Identifier
Created
Classification
Origin
03COLOMBO1674
2003-09-26 05:57:00
CONFIDENTIAL
Embassy Colombo
Cable title:  

During visit by U.S. team, southern Maldives

Tags:  PGOV PREL ECON SOCI MV ECONOMICS 
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C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 001674 

SIPDIS

DEPARTMENT FOR SA, SA/INS

E.O. 12958: DECL: 09-26-13
TAGS: PGOV PREL ECON SOCI MV ECONOMICS
SUBJECT: During visit by U.S. team, southern Maldives
quiet on political front, focused on development issues

Refs: Colombo 1665, and previous

(U) Classified by James F. Entwistle, Deputy Chief of
Mission. Reasons 1.5 (b, d).

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 001674

SIPDIS

DEPARTMENT FOR SA, SA/INS

E.O. 12958: DECL: 09-26-13
TAGS: PGOV PREL ECON SOCI MALDIVES'>MV ECONOMICS
SUBJECT: During visit by U.S. team, southern MALDIVES
quiet on political front, focused on development issues

Refs: Colombo 1665, and previous

(U) Classified by James F. Entwistle, Deputy Chief of
Mission. Reasons 1.5 (b, d).


1. (C) SUMMARY: A U.S. team visited the southern
Maldivian island of Gan on September 23. With roughly a
fifth of the population of the MALDIVES, the southern
region was placid politically, showing little tension in
the wake of the recent riots that rocked the capital of
Male'. In discussions, locals were focused on
development activities, including upgrading the local
airport so that it could support international tourism.
The team also visited a garment factory making goods for
U.S. companies. While remote and less affluent than
Male', the southern region seems poised to take a more
central role in Maldivian affairs. END SUMMARY.


2. (SBU) VISIT TO GAN: Polchief, poloff and Pol FSN
visited the southern Maldivian island of Gan on
September 23. Gan, the southernmost point in the
Maldivian chain, is located just south of the Equator,
about 400 miles due north of Diego Garcia and the Chagos
Archipelago. Gan is also the central island in the
south, a region which has a population of roughly 60,000
people (just over a fifth of the MALDIVES' total
population of 270,000). The region comprises the atolls
of Addu (where Gan is located),Gnaviyani, and Northern
and Southern Huvadhoo. The islands comprising these
atolls are some of the largest, in terms of surface
area, in the MALDIVES, but still very small (Gan's size
is only about 2.5 square miles).


3. (U) The area is quite scenic. While the Indian
Ocean pounded the edges of the island's palm-fringed
shore, the residents conducted their business in modern-
looking shops along well-kept sandy streets. Houses
were constructed of concrete and surrounded by mason
block walls. In general, residents of the region seemed
to be somewhat less well off compared to those living in
Male', the Maldivian capital. That said, many homes had
satellite dishes and, as with the rest of the MALDIVES,

there was little overt sign of poverty.


4. (C) ALL QUIET ON THE POLITICAL FRONT: The southern
region was placid politically, showing little tension in
the wake of the riots that rocked Male' on September 20
(see Reftels). Mr. Hamid Yoosuf, the Addu Atoll Chief
(effectively the local governor),and Mr. Ahmed Zilal,
the Deputy Atoll Chief and a relative of President
Gayoom, told the team that there had been no unrest in
the southern region sparked by what had happened in the
capital. Hewing closely to the government's line, both
officials underscored that they considered the riots to
have been perpetrated by "drug users" and other
"criminals," and to have nothing to do with politics or
anti-President Gayoom sentiment. In a meeting with the
U.S. team, none of the local residents present brought
up the riots, preferring to talk about infrastructure
projects (see below). Local residents did predict,
however, that President Gayoom would come out on top in
the ongoing Maldivian presidential selection process
(see Reftels).


5. (U) DEVELOPING THE SOUTH: In discussions, locals
were generally focused on infrastructure improvements.
One of the major projects currently being implemented
involves upgrades to the Gan airport so that it can
support tourism. The airport, which had been built by
the British and served as a RAF base until 1976,
currently has a runway long enough to accommodate large
jet aircraft. The airport, however, does not have the
ability to service big planes, and the government has
contracted an Irish company to provide protective
hangars and modern fuel stations, etc. In addition, the
government is exploring the possibility of establishing
a flight school. The government hopes to use the
upgraded airport to bring international tourists
directly to the southern region, thus avoiding Male's
international airport, which is located far to the
north. As part of this strategy, the GoRM has plans to
develop tourist resorts in the region (there were none
in the south at this time) to add to the roughly 90 such
resorts located further to the north. The major hotel
chain Shangri-La is planning to open a large resort in
2004 near Gan I sland.


6. (U) Another important infrastructure project had
recently been completed -- and had already become the
pride of the whole MALDIVES. This was Addu Atoll's
"link" road, by far the longest road in the MALDIVES.
Designed to improve communication and facilitate travel
between Gan and the three other islands it connects, the
modern ribbon of asphalt was 12 kilometers long and had
been ceremonially opened up by President Gayoom in July.
(We understand there have already been several "high
speed" accidents on the route.)


7. (SBU) VISIT TO GARMENT FACTORY: The team also
visited a garment factory located adjacent to Gan
airport. The factory, one of four such facilities
located in the area, is run by a Sri Lankan company, MAS
Holdings, and makes products under license to Sara Lee
Courtaulds, a U.S. company. Over 2,000 Sri Lankan women
work at the sprawling factories. Based on the team's
brief visit, the working and living conditions appeared
good. The team was informed that there were regular
visits by the U.S. licensor to check on the workers'
situation. According to the managers, the factories are
profitable and the company maintains a very good
relationship with the Maldivian government. They added,
however, that the future of the factory was in doubt and
the factories might close given the elimination of
garment quotas in 2005 under the WTO's Multi-Fiber
Agreement. The local Maldivian officials the team met
with were unsure how the GoRM would recoup lost revenue
if the factories indeed did shut down.


8. (C) COMMENT: While remote and less affluent than
Male', the southern region seems poised to take a more
central role in Maldivian affairs. Already, there are a
fair number of southerners serving in high-level
government circles in Male'. Southerners also have a
reputation as being thrifty and good at business, with
many now working in the country's tourism sector. That
said, since Maldivian independence in 1965, the northern
atolls where Male' is located have benefited more from
government largesse than the south. With the
infrastructure projects now being implemented by the
government, however, the south appears set to catch up
to some extent. Such spreading out of opportunity to
other regions is a potentially positive development in
the MALDIVES given what many observers consider the top-
heavy, authoritarian nature of government authority
emanating from Male'. END COMMENT.


9. (U) Minimize considered.

LUNSTEAD