Mission requests status of Iraqi Mission in

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