OFFICIAL INFORMAL NUMBER 079 (06/03/04)

C O N F I D E N T I A L COLOMBO 000912 SIPDIS OFFICIAL INFORMAL FOR SA/INS E.O. 12958: DECL: 06/03/14 TAGS: AMGT CE MV LTTE SUBJECT: OFFICIAL INFORMAL NUMBER 079 (06/03/04) Classified by DCM James F. Entwistle for reasons 1.5 (b) and (d). CONTENTS: LTTE Rejects "NERF Lite" Colombo Plan LTTE Says "No" to NERF -------------- ¶1. (C) World Bank ResRep Peter Harrold travelled to Kilinocchi on June 1 to attempt to obtain LTTE agreement to a plan for a development assistance scheme for the North and East, a "NERF-Lite" which would have allowed donors to commit funds to a World Bank fund. Projects would have had approval by both the LTTE and the GSL. The plan had essentially been approved by the LTTE in January, and had been approved by President Kumaratunga recently. The LTTE this time rejected it out of hand, telling Harrold that the GSL's backing away from its commitment to discuss the ISGA only at renewed talks made them distrust anything the Government promised. The answer to development needs, they said, is to establish the ISGA. ¶2. (C) The LTTE has probably rejected this mainly because they do not want to share any credit with the GSL. Whatever the reason, it makes their constant complaints about lack of assistance to the North and East ring hollow. Dutch DCM told Amb today that the Dutch are furious at this latest LTTE antic, and will probably hold back on anticipated N and E development projects. (AMB) Colombo Plan? -------------- ¶3. (U) We wondered if anything was happening on our Colombo Plan budget issue. When Christina was here, she said that just before she left DC, she had signed a memo to IO A/S Holmes on the subject. Has anything come of it? (AMB) LUNSTEAD