US embassy cable - 03COLOMBO1778

UNCLAS SECTION 01 OF 02 COLOMBO 001778 
 
SIPDIS 
 
SENSITIVE 
 
FOR SA, SA/INS/D 
PLEASE PASS TO USAID/ANE/AA, GODRON WEST; ANE/ESA, 
BERNADETTE BUNDY, AND ANE/SA, CHARLES UPHAUS. 
 
E.O. 12958:  N/A 
TAGS: EAID, PTER, CE, LTTE - Peace Process 
SUBJECT: USAID STAFF DISCUSS WORKING LEVEL ISSUES WITH LTTE 
IN TRINCOMALEE; USAID COMMODITIES MOVE TO JAFFNA 
 
REF: (A) COLOMBO 01724 (B) STATE 256563 
 
SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY. 
 
SUMMARY 
 
1.   (SBU) Based on recent State Department guidance 
approving operational/working-level discussions on relief 
and development issues with counterpart LTTE representatives 
(Ref B) and a September 18 meeting between the Embassy's 
front office and USAID/Sri Lanka staff, two USAID staff met 
on October 7 with an LTTE representative in Trincomalee to 
introduce the head of the USAID/Office of Transition 
Initiatives (OTI) field office there and give an overview of 
USAID's ongoing activities. Like the earlier meetings, the 
conversation was cordial, largely stayed on topic and 
resulted in a clearer understanding of USAID/OTI's small- 
grants assistance program. On a related matter, USAID/OTI 
transported for the first time project-related supplies 
through LTTE-controlled territory for delivery to 
beneficiaries in Jaffna after making the necessary 
arrangements with LTTE officials (Ref A).  This event, 
juxtaposed with the U.S. redesignation of the LTTE as a 
terrorist organization, received minor press play. 
 
TRINCO MEETING 
 
2.   (SBU) USAID staff had first scheduled a meeting with 
the LTTE in Trincomalee for September 30, one day after the 
meetings with LTTE representatives in Jaffna and Kilinochchi 
to discuss transport of USAID Office of Transition 
Initiatives (OTI) project-related supplies.  That meeting 
never took place, however, as Mr. Thilak, the LTTE's 
Trincomalee District representative, was not there when 
USAID staff called at the scheduled time. He phoned the 
USAID/OTI Trincomalee office later the same afternoon, 
apologizing for his absence and expressing his willingness 
to meet. Unfortunately, the two USAID staff from Colombo, 
including one Tamil-speaking American, were halfway back to 
the capital with other travel planned from there for the 
next day. Tentative plans were made to reschedule a meeting 
for the following week. 
 
3.   (SBU) The meeting was rescheduled for October 7 at the 
USAID/OTI premises in Trincomalee town.  The USAID/Colombo 
Special Projects Officer, a Tamil speaker with several years 
of experience working with other international agencies in 
the North and East of Sri Lanka, initiated the conversation 
by introducing the USAID/OTI Trincomalee Head of Office and 
himself. Although Thilak preferred to speak in Tamil, his 
English was more than adequate. The conversation proceeded 
switching back and forth between both languages. 
 
4.   (SBU) USAID staff made reference to the meetings last 
week with LTTE representatives in Jaffna and Kilinochchi 
regarding the duty-free transport of project-related 
supplies. Thilak claimed to be unaware of these 
conversations, though a comment he made later during the 
discussion suggested otherwise. It was noted that based on 
the positive outcome of those meetings, the first such 
shipment would take place this week with materials to 
benefit fisher families on Karainagar Island and an English 
teacher training program in Jaffna. The purpose of the 
meeting in Trincomalee, it was explained, was to give a 
brief overview of USAID's work as a basis for similar 
discussions regarding operational issues. USAID staff asked 
that in the future Thilak contact the USAID/OTI Head of 
Field Office directly, rather than approaching local staff 
as had happened on one occasion, with any questions related 
to the program or USAID-funded activities. 
 
5.   (SBU) Thilak asked about the geographic areas in which 
USAID was working. USAID staff explained that under current 
USG policy activities can only be implemented in areas 
controlled by the GSL. Thilak appeared well aware of this 
policy and commented that it was "mean" and "unfair" to the 
war-affected civilian population living in areas under LTTE 
control. "When you need a favor, you come to us and ask," 
Thilak said, apparently referring to the previous week's 
meetings in Jaffna and Kilinochchi of which he had earlier 
said he was unaware. "Otherwise you don't want anything to 
do with us." 
 
6.   (SBU) USAID staff emphasized that there is no desire by 
the USG to deny any segment of the civilian population 
needed support or assistance, adding that significant 
numbers of Tamil civilians live in GSL-controlled areas of 
the North and East where USAID is working. Furthermore, 
USAID staff pointed out that the conversations held with the 
LTTE the previous week were intended to eliminate 
bottlenecks preventing the Agency from implementing 
activities directly benefiting the people of Jaffna. 
7.   (SBU) The meeting ended with Thilak agreeing to read a 
program overview, written in Tamil, and return with any 
questions that he might have about USAID/OTI activities in 
Trincomalee. Before he left, he cited about 10 villages -- 
all predominantly or exclusively Tamil -- that he said were 
in particular need of support and assistance due to poverty. 
Notably, all of the villages were in areas under GSL 
control; no villages in areas controlled by the LTTE were 
mentioned. 
 
8.   (SBU) Comment. Despite Thilak's overt disapproval of 
USG policy vis--vis the LTTE, overall the conversation was 
cordial. Thilak at first wanted to debate USG policy, which 
he found hypocritical and biased -- particularly in light of 
the GSL de-proscription of the LTTE. Without much effort, 
however, USAID staff were able to keep the discussion 
focused squarely on development-related issues. His 
conscious decision to cite needy villages in only GSL- 
controlled areas of Trincomalee seems to indicate that the 
message got across. End comment. 
 
TRANSPORT OF SUPPLIES 
 
9.   (SBU) USAID/OTI staff successfully delivered on October 
10 the project-related supplies that the LTTE had on 
September 30 said would not be taxed during transport 
through areas under its control. The materials were for two 
USAID/OTI-funded projects: one assisting fisher families on 
Karainagar Island, the other supporting an English teacher 
training program in Jaffna. The supplies were transported in 
a private lorry escorted by two USAID/OTI local staff 
members in a clearly marked USAID/OTI vehicle with 
diplomatic plates. USAID/OTI staff reported a high level of 
cooperation during the transport and checking process by the 
LTTE, which in accordance to its standard policy for 
materials related to relief and development activities did 
not attempt to levy taxes on the items. 
 
10.  (SBU) Over the long weekend, at least newspapers picked 
up on the fact that USAID had held discussions with the LTTE 
in order to move project commodities to Jaffna without 
paying taxes at the same time the USG had redesignated the 
LTTE as a terrorist organization.  We have had no press 
inquiries on this topic but, if asked, we will confirm that 
the commodities did in fact move as described in the 
article. 
 
LUNSTEAD