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Don’t bank on FTAs with countries like Thailand to boost Sri Lanka’s exports

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Minister of Trade, Commerce, and Food Security, Nalin Fernando, with Phumtham Wechayachai, Deputy Prime Minister and Minister of Commerce, after signing the Sri Lanka Thailand Free Trade Agreement on 03 Jan, 2024.

by Gomi Senadhira

“In Sri Lanka’s pursuit of transforming into a high-income country by 2048, involving trade negotiations with countries like Thailand, the Sri Lanka Thailand Free Trade Agreement (SLTFTA), was signed ….” (media release by the Presidential Secretariat, 03 February)

Five long years after starting negotiations, the trade ministers of Sri Lanka and Thailand signed what they claimed to be a very ambitious Free Trade Agreement. The negotiations on the FTA, which commenced in July 2018 during the official visit of General Prayut Chan-o-cha, then Prime Minister of Thailand, to Sri Lanka, continued through nine rounds before the agreement was finalised. At this stage, it is difficult to comment comprehensively on this agreement as the text of the agreement is still not available to the public. But it is appropriate and timely to share a preliminary analysis based on available information to initiate an informed discussion on this important agreement.

Given the lacklustre performance in the export sector over the recent years and the government’s inability to take any meaningful steps to reverse the trend, many Sri Lankans may view signing an FTA to boost exports as something to be welcomed. Particularly because of the very grand objectives Sri Lanka hopes to achieve through this FTA (as per information available through media releases), namely,

1. boosting exports from Sri Lanka to Thailand by threefold via the FTA,

2. enhancing access for Sri Lanka’s exports to markets in other ASEAN countries through Thailand’s gateway.

But can we achieve these objectives through this FTA? Or, are those just pipe dreams?

1. The objective to boost exports from the country to Thailand by three folds

In February 2023, after the third round of negotiations between Sri Lankan officials and the Thai delegation, headed by Thailand Trade Negotiations Department’s Director-General Auramon Supthaweethum at a post-Cabinet media briefing Minister Banduala Gunawardena, while justifying the plans to sign a trade agreement (FTA) with Thailand, stated,“Sri Lanka lacks FTAs with countries and that is one of the key reasons why we have not been able to boost our exports over time … and “The objective of the Government is to boost exports from the current $ 550 million to $ 1.5 billion via Sri Lanka and Thailand FTA,”. That was when Sri Lanka was facing its worst currency crisis in history. So, the claim was widely welcomed and given extensive publicity in the newspapers and news websites. However, those who are familiar with Sri Lanka’s exports would have noticed these numbers were far from accurate. Interestingly, before the commencement of the third round of the negotiations, a press release from the Presidential Media Division (PMD) had clearly stated, “… The start of the negotiations will take place against the backdrop of a significant trade imbalance in Thailand’s favour. In 2021, Sri Lanka imported goods from Thailand worth USD 355 million, but only sent USD 59 million to Thailand”. So, the officials at the Presidential Secretariat knew the correct numbers and should have issued a clarification/correction after the news was published. It should have been done promptly because these kinds of announcements send wrong signals, not only to the people of this country but also to our negotiating partners, particularly about professionalism of Sri Lanka’s Trade Negotiators.

Unfortunately, no corrections came from the government and then in May, Minister Gunawardena reiterated, “… the objective of the Government is to boost exports from the current $ 550 million to $ 1.5 billion via Sri Lanka and Thailand FTA.” That was after President Ranil Wickremesinghe had briefed the Cabinet on the progress of the discussions between the two countries.

Why is it that the Cabinet spokesman repeatedly stated “The objective of the Government is to boost exports from the current $ 550 million to $ 1.5 billion via Sri Lanka and Thailand FTA!”, at the post-Cabinet media conferences? We cannot expect the minister to have the trade statistics at his fingertips. So, where did the Cabinet and its spokesman get their numbers from? Was it from a Cabinet memo? Was he (and the Cabinet) misled by some officials in the Presidential Secretariat who wanted an FTA with Thailand at any cost? If the real numbers were presented, some ministers may have questioned the need for an FTA with Thailand, the 37th exporting destination of Sri Lanka. On the other hand, Thailand is the 10th largest exporter in to Sri Lanka. So, some may even ask will such an agreement exacerbate the foreign exchange crisis by increasing the imports from Thailand? However, none of the ministers would object to a trade agreement that would increase exports by one billion US dollars.

Anyway, now that the agreement has been finalised, I hope that the government will explain how Sri Lanka hopes to reach the highly ambitious objective set by our negotiators to boost exports by three times the current exports via the FTA. Not from $ 550 million as the government has finally corrected the numbers. Now, the new (revised) objective is, according to the PMD media release, of 3rd February, “…. tripling the existing bilateral trade value (USD 550 Mn) to USD 1.5 Billion within four years. One of the main objectives of entering into a Free Trade Agreement (FTA) with Thailand is to enhance market opportunities for Sri Lanka with possible expansion.”

That means the revised objective is triple the existing bilateral trade and not Sri Lanka’s exports within four years. Is it an achievable target within four years? Out of this USD 1,5 billion what would be the Sri Lanka’s share? Or, will it be heavily in favour of Thailand? A study undertaken by the Institute of Policy Studies (IPS) last year projected, “Assuming an immediate phasing-out of the existing tariffs, an FTA would increase bilateral trade to USD 619.6 million by 29.1 %. This increase falls short of the ambitious goal of a threefold increase in bilateral trade, at least in the short run.” The report also pointed out that if the existing tariff was immediately phased out Sri Lanka’s exports would increase by $27.6 million and Thailand’s exports would increase by $141.8 million. However, in real negotiations, it doesn’t happen like that. Countries negotiate and sign Free Trade agreements to help open markets and expand opportunities for their exporters in a balanced and mutually beneficial manner.

In 2022, out of Sri Lanka’s total exports to Thailand valued at $57.7 million, precious or semi-precious stones accounted for $33.4 million. Almost all these (precious stones) have duty-free market access in Thailand. Hence, the FTA will not add any additional enhanced market access. So, any export growth has to come from the rest of the basket and any new products that may get duty-free access to Thailand. What are the products our economic operators can export to Thailand under this FTA? What are those products that can add 100 million in additional exports within four years? Who are the exporters undertaken that challenge?

Recently in Bangkok, Ms Supthaweethum announced more realistic but substantial gains for Thailand from the FTA. She projected the Thai economy to expand by 0.02% equivalent to US$ 80 million through expansion of investment and value of Thai exports to Sri Lanka. Thai manufacturing industries and products that would benefits from the agreement would be automotive, fashion, gems, metal, electronics, rubber, pet food and corn. Although details on these projected gains are not available, I believe, most of the gains would come through duty reductions for these products by Sri Lanka. In addition to that Thai finance, insurance, tourism and R&D industries also are expected to benefit from the agreement. However, if Thailand’s economy is to expand by US$ 80 million that would require substantial (a threefold?) increase in Thai exports to Sri Lanka. But at this stage it is difficult to comment on this as we do not have the full text of the agreement.

2. Access markets in other ASEAN countries

The media release by the PMD in January, last year, identified one other objective of the Sri Lankan negotiators, that is,” … from the perspective of Sri Lanka, the negotiations will be aimed at enhancing access to our exports not only in the Thai market but also in markets in other ASEAN countries through Thailand’s gateway.” I cannot understand how this can be achieved through a bilateral FTA between two countries exchanging reciprocal concessions. Does this mean that Sri Lanka also has to open up the market to other ASEAN countries through Thailand’s gateway? How will the Rules of Origin impact such trade? It will be interesting to find out how our negotiators have achieved this objective.

Third time lucky! Or, Finally unlucky?

This is not the first time Sri Lanka and Thailand tried to negotiate an agreement to enhance trade. The attempts were made twice before. The first was to negotiate a preferential trade agreement (PTA). It was initiated when the Thai Prime Minister Thaksin Shinawatra visited Sri Lanka in 2003 on the invitation of Prime Minister Ranil Wickremesinghe. I understand those negotiations were abandoned after few rounds as Thailand refused to include products of export interest to Sri Lanka in their concession list in a meaningful manner.

After that a very comprehensive FTA was negotiated with Thailand under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Although it was an agreement between the BIMSTEC members, as the South Asian countries already had preferential trade agreements and India had an FTA with Thailand, the negotiations essentially were between other South Asian members and Thailand. The negotiations which commenced in September 2004, in Bangkok, was largely driven by Thailand. After 20 rounds of negotiations, a comprehensive trade agreement was almost finalised before 2010. During the negotiations, Thailand aggressively pushed for enhanced market access for their products. Unfortunately, Sri Lankan negotiators conceded substantial amount of concessions to Thailand without receiving any significant concessions in return. Thailand kept the limited number of products Sri Lanka was interested on its negative list. As a result, the final draft was heavily in favour of Thailand. Consequently, before moving forward with negotiation any further, during the 2010 – 2011 period, the Department of Commerce carried out an extensive consultation process with local stakeholders.

During those consultations, local manufacturers clearly explained that the impact of the FTA would be highly disadvantageous to the local industries and lobbied strongly against the FTA. Even the export associations did not consider an FTA with Thailand a necessity. They considered the Thai market a difficult market to enter even with tariff concessions. Only the importers (and some officials) lobbied heavily in favour of the agreement. Based on those consultations the Department of Commerce advised the ministry and all other line agencies against signing of the agreement as the objective of signing a trade agreement was to boost Sri Lanka exports in a mutually beneficial manner. At the same time the department managed to renegotiate the agreement to expand the negative list to protect local industries. This was done because there was a possibility of a decision by the government to sign the agreement for “political or religious reasons”. Fortunately, 12 years later that agreement is still at the negotiation table.

$80 million boost for Thailand. How much for Sri Lanka?

After failing twice to get a trade agreement with Sri Lanka, the Thai negotiators have finally managed to overcome the hurdle in their third attempt. What have they achieved? And where does this US$ 80 million come from? And the time-frame? What gains will Sri Lanka secure from the FTA? It is extremely unlikely that total trade also will increase to US$ 1.5 billion in four years. Even if that happens then that increase will be heavily in favour of Thailand. What will be the share of Sri Lanka? But it is difficult to comment as government is yet to share the agreement with the people of this country. Meanwhile, we can consider the IPS prediction of US$ 27.6 million as a more realistic short-term objective. But that type of expansion does not need an FTA. A good customs cooperation arrangement to tackle misinvoicing can increase our (recorded) exports by that amount.

(The writer, a former Director General of Commerce, can be contacted via senadhiragomi@gmail.com.)



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A World Order in Crisis: War, Power, and Resistance

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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

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Neutrality in the context of geopolitical rivalries

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President Dissanayake in Parliament

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

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Lest we forget

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Dr. Mohammad Mosaddegh

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.

CIA-instigated coup in Iran in 1953 Dr. Mohammad Mosaddegh

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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