MORE ON THE LTTE ATTACK ON

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 003548 E.O. 12958: DECL: 09/12/01 TAGS: PTER EWWT MOPS CE SUBJECT: MORE ON THE LTTE ATTACK ON US-CHARTERED MV CORDIALITY - A NEW LTTE TACTIC? REF: COLOMBO 03477 ¶1. (U) CLASSIFIED BY POLITICAL COUNSELOR ANDREW MANN. REASON: 1.5 (D). ¶2. (C) THE OWNER OF THE COMPANY HIRED TO SALVAGE MV CORDIALITY WHICH WAS ATTACKED IN THE EARLY MORNING HOURS ON SEPTEMBER 9 (SEE REFTEL) HAS PROVIDED ADDITIONAL DETAILS OF THE ATTACK. THE SHIP HAD BEEN LOADING ILMENITE FOR OVER A WEEK, USING LARGE NUMBERS OF LOCAL WORKERS. IT HELD ALMOST 29,000 TONS OF AN ESTIMATED 30,000 TON LOAD AT THE TIME OF THE ATTACK. THE SHIP WAS SURROUNDED BY A NUMBER OF SRI LANKA NAVAL CRAFT. ¶3. (C) EVIDENTLY, THE LTTE TOOK ADVANTAGE OF AN UNSECURED GANGPLANK TO GAIN ENTRY ONTO THE SHIP QUICKLY. THEY THREW GRENADES INTO THE ENGINE ROOM CAUSING EXTENSIVE DAMAGE. THE SALVAGE COMPANY OWNER SAID THE LTTE TRIED TO TAKE SOME OF THE CHINESE CREW MEMBERS HOSTAGE. IT IS NOT KNOWN IF IT WAS SUCCESSFUL. FIVE CREW MEMBERS ARE STILL MISSING. ¶4. (C) FIRE FROM THE GRENADE ATTACK SPREAD TO SOME OF THE LIVING QUARTERS. THE FIRES WERE DOUSED BY SLN FORCES RESPONDING TO THE ATTACK, BUT THE ENGINE ROOM WAS EFFECTIVELY DESTROYED. DUE TO THE AMOUNT OF WATER USED TO COMBAT THE FLAMES, THE STERN NOW SITS LOWER IN THE WATER THAN THE BOW. DURING THE ATTACK, RPG'S HAD RIPPED THROUGH THE SIDE OF THE SHIP BUT ABOVE THE WATER LINE. THE SHIP WAS/IS NOT IN DANGER OF SINKING. THE SHIP IS TOWABLE TO EITHER TRINCOMALEE OR COLOMBO DEPENDING UPON THE DETERMINATION OF THE INSURANCE COMPANY. ¶5. (U) IN A FAX FROM ITS LONDON OFFICE, THE LTTE JUSTIFIED ITS ATTACK ON MV CORDIALITY: "THE ROBBERY OF OUR NATURAL RESOURCES BY THE RELENTLESS ENEMY CANNOT BE PERMITTED." IT ARGUED THE ILMENITE WAS A NATURAL RESOURSE OF TAMIL EELAM, BEING "SYSTEMATICALLY PLUNDERED" BY THE SINHALA GOVERNMENT TO BE SOLD ABROAD WITH THE PROCEEDS USED TO PURCHASE ARMS AGAINST THE TAMIL PEOPLE. ¶6. (U) PERHAPS IN RESPONSE TO THE USG JULY 25 STATEMENT CONDEMNING LTTE INTERFERENCE WITH INTERNATIONAL SHIPPING, THE LTTE SAID ITS ATTACK "SHOULD NOT BE CONSTRUED AS AN ACT OF HOSTILITY DIRECTED TOWARDS ANY PARTICULAR TRADE OR SHIPPING ORGANIZATION. NEITHER SHOULD IT BE INFERRED AS AN ACT PREJUDICIAL TO INTERNATIONAL TRADE OR SHIPPING." THE LTTE STATEMENT EXPRESSED REGRET FOR THE LOSS OF LIFE, BUT THE ORGANIZATION, IT CLAIMED, HAS COMPELLED TO ACT IN ORDER TO PREVENT THE REMOVAL AND SALE OF EELAM RESOURCES AND TO "BEAT THE WAR STRATEGY" OF THE GSL. ¶7. (U) COMMENT. THE LTTE HAS PREVIOUSLY ATTACKED FOREIGN-FLAGGED COMMERCIAL VESSELS (MAY 97 ATTACK ON GREEK CARGO SHIP OUTSIDE TRINCOMALEE; AUGUST 96 ATTACK OF JAPANESE-OWNED, PHILIPPINE-FLAGGED CARGO SHIP IN PULMODDAI - NEAR THE SITE OF THE RECENT ATTACK (THE LTTE REFERRED TO THIS ATTACK IN ITS FAX); APRIL 96 ATTACK ON COLOMBO HARBOR LEAVING THREE CARGO SHIPS SLIGHTLY DAMAGED) IN ADDITION TO ITS JULY ATTACKS ON AN INDONESIA-FLAGGED PASSENGER FERRY AND A NORTH KOREAN CARGO SHIP. THE LTTE HAD ALSO SAID IN THE PAST ANY VESSEL (FOREIGN-OWNED OR SRI LANKAN) IN "TAMIL TERRITORIAL WATERS" ENGAGED IN "ACTIVITIES ASSOCIATED WITH THE SRI LANKAN MILITARY" WILL BE CONSIDERED A LEGITIMATE TARGET. ¶8. (C) THIS ATTACK IS WORRISOME FOR TWO REASONS. FIRST, THE LTTE APPEARS WILLING TO ENGAGE A MAJOR POWER. OUR SOURCE SAID IT WAS NOT POSSIBLE NOT TO HAVE KNOWN THE SHIP WAS CHINESE-OWNED AFTER A WEEK AT ANCHOR. SECONDLY, THE ECONOMIC JUSTIFICATION USED BY THE LTTE COULD PUT ALL ECONOMIC ACTIVITY IN THE NORTH EAST AT RISK. THIS ATTACK MAY SIGNAL THE GSL'S EFFORTS TO TAKE THE WAR TO THE LTTE IS HAVING SOME SUCCESS IN SQUEEZING IT. THE LTTE MAY BE LASHING OUT TO CAUSE THE GOVERNMENT TO DIVERT RESOURCES TO PROTECT ECONOMIC ACTIVITY, THUS GIVING THE LTTE A BREAK ON THE GROUND AND SEA. END COMMENT. SMYTH