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CV killed by suicide bomber
by Norman Palihawadana

Industrial Development Minister C.V.Gooneratne (64) was among those killed yesterday by an LTTE suicide bomber at Golumadama Junction at Ratmalana when they were walking in a procession to launch war heroes day.

First reports said at least 21 were killed and more than 60 were injured in the explosion when the suicide bomber hurled himself towards the Minister.

The Minister’s wife, Chyami was among those seriously injured.

Police said the procession, which began at Nugegoda was proceeding towards Panadura, collecting funds for the security forces when the suicide bomber attacked.

Several processions were due to converge on Panadura for a fund raising event for the troops, organised by the ITN Television.

Several prominent politicians were among those feared killed but details were not available immediately.

Minister Gooneratne’s last official engagement had been a few hours earlier when he participated in the ceremony at "Temple Trees", where President Chandrika Kumaratunga hoisted the national flag and observed two minutes silence in honour of the war heroes.

Minister Gooneratne, who entered politics as a member of the Dehiwala-Mount Lavinia Urban Council, was a Central Committee member of the SLFP during the early 1970s.

His first attempt to enter parliament in 1977 failed but he succeeded at the next general election in 1989.

He was re-elected as MP for Ratmalana in 1994 when he was appointed Minister of Industrial Development which portfolio he held until his death.

Mr. Gooneratne was educated at Royal College and Aquinas in Colombo. At Royal College he was a prefect, captain of the college rugby team and a cadet. In rugby he also represented CR & FC Club later. He was the son of late Chairman of Dehiwala-Mt. Lavinia, L. V. Gooneratne.

Among those killed was the deputy mayor of Dehiwala-Mt. Lavinia Municipal Council Anura Silva and several security personnel of the minister.

The injured were rushed to the Kalubowila hospital.

Mahinda Abeysundere, Media Advisor to the ITN said that this procession to collect funds for the soldiers was organised by the ITN and Lakhanda.

He said that the procession of cars started at Ananda Samarakoon playing field in Nugegoda. When the motorcade reached Golumadama Junction those in the motorcade alighted from their vehicles and started walking as a procession.


President reiterates armed forces will fight the Tigers and end terrorism
by Chittaranjan de Silva

President Chandrika Bandaranaike Kumaratunga yesterday re-iterated that the armed forces would continue to battle the LTTE as long as the Tigers engaged in ‘terrorism’.

She was addressing a ceremony held to mark the inauguration of the "War Heroes Day" at the Presidential Secretariat, which was attended by government ministers, party leaders and service chiefs.

The President emphasised that the country and its people are forever grateful to the "war heroes" who have fought and laid down their lives for the sake of the country and its people.

President Kumaratunga reiterated that though the government pursued the path of peace with the LTTE, the LTTE have time and again shown through their actions that they are not for peace.

"The LTTE don’t want peace, this they have displayed without doubt," she said.

Even as peace was being discussed with them, the Fascist LTTE have killed many democratically elected leaders belonging to both the Sinhalese and the Tamil communities of this country, she said.

The President while praising the brave efforts of soldiers valiantly battling the LTTE, thanked them for their efforts, without which, she said "the countrymen would have had to live in fear."

Efforts have been made to help the families of soldiers who are fighting at the battle front, by granting them land to build houses and providing them with housing and other amenities.

"Even though salaries to the armed forces personnel have been increased recently, this is not sufficient," the President said.

She noted that when young men battle at war and die, a generation of children belonging to their families would grow up without a father.

She stressed that more support has already been channelled to help the families of war heroes and added that it is the responsibility of everyone to provide more support to the families of these brave men who have risked their lives to protect others.

A "Ranaviru Seva Authority" has been set up to help this cause, the President said and commended efforts by some people, whom she said have come forward and are helping these families of war heroes even without being requested.

The President also noted that just as the war heroes are remembered, "we should remember the Tamil people in the north-east who have been under pressure by both by the armed forces and the facist LTTE."

She said these people in NE, who are not LTTE supporters, have been displaced on several occasions during these two decade long war. "Their houses have been bombed and they have lost most of their little treasures."

Rehabilitation programs are needed to provide help to these Tamil people, as well as to those Muslims, who were chased away from Mannar and the Eastern province and already steps are taken in this direction, she said.

She said the LTTE is been funded mostly by the Tamils who migrated after the July ’83 uprising, who live in a dream that one day the

LTTE might be able to form a separate state.

The President also paid a tribute to the "intelligence" of the Sinhalese people.

"The Sinhalese people have displayed enormous intelligence even when they were tested to the limits by the LTTE in recent times by not retaliating in the way they did in July 1983."

Even the riots in 1983 were created by mobs, she added.

Before the President’s speech, two minutes silence was observed in front of the old Parliament building.

Afterwards, the President distributed savings pass books to the children of ‘war heroes’ and to those servicemen missing in action and wounded in the war.

A lottery ticket called ‘Jayaviru Samapatha’ was also launched yesterday, the proceeds of which would benefit war heroes.


Karunanidhi to Sri Lanka:
Find political solution, stop the war
From S. Venkat Narayan, Our Special Correspondent

NEW DELHI, Unfazed by the attacks by Indian political parties and media, Tamil Nadu Chief Minister Muthuvel Karunanidhi today defended his controversial "solution" to Sri Lanka’s raging ethnic crisis.

In a five-page statement issued in state capital Chennai (Madras), he justified his proposal that the Sri Lankan government either devolve more rights to the minority Tamils, or follow the Czechoslovakian model dividing the country into separate Sinhala and Tamil states to end the problem.

Clarifying the suggestions he made at a public rally in Chennai to mark his 77th birth anniversary celebrations last Saturday night, Karunanidhi asserted that his proposals were not borne out of "linguistic chauvinism," but based on humanitarian grounds.

The chief minister, who also happens to be the boss of the ruling Dravida Munnetra Kazhagam (DMK), said: "Find a political solution and stop the war by following any model. Do not send refugees to Tamil Nadu and give us trouble. Let peace prevail in the backyard of India. This is my appeal."

The crisis in the island cannot be resolved through military means. A political solution alone will help end the ethnic crisis. "I am not wrong in suggesting that the political solution should be based on a quasi federal, confederal or Czech model," he claimed.

If any one of these models is accepted to end the crisis, no danger will descend on India, Tamil Nadu or South Asia. Those who do not talk from the ivory tower alone can understand this, Karunanidhi said.

He said he fully realises that no one has the right to demand that a particular country be carved out to create an independent state. But the situation in Sri Lanka is totally different. "There is a marked difference between those who are sitting in air-conditioned rooms approaching the issue, and those who know the ground realities."

(He was presumably referring to those journalists who wrote blistering editorials in today’s newspapers, lambasting him for suggesting that Sri Lanka be split up into a Sinhala nation and a Tamil one on the lines of the Czech and Slovakian republics as a solution to the ethnic problem in the island).

Tracing the history of the Tamils’ struggle in Sri Lanka, the DMK supremo pointed out that the Tamils had not gone to the island as coolies and settled there. (CENSORED)

After Sri Lanka’s independence from the British, the Bandaranaike-Chelvanayagam Agreement (B-C Pact) was signed to provide more rights to the Tamils, but it was never implemented.

(CENSORED)

(CENSORED)

(CENSORED)

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(CENSORED) One should not forget the fact that it was a Buddhist monk who assassinated S. W. R. D. Bandaranaike, the then Sri Lankan prime minister, he pointed out.


East European NATO member offers to sell arms to Sri Lanka
by Shamindra Ferdinando

An East European country of the North Atlantic Treaty Organisation [NATO] has offered to sell a wide range of arms, ammunition and equipment to Sri Lankan forces battling separatist LTTE terrorists, defence sources said yesterday.

President Chandrika Kumaratunga recently thanked countries which assisted Sri Lanka when the LTTE appeared to have been on the verge of more spectacular battle-field victories.

The country, formerly a key member of the then USSR led Warsaw Pact has informed Sri Lanka of her ability to provide urgently needed armaments in the Jaffna peninsula, the sources said.

Sri Lanka has diplomatic ties with this particular country.

The 19-member NATO armed forces have strict rules on the deployment of forces and their equipment. In view of this all East European countries which joined the NATO have started selling their standard Warsaw Pact arms, ammunition, equipment and other armaments and acquiring NATO standard equipment, defence sources said. Poland, Czech Republic and Hungary are the East European nations among the organisation.

A senior Sri Lankan military officer said that the government should use this opportunity to its advantage and sharply increase security forces fire -power and explore the possibility of negotiating friendly terms for future purchases.

The East European country’s offer includes armoured fighting vehicles particularly Main Battle Tanks [MBTs] .

Army headquarters yesterday said that an advanced Multi Barrel Rocket Launcher [MBRL] system airlifted from the East European country has become operational in Jaffna. The sources said that deployment of this particular system seen in action in many parts of the world including Chechnya has been deployed along with the other MBRL acquired from Pakistan, a member of the seven member South Asian Association for Regional Co-operation.

The deployment of these two systems has already produced results, an officer said revealing that recently monitored enemy transmissions in the Jaffna theatre indicated that the LTTE had been forced to take a defensive posture after taking heavy losses in the past several weeks. Monitored enemy transmissions indicated that their front-line units had been badly affected by the effective use of MBRLs and other equipment .

The sources said that apart from acquiring armaments that had not been in use with Sri Lankan forces previously, action has been taken to replace some of the ageing armaments.

The sources, quoting intercepted enemy communications said that the LTTE has admitted losing 712 cadres in the ongoing Jaffna battle. The sources also said that the LTTE leadership has ordered approximately 250 cadres from the Ampara-Batticaloa region to fill vacancies in units depleted in recent battles.

The sources said that Sea Tigers last Monday made a desperate attempt to hit a navy convoy (CENSORED). Navy headquarters yesterday said that at least 13 Sea Tigers including a self styled lieutenant colonel Sashikaran were killed during the confrontation which saw the destruction of four LTTE and two navy boats, (CENSORED) Fast Attack Craft and (CENSORED) Fast Attack Craft.

The military yesterday said that the LTTE on Tuesday night admitted the loss of eight cadres including a top woman leader Kurunja Akka during an army assault on their positions about two kms north of Omanthai around 3 pm earlier on the same day. However, the army said at least 13 terrorists were killed in the assault and many more would have been killed and wounded when artillery engaged enemy reinforcements coming to the assistance of the group under attack.

The military said that troops went beyond about two kms from their Omanthai defences to mount the assault.


Indians lambast Karunanidhi for suggesting Sri Lanka’s break-up
From S. Venkat Narayan Our Special Correspondent

NEW DELHI, June 6: India’s leading political parties and newspapers have lambasted Tamil Nadu Chief Minister and ruling Dravida Munnetra Kazhagam (DMK) Supremo Muthuvel Karunanidhi for suggesting that Sri Lanka be split into Sinhala and Tamil provinces as a solution to the raging ethnic conflict in the island nation.

Main opposition Congress Party General Secretary Ghulam Nabi Azad said it is strange that the DMK, an important constituent of Prime Minister Atal Behari Vajpayee’s ruling National Democratic Alliance (NDA), should have made such a statement. "The prime minister should clarify the NDA’s position on the issue."

The Congress opposes Sri Lanka’s division and wants a solution to be found on the ethnic issue without disturbing its territorial integrity and sovereignty, Azad declared.

The Communist Party of India-Marxist (CPI-M) attacked the central government for its "silence" on the stand of NDA’s Tamil Nadu allies DMK, PMK and MDMK on Sri Lanka. Its politburo said: "With Tamil Nadu chief minister joining in to echo the demand made by the LTTE (Liberation Tigers of Tamil Eelam), this campaign is sought to be raised to new heights."

The CPI-M warned that the division of Sri Lanka and the creation of a separate Tamil Eelam will have "dangerous consequences" in the region and serious implications for India, where separatist movements will receive a boost and give "imperialism" more room to pursue its strategic aims in the region.

CPI National Secretary D Raja said Prime Minister Vajpayee cannot remain silent when some of his own coalition partners are differing with the official line, which is that India wants a solution to the ethnic problem within the framework of Sri Lanka’s unity and territorial integrity.

Meanwhile, all major Indian dailies came out with strong editorials slamming Karunanidhi. "The Hindu" dubbed his statement as "unwarranted, unwelcome and irresponsible." The DMK chieftain’s endorsement of the idea of Sri Lanka being divided along ethnic lines "runs contrary to India’s commitment to a united Sri Lanka, a position which has been the cornerstone of the country’s foreign policy since the mid-Eighties," the daily wrote.

It said the establishment of Eelam would be against India’s larger interests in the South Asia region. "What if leaders of other countries were to make similar suggestions about Kashmir or parts of the Northeast ?"

"The Hindu" pointed out that the situation is totally different in Sri Lanka from the erstwhile Czechoslovakia in eastern Europe, which was split into the Czech and Slovak republics. The Sri Lankan government is engaged in a brutal conflict with the LTTE — "a powerful Pol Potist-type organisation that has ruthlessly destroyed its rivals, that is unwilling to see reason and that behaves as if it is the sole representative of the Tamil community."

The respected daily attacked the MDMK and PMK for engaging in "patent doublespeak" — loudly supporting the cause of a Tamil Eelam on the one hand, and endorsing the stance adopted by the Union Government on the other. "Such contradictory positions are a direct result of seeking to pander to a chauvinistic political constituency in Tamil Nadu while, at the same time, wanting to remain in the Union Government."

The daily went on: "The belief that there is considerable support within Tamil Nadu for the LTTE or Eelam is one of the myths that a number of political parties in the state continue to subscribe to. One result of this is a game of competitive politics or the phenomenon of political parties vying with each other to play what they regard as the Sri Lankan Tamil card."

In its editorial, "The Times of India" asked: "Are the Tamil parties suggesting that there is a constituency in Tamil Nadu that wants Eelam? If no, then, the Indian Tamil parties are unnecessarily whipping up emotions where none exist. If yes, then, that suggests the existence of a pan-Tamil identity that cuts across international borders. Surely, the latter is not something the Indian state can support? Indeed, if this is accepted, it would be perfectly legitimate for a Kashmir Muslim to support Pakistan on the grounds of pan-Islamic emotionalism."

"The Hindustan Times" found three faults with Karunanidhi’s prescription that Sri Lanka be divided into two separate states on grounds of Sinhala-Tamil incompatibility. It wrote: "One: a marriage suggests a coming together of two distinct entities; Sri Lanka was and continues to be a single entity. Two: marriage counselling is not necessarily a perfect guide to global politics. And three: unkind cynics may well want to remind Mr. Karunanidhi that for some men there is an alternative — why go in for a divorce when you can have two wives?"

Declaring that his prescription is unacceptable, the daily roared: "Sri Lanka is a sovereign nation, and an Indian chief minister has no business making pronouncements that seem to encourage secession...solutions can be worked out within the framework of the nation state."

The "Indian Express" opined: "All things considered, the fuzzy formula would appear to be Karunanidhi’s solution, not so much to the neighbouring nation’s problem, as to a peculiar predicament of his own party. The context makes it clear that his statements on the subject were meant for the consumption of his own political camp in the state, rather than either New Delhi or Colombo."

"The Pioneer" chided Karunanidhi for preaching Sri Lanka’s division into two sovereign states for the Sinhalese and Tamils, and said this runs contrary to the Indian Government’s frequently reiterated stand that a settlement has to be found without compromising Sri Lanka’s territorial integrity.

However, it sympathised with his second proposal that Colombo should grant greater autonomy to the Tamils to hammer out a lasting solution. The 1987 India-Sri Lanka Agreement had a devolution package providing for the grant of greater power to the country’s Tamil-majority areas. But the LTTE refused to accept it.

The daily noted that the LTTE also did not respond favourably to President Chandrika Kumaratunga’s 1997 devolution package. Clearly, it is a question of not just persuading the Sri Lankan Government to provide more autonomy, but also of getting the LTTE to accept any arrangement short of Eelam, or giving it the substance of independence under a constitutional fig leaf, the newspaper wrote.

It added: "No Sri Lankan Government can grant either and survive. One hopes that the military situation in Jaffna — which has not yet fallen and where the Sri Lankan Army is now better equipped and motivated to fight—makes the LTTE more accommodating that they have been so far. It is here that leaders like Mr. Karunanidhi have a role. Instead of talking about the splitting up of Sri Lanka, they should be persuading the LTTE to see reason."


In Parliament on Tuesday
Resolution under Customs Ordinance on Import Duties
Bilateral agreements need deeper study — Kodittuwakku
(by Walter Nanayakkara and Kesara Abeywardena)

Parliament met at 10.00 a.m. Tuesday 6 June, 2000. Speaker K. B. Ratnayake presided.

He read the proclamation made by the President extending the state of emergency in the entire island by one more month from June 4, 2000.

Later the ministers presented reports and oral questions were answered by them.

Prof. G. L. Peiris, Minister of Justice, Constitutional Affairs, Ethnic Affairs and National Integration and Deputy Minister of Finance moved the following resolution:

"That the resolution under Section 10 of the Customs Ordinance (Chapter 235) relating to import duties which was presented on 6.4.2000 be approved.

Momentous developments are taking place in the entreprenuerial sector in India. Fifty Indian companies have reposed confidence in Sri Lanka and have agreed to take part in a symposium on the bilateral trade between the two countries.

India is a large source for raw materials from which Sri Lanka could benefit as a result of the Free Trade Agreement between Sri Lanka and India.

Provision has been incorporated into the agreement to protect Sri Lankan agricultural and other industries. There are anti-dumping laws, among others.

We are seeking to reverse the customs duties which are in force in the light of recent developments.

Fewer tariff bands and lesser tariffs are core content of the policy of the government.

After this government came to power, tariff changes were affected to make the local industrial products competitive with the prices of imported goods.

Tariff structures have also helped the transport industry in a big way.

Import duty on cement which ranged between 7.5 percent and 10 percent has now been fixed at 10 percent as an incentive to local production.

At the outset, Mahinda Samarasinghe MP, Kalutara District, asked Minister Peiris to make a statement with particular reference to the impact of the customs duty changes on the goods which come under the Indo-Sri Lanka Free Trade Agreement, as the gazette notification running into a large number of pages contained thousands of articles.

At the conclusion of the minister’s introductory speech, Ronnie de Mel MP, Matara District (UNP) asked the minister for an explanation on the duties on tea, rubber and garment exports to India, under the Indo-Sri Lanka Free Trade Agreement.

The minister said he would study the subject closely and would make a statement when the resolution will be debated for the second time in June.

Karunasena Kodituwakku (UNP — Colombo District) said: The UNP is not against having liberalised trade agreement with India.

With regard to agricultural goods even with a 35% tariff rate, the Indian agricultural goods would be cheaper and our farmer produce will not be able to compete with them. The agricultural produce of Indian farmers is cheap not because of any miracle by them but because the Indian government gives them many concessions. But the Sri Lanka farmer does not get any of these benefits.

However, although it is our policy that this sort of agreements should exist, it will not be of much benefit to local industries.

Although the Indian market is massive, I don’t think we have the capability of increasing our exports. That’s why we say that this agreement was signed in haste. It would have been better to have been discussed with the business community and other parties concerned, before an agreement was reached.

We feel that the government should have concentrated more on service oriented industries. We should have focussed on tourism more. How many airports in India are open to us today? India has maintained a protectionist attitude in its tourism.

One of the world’s most successful bilateral trade agreements is the trade agreement between Japan and USA. It is so because that agreement was reached after a lot of intensive preparation and study. But this agreement was shrouded in secrecy and even ministers didn’t know of it until it was signed.

Vasudeva Nanayakkara (Ratnapura district) said: Under the Indo-Sri Lanka Free Trade Agreement, Sri Lanka has been called upon to deal with a giant. Sri Lanka is compared to a tiny country in comparison to India in the region.

If one thinks Sri Lanka is the winner in this deal with India, it’s utter folly. It is just a fool’s paradise.

Dealing with a colossus

There is no equality between India and Sri Lanka in any sense. A giant like India has its own larger interests and equally larger aims. How can we make a dent on this colossus.

I would rather say that the agreement opens the door for businessmen of the two countries to work closer for the sole purpose of enhancing their mutual wealth. I don’t see any other beneficial outcome from this arrangement for the country.

The poorer patient will not be benefited by the removal of tariffs on drugs imported from India under the agreement.

Even in the US the people are agitating against trade arrangements of this nature.

The final beneficiaries of the Indo-Sri Lanka Free Trade Agreement are a mere 20 percent of the population of the two countries — the elite.

You cannot dump any rubbish in India. But the changes that have taken place in Sri Lanka have thrown open the doors of the country to make it a dumping ground of substandard Indian products.

That is why I say that there are vast differences in trade and commerce between India and Sri Lanka.

The Indian rupee is much higher in value than the Sri Lankan rupee. There is also no common currency in the SAARC region.

For Indian goods, Sri Lanka should pay in US dollars or Indian rupees. To pay by way of Indian rupees, Sri Lanka should export to India more goods than India pays for Sri Lankan goods in Indian rupees.

Kabir Hashim (UNP, Kegalle district) said: Indo-Sri Lanka Free Trade Agreement is destroying Sri Lanka’s economic initiative.

It was said that the agreement allowed the export of 8 million pieces of Sri Lankan garments to India. To qualify for this concession, 6 million pieces must be made of Indian raw material.

Sri Lankan garments use a very low percentage of Indian raw material and therefore will not qualify for the concession.

Then again the agreement allows the export of 15 million kilograms of Sri Lankan tea to India. India recently increased its duty on tea imports. To qualify for the concession of exporting 15 million kilograms of tea to India, tea should be exported through only two Indian ports. Costs of exporting tea through these ports are much more expensive.

In addition to taxes and duties collected by the Centre, there are inter-state taxes and duties in India.

The agreement should have been debated before it was implemented. Only now we are discussing it.

War expenditure

In 1991 the UNP government was spending Rs. 6.1 billion on the war. Today war expenditure has increased by more than tenfold. The government is waging a war in the south too. It sealed the Sunday Leader to cover up its own failures.

Vajira Abeywardena (UNP Galle District) said:— We are going into this agreement with India at a time our industries are passing through difficult times. This will only lead to the ultimate downfall of our agriculture and industries.

Ravi Karunanayake (PA National list) said:— The trade between India and Sri Lanka has been going on for thousands of years although the new agreement came into force recently.

But I want to show that when compared with India, the trading power of Sri Lanka is miniscule. But we don’t oppose this agreement since this is the way we should proceed. However, we should consider the benefits accruing to this country from this agreement. That’s why I say that this agreement has been signed in haste.

Miniscule

India has imposed a number of non-trade barriers for their benefit.

The domestic industries have hit a bad patch and the PA government has transformed the export oriented economy into an import-oriented market economy.

However, although the agreement was signed with a view to benefit Sri Lanka, the Indian bureaucracy has cleverly manipulated it for India’s gain.

The ideal example is the issue concerning tea. I have come to know that tea exporters have to pay more than what was paid before the agreement was signed.

There is a rule concerning the verification of the origin of the country. I think this should be looked into so that value addition will have a bearing.

The Chamber of Commerce were given the negative lists only ten days before they closed.

The government said they wished to protect the domestic industries, but actually the government has increased tariffs on imported items.

We should first win the trade war. If the trade war is won, we would win all other wars.

We should impose non-trade barriers to prevent dumping. We should have protection against dumping of substandard goods.

Mahinda Samarasinghe (UNP — Kalutara District) said: The Indo-Sri Lanka Free Trade Agreement is rather complex and it needs deeper study.

Are we in a position to penetrate the Indian market? The question is are we benefited as a result of the agreement.

India, with a market of nearly one billion people and a 300 million middle class, is being eyed by other countries. The recent visit of Bill Clinton was precisely this.

As far as exports are concerned, India could produce articles with a much more competitive edge than Sri Lanka.

The biggest non-tariff barrier in India is its bureaucracy. It is the Indian bureaucracy that makes Indian exports penetrate other markets. Many countries, including India, uses the non-tariff barriers to by-pass trade agreements.

You must advice your negotiators to ensure that para-tariffs as well as non-tariff barriers will not be applied to stifle our exports under the agreement.

The trouble in the north is also due to the high rate of unemployment in the area. This fact should be given urgent consideration as soon as the situation improved.

Two Central Bank economists in their report for 1999 have made shocking revelations on the impact of the agreement on our industries. They have pointed out 25 percent of our industries will be affected by the agreement and another 15 percent moderately. This is food for thought.

When we gained independence in 1948, our growth rate was far ahead that of India, which received its independence in 1947. But in the years that followed we have slipped while India’s growth rate kept growing.

In India there are only 12 national holidays. The world average is 10. We have 22 holidays in an year. I am not advocating the reduction of holidays but I must say there is a problem as a result of the increased number of holidays. Sri Lankan workers, who have won their holidays by a long struggle, are not agreeable to a reduction in their holidays even if the trade chambers are ready to compensate them.

Further debate on the resolution and the voting was adjourned for June 21, at this stage.

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