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If GOSL wants to keep Japanese aid, better to pay some respect to the Japanese demand.
Issuing a clear request to LTTE for talks will do a big difference, while stopping war for 48h.
Japan is only moving to very hard line, if the US agrees for that. As long as the US is going against LTTE, risk is low to lose aids.
Japan also must have an understanding of the risk of these warnings, while its sending army to fight terrorists in Iraq (anyway, they are back home now).
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