OFFICIAL INFORMAL NUMBER 017 (02/05/04)

C O N F I D E N T I A L COLOMBO 000200 SIPDIS OFFICIAL INFORMAL FOR SA/INS E.O. 12958: DECL: 02/05/14 TAGS: AMGT CE MV SUBJECT: OFFICIAL INFORMAL NUMBER 017 (02/05/04) Classified by Ambassador Jeffrey J. Lunstead for reasons 1.5 (b) and (d). CONTENTS: MCA Questions READOUT FROM A/S ROCCA - HARIM PEIRIS RE A.Q. KHAN A MORE MILITARIZED NATIONAL DAY PARADE MCA Questions -------------- ¶1. (SBU) We noted with great interest the press guidance from the Department on the Millenium Challenge Corporation and timeline for implementing the Millenium Challenge Account. Knowing that Sri Lanka figures high on the notional list of recipients, however, gives us pause when we think about the timeframe and the funding levels that have been discussed. Is there any guidance either ready, or being prepared, on when proposals and justifications will need to be sent and how the funding mechanism will work? While we know the MCC is just getting set up, we thought some basics might have been worked up ahead of time. Appreciate any thoughts you can send our way. (ECON) READOUT FROM ROCCA - PEIRIS MEETING -------------- ¶2. (C) Just want to check how the A/S Rocca-Harim Peiris meeting went. Any readout? We saw Tokyo's readout of the D/Akashi meeting. By the way, has the agenda for the February 17 meeting been settled on and can we see it? (As usual, we want to thank the Desk for assiduously keeping us in the loop by sending us documents related to A/S Rocca's meetings with the GoI and with Peiris to review.) (POL) RE A.Q. KHAN -------------- ¶3. (C) We know the information is just emerging, but wanted to ask you about press play mentioning some sort of vague Sri Lanka nexus (among many other vague connections) to the A.Q. Khan matter. The New York Times and Washington Post have had articles briefly mentioning such a connection, including one that mentions a mysterious Sri Lankan national named "Tahir" who is reportedly in custody in Malaysia. Is there any info you can share? (POL) A MORE MILITARIZED NATIONAL DAY PARADE -------------- ¶4. (C) FYI. The Ambassador attended yesterday's National Day ceremony. As you will see in our front- channel today, the President's address on the occasion was less combative than usual. The parade itself, however, was much more militarized. Most every unit in the military was reportedly represented and there were tanks, APC's and even multi-barreled rocket launchers. The "heavy with weapons" aspect of the parade was probably not meant as a menacing message to the LTTE (we doubt the group would have been frightened, in any case). Rather, it probably represented more a feeling on the part of the military that the peace process is far enough along that it can bring some of its weapons back from the north and east to Colombo (at least temporarily). In the meantime, the LTTE held its regular "black flag" ceremonies throughout the north and east to protest national day. (POL/DAO) LUNSTEAD