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31st March 2002

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VIP lounge Iranamadu International Airport
LTTE leader Velupillai Prabhakaran and his wife Mathivathani with Anton Balasingham and his wife Adele Anne on arrival of the guerrilla group's chief negotiator from London via Male.
Contents

LTTE sets more 'issues' for talks

Temporary deproscription and interim administration likely

The Liberation Tigers of Tamil Eelam (LTTE) wants the Norwegian mediators to sort out a catalogue of issues 'to create a conducive atmosphere' before peace talks could begin at a venue in Thailand. 

They include a total withdrawal of the economic embargo on guerrilla dominated areas, lifting of all restrictions on fishing in the North, a de-proscription of the LTTE and the setting up of an interim administration in the North and East for a two year period. 

The Sunday Times learns these issues were raised by the LTTE during talks with Norwegian mediators, a prelude to the peace negotiations, in Kilinochchi last Tuesday.

LTTE leader Velupillai Prabhakaran led his team which comprised Anton Balasingham, his wife Adele Anne and S.P. Thamil Chelvam, leader of the Political Wing. 

The Norwegian team comprised Erik Solheim, Norway's Ambassador Jon Westborg, retired Norwegian Major General Trond Furohovde, head of the Sri Lanka Monitoring Mission (SLMM).

The lengthy 'talks on talks' took place after the Norwegian team arrived in Kilinochchi last Monday. Mr. Solheim and Mr. Westborg returned from the Maldivian capital of Male, only last Sunday after receiving Dr. Balasingham and his entourage who arrived there from Dubai. 

At present, restrictions apply on the movement of goods to guerrilla dominated areas. Only restricted quantities of diesel, petrol, cement and iron rods are allowed. There is a total ban on six items — unlicensed arms/ammunition, unlicensed explosives, remote controlled devices, barbed wire, binoculars/telescopes and penlight batteries. 

According to the Ceasefire Agreement, which both Prime Minister, Ranil Wickreme-singhe and LTTE leader Velupillai Prabhakaran, have signed, there are restrictions on fishing activity in the North. This is what the Agreement says:

"A gradual easing of fishing restrictions shall take place starting from D-day. As of D-day plus 90, all restrictions on day and night fishing shall be removed, subject to the following restriction: (i) fishing will not be permitted within an area of one nautical mile on either side along the coast and two nautical miles seawards from all security forces camps on the coast; (ii) fishing will not be permitted in harbours or approaches to harbours, bays and estuaries along the coast."

The LTTE has since early 2001 been demanding that it be deproscribed as a precondition to any peace talks. It was proscribed after the bomb attack on Sri Dalada Maligawa on January 25, 1998. 

Though the LTTE has declared that it wants an interim administration, this is the first time it has made it known that such a body should have a two year life span. 

The Sunday Times learns that Norwegian authorities will raise the LTTE's catalogue of issues with the Government in the coming weeks.

According to official sources, the Government is expected to concede the demand for de-proscription, at least for a temporary period.

Although the Government is to consider an interim administration, whether the demand for a two-year period will meet Government approval remains to be seen. So are the other issues like a total lifting of the economic embargo and restrictions on fishing in the North.

These sources say the Government response will be conciliatory since it believes the landslide victory at recent local council polls is an overwhelming public endorsement of the peace process.

More details See Situation Report.


Hakeem says Muslims ignored

But pledges he won't damage peace process

By Nilika de Silva
Sri Lanka Muslim Congress Leader Rauff Hakeem at a meeting with Prime Minister Ranil Wickremesinghe has expressed disappointment that the Muslim community had been ignored in the peace-making process so far, but has vowed not to disturb the peace process.

Mr. Hakeem told The Sunday Times he cautioned the Prime Minister that the Muslim community was disillusioned about being ignored in the peace-making process.

"There is some disillusionment that the reference made to the Muslims is in such a way as to lump them together with the residue," Hakeem said referring to the cease-fire agreement between the government and the LTTE.

However, he pledged his party would act responsibly and would not damage the peace process.

"We are not the JVP, we cannot act like the JVP. We need to take a responsible stand," Mr. Hakeem said. "However, the price the Muslim community has to pay for peace need not be a higher price than everybody else.".

Earlier in the week there were reports that Mr. Hakeem had written to the Prime Minister, saying his days in the government were numbered. But he denied writing such a letter.

However Mr. Hakeem who was listed to speak during the second reading of the budget debate did not speak and instead allocated that time to Highways Minister A.L.M. Attaulla.

Mr. Hakeem visited the Eastern Province during the weekend, reassuring the apprehensive and restless Muslim community that their needs would be met. 

Confirming that the Eastern Province Muslims were becoming restive, Mr. Hakeem said: "We believed the Eastern Province is a key to the peace process,. Therefore concrete steps must be taken to enable its people to have faith in the peace process."

"The international monitoring team must make its presence felt on the ground. Complaints should be fully probed and highlighted," he said.

The SLMC high command also took up the matter and Mr. Hakeem assured concerned members that every step would be taken to ensure the security of the Muslims.

Make love, not war
With the bells of the ceasefire ringing aloud, the LTTE also appears to be untying some nuptial knots.

Reports from LTTE-controlled areas say a spree of weddings have taken place there over the past few weeks. 

This came after the LTTE relaxed age restrictions for marriage among its cadres. Now any male above 29 or female above 24 could get married without obtaining any special dispensation.


Tigers keep others out of NE politics

By Ranjith Jayasundera in Vavuniya
Tamil Tigers have sent out messages to rival Tamil groups to keep off from political activities in the north and east, but to carry on with their 'humanitarian' work till the Tigers themselves officially enter government-controlled areas for political activities.

The warning has been sent out to rival Tamil militant groups through LTTE area leaders, as they continue to surrender their weapons keeping with the ceasefire agreement between the government and the LTTE.

Militant groups officially declined to comment on the threat, but said they had got the message to refrain from engaging in political activities in north and eastern regions. The warnings have come amidst ground preparations for the LTTE to enter the government controlled areas for 'political activities' In Vavuniya, LTTE representatives who were due to enter the government-controlled areas on Friday have put off their visit for Monday with a ceremony organised by the Vavuniya business community to welcome the LTTE cadres at Omanthai, the entry point from the LTTE-controlled area to the military controlled area.

Over the week, large sums of money were being collected from businessmen in the area to set the stage to accept the LTTE cadres for political activities. Businessmen were being persuaded to pay sums varying from Rs. 10,000 upwards. Rival Tamil militant groups have already expressed fears about their cadres who are being disarmed.


Sri Lanka wins case against US power firm

By Laila Nasry
An international commercial court has held in favour of the Government of Sri Lanka in an arbitration matter initiated by a US firm claiming damages for US dollars 176.7 million (about Rs. 16.4 billion) over the aborted Trincomalee coal power plant project.

The United States-based Mihaly International Corporation filed a claim before the International Centre for the Settlement of Industrial Disputes (ICSID) alleging that the Sri Lankan government had acted in bad faith when it wrongfully repudiated the agreements involving the 300 MW power project, and appealed for the granting of relief in the sum of US$ 6.78 million as costs to negotiate the project, US$ 120 million for loss of profits and US$ 50 million, exemplary damages.

The government took up the preliminary objection with regard to jurisdiction, stating that Sri Lanka had not consented in writing to submit the dispute to the ICSID for arbitration. It also raised objections to Mihaly USA's legal status to file the petition as the bidder was Mihaly International Canada, which has no right to take the dispute to the ICSID, as Canada had not ratified the ICSID convention. 

In 1991, the government called for bids for a coal power project in Trincomalee. Subsequent to an evaluation process, Mihaly Canada was chosen for further negotiations for six months. A letter of agreement dated September 22, 1993 was issued by the government, expressing satisfaction of the progress made in the project. 

However prior to finalising the project, negotiations ran into difficulties, resulting in the government requesting Mihaly Canada to forward letters of commitment from its lenders and those taking up shares in the proposed project. A Memorandum of Understanding outlined by the government in this regard was one of the milestones Mihaly Canada was required to achieve. 

Although the MOU was submitted, the government took up the position that it was not sufficient commitment from the lenders and the debt and equity participants. Mihaly Canada held the view that a firm commitment could not be made until the project documents were finalised. As a result of this deadlock, the exclusivity granted to Mihaly Canada for the coal power project was terminated. 

Robert N. Hornick, Saleem Marsoof PC, Rohan Perera PC, and Arjuna Obeysekera appeared for the Sri Lankan government.


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