US embassy cable - 03COLOMBO910

C O N F I D E N T I A L SECTION 01 OF 03 COLOMBO 000910 
 
SIPDIS 
 
DEPARTMENT FOR SA, SA/INS, EUR/NB, EAP/J; NSC FOR 
E. MILLARD 
 
LONDON FOR POL/RIEDEL 
 
E.O. 12958:   DECL: 05/29/13 
TAGS: PGOV, PTER, EAID, CE, NO, JA, LTTE - Peace Process 
SUBJECT:  Norwegians deliver GSL proposal re assistance 
to the Tigers, who indicate they need time to review it 
 
Refs:  (A) Colombo 897 
 
-      (B) Colombo 874 
-      (C) Oslo 1049 
-      (D) Tokyo 3334 (All Notal) 
 
(U) Classified by Ambassador E. Ashley Wills. 
Reasons:  1.5 (b,d). 
 
1.  (C) SUMMARY:  Norwegian facilitators delivered 
the latest GSL proposal re assistance to the Tigers late 
May 28.  The Tigers indicated that they need time to 
review it.  The government is only beginning to brief 
the public on the matter, but, based on what we are 
hearing, the proposal would go some way toward providing 
the Tigers an important -- if not dictatorial -- voice 
in assistance delivery in the north/east.  Whether the 
proposal suits the Tigers' fancy and gets them to the 
upcoming Tokyo conference remain unclear.  END SUMMARY. 
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Norwegians deliver Proposal to LTTE 
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2.  (C) Norwegian government facilitators delivered the 
latest GSL proposal re assistance delivery to the 
Liberation Tigers of Tamil Eelam (LTTE) late May 28. 
(Note:  The proposal forms the GSL's response to the 
LTTE's recent demand for an "interim administrative 
structure" in the north/east that would control 
assistance delivery and that would be dominated by the 
group -- see Refs A-B.  See below for more on the nature 
of the proposal.)  From our understanding, the stop by 
the Norwegian Embassy representatives, including 
polchief Tomas Stangeland, in the LTTE-controlled 
northern Sri Lanka town of Kilinochchi was quite brief. 
The Norwegians reportedly got off the Sri Lankan 
government helicopter to deliver the document to the 
LTTE political office and then got back on for the 
flight back to Colombo.  On receipt of the document, 
LTTE officials indicated that the group would need at 
least several days to study it before responding. 
 
3.  (C) (((Note:  Norwegian Special Envoy Erik Solheim, 
who left Colombo bound for Europe last night, did not 
travel to Kilinochchi.  It was originally envisaged that 
Solheim -- who has long experience in dealing with the 
Tigers -- would provide the proposal to the LTTE on 
May 27.  The Tigers postponed that meeting for reasons 
that remain unclear.  It is possible, but not confirmed, 
that Solheim may meet the LTTE's London-based spokesman 
Anton Balasingham soon.  End Note.))) 
 
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Proposal's Elements become Clearer 
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4.  (C) The exact contents of the government's proposal 
to the LTTE have not yet been published, but its key 
elements -- if not the precise details -- are becoming 
available.  Minister for Economic Reform Milinda 
Moragoda, for example, chaired a meeting of donor and 
international financial institution (IFI) 
representatives on May 28 to review the matter.  (Note: 
Moragoda left Colombo later in the day bound for Tokyo 
to review preparations for the donors conference with 
the Japanese government.)  At Moragoda's request, Peter 
Harrold, World Bank representative, briefed on the GSL 
response to LTTE demands for more control of assistance 
projects.  (Note:  The document Harrold briefed on -- 
which was apparently the text of what was provided by 
the Norwegians to the Tigers -- was not provided to 
those at the meeting.  Moragoda said the government did 
not want to release the document at this time, as it was 
still under review by the LTTE.) 
 
5.  (C) In his briefing, Harrold sketched out a complex 
scheme explaining the GSL's proposed assistance 
"delivery mechanism."  (Note:  In its rough form, the 
scheme Harrold previewed seemed to have a lot in common 
with what the Ambassador heard in a May 24 meeting 
chaired by Prime Minister Wickremesinghe -- see Ref B.) 
Harrold said there would be an "apex" body, appointed by 
both parties (government and LTTE), which would set 
policy and priorities for assistance.  This body would 
also provide oversight of North-East Reconstruction Fund 
(NERF) projects, and other projects funded by donors who 
cannot contribute to NERF.  (Note:  The general idea is 
to give the LTTE a "major" but not a "majority" say in 
what happens to the aid to the NE.)  An institutional 
structure headed by a "commissioner" would carry out the 
work through GSL agencies and donors.  Finally, a 
"consultative committee" of donors would review progress 
and ensure the inclusion of all communities (especially 
Muslims, who are threatened by the LTTE in the east and 
feel left out of the peace process).  When queried as to 
whether the proposal might be acceptable to the LTTE, 
Norwegians representatives at the meeting said they did 
not expect a quick response from the group, but hoped 
for a substantive counterproposal. 
 
6.  (C) The Japanese Embassy representative at the 
meeting also provided a document containing general 
information on the Tokyo conference, which is scheduled 
to take place June 9-10.  (Note:  This document has been 
faxed to SA/INS.)  The Japanese representative said 56 
countries and 20 international organizations had said 
they would likely attend the conference.  Only one seat 
at the table, and two seats behind that, would be 
available for each delegation in the conference hall, 
the GoJ emboff related.  Other delegates would have to 
watch the proceedings in a nearby "monitoring room." 
 
7.  (C) (((Note:  Those present at the May 28 meeting 
were also briefed on a document, which essentially 
bridges the "Regaining Sri Lanka" initiative and the 
recent IFI assessment of needs in the north and east, 
by combining them.  This document has also been faxed to 
SA/INS.  Significant in it is the estimate of the gap in 
GSL financing for 2003-2006.  Coverage of these totals 
is what the government will be seeking in Tokyo. 
Deficits range from $441 - $551 million each year.))) 
 
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GSL begins to sell Proposal to the Public 
----------------------------------------- 
 
8.  (SBU) While gliding lightly over the complex 
details, the government has begun to review its 
potentially controversial proposal with the Sri Lankan 
public.  In widely quoted remarks made on May 28, 
government spokesman and Minister of Constitutional 
Affairs G.L. Peiris said he hoped the LTTE accepted the 
GSL's proposal and agreed to come to the Tokyo 
conference.  Re the proposal, he commented that the GSL 
had "formulated a set up of ideas for the creation of a 
development oriented structure in the northeast for the 
effective implementation of the rehabilitation and 
reconstruction of the region."  Peiris went on to insist 
that the GSL's proposal was well within Sri Lanka's 
legal system and was fully consistent with the current 
constitution.  (Note:  In May 29 public remarks, PM 
Wickremesinghe urged the Tigers to be flexible and "more 
understanding," so as to allow the peace process to move 
forward.) 
 
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COMMENT 
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9.  (C) Whether the government's latest proposal suits 
the Tigers' fancy and gets them to the upcoming Tokyo 
conference are still very unclear.  The group has made 
some tough demands and the GSL's current proposal does 
not seem to give them the almost total control of 
assistance delivery in the north/east that they want. 
That said, the government has certainly come a long, 
long way and the LTTE will probably review the proposal 
quite closely.  Getting the Tigers to climb out of the 
hole they have dug themselves in time for Tokyo may be 
difficult, however.  END COMMENT. 
 
10.  (U) Minimize considered. 
 
WILLS