SRI LANKA CO-CHAIRS MEET IN BRUSSELS, 01/25/2005

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 000478

SIPDIS

E.O. 12958: DECL: 02/01/2015
TAGS: PREL PGOV EAID PHUM CE USEU BRUSSELS
SUBJECT: SRI LANKA CO-CHAIRS MEET IN BRUSSELS, 01/25/2005


Classified By: POLOFF SARAH GROEN FOR REASON 1.4(D)


1. SUMMARY: Co-chairs agreed on a press statement
emphasizing a strong link between tsunami reconstruction
process and building confidence to strengthen the peace
process, but without a direct link to resumed peace
negotiations. The Co-Chairs agreed on the need for enhanced
donor coordination, but there were some differences on degree
and type of coordination. END SUMMARY


2. (C) U.S., EU, Japanese and Norwegian delegations met at
the European Commission in Brussels on January 25 for a
meeting of the Co-Chairs of the Tokyo Conference. The
working lunch and conclusions session were congenial and
moved quickly under the guidance of EU External Relations
Commissioner Benita Ferrero-Waldner. The meeting provided an
opportunity for the participants to share views on the
situation on the ground in Sri Lanka, discuss next steps, and
prepare a press release that addressed the tsunami disaster
and next steps in the peace process.

COORDINATING MECHANISM URGENTLY NEEDED
======================================


3. (C) A main thrust of the meeting was the agreement that
donors needed to ensure coordination of their assistance
efforts to avoid gaps and overlaps. Commissioner
Ferrero-Waldner strongly supported the idea of a coordinating
mechanism, and wanted to discuss the concept in the meeting
and perhaps arrive at a proposal. The group felt,
however--and Ferrero-Waldner quickly agreed--that this was a
proposal that could better be generated by co-chair members
on the ground in Colombo. Ambassador Lunstead said this
topic will be on the agenda at a Co-chairs meeting in Colombo
next week.


4. (C) Discussing the subject further, Norwegian Deputy
Foreign Minister Vidar Helgeson pointed out that because of
the vast amounts of money involved and the fact that some
major donors are not included in the Tokyo Conference, its
utility as a coordinating mechanism for tsunami relief is
limited. He also noted the vast sums of money which had been
raised by NGO's whose activities in the country were largely
unregulated and not coordinated. Ambassador Lunstead said
that one problem in coordination was that the GSL had not
named one person with enough political clout in overall
charge to get the various government entities, NGOs, and
other actors in line. Yasushi Akashi, head of the Japanese
delegation, mentioned an informal coordinating group of NGOs
which already meets in Colombo, and suggested that one or two
established and well-respected NGOs could take the lead on
coordinating NGO activities.

THE POLITICAL MESSAGE
=====================


5. (C) The Co-chairs were largely in agreement on what the
political message of the press statement should be: to
communicate sympathy for the tsunami disaster, pledge
continued support for reconstruction efforts, and allay fears
that tsunami relief would be conditional on progress on the
peace process. At the same time, they wanted to encourage
the parties to the peace process to use this opportunity to
bridge differences and build confidence in each other.


6. (C) There was much awareness of and discussion about how
the government and LTTE would read the press release, with
Ambassador Lunstead noting that Sri Lanka readers would be
sure to parse it closely for every shade of meaning. The
group was very aware of both GSL and LTTE concerns that major
donors would make tsunami aid contingent on the peace
process, and wanted the statement to allay those fears. The
eventual consensus of the group was that omitting any
reference to conditionality was enough to address Sri Lankan
fears about conditionality; the statement did not have to
explicitly state that tsunami response was unconditional.


7. (C) Within the context of general agreement, individual
delegations raised concerns:

--NORWAY: Wanted to make sure that the word "decentralized"
was used somewhere in regard to reconstruction efforts, based
on Norwegian concerns that President Kumaratunga holds power
much too tightly and refuses to delegate responsibility to
staffers. Argued for adequate acknowledgment of the LTTE, on
the grounds that if they were omitted, they would be offended
and this could negatively affect the peace process. Pushed
for enhanced donor coordination mechanism in Colombo.

--JAPAN: Wanted to ensure that the efforts of the GSL were
acknowledged adequately in the press release, rather than
focusing primarily on the work of NGOs and other
organizations. Wanted to ensure that the GSL and LTTE were
not directly equated in the statement in a way that would
suggest they were equivalent entities. Thought donor
coordination in Colombo was good, echoed by US.

--EU: Initially made a case for including the word
"unconditional" in the press release in regard to tsunami
relief, arguing that if the word was not used, the Sri Lankan
audience would continue to worry that tsunami aid would be
held up if the peace process did not move forward.
Ferrero-Waldner decided the word should not be included.
--U.S.: Had to make sure that the statement was in line with
the USG's designation of LTTE as a terrorist group.
NEW PROPOSALS/ACTIONS
=====================


8. (C) In his opening remarks, Deputy Foreign Minister
Helgeson described his meetings with LTTE and GSL leaders in
Sri Lanka last week, including ongoing negotiations on a
proposal to create a World Bank-administered fund for tsunami
assistance. While the group lauded the Norwegian talks as a
step forward, both Japan and the U.S. pointed out that they
would not be able to contribute to such a fund (in the case
of the U.S., because such funds could end up going to the
LTTE).


9. (C) The EU raised the idea of sending a delegation to Sri
Lanka in the next month or two, but asked for input from
Colombo-based participants on what timeframe might be
appropriate. The delegation might include Commission
External Relations Director Herve Jouanjean; during the
working lunch, Commissioner Ferrero-Waldner also expressed
interest in going. (EU has since informed Embassy Colombo
that Ferrerro-Waldner and Jouanjean will come in early March.)


10. (C) COLOMBO COMMENT: The meeting was cordial and
productive, with especially quick movement on the statement.
It was also useful as an opportunity to bring new
Commissioner Ferrerro-Waldner up to speed on Sri Lanka. Some
differences of opinion on how donor assistance should be
coordinated are becoming evident. Everyone agreed that
coordination of these large sums of money to Sri Lanka is
necessary. Following themes developed during the visit to
Colombo the previous week of Norwegian International
Development Minister Hilde Johnson, the Norwegians described
donor coordination in Colombo as "poor" and pushed for a
highly centralized (and in our view unneeded and
inappropriate) control mechanism. Johnson described this as
the "new African model," citing Uganda as an example. We
think the differences are greater than the similarities. We
do not believe, however, that this will become a major issue,
as in fact all donors work well together on the ground here.
END COMMENT

SCHNABEL
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