US embassy cable - 03COLOMBO1015

UNCLAS SECTION 01 OF 04 COLOMBO 001015 
 
SIPDIS 
 
Department for D (Gastright), INR/MR, I/RW, I/REC, 
SA (CAMP, WALLER), SA/PD (BRENNIG, IRWIN, SCENSNY), 
SSA/PAS; SSO (PASS TO D); TOKYO (HARA, BRYAN) 
 
E.O. 12958:N/A 
TAGS: KPAO, OPRC, KMDR, OIIP, CE, LTTE - Peace Process 
SUBJECT:  MEDIA PLAY: (JUNE 11) TOKYO CONFERENCE 
 
1. Summary.  In the aftermath of the Tokyo Conference, Sri 
Lankan English and vernacular media was in high gear.  Tamil 
newspapers ran positive headlines about Tokyo's outcome, but 
reflected concern about opposition party views of donor 
money.  Tamil editorials encouraged the LTTE to return to 
peace talks and discussed the international community's 
interest in Sri Lanka.  One Tamil editorialist observed, "It 
should be noted that the change of attitude of the Tigers in 
seeking solutions for the problems of the Tamil people and 
entering the democratic stream was a great give-in by the 
LTTE."  State-owned television, radio and newspapers toed 
the optimistic government line.  Opposition media headlines 
were sour, but editorials lacked their usual vitriol aimed 
at the international community.  Independent media coverage 
of Tokyo's outcome was very positive.  End summary. 
 
----- 
2. LTTE statements and other Tamil reaction. 
----- 
Tamil newspapers ran positive headlines about Tokyo's 
outcome, but reflected concern about opposition party views 
of donor money.  Major dailies led with headlines about the 
interim administration and international encouragement of 
the peace process.  Independent daily VIRAKESARI reported, 
"`Government and Tigers should soon talk on interim 
administrative structure - Must find solutions on the basis 
of a federal a system' - Declaration at the Tokyo 
Conference."  Independent daily THINAKKURAL elaborated, 
"Tokyo Conference invites Tigers to resume peace talks; 
Akashi will meet Balasingham in London; Japanese Ambassador 
in Sri Lanka will travel to Kilinochchi immediately," while 
pro-LTTE SUDAR OLI focused on Armitage's comments, "All 
should work with courage and achieve peaceful solution 
through talks." 
 
The fate of donor money generated much consternation in the 
Tamil press.  Pro-LTTE  SUDAR OLI headlined, "Tokyo 
Conference wants GSL to assure that the funds allocated for 
NE will be spent in respective areas," while independent 
daily THINAKKURAL quoted Japanese Special Envoy Akashi, 
"Considerable amount of the aid received would be spent for 
NE." 
 
Nearly all Tamil dailies paid special attention to People's 
Alliance Spokesman Sarath Amunugama's recent comments. 
Independent daily VIRAKESARI quoted him, "No benefits from 
Tokyo Conference; we will speak on this once we come to 
power."  Independent daily, THINAKKURAL added, "PA worried 
that the Tokyo Conference has made the Sri Lankans bigger 
debtors." 
 
Pro-LTTE TamilNet also featured Amunugama's remarks under 
the headline, "`Tokyo donors' conference will not benefit 
Sri Lanka' -PA." 
 
Block quote: 
 
Sri Lanka's main opposition People's Alliance (PA) led by 
President Ms Chandrika Kumaratunge Tuesday said ninety 
percent of aid pledged at the Tokyo donors' conference are 
loans and not grants. "Majority of the aid given at the 
donors' conference are on various interest rates with 
several conditions attached," said People's Alliance media 
spokesman Mr.Sarath Amunugama at a press briefing held 
Tuesday at the office of the Leader of the Opposition. 
 
End block quote. 
 
Tamil editorials encouraged the LTTE to return to peace 
talks and discussed the international community's interest 
in Sri Lanka. 
 
--- Under the headline, "Prime Minister's speech and the 
administrative structure," independent daily VIRAKESARI 
commented, "It should be noted that the change of attitude 
of the Tigers in seeking solutions for the problems of the 
Tamil people and entering the democratic stream was a great 
give-in by the LTTE." 
 
Block quotes. 
 
The LTTE alleges that the aid received for NE would not be 
spent on NE. SIHRN, a body formed as a result of the peace 
talks is almost paralyzed. This made the Tigers to demand a 
powerful body with more authority to handle the aid that 
would be received. 
 
The speech made by the PM has solutions for all these 
problems. SL Constitution is the barrier for all the 
progress. That is why the Tigers opted to go their way. It 
was a victory for the government when the LTTE agreed to a 
solution through peace talks. It should be noted that the 
change of attitude of the Tigers in seeking solutions for 
the problems of the Tamil people and enter the democratic 
stream was a great give-in by the LTTE. If lasting peace 
should dawn, both parties should be prepared to give-in more 
and more. Otherwise this will be an ongoing series forever. 
End block quotes. 
 
--- Under the headline, "Two things that the Tokyo 
Conference teaches," pro-LTTE daily SUDAR OLI chronicled the 
international community's interest in Sri Lanka and noted 
that the cooperation of the LTTE is necessary to reach a 
political settlement and reconstruct the north and east. 
 
Block quotes. 
 
It was possible to find out about the interest the 
international community has in the LTTE at the Tokyo 
Conference they boycotted. 
 
While addressing the conference, the Prime Minister accepted 
the fault of the government and pointed out that action will 
be taken to establish a provincial administrative structure 
with the support of the international community.  There's 
not much of a difference between an interim administrative 
structure and a provincial administrative structure.  The 
international community has accepted the provincial 
administrative structure. 
 
The Tokyo Donor Conference has stressed that government and 
the LTTE should jointly continue with peace talks and 
utilize the assistance provided by the international 
community in a proper manner for the reconstruction and 
development work. 
 
The international community has given an assurance to grant 
USD 4.5 billion as aid instead of USD 3 billion that was 
expected.  If there is progress in the peace efforts the 
international community will consider more aid. The 
international community is greatly interested in a peaceful 
Sri Lanka. 
 
End block quotes. 
 
----- 
3. GSL statements and pro-government reaction. 
----- 
State--owned television, radio and newspapers toed the 
optimistic government line.  One editorial addressed the 
impact of donor conditions on the peace process.  State- 
owned English DAILY NEWS enthused, "Donors reaffirm 
commitment to rebuilding Sri Lanka," while state-owned 
Sinhala sister DINAMINA reported, "`Message given by the 
Tokyo conference - a supportive tool for restoring peace- 
talks' says PM at the conclusion of the confab."  The DAILY 
NEWS' positive coverage continued, "Tokyo a new beginning to 
re-energise peace process - PM," and  "We will support you 
in quest for peace - Armitage." 
 
Under the editorial headline, "Seizing the moment," state- 
owned English DAILY NEWS observed that donor considerations 
".should prompt both major parties in the peace process to 
carefully map out their future courses of action." 
Block quotes. 
In other words, the massive aid pledge is an unprecedented 
vote of confidence in Sri Lanka, on the part of the aid- 
giving community. Chief, of course, among the latter are 
Japan, the US and the EU. 
Clearly, the aid promised would be concretely realised only 
in tandem with tangible progress made in the peace effort. 
In other words, this is financial assistance with strings 
attached. Sri Lanka would need to provide proof that it is 
safely on the path to a negotiated settlement, if the 
promised donor funding is to be forthcoming. 
These considerations should prompt both major parties in the 
peace process to carefully map out their future courses of 
action. As far as the Government is concerned, it is 
abundantly clear that it would want to go ahead with the 
negotiating process. However, it is only fair that it is 
realised that the conditions on the ground should be 
conducive to a return to the negotiating table on the part 
of the LTTE. For instance, the development process in the 
North-East should get on to a fast track if the LTTE is to 
realise that it would be worthwhile giving the negotiations 
another try. 
End block quotes 
 
---- 
4. Opposition statements and pro-opposition reaction. 
----- 
Opposition media headlines were sour, but editorials lacked 
their usual vitriol aimed at the international community. 
Independent, but nationalist-leaning, Sinhala daily DIVAINA 
reported, "LTTE boycotted confab to keep away from 
international human rights convention,"  and echoed the 
opposition's gripes about donor aid delivery, "PA 
spokesperson says `Tokyo aid added to our debts.'"  Sister 
paper English daily ISLAND detailed the same theme, "Per 
capita debt zooms to Rs. 95,000 after Tokyo Aid - PA," but 
softened its coverage with," "Donors pledges $4.5 b at Tokyo 
confab - Aid above expectation and foundation for peaceful 
Lanka - PM."  Independent Sinhala LANKADEEPA also covered 
the PA's comments, "[This is] not a gift from Santa - 95% 
aid is debt, per capita debt is 95,000- says Sarath 
Amunugama [PA-spokesperson]." 
 
 
--- Independent, but nationalist-leaning, English daily 
ISLAND's editorial comment slammed the LTTE, but reversed 
its frequent criticism of the international community's 
involvement in the Sri Lanka's peace process.  Under the 
headline, "Boycott boomerangs!" the ISLAND wrote, ".we do 
concede the conference has been a great accomplishment by 
those who put it together-- US Ambassador Ashley Wills, 
Japanese envoy Yasushi Akashi, Prime Minister Ranil 
Wickremasinghe and Minister Milinda Moragoda.  This support 
of the developed nations was . ice cold water on the 
hotheads of the LTTE who tried to hijack the conference by 
virtual blackmail of the Sri Lanka government and the donor 
nations." 
Block quotes. 
Despite this newspaper's reservations on foreign 
interference in this purely internal affair of this country 
and belief that foreign assistance is no panacea, we do 
concede the conference has been a great accomplishment by 
those who put it together-- US Ambassador Ashley Wills, 
Japanese envoy Yasushi Akashi, Prime Minister Ranil 
Wickremasinghe and Minister Milinda Moragoda. This support 
of the developed nations was also ice cold water on the 
hotheads of the LTTE who tried to hijack the conference by 
virtual blackmail of the Sri Lanka government and the donor 
nations. 
The reaction of the LTTE to the Tokyo Conference is not 
known at the time of writing but it would be extremely 
quixotic for this terrorist group to defy this well meaning 
and While reconstruction and rehabilitation is a process 
that can bring the two growling parties together, the hard 
nut to crack is the Eastern Province with Tamils, Muslims 
and Sinhalese in near equal numbers. Till that issue is 
resolved it is apparent that a solution will not be 
forthcoming. 
We have time and again said in this column that the basis on 
any agreement will be dependent on the consensus being 
reached between the UNF government and President 
Kumaratunga. Prime Minister Ranil Wickremasinghe has paid 
very statesmanlike compliments to President Kumaratunga at 
Tokyo and if this is responded to in the right spirit that 
elusive consensus may be reached. 
End block quotes. 
 
--- LAKBIMA, a strongly nationalist Sinhala daily, was 
unusually accommodating on its editorial page.  Under the 
headline, "Assistance required for development," LAKBIMA 
commented, "What the country needs right now is not 
unconstructive criticism caused by political differences. 
It needs positive dialogue as to how we should use this aid 
appropriately.  Being highly enthusiastic about the funds 
received is not enough.  Proper development plans are 
needed.  Mutual cooperation is essential.  If everybody's 
goal is the country's development, it will not be difficult 
to work in unison." 
 
----- 
5. Independent media reaction 
----- 
Independent media coverage of Tokyo's outcome was very 
positive.  Independent television and radio carried 
interviews with Deputy Secretary Armitage on both English 
and vernacular news programs.  Independent Sinhala daily led 
with, "`Return to peace talks' - Tokyo confab's joint 
statement - 51 countries, 21 organizations say in unison to 
LTTE."  Independent English DAILY MIRROR gushed, "World 
urges LTTE to resume talks - Clear and powerful message with 
whopping aid package of US$ 4.5 billion," and "Overwhelmed 
Premier says `Istuti, Nandri [thank you].'"  DAILY MIRROR 
business coverage observed, "Ranil promises speed for aid 
projects," and "Private sector hails donor support." 
Independent editorialists were silent. 
AMSELEM