Sridhar: I totally disagree with your assertion that the LTTE aren't a threat to India and can be enlisted to further Indian interests.
The LTTE are't really "valliant freedom fighters" for the Tamil cause. They are a bunch of crazed killers who happen to be Tamil. They don't show hesitation in killing anyone including their own Tamil bretheren. Ranjith's comparison to the US-Mujhadeen relationship is accurate here. Eventually they will turn on India as well.
