US embassy cable - 04COLOMBO2002

C O N F I D E N T I A L SECTION 01 OF 06 COLOMBO 002002 
 
SIPDIS 
 
E.O. 12958:  DECL: 12/15/2014 
TAGS: PTER, EFIN, CVIS, KCRM, PREL, CE, LTTE - Peace Process 
SUBJECT:  TAKING A CLOSER LOOK AT LTTE ACTIVITIES 
IN THE UNITED STATES 
 
 
Classified By:  Ambassador Jeffrey J. Lunstead 
1.4 (b, d) 
 
1.  Summary and Action Request (C):  The 
Liberation Tigers of Tamil Eelam (LTTE) is 
engaging in numerous fundraising activities 
worldwide, from both "legitimate" sources and 
organized crime activities.  As much as $200 
million of funds raised from their organized 
crime and "legitimate" fundraising activities 
around the world is being used to finance illicit 
weapons procurement.  Anecdotal and other 
evidence suggests that the LTTE and related 
organizations may be raising significant amounts 
of money in the U.S.  We recommend a concerted 
USG effort to look into this, a step that would 
quickly catch the LTTE's attention and send a 
message to the Tamil diaspora.  End Summary and 
Action Request. 
 
Turning Up the Heat on the LTTE 
 
2.  (C)  In light of the Liberation Tigers of 
Tamil Eelam's poor human rights record and 
obstructionist approach to the peace process, 
Embassy Colombo has been looking at ways in which 
the U.S. might increase pressure on the LTTE, a 
designated foreign terrorist organization (FTO) 
under the Anti-Terrorism and Effective Death 
Penalty Act since 1997.  To date, the "sticks" we 
have used include frequent public statements 
condemning LTTE behavior and calling on the 
Tigers to recommit to the peace process, as well 
as a standing policy to deny the LTTE legitimacy 
by not meeting with LTTE representatives at the 
political level. 
 
3.  (C)  One obvious area in which the USG could 
do more to increase pressure on the LTTE is by 
taking a hard look at LTTE fundraising (and that 
of related organizations) in the United States. 
To date, Post is unaware of any focused 
interagency effort on this issue.  Such a USG 
effort should, inter alia, focus on the 
activities of the Tamil Relief Organization 
(TRO), an "NGO" closely affiliated with the LTTE, 
which raises extensive amounts of money outside 
of Sri Lanka (as much as $40 million annually 
according to some Embassy contacts).  Indeed, the 
TRO has a U.S. branch which is a registered 
charity, has a website (www.trousa.org) and 
openly raises money in the U.S., purportedly for 
rehabilitation and relief activities.  In 
addition, the USG should also examine the 
activities of the Tamil National Alliance (TNA), 
a political  front party for the LTTE with 22 
seats in Parliament. TNA members have traveled to 
the U.S. in the past to raise money at TRO- 
organized events (there are also unconfirmed 
reports that the TNA plans to open an office in 
Washington).   Even if USG efforts fail to 
uncover substantial amounts of LTTE fundraising 
in the U.S., just the announcement that we were 
taking a closer look would have a significant and 
positive effect here. 
 
How the LTTE Operates Elsewhere 
 
4.  (C)  The LTTE has an impressive money-raising 
network among Tamil diaspora populations around 
the world.  Embassies representing countries with 
substantial Sri Lankan Tamil populations report 
significant LTTE fund raising activities through 
both "legal" means and organized crime 
activities.  Econoff has queried counterpart 
embassies of countries where significant Sri 
Lankan Tamil populations reside regarding the 
LTTE and their legal and illegal fundraising 
activities.  A summary of reported LTTE financial 
activities in some of those countries follows: 
 
United Kingdom 
 
5.  (C)  The U.K. considers the LTTE a foreign 
terrorist organization (FTO) and it is illegal in 
Britain to fundraise for or donate funds to the 
LTTE.  Scotland Yard has concluded in a recent 
report that the LTTE is sponsoring numerous 
organized crime activities in the U.K., including 
extortion and threats against U.K. and Sri Lankan 
resident Tamils. They also engage in financial 
crimes, primarily credit card fraud in LTTE 
owned/financed gas stations and shops.  Some 
Tamil U.K. LTTE sympathizers commit bank fraud by 
borrowing money from British banks and absconding 
back to Sri Lanka with the funds.   The revenues 
from all of these financial criminal activities 
are estimated up to 10 million British pounds per 
year, or more.  The LTTE also engages in human 
smuggling activities, facilitating the illegal 
immigration of thousands of Tamils to the U.K. 
annually.  Once in the U.K., they often file 
asylum claims and receive temporary working 
status, paying a percentage of their income to 
the LTTE.  The British High Commission here 
admits that HMG does little to enforce legal 
restrictions on LTTE activities since the 
resources that would do so are focused on post 
9/11 actors instead. 
 
Canada 
 
6. (C)  There are over 300,000 Sri Lankans, 
mostly Tamils, living in Canada. Many now hold 
Canadian citizenship.  The LTTE is not listed as 
a FTO in Canada.  However, the Tigers qualify as 
a FTO under Canadian terrorism laws, in that its 
members engage in the activities of a terrorist 
organization, but are not listed as an FTO as a 
"carrot" to the LTTE to continue with the peace 
process.  If the government were legally 
challenged, the LTTE would likely be listed as a 
FTO through the courts. The Canadian High 
Commission here believes that if fighting 
resumes, that cabinet level policy will quickly 
change.  Canadians are not permitted to donate 
funds to the LTTE, and the LTTE may not fundraise 
in Canada.   The TRO and TNA are both considered 
a part of the LTTE by Canada and may not 
fundraise legally in Canada. LTTE members, TNA 
politicians (several TNA members of Parliament 
were recently refused visas) and TRO management 
are all ineligible to travel to Canada under 
their terrorism laws. 
 
7.  (C)  The LTTE sponsors a variety of organized 
crime activities in Canada, including human 
trafficking, drug smuggling, extortion and gang 
violence.  In 2003, Canada had a 14% asylum claim 
rate from Sri Lankans legitimately entering 
Canada on visitor visas.  The Toronto Police have 
created a special Tamil Task Force to combat the 
problem.   The Canadians estimate the LTTE raises 
$10 to $20 million annually in Canada.  Former 
LTTE cadre, many claiming refugee status, 
reportedly form the backbone of the organized 
crime operations in both Canada and the U.K. 
 
Australia 
 
8.  (C)  Australia has a Sri Lankan Tamil 
population of approximately 25,000.  Australia 
has the LTTE listed as a FTO.  The TRO is not 
considered a part of the LTTE and legally raises 
approximately $5 million per year in Australia. 
The LTTE regularly engages in extortion of Tamil 
residents by demanding that ten percent of income 
be donated to the LTTE.   Unlike in the U.K. and 
Canada, most Sri Lankans living in Australia are 
professionals with high incomes who legally 
immigrated to Australia. 
 
France 
 
9.  (C)  The LTTE is not considered a FTO in 
France.  However, French internal intelligence 
monitors LTTE activities quite closely.  There 
are approximately 100,000 Sri Lankans in France, 
the majority of whom are Tamil.  Forty percent of 
Sri Lankans in France are either currently 
seeking asylum or are in France illegally. 
Through front operations, the LTTE owns gas 
stations and McDonald's franchises with 
significant profits going to the LTTE.  The LTTE 
is also involved in human trafficking, drug 
smuggling and extortion of wealthy French Tamils. 
There are also reports through the Sri Lankan 
Director General of Military Intelligence of the 
LTTE running a lottery in France generating as 
much as $4-$5 million per month of income.  The 
French Ambassador told us last week that his 
government was organizing a seminar that week to 
discuss ways of cracking down on illegal Tamil 
activities. 
 
Germany 
 
10.  (C)  Germany has approximately 40,000 Sri 
Lankan Tamil residents.  Approximately one third 
are illegally in Germany.  Germany no longer 
accepts Sri Lankan asylum claims.  Germany does 
not consider the LTTE a FTO.  The German embassy 
has no information regarding LTTE fundraising 
operations in Germany. 
 
Norway 
 
11.  (C)  Norway, as the facilitator of the peace 
negotiations, does not list the LTTE as a FTO. 
There are approximately 10,000 Sri Lankan Tamils 
living in Norway.  The LTTE openly fundraises in 
Norway and runs Tamil-speaking schools to raise 
money.  There are no reports of illegal 
activities.  The Norwegians believe their status 
as moderator of the negotiations keeps the LTTE 
from using more aggressive fundraising tactics. 
The Norwegians are unwilling to share LTTE 
fundraising information without permission from 
Oslo. 
 
LTTE Domestic Financing 
 
12.  (C)  LTTE fundraising in Sri Lanka is just 
as impressive as the overseas operation.  Since 
the signing of the ceasefire agreement in 2002, 
the LTTE has levied "taxes" in the areas under 
its control.  The LTTE control of the A9 highway, 
which runs from Colombo north to Jaffna through 
LTTE-controlled areas, is lucrative in this 
regard.  According to the Sri Lankan Director 
General of Military Intelligence (DGMI), the LTTE 
is generating approximately $2 million per year 
from A-9 road taxes.  A more important source of 
funding are the "taxes" paid by businesses in the 
LTTE-controlled areas.  Business "taxes" are 
estimated by the DGMI to be $15 to $18 million 
per year.  Farmers are also "taxed" a percentage 
of their harvests in the North and East. 
Overall, the DGMI believes that the LTTE can 
finance its internal operations and parallel 
"government" from internally generated revenue 
sources, leaving foreign fundraising to pay for 
weapons purchases.  LTTE revenue flows are a 
murky subject, but the best estimate from the 
DGMI of annual intake from domestic "taxes" is 
$25 to $50 million.  The best estimates from the 
DGMI on foreign fundraising is $150-$200 million 
or more. 
LTTE Banking 
13. (C)  Both LTTE-sponsored and GSL-sponsored 
banking infrastructures in LTTE-held areas make 
it relatively easy to move money to LTTE control 
from overseas. In meetings with econoff, Central 
Bank Deputy Governor Ranee Jayamaha described the 
full-service banking operations provided by the 
state-run banks in LTTE controlled areas. 
Nothing prevents LTTE supporters or controlled 
entities (or LTTE leader Prabakharan himself) 
from receiving and withdrawing a foreign 
remittance at the People's Bank or Bank of Ceylon 
branches in Kilinochchi, the LTTE's heartland. 
The LTTE-run  Bank of Tamil Eelam (BTE) has 10 
branches in LTTE controlled areas and provides 
simple banking services.  BTE does not clear 
checks through the Sri Lankan clearing system but 
there could be informal clearing between local 
state-owned bank branches and BTE, Jayamaha 
speculated.  However, according to BTE 
advertising, the bank is able to accept checks 
drawn on foreign banks, in all forms of currency, 
and offers up to eleven percent deposit rates on 
foreign currency accounts. 
 
LTTE Fundraising in the U.S. 
 
14. (C)  Although we do not have detailed 
information on Tamil activities in the U.S., 
anecdotal evidence suggests that fundraising in 
the U.S. by the LTTE and related organizations is 
significant.  When a USAID employee recently met 
with LTTE working-level officials in Kilinochchi 
in an attempt to exempt USAID shipments of goods 
through LTTE territory from LTTE "taxes," LTTE 
officials asked in puzzlement why the U.S. was 
trying to avoid giving money to the LTTE in Sri 
Lanka "when we raise so much money in the 
States."   Moreover, the TRO U.S. website reports 
a recent fundraising event in New Jersey which 
garnered roughly $45,000. 
 
Visas and Passports 
 
15.  (C)  Beyond financial flows, there are other 
key aspects to U.S. Tamil activities.   We know 
for a fact that some U.S. citizen Tamils (and 
presumably some green card holders as well) 
travel back and forth openly to LTTE-held 
territories and that some of them stay for 
periods of time working on relief and 
developments projects, etc. Several American 
citizens are known LTTE sympathizers and recently 
spoke at a Tamil cultural event held in New 
Jersey where the LTTE flag was featured and LTTE 
fundraising activities likely occurred.  Bank 
account information possibly involving one Amcit 
with potentially sending funds to the LTTE was 
recently provided by the DGMI and sent septel. 
 
16.  (C)  A good example of U.S. Tamil activity 
in LTTE areas is Wanni Tech, an information 
technology (IT) training center with state-of ?he-art facilities, 
largely financed by U.S. 
resident Tamils working in the IT sector.  Wanni 
Tech representatives have briefed Econ and USAID, 
seeking (unsuccessfully) U.S. government 
assistance.  They have been advised of 
prohibitions on providing material benefit to the 
LTTE.  They claim they are able to assure only 
legitimate students are enrolled.  The Embassy is 
aware of Wanni Tech because the organizers came 
in to see us; we have to assume there are similar 
U.S.-based or funded activities in LTTE territory 
of which we are not aware because the involved 
U.S. Tamils do not seek us out when they come 
into country. 
 
17.  (C)  The issue of visa issuances ties in 
closely to fundraising in the U.S.   Presumably 
many  TNA officials and other Tamil Sri Lankans 
seeking visas wish to attend TRO or other 
fundraising events in the U.S., even if they do 
not explicitly so state on their applications or 
in their interviews.  For example, Father M.X. 
Karunaratnam, the head of the newly established 
LTTE-linked human rights organization NESOHR, was 
recently in the U.S. and met with the Sri Lanka 
desk officer and with some human rights 
organizations.  A later review of his visa 
application showed no mention of human rights 
activities but cited attendance at a Tamil 
community function as the stated reason for 
travel.  We might well have chosen to issue a 
visa anyway, but knowledge of his plans to attend 
Tamil functions at which funds were raised would 
have been germane to the adjudication process. 
 
Action Request 
 
18. (C)  Post believes that now is an excellent 
time to increase pressure on the LTTE by 
investigating its fundraising activities in the 
U.S. and, where possible, denying access to 
sources of funds there.  Even just a preliminary 
step such as, for example, a request by relevant 
U.S. agencies to TROUSA that it come in to 
discuss its fundraising activities would send a 
clear message to the LTTE and the Tamil diaspora 
regarding our impatience with the Tigers' 
terrorist tactics and lack of commitment to the 
peace process.  TRO might be a legitimate 
charitable organization, which scrupulously 
ensures its funds are not diverted to illegal 
Tiger activities.  It could also be a front for 
funneling funds to the Tigers.  Or, it could be 
somewhere in between, with some money going to 
legitimate relief and some to the Tigers.  The 
point is that we do not know, and we should. 
 
19.  (C)  There also may be value in a USG 
statement urging any U.S. citizens contemplating 
a trip into LTTE-held territory or a contribution 
of time or money to any activity in LTTE-held 
territory to satisfy themselves that they are not 
supporting terrorist activities or be subject to 
possible legal repercussions.  This would send a 
strong public message.  At the same time, we 
intend to pay greater attention to visa 
applications from prominent Tamils who might be 
planning to include fundraising in their U.S. 
itineraries. 
 
20.  (C)  We would appreciate comments and 
feedback from relevant Washington offices and 
agencies on  how best to use greater scrutiny of 
LTTE and related organization activities to 
increase pressure on the LTTE to get back to the 
peace table and to turn off money flows that 
could be financing LTTE weapons purchases or 
terrorist activities. 
 
LUNSTEAD