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