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Case Number: 2011-1038-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the Clinton Presidential Library Staff. Folder Title: Lithuania [3] Staff Office-Individual: European Affairs-Norland, Richard Original OA/ID Number: 2630 Row: Section: Shelf: Position: Stack: 33 5 10 1 V Withdrawal/Redaction Sheet Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001 report Country Risk Assessment Report: Lithuania (12 pages) 07/21/2000 P1/b(1) KBH 11/20/2023 002 letter President William J. Clinton to President Valdas Adamkus of 06/26/2000 P1/b(1) KBH 11/20/2023 Lithuania re: Moscow (1 page) COLLECTION: Clinton Presidential Records National Security Council European Affairs (Richard Norland) OA/Box Number: 2630 FOLDER TITLE: Lithuania [3] 2011-1038-F kh1046 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions [(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells [(b)(9) of the FOIA] RR. Document will be reviewed upon request. Norland, Richard B. (EUR) From: Goldberg, David B. (RECORDS/INTECON) Sent: Tuesday, September 05, 2000 4:56 PM To: @EUROPE - European Affairs Cc: @INTECON - Economic Affairs; @LEGAL - Legal Advisor; @LEGISLAT - Legislative Affairs; @WWD - West Wing Desk; @EXECSEC - Executive Secretary; @UP - APNSA Special Assistants; @PRESS - Public Affairs Subject: Pkg #5160 -- BILATERAL INVESTMENT TREATY W/ LITHUANIA [UNCLASSIFIED] Per the White House Executive Clerk's Office, Pkg #5160 Treaty Between the United States and Lithuania for the Encouragement and Reciprocal Protection of Investment was approved by the President and transmitted to Congress today, September 5. 1 CONFIDENTIAL DECLASSIFIED CONFIDENTIAL PER E.O. 13526 2016. 384-m (1.45) cli.ty 8/23 KBH 6/23/2023 COUNTRY RISK ASSESSMENT REPORT Osterham JULY 21, 2000 attn : Dich Norland COUNTRY: LITHUANIA 368 SOVEREIGN RISK RATING: Current: D; Proposed: No Change Dme NONSOVEREIGN RISK RATING: Current: D-; Proposed: D EXPECTED PAYMENTS PERFORMANCE Lithuania has made reasonably good progress in economic reforms -- including price and trade liberalization, privatization, and banking and legal reforms although it has not pursued them quite as aggressively as its Baltic neighbors. Since April 1994, monetary and exchange rate policy has been controlled by a currency board arrangement (CBA) which pegs the litas to the dollar. Trade has been redirected toward western markets, although Russia was still its largest trading partner until the August 1998 crisis. The Government of Lithuania's (GOLH) reform efforts resulted in high rates of economic growth and falling inflation. However, given that Lithuania has a small, open economy with a fixed exchange rate, it is very susceptible to external shocks. The impact of the Russian crisis was substantial due to Lithuania's relatively (compared to the other Baltic states) strong trade ties to the country. As a result, there was a deep recession last year, which attempts at fiscal stimulus could not overcome. The economy is projected to rebound modestly this year. Lithuania's chief economic difficulties are its twin deficits -- fiscal and current account, which are inextricably intertwined. The GOLH concluded a 15-month, $83 million stand-by arrangement (SBA) with the IMF in March (but retroactive to January) which commits it to an aggressive fiscal consolidation. The government claims it views the program as precautionary, i.e., there will be no purchases unless the situation unexpectedly deteriorates, but which it wanted to signal its commitment to fiscal adjustment. If the fiscal situation can improve appreciably, and there is reason to believe it will, the medium-term prospects will remain good. If little or no improvement results, the situation will ultimately become unsustainable and a severe adjustment could be required. No change from the current sovereign rating of D is proposed. The rating is heavily influenced by the "balance of payments adjustment capacity" indicator, which in turn is in large part determined by the current account deficit factors. This stems from the fact that the current account imbalance will be the crucial issue in determining Lithuania's external sustainability over the medium-term. The "government deficit" factor also weighs heavily in the "macroeconomic environment" indicator, given that the current account deficit is driven to a significant degree by the fiscal shortfall. CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL LITHUANIA An upgrade to the nonsovereign rating to D from D- is proposed. This proposal is based on improvements to the "legal system" (two steps) and the "business climate" indicators (one step). RATING AGENCY ASSESSMENT - D Rating Lithuania has long-term foreign currency ratings from all the major private credit rating agencies as well as an OECD rating. Fitch IBCA and Moody's both rate Lithuania the equivalent of an ICRAS D; S&P's rating equates to C-; and the OECD rating equates to D-. PAYMENTS/ARREARS HISTORY - B Rating Lithuania has had a good repayment record since gaining independence from the Soviet Union in 1991. It has had no Paris or London Club rescheduling and arrears have been modest. However, this year it requested that the Department of Agriculture forgive approximately $76 million in debt from the PL-480 program, which was not granted. FOREIGN DEBT SERVICE BURDEN - C- Rating Lithuania's foreign debt remains moderate, although it has grown substantially in recent years. Last year alone external debt increased to 91% of foreign exchange income from 69% in 1998. The significant increase is largely related to the fiscal deficit, which has primarily been financed by foreign borrowing. The government is also pursuing a policy of replacing domestic debt with foreign currency due to lower interest rates prevailing on the latter. The proportion of short-term debt is high - averaging 21% of total debt over the forecast period -- and, while a concern, the danger is somewhat mitigated by several factors. The short-term debt is largely privately held, approximately 70% of it consists of trade credits from suppliers with reduced rollover risks, and foreign reserves exceed short-term debt by approximately 25%. BALANCE OF PAYMENTS ADJUSTMENTS CAPACITY - D- Rating Lithuania's current account deficit is one of the country's salient economic problems and a substantial source of vulnerability, i.e., if foreign direct investment were to slow appreciably or access to capital markets faltered, the balance of payments could become unsustainable. Thus, the two current account indicator are overweighted in this factor. According to official data, the current account deficit fell from 12.1% in 1998 to 10.3% last year. However, in actuality it probably increased. Balance of payments data in 1999 incorporated improved coverage of current account receipts (particularly shuttle exports) and thus the IIF estimates that the 1998 current account imbalance was approximately 8%. 2 CONFIDENTIAL CONFIDENTIAL LITHUANIA The current account shortfall is entirely the result of a merchandise trade imbalance. The combined remaining items of the current account show a slight surplus. The Russian crisis has been cited as a reason for the external shortfall, and it undoubtedly has played a role in the large (21%) decline in exports last year. However, Russia and other CIS countries are becoming less important in Lithuania's trade relative to EU markets. Primarily, the deficit stems from Lithuania's heavy dependence on imports for energy and industrial restructuring, a large fiscal deficit (see below), and lagging external competitiveness. The latter stems from the dollar peg incorporated in the CBA, which resulted in a real, trade-weighted appreciation of the litas of 16% in 1998 and 22% in 1999 and sluggish productivity growth.² Thus it is imperative that the government consolidate its fiscal position and follows through with privatization and structural reforms to boost competitiveness. The forecast used in this analysis is optimistic in that regard and, therefore, a substantial deviation from these assumptions could render the current account deficit unsustainable. MACROECONOMIC ENVIRONMENT - C- Rating The chief issue concerning the macroeconomic environment is the fiscal situation. The fiscal deficit jumped from 2% of GDP in 1997 to 6% in 1998, and then rose further to 8% in 1999. Fiscal policy is particularly important in Lithuania in that the CBA board arrangement effectively removes monetary policy as a discretionary tool⁴ and also because the deterioration in the government's savings-investment balance contributes to the current account deficit. 'The Russian crisis accelerated the redirection of exports from CIS to EU countries. For example, exports to Russia amounted to 13% of the total in 1997 and 7% last year. Conversely, exports to Germany (now Lithuania's leading export market) rose from 15% to 16% over the same period. Nonetheless, Russia remains the largest importer (20% of total imports) into Lithuania due to the latter's reliance on oil imports. Lithuania's redirection of trade, while significant, has lagged that of it's Baltic neighbors. ²In contrast to the other Baltic countries, where large increases in industrial productivity have helped to offset real exchange rate increases, productivity improvements in Lithuania have been smaller. ³In addition to the deficit, the government has also accumulated budgetary arrears. 4Since the CBA requires 100% foreign currency cover of the monetary base, free movement of capital, and no central bank lending to the government, the money supply is entirely endogenous, i.e., dependent on foreign currency capital flows. 3 CONFIDENTIAL CONFIDENTIAL LITHUANIA The new IMF SBA calls for a substantial fiscal consolidation that would cut the shortfall to just under 3% this year as well as to eliminate all arrears.⁵ There are reasons to be optimistic that this target can be reached. The target incorporates realistic economic assumptions (e.g., 2% GDP growth and 3% inflation). In addition, the outsized deficits in 1998-99 were in part a result of expenditures that are not regularly recurring -- primarily restitution for savers and loans to industrial enterprises⁶ -- and the dampening effect on revenues of the 1999 recession. The desire to maintain the IMF's imprimatur should also be incentive to improve the fiscal outlook. Conversely, parliamentary elections are scheduled for this October, which could induce fiscal laxity in measures requiring difficult political decisions. Pressure for greater expenditures will emanate from EU and NATO accession-related costs and Lithuania's unfavorable demographics. Also, some of the deficit is attributable to structural deficiencies (e.g., poor revenue collection and spending controls) which may not be resolved quickly. In any event, should the GOLH miss its fiscal deficit target, but still come reasonably close (e.g., 4%), the situation should be sustainable. As noted above, Lithuania suffered a recession (-3.3%) in 1999, but is expected to rebound this year with 2% growth. The downturn was partly the result of lower exports to the CIS. However, the economy was also impacted by supply interruptions at the Mazeikiu Nafta oil refinery.⁷ This year, with Russian oil supplies flowing again, oil refinery production is providing a boost to GDP growth. Nonetheless, compared to the other Baltic countries, Lithuania's emergence from recession has been slow due to its greater structural difficulties. ⁵The IMF also recommends the establishment of a fiscal reserve fund (to be funded by privatization proceeds) which would provide a financial cushion in difficult times and would also separate the inflow of privatization proceeds from government expenditures. ⁶Restitution payments are intended to compensate depositors at state banks for the hyperinflation of 1991-92. Such payments amounted to 2.2% of GDP in 1999 (approximately $230 million) and there are $500 million in restitution claims outstanding. However, the GOLH has announced it will defer the remaining claims for two years. Loans to industrial enterprises accounted for 2.4% of GDP. However, approximately 75% of these loans were to one enterprise -- Mazeikiu Nafta -- in large part in order to sell a 33% stake to a strategic foreign investor. The sale committed the government to provide $324 in medium-term loans. However, all but $21 million was disbursed by end-1999, thus future loans should be minimal. Moreover, the government has announced that it will reduce its net lending to industrial enterprises across the board. Mazeikiu Nafta accounts for an estimated 10% of GDP. Lukoil, feeling it was shut out of the privatization, responded by temporarily cutting off crude oil supplies to the company. 4 CONFIDENTIAL CONFIDENTIAL LITHUANIA POLITICAL/SOCIAL CONSTRAINTS - C- Rating The election of unstable multiparty coalitions will remain a problem for Lithuania beyond the 2000 elections. The numerous political parties, which are often dominated by personalities, render it exceedingly difficult for any single party to win control of the legislature. Moreover, voters are rejecting the more established parties and turning to younger, less-known ones. This is resulting in more political parties in an already overcrowded political landscape, ensuring that no party will receive a majority, and forcing larger, more complex coalitions. Privatization has proven politically controversial and resulted in several resignations. Nonetheless, while policymaking has clearly been somewhat hampered by the political instability, there is a consensus for orthodox macroeconomic policies and structural reforms. The dominant issue of Lithuania's foreign relations is its desire to join the EU and NATO. Lithuania was invited to begin EU accession negotiations in December 1999, although membership is not expected within the medium term. Lithuania also hopes to be invited to join in the next wave of NATO expansion. Despite its expressed desire for NATO membership, Lithuania's relations with Russia are relatively good. The GOLH granted full citizenship to ethnic Russians within Lithuania, and it allows the Russian military personnel and equipment access across Lithuania to Kaliningrad. Relations with the United States are good and expected to remain so. VULNERABILITY TO FOREIGN EXCHANGE CRISIS - D Rating The value of the Lithuanian litas has been fixed to the U.S. dollar since April 1994.9 The peg is achieved by virtue of a CBA, which guarantees conversion at the prevailing rate. As long as the government adheres to the CBA, Lithuania's vulnerability to a foreign exchange crisis is substantially minimized. Although there are various forms of CBAs, all require backing of the domestic monetary base by foreign reserves.¹⁰ Thus should foreign reserves fall for any reason (e.g., current account deficits, foreign capital outflows), the CBA requires that the domestic monetary base contract proportionately. This raises domestic interest rates and results in ⁸The major criticism is that some large-scale privatizations have lacked transparency and resulted in poor outcomes for the government. 9 At a rate of 4 litas per dollar. ¹⁰Currently, there is more than 100% hard currency cover at 4 litas per dollar. 5 CONFIDENTIAL CONFIDENTIAL LITHUANIA economic contraction, which should reverse the trend of declining foreign reserves.¹¹ Thus, what might be a traditional foreign exchange crisis for other countries becomes a (sometimes severe) contraction of domestic demand for CBA countries. Under such scenarios, the primary issue for CBA countries is whether the government is willing to sacrifice domestic economic growth for exchange rate stability. If not, the CBA must be disbanded. However, in a recent paper, the IMF defined currency crisis in economies with pegged exchange rate regimes in the following manner: "A currency crisis in a fixed exchange rate system may be said to occur when a speculative attack leads to a "major" loss of foreign exchange reserves or "very high" interest rates, or the abandonment of the exchange rate peg. This definition would apply equally to countries with currency boards and countries with conventional pegs."¹² Thus, one could conceivably consider a lower level of foreign exchange reserves or exorbitant interest rates equivalent to a large currency depreciation. However, as noted above, the equilibrating mechanism of monetary policy under a CBA would, in most instances, render such dislocations relatively short-lived SO that losses of foreign reserves or increases in interest rates would not become "excessive." However, the GOLH has announced it will change the peg from the dollar to the euro in mid-2001. It is unclear if they will continue to maintain the CBA at that time. Also unclear is whether they will use that opportunity to devalue the litas, regardless of whether they maintain the CBA. If the current account deficit is not reduced, it is quite possible that either one or both options will be exercised. Thus, the current CBA does not definitively mitigate the chances of a currency crisis over the medium term. The short-term debt factor has been slightly underweighted in this indicator for the same reasons outlined in the "foreign debt service burden" section. BANKING SYSTEM - D Rating Last year's merger of two large banks (Vilnius Bank and Hermis Bank) has reduced the number of banks in Lithuania to nine. The sector is relatively concentrated with the three largest banks accounting for 75% of banking assets and the largest (Vilniaus Bankas) for 41%. Foreign participation has increased recently with growing openness of the sector. Privatization has not yet been completed. However, the two remaining state-controlled banks -- the Agricultural Bank and the Savings Bank, which account for 50% of banking assets -- are supposed to be privatized as part of the current IMF program. The banking sector is somewhat less developed 11 By cutting the current account deficit as well as enticing the return of foreign capital by relatively high interest rates. "See IMF, "The Baltics - Exchange Rate Regimes and External Sustainability," 11/29/99, p. 5. 6 CONFIDENTIAL CONFIDENTIAL LITHUANIA than in the other Baltic countries, as evidenced by a lower volume of lending and shorter average maturities. Lithuanian banks were not as impacted as those in Latvia from the Russian crisis. The direct impact was small due to the limited exposure to Russia (about 2% of assets). However, indirectly it affected the banks via the strong trade ties between the two countries. According to the IMF, the average capital adequacy ratio is healthy and has remained at more than twice the required level. Nonperforming loans fell from 12.5% at the beginning of 1999 to 9.7% at the end of the year. There is the danger of increasing foreign currency exposure, which could impact the banks when the current CBA is altered. The proportion of foreign currency deposits is high and growing. 13 The economy exhibits a low level of monetization reflecting the relatively weak credibility and depth of the banking system. The government instituted a deposit insurance program in January 1999. It covers deposits up to 45,000 litas ($11,250) but will be increased beginning January 2001 to 65,000 litas ($16,250). LEGAL SYSTEM - D Rating Lithuania was invited to begin EU accession negotiations in December 1999. Therefore, Lithuania will be required to harmonize many of its laws with EU practices, which should facilitate continued improvements in the legal environment. According to the U.S. Embassy, the new foreign investment law of August 1995: "provides that equal protection is afforded to both foreign investors and domestic investors. No special permit is required from governmental authorities to invest foreign capital in Lithuania and there are no prohibitions or limitations provided the investor carries on business in accordance with Lithuanian law State institutions have nc right to interfere with the legal possession of the foreign investor's property Foreign investors are entitled to enforce their rights by applying to the court of Lithuania or directly to the International Center for Settlement of Investment Disputes under the Washington Convention of 1965." Despite the promulgation of enhanced commercial laws, there are complaints about their effectiveness, such as in the case of intellectual property rights. FOREIGN EXCHANGE AVAILABILITY - C Rating There are currently no administrative obstacles to acquiring foreign currency in Lithuania and the CBA should prevent a shortage of foreign currency. Thus, until the CBA is abandoned, which is possible within a year, foreign exchange availability should not be an issue. ¹³It was 49% in 1999, up from 41% a year earlier. 7 CONFIDENTIAL CONFIDENTIAL LITHUANIA BUSINESS CLIMATE - C- Rating Lithuania's business climate is reasonably good. It aspires to WTO membership within the next year and has an open trade regime.¹⁴ Moreover, the government has a strong incentive -- EU membership -- to move further ahead with regulatory and legal reforms. This will require reducing or eliminating various subsidies conferred to specific industries. There are complaints among the American business community that commercial activity is hampered by over- regulation, excessive bureaucracy, and corruption. According to EBRD, in mid-1999 70% of GDP was created by the private sector. There are various large-scale privatizations remaining and, as noted above, several privatizations have been controversial, thereby impeding a political consensus for further ones. Nonetheless, a number of large-scale privatizations should be completed by 2001 in order to satisfy IMF program conditionality as well as to fund the fiscal reserve fund. Although the stock exchange is highly capitalized relative to other FSU countries, liquidity is limited to a minority of shares. 15 Considering turnover rather than market capitalization would change the stock market factor from C to D- or E. In addition, the bourse is highly concentrated with 70% of the market capitalization accounted for by only 10 enterprises. ¹⁴Several trade restrictions were instituted in the wake of the Russian crisis, but the current IMF program incorporates structural benchmarks that require elimination of a number of them and EU membership will also involve dismantling various trade barriers. 15See IIF, Lithuania Economic Report, 3/10/00, p. 4 and Bank of Finland Institute for Economies in Transition, May 2000, "Baltic Securities Markets", p. 6. 8 CONFIDENTIAL LITHUANIA SOVEREIGN RISK RATING: D JULY 21, 2000 CONFIDENTIAL A B C C- D D- E E- F F- F= EXPECTED PAYMENTS PERFORMANCE RATING AGENCY AND OECD ASSESSMENT FITCH IBCA RATING MOODY'S RATING OECD RATING STANDARD AND POOR'S RATING PAYMENT/ARREARS HISTORY 1. WITH THE UNITED STATES Not Available 2. WITH OFFICIAL CREDITORS 3. WITH COMMERCIAL BANKS 4. OFFICIAL TRANSFERS DEPENDENCY 5. OFFICIAL CREDIT DEPENDENCY FOREIGN DEBT SERVICE BURDEN 6. DEBT-TO-GDP RATIO 7. DEBT SERVICE RATIO 8. DEBT-TO-FX RATIO 9. INTEREST-TO-FX RATIO 10. SHORT-TERM DEBT 11. MULTILATERAL DEBT BOP ADJUSTMENT CAPACITY 12. EXPORT ORIENTATION 13. FOREIGN EXCHANGE POLICIES 14. COMMODITY EXPORT DEPENDENCY 15. CURRENT ACCOUNT WITHOUT AID 16. CURRENT ACCOUNT WITH AID 17. EQUITY INFLOWS 18. PRIVATE CREDIT INFLOWS 19. FOREIGN EXCHANGE RESERVES MACROECONOMIC ENVIRONMENT 20. PER CAPITA INCOME LEVEL 21. REAL GDP GROWTH 22. PRIVATE INVESTMENT 23. SIZE OF GOVERNMENT 24. REVENUE TRANSFERS DEPENDENCY 25. FISCAL POLICIES 26. ADJUSTMENT PROGRAMS 27. RATE OF INFLATION 28. GOVERNMENT DEFICIT 29. MILITARY SPENDING 30. DOMESTIC DEBT 31. DEBT SERVICE TO REVENUES RATIO 32. ADULT LITERACY POLITICAL/SOCIAL CONSTRAINTS 33. INTERNAL POLITICAL STABILITY 34. EXTERNAL THREATS 35. RELATIONS WITH UNITED STATES CONFIDENTIAL LITHUANIA NONSOVEREIGN RISK RATING: D JULY 21, 2000 A B C C- D D- E E- F EXPECTED PAYMENTS PERFORMANCE VULNERABILITY TO FOREIGN EXCHANGE CRISIS 36. DEBT-TO-FX RATIO 37. SHORT-TERM DEBT 38. CURRENT ACCOUNT WITHOUT AID 39. BANKING SYSTEM FACTOR BANKING SYSTEM 40. NONPERFORMING LOAN RATIO 41. CREDIT RATING AGENCY ASSES. 42. FINANCIAL STRENGTH Not Available 43. GUARANTEE NETWORK 44. REGULATORY ENV. AND BANK SUP. 45. NATIONAL ACCOUNTING STANDARDS 46. CONCENTRATION OF LOANS LEGAL SYSTEM 47. BANKRUPTCY AND FORECLOSURE LAWS 48. TRANSPARENCY OF THE LEGAL SYSTEM 49. CONTRACT ENFOR. AND DISPUTE RESOL. FOREIGN EXCHANGE AVAILABILITY 50. EXPORT ORIENTATION 51. FOREIGN EXCHANGE RESERVES 52. FOREIGN DEBT SERVICE BURDEN 53. FOREIGN EXCHANGE CONTROLS BUSINESS CLIMATE 54. FOREIGN EQUITY INVESTMENT 55. RATE OF INFLATION 56. STOCK MARKET 57. ADULT LITERACY 58. PHYSICAL INFRASTRUCTURE 58A. KILOWATT HOURS PER CAPITA 58B. KMS PAVED ROAD PER MN PEOPLE CONFIDENTIAL 30 July 2000 LITHUANIA: MEDIUM TERM OUTLOOK (US$ MNS.) Average 1997 1998 1999 2000 2001 2002 2003 2004 00 04 Merch. Exports 4192 3962 3250 3790 4220 4600 5014 5465 4618 % Top Two Exports 21% 21% 21% 21% 21% 21% 20% 20% 21% Merch. Imports 5340 5480 4480 4850 5320 5719 6148 6609 5729 Trade Balance -1147 -1518 -1230 -1060 -1100 -1119 -1134 -1144 -1111 Service Credits 1112 1234 1153 1350 1430 1488 1683 1860 1562 Service Debits 1176 1248 1168 1390 1520 1460 1614 1783 1553 Net Priv Trsfrs 134 132 110 100 100 100 100 100 100 Net Off'l Trsfrs 100 103 55 100 100 125 125 125 115 % of FXCI 2% 2% 1% 2% 2% 2% 2% 2% 2% % of Gov Revenue 5% 4% 2% 4% 3% 4% 4% 4% 4% CAB, without N.O.T. -1078 -1401 -1135 -1000 -1090 -992 -965 -967 -1003 % of GDP -11% -13% -11% -9% -9% -8% -8% -7% -8.2% CAB, with N.O.T. -977 -1298 -1080 -900 -990 -867 -840 -842 -888 % of GDP -10% -12% -10% -8.1% -8.3% -7.0% -6.6% -6.3% -7.3% FX Current Inflows 5539 5431 4568 5340 5850 6313 6922 7550 6395 G&S Exports 5304 5196 4403 5140 5650 6088 6697 7325 6180 as % of GDP 55% 48% 42% 46% 47% 49% 52% 55% 50% Debt Service 646 404 534 681 554 757 782 793 713 % of FXCI 12% 7% 12% 13% 9% 12% 11% 11% 11% % of Gov Revenue 29% 16% 22% 26% 19% 25% 23% 23% 23% Debt Amortization 506 233 324 421 264 469 485 492 426 Interest Payments 140 171 210 260 290 287 297 301 287 % of FXCI 3% 3% 5% 5% 5% 5% 4% 4% 4.5% External Debt 3253 3740 4136 4705 5388 5697 5886 5973 5530 % of GDP 34% 35% 39% 42% 45% 46% 46% 45% 45% % of FXCI 59% 69% 91% 88% 92% 90% 85% 79% 87% % Short-Term 32% 28% 23% 22% 21% 20% 20% 19% 21% % Multilateral 16% 15% 14% 14% 14% 13% 13% 12% 13% FX Reserves/Imports 16% 21% 21% 21% 22% 22% 22% 22% 22% Gross FX Capital Inflows, % of FX Current Inflows: Equity (Direct & Portfolio 5% 16% 8% 10% 10% 11% 11% 12% 10.7% Private Credit 15% 5% 8% 6% 7% 7% 8% 8% 7.2% Official Credits 2% 3% 3% 4% 4% 4% 4% 4% 3.6% Population 3.7 3.7 3.7 3.7 3.7 3.6 3.6 3.6 3.6 Noml GDP, Bn $ 9.6 10.7 10.5 11.1 11.9 12.3 12.8 13.3 12.3 P/C Income, $ 2588 2901 2846 3017 3257 3384 3534 3690 3376 Real GDP Growth, % 7.3% 5.1% -3.3% 2.0% 3.5% 4.0% 4.0% 4.0% 3.5% Inflation, % 9% 5% 1% 2% 3% 3% 3% 3% 2.9% Priv Investment/GDP 24% 22% 21% 21% 22% 22% 21% 21% 21% Gov Revenues/GDP 23% 23% 23% 24% 25% 25% 26% 26% 25% Gov Spending/GDP 25% 29% 31% 27% 28% 28% 29% 29% 28% Mil. Spending/GDP 2% 2% 2% 2% 2% 2% 2% 2% 1.9% Gov Deficit/GDP 2% 6% 8% 3% 3% 3% 3% 3% 3.0% Cred to Pub Sec, % 16% 12% 16% 16% 15% 15% 14% 14% 14.9% LITHUANIA: NONSOVEREIGN SECTOR INDICATORS ( %) Average 1997 1998 1999 2000 2001 2002 2003 2004 00 04 FXCI/External Debt 59% 69% 91% 88% 92% 90% 85% 79% 87% ST Debt/External Debt 32% 28% 23% 22% 21% 20% 20% 19% 21% CAB, without N.O.T./ GDP -11.2% -13.0% -10.8% -9.0% -9.2% -8.0% -7.5% -7.3% -8% Export of G&S as % of GDP 55% 48% 42% 46% 47% 49% 52% 55% 50% FX Reserves/Imports 16% 21% 21% 21% 22% 22% 22% 22% 22% Foreign Equity Inv/FXI 5% 16% 8% 10% 10% 11% 11% 12% 11% Rate of Inflation 9% 5% 1% 2% 3% 3% 3% 3% 3% CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL RECORD ID: 0004664 NSC/RMO PROFILE RECEIVED: 18 JUL 00 14 TO: ADAMKUS, VALDAS FROM: PRESIDENT DOC DATE: 03 AUG 00 SOURCE REF: KEYWORDS: LITHUANIA. HS PERSONS: SUBJECT: REPLY TO PRES OF LITHUANIA ACTION: FOR DISPATCH DUE DATE: 29 JUL 00 STATUS: C STAFF OFFICER: NORLAND LOGREF: FILES: PA NSCP: CODES: DOCUMENT DISTRIBUTION FOR ACTION FOR CONCURRENCE FOR INFO STATE BLINKEN NORLAND NSC CHRON DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-17-2013 2011. 1038-F COMMENTS: DISPATCHED BY DATE BY HAND W/ATTCH OPENED BY: NSTSM CLOSED BY: NSTCG DOC 4 OF 4 CONFIDENTIAL CONFIDENTIAL RECORD ID: 0004664 ACTION DATA SUMMARY REPORT DOC ACTION OFFICER CAO ASSIGNED ACTION REQUIRED 001 NORLAND Z 00071814 APPROPRIATE ACTION 002 BERGER Z 00072720 FWD TO PRESIDENT FOR SIGNATURE 003 PRESIDENT Z 00072915 FOR SIGNATURE 004 X 00080314 PRESIDENT SGD LTR 004 STATE X 00080314 FOR DISPATCH DISPATCH DATA SUMMARY REPORT DOC DATE DISPATCH FOR ACTION DISPATCH FOR INFO 001 000714 STATE 003 000729 VICE PRESIDENT 003 000729 WH CHIEF OF STAFF 004 000803 STATE 004 000803 ADAMKUS, VALDAS CONFIDENTIAL NATIONAL SECURITY COUNCIL NATIONAL SECURITY COUNCIL THE WHITE HOUSE THE WHITE HOUSE PROOFED BY: D LOG # that PROOFED BY: LOG # 4464 URGENT NOT PROOFED: SYSTEM RRS INT ARS URGENT NOT PROOFED: SYSTEM PRS INT ARS BYPASSED WW DESK: DOCLOG R A/O BYPASSED WW DESK: DOCLOG A/O 58 SEQUENCE TO INITIAL/DATE DISPOSITION SEQUENCE TO INITIAL/DATE DISPOSITION GIRE GIRE HAAS HAAS POWELL POWELL \ BASH 80/7/27 BASH 1 BB 8/3 BRADTKE BRADTKE RUDMAN 2 MR7/29 RUDMAN KERRICK KERRICK BERGER BERGER SITUATION ROOM SITUATION ROOM WEST WING DESK 3 or 7/29 X Pres WEST WING DESK 7 79/3 A RECORDS MGMT. RECORDS MGMT. W 108/3 A A = ACTION I = INFORMATION D = DISPATCH R = RETAIN N = No FURTHER ACTION A = ACTION I = INFORMATION D = DISPATCH R = RETAIN N = No FURTHER ACTION RAM 27 m 8:00 CC: COMMENTS: Str : Lithuanian Pres Adamkus 'AG AHC 3 am 9:33 COMMENTS: DATE August 3,2000 ? NATIONAL SECURITY COUNCIL THE WHITE HOUSE 4664 PROOFED BY: LOG # / IRGENT NOT PROOFED BYPASSED WW DESK: SYSTEM DOCLOG PR$ D INT A/O ARS 8-3-00 Typo- - "Excellency" misspelled Okay for Signature by Dep Stf Secretary JLR Date 8/3/00 WEST WING DESK 7N / 7) 8/4 A RECORDS MGMT. 2 728/4 D A = ACTION I = INFORMATION D = DISPATCH R = RETAIN N = No FURTHER ACTION CC: 00 AUG 4pm12 COMMENTS: FIXED LEARR EXEC SEC OFFICE HAS DISKETTE THE WHITE HOUSE WASHINGTON August 3, 2000 Dear Valdas: Thank you for your letter marking 60 years since the United States refused to recognize the brutal incorporation of Estonia, Latvia, and Lithuania into the USSR. Thankfully, the world has been transformed since those dark days. Even so, America's commitment on behalf of a free and undivided Europe remains unaltered. We will continue to support Lithuania's efforts to become fully integrated into the Euro-Atlantic community. Again, thank you for your kind words. Sincerely, Biu Crinton His Excellency Valdas Adamkus President of the Republic of Lithuania Vilnius THE WHITE HOUSE WASHINGTON August 3, 2000 Dear Valdas: Thank you for your letter marking 60 years since the United States refused to recognize the brutal incorporation of Estonia, Latvia, and Lithuania into the USSR. Thankfully, the world has been transformed since those dark days. Even so, America's commitment on behalf of a free and undivided Europe remains unaltered. We will continue to support Lithuania's efforts to become fully integrated into the Euro-Atlantic community. Again, thank you for your kind words. Sincerely, His Excellency Valdas Adamkus President of the Republic of Lithuania Vilnius NATIONAL SECURITY COUNCIL ID 0004664 REFERRAL DATE: 03 AUG 00 MEMORANDUM FOR: KENNEY, K STATE SECRETARIAT DOCUMENT DESCRIPTION: TO: ADAMKUS, VALDAS SOURCE: PRESIDENT DATE: 03 AUG 00 SUBJ: REPLY TO PRES OF LITHUANIA REQUIRED ACTION: FOR DISPATCH DUEDATE: 04 AUG 00 COMMENT: M JOHN W. FICKLIN NSC RECORDS MANAGEMENT OFFICE NATIONAL SECURITY COUNCIL LOG 0004664 DISTRIBUTION RECEIPT DATE 03 AUG 00 SUBJECT: REPLY TO PRES OF LITHUANIA DOCUMENT CLASSIFICATION: CONFIDENTIAL EXTERNAL DISTRIBUTION: DATE TIME SIGNATURE ADAMKUS, VALDAS PRINT LAST NAME: COPY: ORIGINAL DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-17-2013 2011-1038-F DATE, TIME, SIGN THE RECEIPT AND RETURN TO: NSC RECORDS MGNT. ROOM 379 OEOB PAGE 01 OF 01 PAGES TIME OF TRANSMISSION: TIME OF RECEIPT: WHITE HOUSE SITUATION ROOM PRECEDENCE CLASSIFICATION: RELEASER: IMMEDIATE CONFIDENTIAL DATE/TIME: MESSAGE #: FROM: NSC PH: 456-9425 ROOM: WWD SUBJECT: LTR TO PRESIDENT ADAMKUS PAGES: 2 PLEASE DELIVER TO: LOCATION DELIVER TO ROOM PHONE DOS Exec Sec SPECIAL DELIVERY INSTRUCTIONS/REMARKS: For cabling, Original to follow DECL ASSIRIED E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-17-2013 7-17- 2011-1038-F 4664 8-3-00 THE WHITE HOUSE '00 JUL 29 PM1:37 WASHINGTON July 29, 2000 ACTION MEMORANDUM FOR THE PRESIDENT FROM: SAMUEL BERGER for SUBJECT: Letter to Lithuanian President Adamkus Purpose Respond to letter from President Adamkus. Background President Adamkus wrote you on the occasion of the 60th anniversary of the Soviet occupation of the Baltic states, to thank the United States for its policy of non-recognition of the incorporation of Estonia, Latvia and Lithuania into the USSR. Your response tells the Lithuanians -- who remain skeptical of Russian intentions under Putin -- that the United States will continue to support Lithuanian efforts to become fully integrated into Euro-Atlantic institutions. RECOMMENDATION That you sign the letter to President Adamkus at Tab A. Attachments Tab A Letter to President Adamkus Tab B Incoming Correspondence CC: Vice President Chief of Staff 4664 NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20504 July 27, 2000 ACTION MEMORANDUM FOR SAMUEL R. BERGER THROUGH: ANTONY BLINKEN Ajt FROM: RICHARD NORLAND M SUBJECT: Letter to Lithuanian President Adamkus Attached for your signature at Tab I is your memorandum to the President forwarding a response to the Lithuanian President. The NSC received the incoming correspondence on July 18, 2000. Concurrence by: Andrew Weiss hb RECOMMENDATION That you sign the memorandum to the President at Tab I. Attachments Tab I Memorandum to the President Tab A Letter to President Adamkus Tab B Incoming Correspondence Jul-14-00 02:38pm From-EMBASSY OF LITHUANIA 2023280466 T-988 P.02/03 F-719 41064 President of the Republic of Lithuania Vilnius, July 14. 2000 Dear Mr. President, This Saturday we will commemorate a momentous day in the history of relations among the United States and Lithuania, Latvia, and Estonia. Sixty years ago President Roosevelt made a resolve to oppose the predatory activities of the Soviet Union against the Bal ic states. The Executive order to freeze the Baltic assets, issued on July 15. 1940, was I crucial decision which made it clear that the United States were to repudiate the act of the Baltic States' occupation. On July 23, the policy of non-recognition was elaborated in the statement of the acting U.S. Secretary of State Welles. Subsequent American leaders pursued this policy giving strength and hope to hundreds of thousand of Lithuanian people under oppression and in exile. Today Lithuania is free again, and this incontestable evidence of restored justice proves that the American policy of non-recognition was right and successful. On behalf of all the Lithu. nian people who had suffered from oppression, and that of our children who now can enjoy and foster freedom, human rights and democracy, I take this opportunity to thank the leadership and the people of America for the support that had been so vital to u. During the last decad our countries have advanced much in developing a fruitful partnership to the interest of our peoples. Lithuania and America have become more than just two friendly states, cooperating nations of the Euro-Atlantic family. The U.S.-Baltic Partnership Charter has materialized in the expanding network of bilateral relations, the growing volume of investments and the complete understanding achiev 11 in solving important issues to the security and stability of the Baltic region. Our artnership is reinforced by America's consistent and continued support for Lithuania is Euro-Atlantic integration. His Excellency William J. Clintor President United States of America Jul-14-00 02:38pm From-EMBASSY OF LITHUANIA 2023280466 T-988 P.03/03 F-719 17/01 g resident of the Republic of Lithuania -- 2 -- I am certain, Mr. Pre ident, that in future the United States Government will further promote the cause of ithuania's full reiurn 10 the Euro-Atlantic community. The historical experience hat we had passed through during the last sixty years gives a substantial hope to CC uplete the project of Europe whole and free already in the coming few years. Please accept the assurances of my highest consideration. Sincerely, Valopy Adamst Valdas Adamkus Jul-14-00 02:38pm From-EMBASSY OF LITHUANIA 2023280466 T-988 P.01/03 F-719 Rec'd NSC/EUR 7/14/00. please eater int system. LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. July 14, 2000 Nr. 1898 Dear Mr. Blinken: It is my great pleas se to enclose herewith a copy of the letter from H.E. Valdas Adamkus. President of the Republic of Lithuania to H.E. William J. Clinton. President of the United States. I would kindly request to forward the letter to its highest destination. Sincerely, Darius Degutis Charge 'Affaires a. i. Mr. Antony J. Blinken Special Assistant to the President National Security Council Old Executive Office Buile ing Washington, DC 20501 DD/ah 2622 16TH STREE i. N.W. WASHINGTON, D.C. 20009 202-234-5860 FAX 202-328-0466 NATIONAL SECURITY COUNCIL ID 0004664 REFERRAL DATE: 18 JUL 00 MEMORANDUM FOR: KENNEY, K STATE SECRETARIAT DOCUMENT DESCRIPTION: TO: PRESIDENT SOURCE: ADAMKUS, VALDAS DATE: 14 JUL 00 SUBJ: ANNIV OF FREEZE ON BALTIC ASSETS REQUIRED ACTION: FOR INFORMATION DUEDATE: COMMENT: >fff FOR JOHN W. FICKLIN NSC RECORDS MANAGEMENT OFFICE NATIONAL SECURITY COUNCIL LOG 0004664 DISTRIBUTION RECEIPT DATE 14 JUL 00 SUBJECT: ANNIV OF FREEZE ON BALTIC ASSETS DOCUMENT CLASSIFICATION: CONFIDENTIAL EXTERNAL DISTRIBUTION: DATE TIME SIGNATURE EXECUTIVE SECRETARIAT FOR THE EXECUTIVE SECRETARY ROOM 7224 PRINT LAST NAME: 2201 C STREET, NW WASHINGTON, DC 20520 COPY: 1 DEPARTMENT OF STATE DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-17-2013 2011- 1038-F DATE, TIME, SIGN THE RECEIPT AND RETURN TO: NSC RECORDS MGNT, ROOM 379 OEOB PAGE 01 OF 01 PAGES UNCLASSIFIED CONFIDENTIAL RECORD ID: 0004664 NSC/RMO PROFILE RECEIVED: 18 JUL 00 14 TO: PRESIDENT FROM: ADAMKUS, VALDAS DOC DATE: 14 JUL 00 SOURCE REF: KEYWORDS: LITHUANIA HS PERSONS: SUBJECT: ANNIV OF FREEZE ON BALTIC ASSETS ACTION: APPROPRIATE ACTION DUE DATE: 29 JUL 00 STATUS: S STAFF OFFICER: NORLAND LOGREF: FILES: PA NSCP: CODES: DOCUMENT DISTRIBUTION FOR ACTION FOR CONCURRENCE FOR INFO NORLAND BERGER BRADTKE RUDMAN STATE STEINBERG, J WEISS COMMENTS: DISPATCHED BY DATE BY HAND W/ATTCH OPENED BY: NSTSM CLOSED BY: DOC 1 OF 1 CONFIDENTIAL Unclassified LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. July 25, 2000 Dear Mr. Blinken: It is my great pleasure to enclose herewith a letter from H.E. Valdas Adamkus, President of the Republic of Lithuania to H.E. William J. Clinton, President of the United States. I would kindly request to forward the letter to its highest destination. Thank you in advance. WWD : Sincerely, add perchase/Polder to Habalandy Stasys Sakalauskas Ambassador This goes with package Mr. Antony J. Blinken 4664 of 7/27/00. Special Assistant to the President National Security Council Washington, DC 20530 (original letter) SS/ah 2622 16TH STREET, N.W. WASHINGTON, D.C. 20009 202-234-5860 FAX 202-328-0466 4664 THE WHITE HOUSE WASHINGTON ACTION MEMORANDUM FOR THE PRESIDENT FROM: SAMUEL BERGER SUBJECT: Letter to Lithuanian President Adamkus Purpose Respond to letter from President Adamkus. Background President Adamkus wrote you an the occasion of the 60th anniversary of the Soviet occupation of the Baltic states, to thank the United States for its policy of non-recognition of the incorporation of Estonia, Latvia and Lithuania into the USSR. Your response tells the Lithuanians -- who remain skeptical of Russian intentions under Putin -- that the United States will continue to support Lithuanian efforts to become fully integrated into Euro-Atlantic institutions. RECOMMENDATION President That you sign the letter to Adamkus at Tab A. Attachments Tab A Letter to President Adamkus Tab B Incoming Correspondence CC: Vice President Chief of Staff THE WHITE HOUSE WASHINGTON Dear Valdas: Thank you for your letter marking 60 years since the United States refused to recognize the brutal incorporation of Estonia, Latvia, and Lithuania into the USSR. Thankfully, the world has been transformed since those dark EVENSO, days. [But] America's commitment on behalf of a free and undivided Europe remains unaltered. We will continue to support Lithuania's efforts to become fully integrated into the Euro-Atlantic community. Again, thank you for your kind words Sincerely, His Excelllency Valdas Adamkus President of the Republic of Lithuania Vilnius Debbie Gale 736-4170 Norland, Richard B. (EUR) From: WHSR Sent: Thursday, August 03, 2000 7:02 PM To: Blinken, Antony J. (EUR); Cables; Ficklin, John W. (RECORDS); Millison, Cathy L. (EXSEC); Norland, Richard B. (EUR); Wasserman, Elaine P. (EXSEC) Subject: LETTER FROM PRESIDENT CLINTON TO HIS EXCELLENCY, VALDAS ADAMKUS, PRESIDENT OF REPUBLIC OF LITHUANIA ActionAddees: AMEMBASSY VILNIUS IMMEDIATE 1564 Classification: UNCLASSIFIED DateTime: 032254Z AUG 00 Distribution: SIT: Blinken NSC Ficklin Millison Norland Wasserman Identifier: M4569004 InfoAddees: IIII Line1: OAAUZYUW RUEHCAA8259 2162257-UUUU--RHEHAAX. Line2: ZNR UUUUU ZZH Line3: O 032254Z AUG 00 Line4: FM SECSTATE WASHDC Originator: SECSTATE WASHDC Precedence: IMMEDIATE Profiles: BLINKENA CABLES FICKLINJ MILLISOC NORLANDR WASSERME StationRoutingIndicator: RUEHC StationSerialNumber: 8259 TimeOfReceipt: 08/03/2000 19:00:47 ET UNCLAS STATE 148259 E.O. 12958: N/A TAGS: OPDC, LH SUBJECT: LETTER FROM PRESIDENT CLINTON TO HIS EXCELLENCY, VALDAS ADAMKUS, PRESIDENT OF REPUBLIC OF LITHUANIA 1. PLEASE DELIVER FOLLOWING MESSAGE FROM PRESIDENT CLINTON TO HIS EXCELLENCY, VALDAS ADAMKUS, PRESIDENT OF LITHUANIA. THE WHITE HOUSE DOES NOT PLAN TO RELEASE TEXT OF MESSAGE BUT HAS NO OBJECTION IF GOVERNMENT OF LITHUANIA WISHES TO DO SO. THE SIGNED ORIGINAL WILL FOLLOW VIA POUCH. 2. BEGIN TEXT: AUGUST 3, 2000 DEAR VALDAS: THANK YOU ONCE AGAIN FOR YOUR LETTER MARKING 60 YEARS SINCE THE UNITED STATES REFUSED TO RECOGNIZE THE BRUTAL INCORPORATION OF ESTONIA, LATVIA, AND LITHUANIA INTO THE USSR. THANKFULLY, THE WORLD HAS BEEN TRANSFORMED SINCE THOSE DARK DAYS. EVEN SO, AMERICA'S COMMITMENT ON BEHALF OF A FREE AND UNDIVIDED EUROPE REMAINS UNALTERED. WE WILL CONTINUE TO SUPPORT LITHUANIA'S EFFORTS TO BECOME FULLY INTEGRATED INTO THE EURO-ATLANTIC COMMUNITY. AGAIN, THANK YOU FOR YOUR KIND WORDS. 1 SINCERELY, BILL CLINTON /S/ END TEXT. ALBRIGHT 2 4664 NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20504 July 27, 2000 ACTION MEMORANDUM FOR SAMUEL R. BERGER THROUGH: ANTONY BLINKEN AJD FROM: RICHARD NORLAND M SUBJECT: Letter to Lithuanian President Adamkus Attached for your signature at Tab I is your memorandum to the President forwarding a response to the Lithuanian President. The NSC received the incoming correspondence on July 18, 2000. Concurrence by: Andrew Weiss h hb RECOMMENDATION That you sign the memorandum to the President at Tab I. Attachments Tab I Memorandum to the President Tab A Letter to President Adamkus Tab B Incoming Correspondence 4664 THE WHITE HOUSE WASHINGTON ACTION MEMORANDUM FOR THE PRESIDENT FROM: SAMUEL BERGER SUBJECT: Letter to Lithuanian President Adamkus Purpose Respond to letter from President Adamkus. Background President Adamkus wrote you on the occasion of the 60th anniversary of the Soviet occupation of the Baltic states, to thank the United States for its policy of non-recognition of the incorporation of Estonia, Latvia and Lithuania into the USSR. Your response tells the Lithuanians -- who remain skeptical of Russian intentions under Putin -- that the United States will continue to support Lithuanian efforts to become fully integrated into Euro-Atlantic institutions. RECOMMENDATION That you sign the letter to Adamkus at Tab A. Attachments Tab A Letter to President Adamkus Tab B Incoming Correspondence CC: Vice President Chief of Staff THE WHITE HOUSE WASHINGTON Dear Valdas: Thank you for your letter marking 60 years since the United States refused to recognize the brutal incorporation of Estonia, Latvia, and Lithuania into the USSR. Thankfully, the world has been transformed since those dark days. But America's commitment on behalf of a free and undivided Europe remains unaltered. We will continue to support Lithuania's efforts to become fully integrated into the Euro-Atlantic community. Again, thank you for your kind words. Sincerely, His Excelllency Valdas Adamkus President of the Republic of Lithuania Vilnius Jul-14-00 02:38pm From-EMBASSY OF LITHUANIA 2023280466 T-988 P.01/03 F-719 Rec'd NSC/EUR 7/14/00. please enter int system LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. July 14, 2000 Nr. 1898 Dear Mr. Blinken: It is my great pleas se to enclose herewith a copy of the letter from H.E. Valdas Adamkus. President of the Republic of Lithuania to H.E. William J. Clinton. President of the United States. I would kindly request to forward the letter to its highest destination. Sincerely, D.Deptai Darius Degutis Charge l'Affaires a. i. Mr. Antony J. Blinken Special Assistant to the President National Security Council Old Executive Office Buile ing Washington, DC 20501 DD/ah 2622 16TH STREET, N.W. WASHINGTON, D.C. 20009 202-234-5860 FAX 202-328-0466 Jul-14-00 02:38pm From-EMBASSY OF LITHUANIA 2023280466 T-988 P.02/03 F-719 41664 President of the Republic of Lithuania Vilnius, July 14. 2000 Dear Mr. President, This Saturday we will commemorate a momentous day in the history of relations among the United States and Lithuania, Latvia, and Estonia. Sixty years ago President Roosevelt made a resolve to oppose the predatory activities of the Soviet Union against the Bal ic states. The Executive order to freeze the Baltic assets, issued on July 15. 1940, was it crucial decision which made it clear that the United States were to repudiate the, act of the Baltic States' occupation. On July 23, the policy of non-recognition was elaborated in the statement of the acting U.S. Secretary of State Welles. Subsequent American leaders pursued this policy giving strength and hope to hundreds of thousand of Lithuanian people under oppression and in exile. Today Lithuania is free again, and this incontestable evidence of restored justice proves that the American policy of non-recognition was right and successful. On behalf of all the Lithuanian people who had suffered from oppression, and that of our children who now can enjoy and foster freedom, human rights and democracy, I take this opportunity to thank the leadership and the people of America for the support that had been so vital to Ut. During the last decad our countries have advanced much in developing a fruitful partnership to the interest of our peoples. Lithuania and America have become more than just two friendly states, cooperating nations of the Euro-Atlantic family. The U.S.-Baltic Partnership Charter has materialized in the expanding network of bilateral relations, the growing volume of investments and the complete understanding achiev 1d in solving important issues to the security and stability of the Baltic region. Our partnership is reinforced by America's consistent and continued support for Lithuania 's Euro-Atlantic integration. His Excellency William J. Clinton President United States of America Jul-14-00 02:38pm From-EMBASSY OF LITHUANIA 2023280466 T-988 P.03/03 F-719 Diresident of the Republic of Lithuania -- 2 -- I am certain, Mr. Pre ident, that in future the United States Government will further promote the cause of ithuania's full return 10 the Euro-Atlantic community. The historical experience :hat we had passed through during the last sixty years gives a substantial hope to cc mplete the project of Europe whole and free already in the coming few years. Please accept the assurances of my highest consideration. Sincerely, Valopy Adamstr. Valdas Adamkus CONFIDENTIAL RECORD ID: 0004412 NSC/RMO PROFILE RECEIVED: 06 JUL 00 10 TO: KUBILIUS, ANDRIUS FROM: PRESIDENT DOC DATE: 13 JUL 00 SOURCE REF: KEYWORDS: LITHUANIA HUMAN RIGHTS PERSONS: SUBJECT: LTR TO PM KUBILIUS OF LITHUANIA RE SUPPORT FOR INTL WOMEN CONF ACTION: FOR DISPATCH DUE DATE: 12 JUL 00 STATUS: C STAFF OFFICER: NORLAND LOGREF: FILES: PA NSCP: CODES: DOCUMENT DISTRIBUTION FOR ACTION FOR CONCURRENCE FOR INFO STATE NORLAND NSC CHRON COMMENTS: DISPATCHED BY DATE BY HAND W/ATTCH OPENED BY: NSSWL CLOSED BY: NSGP DOC 3 OF 3 DECLASSIFIED CONFIDENTIAL E.O. 13526 White House Guidelines, September 11, 2006 ВуКВИ NARA, Date 7-17-2013 2011-1038-F CONFIDENTIAL RECORD ID: 0004412 ACTION DATA SUMMARY REPORT DOC ACTION OFFICER CAO ASSIGNED ACTION REQUIRED 001 BERGER Z 00070614 FWD TO PRESIDENT FOR SIGNATURE 002 PRESIDENT Z 00071110 FOR SIGNATURE 003 X 00071705 PRESIDENT SGD LTR 003 STATE X 00071705 FOR DISPATCH DISPATCH DATA SUMMARY REPORT DOC DATE DISPATCH FOR ACTION DISPATCH FOR INFO 002 000711 VICE PRESIDENT 002 000711 WH CHIEF OF STAFF 003 000713 KUBILIUS, ANDRIUS 003 000713 STATE CONF IDENTIAL NATIONAL SECURITY COUNCIL LOG 0004412 DISTRIBUTION RECEIPT DATE 13 JUL 00 SUBJECT: LTR TO PM KUBILIUS OF LITHUANIA RE SUPPORT FOR INTL WOMEN CONF DOCUMENT CLASSIFICATION: CONFIDENTIAL EXTERNAL DISTRIBUTION: DATE TIME SIGNATURE EXECUTIVE SECRETARIAT FOR THE EXECUTIVE SECRETARY ROOM 7224 PRINT LAST NAME: 2201 C STREET, NW DEPARTMENT OF STATE COPY: 1 DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By KBHNARA, Date 7-17-2013 2011- 1038-F DATE, TIME, SIGN THE RECEIPT AND RETURN TO: NSC RECORDS MGNT. ROOM 379 OEOB PAGE 01 OF 01 PAGES NATIONAL SECURITY COUNCIL ID 0004412 REFERRAL DATE: 17 JUL 00 MEMORANDUM FOR: KENNEY, K STATE SECRETARIAT DOCUMENT DESCRIPTION: TO: KUBILIUS, ANDRIUS SOURCE: PRESIDENT DATE: 13 JUL 00 SUBJ: LTR TO PM KUBILIUS OF LITHUANIA RE SUPPORT FOR INTL WOMEN CONF REQUIRED ACTION: FOR DISPATCH DUEDATE: 18 JUL 00 COMMENT: M.Pute L. FOR JOHN W. FICKLIN NSC RECORDS MANAGEMENT OFFICE NATIONAL SECURITY COUNCIL THE WHITE HOUSE PROOFED BY: LOG # 4412 URGENT NOT PROOFED: SYSTEM RRS INT ARS BYPASSED WW DESK: DOCLOG sun A/O co SEQUENCE TO INITIAL/DATE DISPOSITION GIRE JACOBSON 1 1)7/14 POWELL BASH BRADTKE RUDMAN STEINBERG BERGER SITUATION ROOM WEST WING DESK 2 sur 714 * RECORDS MGMT. 3 D A = ACTION I = INFORMATION D = DISPATCH R = RETAIN N = No FURTHER ACTION and Wes 2:64 Date 7/13/00 2 COMMENTS: EXEC SEC OFFICE HAS DISKETTE NATIONAL SECURITY COUNCIL THE WHITE HOUSE LOG # 4412 PROOFED BY: IRGENT NOT PROOFED: SYSTEM PRS INT ARS BYPASSED WW DESK: DOCLOG Refro 7 A/O 7PW SEQUENCE TO INITIAL/DATE DISPOSITION GIRE 1 ACOBSON D7/6 POWELL BASH a M BRADTKE RUDMAN 3 Q STEINBERG BERGER 4 SITUATION ROOM WEST WING DESK < of 7/11 X Phes RECORDS MGMT. A = ACTION I = INFORMATION D = DISPATCH R = RETAIN N = No FURTHER ACTION CC: iG ## 5pm 205 COMMENTS: LTR to LiThuanian PM Kabilius RC Vilnius couf. on Wimin - Democracy EXEC SEC OFFICE HAS DISKETTE 100 THE WHITE HOUSE WASHINGTON July 13, 2000 Dear Mr. Prime Minister: Thank you for informing me of your plans regarding the international women's conference to be held in Vilnius next June. The United States was pleased to cosponsor last fall's Reykjavik Conference on Women and Democracy, and we warmly welcome your government's willingness to host this important follow-up conference. My Administration is committed to enhancing the participation of women in the political and economic life of the Baltic Sea region. This is one of the priorities we have established under our Northern Europe Initiative, aimed at enhancing democracy, stability, and prosperity among all the countries of the region. I am pleased to see the wide variety of programs that have been implemented since the Reykjavik conference. As you may know, a U.S. representative took part in the first meeting of the international preparatory committee on May 22. We will continue to participate in the committee and look forward to working with you to ensure the Conference's success. Sincerely, Biu Crinton His Excellency Andrius Kubilius Prime Minister of the Republic of Lithuania Vilnius 4412 THE WHITE HOUSE WASHINGTON July 11, 2000 00 JUL 11AM10:41 ACTION MEMORANDUM FOR THE PRESIDENT FROM: SAMUEL BERGER pt SUBJECT: Letter to Prime Minister Kubilius of Lithuania Purpose Respond to a letter from Prime Minister Kubilius. Background Prime Minister Kubilius wrote to request U.S. support for an international women's conference to be held in Vilnius in June 2001. Your response (Tab A) confirms our support for this initiative, drawing on prior U.S. involvement in such activities, including the First Lady's attendance at "Vital Voices" events in Reykjavik and elsewhere. RECOMMENDATION That you sign the letter at Tab A. Attachments Tab A Letter to Prime Minister Kubilius Tab B Incoming Correspondence CC: Vice President Chief of Staff 00006610 Translation from Lithuanian Vilnius, 8 March 2000 Dear Mr. President, I have the honour to inform you that on 15-17 June 2001 Vilnius will host an international women conference conceived as a follow up to the Reykjavik Conference on Women and Democracy at the Dawn of the New Millennium which took place in October 1999. Representatives of the public institutions and non-governmental organisations of the Baltic and Nordic states, Russia and USA are to be present at the conference. We also intend to invite Polish and German delegations. The conference will comprehensively discuss key issues pertinent to the full voiced participation of women in the democratic processes. It will highlight on the joint projects which the states of the Baltic Sea region and the USA initiated at the Reykjavik conference. After reviewing the progress made, the conference intends to initiate new projects, to seek by concerted efforts advanced and effective solutions to the problems. I believe that with a view to better prepare the conference it would be expedient to set up an international committee which would include the representatives delegated by the governments interested in participating at the conference. The committee would be in charge of co-ordinating the preparatory work for Vilnius conference and reviewing the projects already under way after the Reykjavik conference and providing recommendations on their future implementation. The first meeting of the international committee could take place in April- May of the current year in Vilnius. I hope you will agree that issues raised at the conference are vitally important to the international community and people of your country, and may I therefore count on your active support and the participation of the representatives nominated by the USA administration to work on the preparation of Vilnius conference. Availing myself of this opportunity I would like to extend, Mr. President, the assurance of my highest considerations. Sincerely yours, /s/ Andrius Kubilius Prime Minister The President The White House Washington, D.C. 20500 LIETUVOS RESPUBLIKOS MINISTRAS PIRMININKAS Vilnius, 2000 m. kovo 8 d. Gerbiamasis pone Prezidente, Turiu garbès Jus informuoti, kad 2001 m. birželio 15-17 dienomis Lietuvoje rengiama tarptautiné motery konferencija. Ši konferencija tai 1999 m. spalio men. Reikjavike vykusios konferencijos "Moterys ir demokratija naujojo tükstantmečio pradžioje" tęsinys. Renginyje dalyvaus Baltijos valstybiu, Siaures šaliu, Rusijos bei JAV vyriausybiniu institucijy bei nevyriausybiniu organizaciju atstovai. Taip pat ketiname pakviesti Lenkijos bei Vokietijos delegacijas. Konferencijoje bus visapusiškai aptariami aktualus motery pilnateisio dalyvavimo demokratiniuose procesuose klausimai, apžvelgiami bendri Baltijos jūros regiono šaliy ir JAV projektai, inicijuoti Reikjaviko konferencijoje. Apibendrinus padarytą pažangą, bus siekiama inicijuoti naujus projektus, bendrai ieškoma efektyvesniu problemy sprendimo budy. Manau, jog būty tikslinga konferencijos parengimui sukurti tarptautinj komitetą, i kuri visu dalyvavimu konferencijoje suinteresuoty valstybiu vyriausybès deleguoty atstovus koordinaciniam parengiamajam darbui. Sio komiteto tikslas būty apžvelgti vykdomus projektus, inicijuotus Reikjaviko konferencijoje, bei teikti rekomendacijas del ju tolimesnio igyvendinimo. Komitetas taip pat aktyviai dalyvaus, parengiant Vilniuje vyksiančios konferencijos tematiką. Tikimes, kad pirmasis tarptautinio komiteto susitikimas galèty ivykti š.m. balandžio gegužes menesiais Vilniuje. Manydamas, kad konferencijoje nagrinëjamos problemos yra aktualios tarptautinei ir Jūsy salies visuomenei, tikiuosi aktyvios Jūsy paramos bei JAV vyriausybès paskirty pareigūny dalyvavimo konferencijos paruošiamajame darbe. Naudodamasis proga, gerbiamasis pone Prezidente, reiškiu nuoširdžiausią pagarbą. Ambilies Andrius Kubilius Prezidentui, Baltieji rūmai, Vašingtonas, D.C.20500 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. 000066T0 March 30, 2000 Dear President: It is my great pleasure to forward you a letter from Mr. Andrius Kubilius, Prime Minister of the Republic of Lithuania. Sincerely, Hahalawsh Stasys Sakalauskas Ambassador The Honorable William J. Clinton President of the United States The White House Washington, DC 20500 2622 16TH STREET, N.W. WASHINGTON, D.C. 20009 TEL. (202) 234-5860 FAX: (202)328-0466 4412 NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20504 July 6, 2000 ACTION MEMORANDUM FOR SAMUEL R. BERGER FROM: RICHARD NORLAND, ACTING they SUBJECT: Presidential Letter to Lithuanian Prime Minister Kubilius Attached at Tab I is your memorandum to the President forwarding a proposed letter to Prime Minister Andrius Kubilius regarding the Vilnius Conference on Women and Democracy in June 2001. The incoming correspondence was received on April 21 and tasked to the State Department for response. Concurrence by: Wendy Patten to RECOMMENDATION That you sign the memorandum to the President at Tab I. Attachments Tab I Memorandum to the President Tab A Letter to Prime Minister Kubilius Tab B Incoming Correspondence Norland, Richard B. (EUR) From: Norland, Richard B. (EUR) Sent: Wednesday, July 05, 2000 5:51 PM To: Jacobson, Tracey A. (ADMIN); @EUROPE - European Affairs; @RECORDS & ACCESS MGMT Cc: @EXECSEC - Executive Secretary Subject: RE: Crosshatch on Vilnius women's conference [UNCLASSIFIED] for RECORDS: could you please send us another copy of a letter to POTUS from Lithuanian PM Kubilius that was dated March 8, 2000 and was subsequently tasked to State for response? Subject was Vilnius Women's Conference. many thanks. Original Message From: Jacobson, Tracey A. (ADMIN) Sent: Wednesday, July 05, 2000 5:46 PM To: Norland, Richard B. (EUR); @EUROPE - European Affairs Cc: @EXECSEC - Executive Secretary Subject: RE: Crosshatch on Vilnius women's conference [UNCLASSIFIED] It's very unusual to send a cable -- we usually do it in cases where there is some urgency. Clearly not here. We do NOT do it because it is more convenient. Please prepare this as a letter. Records can probably help you get a copy of the incoming. Exec Sec can't clear off on presidential correspondence, which this is, without seeing the incoming to which it responds. Thanks TJ Original Message From: Norland, Richard B. (EUR) Sent: Wednesday, July 05, 2000 5:34 PM To: Jacobson, Tracey A. (ADMIN); @EUROPE - European Affairs Cc: @EXECSEC - Executive Secretary Subject: RE: Crosshatch on Vilnius women's conference [UNCLASSIFIED] I don't have the incoming anymore -- it was tasked to State for response, and they chose to make it a cable. Should ExecSec task State with turning it into a letter? In any case, though, wouldn't it go out by cable anyway (seems like most letters do once they've been signed by POTUS)? In this case the incoming is so old (March 8, as I recall) and the subject so non-controversial, that it appears State chose to treat this more like a national day message than an issue worthy of direct POTUS attention. My own view is we should probably try to move it sooner rather than later, in its current form -- what do you think? Original Message From: Jacobson, Tracey A. (ADMIN) Sent: Wednesday, July 05, 2000 5:23 PM To: @EUROPE - European Affairs Cc: @EXECSEC - Executive Secretary Subject: Crosshatch on Vilnius women's conference [UNCLASSIFIED] Dick -- I don't see why this should be a cable rather than a letter. Please redo as Presidential Correspondence, including the incoming at a Tab, unless there is some pressing reason to do this as a cable (if there is, please let us know what it is)> Thanks TJ 1 2775 S/S 200006610 United States Department of State Washington, D.C. 20520 April 21, 2000 Memorandum for: Mr. Robert A. Bradtke Executive Secretary National Security Council Staff The White House Subject: Alerting NSCS on Presidential Correspondence Enclosed is the original of a letter to President Clinton from Lithuanian Prime Minister Andrius Kubilius. which is transmitted for your information. This correspondence was received in the 4/27/00 Records Management Division of the Executive Secretariat on . A copy has been assigned to the appropriate bureau for action. Chief, S.Mire S/S-RMD 462 Division Records Management Executive Secretariat (202) 647-0053 prndoc prescor2 pm4 (8/2/99) 4412 UNCLASSIFIED RECORD ID: 0002775 NSC/RMO PROFILE RECEIVED: 21 APR 00 17 TO: PRESIDENT FROM: KUBILIUS, ANDRIUS DOC DATE: 08 MAR 00 SOURCE REF: 00006610 KEYWORDS: LITHUANIA HS HUMAN RIGHTS AP PERSONS: SUBJECT: NOTIFICATION RE INTL WOMEN CONFERENCE ON JUN 15 - - 17 ACTION: NO FURTHER ACTION REQUIRED DUE DATE: 03 MAY 00 STATUS: C STAFF OFFICER: NORLAND LOGREF: FILES: PA NSCP: CODES: DOCUMENT DISTRIBUTION FOR ACTION FOR CONCURRENCE FOR INFO COMMENTS: DISPATCHED BY DATE BY HAND W/ATTCH OPENED BY: NSTCG CLOSED BY: NSSWL DOC 1 OF 1 UNCLASSIFIED UNCLASSIFIED RECORD ID: 0002775 ACTION DATA SUMMARY REPORT DOC ACTION OFFICER CAO ASSIGNED ACTION REQUIRED 001 NORLAND Z 00042117 PREPARE MEMO FOR BERGER 001 X 00051815 NO FURTHER ACTION REQUIRED UNCLASSIFIED UNCLASSIFIED RECORD ID: 0002775 NSC/RMO PROFILE RECEIVED: 21 APR 00 17 TO: PRESIDENT FROM: KUBILIUS, ANDRIUS DOC DATE: 08 MAR 00 SOURCE REF: 00006610 KEYWORDS: LITHUANIA HS HUMAN RIGHTS AP PERSONS: SUBJECT: NOTIFICATION RE INTL WOMEN CONFERENCE ON JUN 15 - 17 ACTION: PREPARE MEMO FOR BERGER DUE DATE: 03 MAY 00 STATUS: S STAFF OFFICER: NORLAND LOGREF: FILES: PA NSCP: CODES: DOCUMENT DISTRIBUTION FOR ACTION FOR CONCURRENCE FOR INFO NORLAND NAPLAN BAKER BERGER BRADTKE HILLIARD RUDMAN SCHWARTZ STEINBERG COMMENTS: NFAR DISPATCHED BY DATE BY HAND W/ATTCH OPENED BY: NSTCG CLOSED BY: DOC 1 OF 1 UNCLASSIFIED Jul-14-00 12:27pm From-EMBASSY OF LITHUANIA 2023280466 T-951 P.01 F-679 EMBASSY OF LITHUANIA FACSIMILE TRANSMITTAL SHEET TO: FROM: Mr. Richard Norland Kestas Jankauskas COMPANY: DATE: NSC, European Directorate July 14, 2000 FAX NUMBER: TOTAL NO. OF PAGES INCLUDING COVER. 202-456-9150 3 PHONE NUMBER: SENDER'S REFERENCE NUMBER: 202-456-9151 RIC YOUR REFERENCE NUMBER: Seimas' Appeal URGENT FOR REVIEW PLEASE COMMENT PLEASE REPLY PLEASE RECYCLE NOTES/COMMENTS: Enclosed please find the Appeal of the Parliament of Lithuania to the President of the United States of America, the Co gress of the United States of America and all US Citizens adopted on July 11, 2000 concerning the U.S. non-recognition policy. 2622 16TH STREET, N.W. WASHINGTON, DC 20009 TEL: (202) 234-5800, EXT.18. FAX: (202) 328-0466, E-MAIL: [email protected] Jul-14-00 12:27pm From-EMBASSY OF LITHUANIA 2023280466 T-951 P.02 F-679 LIETUVOS RESPUBLIKOS SEIMAS SEIMAS OF THE REPUBLIC OF LITHUANIA APPEAL TO THE PRESIDENT OF THE UNITED STATES OF AMERICA, THE CONGRESS OF THE UNITED STATES OF AMERICA AND ALL US CITIZENS 11 July 2000 Vilnius Marking the sad events of 1940 when, following the 14 Junc ultimatum of the Soviet Union, the USSR 8th and 11th armies (totalling 15 divisions) crossed the Lithuanian State Border on 15 June and remained in Lithuania for 50 years, the Seimas of the Republic of Lithuania recalls: throughout the occupation, the United States of America maintained that the acquisition of Baltic territory by force was not permissible under international law and refused to recogni e Soviet sovereignty over these lands; on 1.5 July 1940. President Franklin D. Rooscvelt issued the Executive Order which froze Baltic assets in the United States to prevent them from falling into Soviet hands; on 23 July 1940. Acting Secretary of State Sumner Welles issued the first public statement of Unit States policy of nonrecognition of the Soviet takeover of the Baltic countries, condeming that act of annexation. The Seimes of the Republic of Lithuania, recalling that during the Soviet occupation all US Presidents, the Congress and the Government consistently supported the policy of non ecognition of the Soviet takeover of the Baltic States, allowing the diplomatic representatives of Lithuania and other Baltic States to continue to represent Jul-14-00 12:27pm From-EMBASSY OF LITHUANIA 2023280466 T-951 P.03 F-679 their nations and a: the same time keeping up the spirit of the Baltic States and inspiring hope to restore in dependence, that as carly as in 1959, Congress dosignated the third week in July as "Captive Nations Week", and in 1981, Congross passed the decision declaring 14 June as "Baltic Freedom Day", while throughout the struggle of the Baltic countries for the restoration of their independence in 1990 and 1991. Congress passed a number of resolutions that underscored its continued support for the nonrecognition policy and for Baltic self-determination, appeals to all the citizens of the United States of America and expressos gratitude to them for the fact that during the past 60 years the Presidents and the Congress elected by them defended democracy and human rights, that all this time they - the highest officials of the powerful and strong State - have also been friends of our country, who, despite the big and aggressive neighbour of Lithuania, have supported Lithuania's aspiration to restore its independence and now support its aspiration to ensure its future by integrating into the EU and NATO. The Seimas of the Republic: of Lithuania expresses gratitude to all those who supported us during the hard and tragic time for our State, and extends best wishes for overall success to every American family, each US citizen. FIRST DEPUTY CHAIRMAN OF ARVYDAS VIDZIUNAS THE SEIMAS OF THE REPUBLIC OF LITHUANIA 2 Jul-13-00 03:04pm From-EMBASSY OF LITHUANIA 2023280466 T-905 P.01 F-610 LIETUVOS RESPUBLIKOS SEIMAS SEIMAS OF THE REPUBLIC OF LITHUANIA APPEAL TO THE PRESIDENT OF THE UNITED STATES OF AMERICA, THE CONGRESS OF THE UNITED STATES OF AMERICA AND ALL US CITIZENS 11 July 2000 Vilnius Marking the sad events of 1940 when, following the 14 Junc ultimatum of the Soviet Union, the USSR 8th and 11th armies (totalling 15 divisions) crossed the Lithuanian State border on 15 June and remained in Lithuania for 50 years, the Seimas of the Republic of ithuania recalls: throughout the occupation, the United States of America maintained that the acquisition of Balti: territory by force was not permissible under international law and refused to recognise Soviet sovereignty over these lands; on 15 July 1940. President Franklin D. Roosevelt issued the Executive Order which froze Baltic assets in the United States to prevent them from falling into Soviet hands; on 23 July 1940, Acting Secretary of State Summer Welles issued the first public statement of Unite I States policy of nonrecognition of the Soviet takeover of the Baltic countrics, condemn that act of annexation. The Selmay of the Republic of Lithuania, recalling that during the Soviet occupation all US Presidents, the Congress and the Government consistently supported the policy of nonrecognition of the Soviet takeover of the Baltic States, allowing the diplomatic represer tatives of Lithuania and other Baltic States to continue to represent Jul-13-00 03:04pm From-EMBASSY OF LITHUANIA 2023280466 T-905 P.02 F-610 their nations and a: the same time keeping up the spirit of the Baltic States and inspiring hope to restore independence, that as carly as in 1959, Congress designated the third week in July as "Captive Nations Week", and in 1981, Congress passed the decision declaring 14 June as "Baltic Freedom Day", while throughout the struggle of the Baltic countries for the restoration of their independence in 1990 and 1991. Congress passed a number of resolut ons that underscored its continued support for the nonrecognition policy and for Baltic self-determination, appeals to all the citizens of the United States of America and expressos gratitude to them for the fact that during the past 60 years the Presidents and the Congress elected by them defended democracy and human rights, that all this time they - the highest officials of the powerful and strong State - have also been friends of our country, who, desp ite the big and aggressive neighbour of Lithuania, have supported Lithuania's aspirat. on to restore its independence and now support its aspiration to ensure its future by integrating into the EU and NATO. The Seimas of the Republic of Lithuania expresses gratitude to all those who supported us durin I the hard and tragic time for our State, and extends best wishes for overall success to every American family, each US citizen. FIRST DEPUTY CHAIRMAN OF ARVYDAS VIDZIUNAS THE SEIMAS OF THE REPUBLIC OF LITHUANIA 2 06/28/00 WED 15:58 FAX 202 736 4170 EUR/NB NSC DAN FRIED 001 2023280486 OPTIONAL FORM 99 (7-90) T-867 P.02/02 F-170 FAX TRANSMITTAL # of pages 1 To From DICK NORLAND DAMIAN LEADER Dept./Agency Phone # Fax # Fax # EMBASSY OF THE REPUBLIC OF LITHUANIA NSN 7540-01-317-7368 5099-101 WASHINGTON, D.C. GENERAL SERVICES ADMINISTRATION No. 32 - 00 The Embassy of the Republic of Lithuania presents its compliments to the Department of State of the USA and has the honor to convey the gratitude and appreciation of the Government of the Republic of Lithuania of the efforts by the US Coast Guard and its 11 District/Pacific Area in carrying out since June 21, 2000 the search of the missing Lithuanian M/V Linkuva. The fate of M/V Linkuva and its crew is a matter of the major concern for the people of Lithuania and the Government of the country, therefore the Embassy of the Republic of Lithuania would like to extend herewith the request of the Government of Lithuania to renew and to further continue the search of M/V Linkuva until the concrete evidence of the fate of the crew is obtained. The Embassy of the Republic of Lithuania avails itself of this opportunity to renew to the Department of State of the USA the assurances of its highest consideration. Washington. D.C., June 28, 2000geukos AMBAGADA LIETUVOS # usch extended Dearl TO THE DEPARTMENT OF STATE by a few days. Of the United States of America Washington, D.C. Blinken, Antony J. From: Hamilton, Daniel S Sent: Wednesday, June 28, 2000 5:08 PM To: Leader, Damian R.; Graze, Deborah E; Blinken, Antony J. Subject: RE: FOR DICK NORLAND - Lithuanian Sunk Ship Damian: this is a real time crisis issue, so can we be tracking the CG in real time, and getting them back out there right away. Please call me with next update, and if it's not right answer, we need to escalate pressure to get some action by their time tomorrow morning. Original Message From: Leader, Damian R. Sent: Wednesday, June 28, 2000 3:49 PM To: Graze, Deborah E; Blinken, Antony J. Cc: Hamilton, Daniel S Subject: RE: FOR DICK NORLAND - Lithuanian Sunk Ship Dick- Dan agrees with you that the USCG should extend the search on the margins a couple more days. I have contacted the USCG (Cmdr. Karl Schultz at 267-2100) and told them that is the wish of the State Dept and the NSC, and used your name as well. Cmdr. Schultz is now working on this up his line but I do not know for certain what the USCG decision will be. Stasys has told me he is going to fax a dip note to me on this as well, which I will share with you when I get it. Damian Original Message From: Graze, Deborah E Sent: Wednesday, June 28, 2000 2:12 PM To: Blinken, Antony J. Cc: Leader, Damian R. Subject: FW:FOR DICK NORLAND - Lithuanian Sunk Ship Importance: High Dick: this is what Damian found out from the Coast Guard (had trouble reaching them until just prior to Stasys' meeting with Dan Hamilton). We'll let you know how Dan handles this and if any follow-up. Sounds sad, but also like the USCG really did their best. Original Message From: Leader, Damian R. Sent: Wednesday, June 28, 2000 1:56 PM To: Hamilton, Daniel S Cc: Graze, Deborah E Subject: Lithuanian Sunk Ship Importance: High Dan- Sakalauskas will raise with you a GOL request to resume the search for a Lithuanian ship which disappeared in a storm last week in the Pacific. The CG says that they searched for eight days (June 21-27) before suspending the seach at nightfall yesterday. They found a debris fields, two empty life boats, and inflatable raft, and other pieces, but no survivors or bodies. The CG used a lot of resources, and believes that the possibility of finding survivors is very small. The CG will get me some approved language so we can reply to this request on paper later. They said the only time searches are continued beyond this point is if there is a high level political push to do so. Damian 1 Norland, Richard B. (EUR) From: Norland, Richard B. (EUR) Sent: Thursday, June 29, 2000 5:11 PM To: @APNSA Cc: @EUROPE - European Affairs; @RUSSIA - Russia/Ukraine Subject: For SRB-Reffe Meeting: Lithuania [UNCLASSIFIED] TO: Sandy Berger THROUGH: Tony Blinken FROM: Dick Norland concurrences: Andrew Weiss, Timothy Almon Paige Reffe wants to meet with you in his capacity as a lobbyist for the Lithuanian government. The main issue on his agenda is trying to secure a Presidential stop in Vilnius. He will also raise efforts to pin down U.S. support for Lithuanian membership in NATO during the remainder of the Admistration. He recently discussed these issues with Leon Fuerth. The Lithuanians, starting with President Adamkus, want to thank President Clinton for his commitment to Baltic freedom, and view a stop in Vilnius as a way to acknowledge his support. They would probably try to stage an event at which all three Baltic presidents could express their appreciation to the President. A visit has greater urgency in view of heightened concern in the Baltic states about recent Russian behavior, which has ranged from rhetorical accusations of neo-fascism to subtle political and economic pressure. The Lithuanians view a bilateral meeting with the President on the margins of the Millennium Summit or some similar event as a "fallback." You should confirm that the President appreciates President Adamkus' oft-repeated invitations to meet and that we hope there will be a chance to meet later this year (see attached POTUS letter). Reffe was a key organizer of the May 18-19 Vilnius Conference that produced the "big-bang" statement in which nine NATO aspirants pledged to work together to advance their candidacies simultaneously. Reffe will appreciate your gesture in meeting with Baltic- American groups to discuss NATO and other issues on June 14, and understands the Administration's Open Door policy: (i) focus on the practical work of the aspirant country Membership Action Plans; (ii) pursue full integration of the first three new members; (iii) but avoid committing next administration to specific countries or timetables. He may nevertheless urge senior Administration figures to become more engaged with Baltic-American groups on these matters through the rest of the term. Reffe may echo President Adamkus' request that we facilitate commercial cooperation between Russian energy companies and the Williams Company, a U.S. firm that is playing a major role in modernizing Lithuania's oil industry. Despite difficulties attributable in part to Russian negotiating tactics and in part to Williams' inexperience in the international arena, Williams has made progress in its negotiations with Lukoil and recently signed a protocol aimed at securing long-term crude oil supply contracts needed to obtain financing for plant modernization. Our Embassy in Moscow is facilitating contacts between the parties as they work toward negotiated contracts this summer. We understand the the Slovaks plan to hire Reffe to direct their NATO entry effort. Reffe may mention this to you as well. 1 Points to Make President appreciated President Adamkus' letter before he met with Putin -- Lithuanian concerns very much on his mind during Moscow talks, as POTUS told Adamkus in his June 26 letter. President also appreciates Adamkus' invitation, and we are looking to see if there is any way schedule could accommodate a meeting later this year. Congratulate you on successful Vilnius Conference in May -- from our perspective, the more the aspirants can work together, the better. Lithuania has done a good job of working on its Membership Action Plan and doing its homework for NATO membership. As I told Baltic-American groups on June 14, the President supports the process of making Lithuania, Latvia and Estonia the strongest possible candidates for NATO membership, even though the final decision will not be made on his watch. Want you and Lithuanians to know we appreciate increased efforts to prosecute war crimes, Nazi as well as Soviet. Good move to have Lithuanian Prosecutor General meet here this week with OSI Eli Rosenbaum. Trials help educate population on what happened. [if raised] Williams Energy Investment As President wrote Adamkus, we will continue to faciliate commercial contacts between the Lithuanian oil industry and the Russian government as the parties work toward negotiated contracts for long-term crude oil deliveries this summer. [if raised] FSB arrest of Lithuanian Citizen We don't comment on alleged intelligence matters -- although this case seems very peculiar in that the person has already been released without charge. More broadly, we're troubled by pattern of assertive behavior by Russian security services -- they're clearly flexing their muscles, but still not clear how much blessing their actions have from Russian leadership. We need to keep close eye on this -- important not to allow climate of intimidation, encourage Russians to ensure respect for rule of law, human rights. 2 THE WHITE HOUSE WASHINGTON June 26, 2000 Dear Mr. President: Thank you for your letter regarding my visit to Moscow. I. understand that Lithuania's oil industry and Lukoil are making progress in their negotiations on long-term crude oil supply contracts. We will continue to facilitate commercial contacts between the Lithuanian oil industry and the Russian government as the parties work toward negotiated contracts this summer. Your concerns were very much in mind during my discussions with President Putin. I am convinced that, based on our talks, President Putin understands clearly the importance the United States attaches to ensuring stable and cooperative relations between Russia and its neighbors, including in the Baltic region. This issue, along with respect for democratic principles and the success of economic reforms, will have a direct impact on Russia's international integration. To underscore our support for Lithuania, Latvia, and Estonia, I asked Deputy Secretary of State Strobe Talbott to represent the United States at the meeting of the U.S. -Baltic Partnership Commission in Tallinn. I welcome the reaffirmation at that meeting of our common vision of a Europe whole and free, and of our goal to jointly create conditions to complete the integration of Lithuania, Latvia, and Estonia into European and transatlantic institutions. Again, thank you for your letter. I hope we will have a chance to meet later this year. Sincerely, Biu Crinton His Excellency Valdas Adamkus President of the Republic of Lithuania Vilnius From: Embassy of Lithuania To: Richard B. Norland Date: 2000.06.26 Time: 15:23:52 Page 1 of 1 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. PRESS RELEASE Contact: Rolandas Kacinskas June 25, 2000 Phone: (202) 234-5860 X 21 GENERAL PROSECUTOR OF LITHUANIA COMES TO WASHINGTON TO DISCUSS LAW ENFORCEMENT ISSUES WASHINGTON, DC - On June 27, General Prosecutor of Lithuania Kazys Pednycia will start a four-day visit to Washington, DC. The goal of this visit is to strengthen links between law- enforcement institutions of both countries, to share experience in organized crime and corruption investigation, to discuss bilateral cooperation as well as investigation of war and genocide cases. General Prosecutor is scheduled to meet the Attorney General of Justice Department Janet Reno, Deputy Assistant Secretary of State Daniel S.Hamilton, Director of Office of Special Investigation Eli M.Rosenbaum, FBI Deputy Director, and other high officials. While in Washington, General Prosecutor K.Pednycia will be accompanied by the Ambassador at Large Alfonsas Eidintas, Chairman of the Steering group for the co-ordination of the National Holocaust Education Program. 2622 16TH STREET, N.W. - WASHINGTON, D.C. 20009 - PHONE (202)234-5860 FAX (202)328-0466