OFFICIAL INFORMAL NUMBER 96 (06-26-03)

C O N F I D E N T I A L COLOMBO 001121

SIPDIS

OFFICIAL INFORMAL

DEPARTMENT FOR SA/INS

E.O. 12958: DECL: 06-26-13
TAGS: AMGT CE MV
SUBJECT: OFFICIAL INFORMAL NUMBER 96 (06-26-03)

Classified by Donald A. Camp, Charge d'Affaires,
Reasons: 1.5 (b,d)

CONTENTS: MALDIVES' GRADUATION FROM LDC STATUS
- DRAFT PROPOSAL TO TIGERS WITHIN TWO WEEKS
- PRESIDENT KUMARATUNGA IN THE PRESS
- REQUEST RE FMF REAPPORTIONMENT
- MFA UPSET RE CLOSING OF LOCAL IRAQI MISSION

MALDIVES' GRADUATION FROM LDC STATUS
--------------

1. (U) Today we received an advance copy of a
letter(faxed to desk) from Fathulla Jameel, Minister of
Foreign Affairs, to Secretary Powell, seeking US support
for the deferment of the Maldives' graduation from LDC
status at the July ECOSOC meeting. Previously, we
supported the Maldives maintaining LDC status, and it
required considerable coordination in WDC. Please raise
this issue with the relevant offices (EB, IO) and some
potential supporters (S.Donnelly and AmbDes.Lunsted) to
begin formulating the US position. This is a key issue
for the Maldives, a firm friend that asks little of the
US. Charge' Camp hopes to visit July 13 and this will
surely be a prime topic on their agenda. (ECON)

DRAFT PROPOSAL TO TIGERS WITHIN TWO WEEKS
--------------

2. (C) News reports are giving wide play to a comment by
key government advisor G.L. Peiris during his June 26
weekly press briefing re a draft proposal for an interim
administration. Peiris is reported to have said that the
GSL would be submitting to the Tigers a draft interim
administration proposal for the north and east within two
weeks. These comments are not unexpected, just the
latest in ongoing attempts by the GSL to woo the Tigers
into resuming talks. Further, during Charge's June 26
meeting with Ports Minister and leader of the Sri Lanka
Muslim Congress, Rauf Hakeem, we learned that Hakeem
expected to be briefed by Peiris that evening on the
GSL's draft proposal. (POL)

PRESIDENT KUMARATUNGA IN THE PRESS
--------------

3. (C) There was ample press speculation here June 26
that President Kumaratunga might be plotting a takeover
of the Defense and Interior Ministries. During a follow
up call with her spokesman, he assured us that Her
Excellency has no plans to annex those two key
ministries. He added that the president remains
concerned over the status of military readiness and the
state of law and order in the island. This lack of
takeover intent on the part of the president was seconded
today when the Opposition Leader Mahinda Rajapakse met
with Charge today (June 26). Rajapakse confirmed that
fellow politicians in the president's party were making
noise re this issue, but that the president did not
intend to make any ministerial move without public
support. It is noteworthy, however, that Kumaratunga
waited until the PM was out of the country to have her
spokesman hold a press conference. (POL)

REQUEST RE FMF REAPPORTIONMENT
--------------

4. (C) Ref Colombo 1063 re $5 million USD of Foreign
Military Funding allocated to India, Post wishes to
reiterate its interest in seeing if this could be
reallocated to Sri Lanka, if spurned by GOI. Could you
please provide us with some kind of update re this issue?
Thanks. (POL)

MFA UPSET RE CLOSING OF LOCAL IRAQI MISSION
--------------

5. (C) Foreign Secretary Nihal Rodrigo called the Charge
today (June 26) to express his concern over the planned
closing of the Iraqi mission in town, per the decision of
the Coalition Provisional Authority in Baghdad. His
concern stemmed from the trade relationship -- export of
significant quantities of Sri Lankan tea -- between the
two countries. While Rodrigo is going to send a formal
note, could Washington provide us with some insight re
the rationale for closing the Iraqi mission here (and in
some 30 other countries) to pass on to him? (POL)

CAMP