Marketing the New 'Dogs of War'  

The Liberation Tigers of Tamil Eelam have been fighting one of the world�s 
longest and bloodiest terrorist wars, but July 24, 2001, marked their most 
devastating attack in 18 years of fighting against the Sri Lankan government. 
In virtually destroying Bandaranaike International Airport in the capital of 
Colombo, the Tamil Tigers cut the country�s only link to the outside world. 

Half of the civilian fleet of Sri Lankan Airlines, the national carrier, was 
destroyed. The Sri Lankan Air Force lost almost a third of its assets � 
Russian transport helicopters and fighters, Israeli interceptors, and Chinese 
trainers. The cost of the attack was estimated to exceed $500 million. 
Tourism vanished overnight, trade collapsed, and Sri Lanka�s economy slumped. 

The long-term impact of the Tigers� attack was magnified by the conduct of 
the City of London, the financial nerve center of the United Kingdom. Brokers 
at the Lloyd�s of London insurance market imposed massive war risk surcharges 
on shipping to Sri Lanka. The shipping-dependent nation suddenly faced the 
loss of trade and even essential food imports. With insurance surcharges 
rising to a multiple of freight rates, costlier air transport replaced 
surface ships. At a stroke, the country faced rampant hyperinflation and 
economic collapse. 

The terrorist Tigers had struck the blow, but it was the London financiers 
whose conduct now threatened national survival. Sri Lanka�s High Commissioner 
in London, Mangala Moonasinghe, was instructed to open negotiations, not with 
the Tamil Tigers, but with the City�s brokers. 

Eight Sri Lankan government negotiators flew to London on Aug. 17, 2001, to 
meet with Lloyd�s underwriters and their War Risks Committee. After three 
days of talks, the Lloyds team set up a �London Market Sri Lankan War 
Facility.� The rates for ships sailing to Sri Lanka would still be high, 
despite the Sri Lankans agreement to pay, within seven days, a bond of $50 
million against any claims that might be lodged for damage to vessels heading 
for or in Sri Lankan waters. The Sri Lankan government was also required to 
commission a full security review of its airport and seaports and to 
implement any recommendations. 
 
The London brokers recommended 
  
Tim Spicer
(Reuters)

 
 that the Sri Lankan government hire a British-based company, Trident 
Maritime, to carry out the security survey, in conjunction with another 
security consultancy, Rubicon. In Trident, the Sri Lankans had hired Tim 
Spicer, a man simultaneously at the center of a number of scandals provoked 
by his global mercenary activities and of an effort to legitimize the status 
and sanitize the image of the country�s �dogs of war� � soldiers of fortune 
who have mounted coups, guarded British, U.S. and Arabian dignitaries and 
ambassadors, engaged in civil wars, and run sabotage and terror activities 
from behind hostile lines. From the Contra campaign in Nicaragua to 
organizing and training Afghan or Kosovar insurgents, British mercenary 
operators have been employed by the CIA, the Drug Enforcement Agency and the 
U.S. State Department, as well as by Britain�s own Secret Intelligence 
Service (SIS). 


� See Sidebar, �Cozy, Clubby and Covert�  


After decades of controversial intervention in the developing world, these 
private military enterprises are seeking legal recognition and standing. They 
wish for re-branding as peacekeepers and conflict resolvers. Politicians in 
the West seem quickly to have accepted a convenient if illusory dichotomy 
just as it has been handed to them � contrasting the old-style (and bad) 
�dogs of war� with the new-style (and good) private military companies, or 
PMCs, of the 1990s and beyond. 



� Coming Nov. 4: Insider banking information provides a glimpse into how 
money from multinational oil companies helps fuel corruption and war in an 
oil-rich African state.  

   

   New 'Dogs of War': Page 1 of 13  [ PDF Version]  

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