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### Viewing cable 03COLOMBO1724, USAID STAFF DISCUSS WORKING LEVEL ISSUES WITH LTTE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
03COLOMBO1724 | 2003-10-03 06:02 | 2011-08-25 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Colombo

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 04 COLOMBO 001724

    SIPDIS

    SENSITIVE

    DEPT FOR SA, SA/INS
    PLEASE PASS TO USAID/ANE/AA, GORDON WEST;
    USAID/ANE/ESA, BERNADETTE BUNDY, USAID/ANE/SA,
    CHARLES UPHAUS, AND USAID/DCHA/OTI, RACHEL WAX.

    E.O. 12958:  N/A
    TAGS: EAID PTER CE LTTE
    SUBJECT: USAID STAFF DISCUSS WORKING LEVEL ISSUES WITH LTTE

    REF:  STATE 256563

    SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY.

         SUMMARY
         -------

         ¶1.  (SBU) Per recent State Department guidance
         approving operational/working level discussions with
         counterpart LTTE representatives (reftel) and based
         on a September 18 meeting between the Embassy's front
         office and USAID Sri Lanka staff, on September 29 and
         30 two USAID staff held meetings with LTTE officials
         in Jaffna and Kilinochchi to discuss specific issues
         related to USAID grant implementation in Jaffna.  The
         meetings were cordial, did not stray from the
         specific operational issues at hand, and resulted in
         a clear understanding about how USAID's Office of
         Transition Initiatives (OTI) will move forward on
         grant implementation in Jaffna.  USAID also tried to
         schedule an appointment with the LTTE in Trincomalee
         to introduce the OTI head of office there to local
         LTTE representatives.  This meeting did not happen,
         however, due to the absence of the designated LTTE
         official in Trincomalee.  END SUMMARY.

         BACKGROUND
         ----------

         ¶2.  (SBU) To date OTI has been constrained from
         implementing grants in Jaffna due to the LTTE's
         direct taxation of local Jaffna businesses and an
         existing tariff system on goods being transported on
         the A9 highway through the Vanni.  This is an LTTE-
         controlled area that links the Jaffna Peninsula with
         government-controlled areas to the south.  USAID has
         been aware of the existence of a tax-exempt system
         for donors and other international organizations
         routing goods up the A9.  Until the recent State
         Department guidance, USAID was unable to talk
         directly with the LTTE to get this needed tax-exempt
         status.  USAID attempted to obtain such a waiver via
         the GSL government agent (GA) in Jaffna, but this
         process proved to be opaque and slow.

         JAFFNA FIRST
         ------------

         ¶3.  (SBU) With Embassy clearance, the USAID/OTI Sri
         Lanka country representative and the USAID Sri Lanka
         special projects officer, joined by a local staff who
         handles Jaffna for OTI, flew to Jaffna on September
         29 for a scheduled meeting with the LTTE.  The team
         first visited the GA in Jaffna to thank him for his
         attempts to expedite the movement of USAID goods up
         the A9 highway and to inform him about the planned
         meeting with the LTTE.  The USAID staff then drove to
         the LTTE office in Jaffna in a clearly marked
         diplomatic vehicle.

         ¶4.  (SBU) The USAID staff were met by Mr. Emayavan,
         who introduced himself in English as the office's
         "liaison officer."  [note: the USAID staff had been
         told the previous week, when setting up a meeting
         over the phone from Colombo, that Mr. Emayavan is
         affiliated with the Jaffna NGO consortium and would
         join the scheduled meeting with Mr. Eelampadavi, head
         of the LTTE's Jaffna representative office.  End
         note].  Though Mr. Emayavan offered his services as a
         translator, the USAID special projects officer, who
         speaks Tamil, led the conversation at the OTI country
         representative's request.

         ¶5.  (SBU) For the official meeting, Mr. Chemanan, the
         deputy LTTE representative for Jaffna district, led
         from the LTTE side.  He explained in Tamil that Mr.
         Eelampadavi had been called to Kilinochchi for an
         urgent meeting and sent his apologies for being
         absent.  USAID staff introduced themselves by
         presenting business cards and describing USAID as a
         U.S. government organization with a program in Sri
         Lanka supporting rehabilitation and development
         projects in various parts of the island, including
         Jaffna.  The USAID staff mentioned a few of the
         activities USAID has funded in Jaffna such as
         rebuilding war-damaged schools in Chavakachcheri,
         rehabilitating a chicken farm in Varani, and
         providing boats and nets to fishermen in Karainager
         Island.

         ¶6.  (SBU) Mr. Chemanan was attentive to the
         conversation and responded by saying that USAID's
         work, as described, was "very important for the
         people of Jaffna.we are glad you are here."  He
         continued by saying that the LTTE would make every
         effort to cooperate and support USAID in any way
         possible. With that invitation, the conversation
         shifted to the subject of taxation, specifically as
         it applied to the supplies USAID needs for projects
         in Jaffna.  After USAID staff laid out the need to
         have a tax-free arrangement for moving goods up the
         A9, Mr. Chemanan said emphatically that the LTTE
         would not tax any of USAID's projects in Jaffna, "no
         matter how many hundreds of thousands of rupees" were
         involved.  This response was in line with USAID's
         understanding of the LTTE's current policy regarding
         supplies moved into Jaffna for rehabilitation and
         development work by any international agency.

         ¶7.  (SBU) The hour-long meeting ended with Mr.
         Chemanan suggesting that the USAID staff meet with
         the LTTE's NGO coordinator in Kilinochchi, Mr.
         Thiyagarajah, to make arrangements for tax-free
         transport of supplies to Jaffna.  He agreed to call
         ahead to schedule a meeting early in the afternoon.
         Furthermore, he suggested that USAID return to Jaffna
         some time in the future to talk with Mr. Eelampadavi.
         No firm commitments were made, but USAID staff
         expressed their interest in continuing the
         conversation regarding operational issues related to
         USAID programming in Jaffna.

         ONWARDS TO KILINOCHCHI
         ----------------------

         ¶8.  (SBU) USAID staff left Jaffna and proceeded to
         Kilinochchi along the A9 highway, a two-hour journey.
         The LTTE political wing and civil administration
         complex there is a series of mostly new, one-story
         buildings along a dirt road on the east side of the
         A9 highway just north of the Kilinochchi town center.
         A fence of barbed wire and metal sheeting, well over
         head high, obstructs the view from the road.

         ¶9.  (SBU) The USAID vehicle stopped in front of the
         political wing headquarters, where an unarmed young
         man in what seemed to be a gunmetal blue LTTE police
         uniform was posted near an alley.  USAID staff
         greeted him in Tamil, introduced themselves with
         business cards and asked for Mr. Thiyagarajah.  With
         a smile, the man escorted the USAID staff down an
         alley to a civil administration office.  At that
         office the USAID staff were greeted by another
         English-speaking "liaison officer," a retired civil
         servant from the department of health in Trincomalee.

         ¶10.  (SBU) Mr. Thiyagarajah soon joined the group and
         was extremely cordial from the outset.  With the
         USAID special projects officer facilitating the
         meeting in Tamil, USAID staff gave the same cursory
         introduction and explanation of USAID as given in
         Jaffna. As in Jaffna, there was no mention of USAID's
         inability to work in LTTE-controlled areas, and Mr.
         Thiyagarajah did not ask.  He explained that he was
         the head of the LTTE's "INGO coordination office,"
         which is part of the organization's civil
         administration.  His job is to interface with
         representatives from INGOs, which it appeared he
         assumed us to be, and handle matters like the one
         being discussed - taxation of goods for
         rehabilitation and development projects.

         ¶11.  (SBU) USAID staff gave him a brief overview of
         current projects in Jaffna and explained that USAID
         did not pay taxes to the Sri Lankan government for
         supplies procured as part of its assistance
         activities, and it could not by U.S. law pay such
         taxes for supplies being transported through the
         Vanni.  USAID staff did not offer any more details,
         and Mr. Thiyagarajah never pushed the issue.  "I
         understand," he said, smiling.  In terms of a system
         for waiving LTTE taxes, Mr. Thiyagarajah said that it
         would be possible to get such a waiver but that it
         would have to be on a shipment-by-shipment basis, as
         is the case with other INGOs and international
         agencies.  He explained exactly how the system works
         and clarified a number of questions asked by the
         USAID staff.  Essentially the INGO coordination
         office clears a list of items for individual grants
         and then routes the list to the LTTE customs officer
         for a signature.  The process is straightforward
         though it requires someone on the USAID side to walk
         the paperwork through the system.  It can be done in
         one day.

         NO MEETING IN TRINCOMALEE
         -------------------------

         ¶12.  (SBU) On September 30 the USAID/OTI Sri Lanka
         country representative, the USAID Sri Lanka special
         projects officer, and the USAID/OTI head of office in
         Trincomalee went to the LTTE Trinco office for a
         meeting that had been requested by letter after much
         difficulty in getting any commitment over the phone.
         While the Jaffna and Kilinochchi meetings revolved
         around a clear discussion on a particular operational
         issue, the Trincomalee meeting was deemed necessary
         in order to brief the local LTTE office about
         USAID/OTI's new office in Trincomalee and planned
         activities in the area.  The meeting was also
         intended as a way to introduce the USAID/OTI Trinco
         head of office to the LTTE and to clearly state that
         issues related to the OTI program in Trincomalee
         should be addressed to her as opposed to any of OTI's
         local staff.

         ¶12.  (SBU) Despite numerous efforts to confirm the
         Trinco meeting, upon arrival at the LTTE office the
         USAID staff were informed that the LTTE
         representative, Mr. Thilak, was not in town and that
         no one else in the office was authorized to meet with
         official visitors.  The USAID staff left business
         cards and stated that the meeting could be arranged
         at a later date.

         ¶13.  (SBU) It turned out that Mr. Thilak was in fact
         in Trincomalee, and shortly after the USAID staff
         left to return for Colombo he called the USAID/OTI
         Trincomalee office to say that he was available to
         meet immediately.  He was extremely apologetic about
         any miscommunication over the planned meeting and
         offered to come to the USAID/OTI office immediately
         to meet.  Unfortunately by the time the USAID/OTI
         office staff was able to inform the USAID Sri Lanka
         staff via mobile phone, they were too far out of
         Trinco to return.  USAID/OTI Trincomalee informed Mr.
         Thilak that the meeting would need to be rescheduled.
         In all likelihood the meeting will take place
         sometime during the week of October 6.

         COMMENT
         -------

         ¶15.  (SBU) The most lasting impression from the
         exchanges at several LTTE offices was that the LTTE
         was open to the type of working-level discussions
         directly related to projects in government-controlled
         areas of the north and east that USAID initiated
         through this trip.  People were extremely cordial and
         welcoming, probably partly due to the fact that from
         the onset the meetings were conducted in Tamil and on
         the USAID side there was an American Tamil speaker
         who has long years of experience in different parts
         of Sri Lanka.  It also seemed clear that the LTTE
         interlocutors were not fully aware of the
         significance of these conversations for USAID Sri
         Lanka and the larger USG presence in the country -
         i.e. the first operational level engagement since the
         LTTE was placed on the list of FTOs.

         ¶16.  (SBU) Contributing to this impression was the
         likelihood that the LTTE interlocutors, despite
         seeing a vehicle with diplomatic plates and being
         presented with official business cards, mistook the
         USAID staff to be INGO personnel.  The substance of
         the conversations were strictly work related and
         never pushed or pulled into the political arena.  The
         USAID staff did nothing to disabuse them of this
         notion.

         ¶17.  (SBU) The USAID special projects officer, who
         had worked in the north of Sri Lanka with
         international agencies from early 1994 through mid-
         2002, was struck by the relaxed security atmosphere
         of the LTTE political office in Jaffna and the
         political-civil administration compound in
         Kilinochchi.  In stark contrast to the past, there
         were almost no armed guards or sentries visible.
         Civilian access to these places, particularly in
         Jaffna, seemed much less restricted.  This could
         reflect a growing distinction between the military,
         political and civil administration arms of the LTTE,
         or at least the desire to have such boundaries
         perceived, whether real or imagined.

    LUNSTEAD

`