Identifier
Created
Classification
Origin
03COLOMBO1240
2003-07-15 11:36:00
CONFIDENTIAL
Embassy Colombo
Cable title:  

In Charge's visit, Maldivians again press for

Tags:  PREL PGOV ECON ETRD MV 
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C O N F I D E N T I A L COLOMBO 001240 

SIPDIS

DEPARTMENT FOR SA, EB, IO; NSC FOR E. MILLARD

E.O. 12958: DECL: 07-15-13
TAGS: PREL PGOV ECON ETRD MV
SUBJECT: In Charge's visit, Maldivians again press for
retention of Lesser Developed Country (LDC) status

Ref: Colombo 1197

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

C O N F I D E N T I A L COLOMBO 001240

SIPDIS

DEPARTMENT FOR SA, EB, IO; NSC FOR E. MILLARD

E.O. 12958: DECL: 07-15-13
TAGS: PREL PGOV ECON ETRD MV
SUBJECT: In Charge's visit, Maldivians again press for
retention of Lesser Developed Country (LDC) status

Ref: Colombo 1197

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


1. (C) SUMMARY: During Charge's July 13 meetings in
Male, GoRM officials made another pitch that the
Maldives' not be graduated from LDC status. Some
concern was expressed about radical Islam gaining a
beachhead in the island nation, a problem which would be
heightened by an economic downturn. Embassy recommends
that Washington support the Maldivian request for
deferral of the LDC decision. END SUMMARY.


2. (SBU) VISIT TO MALE: Charge and poloff visited the
Maldives, July 13. The U.S. team met with Foreign
Minister Fathulla Jameel, Deputy Foreign Minister
Hussain Shihab, Foreign Secretary Dr. Ahmed Shaheed, and
Deputy Minister of Home Affairs Abdul Azeez Yoosuf. The
team also met with Indian High Commissioner S. Gavai.


3. (SBU) PRESSING TO RETAIN LDC STATUS: During
separate meetings, FM Jameel and DFM Shihab both
reiterated previous GoRM requests that the USG oppose
the withdrawal of LDC status for the Maldives (see
Reftel). They stressed that the withdrawal of such
status for the Maldives could harm its economy in a
serious way. (Note: This issue is slated to be
reviewed in Geneva at the 2003 Substantive Session of
the Economic and Social Council later this month. In
previous UN reviews, the Maldives has only narrowly
avoided losing its LDC status.)


4. (SBU) Explaining the GoRM's position, Jameel stated
that the Maldivian economy is a "vulnerable" one,
reliant on the vagaries of international tourism and
fragile fisheries industries. The economy depended on
trade concessions available under LDC status, he said.
He added that losing LDC status would make the country
ineligible for concessional lending from the major
development banks. This loss would be especially severe
given the Maldives' unusual infrastructure needs --
building breakwaters around inhabited islands against
tidal surges and reclaiming lagoons to increase land
mass near Male. Both interlocutors wanted the UN to
conduct an independent study of the economic damage that
would result from the Maldives' loss of LDC status
before taking any hasty steps to withdraw that status.
Shihab further argued that graduation criteria continued
to evolve and the UN should examine the effect of
graduation on "Small Island Group" economies. Charge
told Jameel and Shihab that he would share their
comments with Washington, as the U.S. was carefully
studying the issue.


5. (C) CONCERN OVER RADICAL ISLAM: In additional but
related remarks regarding the local political situation,
Shihab and Shaheed spoke frankly about what they
considered to be a growing problem with radical Islam in
the Maldives. In their opinion, one source of the
problem was Maldivian students returning from abroad; in
particular, those receiving their education in Saudi
Arabia. Shaheed stated the GoRM took efforts to ensure
that students attended legitimate schools abroad, but
said some students subverted the system and attended
radical religious schools. Indian High Commissioner
Gavai told Charge that white collar jobs were in short
supply for the increasing numbers of educated
Maldivians. This was creating an environment where
radicalism could possibly grow. An economic downturn of
the kind the GoRM predicts in the wake of LDC graduation
would only exacerbate this threat of Islamic extremism.


6. (C) COMMENT: This visit only reinforced Mission's
recommendation that we should defer, at least beyond
July, Maldives' graduation from LDC status. Too much is
at risk in this small economically and politically
vulnerable nation. END COMMENT.

CAMP