Sri Lanka's Tamil Tiger rebels ended a boycott of peace talks after handing over historic proposals to end three decades of ethnic bloodshed. The rebel Liberation Tigers of Tamil Eelam (LTTE) called for an Interim Self-Governing Authority (ISGA) in their first ever blueprint for peace in a country where more than 60,000 people have been killed in separatist violence. The document handed over to Colombo through Norwegian peace brokers on Friday and publicly unveiled yesterday envisages the ISGA raise taxes, maintains law and order, controls trade and negotiates foreign loans and funding in a federal set-up. The European Union member states yesterday welcomed the blueprint for a power-sharing arrangement as an "important step forward in the peace process". The EU added it hoped the proposals would lead to a resumption of peace talks stalled since April. "The EU heads of mission emphasise the linkage between assistance by the international donor community and substantial parallel progress in the peace process," the statement said. International donors who pledged 4.5 billion US dollars in assistance to Sri Lanka during a June aid conference in Japan had linked the release of money to progress in the Norwegian-backed peace process. However, the Sri Lankan government said it had fundamental differences with the proposal. "It differs in fundamental respect from the proposals submitted by the government of Sri Lanka," it said, without elaborating. Releasing the eight-page document in the rebel-held town of Kilinochchi, 330km north of here, the LTTE's political wing leader S P Thamilselvan said the Tigers were ending their six-month peace talks boycott. "We look forward to continuing our dialogue with the government and to reaching rapid agreement on the creation of an ISGA so as to effectively bring normalcy and economic development to the Tamil People in the Northeast," Thamilselvan was quoted as saying on the rebels' peace secretariat website. The Tigers suspended their participation in talks in April after accusing the government of failing to deliver on promises made at six rounds of negotiations held since September last year. The final draft of the plan proposes the ISGA functions until a permanent peace deal is reached with the government or for a maximum period of five years. Thereafter, the Tigers propose elections under an independent elections commission to be appointed by the ISGA. There was no mention of the role of LTTE's combat units as well as how their own "police" and "courts" would function under an ISGA arrangement that envisages institutions to administer justice. **Key proposals*** **The government*** · proposes a "Provincial Administrative Structure for Northern and Eastern Provinces" composed of government nominees, including by opposition, LTTE nominees and Sri Lanka Muslim Congress nominees - number of members to be decided by two parties, with majority nominated by LTTE - powers will cover normal functions of a government, except the areas of police and security, land and revenue. · government to appoint "special commissioner" with power over state machinery to implement council decisions. · council's period of operation to be reviewed by the parties every six months. · a Muslim delegation must participate in talks on the interim administration. · district committees will be formed to carry out the council's decisions at the district level. The LTTE - proposes an "Interim Self-Governing Authority" (ISGA) with wide powers - Majority of ISGA members nominated by the LTTE, with others appointed by the government and Muslim community. Separate judicial institutions to be set up in the north and east. ISGA to have power to borrow internally and externally and to regulate internal and external trade. An independent Human Rights Commission will be appointed to determine use of all non-privately owned land. ISGA would have full powers over finances, law and order and the civil service. ISGA calls on the military to vacate private land immediately. ISGA to control marine and offshore resources of adjacent sea area and the power to regulate access. **PHOTO CAPTION*** Rebel Liberation Tigers of Tamil Eelam leader S. P. Thamilselvan (L) addresses the press in the rebel-held northern Sri Lankan town of Kilinochchi. (AFP)