Diplomatic dilemma

Convention on Diplomatic Relations

The Convention on Diplomatic Relations was ratified on 4 April 1961 at the United Nations to streamline the powers and functions of the diplomatic missions and relations in the world family of states. Any member of the UN family, small or powerful are obliged to follow the convention based on customary international law in setting up, functioning diplomatic missions and maintaining diplomatic relations among member states. Diplomatic missions are set up, ambassadors are appointed and the powers functions privileges and working procedures of the host and receiving countries are set out based on the UN convention and customary international law with great care and detail.

Sri Lanka maintained diplomatic relations with the rest of the world from 1948 successfully maintaining friendly relations as an active member of the United Nations. Sri Lanka maintained diplomatic, friendly, and trade relations with China through religious cultural and trade bonds developed over thousands of years with interactions on voyages of traders’ exchange of knowledge of cultural and religious dignitaries, writers, and researchers via the famous silk route. Sri Lanka was one of the first countries to recognise China when she needed international support to consolidate the position in the world family. China is ever grateful to Sri Lanka for that political gesture as a friend in need in the world family. She is a friend in need who assisted Sri Lanka on clamping down terrorism when the Western world and India looked the other way.

Large economic power

According to Robert Peston (IMF reports) USA has lost the title of the largest economy to China’s 17.6 trillion – the economy 50 years ago war economy trailing behind the other countries. China has invested heavily in the world amounting 1.3 trillion and in the USA 125 billion between 2005 to 2016 indicating how powerful China is and the leading economic giant growing faster as the leading and controlling economic global power. China has invested in Africa, Middle East and even in Israel on innovations, technology, dairy and agriculture. 

The most significant Trade Pact Sri Lanka entered into with China was the Rice/Rubber Pact of 1952 initially for five years and in operation for 30 long years despite opposition from Sri Lanka and outside showing the closeness of Sri Lanka keeping a soft corner for Sri Lanka. China continued to help Sri Lanka until and invested heavily on the infrastructure, harbour, airport and other developments in Sri Lanka including the Port City Project at the cost of 1.5 billion, the largest direct investment ever. She has already invested $ 409 million and intends to invest $ 5 billion in the next three to five years. Therefore it is in our interest to maintain traditional friendly bonds with China, a close friend and future economic power heavily invested in the USA, EU and worldwide with miraculous economic growth.

Port City Project

After the change of regime in Sri Lanka, the Port City Project initiated by the previous Government was suspended/terminated with the loss of one million per day for one-and-a-half years with the full loss of 140 million, until the Sri Lankan Government renegotiated with new terms and conditions giving more and more concessions to China for the losses incurred. Controversial environment issue with the environmental concerns on Port City Project was resolved with no changes in the project except direct and indirect reparations for the loss of 140 million. 

Based on the new terms China will be given greater autonomy to the Port City as a separate independent entity separated from the jurisdiction of Sri Lanka giving freedom for free port/tax city, separate laws as Dubai, Singapore and similar commercial hubs. 15,000 acres of land and 80% stake in Hambantota and 50 square kilometre land in the south will be given to China at initial stages until mega projects such as Megapolis are started. Nowhere in the world are ports, harbours and airports and places of national security sold as if it is the family silver. Sri Lanka may be desperate to offer incentives to attract Chinese banks and companies. It is the duty of Sri Lanka to strengthen friendly diplomatic relations with China for further assistance when even the West including the USA and UK are seeking financial assistance from China. 

Difficulty to take back something given internationally

It is not easy or possible to take back something given especially from a major economic world power growing to be the main economic world giant. Sri Lanka is neither forceful nor powerful or knowledgeable in the world of commercial and international law arena and affairs including international arbitrations. When India forced Sri Lanka on the Indo-Sri Lanka Accord violating customary international law, not a single nation came forward to the rescue of Sri Lanka due to the strength of powerful India – the regional power of South Asia. Therefore it is safer to be cautious and think hard and long politically and diplomatically before leaping into hot water in the international arena in matters concerning the future of Sri Lanka and Sri Lankans long term.

Mandate of the Ambassador and the Finance Minister

Under the 1961 Convention, the mandate of the Ambassador of the sending country is to look after political, trade and economic interests with the host country with no confrontation and interference in internal affairs, however powerful the sending country is. The confrontation initiated both by Minister Ravi Karunanayake’s comments on the dispute of the interest (2%) of the Chinese loans and investments, answers/statements at an interview and a press conference by the Chinese Ambassador Xi XiangIang are undiplomatic and not in conformity with good governance, foreign policy and international relations that Sri Lanka developed with great care and hard work with China and other friendly countries.

Disputed statements

The Finance Minister’s statement undermining the gesture of the Chinese Government and banks giving loans at 2%, and that he is the Finance Minister of Sri Lanka and not China with comments on bribery and corruption, has irked the Chinese Ambassador – the sole representative with authority to speak on behalf of the sending country who has responded (obviously with the approval/consent of the Chinese Government the repeated public statements), with the comments expecting Sri Lanka to show gratitude. It is reported that the Sri Lankan Foreign Minister will be taking steps to seek clarification from the Ambassador on public comments made on the verbal confrontation. This confrontation will have drastic effects on future relations and Chine investments in Sri Lanka.

Way forward

This is a dispute that should never have taken place as both parties have gone out of their purviews of duties and responsibilities thrust on them by both friendly countries. The Minister should have been careful not to make repeated remarks on a friendly economic giant – a world power and a member of the Security Council that backed Sri Lanka during the difficult time politically and economically. When the West and USA with NGOs and INGOs looked the other way when Sri Lanka was in need of help, China came forward to assist Sri Lanka.

It is unbecoming of a responsible Finance Minister to cast remarks as “wires crossed” by statements made on behalf of Sri Lanka and Sri Lankans. The Ambassador should have been more careful and diplomatic to take up such matters with the Executive and the Foreign Ministry of the host country and get the Foreign Ministers involved directly on the controversy which is the correct procedure. 

Sri Lanka should be extremely careful in maintaining closer bonds and relations with the traditional close friend in need who has invested heavily in Sri Lanka and planning to invest more on unprecedented large-scale FDI and other projects countrywide with agreements binding under international law. It is the duty of the Sri Lankan governance to bring about an amicable settlement to end the confrontation to avoid short and long term disasters on economy and international/diplomatic relations.

(The writer is a former Ambassador to UAE and Israel and can be contacted on [email protected].)