US embassy cable - 88COLOMBO2367

UNCLAS COLOMBO 02367 
 
LIMITED OFFICIAL USE 
 
E.O. 12356;  N/A 
TAGS:  PREL, PINS, IN, CE 
SUBJECT:  INDIAN PAYOFF TO LTTE REVEALED 
 
REF:  COLOMBO 1755 
 
1.  MAJOR SRI LANKAN PAPERS APRIL 5 HAVE HEADLINED 
A REPORT (FIRST PUBLISHED IN THE APRIL 3 LONDON 
OBSERVER) WHICH QUOTES BOTH INDIAN HIGH COMMISSIONER 
J.N. DIXIT AND AN LTTE SPOKESMAN IN MADRAS THAT 
INDIAN PRIME MINISTER GANDHI AGREED IN LATE JULY TO 
PAY THE LIBERATION TIGERS OF TAMIL EELAM A MONTHLY 
STIPEND TO COMPENSATE FOR LOST TAX REVENUES 
FOLLOWING THE SIGNING OF THE INDO-SRI LANKAN ACCORD. 
THE MONTHLY PAYMENT, REPORTS SAY, WAS TO HAVE BEEN 
FIVE MILLION INDIAN RUPEES (OR NEARLY $400,000). 
AN INDIAN HICOMM OFFICER HAS CONFIRMED THAT SOME 
MONEY WAS GIVEN THE TIGERS IN LATE JULY.  APPARENTLY 
ONLY ONE PAYMENT WAS MADE BEFORE THE LTTE RENEGED 
ON ITS PLEDGE TO PARTICIPATE IN THE INTERIM 
ADMINISTRATIVE COUNCIL IN LATE SEPTEMBER AND THE 
DEAL FELL THROUGH. 
 
2.  AN UNNAMED LTTE SPOKESMAN IN MADRAS IS QUOTED AS 
SAYING THAT THE PAYMENT WAS PART OF A LARGER SECRET 
PACKAGE OF GUARANTEES WHICH GANDHI OFFERED LTTE 
LEADER V. PRABHAKARAN IN JULY TO GET HIM TO AGREE 
TO THE BILATERAL ACCORD.  OTHER PARTS OF THE PACKAGE, 
ACCORDING TO THIS REPORT, INCLUDED: 
- 
-- AN ASSURANCE THAT THE LTTE WOULD FORM A MAJORITY 
-  OF THE INTERIM PROVINCIAL COUNCIL FOR THE NORTH 
-  AND EAST.  (COMMENT:  THE LTTE WAS GIVEN SEVEN 
-  OF THE TWELVE SEATS IN A DEAL WHICH WAS ANNOUNCED 
-  AND FELL THROUGH THE SAME DAY, SEPTEMBER 28, 1987.) 
- 
-- ONE BILLION INDIAN RUPEES FOR REHABILITATION OF THE 
-  JAFFNA PENINSULA WHICH APPARENTLY WAS TO BE 
-  FUNNELED THROUGH AN LTTE-DOMINATED INTERIM 
-  ADMINISTRATIVE COUNCIL (COMMENT:  THIS APPEARS TO 
-  BE IN ADDITION TO THE AID WHICH INDIA PLEDGED 
-  PUBLICLY AT THE DECEMBER CONSORTIUM MEETING IN 
-  PARIS.  AT THAT MEETING, THE GOI OFFERED US $40 
-  MILLION (ABOUT 520 MILLION INDIAN RUPEES) FOR 
-  REHABILITATION WORK IN THE NORTH AND EAST.) 
- 
-- HELP, AFTER AN INTERIM ADMINISTRATIVE COUNCIL 
-  WAS IN PLACE, IN SETTING UP A TAMIL POLICE FORCE. 
- 
3.  EMBASSY COMMENT:  LEFT UNSAID IS ANY INDICATION 
WHETHER THE PACKAGE SUGGESTED ABOVE IS STILL ON THE 
TABLE IN THE GOI-LTTE TALKS WHICH APPARENTLY HAVE BEEN 
GOING ON FOR SOME TIME.  ACCORDING TO JOHN RETTIE, 
THE LOCAL BBC CORRESPONDENT, TALKS BETWEEN THE TIGERS 
AND THE GOI BEGAN IN LATE FEBRUARY IN MADRAS.  THEY 
WERE BROKEN OFF RECENTLY, HE SAID, BUT ARE DUE TO 
BEGIN AGAIN NEXT WEEK.  END COMMENT. 
 
SPAIN