C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 001085

SIPDIS

DEPARTMENT FOR SA, SA/INS, S/CT, EUR/NB

NSC FOR E. MILLARD

E.O. 12958: DECL: 06-20-13
TAGS: PGOV PTER PINS CE NO JA LTTE
SUBJECT: Sri Lankan PM gives conciliatory speech re
peace process, but Tamil Tigers ask for more

Refs: Colombo 1078, and previous

(U) Classified by Joseph L. Novak, Charge d'Affaires.
Reasons: 1.5 (b,d).


1. (C) SUMMARY: In a June 19 speech, PM Wickremesinghe
urged the Tigers to return to the peace talks,
underlining the GSL's willingness to move toward forming
an interim administrative structure in the north/east.
In a nearly immediate reaction, the Tigers said they
wanted to see more details before making any commitments
re the talks. Given recent tensions, the current give-
and-take between the two sides is a net positive. END
SUMMARY.


2. (SBU) PM'S SPEECH: Prime Minister Ranil
Wickremesinghe gave a pre-recorded speech on national TV
the evening of June 19 dealing with the peace process.
The speech was given in Sinhala, the language of Sri
Lanka's majority community, with Tamil-language
subtitles. In the approximately 20-minute address, the
PM, who rarely gives TV speeches, began by providing a
briefing on the recent Tokyo donors conference,
emphasizing the international community's support for
the peace track. (Note: An unofficial text of the PM's
speech has been e-mailed to SA/INS.) The prime minister
stressed that the government was in difficult financial
circumstances, a situation which would be vastly
improved via the international assistance pledged at
Tokyo. (Note: In making this point, the PM was
brushing aside criticism from some in the Opposition
that Sri Lanka would become more indebted due to Tokyo,
not less -- See Reftels.)


3. (SBU) REACHING OUT TO THE TIGERS: Turning to the
current stalemate in the peace process, the PM was
conciliatory toward the Liberation Tigers of Tamil Eelam
(LTTE). Re the LTTE's recent reiteration of its long-
standing demand for the formation of an interim
structure in the north/east, the prime minister
underscored that his government was committed to
reaching an understanding on this issue. In this
regard, the PM stated: "We

plan to establish an interim
council with the agreement of the LTTE that will
safeguard the rights of all communities. We are
committed to talking with the LTTE to come up with a
practical solution to draw up this mechanism."


4. (SBU) Touching again on Tokyo and making a gesture
to the Tamil community, Wickremesinghe went on to make
clear that a major focus of international assistance
would be rehabilitation and reconstruction in the war-
torn north and east. Regarding these development
efforts, the PM said the GSL was committed to ensuring
LTTE involvement. On this point, he stated: "The LTTE
will be involved in the implementation of development
work in the north and east. We expect them to act with
responsibility in this regard." Essentially conceding
that the LTTE complaints in this area were largely
accurate, the PM said the government had to vastly
improve its record on assistance delivery, which he said
was poor.


5. (SBU) CALLING FOR A RETURN TO TALKS: The PM said he
deeply regretted the Tigers' decision not to attend the
Tokyo conference. Underscoring this theme of the need
for Tiger re-engagement in the process, the PM urged the
group to return to the peace talks, so that issues could
be worked out face-to-face and not through indirect
communications. (Note: Citing various complaints, the
LTTE pulled out of the peace talks in late April -- See
Reftels.)


6. (SBU) LTTE REACTS IMMEDIATELY: The Tigers did not
wait long before responding to the speech. In remarks
posted on the pro-LTTE website "TamilNet" late June 19,
chief Tiger spokesman Anton Balasingham was cited as
saying that his group wanted more details re the
government's offer. TamilNet quoted Balasingham as
stating:

"He (the prime minister) has only repeated the
statements he made at the Tokyo donors conference. This
statement of intent, as we have already stated, cannot
be the basis for negotiations...Operating within the
confines of an entrenched constitution and facing a
hostile president, Ranil's administration is resistant
to offer anything substantial in the form of an interim
administration..."

Balasingham, indicating that the peace track's agenda
needed to rethought, wrapped up by stating that the LTTE
would discuss the matter further with the Norwegian
government facilitators. (Note: After a short hiatus
in contacts, Norwegian and LTTE representatives met on
June 18 -- See Reftels.)


7. (C) OTHER REACTION: Queried about the PM's speech,
Joseph Pararajahsingham, a pro-LTTE MP for the Tamil
National Alliance, basically echoed Balasingham's line.
Pararajahsingham said the prime minister and his
government had to offer more "detailed" and "concrete"
information to the LTTE re its interim council proposal.
In Pararajahsingham's eyes, the PM's comments were
simply "too vague." Poloff also called the president's
office, which said President Kumaratunga had not as of
yet had any official reaction.


8. (C) COMMENT: Given recent tensions, which included
the sinking of a LTTE ship on June 14 in a confrontation
with the navy, the current give-and-take between the GSL
and the LTTE is a net positive. This, in addition to
the June 18 meeting between the LTTE and the Norwegians,
provides some hope that the process may be headed into a
less rocky period. That said, it is still too early to
tell which direction events are headed, especially given
continued LTTE anger over the ship incident. END
COMMENT.


9. (U) Minimize considered.

NOVAK