C O N F I D E N T I A L SECTION 01 OF 03 COLOMBO 001290

SIPDIS

DEPARTMENT FOR SA, SA/INS, S/CT; NSC FOR E. MILLARD

E.O. 12958: DECL: 07-24-13
TAGS: PGOV PTER PINS PHUM CE NO LTTE
SUBJECT: Peace Process Update: Discussion of latest GSL
proposal re north/east intensifies; Tigers stir the pot

Refs: (A) FBIS Reston Va DTG 230531Z Jul 03

- (B) FBIS Reston Va DTG 230518Z Jul 03
- (C) FBIS Reston Va DTG 220532Z Jul 03
- (D) Colombo 1284, and previous

(U) Classified by James F. Entwistle, Charge d'Affaires.
Reasons 1.5 (b,d).


1. (C) This update of Sri Lanka's peace process reviews
the following:

>> Norwegian envoy discusses government's latest
proposal re north/east with Tamil Tigers

>> Tigers ramp up agitation campaign in the north/east

>> Defying international monitors, Tigers refuse to
vacate military camp

>> The 20th anniversary of Colombo's deadly anti-Tamil
riots passes peacefully

>> Flavor of the Peace Process: GSL Customs seizes
Tiger propaganda materials, but looks set to release
them

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Norwegians review GSL proposal with Tigers
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2. (C) Discussion of the latest Sri Lankan government
proposal on forming an interim administration in the
north/east is intensifying. (Note: See Ref D for
details of the proposal.) In response to a request from
the Liberation Tigers of Tamil Eelam (LTTE), Norwegian
Special Envoy Jon Westborg, who delivered the proposal
to the Tigers on July 17, traveled to the LTTE-
controlled town of Kilinochchi in northern Sri Lanka on
July 22. While there, Westborg -- in a meeting with
LTTE political chief S.P. Thamilchelvan -- answered
several specific questions about the proposal. In
public, Westborg described the meeting as "very
positive." In private, he was even more effusive,
telling Indian High Commissioner Nirupam Sen that
Thamilchelvan's initial reaction to the proposal was
"quite encouraging."


3. (C) COMMENT: The LTTE probably will need several
more weeks to review the proposal before formulating a
final response. At this point, the group's reaction
seems relatively constructive. Th

e government, in the
meantime, has to keep an eye out for reaction in the
south. President Kumaratunga and her party, which share
a tense cohabitation relationship with the GSL, are
hinting that they oppose the proposal, for example.
Moreover, some Muslims from the east, worried about LTTE
influence in that ethnically mixed region, have already
spoken out against it. END COMMENT.

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Tigers stir the pot in the north/east
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4. (C) While their reaction to the latest peace
proposal has been relatively positive, the Tigers
continue to ramp up tensions on the ground in the
north/east. Two recent incidents highlight the group's
latest agitation campaign. In the first, a clearly
marked vehicle belonging to the Norwegian-run Sri Lanka
Monitoring Mission (SLMM) was pelted with rocks on
July 21 as it traveled near Batticaloa in the east. No
one was injured in the incident, which was almost
certainly perpetrated by pro-LTTE Tamils. In the second
incident, GSL Minister of Rehabilitation J. Jayawardena
was prevented from attending a European Union-sponsored
ceremony held in Jaffna. An unruly mob consisting of
students and suspected LTTE cadres jostled Jayawardena,
forcing him to flee the scene.


5. (C) COMMENT: As is a ritual with the group, the
Tigers deny any involvement in any sort of intimidation,
though the incidents described above bear all the
hallmarks of LTTE tactics (use of crowds that melt away,
etc.). It is not clear why the Tigers appear to be
turning up the heat in the north/east at this time. The
group has made clear that it is angry over the recent
arrest of several of its cadre by government security
forces, however. (Note: The government says the cadre
were illegally carrying weapons.) The fact that a SLMM
vehicle was attacked is also very bad news. This is the
first time the monitors have been involved in such an
incident. (Note: The incident may be linked to the
worsening LTTE-SLMM relationship described below.) END
COMMENT.
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LTTE defies Monitors on Camp
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6. (SBU) A LTTE-constructed camp near Trincomalee in
the east continues to be the subject of controversy. In
comments made to the press on July 23, SLMM Deputy Chief
Hagrup Haukland lashed out at the Tigers, stating that
the LTTE must remove the so-called "Wan Ela" camp.
(Note: After a recent land survey, the SLMM determined
that the camp encroaches on government-controlled
territory -- see Ref D for additional background.)
Haukland, who had also hit out hard against the LTTE on
this matter last week, underscored that the group must
comply with SLMM rulings, per its acceptance of the
February 2002 ceasefire accord. For their part, the
Tigers have refused to vacate the camp, asserting that
it is located in a zone controlled by its forces.


7. (C) COMMENT: The monitors are clearly growing more
exasperated with the LTTE day-by-day. The SLMM
undoubtedly feels insulted that it is not being listened
to, hence Haukland's increasingly shrill comments to the
press. Mission has spoken to SLMM representatives, and
they say that they are trying to manage the controversy
and make sure that it does not lead to a complete
breakdown in ceasefire monitoring. The solution to the
problem seems simple; the LTTE should withdraw. It is
not yet clear, how far the Tigers want to press this
matter, however. Up to now, LTTE has by and large tried
to maintain fairly good relations with the monitors.
END COMMENT.

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Quiet Anniversary of Deadly Riots
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8. (SBU) The 20th anniversary of the July 1983 riots in
Colombo passed peacefully in Sri Lanka. The riots --
which started on July 23, 1983 and lasted several days
-- led to the deaths of hundreds of Tamils, with
thousands driven from their homes. The local press ran
some stories on the riots, but there was no official
government ceremony. The one incident that seemed to be
linked to the anniversary was an attempt by some Tamils
to put up a statue of a deceased LTTE fighter in Jaffna
on July 23. The pro-LTTE group was interrupted by
government security forces and fled the scene with the
statue. No one was injured in the incident. (Note: The
statue was of Charles Anthony, a LTTE squadron leader,
who was killed during the July 1983 attack on government
forces that triggered the Colombo riots. Anthony was a
close associate of LTTE leader V. Prabhakaran.)


9. (SBU) COMMENT: Most observers date the 1983 riots
as the start of the ethnic conflict. Certainly, there
is little doubt that the riots divided the Sinhalese-
Tamil communities in a very profound way. The GSL has
made some effort to come to terms with the killing of so
many of its citizens; President Kumaratunga, for
example, ordered a commission to examine what happened
and put together a report. The sad fact, however, is
that no one has ever been charged for the mayhem that
took place. As for the LTTE, the group has used the
event as an effective recruiting tool with Tamils. It
has also on occasion launched deadly attacks, such as
that on Colombo's airport in July 2001, to "commemorate"
what took place. END COMMENT.

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The Case of the LTTE's Propaganda Materials
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10. (C) In our flavor of the peace process section:
Sri Lankan customs officials working at Colombo port
recently seized two shipping containers headed for the
LTTE-controlled Wanni region. In taking the action, the
customs officials asserted that the containers -- with
contents listed as "stationery" -- included LTTE flags,
key chains, LTTE magazines, and stickers. Of special
note, were maps depicting areas of the north and east as
a separate LTTE-controlled entity ("Eelam"). It is not
clear where the containers were shipped from and in
whose name, but they are believed to have been ordered
by the LTTE's propaganda department. The latest word is
that customs plans to release the material because --
under the terms of the ceasefire accord -- the GSL has
no grounds to hold them as contraband.


11. (SBU) COMMENT: Before the advent of the peace
process in December 2001, the type of materials seized
at the port would have been immediately destroyed by the
GSL. Now, with the peace track months old, the
transshipment of such "propaganda" items is a relatively
ho-hum affair. (Note: Some groups skeptical of the
peace process complained about the materials, but did
not gain much traction and clammed up.) In general, as
far as the GSL is concerned, materials of a non-warlike
nature can be provided to the LTTE, including those that
are basically political in nature. (Note: That said,
there are clearly lines that cannot be crossed: earlier
this month, the government complained that LTTE cadre
were showing videos of past war exploits to potential
recruits in the east. The SLMM agreed with the
government that this type of LTTE activity was
provocative and inappropriate.) END COMMENT.


12. (U) Minimized considered.

ENTWISTLE