US embassy cable - 04COLOMBO960

UNCLAS SECTION 01 OF 02 COLOMBO 000960 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR SA/INS; DEPARTMENT PASS TO USTR - JROSENBAUM 
AND AWILLS; COMMERCE FOR ARI BENAISSA 
 
E.O. 12958: N/A 
TAGS: ECON, CE, ERTD, USTR, ECONOMICS 
SUBJECT: GSL TRADE MINISTER TO REQUEST FTA DURING DC VISIT 
 
REF: E.O. 12958: N/A 
 
Sensitive but unclassified, please handle accordingly. 
 
1.(SBU) Summary: Ambassador met with Commerce Minister 
Fernandopulle on the eve of the Minister,s departure for the 
UNCTAD conference in Brazil and a visit to Washington. 
Fernandopulle listened intently, but was non-committal, to US 
request to delete references to Doha in the UNCTAD text. 
Regarding meetings in Washington, he urged the US to consider 
Sri Lanka,s request for an FTA and asked the Ambassador to 
request that representatives from the garment industry who 
will accompany the Minister to Washington be allowed to sit 
in on his meetings with USTR and others.  Post believes 
allowing one representative from the garment sector to sit in 
on the meeting with USTR Zoellick, and perhaps a separate 
meeting for the garment delegation with AUSTR Wills, would be 
appropriate and useful for providing perspective for the 
business sector on the US position vis--vis an FTA.  End 
Summary. 
 
2. (SBU)  This cable contains an action request, para 4. 
During a June 8 meeting with the Ambassador, Commerce and 
Consumer Affairs Minister Jeyeraj Fernandopulle was upbeat 
about the UPFA,s prospects for securing a majority in 
Parliament, saying they were close to the 113 seats needed to 
form an absolute majority.  Fernandopulle had also been 
appointed chief whip and was pleased with his selection to 
that post.  When the Ambassador turned the meeting to the 
Minister,s upcoming visits to Brazil and Washington, 
Fernandopulle listened intently as the Ambassador discussed 
US concerns about reopening sensitive Doha Round related 
topics during the UNCTAD meetings in Brazil.  Fernandopulle 
gave no indication of support but promised to take the matter 
under consideration.  Ambassador reviewed arguments related 
to Sri Lanka,s continuing interest in securing a more 
liberal trade environment worldwide.  He said that the 
previous government had cooperated with the U.S. in the WTO, 
not because it was trying to curry favor with the U.S., but 
because it assessed that was the best way to advance Sri 
Lanka's own trading interests, which were not coincident with 
those of the G-20. 
 
3.(SBU)  Fernandopulle indicated that while in Washington he 
would tell USTR Zoellick that Sri Lanka wants to pursue a 
Free Trade Agreement (FTA) with the US.  Ambassador reviewed 
constraints that make beginning negotiations on an FTA this 
year difficult.  Fernandopulle acknowledged US difficulties 
but indicated that for political reasons he needed to be seen 
as doing all he could.  The manufacturing sector in general, 
and the garment sector in particular, viewed the US as 
aligned with the recently defeated UNP Government, and the 
lack of progress on an FTA as US punishment against the new 
UPFA Government. 
 
4. (SBU)  Ambassador assured Fernandopulle that this was 
untrue but reviewed FTA complexities and realities of 
election year politics in the US and other factors, including 
the number of FTA's awaiting congressional approval or being 
negotiated.  In this vein, Fernandopulle said he had invited 
a small delegation of garment manufacturers (note: by far the 
most vocal proponents of an FTA in Sri Lanka) to accompany 
him on his trip to Washington.  In a moment of candor, 
Fernandopulle indicated they had been included in order to 
"see that I am trying to do something on the FTA."  He said 
the Sri Lankan Embassy in Washington had suggested it would 
be difficult to arrange for the visiting delegation to 
accompany him to meetings with USTR, but he hoped the 
Ambassador could make an appeal on his behalf.  Fernandopulle 
is planning to bring several of the major garment 
manufacturer executives during his visit.  Post believes it 
would be in the US interest to allow at least one of them to 
accompany Fernandopulle during his meeting with USTR Zoellick 
and that perhaps a separate meeting with AUSTR Wills for this 
delegation be arranged. 
 
5. (SBU)  Comment: Fernandopulle was far more confident and 
much better briefed than during the Ambassador,s initial 
courtesy call.  While we hope he will take on board Sri 
Lanka,s natural interests in supporting an open trade regime 
and support US positions in the UNCTAD conference, the new 
Government is still feeling its way on certain aspects of 
economic policy.  Fernandopulle is to be accompanied to 
Brazil by Ambassador K.J. Weerasinghe, Sri Lanka,s former 
WTO permrep, who is familiar with and favorably disposed 
toward US positions in the international trade arena.  The 
business representatives Fernandopulle is bringing to 
Washington are well and favorably known to the Embassy, and 
we urge some accommodations be made to include some or all of 
them in meetings wherever possible and appropriate. End 
comment. 
LUNSTEAD