SRI LANKA: INFORMATION FOR MCC NOVEMBER 8 MEETING

UNCLAS SECTION 01 OF 02 COLOMBO 001821 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR EB/IDF/ODF AND SCA/INS STATE PLEASE PASS MCC FOR D NASSIRY AND E BURKE E.O. 12958: N/A TAGS: EAID MCC KMCA CE SUBJECT: SRI LANKA: INFORMATION FOR MCC NOVEMBER 8 MEETING ¶1. (SBU) Summary: Post recommends that Sri Lanka continue to be considered MCC-eligible. MCC projects would increase overall prosperity and support our main objective of helping Sri Lanka attain a lasting peace. Violence between Government of Sri Lanka forces and the Liberation Tigers of Tamil Eelam (LTTE) heightened in the first two weeks of October. October 28-29 peace talks between the two sides in Geneva ended in deadlock without a date for a future round. On the other hand, the two major southern political parties have signed a Memorandum of Understanding to work together on the peace process, giving rise to guarded optimism that a "southern consensus" can move the process forward. The government has taken steps to address the international community's concerns about human rights and NGO access within Sri Lanka. End summary. TALKS FOUNDER AMID RISING VIOLENCE -------------- ¶2. (SBU) In the first two weeks of October, Sri Lanka saw continued serious violence. Since June, both the number and scale of violent confrontations between the Government of Sri Lanka (GSL) and the Liberation Tigers of Tamil Eelam (LTTE) increased drastically. In July, the LTTE provoked an overreaction by security forces at the Mavilaru irrigation gates between Batticaloa and Trincomalee. A military engagement ensued in the predominantly Muslim area of Muttur. On September 1, after the LTTE withdrew security guarantees, monitors from EU member states left the Sri Lanka Monitoring Mission (SLMM). This reduced the number of monitors from 65 to 32, even as complaints of Cease Fire Agreement (CFA) violations multiplied. ¶3. (SBU) On October 28-29, Norwegian-facilitated peace talks in Geneva between the government and the LTTE ended without any significant breakthrough, failing to produce even an agreement on dates for a next round. The government focused on broad issues such as democratic governance, administration of justice, and devolution of power sharing. The LTTE called for action on more immediate concerns, including full implementation of the Ceasefire Agreement (CFA) and strengthening of the Sri Lanka Monitoring Mission (SLMM). Talks deadlocked on the second day over the LTTE demand that the A-9 highway to Jaffna be reopened. THE TWO MAJOR PARTIES CONVERGE -------------- ¶4. (SBU) One bright spot in the internal political situation is the recent agreement between the two major parties, the opposition United National party (UNP) and the governing Sri Lankan Freedom Party (SLFP),to work together on a common program. The SLFP and UNP signed a Memorandum of Understanding (MoU) on October 23 setting out a Common Minimum Program to resolve the conflict in the north and east and to address other national issues. Most significantly, the MoU reaffirmed the 2002 Ceasefire Agreement with Norway as facilitator, provoking predictable outrage from Sinhalese chauvinist parties who supported President Rajapaksa in the November 2005 election. The Co-chairs and other Western diplomats view the agreement as a positive contribution toward reaching a "southern consensus" on a viable peace proposal the Tigers would have to consider seriously. Important details of the agreement have not become public, however. Implementing it will not be easy for either the ruling party or the opposition UNP - but there is no other clear way forward. HUMAN RIGHTS -------------- ¶5. (SBU) Credible allegations of serious human rights violations by both sides have mounted. The August 5 execution-style killing of 17 local staff members of the French NGO Alliance Contre la Faim, 16 Tamils and one Muslim, has attracted the most attention. The Sri Lanka Monitoring Mission accused Sri Lankan security forces of involvement in the murders, a charge the government vehemently denied. An investigation by a team of Australian forensic experts has yet to produce conclusive evidence regarding the authorship of the crime. The government now appears to be paying attention to the international outcry against the deteriorating human rights situation. In September, President Rajapaksa agreed to work with the Co-chairs, other countries, and the United Nations to set up a panel of international observers to assist a national Commission of Inquiry on Human Rights. NGO ACCESS COLOMBO 00001821 002 OF 002 -------------- ¶6. (SBU) International humanitarian organizations such as Medecins sans Frontieres and others have come under fire from Sinhalese hardliners for alleged Tiger sympathies - or even giving assistance to the LTTE. While such charges appear to have minimal basis in fact, the government has cracked down on work permits for the international NGOs and ordered some to leave the country. Coordinated pressure from the international community, including the Embassy, got the GSL to backtrack on the expulsions. The GSL has also initiated a high-level working group to address NGO access problems. The third such meeting took place on November 3. RECOMMENDATION FOR SRI LANKA'S MCC STATUS -------------- ¶7. (SBU) Post urges that Sri Lanka continue as an MCC-eligible country. Development assistance that MCC provides is needed to help Sri Lanka in its ongoing efforts to promote greater prosperity, especially in the rural areas where poverty is greater. As we have consistently reported, the uneven distribution of wealth in Sri Lanka is one of the root causes of the conflict. Increased prosperity can only bolster Sri Lanka's ability to achieve a lasting peace. The US, as a Co-Chair, is deeply engaged in the search for a negotiated political settlement to the conflict. An MCC Compact will bring a "peace dividend" that can help prevent Sri Lanka's long-running ethnic strife from flaring up anew. BLAKE