SRI LANKA: INSUFFICIENT EVIDENCE TO RECOMMEND TRO

C O N F I D E N T I A L COLOMBO 000608

SIPDIS

SIPDIS

STATE FOR SCA/INS AND SCA/RA

E.O. 12958: DECL: 04/24/2017
TAGS: KTFN PTER CE
SUBJECT: SRI LANKA: INSUFFICIENT EVIDENCE TO RECOMMEND TRO
DESIGNATION

REF: A. 4/23/2007 LEE-MOORE EMAIL AND PREVIOUS

B. 06 COLOMBO 1653

C. 06 COLOMBO 1568

Classified By: DCM JAMES R. MOORE, REASONS 1.4 C AND D


1. (C) Embassy Colombo would support a designation of the
Tamils Relief Organization (TRO) if convincing evidence of
TRO financial links to the Liberation Tigers of Tamil Eeleam
(LTTE) exists. Post has not seen solid evidence against the
TRO and is therefore not in a position to make the case for
designation.


2. (C) Post's current views on and knowledge of the TRO are
as follows:

- The TRO does legitimate work. Some of its project outputs
may get diverted to LTTE use. It has not been established
whether this is forced or voluntary.

- USAID has a policy of not collaborating with the TRO to
avoid any possible risk of USAID funds being diverted to the
LTTE. Embassy officers have occasionally met with TRO
representatives (ref B).

- The Government of Sri Lanka (GSL) has not banned the TRO
nor closed its offices. The GSL is investigating whether the
TRO diverted tsunami funds to the LTTE. In support of the
investigation, Sri Lanka's Financial Intelligence Unit has
frozen the TRO's bank accounts and police have seized
computers and other evidence from TRO offices (ref C).

- We are told that the evidence the GSL used to get the
authority to freeze the funds was basically the evidence in
the FBI indictment in the LTTE arms procurement case. The
GSL's initial freeze of TRO accounts was for six months, and
the attorney general recently obtained a court order to
extend the freeze for another twelve months. It appears the
GSL lacks sufficient evidence to get a court order to close
the TRO down.


3. (C) To ensure that all relevant evidence potentially
linking the TRO with the LTTE is considered, Embassy urges
Washington interagency terrorist finance officials to
communicate with the FBI office conducting the continuing
investigation that led to the arrest of 15 people (and later
more) for attempting to buy arms for the LTTE in the United
States. Post's Regional Affairs Office and Treasury rep
believe the FBI, as a result of this investigation, likely
has the best information on possible TRO financial links to
the LTTE.
BLAKE