US embassy cable - 03COLOMBO1674

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 001674 
 
SIPDIS 
 
DEPARTMENT FOR SA, SA/INS 
 
E.O. 12958:  DECL:  09-26-13 
TAGS: PGOV, PREL, ECON, SOCI, MV, Maldives, ECONOMICS 
SUBJECT:  During visit by U.S. team, southern Maldives 
quiet on political front, focused on development issues 
 
Refs:  Colombo 1665, and previous 
 
(U) Classified by James F. Entwistle, Deputy Chief of 
Mission.  Reasons 1.5 (b, d). 
 
1.  (C) SUMMARY:  A U.S. team visited the southern 
Maldivian island of Gan on September 23.  With roughly a 
fifth of the population of the Maldives, the southern 
region was placid politically, showing little tension in 
the wake of the recent riots that rocked the capital of 
Male'.  In discussions, locals were focused on 
development activities, including upgrading the local 
airport so that it could support international tourism. 
The team also visited a garment factory making goods for 
U.S. companies.  While remote and less affluent than 
Male', the southern region seems poised to take a more 
central role in Maldivian affairs.  END SUMMARY. 
 
2.  (SBU) VISIT TO GAN:  Polchief, poloff and Pol FSN 
visited the southern Maldivian island of Gan on 
September 23.  Gan, the southernmost point in the 
Maldivian chain, is located just south of the Equator, 
about 400 miles due north of Diego Garcia and the Chagos 
Archipelago.  Gan is also the central island in the 
south, a region which has a population of roughly 60,000 
people (just over a fifth of the Maldives' total 
population of 270,000).  The region comprises the atolls 
of Addu (where Gan is located), Gnaviyani, and Northern 
and Southern Huvadhoo.  The islands comprising these 
atolls are some of the largest, in terms of surface 
area, in the Maldives, but still very small (Gan's size 
is only about 2.5 square miles). 
 
3.  (U) The area is quite scenic.  While the Indian 
Ocean pounded the edges of the island's palm-fringed 
shore, the residents conducted their business in modern- 
looking shops along well-kept sandy streets.  Houses 
were constructed of concrete and surrounded by mason 
block walls.  In general, residents of the region seemed 
to be somewhat less well off compared to those living in 
Male', the Maldivian capital.  That said, many homes had 
satellite dishes and, as with the rest of the Maldives, 
there was little overt sign of poverty. 
 
4.  (C) ALL QUIET ON THE POLITICAL FRONT:  The southern 
region was placid politically, showing little tension in 
the wake of the riots that rocked Male' on September 20 
(see Reftels).  Mr. Hamid Yoosuf, the Addu Atoll Chief 
(effectively the local governor), and Mr. Ahmed Zilal, 
the Deputy Atoll Chief and a relative of President 
Gayoom, told the team that there had been no unrest in 
the southern region sparked by what had happened in the 
capital.  Hewing closely to the government's line, both 
officials underscored that they considered the riots to 
have been perpetrated by "drug users" and other 
"criminals," and to have nothing to do with politics or 
anti-President Gayoom sentiment.  In a meeting with the 
U.S. team, none of the local residents present brought 
up the riots, preferring to talk about infrastructure 
projects (see below).  Local residents did predict, 
however, that President Gayoom would come out on top in 
the ongoing Maldivian presidential selection process 
(see Reftels). 
 
5.  (U) DEVELOPING THE SOUTH:  In discussions, locals 
were generally focused on infrastructure improvements. 
One of the major projects currently being implemented 
involves upgrades to the Gan airport so that it can 
support tourism.  The airport, which had been built by 
the British and served as a RAF base until 1976, 
currently has a runway long enough to accommodate large 
jet aircraft.  The airport, however, does not have the 
ability to service big planes, and the government has 
contracted an Irish company to provide protective 
hangars and modern fuel stations, etc.  In addition, the 
government is exploring the possibility of establishing 
a flight school.  The government hopes to use the 
upgraded airport to bring international tourists 
directly to the southern region, thus avoiding Male's 
international airport, which is located far to the 
north.  As part of this strategy, the GoRM has plans to 
develop tourist resorts in the region (there were none 
in the south at this time) to add to the roughly 90 such 
resorts located further to the north.  The major hotel 
chain Shangri-La is planning to open a large resort in 
2004 near Gan I sland. 
 
6.  (U) Another important infrastructure project had 
recently been completed -- and had already become the 
pride of the whole Maldives.  This was Addu Atoll's 
"link" road, by far the longest road in the Maldives. 
Designed to improve communication and facilitate travel 
between Gan and the three other islands it connects, the 
modern ribbon of asphalt was 12 kilometers long and had 
been ceremonially opened up by President Gayoom in July. 
(We understand there have already been several "high 
speed" accidents on the route.) 
 
7.  (SBU) VISIT TO GARMENT FACTORY:  The team also 
visited a garment factory located adjacent to Gan 
airport.  The factory, one of four such facilities 
located in the area, is run by a Sri Lankan company, MAS 
Holdings, and makes products under license to Sara Lee 
Courtaulds, a U.S. company.  Over 2,000 Sri Lankan women 
work at the sprawling factories.  Based on the team's 
brief visit, the working and living conditions appeared 
good.  The team was informed that there were regular 
visits by the U.S. licensor to check on the workers' 
situation.  According to the managers, the factories are 
profitable and the company maintains a very good 
relationship with the Maldivian government.  They added, 
however, that the future of the factory was in doubt and 
the factories might close given the elimination of 
garment quotas in 2005 under the WTO's Multi-Fiber 
Agreement.  The local Maldivian officials the team met 
with were unsure how the GoRM would recoup lost revenue 
if the factories indeed did shut down. 
 
8.  (C) COMMENT:  While remote and less affluent than 
Male', the southern region seems poised to take a more 
central role in Maldivian affairs.  Already, there are a 
fair number of southerners serving in high-level 
government circles in Male'.  Southerners also have a 
reputation as being thrifty and good at business, with 
many now working in the country's tourism sector.  That 
said, since Maldivian independence in 1965, the northern 
atolls where Male' is located have benefited more from 
government largesse than the south.  With the 
infrastructure projects now being implemented by the 
government, however, the south appears set to catch up 
to some extent.  Such spreading out of opportunity to 
other regions is a potentially positive development in 
the Maldives given what many observers consider the top- 
heavy, authoritarian nature of government authority 
emanating from Male'.  END COMMENT. 
 
9.  (U) Minimize considered. 
 
LUNSTEAD