US embassy cable - 02COLOMBO2131

UNCLAS SECTION 01 OF 02 COLOMBO 002131 
 
SIPDIS 
 
FOR EB/CBA DENNIS WINSTEAD 
 
E.O. 12958: N/A 
TAGS: BEXP, BTIO, ETRD, ABUD, CE, MV, ECONOMICS 
SUBJECT: BUSINESS FACILITATION INCENTIVE FUND END 
OF YEAR REPORT 
 
REF: STATE 18409 
 
1. Post is pleased to inform EB/CBA of the 
completion of all activities approved under FY2002 
BFIF funding.  Post will fax copies of receipts as 
requested. 
 
2. Following is the expenditure summary for BFIF 
projects, 2002: 
 
Project 1: American Fair - trade/catalog show 
--------------------------------------------- 
Conference hall & related costs(3 days) $1,025.00 
Promotional expenses $1,743 
Product acquisition charges $100.00 
Shipment & handling charges (Colombo/Male')$720.00 
Transport/handling/clearing/re-shipment charges 
(Male'/Colombo)$1,351.00 
Booth contractors' charges $3,208.00 
Clearing charges (Colombo)$234.00 
Embassy officials travel & per diem: 
Airfare $320.00 
Per diem $2,206.00 
Subtotal $10,907.00 
 
Project 2: Commercial Outreach - India 
-------------------------------------- 
Travel & Per diem: 
Airfare $633.00 
Per diem $937.00 
Subtotal $1,570.00 
 
Project 3: Commercial Outreach - Singapore 
------------------------------------------ 
Travel & Per diem: 
Airfare  $544.00 
Per diem  $958.00 
Subtotal $1,502.00 
 
3. Following are the programmatic reports for BFIF 
projects, 2002: 
 
--Project 1: American Fair Trade/Catalog Show 
Post organized the 4th US trade event in Male, 
capital of the Maldives, from September 30-October 
1, 2002.  For the first time, the show included 
booths staffed by representatives of six US 
companies.  A multi-product catalog show was also 
featured at this event with over seventy American 
companies providing literature in a wide range of 
sectors.  This event was aimed at introducing new 
products and technologies that are particularly 
appropriate to the Maldives' particular needs. 
 
The show was well received by the Maldivian 
business community with around 175 visitors over 
the course of the two-day show (in a city of 
approx. 70,000).  The companies promoting wind 
power generation, solar panels, vinyl piling and 
soil technology generated much interest.  Companies 
selling small generators also received a lot of 
attention.  There was considerable interest in the 
range of food and beverage brands on display, with 
visitors interested in possible commercial tie-ups 
with the US supplier.  The environmental catalogs, 
especially technology on alternate energy, also 
generated much interest among visitors, as did 
educational and construction material catalogs. 
 
An additional forty invitees attended the 
inauguration of the fair.  The chief guest, Dr. 
Ahmed Shaheed, Permanent Secretary of the MFA, 
opened the show with a talk about the importance of 
trade and strong relations with the US.  Other 
invitees included the President and Board of 
Directors of the Maldivian Chamber of Commerce, 
government officials and businessmen.  The 
inauguration ceremony appeared on national 
television. 
 
The promotional strategy included a TV ad, flyers 
in major newspapers, banners and direct mailers. 
 
-- Project 2: Commercial travel to India. 
Econ/Comm Officer traveled October 14-19 to the 
three major Indian commercial cities (Mumbai, Delhi 
and Chennai), holding consultations with U.S. 
firms, local AmChams and FCS counterparts in each. 
The visit led to several initiatives that post is 
now assist U.S. businesses on:  Fuller India, a 
subsidiary of U.S. cement firm Fuller, is looking 
at rehabilitating an aging cement factory in Sri 
Lanka; Honeywell India is planning to enter the Sri 
Lankan specialty chemicals market; and Heinz India 
is studying whether to open a packaging facility in 
Sri Lanka.  In addition, AmCham India committed 
during the visit to lead a delegation to Sri Lanka, 
which will lead to new tie-ups among American firms 
active in South Asia. 
 
--Project 3: Commercial travel to Singapore. 
Econ/Comm Officer met with individual US firms and 
gave group presentations during a three-day 
commercial outreach trip to Singapore, Sept. 15- 
17,2002.  Many US firms based in Singapore have 
responsibility for Sri Lanka and the Maldives. The 
presentation to about 40 members of the Amcham 
Regional Affairs Committee took place on the first 
day of the highly-publicized Sri Lankan peace 
talks, so interest level was high, and there were 
many questions following the PowerPoint 
presentation. Representatives from the Association 
of US States also showed strong interest in the 
current situation and opportunities.  Meetings with 
US firms, including Caltex, Bell Helicopter, Harris 
and Caterpillar focused on these firms' ongoing 
projects in Sri Lanka. Discussions with the FCS 
office at the Embassy generated some new ideas for 
opportunities in commercial promotion and 
cooperation.  The Singapore FCS Office coordinated 
the visit and was instrumental in its success. 
 
4. Post appreciates the strong support it received 
through BFIF in 2002, which resulted in a 
heightened profile for US firms in these growing 
markets.  Planning is already underway for FY2003. 
Wills