SRI LANKA NAVY SINKS LTTE SHIP; MOST OBSERVERS

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 000410

SIPDIS

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

LONDON FOR POL/RIEDEL

E.O. 12958: DECL: 3-11-13
TAGS: PTER PHUM PREL MOPS CE LTTE
SUBJECT: SRI LANKA NAVY SINKS LTTE SHIP; MOST OBSERVERS
THINK PEACE TALKS WILL CONTINUE

Ref: (A) Colombo 397
- (B) Reston VA DTG 100659Z
- (C) Reston VA DTG 102358Z

(U) Classified by Lewis Amselem, Deputy Chief of
Mission. Reasons 1.5 (b,d)


1. (C) Summary: After a reported exchange of fire on
March 10, the Sri Lanka Navy sunk a cargo ship, that the
Liberation Tigers of Tamil Eelam (LTTE) claimed was one
of its merchant ships. While the monitoring mission
investigates the incident, the Norwegian Embassy and
others have expressed concerns about the effect of the
incident on the peace talks. Despite the concerns, most
observers believe that talks will continue. End Summary

Conflicting GSL and LTTE reports on incident
============================================


2. (C) According to Sri Lanka Navy reports (detailed in
Ref A),the navy intercepted a LTTE arms supply ship
approximately 180 nautical miles (207 miles) off the
coast of Mullativu (on the north eastern coast of Sri
Lanka). The navy then reports that after it ordered the
ship to stop, the cargo ship's crewmembers opened fire.
In defending itself, the naval ship returned fire and
sunk the LTTE vessel.


3. (SBU) The "TamilNet" website, believed to be
controlled by the LTTE, reports that the Sri Lanka Navy
attacked a LTTE merchant vessel 220 nautical miles
(about 250 miles) off the eastern coast. It also
reports that LTTE political wing leader Thamilchelvan
sent a letter to the Minister of Defense condemning the
sinking of the ship. The report added that
Thamilchelvan stated that the "grave incident will have
far reaching implications for the peace process." The
LTTE accuses the Sri Lanka Navy of being involved in
several deliberate and provocative attacks against the
LTTE in violation of the ceasefire agreement.

SLMM and others express concern
===============================


4. (C) When questioned, the Norwegian led Sri Lanka
Monitoring Mission (SLMM) spokesman Teitur Torkelson
commented that the SLMM was still investigating the
incident and does not expect to make a public statement
until March 13. A concern that the SLMM has is that
initial navy reports place the incident approximately
240 nautical miles (276 miles) off the coast and in
international waters, while the navy's final written
report places the incident at approximately 180 nautical
miles off the coast. The shortened distance puts the
incident within the area that Sri Lanka claims as its
exclusive economic zone. Torkelson added that even if
the incident took place in international waters the navy
had certain rights in regards to "hot pursuit" or
"defense" type issues that had to be reviewed. One of
the SLMM tasks is to try to determine the precise
location of the incident.


5. (C) Tomas Stangeland, political officer at the
Norwegian Embassy, expressed concern about the
repercussions the incident may have on the next round of
talks. He stated that although the Norwegians have not
heard anything from the LTTE as of yet, he expects the
LTTE will contact them with comments after the SLMM
releases its report. Stangeland believes that the
incident will lead to some recriminations by the LTTE
against the GSL, but that the sixth round of talks will
proceed.


6. (C) Other observers seem to be of the consensus that,
although the incident increases tensions, both sides are
still committed to the peace process. For example
Joseph Pararajasingham, a senior Tamil United Liberation
Front (TULF) MP, commented to the DCM that sinking of
the ship does increase tensions, but the LTTE is
concerned with its image in the international community
and wants to be seen as being fully committed to the
peace process. Therefore, the LTTE will continue with
the talks until forced to defend itself. Another TULF
MP V. Anandasangaree told Poloff that incidents such as
these decrease the confidence that both sides have in
one another. He concluded, however, that despite the
increased mistrust both sides are benefiting from the
ceasefire and are thus committed to the peace talks.
Jehan Perera, of the National Peace Council, a well-
respected local NGO, also believes that the talks will
continue. He is concerned, though, that if the series
of recent incidents continue they will eventually take
their toll on the negotiations.
Comment
=======

7. (C) The sinking of the LTTE ship by the GSL has
clearly raised tensions between the two sides. Adding
to the tensions are some unconfirmed reports that the
President ordered the navy to sink the LTTE ship -- the
navy is denying the report. How the negotiators will
deal with these tensions in the next round of talks
remains to be seen. The only positive outcome is the
general consensus that the talks will continue. On a
separate note, one unusual aspect of the most recent
incident is the relatively muted response in the Tamil
community. After other recent incidents the LTTE
responded immediately and vociferously with protests,
hartals (boycotts),and multiple complaints to and about
the government. This time Thamilchelvan's letter
appears to be the principal response, for now. End
Comment.


8. (U) Minimize considered.

WILLS