline 
for U.S. redesignation of the LTTE as a Foreign 
Terrorist Organization (FTO) and reviewed some of the 
ways in which the U.S. might make public the rationale 
for the redesignation and what the LTTE could do to 
perhaps one day get off the list.  Wickremesinghe said 
he "agreed completely" with the U.S. redesignation and 
thought that the idea of a concurrent interview 
explaining the U.S. action was a good one.  The PM said 
the combination of Friday's (September 12) Akashi press 
statement which made clear that reconstruction aid to 
the North and East is tied to progress in the peace 
process (he agreed with the Ambassador that "progress" 
would mean more than just a return to the negotiating 
table) and the U.S. redesignation exercise fit together 
well.  "The LTTE is no longer monolithic," he said.  It 
is necessary, Wickremesinghe said, to encourage those in 
the LTTE who are "inside looking out."  Moragoda 
commented that the international community must stand 
firm on the LTTE since the group is "good at wearing you 
down."  The Ambassador agreed that making concessions in 
the face of LTTE obstructionism on the peace process 
would send absolutely the wrong message.  The most 
useful aspect of Akashi's visit had been the reiteration 
that donors are not backing off and that the Tokyo 
position is holding strong. 
 
5.  (C) On the reconstruction front, Moragoda noted that 
the Janantha Vimukthi Peramuna (JVP) in particular was 
making mileage politically with the erroneous but 
powerful message that there would be no reconstruction 
assistance in the South until the Tigers allowed 
sufficient progress in the peace process to release 
reconstruction aid for the North and East.  The 
Ambassador noted that the Akashi statement had very 
clearly spelled out three keys points:  1) there will be 
no reconstruction assistance in the North and East until 
there is "progress" in the peace process; 2) 
humanitarian assistance in the North and East will 
continue unabated; 3) reconstruction assistance in the 
South will continue to flow unaffected by the peace 
process, and would, in fact, be "intensified."  The 
Ambassador, the PM and Moragoda agreed that the third 
point perhaps needed to be underlined in the domestic 
political arena to rebut the notion that the LTTE is 
holding aid to the South hostage. 
 
Trips and Visits 
---------------- 
 
6.  (C) Asked about his travel plans, Wickremesinghe 
told the Ambassador that his New York UNGA trip is set 
and that he will depart Colombo next weekend.  Moreover, 
he said he understands that President Kumaratunga has 
written to UNSYG Annan to advise that she will attend 
neither the UNGA nor the AIDS Summit (Note:  We've heard 
the same thing elsewhere).  The PM asked where things 
stand on his proposed White House meeting in November. 
The Ambassador briefed the PM on the White House 
scheduling process but noted that the State Department 
would continue to work the issue.  Wickremesinghe noted 
that the problem for him is that the Sri Lankan budget 
is presented in November and the process involves 
certain key dates on which he must be present in 
Parliament.  These dates had not yet been set, pending 
firm dates for Washington, but the first week in 
November would be best for him. (His current plan is to 
present the budget to Parliament on Nov. 12.)  After the 
Ambassador explained that a decision from Washington 
probably was not imminent, Wickremesinghe said he would 
proceed with the budget debate arrangements and then try 
to adjust as needed if dates are received from 
Washington. 
 
FTA/MCA 
------- 
 
7.  (C) Moragoda told the PM and the Ambassador that, 
according to Ambassador Subasinghe, informal discussions 
with U.S. officials on the margins at Cancun about a 
U.S.-Sri Lanka Free Trade Agreement (FTA) were 
encouraging.  The Ambassador reviewed for the PM the FTA 
negotiating process and noted that there is no guarantee 
that talks will start soon.  Nonetheless, the 
preliminary work the GSL has undertaken, such as 
reviewing the Singapore and Chile FTAs, can only help. 
Wickremesinghe said he wanted to spend time on the Hill 
and with the U.S. business community in November talking 
up the benefits of an FTA.  Moragoda asked about the 
Millennium Challenge Account (MCA).  The Ambassador 
explained that the operating framework and the criteria 
were still being developed but noted that, on the face 
of it, Sri Lanka would seem to be a good potential 
candidate.  He told the PM that much of the review work 
the GSL was undertaking as part of the FTA process would 
also be valuable when it came time to show that Sri 
Lanka was serious about MCA qualification, since MCA 
membership would be "performance-driven." 
Wickremesinghe and Moragoda nodded. 
 
Like-Minded Countries 
--------------------- 
 
8.  (C) The Ambassador asked the PM what Sri Lanka plans 
to do during UNGA regarding the Like-Minded Countries 
initiative.  Will a meeting or some other forum be 
convened?  Moragoda said that Ambassador Subasinghe had 
been doing "a fair amount of trawling" with a number of 
countries.  So far, no country has given a "flat no." 
The PM might have a few bilaterals or "small meetings" 
on the subject in New York.  Moragoda noted that the PM 
liked the idea of UN reform as an agenda item for the 
group but that it is not clear what the term means. 
Could the U.S. clarify exactly what reforms it would 
like to see in the United Nations?  The Ambassador said 
we would be glad to and suggested that perhaps the PM 
could meet with IO A/S Holmes in New York on the subject 
and/or IO/DAS Miller could brief Moragoda.  Moragoda 
commented that UN reform and Doha WTO follow-up should 
probably be the first two "like-minded" topics, with WMD 
coming later.  Wickremesinghe told the Ambassador that 
Japanese envoy Akashi had used their meeting last week 
to lobby for Sri Lankan support on a Japanese Security 
Council seat 
 
Both Sides of the Cohabitation Fence 
------------------------------------- 
 
9.  (C) The Ambassador told the PM that he hoped to 
present credentials to President Kumaratunga soon.  He 
advised the PM that, as the U.S. envoy to the entire Sri 
Lankan government, he hoped to have a cordial and 
substantive relationship with the President.  "That's 
good," Wickremesinghe replied.  "The more meetings you 
have with her, the better."  The Ambassador said, at the 
same time, he did not intend to be an envoy between the 
PM and the President.  Wickremesinghe laughed and said 
he understood completely. 
 
10.  (C) COMMENT.  The PM was relaxed for this Sunday 
morning meeting which he had requested.  Both the PM and 
Moragoda were grateful for U.S. efforts on Friday's 
"Tokyo Follow-Up Meeting" and were visibly relieved that 
it had gone well.  The PM has a full and detailed agenda 
for his trip to the U.S., and we strongly recommend a 
meeting to discuss UN issues in the context of the 
proposed Like-Minded Countries initiative.  The 
interpersonal dynamics of the meeting were interesting, 
as the PM and Moragoda played tag team, with one 
suggesting a topic and the other then filling in.  END 
COMMENT. 
 
11.  (U) Minimize considered. 
 
LUNSTEAD