The two sides locked horns when the Sri Lankan army demanded that the rebels disarm in return for closing army camps in high security zones to allow the return of civilians. The Tigers have refused to disarm immediately. ``One has to expect thorny issues to be taken up. That is inherent in the process,'' government negotiator G.L. Peiris told reporters. ``The media must not expect a breakthrough at every session and realize this is a difficult process.''

The government doesn't object to resettlement in high security areas, but when and how it should take place must be addressed first. A confidential report prepared recently by one army commander security can be relaxed in high-security zones only in stages ``in relation to de-escalation'' by the Tigers.

The report was expected to dominate this week's discussions. It details the importance of high security zones, the security risks of dismantling them and recommendations on how to remove the threats and provide for resettlement. Chief rebel negotiator Anton Balasingham, who arrived in Thailand late Saturday, has said that finding a political settlement to the conflict will not be addressed until the government considers resettlement of displaced Tamils.

Government negotiator Rauf Hakeem said a human rights issues and an international aid conference to be held in Japan in summer will also be discussed. This week's meeting will also have to select a multinational agency to be the custodian of a rehabilitation fund that will receive and manage money from international donors.

This issue is also contentious as the likely custodians the World Bank and the United Nations Development Fund have indicated they will work only with the government, and not the rebels. An international meeting in Oslo, Norway last month garnered nearly US$70 million in aid but all of it was pledged to the Sri Lankan government, not the rehabilitation fund. Published: Sun Jan 5 02:54:51 EST 2003