US embassy cable - 03COLOMBO704

UNCLAS SECTION 01 OF 04 COLOMBO 000704 
 
SIPDIS 
 
SENSITIVE 
 
STATE PASS TO AID A/D WENDY CHAMBERLIN, AA/ANE 
 
STATE ALSO PASS GORDON WEST, DAA/ANE; BERNADETTE BUNDY, ANE 
 
DEPARTMENT FOR SA, SA/INS, S/CT 
 
LONDON FOR POL/RIEDEL 
 
NSC FOR E. MILLARD 
 
E.O. 12958:  N/A 
TAGS: EAID, PREL, PGOV, CE, LTTE - Peace Process 
SUBJECT:  FINAL DONOR STATEMENT OF PRINCIPLES RE FOREIGN 
ASSISTANCE TO SRI LANKA 
 
Ref:  (A) Colombo 606 
 
-     (B) Colombo 657 
-     (C) Colombo 688 
 
1.  (U) This is an ACTION request, please see para.7. 
 
2.  (U) This message is Sensitive but Unclassified. -- 
Please handle accordingly. 
 
3.  (SBU) SUMMARY:  This cable contains the final draft 
of the donors statement of principles regarding 
provision of foreign assistance to Sri Lanka as the 
peace process proceeds.  This text has been agreed to 
(ad referendum) by all of Sri Lanka's major donors at a 
meeting at Ambassador Wills' residence April 23.  The 
meeting produced relatively minor changes to the text 
drafted the week before and reported in Reftels.  The 
meeting addressed the manner in which the statement of 
principles will be presented.  In light of the Tigers' 
April 21 announcement withdrawing from the next round of 
talks and the Tokyo conference, donors agreed to defer 
the decision about how to present the statement to the 
negotiating parties until the status of peace talks is 
resolved.  The donors would look for advice from the 
Norwegians as to the timing of the release.  Ambassador 
Wills suggested a meeting of the donors after the talks 
reconvene to reassess the situation.  The group also 
discussed a common press posture, should the document 
become public.  END SUMMARY. 
 
4.  (SBU) The principal donors to Sri Lanka reconvened 
April 23 at Jefferson House to discuss proposed 
revisions by capitals to the text agreed to the previous 
week and reported in Ref (B). The meeting produced minor 
revisions to the text itself (see Para.7).  The most 
significant revision to the text was a reordering and 
modification of the priorities contained in the last 
section of the paper and the annex.  Where priority 
milestones in the text were repeated in the annex, they 
have been removed from the annex.  (NOTE: The annex 
cannot be sent in cable form and will follow by fax). 
Much of the afternoon's discussion centered on what to 
do with the paper following the announcement by the LTTE 
on April 21 to suspend peace talks (Ref C).  Ambassador 
Wills proposed waiting until the resumption of talks, 
and to look for advice from the Norwegians as to the 
timing of the release to both parties.  The Japanese 
Ambassador concurred, calling for the co-chairs of the 
June Tokyo conference to review the situation, and 
reformulate their strategy with the Norwegians and the 
group of donors.  He stressed Tokyo's desire to keep the 
document confidential.  All the donors agreed that it 
was likely that the document would be leaked, and 
discussed a common press posture should the document 
become public. 
 
5.  (SBU) One specific change was the on the U.S.- 
proposed language concerning child soldiers in the 
"Reconciliation" section near the end of the paper.  The 
donors modified the language proposed by L concerning 
international law; the bullet point now reads "Underage 
recruitment:  complete halt to recruitment of 
individuals under age 18; progress on the reintegration 
and provision of education and training to current and 
former underage recruits."  The other donors felt L's 
language was too legalistic- imagine that! ?d thus out 
of keeping with the tone of that section otherwise.  We 
trust Washington will concur with the new language. 
 
6.  (SBU) The donors agreed to consult capitals on the 
new text as well as guidance on distribution, with 
Ambassador Wills calling for a meeting once peace 
negotiations resume. 
7.  (SBU) ACTION REQUEST:  Request Washington agencies' 
comments/concurrence on the text in para 7. 
 
Statement of Principles 
======================= 
 
8.  (SBU) Following is the revised statement of 
principles as agreed upon during the April 22 meeting. 
 
Begin Text: 
 
DRAFT April 23, 2003 
 
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 milestones relate to development 
assistance, not humanitarian aid. 
 
Sri Lanka can boast significant progress towards peace. 
The ceasefire agreement has held for more than one year, 
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 procedures 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 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 UN 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 and strengthening of the 
ceasefire agreement, including unrestricted access by 
the SLMM. 
 
-- 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. 
 
-- Development of structures of governance at the 
devolved level that are representative, transparent and 
accountable. 
 
-- Underage recruitment: complete halt to recruitment of 
individuals under age 18; progress on the reintegration 
and provision of education and training to current and 
former underage recruits. 
 
-- 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. 
 
-- 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. 
 
9.  (U) Minimize considered. 
 
WILLS