TNAG-1313-FCO40-1688-Future-of-Hong-Kong-views-and-involvement-of-Australia--Cana-1984 — Page 92

CONFIDENTIAL

SECRETARY OF STATE'S MEETING WITH HIGH COMMISSIONERS:

WEDNESDAY, 21 NOVEMBER 1984

SRI LANKA

ESSENTIAL FACTS

Internal Political Situation

1.

Tamil terrorist activity displaying increasing sophistication and geographical range. The All-Party Conference last met end

September. It was due to reconvene on 15/16 November to consider

draft legislation incorporating proposals for constitutional reform, including the creation of a second parliamentary chamber constituted on a provincial basis. But meeting now postponed to mid-December. President Jayewardene told Prime Minister at New Delhi that he hoped final agreement could be reached in December. This seems over- optimistic but negotiations may be going on behind the scenes, we and US have consistently urged need for reconciliation with Tamils.

Prime Minister's Visit to Sri Lanka

2.

Prime Minister's visit in September was postponed. During their meeting at Mrs Gandhi's funeral the Prime Minister told

President Jayewardene she was looking forward to visiting Sri Lanka

at Easter 1985. However, No 10 are not in a position to give the

Sri Lankans firm dates for the visit.

Aid

3.

1983/84

Capital Aid

£ 30.5m

Technical Co-operation

£ 1.8m

Total disbursements

£ 32.3m

This figure is expected to drop to £10m per year now that the

Victoria Dam is completed. Disbursements in 1985/86 are unlikely

to exceed £8m (including £2m Technical Co-operation).

CONFIDENTIAL