US embassy cable - 03COLOMBO657

UNCLAS SECTION 01 OF 05 COLOMBO 000657 
 
SIPDIS 
 
PASS TO USAID AMBASSADOR WENDY CHAMBERLIN, AA/ANE; GORDON 
WEST, DAA/ANE; BERNADETTE BUNDY, ANE 
 
DEPARTMENT FOR D, SA, SA/INS, LONDON FOR POL/RIEDEL 
NSC FOR E. MILLARD 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAID, PREL, CE, LTTE - Peace Process 
SUBJECT: REVISED DONOR STATEMENT OF PRINCIPLES RE FOREIGN 
ASSISTANCE TO SRI LANKA 
 
 
SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY 
 
Ref: Colombo 606 
 
1. (U) This is an ACTION request, please see para. 6. 
 
2. (SBU) Summary: This cable contains the latest draft of 
the Donors' statement of principles regarding provision of 
foreign assistance to Sri Lanka as the peace process 
proceeds.  The text has been agreed to (ad referendum) by 
all of Sri Lanka's major donors at a meeting at Ambassador 
Wills' residence April 15.  The meeting produced only minor 
revisions to the text agreed the week before and reported in 
reftel.  The meeting did produce, however, a major change to 
the manner in which the statement of principles will be 
presented: donors agreed to defer the decision on whether to 
make the document public at the June Tokyo Donor Forum.  The 
donor group will first present the statement privately to 
the GSL and LTTE, through the Norwegians, at the seventh 
round of peace talks to begin April 29 in Thailand.  Based 
on the reactions of the GSL and LTTE to the document, the 
donor community will decide whether to make the statement 
public at Tokyo or not.  Insofar as possible, the donors 
will keep the document private unless agreed otherwise.  The 
group also discussed a common press posture, should the 
document become public.  End Summary. 
 
3. (SBU) The principal donors to Sri Lanka reconvened April 
15 at Jefferson House to discuss proposed revisions by 
capitals to the text agreed the previous week and reported 
reftel.  The meeting produced only minor revisions to the 
text itself (see para. 7).  The most significant revision to 
the text was to insert an explicit distinction between 
development assistance and humanitarian assistance: the 
former would be linked to the statement of principles, but 
the latter would not.  Most of the afternoon's discussion 
focused on how best to present the statement to the GSL and 
LTTE, so as not to alienate either party (especially the 
LTTE) and thereby upset the peace process.  The Japanese 
Ambassador had earlier in the day called a meeting of the 
four co-chairs of the June Tokyo conference (Japan, US, the 
EU and Norway) to discuss how the donor community should 
handle the document.  The "quartet" decided that it would be 
best to make the document a private message to the GSL and 
the LTTE from the donor community, rather than make it 
public in Tokyo in June (as agreed by the donor group the 
previous week).  The quartet then presented that 
recommendation for consideration by the wider donor 
community during the all-hands meeting at Jefferson House. 
 
4. (SBU) Some donors (notably Canada and the Netherlands) 
disagreed with the quartet and argued the document would be 
effective only as a public declaration by the donor 
community; others saw merit in a quieter approach.  The 
group ultimately reached a consensus to present the 
statement of principles privately to the GSL and LTTE, 
through the Norwegian facilitators, at the Thailand peace 
talks scheduled for April 29.  Both parties will then have a 
chance to react to the document in subsequent weeks.  Based 
on the reactions, the donor community will then decide 
whether to make the document public at the June Tokyo Donor 
Forum (as originally planned).  All agreed that it was 
likely the document would be leaked at some stage, and 
discussed a common press posture should the document become 
public. 
 
5. (SBU) The donors agreed to consult capitals on the new 
text as well as the new manner of presentation by April 23, 
when the group will convene again at Jefferson House. 
 
6. (SBU) Action Request: Request Washington agencies' 
comments/concurrence prior to April 23 on the text in para. 
7, the proposed manner for presenting the document described 
in para. 8, and the "if asked" press guidance in para. 9. 
----------------------- 
Statement of Principles 
----------------------- 
7. (SBU) Begin Text: 
 
                    DRAFT April 15, 2003 
 
      Consensus Paper on Basic Principles for Peace and 
                         Development 
 
 
1. Purpose 
To ensure sustainable resources for peace and development in 
Sri Lanka through a process that links development 
assistance to adherence to basic principles. This is not 
intended to prescribe but rather to take forward the 
dialogue and partnership among GOSL, LTTE and donors, on 
shared concerns. 
 
2. Background and Rationale 
Sri Lanka is in a period of transition, somewhere between 
war and peace but not yet definitively `post conflict.' 
Progress towards peace and political settlement must be 
encouraged and supported by all parties. 
 
This paper highlights basic agreed principles and suggests 
milestones that link development assistance to the peace 
process. The principles and milestones relate to development 
assistance, not humanitarian aid. 
 
Sri Lanka can boast significant progress towards peace. The 
ceasefire agreement is one year strong, regular peace 
negotiations have demonstrated commitment to address core 
issues such as a political settlement, human rights, 
humanitarian and rehabilitation assistance and gender. 
Development achievements are also noteworthy:  SIHRN has 
been established and acknowledged by the international 
community; NERF is operational; quick impact projects are 
being approved; the paper, "Regaining Sri Lanka," along with 
a multilateral group-supported assessment for immediate and 
medium term rehabilitation needs, will be tabled at a 
pledging conference in Tokyo in June 2003. 
 
The peace process and the development process are mutually 
reinforcing.  There is need, therefore, to develop 
mechanisms for ensuring they complement each other. 
 
3. Basic Principles 
 
3.1 Progress on Political settlement 
The main message of the Oslo Declaration is that a viable 
political settlement should be the desired outcome of the 
peace process.    Through six rounds of talks, progress and 
commitments have been made on substantive issues.  At the 
Hakone talks, the parties to the negotiation reiterated 
their commitment to develop a federal system based on 
internal self-determination within a united Sri Lanka.  This 
consensus paper recognises that this process will take time, 
and aims to enhance this positive momentum. 
 
3.2 Respect for human rights and security 
Human security is central to the post conflict peace 
settlement process.  It encompasses freedom for civilians 
from pervasive threats, ensures their protection and safety, 
and promotes respect for human rights by all parties. 
 
The Hakone peace talks expressed the parties' commitment to 
respect and uphold human rights.  We encourage expeditious 
development and implementation of the human rights roadmap. 
There has also been ongoing substantive dialogue between the 
LTTE and a coalition of organisations led by UNICEF on child 
rights and children affected by war. 
 
Considerable commitments were made during 2002 regarding 
land tenure and access issues in conflict-affected areas, 
and on the rights of IDPs.  These positive initiatives now 
require support and implementation.  Adoption of the Guiding 
Principles on Internal Displacement would support these 
initiatives. 
 
 
3.3 Participation and Representation 
The Oslo Declaration and SIHRN's Guiding Principles 
underscore the importance of recognising the needs and 
aspirations of all ethnic communities as well as actively 
involving beneficiaries of development assistance in 
planning their own development. 
 
At present, ordinary Sri Lankans need a better understanding 
of the peace process.  Wider public knowledge and dialogue 
on the negotiations would strengthen public support for 
peace. 
 
Keys to effective engagement with international actors on 
development, investment and trade will be establishing 
pluralistic, representative government and open, market- 
oriented economies in conflict-affected areas. In the latter 
connection, the donors call on the parties to adopt economic 
policies aimed at reducing poverty and encouraging private 
sector activity. 
 
3.4 Democracy 
The donors accept that it is for the parties to negotiate 
constitutional arrangements with which the country as a 
whole will be comfortable.   The donors' concern is that the 
system must be democratic, transparent and accountable. 
 
There is overwhelming support for a greater degree of 
autonomy at local levels, with representative decentralised 
local government that is accountable, responsive to local 
needs, makes better use of available local resources and 
delivers efficient services.    While this transition will 
take time, developing and strengthening local government 
structures expeditiously will help build trust within and 
between communities and create an enabling environment for 
increased donor support.  The Hakone proposal to prepare for 
local government elections in the North and East is a 
welcome initiative. 
 
3.5 Transparency and Management of Finances 
With additional resources being committed in the conflict- 
affected areas, the open and transparent management of these 
resources would increase community and donor confidence. 
While the guidelines for SIHRN and the NERF are positive 
steps, the lack of clarity over systems of revenue 
generation, resource distribution and taxation in conflict- 
affected areas needs to be resolved.  The donors urge the 
parties, in the management of public finance and development 
assistance, to combat waste, fraud, and all other corrupt 
practices. 
 
4. Reconciliation 
Ultimately, the goal of the peace process will be 
reconciliation between and among communities island-wide. 
This will require the underlying causes of tensions between 
and amongst communities island-wide to be addressed and 
reconciled.  National frameworks such as that for Relief, 
Rehabilitation and Reconciliation (3R) make important 
recommendations which address both equity and access 
imbalances in Sri Lanka.  Issues such as language policy, 
education and public sector reform require immediate action, 
additional resources and unwavering political commitment. 
 
5. Milestones 
The success of the framework will depend on the setting of 
realistic and achievable milestones.  The immediate 
priorities include: 
 
-- Full implementation of the ceasefire agreement, including 
unrestricted access by the SLMM. 
 
-- Underage recruitment: children no longer subject to 
recruitment; progress on the reintegration of current and 
former underage recruits into communities 
 
-- Adoption of the "plan" leading to a final political 
settlement. 
 
-- Clarification of the respective roles of central and 
local government in the administration of taxation and the 
management of public funds. 
 
-- Respect for basic operating principles of international 
humanitarian and development assistance agencies. 
 
-- Progress on settlement of land and livelihood issues on 
occupied lands, including in the HSZ. 
 
-- Development of structures of governance at the sub- 
national level that are representative, transparent and 
accountable. 
 
-- No laying of new mines and increased mine clearance. 
 
As the peace process progresses, there will need to be 
dialogue to establish further milestones in emerging areas 
such as security and related matters. 
 
Annex 1 contains sample, illustrative milestones in support 
of the above principles. 
End Text. 
 
(Note: Donors agreed to label the document "Confidential," 
not to classify the text per se, but to convey the shared 
intention to keep the document private.  End Note.) 
 
------------------------------- 
Proposed Manner of Presentation 
------------------------------- 
 
8. (SBU) As agreed by the donor group, the Norwegians will 
present the statement of principles privately to the GSL and 
LTTE at the Thailand peace talks scheduled for April 29. 
Both parties will then have a chance to react to the 
document in subsequent weeks.  Based on the reactions, the 
donor community will then decide whether to make the 
document public at the June Tokyo Donor Forum (as originally 
planned). 
 
------------------------- 
"If asked" Press Guidance 
------------------------- 
 
9. (SBU) Consistent with the common press posture agreed by 
the donor group, Mission has developed the following "if 
asked" press guidance in the event the statement of 
principles becomes public. 
 
Question:  Is the donor community in Sri Lanka developing 
"conditionalities" that link development assistance to 
progress in the peace talks? 
 
Answer:  Development aid won't work unless conditions on the 
ground permit development to occur.  Knowing this, the donor 
community is moving toward consensus on links between 
progress in the peace process and aid for peace. 
 
Question:  Why hasn't the donor community shared these 
deliberations with the Sri Lankan public? 
Answer:  We felt it appropriate for the donor community to 
take its concerns directly and privately to the GSL and the 
LTTE.  In turn, it is up to the GSL and the LTTE to 
determine whether to make our concerns public. 
 
Question:  Why have you kept these discussions from the GSL 
and the LTTE? 
 
Answer:  It was the donor community's intention to share its 
concerns, through the Government of Norway, with the GSL and 
the LTTE during the peace talks to be convened in Japan. 
 
Question:  What do you mean by "links"? 
 
Answer:  Again, this question is for the parties to answer. 
Clearly, though, it is fruitless to rebuild schools when 
children are still subject to recruitment.  Agricultural aid 
will lead to prosperity, but not until promises to lay no 
new landmines are kept and mine clearance activities are 
enhanced.  More generally, international and development 
assistance agencies cannot hope to work in conflict areas 
unless their basic operating principles are respected. 
 
WILLS