US embassy cable - 03COLOMBO731

UNCLAS SECTION 01 OF 02 COLOMBO 000731 
 
SIPDIS 
 
 
FOR SA, SA/INS,D 
PASS TO USAID, AMBASSADOR WENDY CHAMBERLAIN, AA/ANE; 
GORDON WEST, DAA/ANE; JAMES BEVER AND BERNADETTE BUNDY, 
ANE/SA 
 
E.O. 12958: N/A 
TAGS: EAID, CE, LTTE - Peace Process 
SUBJECT:  SIXTH TOKYO CORE AND EXPANDED GROUP MEETING OF 
APRIL 28, 2003 
 
 
1. SUMMARY:  GSL and multilaterals assess the Washington 
Seminar a success.  Planning for the Tokyo Donor's 
Conference continues as scheduled. The Colombo pre-Tokyo 
Seminar has been postponed.  GSL, multilateral and 
Bilateral donors have mixed views and strategies regarding 
the LTTE suspension from the talks. GSL and multilaterals 
ask for immediate pledges to the NERF to assuage the LTTE. 
The Japanese have changed the agenda for Tokyo to 
accommodate US concerns.  END SUMMARY. 
 
2. Minister Moragoda chaired the meeting.  He indicated 
that the GSL decided to go ahead with preparations for the 
Tokyo Conference but would remain flexible in keeping the 
door open for the LTTE.  Moragoda said that playing with 
the schedules given the high-level representation 
anticipated at the meeting was not an appropriate way to 
proceed. The Colombo Seminar was put off and may be 
rescheduled for later in May.  Moragoda said that the GSL 
realized that there were high-risk elements to this 
strategy and that the current situation was a test of 
Government resolve.  The GSL was sincere in trying to 
address the issues raised by the LTTE and hoped that the 
LTTE suspension was not tactical or simply grandstanding. 
 
3. Minister Moragoda thanked donors for their governments' 
attendance at the Washington meeting, which he 
characterized as successful in laying the foundation for 
Tokyo.  Concerns were expressed that the press coverage 
had given the impression that Washington was a pledging 
conference, and this was misunderstood by the LTTE. 
Moragoda reiterated that the GSL was resolute about the 
Tokyo meeting and indicated that the current situation was 
a test of the commitment to the process.  He hoped that 
the LTTE's concerns were focused on substantive issues. 
 
4. The Japanese Ambassador said that although the GOJ 
considered LTTE participation essential, Tokyo was 
standing firm and resolute for the June conference date. 
He was encouraged by the sincerity of the GSL's efforts to 
bring the LTTE back to the table. He indicated that the 
current and former Norwegian Ambassadors would be going to 
see Thamilselvan in Kilinochchi on April 30 to ask the 
LTTE to reconsider its suspension of the talks and its 
participation in the Tokyo conference.  As previously 
scheduled, Mr. Akashi is due in Sri Lanka from May 3 to 
May 9.  Meetings for him are planned with the PM, 
President, GL Peiris, international organizations and like- 
minded Ambassadors. 
 
5. The time schedule for preparation of the Tokyo 
documentation remains the same. The three documents to be 
shared with donors include Regaining Sri Lanka, the needs 
assessment document and a "bridging document" that has not 
yet been drafted. The Japanese Ambassador said that the 
draft Tokyo Conference agenda remains the same except for 
the addition of a coffee break after the final plenary. 
Since the final plenary included remarks by the LTTE, the 
break would enable the USG to make final remarks along 
with the other co-chairs without the LTTE at the head 
table. 
 
6. On the topic of LTTE sensibilities, Minister Moragoda 
indicated that the LTTE's perception right along has been 
that the GSL is using the peace process to secure funding 
for the South.  The GSL's intent has been neither to 
humiliate nor corner the LTTE. The situation has now 
reached a critical stage. The PM will be responding 
directly to Balasingham's letter.  Bernard Gunathilake 
will be explaining to Thamilselvan the immediate steps 
that were being taken by the GSL to address the LTTE's 
concerns.  Austin Fernando has developed a plan for the re- 
relocation of division headquarters in Jaffna.  The GSL 
and LTTE view the high security zones differently.  While 
the GSL views them both as a security issue and a 
humanitarian assistance issue, the LTTE thinks that this 
is just an humanitarian issue (related to IDPs).  The GSL 
suggested for discussion the issues beyond the high 
security zones that were expected to be raised in the next 
round of peace talks in Thailand.  Moragoda emphasized 
that the GSL was making efforts to try to restart the 
talks within a certain framework -- not just on the LTTE's 
terms. The agenda must address issues of importance to 
both sides, such as federalism. 
 
7. There was considerable discussion about the LTTE's 
understanding of economic issues.  Ambassador Wills 
queried the multilaterals as to the level of 
sophistication of the LTTE on these issues.  Minister 
Moragoda said that there needed to be an Economics 101 
discussion with the LTTE but he didn't know the venue for 
such a talk.  The group was hopeful that Balasingham's 
press response to Ambassador Wills' newspaper interview 
regarding open markets was a positive trend in the LTTE's 
thinking. 
 
8. A number of Core Group members reported out on the NGO 
workshop on the peace process that was convened by the 
Center for Policy Alternatives last weekend. The 
discussions workshop focused on such issues as the 
perceived lack of consultation on Regaining Sri Lanka, 
insufficient attention to human rights issues in the peace 
talks, the need for benchmarks in the peace process, the 
heavy emphasis of the role of the private sector in the 
Needs Assessment and the feasibility of the NERF funding 
mechanism. The World Bank representative said that finding 
a representative group from civil society was a challenge 
in Sri Lanka but a more systematic consultation process 
was needed to address some of the ongoing concerns such as 
those raised at the NGO workshop. 
 
9. The Wider Group meeting was held immediately following 
the Core Group and was basically a summary of the prior 
meeting. The major and heated topic of discussion was 
pledging to the NERF since a number of donors in the Wider 
Group had pledged to fund through this mechanism in Oslo. 
Minister Moragoda and the multilaterals indicated that the 
LTTE does not perceive that the WB's, ADB's or bilateral 
funds going to the North and East as "its" and can not 
claim them for political advantage.  It wants funds in the 
NERF approved by SIRHN because the Tigers can claim that 
they got these funds because of the struggle.  Moragoda 
stated that the GSL was putting part of the debt relief 
provided by the Netherlands into the NERF and part of it 
into activities in the South. There were differing 
opinions from donors about putting funds into the NERF 
under the current situation. The GSL, World Bank, ADB and 
UN were all encouraging donors to put funds in now as a 
show of good faith.  The Italian Ambassador in his role as 
EU political representative suggested that perhaps this 
was a time not to follow the rules too closely.  The head 
of UNHCR said that people needed to see more activity on 
the ground regardless of how.  The LTTE had been empowered 
to decide where and what type of projects would be 
implemented in the North and East. The Netherlands, Swiss 
and Sweden all expressed reservations about putting funds 
in the NERF under these circumstances. (Note: the UK is 
under the greatest pressure to commit to the NERF now 
since had been ready to pledge $15 million prior to the 
suspension of the peace talks but are reluctant to do so.) 
WILLS