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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 9 No. 329               

US opposes $2 billion IMF loan to Sri Lanka: LTTE global macro effect displayed

Daya Gamage – US National Correspondent Asian Tribune

Washington, D.C. 15 May (Asiantribune.com): United States Secretary of State Hillary Clinton declared on Thursday, 14 May in Washington that until there is a resolution of the conflict this was not the appropriate time for Sri Lanka to receive the $1.9 billion International Monetary Fund loan

The U.S. which has more than 60% stakes in the IMF has almost sweeping powers in the IMF which most developing nations receive stand by loans.

On May 1 the UN Security Council refused to withhold $1.9bn funding to Sri Lanka, despite growing international pressure for the funds to be delayed. The LTTE global network was largely responsible for the pressure. Calls to withhold the funding were made to encourage the government in Colombo to do more to help civilians caught up in the fighting with the Tamil Tigers. The council's president, the Mexican ambassador Claude Heller, said all 15 members agreed that such a move, or other steps to punish Sri Lanka, was unnecessary, according to Reuters. It came after Colombo emphatically rejected British and French calls for a ceasefire in its military campaign against the Liberation Tigers of Tamil Eelam (LTTE).

However, British Foreign Secretary Milliband met Secretary of State Clinton on May 1 to discuss the IMF loan to Sri Lanka.

U.S. Secretary of State Hillary Clinton on Thursday said "is not an appropriate time" to talk about IMF's $2 billion loan to Sri Lanka.

After Britain, the United States is the second country which appears to opposing the massive loan from the International Monetary Fund to Sri Lanka, which is currently under consideration.

"This is a very troubling humanitarian crisis, and we have been focused on it and trying to convince both sides to cease their hostilities. We have also raised questions about the IMF loan at this time," Ms. Clinton told State Department reporters Thursday in response to a question. "We think that it is not an appropriate time to consider that until there is a resolution of this conflict. And that's what we're focused on trying to help bring about," Ms. Clinton said.

She was addressing a joint press conference with visiting Malaysian Foreign Minister Y.B. Datuk Anifah bin Haji Aman.

Observing that the U.S. has been very clear in its statements — the most recent one by the President — that there needs to be a cessation of the hostilities and humanitarian relief to be provided to the people who are trapped in the fighting. "We've called on both sides to cease their hostilities. And we've asked that both sides permit humanitarian relief to be delivered, and at the very least, a high-level humanitarian mission to make an assessment of what relief is necessary," Ms. Clinton said.

The LTTE global network since March this year has mobilized expatriate Sri Lankan Tamil Diaspora in the United States, United Kingdom, Australia and other western nations to block the IMF from extending this $1.9 billion loan.

On March 21 a large group of expatriate Tamils staged a protest front of IMF in Washington, D.C. urging it to deny funds to Sri Lanka.

Deputy Division Chief of the IMF’s External Relations Department Jeremy Mark received a memorandum prepared by LTTE-sponsored Tamils Against Genocide. Mr. Mark listened to the protesters who alleged genocide of Tamils in Sri Lanka.

Previously there were two demonstrations urging the IMF to deny the loan.

The Tamil Tiger lobby has been active among U.S. Congressmen and State Department officials to bring pressure on the IMF to suspend the loan to Sri Lanka.

The global LTTE network has been able to convince the West policymakers and those who are influential with policymakers that Sri Lanka will use the $1.9 billion loan for military purposes and to perpetuate the suffering of the minority Tamils in Sri Lanka.

Secretary of State Hillary Clinton’s Thursday statement opposing the $1.9 billion IMF loan to Sri Lanka was the culmination of the several months’ long global campaign to block IMF funds to Sri Lanka.

Despite the LTTE defeat in Sri Lanka, Asian Tribune always was convinced that this micro organization maintains a macro effect globally, and the IMF loan episode clearly manifest how the LTTE has positioned the Sri Lanka Tamil Diaspora to its advantage proving its superiority in overseas public diplomacy and strategic communication which the Government of Sri Lanka’s Foreign Ministry and its overseas diplomatic establishments are unable to match.

Eighteen months ago the U.S. Congress suspended a US$200 million Millennium Fund for Sri Lanka citing human rights situation. Senate Judiciary Committee Chairman Patrick Leahy was instrumental in blocking this grant to Sri Lanka.

During the same time Senator Leahy was instrumental in withdrawing military assistance to Sri Lanka.

Asian Tribune previously in several reports disclosed based on U.S. Congressional Budget Documents that the United States had slashed economic assistance to Sri Lanka since 2006.

A letter addressed by onetime Sri Lanka’s Attorney General Siva Pasupathy – a known legal counselor to the LTTE now domiciled in Australia – to the Treasurer of the Australian Parliament discloses the line of argument the Global network of the LTTE has developed to convince the Western nations to withdraw their cooperation and goodwill toward Sri Lanka.

Following is the letter written by Mr. Pasupathy arguing why the IMF loan should not be extended to Sri Lanka:

The Hon Wayne Swan MP
The Treasurer
Parliament
Canberra ACT 2600

Dear Treasurer,

IMF Emergency Support Loan-US$ 1.9 billion

We have no doubt that your office would be aware of the application made by the Sri Lankan government to the IMF for the above loan. We understand that the loan is to cover the costs of immediate government functions and to pay for post-conflict resettlement.

Our organization, the AHRV, is a registered human rights organization, which seeks to give a voice to the voiceless when their human rights are violated. We understand that the question of whether the loan would achieve the intended objectives and also, whether the government observes the rule of law and complies with human rights, are relevant factors in the determination of an application to the IMF of a loan of this nature.

The US based Human Rights Watch (HRW) has already expressed its deep concern that the loan, which has been sought, will not achieve the intended objectives of the Sri Lankan government. The HRW states that the “plight of the internally displaced persons has been exacerbated by the Sri Lankan government’s decision in September 2008 to order most humanitarian agencies out of the Vanni. The government’s own efforts to bring in food, medical supplies, and other relief with a minimal role for the United Nations have been insufficient. Internally displaced persons who escape LTTE territory to what they hope is safety within government-controlled areas have been placed in "welfare centers" that are effectively detention camps”. In a recent report of 9 April 2009, the HRW said that the "Sri Lankan government should stop firing heavy artillery into the "no-fire zone" in the northern Vanni area where some 100,000 civilians are trapped by the separatist Liberation Tigers of Tamil Eelam, causing skyrocketing casualties" and further said that the "so-called no-fire zone is now one of the most dangerous places in the world".

The US Secretary of State, Ms Hillary Clinton, told Sri Lanka’s President, by telephone that Washington was "deeply concerned about deteriorating conditions and increasing loss of life in government designated safe areas."

The UN High Commissioner of Human Rights, Ms Pillay, warned, "Certain actions undertaken by the Sri Lankan military and by the LTTE (Tigers) may constitute violations of international human rights and humanitarian law".

The 17th Amendment to the Constitution, which was passed in 2001, was to depoliticize senior appointments to the judiciary and the public service and to curtail the arbitrary power of the executive to appoint persons, who readily comply with even illegal executive directions. However, the failure of the government to comply with this law, has led to proceedings in the Supreme Court which has still not reached finality, mainly due to repeated applications for postponements by the government. The Centre for Policy Alternatives has stated that the "intentional subversion of the 17th Amendment to the Constitution poses a threat to the Rule of Law in Sri Lanka".

The Bandaranaike-Chelvanayakam Pact of 1957 and the Dudley Senanayake-Chelvanayakam Pact of 1965, constituted a solemn agreement for devolution of powers, between the Prime Minister at the time and the parliamentary leader of the party of the Tamils. Both pacts were later unilaterally abrogated by the government and never implemented. This was followed by a series of riots against the Tamils, non-violent civil disobedience and the demand for self-determination by the Tamils and ultimately to Tamil militancy. Even the present government established an All-Party Representative Committee, with a view to recommending a structure for devolution of powers. A majority report recommending such a structure was submitted to the government about two years ago. The only outcome was the explanation sought by the government from some of its nominees on the Committee as to why they signed the majority report. We have no doubt that this report too, like the two earlier pacts, has been consigned to the dustbin of history.

The New York-based Genocide Prevention Project has placed Sri Lanka among the eight "Red alert" countries, which included Afghanistan, Iraq, Sudan, Congo and Somalia, as currently experiencing genocidal conflict. In the light of the circumstances set out above, we would kindly request you, as a member of the Board of Governors of the IMF, not to approve the grant of the loan and to persuade other members to do likewise. I am also attaching printouts, from which I have reproduced or referred to, some of their contents in the body of this letter.

Yours sincerely
(Shiva Pasupati)
President, AHRV & Formerly, Attorney General of Sri Lanka

Sri Lanka needs to develop a more cogent overseas public diplomacy campaign and strategic communication to negate the arguments the global network of the LTTE is engaged in to avoid a situation that it faced with the declaration Secretary of State Hillary Clinton made discouraging the IMF extending the $1.9 billion.

- Asian Tribune -

Comments

Secretary Clinton has been

Secretary Clinton has been making anti-Sri Lanka statements for sometime and praising and moving closely with other anti-Sri Lankans leaders from UK, France and Norway.

As such, this news did not come as a surprise to me.

Ironically, LTTE has been trying to economically stranglehold Sri Lanka for several years and this action by US is also playing into the hands of terrorists.

Sri Lanka is not going to be made bankrupt by USA. Most Western economies are indebted up to 85% of their GDP and comparatively Sri Lanka is not any worse off. Only several western nations like Australia is better from that point of view.

Sri Lanka has not bowed down to LTTE terrorism and we are unlikely to bow down to American economic terrorism.

However, I am surprised at this action of the Obama administration. It promised a change that never happened. Very conflicting signals are coming out of Obama administration. I am sure I am not the only person confused by the actions of the Obama administration.

A nation of the size of USA should not have behaved in this fashion to a tiny democracy in the world. If US want to flex its muscle, they have to find a matching country. What they are doing to Sri Lanka is a shameful act. This is called collective punishment in simple terms and terrorism in other terms (similar to holding a gun to the head)

Dear me how could of all the

Dear me how could of all the people Siva Pasupathi do this? He was the Solisitor General of Sri Lanka and one of the respected persons by all communities. Sinhalese never looked at him as a tmail but only as a respected public servent. Does this mean during his tenure of office he was bias. Is he still drawing the government pension which he is entitled to? You call this integrity?

This Pasupathy person was

This Pasupathy person was the Solicitor General of Sri Lanka!
What traitors they be...and all for a mythical dream.

Sadly, the US led by Mme. Hillary Clinton is on the wrong side of the moral argument in this case, and will be soon made to feel quite embarassed when the IDPs start speaking up!

All for a bit of filthy lucre...

The money Hillary got from

The money Hillary got from Tamil Terrorists is talking here. This kind of shameless pro-terrorists act by Obama administration will most certainly not be viewed favorably by 20 million Sri Lankans. US has very successfully antagonized Sri Lankans who used to have a positive view of US in the past. What value does US get out of this pro-terrorist act, only the money paid by Tamil Terrorists for Clinton knows this.

The world is changing and it

The world is changing and it is changing fast.

China surpassed US economicaly. We already see the results of that.

Thie above news is not a suprise when it came from a politician who has good terrorists and bad terrorists in the world. The current US administration is sending confusing signals in the global affairs. Almost look like there is no clear direction but live by day to day in foreign policy.

Now we will find ourselves fighting an external enemy since the internal enemy is at the bay. That includes people like Ranil Wickramasingha.

Those who follow buddhism knows it is more imporatant to purify our lives internally than externally.
It is not any different here in politics.

Inherent in Gamage’s

Inherent in Gamage’s constant recommendation that Sri Lanka should “develop a more cogent overseas public diplomacy campaign and strategic communication to negate the arguments...” of the LTTE’s global network is the assumption that ‘negating’ an opposition’s arguments is the most critical to effective selling of one’s ideas, positions and policies to target audiences. This is not quite so. The tactic of negating the arguments of an opposition or bad mouthing the products or services of one’s competition is dubbed ‘negative diplomacy’ or ‘negative marketing’ and the latter practice is often discouraged by large marketing firms including IBM. Expectations of diplomatic and public audiences are vastly different from the expectations of juries or judges. The former are in search of solutions and the latter a determination. Whether selling a complex concept to an audience of top decision makers at the IMF, or selling fish at the Colombo fish market, the primary emphasis when selling must always be on why your concept or your fish is the absolute best - not a fishy concept. Public diplomacy / marketing strategies for most part should be based on positive reinforcement and not on negative (‘negate’) arguments that bash opposition. The latter approach is a huge turn-off to sophisticated audiences and often stands only to hurt one’s position and not strengthen.

While I completely support Gamage’s assertion, Sri Lanka should “develop a more cogent overseas public diplomacy campaign and strategic communication ...” but not to “negate arguments” of LTTE networks, but to promote / justify the government’s policies, enhance the nation’s image and most importantly, build relationship networks with Western-US power players.

However, in the present reality, building favorable relationships and a positive image with the West-US will be a tiresome uphill climb for a government which has lost significant credibility with these nations. Yet, it is a climb that the government can attain provided it does the right things. The key to a win-back strategy of the West-US is not a “cogent overseas public diplomacy campaign” but a serious and demonstrative effort at evolving a comprehensive solution to the ethnic problem. As professional marketers in business say: you can have the smoothest sales force, a brilliant sales plan, and the best logistics, but unless you have a good product to sell, you ain’t got nothing! You can have all the cogent diplomacy campaigns you want, but without a credible solution plan for the ethnic challenge, you ain't got nothing. Only upon evolving such a plan will an effective diplomacy campaign would be needed to sell the plan. Public diplomacy is not about ‘negating arguments’ but all about promoting life-enhancing solutions.

With regard to the unfavorable actions by the West-US on GoSL, it is most likely that the screws they began to put two years ago will continue to be further tightened until time the GoSL submits a cohesive set of solutions to the lingering national problem. Carefully note Secretary Clinton’s emphasis about the IMF loan: "We think that it is not an appropriate time to consider that until there is a resolution of this conflict. And that's what we're focused on trying to help bring about...” – a RESOLUTION to a nagging 60+ years old problem. Hope the emphasis on ‘resolution’ registers clearly with those who criticizes the Obama administration and the West.

What Pasupathy has stated is

What Pasupathy has stated is that the organisation to which he belongs, the AHRV, is a human rights organisation that aims to give voice to the voiceless. There is nothing anti-national in giving voice to the voiceless, aiding the helpless whose rights are being trampled, etc. And Prez Rajapakse, a human rights lawyer(!), (figure out that one), should not have problems understanding this stance. To suggest that Pasupathy's actions are anti-national, etc., is as absurd as to suggest that Prez Rajapakse is anti-national if he were a practising human rights lawyer and representing the helpless people whose rights, ironically, are now being trampled by Prez Rajapakse's govt.; A government headed by a human rights lawyer.

Numerous international organisations, and international figures, including the U.S. Secretary of State, Hilary Clinton, have suggested that the aid needed by Sri Lanka could be linked to progress on a settlement, etc. That is all. Since the GoSL has been dragging its feet on settlement issues since soon after Independence, this is one way to make progress on a permanent settlement that will finally enable all communities in the country to live peacefully as brothers and sisters.

Why waste time with IMF Look

Why waste time with IMF Look for other options.

USA and UN are not the god almighty afterall they have many issues there only people living thers knows the groung situation.

Let's find other options.Sri Lanka lived with all these truamas for 30 years and even tsunami times.

Why not now?Let these clean gentlemen go to hell.

Theres are other options avialable .Let's get out of depending on the west.

Sri Lanka has learned its lesson and we know who our friends and foe are .

Western world will not do anything to the benefit for others in reality .It has been proved.It is a market driven world there not like Asia where nomatter what human qualities surface amidst any calamities.

IMF and UN and many other organizations are just a waste of time for small nations.

If the concern is

If the concern is "humanitarian", the first thing that the UN Security Counsel should have done this year was to take up the Israeli invasion of Gaza which took many innocent lives. The news is those who did not want to discuss it at that time, now are ready to do so in exchange for taking the Sri Lankan issue up on the table. Same players seem to have taken Sri Lankan issue "personal", way too personal. This is the same cowboy diplomacy that then-candidate Obama referred to when Mrs.Clinton said Iran would be obliterated if it used its nukes against Israel.

Sri Lankan Govt must do what is right by its people since she is the one who has been suffering for years from the LTTE terrorism funded mainly by its supporters living luxurious lives in the "West". Not surprisingly the LTTE wants the same thing that the righteous west wants; a cessation of hostilities, peace-talks, intervention by IC, etc, etc. Looking at the LTTE websites, one may get the wrong impression that they are the official websites of some western countries; full of various statements made by, from POTUS to the associate professor of a university no one has heard of.

However, compared to most other western countries, the USA has, for the most part, helped Sri Lanka fight the LTTE terrorism. Yes Mr.Gamage, you are right; Sri Lanka needs a strong overseas public diplomacy campaign to fight the "negatives" by the LTTE supporters. If the LTTE falsely accuses Govt of killing 100 civilians and at the same time the Govt denies it, what would you think take roots mostly in the minds of western people? A simple denial wouldn't work. The response should be stronger than the accusation.

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