I wish to thank the Government of Japan for hosting this conference.

The Netherlands Government supports the current peace process and is willing to show this through the provision of funding and through active commitment with the parties involved.

The Netherlands encourages the parties to engage in defining fair and realistic solutions for short and medium term administration and management, to further the peace process.

· This needs flexibility and innovation, trying to identify acceptable management systems within the constitution of Sri Lanka, which adequately reflect the position, powers, rights and obligations of the negotiating parties and all communities. This is a staged process, which has to be managed carefully, step by step. We therefore urge the LTTE to return to the negotiating table.

· To build innovative and acceptable structures, synergy, based on communication and trust between the parties, is fundamental. It is therefore, that dialogue is so important. Exchanging letters will not suffice, as this will not improve the situation where deep-rooted mistrust has to be replaced by trust between the parties. In a very recent visit to the Vanni to meet with the LTTE political leadership in Killinochchi, we experienced how important direct communication is. It makes a crucial difference if parties can meet face to face to openly discuss positions and come to an understanding.

We emphasise the link between development activities and peace through a negotiated political solution.

· This is underpinned by principles centred on Human Rights, Gender, Good Governance, Democracy and Pluriformity. All our common efforts should lead to a situation where the population of Sri Lanka is, and especially women are, directly involved in the process of development and planning for their future and where legally elected leaders are accountable to their constituencies and communities. This is expressed in these principles, which are the fundamental under and conditional for future co-operation.

· For any rehabilitation and development in the NE, mine – clearing is conditional. To allocate further funding for this crucial humanitarian activity is imperative for my Government that the GoSL ratifies the Ottawa Convention and that the LTTE declares its engagement as well.

· The Netherlands has pledged this year an unprecedented € 26 million, including € 10 million of debt relief. This all Grant funding and nearly exclusively non-tied aid. One third of the direct bilateral aid is allocated for the North and the East of Sri Lanka. Pledges for coming years will depend on progress in the peace process and will be expected to be at least € 10 million per year in 2004 and 2005.

Finally I wish all who are involved, strength and wisdom in order to move forward and develop Sri Lanka in a prosperous country, where people live in peace and with dignity.

Thank you.