Identifier
Created
Classification
Origin
04COLOMBO72
2004-01-14 10:00:00
CONFIDENTIAL
Embassy Colombo
Cable title:  

Donors find agreement over Akashi visit

Tags:  PREL PGOV EAID CE NO EU JA LTTE 
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C O N F I D E N T I A L SECTION 01 OF 03 COLOMBO 000072 

SIPDIS

DEPARTMENT FOR D, SA, SA/INS; NSC FOR E. MILLARD

PLEASE ALSO PASS TOPEC

E.O. 12958: DECL: 01-14-14
TAGS: PREL PGOV EAID CE NO EU JA LTTE
SUBJECT: Donors find agreement over Akashi visit
scenario and discuss impact of political impasse on aid

Refs: (A) Colombo 54; (B) Oslo 64

(U) Classified by Ambassador Jeffrey J. Lunstead.
Reasons 1.5 (b,d).

C O N F I D E N T I A L SECTION 01 OF 03 COLOMBO 000072

SIPDIS

DEPARTMENT FOR D, SA, SA/INS; NSC FOR E. MILLARD

PLEASE ALSO PASS TOPEC

E.O. 12958: DECL: 01-14-14
TAGS: PREL PGOV EAID CE NO EU JA LTTE
SUBJECT: Donors find agreement over Akashi visit
scenario and discuss impact of political impasse on aid

Refs: (A) Colombo 54; (B) Oslo 64

(U) Classified by Ambassador Jeffrey J. Lunstead.
Reasons 1.5 (b,d).


1. (SBU) SUMMARY: The Tokyo Co-chairs and the larger
donor group both agreed that the Akashi visit should
include an informal meeting with the donors only,
followed by a meeting with GSL -- and LTTE, if they
would come. Meetings will be low-key, with no
communique or press release. Akashi will visit LTTE
headquarters in Kilinochchi. All donors, except the
U.S., will participate in the LTTE Planning and
Development Secretariat meeting on January 19. Donors
grappled with the question of how to move forward on
assistance during the current political impasse and what
message to send. END SUMMARY.

Co-chairs Agree on Akashi Scenario
--------------


2. (SBU) Tokyo Co-chairs -- Japan, U.S., Norway, EU,
and Netherlands for EU Presidency -- met January 12 at
the Chief of Mission level, principally to discuss the
Akashi January 19-25 visit and the Japanese desire to
have a "Second Follow-up Meeting to the Tokyo
Conference" on January 23. Japanese Ambassador Suda
said that such a meeting should be as informal as
possible, a consultation on the current situation and
what was happening on the assistance front. There would
be no attempt to reach agreement on an action. The GSL
would be invited to participate, but would be asked to
avoid long speeches. The Liberation Tigers of Tamil
Eelam (LTTE) would be invited, but no one expected them
to show up.


3. (SBU) Akashi noted that some other Co-chairs had
asked for an informal donor meeting with Akashi before
the government meeting. Akashi was "concerned about
that idea," Suda said, feeling it could present an
impression of donor collusion. Others, including the
U.S., argued strongly for such a meeting, as it would be
a useful opportunity for the donors and Akashi to
exchange ideas privately. Suda eventually gave in and

said he would suggest the idea to Tokyo.


4. (SBU) Ambassador Lunstead said that while all
parties agreed a communique would not be useful, we
could utilize the Akashi visit for another purpose and
feed the press at the same time. There is great
misconception throughout Sri Lanka about what is
happening on assistance -- in LTTE areas, people insist
there is no development going on in the North and East,
while in the South, people insist all of the assistance
is going to the North and East. The Akashi visit would
offer a useful platform to issue a fact sheet showing
the amount of assistance Sri Lanka was receiving (twice
as much in 2003 as the year before) and where it was
going -- to areas throughout the country. All agreed
this was a good idea.


5. (SBU) Ambassador Suda said that Akashi would visit
LTTE headquarters at Kilinochchi for discussions with
Tiger political leader S.P. Thamilchelvam, probably on
January 24. Other co-chairs suggested that the visit
might better come before the donor meetings in Colombo,
so that Akashi could report on his conversations. Suda
accepted the logic, but said scheduling might be a
problem.

Larger Donor Group Endorses Ideas
--------------


6. (SBU) The larger donor group, which adds to the Co-
chairs other bilateral donors (Sweden, Australia,
France, Canada, UK, Switzerland and Germany),and
multilaterals (ADB, World Bank, IMF, UNDP, and UNHCR)
met the following day, January 13. The group expressed
support for the decisions taken by the co-chairs the
previous day on an informal meeting and on a press
release summarizing assistance to date. Ambassador
Lunstead briefed the group on the high-level Co-chairs
meeting to be held in February. The group discussed
what messages and actions could be useful during the
current political impasse, including:

-- INTERIM ADMINISTRATION: There was general agreement
that an interim mechanism needed to be developed to
administer assistance to the North and East. With the
peace negotiations stalled, there could be no decisions
on a formal interim administration. This could be
something like the North/East Rehabilitation Fund
(NERF),which never got off the ground.

-- OVERALL MESSAGE: Donors also discussed what position
they should take on assistance with the peace
negotiations stalled, especially in light of the Tokyo
Declaration statement that "assistance by the donor
community must be closely linked to substantial and
parallel progress in the peace process." World Bank
Resrep Harrold stated that "donors must express their
displeasure and indicate they cannot proceed at Tokyo
levels," i.e., at the full $4.5 billion level. Norway
noted that much assistance to the North and East had
been held up after the LTTE pulled out of peace talks.
With LTTE now stating it was ready to talk, but the GSL
unable to do so, the Tigers would want aid to flow to
their areas. How would donors answer that request?


7. (SBU) The group discussed the invitation from the
newly formed LTTE "Planning and Development Secretariat"
to attend a meeting on "Rehabilitation and Development
Needs of Northeastern Sri Lanka" on January 19 in
Kilinochchi. All participants except the U.S. said they
intended to attend the meeting at the "technical" level.
The question was raised whether donors could recognize
this new LTTE institution and work with it on setting
priorities. The World Bank thought that the LTTE would
certainly suggest that the donors direct funds to the
North and East through this institution -- all agreed
that would not be acceptable.


8. (SBU) For several months, we have been trying to get
the Japanese to agree to set up a mid-level working
group to monitor progress of the peace process, as set
out in paras 18 and 20 of the Tokyo Declaration, and
especially with regard to the milestones laid down in
para 18. (While the peace negotiations are stalled, the
peace process continues every day.) The former Japanese
Ambassador had stalled and delayed. In a carefully
orchestrated maneuver, Canada, Netherlands, the U.S. and
the UK brought this idea forward again. The group's
unanimity of support overcame Ambassador Suda's
reluctance, and the group will now be established under
UK lead. Donors can have up to two participants, one
from the development side and one from the political
side.

COMMENT
--------------


9. (C) The advent of the new Japanese ambassador has
led to a much more productive co-chairs atmosphere. The
collaborative approach on planning the Akashi visit and
the agreement on a working group are good steps forward.
We consider that donor group solidarity is important,
especially in dealing with the LTTE, which would love to
split the donors up. The new atmosphere helps to
strengthen that solidarity. At same time, all donors
appear to be wrestling with the vexing problem of how to
proceed with assistance while negotiations are stalled
due to the political impasse in South. Widespread
feeling seems to be that opening floodgates of Tokyo
assistance is not appropriate, but that donors also want
to (a) provide badly needed assistance to conflict-
devastated areas in the North and East and (b) not build
resentment in the South or negatively affect chances for
a resolution of the political impasse. This will
require a delicate balance. END COMMENT.


10. (U) Minimize considered.

LUNSTEAD