By Colombo Telegraph –

“Major Sri Lankan Papers April 15 have head lined a report (First published in the April 3 London Observer) which quotes both Indian High Commissioner J.N. Dixit and an LTTE spokesman in Madras that Indian Prime Minister Gandhi agreed in late July to pay the Liberation Tigers of Tamil Eelam a monthly stipend to compensate for lost Tax revenues following the signing of the Indo-Sri Lanka accord.” the US Embassy Colombo informed Washington.

Gandhi and Prabhakaran

A Leaked US diplomatic cable, dated April 5, 1988,  updated the Secretary of State regarding the the Indo-Sri Lanka accord and the Indian – LTTE secret  package.The Colombo Telegraph found the related leaked cable from the WikiLeaks database. The cable subject was “Indian payoff to LTTE revealed”.

The Embassy wrote; “The monthly payment, reports say, was to have been five million Indian Rupees (or nearly $400,000). An Indian HICOM officer has confirmed that some money was given the Tigers in late July. Apparently only its pledge to participate in Interim Administrative Council In late September and the deal fell through.”

“An unnamed LTTE spokesman in Madras in quoted as saying that the payment was part of a larger secret package of guarantees which Gandhi offered LTTE leader V. Prabhakaran in July to get him to agree to the bilateral accord.” the Embassy further wrote.

Read the cable below for detail package;

O 051045Z APR 88
FM AMEMBASSY COLOMBO
TO SECSTATE WASHDC IMMEDIATE 7892
INFO AMEMBASSY NEW DELHI PRIORITY
AMCONSUL MADRAS PRIORITY

UNCLAS COLOMBO 02367 

LIMITED OFFICIAL USE 

E.O. 12356;  N/A
TAGS: PREL PINS IN CE
SUBJECT:  INDIAN PAYOFF TO LTTE REVEALED 

REF:  COLOMBO 1755 

¶1.  MAJOR SRI LANKAN PAPERS APRIL 5 HAVE HEADLINED
A REPORT (FIRST PUBLISHED IN THE APRIL 3 LONDON
OBSERVER) WHICH QUOTES BOTH INDIAN HIGH COMMISSIONER
J.N. DIXIT AND AN LTTE SPOKESMAN IN MADRAS THAT
INDIAN PRIME MINISTER GANDHI AGREED IN LATE JULY TO
PAY THE LIBERATION TIGERS OF TAMIL EELAM A MONTHLY
STIPEND TO COMPENSATE FOR LOST TAX REVENUES
FOLLOWING THE SIGNING OF THE INDO-SRI LANKAN ACCORD.
THE MONTHLY PAYMENT, REPORTS SAY, WAS TO HAVE BEEN
FIVE MILLION INDIAN RUPEES (OR NEARLY $400,000).
AN INDIAN HICOMM OFFICER HAS CONFIRMED THAT SOME
MONEY WAS GIVEN THE TIGERS IN LATE JULY.  APPARENTLY
ONLY ONE PAYMENT WAS MADE BEFORE THE LTTE RENEGED
ON ITS PLEDGE TO PARTICIPATE IN THE INTERIM
ADMINISTRATIVE COUNCIL IN LATE SEPTEMBER AND THE
DEAL FELL THROUGH. 

¶2.  AN UNNAMED LTTE SPOKESMAN IN MADRAS IS QUOTED AS
SAYING THAT THE PAYMENT WAS PART OF A LARGER SECRET
PACKAGE OF GUARANTEES WHICH GANDHI OFFERED LTTE
LEADER V. PRABHAKARAN IN JULY TO GET HIM TO AGREE
TO THE BILATERAL ACCORD.  OTHER PARTS OF THE PACKAGE,
ACCORDING TO THIS REPORT, INCLUDED:
-
-- AN ASSURANCE THAT THE LTTE WOULD FORM A MAJORITY
-  OF THE INTERIM PROVINCIAL COUNCIL FOR THE NORTH
-  AND EAST.  (COMMENT:  THE LTTE WAS GIVEN SEVEN
-  OF THE TWELVE SEATS IN A DEAL WHICH WAS ANNOUNCED
-  AND FELL THROUGH THE SAME DAY, SEPTEMBER 28, 1987.)
-
-- ONE BILLION INDIAN RUPEES FOR REHABILITATION OF THE
-  JAFFNA PENINSULA WHICH APPARENTLY WAS TO BE
-  FUNNELED THROUGH AN LTTE-DOMINATED INTERIM
-  ADMINISTRATIVE COUNCIL (COMMENT:  THIS APPEARS TO
-  BE IN ADDITION TO THE AID WHICH INDIA PLEDGED
-  PUBLICLY AT THE DECEMBER CONSORTIUM MEETING IN
-  PARIS.  AT THAT MEETING, THE GOI OFFERED US $40
-  MILLION (ABOUT 520 MILLION INDIAN RUPEES) FOR
-  REHABILITATION WORK IN THE NORTH AND EAST.)
-
-- HELP, AFTER AN INTERIM ADMINISTRATIVE COUNCIL
-  WAS IN PLACE, IN SETTING UP A TAMIL POLICE FORCE.
-
¶3.  EMBASSY COMMENT:  LEFT UNSAID IS ANY INDICATION
WHETHER THE PACKAGE SUGGESTED ABOVE IS STILL ON THE
TABLE IN THE GOI-LTTE TALKS WHICH APPARENTLY HAVE BEEN
GOING ON FOR SOME TIME.  ACCORDING TO JOHN RETTIE,
THE LOCAL BBC CORRESPONDENT, TALKS BETWEEN THE TIGERS
AND THE GOI BEGAN IN LATE FEBRUARY IN MADRAS.  THEY
WERE BROKEN OFF RECENTLY, HE SAID, BUT ARE DUE TO
BEGIN AGAIN NEXT WEEK.  END COMMENT. 

SPAIN