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