Identifier
Created
Classification
Origin
09CHENNAI57
2009-02-26 02:10:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Chennai
Cable title:  

SRI LANKA PERMEATES VISIT TO CHENNAI

Tags:  PREL PGOV PTER PHUM ECON IN CE 
pdf how-to read a cable
VZCZCXRO2869
RR RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHNEH RUEHPW
DE RUEHCG #0057/01 0570210
ZNR UUUUU ZZH
R 260210Z FEB 09
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 2097
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
UNCLAS SECTION 01 OF 02 CHENNAI 000057 

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV PTER PHUM ECON IN CE

SUBJECT: SRI LANKA PERMEATES VISIT TO CHENNAI

REF: Chennai 038

UNCLAS SECTION 01 OF 02 CHENNAI 000057

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV PTER PHUM ECON IN CE

SUBJECT: SRI LANKA PERMEATES VISIT TO CHENNAI

REF: Chennai 038


1. (SBU) Summary: Issues related to the war in Sri Lanka dominated
SCA/INS Acting Director Diane Kelly's February 3 to 5 visit to
Chennai. Local concern for the civilians trapped in the fighting
was a constant theme as she visited an NGO that supports refugees
from the war and had lunch with Sri Lanka's Chennai-based Deputy
High Commissioner and other prominent local figures. Kelly also
heard concerns about the economic downturn at a Sri Lankan-owned
textile manufacturer and at one of India's major information
technology companies. End Summary.

Sri Lanka on Everyone's Mind
--------------


2. (SBU) Talk of the war in Sri Lanka dominated a lunch meeting
hosted by the Consul General. P.M. Amza, Sri Lanka's Deputy High
Commissioner in Chennai (and a Tamil) characterized Tamil Nadu Chief
Minister Karunanidhi's comments criticizing the LTTE as a "welcome
development." He also reiterated press reports that the government
of Sri Lanka was allowing free passage of Tamils out of the conflict
zone and estimated that the number of Tamil civilians still in the
zone at approximately 100,000 (despite media reports of up to
250,000). Kelly pressed Amza firmly on the Sri Lankan government's
human rights record, emphasizing that one reason more civilians were
not leaving the conflict zone was fear of being targeted as LTTE
sympathizers. Other guests, including a local journalist for one of
India's major dailies, engaged Amza in an extended -- and often
heated -- discussion of the Sri Lankan government's policies and
intentions.

Refugees a Major Concern
--------------


3. (SBU) Kelly also paid a visit on the local offices of the
Organisation for Eelam Refugees Rehabilitaion (OfERR),an NGO
working with Sri Lankan Tamil refugees. OfERR's director,
Chandrahasan, explained that there are over 78,000 Tamil refugees
from Sri Lanka living in 119 different camps in Tamil Nadu. He
decried both the lack of credible Tamil leadership in Sri Lanka and
the Sri Lankan government's "Sinhalese chauvinism."


4. (SBU) Chandrahasan, a refugee himself, suggested that the USG
continue working to convince the Sri Lankan government to provide

neutral territory for internally displaced Tamils monitored by
international NGOs. He also suggested that U.S. military advisors
assist the Sri Lankan government in the transition from military to
civilian rule in the northern areas of the island recently won back
from the Liberation Tigers of Tamil Eelam (LTTE). He believes that
a federal ruling structure with a Tamil linguistic state in the
north as envisioned by the Indo-Sri Lankan Agreement of 1987 is the
key to a political solution.

The Economic Downturn Takes Hold
--------------


5. (SBU) Kelly also visited a textile manufacturer that produces
mainly for the U.S. market. The facility, a division of Sri
Lankan-owned MAS Holdings, runs a series of modern production lines
that manufacture undergarments for retailers like Victoria's Secret
and other internationally known brands. One executive explained
that a key reason why MAS decided to open a major facility in Tamil
Nadu was concern that political instability in Sri Lanka would
disrupt production. He also explained that the economic downturn,
particularly in the company's key markets in the United States and
Europe, was forcing it to think of creative ways to avoid layoffs.
In addition to implementing more effective just-in-time
manufacturing techniques, he said that the company was also looking
to expand its marketing efforts beyond its traditional U.S. and
European markets, as well as on more price-sensitive (i.e., less
prestigious) retailers.

IT Sector also Feeling the Pinch
--------------


6. (SBU) To get a taste of South India's vaunted information
technology (IT) sector, Kelly visited Cognizant, a U.S.-based
company with a major presence in India. A Cognizant executive told
Kelly that the company is definitely feeling the pinch of the
worldwide economic slowdown -- particularly in the United States --
but it is still forecasting positive revenue growth for 2009, albeit
far, far less than the 30 percent-plus growth that the company has
enjoyed for the past several years. He also explained that
Cognizant, like other IT companies, is seeing a significant slowdown
in new orders as corporate clients reduce and/or delay capital
expenditure on technology development. He was optimistic about the
longer term future, however, noting that companies like Cognizant
ultimately save their clients money, making them attractive business
partners in these difficult economic times.


CHENNAI 00000057 002 OF 002


Comment
--------------


7. (SBU) Kelly's visit to Chennai turned out to be more Sri
Lanka-focused than we had planned, due to the increasing salience of
the issue as a topic of everyday conversation among our local
contacts. The plight of Sri Lanka's Tamil minority continues to be
a major cause celebre in Tamil Nadu (ref A),and figures to become
even more prominent in the coming weeks as Tamil Nadu's politicians
all vie to define positions that Indian voters will support in the
run up to national elections.

KAPLAN