ECT: A toss between confrontation and compromise!

People placing their signatures on postcards during a protest campaign held by the railway unions on Monday against what they called a move to sell the East Container Terminal of the Colombo Port (Pic by Thushara Atapattu )

By I. P.C. MENDIS

States and Governments exist and coexist internationally on the basis of mutual trust, understanding, good-will and cooperation. If any state or government chooses to work outside these norms, it is normally classified as a Banana Republic and generally finds itself isolated with none to care for it. If they choose to be so isolated, they should be confident of going it alone or have clandestine backing of some super-power. North Korea and Cuba for example are virtual dictatorships/authoritarian and their populations perfectly regimented to face any situation. Sri Lanka with its divisive forces and elements bred in democratic traditions, cannot afford to be North Korea or Cuba. Nevertheless, whether one likes it or not, its history is replete with treachery. One need not go so far, but the way some of our politicos behave and the frequency with which they switch political ideologies and affiliations could be ample testimony to prove the point.

The EasternTerminal

There is no question that covenants and agreements which we have entered into with other countries have to be scrupulously honoured, if Sri Lanka is not to be considered “a pariah state”. If we vitiate or digress, we lose faith, face and confidence with the entire international community, adversely affecting, inter alia, trade and commerce. This is not to say that the door is shut for any re-negotiation of any provision on expressly good compelling grounds. A complete abrogation of the Eastern Terminal MOU ex parte, as some do agitate, is not only out of the question but out of our reach, without adverse consequences. Perhaps that privilege is exclusive to powers which can boast of nuclear strength. They can even withdraw their contribution to the UN, withdraw from membership of its Agencies, and even compare some of them with cesspools and still trot about unscathed! Sri Lanka is not that fortunate — those who strain their muscles need to realise.

As for the Eastern Terninanal,, what is baffling is that although there were a few whimpers, here and there, it was only a few days ago, after permitting opposing sections to gather momentum and work themselves to a crescendo — that the government through the President, clearly explained fully at Walallawita, the government’s position that it is now carrying the Yahapalana baby, re-negotiated by him with the Indian Prime Minister.

It is indeed most fortunate that the latter did not refuse to budge or choose to ask for a “quid pro quo” as it happened in the case of the Hambantota Port and the Port City, where we had to concede a second 99-year lease and an additional block respectively. Mattala Airport was saved by the skin of its teeth !

President’s Dilemma

Apparently the re-negotiated formula (Jt. Stock Co.) had either been initiated by President Gotabhaya or agreed to mutually at the summit, and it is definitely not within the norms of international decorum and decency to go back and haggle on that issue, however strong the opposition to it is locally..The country’s image is at stake. He would not certainly expect his people here to make him look ridiculous in the eyes of the Big Brother across the Palk Straits, and more-so the international community. .Sri Lanka’s honour and pride are at stake, and his people need to stand by him and strive to understand and compare the re-negotiated formula with the Yahapalana Agreement, as to which is more beneficial or less dangerous. Many of those who shout hoarse now had maintained a stoic silence when the MOU was signed, and hence ought to share the responsibility. The opposition seems to be of a mostly political nature than a patriotic one.

India has unequivocally made its presence felt when it had no second thoughts of invading Sri Lanka through its armed forces, euphemistically called the IPKF,.preceded by the infamous “parippu “drop! President JRJ had his arm twisted into the 13th Amendment, with which we are now stuck – a white elephant- despite India failing to perform its part of the deal.. Former East Pakistan is now Bangladesh, “courtesy” India ! The “sandos” ought to realise. Sri Lanka has by necessity to be tactful and diplomatic without confrontation and bogus rhetoric.

Prime Minister Modi seems a different kettle of fish to Indira and Rajiv Gandhi, and we have to capitalise on his current goodwill. He could mean business if he wants to with the US on his side. In re-negotiating it would be beneficial if we were to point out the trade balance in its favour, and the fact of having already released our oil tank farm in Trincomalee, and a section of the retail oil business, as also the pronounced Indian business interests already here.

Compromise Solution

Without disturbing the already mutually agreed arrangement for a Joint Stock Company,some of the fears expressed by the opposing forces here could possibly be allayed, with the proposed company being registered as an unlisted company, with a strict embargo on the sale of any minority shares to any other party other than the Port Authority, the Chairman to be from the majority shareholding,(Port Authority), the Managing Director (CEO) to be nominated by he Investor(s) with the nod from the Board of Directors, the majority on the Board to be from the major shareholding, one of whom should be the nominee of the Minister of Finance. If there are to be more than one shareholder among the minority group, they could form a consortium and provide a written agreement enshrining these and other conditions. ( The President had hinted on the possibility of there being more than one minority shareholder). Such a solution would possibly take the wind off the sails and satisfactorily end the impasse.