US embassy cable - 04COLOMBO912

C O N F I D E N T I A L COLOMBO 000912 
 
SIPDIS 
 
OFFICIAL INFORMAL 
 
FOR SA/INS 
 
E.O. 12958:  DECL: 06/03/14 
TAGS: AMGT, CE, MV, LTTE - Peace Process 
SUBJECT:  OFFICIAL INFORMAL NUMBER 079 (06/03/04) 
 
Classified by DCM James F. Entwistle for reasons 1.5 (b) 
and (d). 
 
 
CONTENTS:    LTTE Rejects "NERF Lite" 
             Colombo Plan 
 
LTTE Says "No" to NERF 
---------------------- 
 
1. (C) World Bank ResRep Peter Harrold travelled to 
Kilinocchi on June 1 to attempt to obtain LTTE agreement 
to a plan for a development assistance scheme for the 
North and East, a "NERF-Lite" which would have allowed 
donors to commit funds to a World Bank fund. Projects 
would have had approval by both the LTTE and the GSL. 
The plan had essentially been approved by the LTTE in 
January, and had been approved by President Kumaratunga 
recently.  The LTTE this time rejected it out of hand, 
telling Harrold that the GSL's backing away from its 
commitment to discuss the ISGA only at renewed talks 
made them distrust anything the Government promised. The 
answer to development needs, they said, is to establish 
the ISGA. 
 
2. (C) The LTTE has probably rejected this mainly 
because they do not want to share any credit with the 
GSL. Whatever the reason, it makes their constant 
complaints about lack of assistance to the North and 
East ring hollow.  Dutch DCM told Amb today that the 
Dutch are furious at this latest LTTE antic, and will 
probably hold back on anticipated N and E development 
projects. (AMB) 
 
Colombo Plan? 
------------- 
 
3. (U) We wondered if anything was happening on our 
Colombo Plan budget issue. When Christina was here, she 
said that just before she left DC, she had signed a memo 
to IO A/S Holmes on the subject. Has anything come of 
it? (AMB) 
 
 
LUNSTEAD