Port City airspace Chinese Embassy denies jurisdiction

By Sulochana Ramiah Mohan and Lankesh Goonaratne

Controversy went viral yesterday over the China-Colombo Port City Project after confirmation by the Government of Sri Lanka that airspace over the 20 hectares of the mega project had indeed been ceded to China under the outright 99-year lease agreement between China and the former government… … although the Chinese company handling the project downplayed the claim.

China’s US$ 1.4 billion plan to build a city on reclaimed land near the Colombo Port has come under minute scrutiny ever since the new government came to power resulting in work on the project being suspended from 6 March. Minister of Ports, Shipping and Aviation Arjuna Ranathunga yesterday confirmed that according to the Aviation Authority the airspace over the 20 hectares of the project did indeed pass on to Chinese prerogatives under the agreement.
Chinese Embassy Spokesman Zhou Yongsheng in Colombo yesterday rubbished the Sri Lanka Civil Aviation Authority position, as reportedly explained by it to the new government, that the air space over the Chinese held area will be under exclusive Chinese jurisdiction.

Minister Ranathunga said the government will be discussing this matter further with the Aviation Authority before coming to a decision on the issue. According to the MoU signed between China and ex-President Rajapaksa, the CCCC is to reclaim 233 hectares of land in the immediate offshore project area in Colombo. Of this, 108 hectares would be vested in the CCCC including 20 hectares on a freehold basis and the rest on a 99-year lease. Rajapaksa proposed a 25-year tax holiday with the main contractor, China Harbour Engineering Co. and an eight-year tax break. Inputs would also to be exempted from import duties and value-added tax under the terms of the agreement.

The government has not taken a finite decision on halting the construction of the Port City altogether. Such a decision would however, be taken as soon as the committee appointed by Prime Minister Ranil Wickremesinghe goes public with the report of the port city, the Minister added. Part of the reclaimed land of the Port City will be held by the Chinese company which invests in this project and not the Chinese Government, to claim air space, the Chinese Embassy told Ceylon Today.
Based on the commercial agreement on the Colombo Port City Project between the former Government (UPFA) and the Chinese investor, the Chinese official said the Aviation Authority’s “comment was void of logic” elaborating that “according to Article 01 of the Chicago Convention on Civil Aviation, the contracting States recognize that every State has complete and exclusive sovereignty over the airspace above its territory. The reclaimed land of the Port City is part of Sri Lanka’s territory and Sri Lanka has complete and exclusive sovereignty over the reclaimed land and the air space above it.”
He also said any individual’s, or company’s ownership right or right of use of land does not affect the sovereignty of the country. All activities of the Port City Project, in the past, current, or in the future, should be carried out within the framework of Sri Lankan law including the provisions of international treaties to which Sri Lanka is a signatory.
The Embassy’s position is that any discussion or comment on any issue should be based on facts and in conformity with basic legal common sense.

 

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Modi’s visit, Chinese projects, the baby and the bathwater

The visit of Narendra Modi, Prime Minister of India, to Sri Lanka brings into focus complex issues that stretch beyond the limits of Indo-Lanka relations. It brings into relief the importance, like it or not, of Sri Lanka in the geo-politics of the region. It is vital for Sri Lanka to understand some of the current developments in their wider international context so as to protect its national interest.

PM Modi in his address to Parliament stressed the interconnectedness of histories of the two countries and said Sri Lanka’s success is of great importance to India. He spoke of India’s commitment to advancing peace and prosperity in the region ‘including our common maritime neighbourhood.’

Against a background of unease that had developed over Sri Lanka’s perceived pro-China tilt, and more recently the docking of a Chinese submarine in Colombo, it is significant that he said regional security was a ‘shared responsibility.’ “The security of our two countries is indivisible. Equally our shared responsibility for our maritime neighbourhood is clear.” He said the Indian Ocean is critical to the security and prosperity of the two countries.

Media reports
Modi’s visit comes barely two months after a new government assumed office in Sri Lanka, and in the shadow of media reports alleging involvement of India’s spy agency RAW (Research & Analysis Wing) in effecting the regime change. On Friday the Hindu newspaper quoted former president Mahinda Rajapaksa himself making this claim in an interview. But he did not accuse Modi, saying “… he only came in less than a year ago. It was a long term plan.” Rajapaksa told the Hindu “They misunderstood me over the Chinese question. And that is why they planned this.”

The Chinese, separately, have expressed shock at the suggestion that the docking of their submarine was motivated by strategic or military considerations. In fact they are deeply distressed by the misunderstandings this idea has caused. At a meeting with a select group of journalists this week the new Chinese Ambassador Yi Xianliang was emphatic that the submarine’s mission was entirely ‘technical and logistical’ in nature.

India a friend
“I was shocked by the controversy and misleading comments on the Chinese submarine’s docking
at Colombo Port for logistical replenishment last year” the ambassador said. “Actually the Chinese submarine came to the Colombo Port on its way to and back from the Gulf of Aden and the waters off the Somali coast to carry out escort missions for the merchant vessels, from both Chinese and other countries.The dockings were regular port calls for replenishment of supplies and is a common practice of navies of all countries.” The ambassador said the activity was transparent and received prior approval by the Sri Lanka government. “China has no intention to use Sri Lanka to threaten any other country’s security” he added.

It’s relevant to mention that Ambassador Yi was the Chinese Governor to the Asian piracy-combating agreement body ‘ReCAPP’ before he came to Sri Lanka. Noting that China followed the rules he explained that when a submarine enters the territorial waters of another state it travels above the water and displays its national flag. “I need to have a frank dialogue. India is also our friend” he said. Trilateral cooperation among China, Sri Lanka and India was most welcome, as Chinese Foreign Minister Wang Yi had told his Sri Lankan counterpart Mangala Samaraweera in Beijing.

Port City project
On the troubled topic of the Port City project and its suspension by the new government, the Chinese view is that a ‘small problem relating to a project’ should not have a significant impact on long term bilateral relations. Officials were hopeful that the issue would be resolved before President Sirisena’s state visit to China.

The Chinese have said on previous occasions too, that their company had complied with the relevant laws when launching this project. On questions relating to Environmental Impact Assessment reports they have asserted that these are the responsibility of the Sri Lankan government. These arguments are hard to refute. The claim that they have complied with the rules can easily be checked. Regarding controversial aspects of the deal such as the outright sale of 20 hectares of strategically located land, here again wasn’t the onus on Sri Lanka, as a sovereign state, to reject any clauses that went against its national interest?

Different values
The Chinese seem genuinely puzzled over the objections being raised. The ambassador said however that China’s cooperation with Sri Lanka is “geared to its entire people, regardless of who or which party rules this state.” President Sirisena now faces an extremely delicate diplomatic challenge. In order to avoid throwing out the baby with the bathwater, he needs to address the corruption charges levelled against the Rajapaksa government with regard to the deal and reverse or renegotiate its negative aspects, without offending China.

It’s relevant to note the concern shown by China over the possible negative fallout of the project’s cancellation on Sri Lanka. It was observed that the controversy over the $1.4 billion project sends a signal to the outside world that could create doubts about the attitude of the new government towards investment. Sri Lanka needed FDI for infrastructure and industry. As a mainly agricultural country it needed communications, and steel, to put infrastructure in place. This was the rationale behind Chinese infrastructure projects in Sri Lanka.

The ambassador’s media interaction on Tuesday was one among some 40 meetings with politicians, journalists, representatives of think tanks and others, held during his first two weeks in office in an effort to better understand issues. China’s approach to bilateral relations with Sri Lanka draws on important moments in history that such as the Rubber-Rice Pact. The element of gratitude makes it similar to that of Japan, a democracy. Compare this attitude with that of the UK, reflected in Prime Minister David Cameron’s pompous little homily published as an Op-Ed piece in the Daily Mirror to coincide with President Sirisena’s visit to London. Clearly there’s a difference in the values at play here. It’s a difference that should help Sri Lanka recognize who its friends are.

 

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