US embassy cable - 04COLOMBO1082

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 001082 
 
SIPDIS 
 
OFFICIAL INFORMAL 
 
FOR SA/INS 
 
E.O. 12958:  DECL:  06/25/14 
TAGS: AMGT, CE, MV, LTTE - Peace Process 
SUBJECT:  OFFICIAL INFORMAL NUMBER 088 (06/25/04) 
 
 
Classified by DCM James F. Entwistle for reasons 1.5 d and 
g. 
 
Contents: MILK POWDER 
--        DOUBLE TAXATION TREATY 
--        S REFUELING STOP IN MALDIVES 
--        COMMO 
--        KARUNA/MOULANA, ETC. 
--        JAFFNA DEMINING OFFICE ATTACKED 
 
 
MILK POWDER 
----------- 
 
1. (SBU) We noted the Trade Minister's request for 416(b) 
Milk Powder in his discussions with U/S Larson.  FYI, we 
have an outstanding inquiry with the Ministry of Finance on 
whether they want the 500 MT of Milk Powder that USDA has 
allocated for GSL.  We have already received negotiating 
instructions from USDA, but are awaiting word that the GSL 
wants it.  After this discussion, we tend to think they 
will.  (ECON) 
 
DOUBLE TAXATION TREATY 
---------------------- 
 
2. (U) We have sent the language on the exchange of 
instruments for the Double Taxation Treaty to the MFA Legal 
Office.  Once we have their concurrence, we'll wait for the 
special paper and ribbons, which we understand are in the 
mail, and arrange a signing ceremony with due fanfare. 
(ECON) 
 
S REFUELING STOP IN MALDIVES 
---------------------------- 
 
3. (C)  We've been in phone and e-mail contact with S/ES re 
the Secretary's refueling stop in Male' next Thursday 
morning.  The Ambassador gave Maldivian protocol a heads-up 
this morning.  The DATT and acting RSO will do the needful 
re flight/landing clearances and the DS advance agent, 
respectively.  If there is some sort of meeting (we've made 
clear we're not seeking anything), the DCM has flight 
reservations to go over for it.  FYI - our "July 4" rep 
event will be the same day, July 1, at the Ambassador's 
residence.  (DCM) 
 
COMMO 
----- 
 
4. (U)  A reminder that we're down on the classified 
computer front this weekend, so please call if anything 
comes up. (DCM) 
 
KARUNA/MOULANA, ETC. 
-------------------- 
 
5.  (C) With the admission by UNP MP Moulana that he brought 
rebel Tiger leader Karuna to Colombo and transferred him to 
the Army, the accusations and denials among government 
officials have begun.  According to media reports, Managala 
Samaraweera, government spokesman, said on June 24 that the 
government had no knowledge of the Army's involvement with 
Karuna and would conduct an investigation of the matter. 
For weeks, the Army has denied reports that Karuna was in 
their possession and has again denied Samaraweera's June 24 
comments.  In the same June 24 briefing, Samaraweera also 
attacked the Opposition, reportedly claiming that the UNP 
was trying to create fear among Sri Lankans and foreign 
investors.  The UNP leadership has also denied involvement 
in Moulana's actions with Karuna.  There has been no public 
comment yet from President (and Defense Minister) 
Kumaratunga, who only returned from London on the evening of 
June 24.  The Ambassador is scheduled to meet with Defense 
Secretary Herath on Monday, June 28, so we may get another 
 
SIPDIS 
piece of the puzzle then.  (POL) 
 
6. (C)  The Ambassador tried unsuccessfully to raise Ranil 
this morning to discuss Moulana.  He then spoke with Milinda 
Moragoda who said that, to his knowledge, Moulana is still 
in the country and that his first travel priority is to go 
to Mecca.  Moulana has not/not made any contact with us re 
visas or anything else.  Stay tuned for updates on all 
aspects of this saga first thing next week. 
 
JAFFNA DEMINING OFFICE ATTACKED 
------------------------------- 
 
7.  (U) FYI.  On June 24 at 1 am, the Halo Trust (Demining) 
Office in Jaffna was attacked by a group of about 20 black- 
clad, hooded people.  The attackers beat four security 
guards (one is hospitalized), set fire to the office's 
perimeter fence and one vehicle, and smashed the windscreens 
of 19 other vehicles.  Police in Jaffna are investigating 
the incident.  Local media reported that 20 recently 
dismissed employees may have been involved in the attack. 
In a conversation with poloff, HALO Jaffna Project Manager 
Valon Kumnova expressed surprise at the attack and confusion 
about who was responsible.  Kumnova noted that only six 
employees were dismissed and does not think these former 
employees could have orchestrated this attack alone. 
Kumnova does not think the LTTE is responsible for the 
attacks, and noted that there are four to five "thieving" 
gangs operating in Jaffna who seem to act with impunity.  In 
Kumnova's conversations with the LTTE Political Office in 
Jaffna, LTTE representatives expressed dismay and ordered an 
investigation into the incident. (POL) 
 
LUNSTEAD