On the 29th of July 1987, Prime Minister Rajiv Gandhi and President Jayawardene signed the Indo Sri Lanka Agreement to 'establish peace and normalcy in Sri Lanka.' The preamble to the Agreement acknowledged 'the imperative need of resolving the ethnic problem of Sri Lanka, and the consequent violence, and for securing the safety, well being and prosperity of people belonging to all cities in Sri Lanka'. The Peace Agreement is an important and significant document not only because of that which it offers as the solution to the ethnic problem', but also because it serves to underline India's role as a regional power in South Asia. On both counts, the Peace Agreement merits reasoned consideration.
The Peace Agreement should, be placed in its context - a context that was made public by the exchange of letters of the 29th of July 1987 between the President of Sri Lanka and the Prime Minister of India. Clause 2 of the letter dated the 29th of July 1987 from Prime Minister Rajiv Gandhi to