US embassy cable - 03COLOMBO462

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 000462 
 
SIPDIS 
 
DEPARTMENT FOR SA, SA/INS, S/CT; NSC FOR E. MILLARD 
 
LONDON FOR POL/RIEDEL 
 
E.O. 12958:  DECL: 03-18-13 
TAGS: PTER, PINS, PARM, CE, JA, NO, LTTE - Peace Process 
SUBJECT:  Sixth round of GSL-LTTE talks reportedly gets 
off to better-than-expected start 
 
Refs:  (A) Colombo-SA/INS 03-17-03 telecon 
-      (B) Colombo 450, and previous 
 
(U) Classified by Ambassador E. Ashley Wills. 
Reasons: 1.5 (b,d) 
 
1. (C) SUMMARY:  The Tigers used the first day of the 
sixth round of talks in Japan to condemn the March 10 
sinking of one of their resupply ships by the Sri Lankan 
navy.  Milinda Moragoda, a key GSL minister and 
negotiator, called the Ambassador from Japan and said 
atmospherics for the first day were largely positive. 
Moragoda conveyed a Tiger request to participate in the 
April 14 donor meeting in Washington.  There was another 
incident off the northeast coast on March 17, but it has 
been resolved.  The talks seem to have gotten off to a 
better-than-expected start.  END SUMMARY. 
 
2. (C) Mission understands that the Liberation Tigers of 
Tamil Eelam (LTTE) used the first day of the sixth round 
of talks in Japan to complain about the March 10 sinking 
of one of its resupply ships by the Sri Lankan navy. 
(Note:  The talks are taking place in Hakone, a resort 
town outside of Tokyo, from March 18-21.  See Ref B, for 
further details re the March 10 incident.)  In March 18 
and 19 telephone conversations, Milinda Moragoda, the 
GSL Minister of Economic Reform and a key GSL 
negotiator, told the Ambassador that the talks had been 
largely cordial in spite of the Tigers' complaints re 
the March 10 incident.  Moragoda noted that the GSL had 
acceded to a LTTE request that Sea Tiger Leader Soosai 
meet with Sri Lanka Navy Commander D. Sandagiri.  After 
some discussion, it was agreed that the meeting would 
take place within the next three weeks.  Moragoda's 
overall impression was that the talks were proceeding 
well and that the LTTE did not want to disrupt the peace 
process over the March 10 incident, but simply register 
its concern. 
 
3. (C) Moragoda noted to the Ambassador that on March 19 
he had been approached by chief LTTE negotiator Anton 
Balasingham and asked whether the LTTE could be 
represented at the April 14 donor's meeting in 
Washington.  Balasingham stressed that the Tigers have 
shown their commitment to peace and should thus be 
permitted to be represented at the conference.  The 
Ambassador responded that Balasingham's comments had 
been noted, but the answer is a firm "no." (Note:  Re 
this issue, Mission is faxing SA/INS a letter from 
Jeevan Thiagarajah, the head of the Consortium of 
Humanitarian Agencies, a local NGO, advocating that the 
LTTE-controlled Tamil Rehabilitation Organization be 
allowed to attend the April 14 conference.) 
 
4.  (C) Moragoda also told the Ambassador that the 
delegations in Hakone were currently discussing possible 
means of implementing development assistance.  Along 
those lines, the LTTE expressed concern that the U.S. 
planned to oppose the North/East Rehabilitation Fund 
(NERF) as a means of coordinating aid going into LTTE- 
controlled areas.  The Ambassador noted to Moragoda that 
although the USG would not work through the NERF, it 
would not oppose NERF's use by other donors.  The 
Ambassador added that the USG would find a way to keep 
the NERF informed of its bilateral assistance efforts. 
 
5. (C) (((Note:  On a separate issue, Moragoda related 
to the Ambassador that Balasingham had mentioned to him 
recent press reports that the U.S. planned to provide 
the GSL an old U.S. Coast Guard cutter.  Balasingham did 
not complain about the reported procurement, but seemed 
to want Moragoda to know that the LTTE had noticed the 
reports.  Based on Balasingham's reaction, Moragoda told 
the Ambassador that the LTTE was signaling "message 
received."  End Note.))) 
 
6. (C) Local observers were encouraged that the talks 
seem to be going relatively well despite the recent 
tensions sparked by the March 10 incident.  Kethesh 
Loganathan of the Center for Policy Alternatives, a 
well-regarded local think tank, commented that he was 
pleasantly surprised that the Tigers seemed to want the 
talks to be constructive in nature.  Like other 
observers, he said he had feared the group would use the 
talks simply to hit out at the GSL over the March 10 
incident and on other issues.  He also characterized as 
"amazingly positive" Balasingham's reported comments to 
the press that the LTTE would "never walk out of the 
peace process." 
 
7. (C) In the meantime, as reported in Ref A, there was 
another incident off the northeast coast on March 17, 
but it has been resolved.  According to GSL reports, 
navy ships spotted a LTTE craft off the coast of 
Trincomalee on March 17 and asked the boat to stop, but 
it would not.  After firing warning shots, the boat did 
stop and the three LTTE cadre on board surrendered.  The 
navy took the men on shore, but later released them. 
Apparently, despite the navy's initial fears, no arms- 
related equipment was found on the boat, although the 
navy wonders whether the LTTE cadre dumped cargo during 
the chase.  The Norwegian-run Sri Lanka Monitoring 
Mission is looking into what transpired, but has told us 
that the incident does not seem to have led to any 
increase in tension between the two sides. 
 
8.  (C) COMMENT:  Because of the March 10 incident, 
there had been widespread concerns that the Hakone talks 
would be contentious.  Based on what we are hearing, 
however, the talks seem to have gotten off to a better- 
than-expected start.  Moreover, Balasingham seems to be 
trying his level best to give off good vibrations in his 
interactions with the press.  In our estimation, while 
it is still early, the Tigers appear to want to make 
this round of talks work out in a positive fashion.  If 
the Tigers continue to behave, that would help the 
government, which has been under sharp pressure from 
anti-peace process elements of late.  END COMMENT. 
 
9. (U) Minimize considered. 
 
WILLS