US embassy cable - 04NEWDELHI7497

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007497 
 
SIPDIS 
 
E.O. 12958: DECL: 11/23/2014 
TAGS: PREL, MASS, PTER, CE, IN, India-SriLanka 
SUBJECT: KUMARATUNGA VISIT: SRI LANKA RELATIONSHIP A 
"MODEL" IN THE NEIGHBORHOOD 
 
REF: COLOMBO 1857 
 
Classified By: PolCouns Geoff Pyatt.  Reasons 1.4 (B,D). 
 
1. (C) Summary: Sri Lanka's President Chandrika Kumaratunga's 
November 3-7 New Delhi visit highlighted that Sri Lanka has 
become a model neighbor for India.  The President's stay 
included an address to a high-level conference during which 
she dismissed the notion that "nothing was happening" in her 
country's peace process.  The MEA announced the long-pending 
Defense Cooperation Agreement (DCA) was ready for signature, 
but did not indicate when that would be signed.  Officially, 
New Delhi has kept its hands off of GOSL-LTTE relations but 
the DCA will reverse that stance, Indian Tamils argue.  In 
attempting to restrict third party use of Sri Lanka's Palaly 
airfield that the GOI has agreed to refurbish, India is 
pursuing its objective of being the dominant South Asian 
power.  End Summary. 
 
2. (SBU) Despite keeping her VIP audience waiting nearly 30 
minutes, Kumaratunga's November 5 speech to the high-powered 
"Hindustan Times" leadership conference was well received by 
the Delhi elite.  Kumaratunga avoided any mention of the 
conflict in her own country, focusing instead on her vision 
for SAARC which she said could unify South Asia into an 
"economic powerhouse."  Following the talk, the President 
dismissed the suggestion that "nothing was happening" in the 
peace process, and instead highlighted recent developments 
that gave her cause for optimism. 
 
Model Relationship 
------------------ 
 
3. (C) The MEA told us that "nothing new" came up during 
Kumaratunga's GOI discussions.  In a November 17 conversation 
with Poloff, Deputy Secretary (Sri Lanka) Anupam Rai called 
India-Sri Lanka "one relationship in the neighborhood that is 
really moving," adding that "politically, we are closer than 
ever."  Rai remarked that "the Sri Lanka relationship could 
serve as a model for our other relationships in the 
neighborhood."  Emphasizing the contrast between Colombo and 
India's other neighbors, he noted that "as opposed to 
building barriers, like Bangladesh and Pakistan, Sri Lankans 
are the only guys who are walking the talk of building strong 
ties."  In a statement after the Kumaratunga visit, the MEA 
also expressed pleasure at "Sri Lanka's endorsement of 
India's candidature for permanent membership of the UNSC." 
 
Defense Agreement 
----------------- 
 
4. (C) Describing the long-awaited India-Sri Lanka Defense 
Cooperation Agreement (DCA) as an "international safety net," 
Rai remarked simply that its purpose was to "institutionalize 
defense cooperation."  Indo-Asian News Service News Editor 
(and Prabhakaran biographer) Narayan Swamy explained that the 
agreement provided the only surprise of Kumaratunga's visit, 
as she was expected to sign it while in New Delhi.  Swamy 
explained that the LTTE opposes such a formalization between 
India and Sri Lanka because it would "redistribute the 
equilibrium between the Tigers and the GOSL."  Freelance 
commentator Maj. Gen. Ashok Mehta (Ret) agreed, noting that 
the LTTE have said such an agreement will go against the 
peace process.  He added that the DCA will be a "deterrent" 
to the LTTE from continuing to pursue a military course. 
 
5. (C) As to the status of the DCA, Sri Lankan High 
Commission First Secretary Saj Mendis (protect) told Poloff 
that the documents are being prepared for signature.  General 
Mehta gave us a different view, observing that the agreement 
still had to be approved by the Indian cabinet, and 
predicting that the process may not go smoothly due to 
resistance from South Indian Tamil parties in the governing 
coalition.  Institute for Conflict Management (ICM) 
researcher Saji Cherian noted recently that the leader of the 
pro-LTTE MDMK party, Vaiko, had met with PM Manmohan Singh to 
"express his disapproval."  Journalist Swamy asserted that 
the LTTE position would not dissuade the GOI from finalizing 
the process. 
 
Hands Off, Eyes Open 
-------------------- 
 
6. (C) The GOI maintains that "any request for Indian 
participation in the peace process would have to be 
considered carefully."  According to the MEA's Rai, 
Kumaratunga described the process as "neither going forward, 
or backward."  The GOI has concluded that the President is 
"serious" about moving ahead, and that India is willing to 
finance rehabilitation projects in Sri Lanka, Rai added. 
 
7. (C) Among India's development projects in Sri Lanka, Swamy 
listed the GOI offer to refurbish the Palaly airstrip 
(reftel), but noted that New Delhi has conditioned its offer 
by requiring that only India and Sri Lanka be allowed to use 
it.  Although the LTTE is concerned that the DCA will bring 
Colombo and New Delhi into a military relationship against 
them, Prabhakaran biographer Swamy insisted that the GOI 
would not contemplate a repeat of its 1987 military 
intervention in Sri Lanka.  In a November 23 essay, General 
Mehta came to the same conclusion, writing that "India is 
still once bitten twice shy."  Nonetheless, the ICM's Cherian 
noted that since September both the head of India's Navy 
Admiral Arun Prakash, and the Chief of Army Staff N.C. Vij 
have traveled to Sri Lanka. 
 
Comment 
------- 
 
8. (C) Sri Lanka has become a "feel good" relationship for 
India and the gushing public embrace Delhi gave Kumaratunga 
stands out among visits from the other neighbors.  The DCA 
demonstrates that India is not entirely content to stand by 
quietly on GOSL-LTTE relations.  The Palaly airfield 
agreement is a GOI attempt to wield even greater influence in 
Colombo.  Undergirding this rapidly thickening 
security/political agenda is a thriving commercial 
relationship that both sides see as beneficial.  As much as 
anything, it is this mutually advantageous economic 
arrangement that distinguishes India's relationship with Sri 
Lanka from its other South Asian ties. 
BLAKE