OFFICIAL INFORMAL NUMBER 008 (01/21/04)

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 000107 SIPDIS OFFICIAL INFORMAL FOR SA/INS E.O. 12958: DECL: 01/21/14 TAGS: AMGT CE MV SUBJECT: OFFICIAL INFORMAL NUMBER 008 (01/21/04) Classified by Ambassador Jeffrey J. Lunstead for reasons 1.5 b and d. CONTENTS: ISRAELI AMBASSADOR COMES CALLING AMBASSADOR'S CHAT WITH MORAGODA HUMAN RIGHTS/DEMOCRACY FUNDING FOR MALDIVES? PLANS FOR NATIONAL DAY IN MALE' TWO MORE CHURCH ATTACKS ISRAELI AMBASSADOR COMES CALLING -------------- ¶1. (C) Israeli Ambassador David Danieli (based in New Delhi),in town to present credentials to CBK, called on the Ambassador January 21. Danieli was accompanied by Mordehai Amihai, Director of the Israeli Foreign Ministry South and Southeast Asia Department. DCM sat in. Danieli noted that Israel has previously covered from Bangkok; the shift to Delhi had just taken place with his arrival six months ago. He noted as well that this is the third time Israel and Sri Lanka have had relations. Relations were first established in 1958 but cut by the GSL in 1970. Started up again in 1984 but then the plug was pulled again by Premadasa. Danieli said his government is very happy with the relationship. SL embassy in Tel Aviv has just added a commercial attache amid hopes that commercial ties will grow (two-way trade in 2002 was $75 million, mostly in gems). GSL Commerce Minister Ravi K and others have been to Tel Aviv; Danieli trying to arrange for "one of our economics ministers" to come to Colombo sometime in the next year. According to Danieli, Israeli population here totals fewer than half a dozen. Danieli said he had had a useful session with Foreign Ministry Secretary Bernard Goonitileke who, Danieli said, had pledged that he would order a review of GSL voting on Israeli issues in international fora. (The GSL was recently helpful on the Israeli credentials issue at the UN). Danieli also met with FM Fernando who pushed his own UNSYG candidacy; Danieli said he will try to get Fernando to Tel Aviv as well. We shared our views on the local situation. (DCM) AMBASSADOR'S CHAT WITH MORAGODA -------------- ¶2. (C) Ambassador met Jan. 21 with Minister Milinda Moragoda. Here are some key snippets: -- Moragoda is planning to go to India later this week, with instructions from the PM to "show flexibility" when the Indians pressure the GSL for a swift resolution to the cohabitation crisis. He is slated to meet National Security Adviser Mishra and Indian External Affairs Minister Sinha during the visit. Sinha applied heavy pressure to the President at the recent SAARC summit in Islamabad, Moragoda said. -- The President is showing some interest in an Indian proposal, centered on giving the PM control over "north/east theater military commands," as a way to resolve the impasse over the Defense Ministry. The PM does not like that idea much, as we have reported. That said, when the joint President/PM committee meets, the PM has asked his representative (Malik Samarawickrama) to "try to give the President some comfort" on other issues and not focus on the Defense Ministry matter. (Note: Moragoda thought the joint committee would be meeting today, but we have heard it may not. It was supposed to meet yesterday, as we mentioned to you in our o/i, but the meeting was postponed.) -- Asked about the GSL Defense Ministry team sent to New Delhi last week to discuss defense cooperation, Moragoda said the GSL never received a briefing of what transpired from the President's side. Moragoda said the Indian High Commission briefed him, however. -- FYI: Moragoda did not seem too worried over the SLFP/JVP alliance (see his comments in our front-channel today). -- On economic matters, Moragoda said the GSL is concerned about the recent IMF visit which apparently raised serious concerns about revenue projections. Drought and consequent electricity shortages, increasing commodity prices (petroleum, fertilizer, etc),and currency depreciation will likely cause the government to wobble in the face of pressure for increased subsidies. Moragoda thought the best strategy for dealing with the problem was to "come clean" with the IMF in order to remain credible. Moragoda's argument is that the IMF will be more willing to work with the GSL if the government admits up front to not hitting its fiscal targets. Moragoda added that the PM had not agreed to this idea as of yet. We are reviewing the issues Moragoda raised with a skeptical eye toward the need for increased subsidies. We have a meeting scheduled with the IMF in the morning to discuss the visit further. (POL/ECON) HUMAN RIGHTS/DEMOCRACY FUNDING FOR MALDIVES? -------------- ¶3. (SBU) In discussing ways to increase our human rights and democracy programming in the Maldives given recent events there and as we develop MPP plans, our "Maldives team" here at the Mission discussed the possibility of using ESF funds there today. Given that AID does not have a presence in the Maldives, however, we wonder if we could contract the money through them, as we do for SL programs. Is there another way for Mission to contract directly to do democracy-building projects in the Maldives? We also understand that DRL has some contracting authority, and intend to discuss the matter with DRL officer Saba Ghori during her visit to Colombo next week. We have a "rule of law" project being implemented with the Maldives now by PAO and we are also interested in using PD funding on other projects if we can. Any information you could glean for us on this matter would be extremely helpful. With the startup of the GoRM's human rights commission and other tentative steps toward democratization being considered there, we think the USG should be "present at the creation," if at all possible. Thanks. (POL) PLANS FOR NATIONAL DAY IN MALE' -------------- ¶4. (SBU) We are mulling over plans to host our national day celebration in the Maldives during the March timeframe, as hosting both receptions (in Colombo and in Male') in July is problematic (in the past, we have had a "Presidents' Day" reception in Male' in February, for example). Seeing that Jim Waller has never been to the Maldives (if we recall correctly),we wonder if he would be interested in attending this key function and participating in meetings with the GoRM around that timeframe. There is also plenty of things to do here in Sri Lanka given the ongoing cohabitation impasse, the SLFP/JVP pact, the planned Provincial Council elections slated for early April, etc. Please give it a thought. (POL) TWO MORE CHURCH ATTACKS -------------- ¶5. (SBU) FYI. In towns just to the east of Colombo, two Catholic churches were attacked in the past week. There were no injuries in either the January 15 or January 18 attacks, but church property was damaged in both incidents. Police are investigating the attacks, but have not been able to make any arrests (which is a consistent theme in these church attacks). (POL) LUNSTEAD