US embassy cable - 03COLOMBO1214

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 001214 
 
SIPDIS 
 
DEPARTMENT FOR SA, SA/INS; NSC FOR E. MILLARD 
 
E.O. 12958:   DECL: 07-11-13 
TAGS: PREL, PGOV, ETRD, EINV, CE, IZ, IN 
SUBJECT:  Mission requests status of Iraqi Mission in 
Sri Lanka 
 
Refs:  Colombo 1093 (Notal) 
 
(U) Classified by Donald Camp, Charge d'Affaires. 
Reasons 1.5 (b,d). 
 
1.  This is an Action Request.  Please see Para 6. 
 
2.  (C) SUMMARY:  During a July 9 meeting with Charge, 
MFA Acting Foreign Secretary (and former DCM at the Sri 
Lankan Mission in Washington) JDA Wijewardena expressed 
concern that the Coalition Provisional Authority (CPA) 
in Baghdad was planning to close the Iraqi Mission in 
Sri Lanka.  Wijewardena also provided a Charge with an 
aide memoire outlining the GSL position, based on 
economic and trade interests, that the Iraqi Mission 
here not be closed.  Mission requests information on the 
status of the Iraqi Mission in Sri Lanka.  END SUMMARY. 
 
3.  (C) INCOMPLETE INFORMATION:  The MFA was not fully 
informed re the closing of the Iraqi Mission.  When 
queried on the specifics, Wijewardena could not reliably 
attribute the information that the Mission would be 
closed.  He thought that perhaps the Iraqi Mission 
itself had mentioned something, but admitted the MFA had 
not received any formal notification.  Charge responded 
that our Embassy had not received anything specific from 
Washington re the Iraqi Mission here.  The MFA knew that 
the Iraqi Charge had been summoned back to Baghdad some 
weeks ago, but, during the meeting, confirmed that the 
Iraqi Charge had returned and was currently in Sri 
Lanka. 
 
4.  (C) (Note:  As reported in Ref A, upon his return to 
Sri Lanka, Iraqi Charge Wajdi Mardan Abbas told us on 
June 20, that Ambassador Bremer mentioned plans to close 
32 of the 64 current Iraqi missions.  Abbas did not 
state whether the Iraqi Mission in Sri Lanka was one 
designated for closure, instead he complianed that the 
decision should be an "Iraqi Government" one.) 
 
5. (C) ECONOMIC INTERESTS:  As detailed in the aide 
memoire, Sri Lanka has maintained a long trade 
relationship with Iraq.  Under the the UN's Oil for Food 
program, Sri Lanka continued supplying significant 
quantities of tea to the country.  The GSL is anxious 
that this trade relationship be maintained and feels 
that the presence of an Iraqi Mission in Colombo is 
vital.  The full text of the aide memoire is provided 
below. 
 
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BEGIN TEXT 
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AIDE MEMOIR 
 
Sri Lanka and Iraq have over the years been maintaining 
close and cordial relations.  In fact, Iraq was one of 
the first Arab countries with which Sri Lanka 
established Diplomatic relations.  Diplomatic relations 
with Iraq was established in the late 50s and a Mission 
to Baghdad was established in 1962 with concurrent 
accreditation from Karachi, the then capital of 
Pakistan. 
 
The relations between the two countries were further 
consolidated within the Non-Alignment Movement and the 
Group of 77. 
 
Even after the Gulf war in 1991, Sri Lanka was one of 
the few countries that continued to maintain its Embassy 
at ambassadorial level throughout the critical period 
and thereafter. 
 
Iraq has been a very important trading partner for Sri 
Lanka as tea which is on eof our main export commodities 
has been holding a market share of around 70% in the 
Iraqi market.  The annual average tea export to pre-Gulf 
war, Iraq has been around 30,000 Metric Tons.  (Please 
see Table 1). 
 
After the Gulf war, under the UN Oil For Food Programme, 
we have been exporting around 12,000 Metric Tons offer 
which is about 20% of the Iraqi requirements.  Sri Lanka 
had also in the pre-Gulf war period purchased from time 
to time, oil at concessionary rates.  Besides Tea, 
commodities such as natural rubber, rubber based 
products--particularly tyres-are products that could be 
exported to Iraq.  The trade balance with Iraq has 
continuously been in favour of Sri Lanka except a 4 year 
period immediately after 1991 war.  (Table 2). 
 
As Iraq has traditionally been a main buyer of Sri Lanka 
tea, and as the Iraq consumer has cultivated a taste for 
black orthodox tea from Sri Lanka, it is envisaged that 
Sri Lanka could work towards increasing tea exports to a 
substantial amount. 
The re-construction of Iraq offers a vast potential in 
the area of the construction industry.  Over the last 
decade the number of Sri Lankan expatriates in Iraq was 
marginal.  However, given our expertise in the areas of 
skilled and unskilled labour in the Arab world it is 
envisaged that Sri Lanka could look for opportunities 
for employment for Sri Lankan labour in Iraq once the 
re-construction activities are in place. 
 
Given the Sri Lankan experience in nation building 
amidst a conflict situation, the Sri Lanka Government 
could also enter into collaborative arrangements with 
Iraq on identified projects. 
 
It is therefore important that the Iraqi Mission be 
maintained in Colombo so that links especially in the 
areas of trade and economic cooperation would be 
strengthened for the mutual benefit of the two 
countries. 
 
(Dated July 9, 2003) 
 
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END TEXT 
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6.  (C) ACTION REQUEST:  Mission requests that 
Washington provide a status update as to the Iraqi 
Mission in Sri Lanka.  The GSL is concerned that the 
Mission will be closed, to the detriment of a long- 
standing Sri Lankan trade relationship with Iraq and 
Post would like to be responsive in addressing the GSL's 
request for information.  END REQUEST. 
 
7.  (U) Minimize considered. 
 
CAMP