Features
Battling the Tea Board and vested trade interests
“Tea Hub” was a toxic proposal that would have hurt pure Ceylon tea
(Excerpted from the Merrill. J. Fernando autobiography)
My fervent appeals to the Tea Board for assistance to local brand builders to develop own brands were, as I said earlier, supported by Victor Santiapillai. My strategy proposal to launch ‘Dilmah’ in Australia as a fully Sri Lankan-owned tea brand was the first such initiative presented to the Tea Board. The Board was enthusiastic and voted the funds I solicited – approximately Australian Dollars 300,000 (Rs. 5.9 million then).
However, the Secretariat bureaucracy, without consulting me, submitted a paper proposing that my project, and all future projects, should be funded on 50/50 basis, between the Board and the exporter. This was, actually, a great blow to my plans, as a tea bagging project is an enormously costly exercise, requiring extensive investment in plant and machinery.
The opposition to my project from the Secretariat is demonstrated by one single fact; the Dilmah initiative went before the Funding Committee – consisting of Government nominees of the Board – no less than 21 times, before it was approved! The many projects which were approved at a single sitting disappeared from view within a short space of time. The Dilmah project, approved so grudgingly by this Funding Committee, is the only such initiative still in successful operation.
Finally, following comprehensive clarifications on brand building and launching expenditure submitted by me to the Tea Board, supported by Santiapillai, as I have mentioned earlier in this chapter, it was agreed that such costs would be shared on an equal basis by the EDB, Tea Board, and Dilmah. Despite the delayed approval, my project continued to be plagued by the tardiness and active opposition by key members of the Secretariat.
The Tea Board share of the promotional costs was unduly delayed, causing me and my distributor in Australia serious embarrassment. Dr. Wickrema Weerasooria, then High Commissioner for Sri Lanka in Australia, had to intervene several times on my behalf with the Chairman of the SLTB, though his appeals were stifled by the Secretariat. At no stage in these painful exercises did I appeal for assistance to the Plantations Minister, Major Jayawickrema, who had ceased to be my father-in-law 12 years previously.
Today, Dilmah carries the message of Pure Ceylon Tea to over 100 countries worldwide. Had I succumbed to the animosity generated against the Dilmah project at the outset, today there would not be one locally-owned label, selling successfully in overseas markets dominated by multinationals. As opposed to that, over the decades the Tea Board has invested millions of dollars, fruitlessly, in a multiplicity of tea promotional projects, but Dilmah remains the only success story, proving beyond doubt that my company was the right partner then for the EDB/SLTB project, to represent Pure Ceylon Tea in an overseas market.
More conflict
One of the main reasons for my numerous conflicts with the long-established trade bodies was their general resistance to change and to my insistence on a more proactive approach from those bodies. The industry in Sri Lanka, on account of its vulnerability to both internal and external dynamics consumption patterns, international financial upheavals, regional conflicts and many more is a highly-volatile system. Our trade governance and regulatory bodies seemed to be entrenched in an archaic mindset, with a singular inability, or reluctance, to offer proactive responses to predictable market disruptions. The tendency seemed to be to jealously guard the status quo.
Once, in a move to change the entrenched ‘clubbiness’ of the CTTA, we enabled the election of Lofty Wijeratne, then a Director of Carsons, as Chairman. Despite requests from many members of the trade, I steadfastly refused to consider the position myself. Lofty, too, was subject to many pressures from vested interests within. I recall a request he made to me, obviously due to compulsion from established
brokers, not to support Ajit Chitty’s application for a tea broker’s license. I disagreed and persisted in my support of Ajit, as I was of the firm view that the trade should encourage the emergence of more local companies. Finally, Ajit entered the broking fraternity with Eastern Brokers and made a very good thing of it.
I am also aware that during this period, when I was involved with numerous issues impacting on the interests of the local exporter, CTTA representatives had been instructed by the relevant British masters to oppose any and all of my initiatives and proposals. In the many years of its existence, the CTTA has, on the whole, done a reasonable job in protecting and fostering industry interests. However, my view is that the constant pressures brought on it by a wide spectrum of industry-related parties and entities has, in recent decades, prevented it from a strict and objective pursuit of its mandate.
When the British dominated every aspect of the tea industry, there was no dissent or conflict of interest, as there was tacit agreement that the CTTA and every other trade-related body was committed to the protection of British interests. The Chamber of Commerce too was not free of this type of internal manipulation and inbuilt politicking. One year I was appointed to the committee of the Chamber. At my very first meeting, a very senior member with strong interests in banking brought in a related issue which was not on the agenda. My objection to the discussion of this item, on those very grounds, was accepted and the matter was dropped immediately.
Within two weeks, Suneetha Jayawickreme, who was then Secretary of the Chamber, called me to advise that a regulation of the Chamber precluded two individuals from the same group of companies from serving on the committee simultaneously. He pointed out that Jayasingham of Harrisons & Crossfield and I were both on the Harrisons Travel Services Board, and that in compliance with the Chamber stipulation, I should resign. I immediately did so, without even waiting for a written confirmation of the discussion. I was actually amused that interested parties had used a legitimate convention, though the association was tenuous, to ease out an individual who was, obviously, not prepared to toe the general line.
I must also state that the criticisms I have leveled against all these boards is in connection with their administration and trajectories as of the early 1970s and across the ’80s. That era is now history, though the consequences of both inaction and misdirected strategies of that time were long-term impediments to the development of the country’s tea export trade. The thinking within those entities is far more balanced and enlightened now, the Tea Exporter’s Association excluded, for reasons which I will explain in a subsequent chapter.
An attempted reconciliation
When a group of traders decided that their parochial interests should supersede industry welfare in its totality, and sought to launch the Tea Exporters’ Association (TEA), I believe that all traders, without exception, supported the move. Several senior members invited me to join but I refused, giving them very good reasons for my opposition to it. One of the members was the late Michael de Zoysa, then Managing Director of Lipton and for many years a prime mover in the CTTA.
He and I frequently disagreed with each other on a number of important trade-related issues. After his retirement from Lipton also he approached me on several occasions and tried to persuade me to join the TEA, on the grounds that the trade was now thinking differently and that they would like to consider my views seriously and work together for common goals.
At first I refused to engage in any discussion on the matter but, finally, after several personal approaches by Michael, I agreed to meet a six-member team of trade representatives led by him. During his years at Lipton, our frequently-conflicting views on common trade-related issues had led to a certain frostiness in our relationship, although we had known each other for years.
I appreciated that as a senior manager of a multinational trader, which he had joined straight from school, he was obliged to guard its interests which, however, were generally inconsistent with those of the local exporter of a locally-owned brand. Things between us changed substantially after his retirement, though, and our relationship became more relaxed, particularly because, once freed from the professional obligation of serving the narrow interests of a multinational, he was able to take a more objective and liberal view of the trade.
Fate, however, does not respect human motives or human plans. Tragically, Michael died suddenly and, instead of chairing the meeting that was scheduled to be held at my home on September 30, 2019, I attended his funeral on that day. Along with Michael, the possibility of a reunification of divergent tea trade interests was also laid to rest. Despite our differences, we treated each other with respect, as we were both men with strong opinions on subjects that were also our passion.
The tea hub – a toxic proposal
In my view, in no other concept or proposal, is the venality of many of our tea traders and their submissiveness to colonial and multinational domination, as clearly demonstrated, as in the arguments that have been offered in support of the ‘Tea Hub’ hypothesis. In essence, the Tea Hub concept is an initiative to import cheap Black Tea to Sri Lanka, for blending with our tea and for re-export thereafter. The component of cheap, imported tea in the blend, would reduce the cost of the resulting export and improve the profit margin of the local packer. This concept has a long history.
The cloud in the horizon
In 1979, the then Minister of Trade, the late Lalith Athulathmudali, visited the Rotterdam factory of Van Rees, a multinational trader. It was a centre for the bulking, blending, and packaging of cheap tea from multiple auction centres, sold thereafter in the Netherlands and various other European markets. Minister Athulathmudali, ignorant of the background realities of the local trade, had been deeply impressed by the scale of the Van Rees operation and, on his return, strongly advocated the setting up of a similar facility in Sri Lanka. When his views were made public, I vehemently objected to the proposal, giving reasons for my stance.
Athulathmudali was adamant but, fortunately, the then President, J. R. Jayewardene, summoned me, obtained my views, and immediately decided to shelve the idea. To the best of my recollection that was the first public airing of the Tea Hub concept. Since then, from time to time, the proposal has surfaced, on the initiative of traders who believe that selling Ceylon Tea cheap is the way forward.
I also recall that in late 1988, R. M. B. Senanayake, former civil servant and then General Manager of Jafferjee Brothers, in a newspaper article, suggested that whenever Ceylon Tea prices move up, exporters should be permitted to import cheaper tea for blending, in place of Tea. My reaction to it then was consternation, that a man who -lave known better should publicly advocate a policy with such potential for damage to the local tea industry.
New developments
On August 1, 2011, the trade members of the Tea Council of the Sri Lanka Tea Board, acting on behalf of the Tea Exporters’ Association submitted to the Tea Council of which I was then Chairman proposal to lift the existing restrictions on the importation of Orthodox Black Tea. Whilst as Chairman of the council I did not express my opinion on the matter, I refuted the proposal in my personal capacity as an exporter and in the larger interests of the tea industry the country.
In the many adverse opinions that were expressed regarding my position on this issue, and of my subsequent vocal and active opposition to the proposal, what was conveniently ignored by all my opponents was that liberalization of Black Tea imports would be greatly advantageous to my own label, ‘Dilmah’. With the global outreach of that brand and the marketing and distribution network which reinforced its overseas sales in over 100 countries, I stood to gain more than any other local exporter by the liberalization of Black Tea importation.
The provision to import specialty tea, not traditionally manufactured locally, is permitted by statute. If I recall rightly, such importation was first permitted in 1981 and the relevant conditions revised in 1994. The 1981 provision was withdrawn when Montague Jayawickrema, then Minister of Plantations, on a visit to Egypt with a trade delegation, ascertained for himself that exporters had been blending cheap Chinese tea with Ceylon Tea in order to reduce the blend cost and were providing the Egyptian market with a very low quality product, which was being perceived by the consumer as Ceylon Tea.
Ironically, that is a perfect example of the proposed methodology of the Tea Hub and, also, its likely outcome. There is no argument against the limited facilities available to the serious exporter for the importation of specialty tea such Darjeeling, select Assams, or other non-traditional varieties, not normally produced in this country. It is a legitimate and acceptable strategy used by exporters to widen their export product portfolio. Such teas are, invariably, far more costly on an average than Ceylon Tea and the Government permits imports of such varieties without restriction.
The annual importation of specialty tea is around five million kg per year, equivalent to two percent of the average annual Black Tea production of Sri Lanka, and is a volume which has no impact on the local industry. A Tea Hub is of immense attraction to the multinational trader or the local exporter, who packs on his behalf. It will enable the former to source his product at low cost, with zero investment in infrastructure, as that will be provided by his local servant at the latter’s cost.
Foreign label owners have no loyalty, either to the country of operation, the operation itself, or even to the consumer. He is motivated entirely by the bottom line and when appropriate, he will move out to another location which is able to serve his needs at a lower cost. This is an inevitable progression and can be illustrated with real-life examples.
Flawed logic
In their support of the Tea Hub proposal, the TEA submitted a wide range of arguments, all virtuously clothed to project an image of potential advantages to the local tea industry, when the actual intent was simply lowering the cost of their export blend.
One of the major planks of the TEA platform has been the totally unsupported premise, that the Tea Hub would soon result in growing the present annual export value of Ceylon Tea, from USD 1.2 billion to USD 5 billion. This hypothesis was never supported by either strategy, complementing arithmetic, or a financially-verifiable equation, and still remains a pathetic piece of wishful thinking. One of their primary concerns is that the high value of Ceylon Tea is an impediment to the servicing of international markets, and that the local opponents of the concept should not be apprehensive, that importation of cheap tea would devalue equivalent grades at the Colombo Auction.
Such arguments defy the simplest concepts of product supply, demand, and price dynamics, and do not merit an elaborate rebuttal. The Tea Hub proposal is based on plain self-delusion, garnished by unverifiable and statistically-unsupportable assumptions. A favourite theory of many economists and marketing consultants with absolutely no practical knowledge of the local tea industry in its totality is based on the feeble assumption that Sri Lankans are not capable of building brands and, therefore, the best option is to reduce Pure Ceylon Tea to the status of a commodity, or a raw material, for branding and value addition elsewhere.
Annually, we produce around 300 million kg of tea and sell all of it at the Colombo Auction, at the highest average price of any auction centre. On an average, we are generally around USD 1 higher than the second highest auction centre, Nairobi. With their wide-ranging arguments for a Tea Hub, that is the real issue that its proponents wish to address; the relatively high auction price in Colombo. The trader who is exporting a cheap commodity at Rs. 500 – Rs. 600 per kg is unable to compete with the local entrepreneur who is exporting a genuine good quality Ceylon Tea, with value added, at Rs. 1,000 per kg or more.
Even the Tea Hub proponents agree that Pure Ceylon Tea is of the finest quality. It does not require marketing expertise to conclude that a product which justifiably claims to be the best in quality must then be marketed at a commensurate price. That is an argument which any consumer will accept. For instance, there there are markets for both `Plonk’ and for high quality wine, with a massive price differential between the two. The Unique Selling Point of the former is price, whilst that of the latter is quality, which is where quality Ceylon Tea belongs.
Another argument that the Tea Hub offers is the increase of export volume, through importation and re-export after blending. Judging the effectiveness of an export operation by volume alone is a serious mistake, as it distorts realities. What is relevant is not the volume and foreign exchange earned, but the contribution to actual value. Heavy exports of bulk tea and crudely-presented small packs, meant for cheap markets, bring little or no return to the exporter.
Those are simply services provided to the multinational trader, by the local packer, with marginal corresponding benefits to the country of production. Value addition to the home-grown product, in the country of origin, is the only strategy which will ensure that all those in the commercial chain, from the farmer to the exporter, reap equitable benefits.
Features
A World Order in Crisis: War, Power, and Resistance
Article 2(4) of the United Nations Charter prohibits member states from using threats or force against the territorial integrity or political independence of any state. Violating international law, the United States and Israel attacked Iran on February 28, 2026. The ostensible reason for this unprovoked aggression was to prevent Iran from developing a nuclear weapon.
The United States is the first and only country to have used nuclear weapons in war, against Japan in August 1945. Some officials in Israel have threatened to use a “doomsday weapon” against Gaza. On March 14, David Sacks, billionaire venture capitalist and AI and crypto czar in the Trump administration, warned that Israel may resort to nuclear weapons as its war with Iran spirals out of control and the country faces “destruction.”
Although for decades Iran’s Supreme Leader, Ali Khamenei, opposed nuclear weapons on religious grounds, in the face of current existential threats it is likely that Iran will pursue their development. On March 22, the head of the WHO warned of possible nuclear risks after nuclear facilities in both Iran and Israel were attacked. Indeed, will the current war in the Middle East continue for months or years, or end sooner with the possible use of a nuclear weapon by Israel or the United States?
Widening Destruction
Apart from the threat of nuclear conflagration—and what many analysts consider an impending ground invasion by American troops—extensive attacks using bombs, missiles, and drones are continuing apace, causing massive loss of life and destruction of resources and infrastructure. US–Israel airstrikes have killed Ayatollah Ali Khamenei and top Iranian officials. Countless civilians have died, including some 150 girls in a primary school in Minab, in what UNESCO has called a “grave violation of humanitarian law.” Moreover, the targeting of desalination plants by both sides could severely disrupt water supplies across desert regions.
Iran’s retaliatory attacks on United States military bases in Persian Gulf countries have disrupted global air travel. Even more significantly, Iran’s closure of the Strait of Hormuz—the critical maritime energy chokepoint through which 20% of global oil and liquefied natural gas pass daily—has blocked the flow of energy supplies and goods, posing a severe threat to the fossil fuel–driven global economy. A global economic crisis is emerging, with soaring oil prices, power shortages, inflation, loss of livelihoods, and deep uncertainty over food security and survival.
The inconsistent application of international law, along with structural limitations of the United Nations, erodes trust in global governance and the moral authority of Western powers and multilateral institutions. Resolution 2817 (2026), adopted by the UN Security Council on March 12, condemns Iran’s “egregious attacks” against its neighbours without any condemnation of US–Israeli actions—an imbalance that underscores this concern.
The current crisis is exposing fault lines in the neo-colonial political, economic, and moral order that has been in place since the Second World War. Iran’s defiance poses a significant challenge to longstanding patterns of intervention and regime-change agendas pursued by the United States and its allies in the Global South. The difficulty the United States faces in rallying NATO and other allies also reflects a notable geopolitical shift. Meanwhile, the expansion of yuan-based oil trade and alternative financial settlement mechanisms is weakening the petrodollar system and dollar dominance. Opposition within the United States—including from segments of conservatives and Republicans—signals growing skepticism about the ideological and moral basis of a US war against Iran seemingly driven by Israel.
A New World Order?
The unipolar world dominated by the United States—rooted in inequality, coercion, and militarism—is destabilising, fragmenting, and generating widespread chaos and suffering. Challenges to this order, including from Iran, point toward a fragmented multipolar world in which multiple actors possess agency and leverage.
The BRICS bloc—Brazil, Russia, India, China, South Africa, along with Iran, the UAE, and other members—represents efforts to create alternative economic and financial systems, including development banks and reserve currencies that challenge Western financial dominance.
However, is BRICS leading the world toward a much-needed order, based on equity, partnership, and peace? The behaviour of BRICS countries during the current crisis does not indicate strong collective leadership or commitment to such principles. Instead, many appear to be leveraging the situation for national advantage, particularly regarding access to energy supplies.
A clear example of this opportunism is India, the current head of the BRICS bloc. Historically a leader of non-alignment and a supporter of the Palestinian cause, India now presents itself as a neutral party upholding international law and state sovereignty. However, it co-sponsored and supported UN Security Council Resolution 2817 (2026), which condemns only Iran.
India is also part of the USA–Israel–India–UAE strategic nexus involving defence cooperation, technology sharing, and counterterrorism. Additionally, it participates in the Quadrilateral Security Dialogue (QUAD) with the United States, Japan, and Australia, aimed at countering China’s growing influence. In effect, despite its leadership role in BRICS, India is closely aligned with the United States, raising questions about its ability to offer independent leadership in shaping a new world order.
As a group, BRICS does not fundamentally challenge corporate hegemony, the concentration of wealth among a global elite, or entrenched technological and military dominance. While it rejects aspects of Western geopolitical hierarchy, it largely upholds neoliberal economic principles: competition, free trade, privatisation, open markets, export-led growth, globalisation, and rapid technological expansion.
The current Middle East crisis underscores the need to question the assumption that globalisation, market expansion, and technological growth are the foundations of human well-being. The oil and food crises, declining remittances from Asian workers in the Middle East, and reduced tourism due to disruptions in the Strait of Hormuz and regional airspace all highlight the fragility of global interdependence.
These conditions call for consideration of alternative frameworks—bioregionalism, import substitution, local control of resources, food and energy self-sufficiency, and renewable energy—in place of dependence on imported fossil fuels and global supply chains.
Both the Western economic model and its BRICS variant continue to prioritise techno-capitalist expansion and militarism, despite overwhelming evidence linking these systems to environmental destruction and social inequality. While it is difficult for individual countries to challenge this dominant model, history offers lessons in collective resistance.
Collective Resistance
One of the earliest examples of nationalist economic resistance in the post-World War II period was the nationalisation of the Anglo-Iranian Oil Company and the creation of the National Iranian Oil Company in 1951 under Prime Minister Mohammad Mosaddegh. He was overthrown on August 19, 1953, in a coup orchestrated by the US CIA and British intelligence (MI6), and Shah Mohammad Reza Pahlavi was installed to protect Western oil interests.
A milestone for decolonisation occurred in Egypt in 1956, when President Gamal Abdel Nasser nationalised the Suez Canal Company. Despite military intervention by Israel, the United Kingdom, and France, Nasser retained control, emerging as a symbol of Arab and Third World nationalism.
Following political independence, many former colonies sought to avoid entanglement in the Cold War through the Non-Aligned Movement (NAM), officially founded in Belgrade in 1961. Leaders including Josip Broz Tito, Jawaharlal Nehru, Gamal Abdel Nasser, Kwame Nkrumah, Sukarno, and Sirimavo Bandaranaike promoted autonomous development paths aligned with national priorities and cultural traditions.
However, maintaining economic sovereignty proved far more difficult. Patrice Lumumba, the first democratically elected Prime Minister of the Democratic Republic of the Congo, was assassinated in 1961 with the involvement of US and Belgian interests after attempting to assert control over national resources. Kwame Nkrumah was similarly overthrown in a US-backed coup in 1966.
In Tanzania, Julius Nyerere’s Ujamaa (“African socialism”) sought to build community-based development and food security, but faced both internal challenges and external opposition, ultimately limiting its success and discouraging similar efforts elsewhere.
UN declarations from the 1970s reflect Global South resistance to the Bretton Woods system. Notably, the 1974 Declaration on the Establishment of a New International Economic Order (Resolution 3201) called for equitable cooperation between developed and developing countries based on dignity and sovereign equality.
Today, these declarations are more relevant than ever, as Iran and other Global South nations confront overlapping crises of economic instability, neocolonial pressures, and intensifying geopolitical rivalry. Courtesy: Inter Press Service
by Dr. Asoka Bandarage
Features
Neutrality in the context of geopolitical rivalries
The long standing foreign policy of Sri Lanka was Non-Alignment. However, in the context of emerging geopolitical rivalries, there was a need to question the adequacy of Non-Alignment as a policy to meet developing challenges. Neutrality as being a more effective Policy was first presented in an article titled “Independence: its meaning and a direction for the future” (The Island, February 14, 2019). The switch over from Non-Alignment to Neutrality was first adopted by former President Gotabaya Rajapaksa and followed through by successive Governments. However, it was the current Government that did not miss an opportunity to announce that its Foreign Policy was Neutral.
The policy of Neutrality has served the interests of Sri Lanka by the principled stand taken in respect of the requests made by two belligerents associated with the Middle East War. The justification for the position adopted was conveyed by President Anura Kumara Dissanayake to Parliament that Iran had made a formal request on February 26 for three Iranian naval ships to visit Sri Lanka, and on the same evening, the United States also requested permission for two war planes to land at Mattala International Airport. Both requests were denied on grounds of maintaining “our policy of neutrality”.
WHY NEUTRALITY
Excerpts from the article cited above that recommended Neutrality as the best option for Sri Lanka considering the vulnerability to its security presented by its geographic location in the context of emerging rivalries arising from “Pivot to Asia” are presented below:
“Traditional thinking as to how small States could cope with external pressures are supposed to be: (1) Non-alignment with any of the major centers of power; (2) Alignment with one of the major powers thus making a choice and facing the consequences of which power block prevails; (3) Bandwagoning which involves unequal exchange where the small State makes asymmetric concessions to the dominant power and accepts a subordinate role of a vassal State; (4) Hedging, which attempts to secure economic and security benefits of engagement with each power center: (5) Balancing pressures individually, or by forming alliances with other small States; (6) Neutrality”.
Of the six strategies cited above, the only strategy that permits a sovereign independent nation to charter its own destiny is neutrality, as it is with Switzerland and some Nordic countries. The independence to self-determine the destiny of a nation requires security in respect of Inviolability of Territory, Food Security, Energy Security etc. Of these, the most critical of securities is the Inviolability of Territory. Consequently, Neutrality has more relevance to protect Territorial Security because it is based on International Law, as opposed to Non-Alignment which is based on principles applicable to specific countries that pledged to abide by them
“The sources of the international law of neutrality are customary international law and, for certain questions, international treaties, in particular the Paris Declaration of 1856, the 1907 Hague Convention No. V respecting the Rights and Duties of Neutral Powers and Persons in Case of War on Land, the 1907 Hague Convention No. XIII concerning the Rights and Duties of Neutral Powers in Naval War, the four 1949 Geneva Conventions and Additional Protocol I of 1977” (ICRC Publication on Neutrality, 2022).
As part of its Duties a Neutral State “must ensure respect for its neutrality, if necessary, using force to repel any violation of its territory. Violations include failure to respect the prohibitions placed on belligerent parties with regard to certain activities in neutral territory, described above. The fact that a neutral State uses force to repel attempts to violate its neutrality cannot be regarded as a hostile act. If the neutral State defends its neutrality, it must however respect the limits which international law imposes on the use of force. The neutral State must treat the opposing belligerent States impartially. However, impartiality does not mean that a State is bound to treat the belligerents in exactly the same way. It entails a prohibition on discrimination” (Ibid).
“It forbids only differential treatment of the belligerents which in view of the specific problem of armed conflict is not justified. Therefore, a neutral State is not obliged to eliminate differences in commercial relations between itself and each of the parties to the conflict at the time of the outbreak of the armed conflict. It is entitled to continue existing commercial relations. A change in these commercial relationships could, however, constitute taking sides inconsistent with the status of neutrality” (Ibid).
THE POTENTIAL of NEUTRALITY
It is apparent from the foregoing that Neutrality as a Policy is not “Passive” as some misguided claim Neutrality to be. On the other hand, it could be dynamic to the extent a country chooses to be as demonstrated by the actions taken recently to address the challenges presented during the ongoing Middle East War. Furthermore, Neutrality does not prevent Sri Lanka from engaging in Commercial activities with other States to ensuring Food and Energy security.
If such arrangements are undertaken on the basis of unsolicited offers as it was, for instance, with Japan’s Light Rail Project or Sinopec’s 200,000 Barrels a Day Refinery, principles of Neutrality would be violated because it violates the cardinal principle of Neutrality, namely, impartiality. The proposal to set up an Energy Complex in Trincomalee with India and UAE would be no different because it restricts the opportunity to one defined Party, thus defying impartiality. On the other hand, if Sri Lanka defines the scope of the Project and calls for Expressions of Interest and impartially chooses the most favourable with transparency, principles of Neutrality would be intact. More importantly, such conduct would attract the confidence of Investors to engage in ventures impartial in a principled manner. Such an approach would amount to continue the momentum of the professional approach adopted to meet the challenges of the Middle East War.
CONCLUSION
The manner in which Sri Lanka acted, first to deny access to the territory of Sri Lanka followed up by the humanitarian measures adopted to save the survivors of the torpedoed ship, earned honour and respect for the principled approach adopted to protect territorial inviolability based on International provisions of Neutrality.
If Sri Lanka continues with the momentum gained and adopts impartial and principled measures recommended above to develop the country and the wellbeing of its Peoples, based on self-reliance, this Government would be giving Sri Lanka a new direction and a fresh meaning to Neutrality that is not passive but dynamic.
by Neville Ladduwahetty
Features
Lest we forget
The interference into affairs of other nations by the USA’s Central Intelligence Agency (CIA) started in 1953, six years after it was established. The Anglo-Iranian Oil Company supplied Britain with most of its oil during World War I. In fact, Winston Churchill once declared: “Fortune brought us a prize from fairyland beyond our wildest dreams.”
When in 1951 Dr. Mohammad Mosaddegh was reluctantly appointed as Prime Minister by the Shah of Iran, whose role was mostly ceremonial, he convinced Parliament that the oil company should be nationalised.
Mohammed Mosaddegh
Mosaddegh said: “Our long years of negotiations with foreign companies have yielded no result thus far. With the oil revenues we could meet our entire budget and combat poverty, disease and backwardness of our people.”
It was then that British Intelligence requested help from the CIA to bring down the Iranian regime by infiltrating their communist mobs and the army, thus creating disorder. An Iranian oil embargo by the western countries was imposed, making Iranians poorer by the day. Meanwhile, the CIA’s strings were being pulled by Kermit Roosevelt (a grandson of former President Theodore Roosevelt), according to declassified intelligence information.
Although a first coup failed, the second attempt was successful. General Fazlollah Zahedi, an Army officer, took over as Prime Minister. Mosaddegh was tried and imprisoned for three years and kept under house arrest until his death. Playing an important role in the 1953 coup was a Shia cleric named Ayatollah Abol-Ghasem Mostafavi-Kashani. He was previously loyal to Mosaddegh, but later supported the coup. One of his successors was Ayatollah Ruhollah Mostafavi Musavi Khomeini, who engineered the Islamic Revolution in 1979. Meanwhile, in 1954 the Anglo-Iranian Oil Company had been rebranded as British Petroleum (BP).
Map of the Middle East
When the Iran-Iraq war broke out (September 1980 to August 1988), the Persian/Arabian Gulf became a hive of activity for American warships, which were there to ensure security of the Gulf and supertankers passing through it.
The Strait of Hormuz, the only way in and out of the Gulf, is administered by Oman and Iran. While there may have been British and French warships in the region, radio ‘chatter’ heard by aircraft pilots overhead was always from the US ships. In those days, flying in and out of the Gulf was a nerve-wracking experience for airline pilots, as one may suddenly hear a radio call on the common frequency: “Aircraft approaching US warship [name], identify yourself.” One thing in the pilots’ favour was that they didn’t know what ships they were flying over, so they obeyed only the designated air traffic controller. Sometimes though, with unnecessarily distracting American chatter, there was complete chaos, resulting in mistaken identities.
Air Lanka Tri Star
Once, Air Lanka pilots monitored an aircraft approaching Bahrain being given a heading to turn on to by a ship’s radio operator. Promptly the air traffic controller, who was on the same frequency, butted in and said: “Disregard! Ship USS Navy [name], do you realise what you have just done? You have turned him on to another aircraft!” It was obvious that there was a struggle to maintain air traffic control in the Gulf, with operators having to contend with American arrogance.
On the night of May 17, 1987, USS Stark was cruising in Gulf waters when it was attacked by a Dassault Mirage F1 jet fighter/attack aircraft of the Iraqi Air Force. Without identifying itself, the aircraft fired two Exocet missiles, one of which exploded, killing 37 sailors on board the American frigate. Iraq apologised, saying it was a mistake. The USA graciously accepted the apology.
Then on July 3, 1988 the high-tech, billion-dollar guided missile cruiser USS Vincennes, equipped with advanced Aegis weapons systems and commanded by Capt. Will Rogers III, was chasing two small Iranian gun boats back to their own waters when an aircraft was observed on radar approaching the US warship. It was misidentified as a Mirage F1 fighter, so the Americans, in Iranian territorial waters, fired two surface-to-air Missiles (SAMs) at the target, which was summarily destroyed.
The Vincennes had issued numerous warnings to the approaching aircraft on the military distress frequency. But the aircraft never heard them as it was listening out on a different (civil) radio frequency. The airplane broke in three. It was soon discovered, however, that the airplane was in fact an Iran Air Airbus A300 airliner with 290 civilian passengers on board, en route from Bandar Abbas to Dubai. Unfortunately, because it was a clear day, the Iranian-born, US-educated captain of Iran Air Flight 655 had switched off the weather radar. If it was on, perhaps it would have confirmed to the American ship that the ‘incoming’ was in fact a civil aircraft. At the time, Capt. Will Rogers’ surface commander, Capt. McKenna, went on record saying that USS Vincennes was “looking for action”, and that is why they “got into trouble”.
Although USS Vincennes was given a grand homecoming upon returning to the USA, and its Captain Will Rogers III decorated with the Legion of Merrit, in February 1996 the American government agreed to pay Iran US$131.8 million in settlement of a case lodged by the Iranians in the International Court of Justice against the USA for its role in that incident. However, no apology was tendered to the families of the innocent victims.
These two incidents forced Air Lanka pilots, who operated regularly in those perilous skies, to adopt extra precautionary measures. For example, they never switched off the weather radar system, even in clear skies. While there were potentially hostile ships on ground, layers of altitude were blocked off for the exclusive use of US Air Force AWACS (Airborne Warning and Control System) aircraft flying in Bahraini and southern Saudi Arabian airspace. The precautions were even more important because Air Lanka’s westbound, ‘heavy’ Lockheed TriStars were poor climbers above 29,000 ft. When departing Oman or the UAE in high ambient temperatures, it was a struggle to reach cruising level by the time the airplane was overhead Bahrain, as per the requirement.
In the aftermath of the Iran Air 655 incident, Newsweek magazine called it a case of ‘mistaken identity’. Yet, when summing up the tragic incident that occurred on September 1, 1983, when Korean Air Flight KE/KAL 007 was shot down by a Russian fighter jet, close to Sakhalin Island in the Pacific Ocean during a flight from New York to Seoul, the same magazine labelled it ‘murder in the air’.
After the Iranian coup, which was not coincidentally during the time of the ‘Cold War’, the CIA involved itself in the internal affairs of numerous countries and regions around the world: Guatemala (1953-1990s); Costa Rica (1955, 1970-1971); Middle East (1956-1958); Haiti (1959); Western Europe (1950s to 1960s); British Guiana/Guyana (1953-1964); Iraq (1958-1963); Soviet Union, Vietnam, Cambodia (1955-1973); Laos, Thailand, Ecuador (1960-1963); The Congo (1960-1965, 1977-1978); French Algeria (1960s); Brazil (1961-1964); Peru (1965); Dominican Republic (1963-1965); Cuba (1959 to present); Indonesia (1965); Ghana (1966); Uruguay (1969-1972); Chile (1964-1973); Greece (1967-1974); South Africa (1960s to 1980s); Bolivia (1964-1975); Australia (1972-1975); Iraq (1972-1975); Portugal (1974-1976); East Timor (1975-1999); Angola (1975-1980); Jamaica (1976); Honduras (1980s); Nicaragua (1979-1990); Philippines (1970s to 1990s); Seychelles (1979-1981); Diego Garcia (late 1960s to present); South Yemen (1979-1984); South Korea (1980); Chad (1981-1982); Grenada (1979-1983); Suriname (1982-1984); Libya (1981-1989); Fiji (1987); Panama (1989); Afghanistan (1979-1992); El Salvador (1980-1992); Haiti (1987-1994, 2004); Bulgaria (1990-1991); Albania (1991-1992); Somalia (1993); Iraq (1991-2003; 2003 to present), Colombia (1990s to present); Yugoslavia (1995-1995, and to 1999); Ecuador (2000); Afghanistan (2001 to present); Venezuela (2001-2004; and 2025).
If one searches the internet for information on American involvement in foreign countries during the periods listed above, it will be seen how ‘black’ funds were/are used by the CIA to destabilise those governments for the benefit of a few with vested interests, while poor citizens must live in the chaos and uncertainty thus created.
A popular saying goes: “Each man has his price”. Sad, isn’t it? Arguably the world’s only superpower that professes to be a ‘paragon of virtue’ often goes ‘rogue’.
God Bless America – and no one else!
BY GUWAN SEEYA
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