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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 [6] 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. email White House Situation Room to Steven Andreasen et al. re: Lithuanian 04/06/2000 P1/b(1) KBH 11/20/2023 Concerns (5 pages) 002. email White House Situation Room to Antony Blinken and Richard Norland 03/31/2000 P1/b(1) KBH 11/20/2023 re: Scenesetter (3 pages) 003. email White House Situation Room to Richard Norland re: Williams Lukoil 03/22/2000 P1/b(1) KBH 11/20/2023 Negotiations (3 pages) 004. report re: Russia's Lukoil (4 pages) 03/17/2000 P1/b(1) Partiel release - KBH 11/20/2023 005 memo Russ Trowbridge to The Files re: Update on Williams Project (4 03/16/2000 P1/b(1) KBH 11/20/2023 pages). 006 email White House Situation Room to Steven Black et al. re: Lukoil (4 02/01/2000 P1/b(1) KBH 11/20/2023 pages) 007. email White House Situation Room to Steven Black et al. re: Russia's 01/28/2000 P1/b(1) KBM 11/20/2023 Lukoil (3 pages) 008 email Richard Norland to Antony Blinken re: Lithuania (1 page) 01/07/2000 P1/b(1) KBH 11/20/2023 009. email White House Situation Room to James Babbit et al. re: Holocaust War 01/07/2000 P1/b(1) KBH 11/20/2023 Criminals (3 pages) 010 email White House Situation Room to Antony Blinken et al. re: 01/07/2000 P1/b(1) KBH 11/20/2023 Representative Lantos (2 pages) 011 email White House Situation Room to Antony Blinken et al. re: 01/07/2000 P1/b(1) KBH 11/20/2023 Representative Lantos; duplicate of 009 (2 pages) COLLECTION: Clinton Presidential Records National Security Council European Affairs (Richard Norland) OA/Box Number: 2630 FOLDER TITLE: Lithuania [6] 2011-1038-F kh1049 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 géological or geophysical information 2201(3). concerning wells [(b)(9) of the FOIA] RR. Document will be reviewed upon request. Withdrawal/Redaction Sheet Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 012. letter DOB (Partial) Personal (Partial) (1 page) 01/06/2000 P6/b(6) COLLECTION: Clinton Presidential Records National Security Council European Affairs (Richard Norland) OA/Box Number: 2630 FOLDER TITLE: Lithuania [6] 2011-1038-F kh1049 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. Congressional Research Service Library of Congress Washington, D.C. 20540 CRS Memorandum April 5, 2000 TO : Hon. Richard Durbin Attention: Sue Hardesty FROM : Steven Woehrel Specialist in European Affairs Foreign Affairs, Defense and Trade Division SUBJECT : U.S. Non-Recognition of the Incorporation of the Baltic States into the Soviet Union As the Soviet Union occupied the Baltic states in June 1940 and moved to incorporate them into the USSR in July 1940, the U.S. government made clear that it would not recognize the legitimacy of the Soviet takeover. On July 15, 1940, President Roosevelt issued Executive Order 8484, which froze Baltic assets in the United States to prevent their falling into Soviet hands. The order also interned all Baltic vessels in U.S. ports. On July 23, Acting Secretary of State Sumner Welles issued the first public statement of the non- recognition policy. In the statement, Welles condemned the "devious processes whereunder the political independence and territorial integrity of the three Baltic republics - Lithuania, Latvia and Estonia - were to be deliberately annihilated by one of their more powerful neighbors, have been drawing rapidly to their conclusion The people of the United States are opposed to predatory activities, no matter whether they are carried on by the use of force or by the threat of use of force. They are likewise opposed to any form of intervention on the part of one State, however powerful, in the domestic concerns of any other sovereign state, however weak The United States will continue to stand by these principles, because of the conviction of the American people that unless the doctrine in which these principles are inherent once again governs the relations between nations, the rule of reason, of justice and of law - in other words the basis on modern civilization itself - cannot be preserved."¹ Despite strong Soviet pressure, the United States maintained the non-recognition policy from 1940 until the Baltic states fully restored their independence in 1991. The diplomatic representatives of the three states continued to operate in Washington and elsewhere in the United States. Each year, the Secretary of State issued national day greetings to the Baltic legations, and State Department representatives attended the legation's national 1 The Welles statement was an application of the Stimson Doctrine, which had been put forward by Secretary of State Henry Stimson in 1932 after Japan seized Manchuria from China and set up a puppet state there. The Doctrine held that the United States would not recognize any "situation, treaty, or agreement" brought about by the use of force or the threat of force. CRS-2 day functions. The State Department maintained a separate Baltic Affairs Desk within the Department. In 1983, Radio Free Europe established a separate Baltic Service Division. U.S. government maps of the Soviet Union contained a disclaimer noting the non-recognition policy. During this period, the United States took steps to help the Baltic legations to remain viable. In 1950, the Treasury Department revised its interpretation of the July 1940 Executive Order in order to permit frozen Baltic assets to be invested, and the proceeds used to support the activities of the legations. In 1980, the United States took several steps to maintain the viability of the legations, which were threatened by dwindling resources and the advancing age of the Baltic diplomats accredited in 1940. U.S. officials supported an effort to pool the resources of the three legations (most of which were Latvia's) in order to ensure continued support for all of them. The United States agreed to permit the charge d'affaires of the Baltic states to appoint their successors, as long as they were citizens of those states. Congress strongly supported the non-recognition policy. In April 1953, the House established a select committee to investigate the occupation of the Baltic states and their incorporation into the Soviet Union. The select committee heard testimony from 325 witnesses over two years and produced two reports on the issue. In 1959, Congress passed the Captive Nations week resolution (P.L. 86-90). The joint resolution condemned Soviet "subjugation of the national independence" of several nations and states, including the Baltic states and authorized the President to issue a proclamation each year designating the third week in July as "Captive Nations Week" until all captive nations have been freed. From 1966 until the restoration of Baltic independence, Congress passed joint resolutions condemning the Soviet occupation of the Baltic states, reaffirming support for the non- recognition policy, and authorizing the President to issue a proclamation declaring June 14 as Baltic Freedom Day. Congress also passed resolutions honoring the national day of Lithuania, and reiterating support for the non-recognition policy, as well as for the self- determination of the Baltic peoples. During the negotiations leading up to the conclusion of the Final Act of the Conference on Security and Cooperation in Europe in 1975, Members of Congress expressed concerns about the impact on the non-recognition policy of the Final Act, which accepted the inviolability of borders in Europe. President Ford stated publicly that the non-recognition policy was not affected by the Final Act, because it explicitly stated that no acquisition of territory by force would be recognized as legal. Moreover, Ford noted that, far from supporting the Soviet occupation of the Baltic States, the Final Act left open the possibility of a peaceful adjustment of borders. In December 1975, the House passed a resolution stating the sense of the House that the Final Act did not alter the non-recognition policy. The Senate passed a similar resolution in May 1976. During the struggle of the Baltic states for the restoration of their independence in 1990-1991, Congress underscored its continued support for the non-recognition policy and for self-determination. In 1990, the House and Senate passed separate resolutions (S. Con. Res. 108 and H. Con. Res. 289) calling for the United States to establish diplomatic relations with the new pro-independence government of Lithuania. The FY 1990 foreign operations appropriations act stressed U.S. support for the non-recognition policy and for the self- determination of Lithuania, Latvia and Estonia. On October 10, 1990, the Senate passed S. Res. 334, which called on the President to ensure that the German reunification treaty did not CRS-3 diminish or compromise the non-recognition policy. In January 1991, the Senate passed S. Res. 14 and S. Con. Res. 6, condemning Soviet violence in the Baltic states and asked the President to consider economic sanction against Moscow. Both resolutions noted the non- recognition policy. S. Con. Res. 6 called on the President to explore increased diplomatic ties with the Baltic states. On March 21, 1991, after the Baltic states had passed referendums calling for independence, the Senate passed S. Res. 81, which urged the President to open offices in the Baltic states to establish diplomatic and other contacts with them. The resolution noted that recognition of the current pro-independence Baltic governments would be in line with the non-recognition of the Soviet incorporation of the Baltic states. Congress hailed the achievement of full independence of the Baltic states in August 1991 and the restoration of full U.S. diplomatic ties with the governments there. Congress urged the Administration to establish fully-staffed embassies there as soon as possible.² 2 Sources for this memo include Robert Vitas, "The United States and Lithuania: The Stimson Doctrine of Nonrecognition, Praeger, 1990, 170p.; WilliamJ. H. Hough, III, "The Annexation of the Baltic States and Its Effects on the Development of Law Prohibiting Forcible Seizure of Territory," New York Law School Journal of International and Comparative Law, vol. 6, no. 2, (Winter 1985). Pp. 301-533; Lawrence Juda, "United States Nonrecognition of the Soviet Union's Annexation of the Baltic States: Politics and Law," Journal of Baltic Studies, vol. VI, no. 4, (Winter 1975), pp. 272- 290; and the texts of legislation approved by Congress. Norland, Richard B. (EUR) From: WHSR Sent: Thursday, April 06, 2000 10:06 AM To: Andreasen, Steven P. (DEFENSE); Binnendijk, Johannes A. (Hans) (DEFENSE); Black, Steven K. (VP); Blinken, Antony J. (EUR); Brzezinski, Mark F. (RUE); Cables; Crawford, Bernard T. (EUR/INTERN); Cullom, Philip H. (DEFENSE); Davidson, Leslie K. (VP); Elkind, Jonathan H. (RUE); Hinckley, Steedman (VP); Kass, Nicholas S. (EUR); Massey, Stephen M. (RUE/INTERN); Medish, Mark C. (RUE); Munter, Cameron P. (EUR); Norland, Richard B. (EUR); Peterman, David (Brian) (DEFENSE); Pimentel, Betsy J. (DEFENSE); Tedstrom, John E. (RUE); vonLipsey, Roderick K. (SEE); Weiss, Andrew S. (RUE); Witkowsky, Anne A. (DEFENSE); Yee, Hoyt B. (EUR) Subject: LITHUANIAN CONCERNS ABOUT NATO, ESDI, AND RUSSIA ARE THE DOMINANT THEMES OF EUR/DAS ANDRUSYSZYN'S VISIT (U) CLASSIFIED BY AMBASSADOR KEITH SMITH FOR REASONS 1.5 B ActionAddees: RUEHC/SECSTATE WASHDC IMMEDIATE 1590 RUEHNO/USMISSION USNATO 0883 Classification: CONFIDENTIAL Date Time: 061244Z APR 00 Distribution: SIT: ANDREASEN BINNENDIJK BLACK BLINKEN BRZEZINSKI NSC CRAWFORD CULLOM DAVIDSON ELKIND HINCKLEY KASS MASSEY MEDISH MUNTER NORLAND PETERMAN PIMENTEL TEDSTROM VONLIPSEY WEISS WITKOWSKY YEE Identifier: M4382174 InfoAddees: RUEHZL/EUROPEAN POLITICAL COLLECTIVE Line1: OAACZYUW RUEHVLA0900 0971244-CCCC--RHEHAAX Line2: ZNY CCCCC ZZH Line3: O 061244Z APR 00 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: IMMEDIATE 647-8908. Damien. Profiles: ANDREASS BINNENDH BLACKS BLINKENA BRZEZINM CABLES CRAWFORB CULLOMP DAVIDSOL ELKINDJ HINCKLES KASSN MASSEYS MEDISHM MUNTERC NORLANDR PETERMAD PIMENTEB TEDSTROJ VONLIPSR WEISSA WITKOWSA DECLASSIFIED YEEH PER E.O. 13526 StationRoutingIndicator: RUEHVL StationSerialNumber: 0900 2016-0384-M(1.41) (1.61) TimeOfReceipt: 04/06/2000 09:07:17 ET KBH 6/23/2023 CONFIDENTIAL SECTION 01 OF 03 VILNIUS 000900 EUR FOR DAS ANDRUSYSZYN E.O. 12958: DECL: 4/6/2010 TAGS: PREL, NATO, ECON, LH, RS SUBJECT: LITHUANIAN CONCERNS ABOUT NATO, ESDI, AND RUSSIA 1 ARE THE DOMINANT THEMES OF EUR/DAS ANDRUSYSZYN'S VISIT (U) CLASSIFIED BY AMBASSADOR KEITH SMITH FOR REASONS 1.5 B AND D. SUMMARY 1. (C) DURING BILATERAL MEETINGS IN VILNIUS EUR/DAS WALTER ANDRUSYSZYN MET WITH THE PRESIDENT, FOREIGN MINISTER, FINANCE MINISTER, DEFENSE OFFICIALS AND PARLIAMENTARIANS. COMMON THEMES EMERGED IN ALL THE MEETINGS, NAMELY WORRIES ABOUT NATO, ESDI AND RUSSIA. LITHUANIAN OFFICIALS WELCOMED THE VISIT OF ANDRUSYSZYN TO OUTLINE THEIR NATO ACCESSION AND DEFENSE MODERNIZATION PLANS (REPORTED SEPTEL) AS WELL TO OUTLINE THEIR FOREIGN POLICY TOWARDS RUSSIA, BELARUS AND THE REGION. DAS ANDRUSYSZYN ALSO MET WITH OFFICIALS FROM WILLIAMS COMPANY, WHO DISCUSSED CRUDE OIL SUPPLIES AND NEGOTATIONS WITH RUSSIA. END SUMMARY. PRESIDENCY: COMMITMENT TO NATO; CONCERN ABOUT RUSSIA, ESDI 2. (C) PRESIDENT ADAMKUS STRESSED LITHUANIA'S COMMITMENT TO NATO MEMBERSHIP AND TO GOOD RELATIONS WITH ITS NEIGBORS PARTICULARLY RUSSIA. THE PRESIDENT UNDERSCORED THAT NATO MEMBERSHIP IS THE NATION'S TOP FOREIGN POLICY PRIORITY AND THAT LITHUANIA WOULD CONTINUE TO HAVE A STRONG, CLEAR PRO- NATO STANCE. LITHUANIAN PARTICIPATION IN PKO'S IN BOSNIA AND KOSOVO IS A DEMONSTRATION OF COUNTRY'S WILL TO JOIN AND CONTRIBUTE TO NATO, SAID THE PRESIDENT. HE WARNED DAS ANDRUSYSZYN THAT THE U.S. SHOULD NOT BE OVERLY CONCERNED ABOUT SOME OF THE STATEMENTS IT WILL HEAR OVER THE NEXT SIX MONTHS LEADING UP TO PARLIAMENTARY ELECTIONS (I.E. ABOUT NATO, ABOUT DEFENCE SPENDING). THE PRESIDENT'S ADVICE WAS TO DISREGARD ABOUT 50& OF WHAT WE WILL HEAR. 3. (C) ADAMKUS EMPHASIZED LITHUANIA'S SUCCESSFUL POLICY OF MAINTAINING GOOD RELATIONS WITH RUSSIA. HE HIGHLIGHTED THE GOL'S WORK WITH KALININGRAD, AN INVITATION TO RUSSIA TO WORK MORE CLOSELY WITH THE COUNCIL OF BALTIC SEA STATES (CBSS), AND EXPANDING CULTURAL EXCHANGES. THE PRESIDENT ALSO UNDERSCORED THAT THE FACT THAT LITHUANIA HAS NO RUSSIAN MINORITY PROBLEM, UNLIKE THE OTHER BALTIC STATES, ALLOWING LITHUANIA TO ENJOY BETTER RELATIONS WITH RUSSIA. NONETHELESS, THE PRESIDENT NOTED THAT THE GOL STILL HAS A COUPLE OF IRRITATING PROBLEMS WITH RUSSIA, NAMELY 1) DIFFICULTLY IN OBTAINING A COMMITMENT FOR A LONG-TERM OIL SUPPLY FOR MAZEIKIU NAFTA, PART-OWNED AND MANAGED BY THE WILLIAMS CO., AND 2) FOOT-DRAGGING BY THE RUSSIAN PARLIAMENT IN RATIFYING THEIR BORDER TREATY. ADAMKUS ADDED THAT HIS VISIT TO MOSCOW, POSTPONED IN DECEMBER DUE TO YELTSIN'S POOR HEALTH AND THEN BECAUSE OF THE RUSSIAN ELECTIONS HAS NOT BEEN RESCHEDULED YET. RUSSIAN PRESIDENT PUTIN IS VERY DIFFICULT FOR THEM TO READ, SAID ADAMKUS. FINALLY, THE PRESIDENT STRESSED THAT LITHUANIA BELIEVES THAT AMERICA'S PRESENCE IN EUROPE IS CRUCIAL; HE REJECTED THE NOTION OF THE EU BUILDING UP A SEPARATE MILITARY CAPACITY IN COMPETITION WITH NATO. FOREIGN MIN`4\BFoxHAT EU MEMBERSHIP MIGHT BECOME A SUBSTITUTE FOR NATO MEMBERSHIP. THE FM STARTED OUT BY SAYING THAT PUTIN WAS A MYSTERIOUS PERSON STILL AND THAT HE WAS MORE SUCCESSFUL IN THE PRESIDENTIAL ELECTIONS THAN THEY WOULD HAVE WISHED. AFTER ALL, SAID SAUDARGAS, PUTIN MANAGED TO BE ELECTED SAYING NOTHING ABOUT ANYTHING. THE FM NOTED THAT THE RUSSIANS STILL PUSH THE IDEA THAT FORMER SOVIET COUNTRIES CANNOT BE ACCEPTED INTO NATO, BUT THAT THE GOL BELIEVES THE DIFFERENCE BETWEEN POLAND AND LITHUANIA (IN GEOSTRATEGIC TERMS) IS PURELY ARTIFICIAL. FOR THAT REASON, 2 SAUDARGAS ASSERTED, IT IS ESPECIALLY IMPORTANT TO INCLUDE AT LEAST ONE BALTIC STATE IN THE NEXT ROUND OF NATO ENLARGEMENT SOON, IN ORDER TO MAKE THE BREAK AND PROVE THAT IT IS POSSIBLE. THE FM ALSO ASSURED ANDRUSYSZYN THAT GOL COMMITMENT TO NATO MEMBERSHIP HAS BEEN A WELL-ESTABLISHED PRINCIPLE OF LITHUANIAN POLICY FOR 10 YEARS AND WILL NOT CHANGE NO MATTER WHO IS ELECTED NEXT FALL. 5. (C) ON EU AND ESDI, THE FM SAID THAT THERE SEEMS TO BE A NEW EMPHASIS ON THE EU AS A SUBSTITUTE FOR NATO. SAUDARGAS SAID IT WAS DIFFICULT TO KNOW THE SOURCE -- INDIVIDUAL COUNTRIES SUCH AS THE UK, FRANCE, AND GERMANY ARE ALWAYS VERY POSITIVE WHEN TALKING TO THE GOL ABOUT NATO AND EU MEMBERSHIP -- BUT THAT THE GOL IS GETTING THE MESSAGE THAT EU MEMBERSHIP OFFERS SOME SORT OF REGIONAL SECURITY. SAUDARGAS SAID THAT HE HAD ASKED THE EU'S SOLANA DIRECTLY - - WHAT IS OUR (LITHUANIA'S) ROLE (IN ESDI)? THE GOL DOES NOT WANT TO CHOOSE BETWEEN NATO AND THE EU, BELIEVING CONFIDENTIAL SECTION 02 OF 03 VILNIUS 000900 EUR FOR DAS ANDRUSYSZYN E.O. 12958: DECL: 4/6/2010 TAGS: PREL, NATO, ECON, LH, RS SUBJECT: LITHUANIAN CONCERNS ABOUT NATO, ESDI, AND RUSSIA ARE THE DOMINANT THEMES OF EUR/DAS ANDRUSYSZYN'S VISIT THAT IS A FALSE CHOICE, THE FM SAID. SAUDARGAS MENTIONED THAT HE WOULD BE IN NEW YORK ON APRIL 24 FOR THE NON-PROLIFERATION TREATY TALKS. 6. (e) ON WILLIAMS, THE FM SAID THAT IS WAS DEPLORABLE HOW THE ISSUE HAD BEEN MANIPULATED BY POLITICIANS, BUT THAT IT IS IMPORTANT TO REMEMBER THAT THE COUNTRY'S ECONOMIC STABILITY DEPENDS ON THE NEGOTIATIONS FOR A LONG-TERM OIL SUPPLY CONTRACT WITH LUKOIL/MOSCOW. HE NOTED THAT THE WILLIAMS CO. STILL NEEDS TO DO MUCH MORE TO IMPROVE ITS PUBLIC IMAGE. MFA MEETINGS: THE GOL'S RELATIONS WITH KALININGRAD 7. (C) DAS ANDRUSZYN ROUNTABLE DISCUSSION AT THE LITHUANIAN MFA TOUCHED ON NATO INTEGRATION, HOLOCAUST ISSUES AND WAR CRIMINALS, AND LITHUANIA'S RELATIONS WITH ITS NEIGHBORS, PARTICULARLY KALININGRAD. THE DISCUSSION INCLUDED THE CHIEF OF THE SECOND (BILATERAL) DEPARTMENT A. TAURANTUS, TOGETHER WITH THE DIVISION CHIEFS FOR THE AMERICAS, NATO INTEGRATION AND CIS DIVISIONS. 8. (C) NATO INTEGRATION CHIEF RYTIS PALAUSKAS COMMENTED THAT THE GOL IS DOING MORE NOW TO WIN OVER THE BACKING OF EUROPEAN NATO MEMBERS. THE GOL IS FOCUSING ON WHAT THEY VIEWED AS SEVERAL KEY COUNTRIES (INCLUDING THE UK AND GERMANY) AND WOULD EXPAND THAT EFFORT TO OTHERS IN 2001. PALAUSKAS MENTIONED THE UPCOMING NATO CONFERENCE IN MAY IN VILNIUS AND EXPRESSED THEIR HOPE THAT DAS ANDRUSYSZYN WOULD BE ABLE TO ATTEND. NINE ASPIRANT COUNTRIES FOREIGN MINISTERS HAVE CONFIRMED. THE THREE NEW NATO MEMBERS' FM'S ARE ALSO EXPECTED TO ATTEND. 9. (c) CIS DIVISION CHIEF IGNATAVICIUS COMMENTED ON THE SPECIAL RELATIONSHIP LITHUANIA HAS WITH KALININGRAD AND PROGRAMS UNDERWAY, BILATERALLY AND WITH THE HELP OF THE USG, FOR COOPERATION AND DEVELOPMENT. EVEN THOUGH RUSSIAN PRESIDENTIAL ELECTIONS ARE OVER, LITHUANIA STILL IS WATCHING CLOSELY REGIONAL ELECTIONS FOR KALININGRAD'S GOVERNOR AND DUMA THIS YEAR. IGNATAVICIUS SAID THAT THOSE OFFICIALS ARE AT LEAST AS IMPORTANT AS THOSE IN MOSCOW FOR 3 LITHUANIAN'S BILATERAL RELATIONSHIP. HE NOTED THAT KALININGRAD IS AND WILL FOR THE FORESEEABLE FUTURE BE TIED TO MOSCOW. IGNATAVICIUS ADDED, HOWEVER, THAT WITH DETERIORATING SOCIO-ECONOMIC CONDITIONS AND KALININGRAD'S SPECIAL STATUS AS A FUTURE ENCLAVE SURROUNDED BY THE EU, THIS MAY CHANGE. THE YOUNGER GENERATION OF KALININGRAD'ERS SEEM MORE ORIENTED TO THE WEST. AS AN EXAMPLE STATISTICS SHOW THAT TWO THIRDS OF THEM HAVE NEVER EVEN BEEN TO RUSSIA PROPER, PREFERRING TO TRAVEL AND WORK IN POLAND AND EUROPE. SEIMAS MEMBERS WORRIED ABOUT NMD, RUSSIA, BELARUS 10. (C) DURING A VERY FRIENDLY HOUR DISCUSSION, COMMITTEE MEMBERS EMPHASIZED THEIR STRONG SUPPORT FOR NATO MEMBERSHIP AND THE MAP PROCESS, AND NOTED THAT LITHUANIA TRIES TO BE VERY ACTIVE IN AS MANY PFP PROGRAMS AS POSSIBLE. SEVERAL MEMBERS EXPRESSED THEIR MISGIVINGS ABOUT THE NEW RUSSIAN PRESIDENT AND AGREED THAT RUSSIA IS GOING TO BE TOUGHER ON ALL THE BALTIC STATES IN THE COMING MONTHS. THE COMMITTEE CHAIRMAN KATKUS QUESTIONED WHETHER MISSILE DEFENSE ISSUES WILL COMPLICATE NATO ENLARGEMENT AND IF THE BALTS WOULD BE SACRIFICED IN A DEAL WITH RUSSIA ON NMD. AS IN EVERY OTHER MEETING WITH GOL OFFICIALS, THE MPS EXPRESSED CONCERN ABOUT ESDI AND EU INVOLVEMENT IN EUROPEAN SECURITY. THE LITHUANIANS SEE NATO AS THE ONLY POSSIBLE GUARANTOR OF EUROPEAN SECURITY AND WANT THE U.S. TO STAY FULLY ENGAGED. MORE THAN ONE MP STRESSED THAT A RUSSIAN-BELARUSAN MILITARY UNION IS A THREAT TO ITS NEIGHBORS. ONE NOTED THAT RUSSIA HAS SIMPLY MOVED ITS BORDER TO THE WEST AS A RESPONSE TO NATO ENLARGMENT. ANOTHER MP PLEADED FOR CONTINUED U.S. ATTENTION TO BELARUS AND FUNDING FOR PROGRAMS WHICH SUPPORT DEMOCRACY IN BELARUS. DINNER WITH GOL OFFICIALS 11. (C) AT A DINNER WITH GOL OFFICIALS FROM THE FINANCE, DEFENSE, AND FOREIGN MINISTRIES AND THE SEIMAS DAS INFORMALLY DISCUSSED THE LITHUANIAN PARLIAMENTARY ELECTIONS, THE STRUGGLING LITHUANIAN ECONOMY, AND NATO MEBERSHIP. THE GENERAL CONSENSUS AMONG THE LITHUANIANS WAS THAT THE RESULTS OF THE MARCH MUNICIPAL ELECTIONS, IN WHICH THE RULING CONSERVATIVE PARTY FINISHED THIRD, REFLECTED A MOVE TOWARD POPULISM BY THE ELECTORATE. PARTIES EXPLOITING THIS POPULIST SENTIMENT, ESPECIALLY STRONG IN THE RURAL AREAS, CAPITALIZED ON THE GENERAL DISSATISFACTION RESULTING FROM CONFIDENTIALSECTION 03 OF 03 VILNIUS 000900 EUR FOR DAS ANDRUSYSZYN E.O. 12958: DECL: 4/6/2010 TAGS: PREL, NATO, ECON, LH, RS SUBJECT: LITHUANIAN CONCERNS ABOUT NATO, ESDI, AND RUSSIA ARE THE DOMINANT THEMES OF EUR/DAS ANDRUSYSZYN'S VISIT THE 1999 ECONOMIC CRISIS. ON THE ECONOMY, MINISTER OF FINANCE DUDENAS NOTED THAT THE PRIMARY REASON FOR THE CRISIS WAS THE EFFECT OF THE RUSSIAN CRISIS. PREVIOUS GOVERNMENTS HAD NOT CORRECTLY EVALUATED THE IMPACT THE RUSSIAN CRISIS WOULD HAVE ON THE LITHUANIAN ECONOMY, WHICH WAS HEAVILY DEPENDENT ON TRADE WITH RUSSIA, AND FAILED TO PREPARE FOR IT. DUDENAS NOTED THAT THE AUSTERITY PROGRAMS OF THE KUBILIUS GOVERNMENT WERE WORKING, AND THAT WHILE THERE WAS NO ECONOMIC REVIVAL YET, THE ECONOMY WAS POSITIONED TO TAKE OFF. HOWEVER, IT WILL COME TOO LATE TO STOP VOTERS FROM EXPRESSING THEIR STRONG DISSATISFACTION. BREAKFAST WITH WILLIAMS 4 12. (C) THE DAS HAD A VERY PRODUCTIVE MEETING WITH WILLIAMS INTERNATIONAL, DURING WHICH HE DISCUSSED THE CRUDE SUPPLY NEGOTIATIONS, FINANCING, AND ISSUES. WILLIAMS REPORTED THAT CRUDE SUPPLY NEGOTIATIONS WERE GOING SLOWLY, AND THAT LUKOIL WAS STALLING UNTIL AFTER THE FALL PARLIAMENTARY ELECTIONS BROUGHT A NEW GOVERNMENT WILLING TO GIVE LUKOIL AN EQUAL EQUITY AND MANAGEMENT STAKE IN THE REFINERY IN RETURN FOR A CRUDE OIL AGREEMENT. WILLIAMS STATED THAT NEGOTIATIONS WITH YUKOS FOR A CRUDE SUPPLY DEAL TRANSFERRING A 10& STAKE IN THE REFINERY WERE GOING WELL, BUT THAT LUKOIL'S POSITION AS RUSSIAN COUNTRY COORDINATOR THREATENED EVEN THIS SUPPLY. WILLIAMS ALSO NOTED THAT THE CURRENT IMPASSE ON FINANCING FOR THE REFINERY RENOVATION GAVE LUKOIL ADDITIONAL LEVERAGE OVER THE REFINERY. THE FINANCING IS ESSENTIAL FOR THE PROFITABILITY OF THE DEAL, BUT EBRD HAS INFORMALLY STATED THAT IT WILL NOT SUPPORT THE DEAL WITHOUT A LONG-TERM CRUDE SUPPLY AGREEMENT. LUKOIL KNOWS THIS, AND THUS BELIEVES THAT IT CAN FORCE WILLIAMS TO ACCEPT EQUAL EQUITY AND MANAGEMENT AS A CONDITION FOR A SUPPLY DEAL THAT WILL UNLOCK THE FINANCING. WILLIAMS REQUESTED USG INTERVENTION WITH THE IFIS AS A MEANS TO DE- LINK THE FINANCING FROM THE CRUDE SUPPLY DEAL. WILLIAMS ALSO RAISED PROBLEMS WITH THE GOL, SUCH AS SLOW ISSUANCE OF ENVIRONMENTAL PERMITS AND TITLE TO THE REFINERY LAND. THE DAS URGED WILLIAMS TO WORK THROUGH THESE ISSUES QUICKLY, AND SUGGESTED THAT WILLIAMS AND THE GOL WORK CLOSELY TO SOLVE THE SUPPLY AND FINANCING PROBLEMS. SMITH 5 Norland, Richard B. (EUR) From: WHSR Sent: Friday, March 31, 2000 11:25 AM To: Blinken, Antony J. (EUR); Cables; Norland, Richard B. (EUR) Subject: SCENESETTER FOR U/S LARSON VISIT TO LITHUANIA ActionAddees: RUEHC/SECSTATE WASHDC PRIORITY 1560 Classification: UNCLASSIFIED Date Time: 311507Z MAR 00 Distribution: SIT: Blinken NSC Norland Identifier: M4372794 InfoAddees: RUEHTL/AMEMBASSY TALLINN 5211 RUEHRA/AMEMBASSY RIGA 1476 RUEHWR/AMEMBASSY WARSAW 2869 RUEHSM/AMEMBASSY STOCKHOLM 1459 RUCNNEI/NORTHERN EUROPEAN INITIATIVE COLLECTIVE Line1: PAAUZYUW RUEHVLA0847 0911507-UUUU--RHEHAAX. Line2: ZNR UUUUU ZZH Line3: P 311507Z MAR 00 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: PRIORITY Profiles: BLINKENA CABLES NORLANDR StationRoutingIndicator: RUEHVL StationSerialNumber: 0847 TimeOfReceipt: 03/31/2000 11:26:27 ET UNCLAS SECTION 01 OF 02 VILNIUS 000847 STATE FOR EB WARSAW FOR PHILLIPS STOCKHOLM FOR PILMANIS E.O. 12958: N/A TAGS: ECON PREL OTRA LH SUBJECT: SCENESETTER FOR U/S LARSON VISIT TO LITHUANIA 1. SUMMARY: YOUR VISIT TO LITHUANIA COMES AT A KEY TIME, AS LITHUANIA SLOWLY BEGINS ITS RECOVERY FROM AN ECONOMIC CRISIS AND A YEAR OF POLITICAL TURMOIL. YOUR MESSAGE THROUGHOUT YOUR VISIT SHOULD BE TO CONGRATULATE THE KUBILIUS GOVERNMENT FOR ITS COMMITMENT TO ECONOMIC REFORM AND FINANCIAL AUSTERITY, AND ENCOURAGE IT TO CONTINUE ITS REFORM PROGRAM IN THE RUN-UP TO THE FALL PARLIAMENTARY ELECTIONS. THIS IS ESPECIALLY IMPORTANT SINCE KUBILIUS' CONSERVATIVE PARTY FINISHED A DISTANT THIRD IN THE RECENT MUNICIPAL ELECTIONS, AND IS UNDER PRESSURE TO ADOPT POPULIST MEASURES TO GET VOTES. OTHER IMPORTANT THEMES YOU SHOULD STRESS INCLUDE SUPPORT FOR LITHUANIA'S EARLY MEMBERSHIP IN NATO, EU, AND WTO; SUPPORT FOR THE WILLIAMS OIL DEAL AND LITHUANIA'S EFFORTS TO RESIST RUSSIAN OIL BLACKMAIL; AND ENCOURAGEMENT FOR INCREASED LITHUANIAN EFFORTS TO CONFRONT HOLOCAUST-RELATED ISSUES. END SUMMARY. 2. YOUR VISIT TO LITHUANIA WILL BE HIGHLIGHTED BY YOUR CO-CHAIRMANSHIP OF THE ECONOMIC BILATERAL WORKING GROUP (EBWG) MEETING, WHICH WILL FOCUS ON KEY MULTILATERAL, REGIONAL, AND BILATERAL ISSUES OF INTEREST TO THE UNITED STATES AND LITHUANIA. THE LITHUANIAN DELEGATION WILL BE LED BY VICE MINISTER OF FOREIGN AFFAIRS RIMKUNAS, WHO ALSO SERVES AS LITHUANIA'S WTO NEGOTIATOR. AN EXPERIENCED NEGOTIATOR, YOU CAN EXPECT RIMKUNAS TO ATTEMPT TO GATHER DEFINED COMMITMENTS FROM THE U.S. 1 DELEGATION ON KEY ISSUES SUCH AS WTO ACCESSION, DECOMMISSIONING FINANCING FOR IGNALINA NUCLEAR POWER PLANT (INPP) UNIT 1, AND ON REGIONAL ENERGY ISSUES. THE LITHUANIANS CONSIDER THE EBWG A KEY BILATERAL FORUM, AND HAVE SPENT CONSIDERABLE TIME PREPARING FOR THE TALKS. RIMKUNAS WOULD LIKE TO LEAVE THE TABLE WITH SOME REAL DELIVERABLES, AND YOU CAN EXPECT HIM TO MAKE A STRONG PITCH ON THE ABOVE ISSUES. 3. RIMKUNAS WILL PRESS FOR INCREASED FLEXIBILITY IN THE U.S. WTO ACCESSION POSITION, PARTICULARLY REGARDING AGRICULTURAL ISSUES. THE GOL BELIEVES THAT IT IS UNLIKELY ANY POTENTIAL CENTER/LEFT GOVERNMENT THAT COMES TO POWER AFTER THE FALL ELECTIONS WILL CONTINUE MOVEMENT ON WTO MEMBERSHIP, AND THEREFORE BELIEVES THE TIME IS NOW FOR WTO. THE GOL BELIEVES ITS POSITION IS REASONABLE GIVEN ITS LARGE (35&) AGRICULTURAL SECTOR, AND LOOKS TO THE U.S. TO BE MORE FLEXIBLE IN OUR CONSIDERATION OF THE LATEST GOL MANDATE. SPECIFICALLY, THE GOL WANTS U.S. ACCEPTANCE OF TIME-PHASED, AS OPPOSED TO IMMEDIATE, ELIMINATION OF AGRICULTURAL SUPPORT MEASURES. 4. ON INPP UNIT 1, THE GOL WILL SEEK U.S. COMMITMENT TO ASSIST WITH FUNDING FOR THE DECOMMISSIONING. THIS ISSUE IS PARTICULARLY TIMELY FOR THE GOL, AS IT HAS JUST SCHEDULED A DONORS' CONFERENCE FOR JUNE. AS WITH WTO, THE GOL BELIVES THAT PROGRESS ON THIS ISSUE MAY FALTER AFTER THE ELECTION, AND WILL USE THIS POINT TO TRY TO LEVERAGE IMMEDIATE MANIFESTATIONS OF FINANCIAL DECOMMISSIONING ASSISTANCE IN ALL AREAS, INCLUDING SOCIAL PROGRAMS FOR THE ETHNIC-RUSSIAN POPULATION OF THE TOWN DEPENDENT ON INPP. 5. ALSO IN THE ENERGY SECTOR, THE GOL WILL SEEK U.S. SUPPORT FOR THE CREATION OF A COMMON BALTIC ENERGY MARKET. THIS ISSUE, ALONG WITH ENERGY SECTOR PRIVATIZATION, WAS RECENTLY HIGHLIGHTED DURING ENERGY SECRETARY RICHARDSON'S VISIT AND AT THE BALTIC ENERGY CONFERENCE HELD IN VILNIUS. THE GOL WILL LOOK FOR U.S. TECHNICAL ASSISTANCE AND ALSO FOR STRATEGIC PARTNERS WILLING TO ENTER THE BALTIC MARKET AS THE NATIONAL ASSETS ARE PRIVATIZED. 6. YOUR VISIT WILL ALSO INCLUDE MEETINGS WITH U.S. INVESTORS AND LITHUANIAN GOVERNMENT OFFICIALS. EACH OF THESE MEETINGS WILL GIVE YOU THE OPPORTUNITY TO ADVANCE U.S. INTERESTS AND SUPPORT CONTINUED MARKET REFORM WITHIN THE LITHUANIAN GOVERNMENT. YOUR DINNER WITH MAJOR U.S. INVESTORS WILL ALLOW YOU TO HEAR FIRST-HAND THE CHALLENGES OF DOING BUSINESS IN LITHUANIA, AND ALLOW YOU TO QUERY THE ATTENDING GOL OFFICIALS ON HOW REFORMS WILL BOTH BENEFIT U.S. BUSINESSES CURRENTLY IN LITHUANIA AND ATTRACT ADDITIONAL U.S. AND OTHER FOREIGN INVESTMENT. 7. YOUR MOST IMPORTANT PRIVATE SECTOR MEETING WILL BE WITH WILLIAMS INTERNATIONAL WILLIAMS, WHICH TOOK A 33& SHARE AND MANAGEMENT CONTROL OF MAZEIKIU NAFTA (OIL REFINERY, PIPELINE, AND TERMINAL) COMPLEX IN A CONTROVERSIAL DEAL SIGNED LAST OCTOBER, HAS BEEN BLOCKED BY LUKOIL (THE RUSSIAN OIL SUPPLY COORDINATOR FOR UNCLAS SECTION 02 OF 02 VILNIUS 000847 STATE FOR EB WARSAW FOR PHILLIPS STOCKHOLM FOR PILMANIS E.O. 12958: N/A TAGS: ECON PREL OTRA LH SUBJECT: SCENESETTER FOR U/S LARSON VISIT TO LITHUANIA 2 LITHUANIA) IN ITS ATTEMPT TO SECURE A LONG-TERM RUSSIAN CRUDE OIL SUPPLY FOR THE REFINERY. WITHOUT A LONG-TERM SUPPLY CONTRACT, EBRD AND OTHER LENDERS ARE UNWILLING TO PROVIDE THE FINANCING NECESSARY FOR THE RENOVATION OF THE REFINERY, WHICH IS AN ESSENTIAL PART OF WILLIAMS BUSINESS STRATEGY AND CRUCIAL FOR LITHUANIA'S ECONOMIC RECOVERY. WILLIAMS WILL PROVIDE UPDATED INFORMATION ON CRUDE OIL SUPPLY AND FINANCING NEGOTIATIONS. YOUR SUPPORT FOR USG INTERVENTION WITH EBRD IN FAVOR OF THE DEAL WILL HELP THIS STRATEGIC PROJECT MOVE FORWARD, AND MAY PROVIDE WILLIAMS THE FLEXIBILITY TO NEGOTIATE A CRUDE SUPPLY WITH RUSSIAN SUPPLIERS ON MARKET COMMERCIAL TERMS. 8. IN YOUR MEETING WITH THE PRIME MINISTER, YOU SHOULD PRAISE HIM FOR HIS DECISIVE LEADERSHIP AND HIS TOUGH FINANCIAL DECISIONS WHICH HAVE LED LITHUANIA FROM THE BRINK OF INSOLVENCY TO THE BEGINNING OF RECOVERY. YOU SHOULD ALSO PRAISE HIS SUPPORT FOR THE WILLIAMS DEAL, AND HIS RESOLVE IN RESISTING RUSSIAN EFFORTS TO GAIN CONTROL OF THE REFINERY THROUGH A CRUDE OIL BLOCKADE. YOU SHOULD ENCOURAGE HIM TO STAY THE COURSE ON THE ECONOMIC REFORMS, AND TO IMPLEMENT THE RECOMMENDATIONS OF THE "SUNSET" COMMISSION (DEALING WITH ELIMINATING GOVERNMENT BUREAUCRACY) AS SOON AS POSSIBLE. YOU MAY ALSO WISH TO ENCOURAGE HIM TO MOVE FORWARD ON PRIVATIZATION, PARTICULARLY IN THE ENERGY FIELD. IN THIS REGARD, YOU SHOULD EXPRESS SUPPORT FOR THE U.S. "POWERBRIDGE" PROJECT, WHICH WILL EXPORT LITHUANIAN POWER TO EUROPE. YOU CAN EXPECT KUBILIUS TO ASK FOR INCREASED U.S. SUPPORT FOR LITHUANIAN MEMBERSHIP IN NATO, EU, AND WTO. 9. FOREIGN MINISTER SAUDARGAS WILL HIGHLIGHT THE GOOD RELATIONS LITHUANIA HAS WITH THE U.S. AND OUR STRONG BILATERAL TIES. HE WILL ALSO STRESS U.S. SUPPORT FOR NATO, EU, AND WTO MEMBERSHIP, AND MAY PARTICULARLY HIGHLIGHT WTO (DEPENDING ON THE RESULTS OF THE EBWG). SAUDARGAS MAY ALSO COMMENT ON REGIONAL ISSUES, AND YOU SHOULD USE THIS OPPORTUNITY TO DRAW OUT HIS OPINION ON THE IMPACT PUTIN'S ELECTION WILL HAVE ON LITHUANIAN- RUSSIAN RELATIONS, AND ON RELATIONS WITH THE BALTIC NATIONS AS A REGION. YOU MAY ALSO WISH TO RAISE LITHUANIA'S EFFORTS TO CONFRONT ITS HOLOCAUST HISTORY, IN PARTICULAR THE WORK OF ITS HISTORICAL COMMISSION. 10. LITHUANIA'S GENERAL FINANCIAL SITUATION AND THE WILLIAMS FINANCING WILL BE THE MAJOR TOPICS OF YOUR DISCUSSIONS WITH THE MINISTER OF FINANCE. ON THE POSITIVE SIDE, THE GOL RECENTLY NEGOTIATED AN IMF STANDBY, AND EXPECT TO RECEIVE A WORLD BANK STRUCTURAL ADJUSTMENT LOAN THIS SUMMER. THIS, ALONG WITH THE AUSTERITY BUDGET AND DEMONSTRATED COMMITMENT OF THE GOL TO STICK TO IT, HAS LED TO LITHUANIA'S FINANCIAL RATING BEING CONFIRMED, AND ITS OUTLOOK BEING CHANGED TO "STABLE". ON THE NEGATIVE SIDE, REVENUE COLLECTION IS WELL SHORT OF EXPECTATIONS, AND (UNLESS THIS TREND REVERSES) THE GOL WILL COME UNDER SIGNIFICANT PRESSURE LATER IN THE YEAR TO INCREASE ITS BUDGET DEFICIT. THIS TREND COULD BE REVERSED IF THE REFINERY FINANCING CAME THROUGH, AS THE REFINERY PROVIDES APPROXIMATELY 10& OF GDP AND GOVERNMENT REVENUES. YOU SHOULD EXPRESS YOUR SUPPORT FOR THE MINISTER'S AUSTERITY BUDGET, FINANCIAL DISCIPLINE, AND SOLICIT HIS INPUT ON HOW THE USG CAN BEST ENGAGE THE EBRD AND OTHER LENDERS IN SUPPORT OF THE WILLIAMS DEAL. SMITH 3 Norland, Richard B. (EUR) From: WHSR Sent: Wednesday, March 22, 2000 2:59 PM To: Cables; Norland, Richard B. (EUR) Subject: FORMER PRESIDENT'S VIEW OF WILLIAMS LUKOIL NEGOTIATIONS ActionAddees: RUEHC/SECSTATE WASHDC PRIORITY 1514 RUEADOC/USDOE WASHDC PRIORITY Classification: CONFIDENTIAL Date Time: 221518Z MAR 00 Distribution: SIT: NSC Norland DECLASSIFIED Identifier: M4356122 InfoAddees: RUEHMO/AMEMBASSY MOSCOW 1511 PER E.O. 13526 Line1: PAACZYUW RUEHVLA0746 0821518-CCCC--RHEHAAX. 2016. 0384- M (1.62) Line2: ZNY CCCCC ZZH Line3: P 221518Z MAR 00 KBH 6/23/2023 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: PRIORITY Profiles: CABLES NORLANDR StationRoutingIndicator: RUEHVL StationSerialNumber: 0746 TimeOfReceipt: 03/22/2000 14:59:33 ET ONFIDENTIALSECTION 01 OF 02 VILNIUS 000746 STATE FOR S/NIS, S/NISC, EB/CBED, EUR/RUS, EB/ESC DOE FOR SECRETARY RICHARDSON AND DAS FARIELLO E.O. 12958: DECL: 3/21/10 TAGS: ECON, POL, LH SUBJECT: FORMER PRESIDENT'S VIEW OF WILLIAMS LUKOIL NEGOTIATIONS 1. CLASSIFIED BY AMBASSADOR KEITH C. SMITH, REASONS 1.5 (B) AND (D). 2. SUMMARY ON MARCH 22, AMBASSADOR SMITH MET WITH FORMER PRESIDENT BRAZAUSKAS TO DISCUSS THE WILLIAMS LUKOIL NEGOTIATIONS FOR LONG TERM OIL SUPPLIES FOR THE MAZAIKU REFINERY. BRAZAUSKAS IS WELL CONNECTED WITH LUKOIL AND HAS ACTED ON THEIR BEHALF. BRAZAUSKAS COMMENTED THAT WILLIAMS APPEARS NAIVE IN THEIR NEGOTIATIONS AND THAT NO AGREEMENT WOULD BE REACHED. HE EXPLAINED THAT RUSSIAN OIL ENTERPRISES ARE GOVERNMENT CONTROLLED, THAT THE OIL EXPORT COORDINATOR IS A GOVERNMENT TOOL USED TO CONTROL FLOW AND PERHAPS LUKOIL WAS MERELY FOLLOWING INSTRUCTIONS. HE STATED THAT THE ENERGY COMMISSION HAD DECIDED NOT RPT NOT TO EXPORT OIL TO LITHUANIA. BRAZAUSKAS CONFIRMED THAT LUKOIL WANTED EQUAL EQUITY WITH WILLIAMS AND A SHARED MANAGEMENT POSITION IN THE REFINERY. THE AMBASSADOR EXPRESSED CONCERN THAT THE NEGOTIATIONS SEEM MORE AND MORE POLITICALLY MOTIVATED. PRESIDENT BRAZAUSKAS COMMENTED THAT THE RECENTLY APPROVED EBRD LOAN SEEMED TO BE A VOTE OF CONFIDENCE FOR LUKOIL. THE AMBASSADOR EXPLAINED THAT THE APPROVAL CAUSED A LENGTHY DEBATE, THAT THE LOAN CAME WITH TRANSPARENCY REQUIREMENTS AND THAT IT WAS HOPED THAT LUKOIL WOULD PROVE RUSSIAN FIRMS CAN RECOGNIZE WIN/WIN SITUATIONS AND NEGOTIATE ON PURELY ECONOMIC GROUNDS. END SUMMARY. 3. FORMER PRESIDENT BRAZAUSKAS STATED THAT HE WAS NOT 1 OPPOSED TO THE WILLIAMS COMPANY, WHICH HE BELIEVES, IS A SERIOUS INTERNATIONAL FIRM. HE DID EXPRESS CONCERN THAT PUBLIC COMMENTS BY WILLIAMS SEEM TO REFLECT WISHFUL THINKING RATHER THAN THE FACTS AS HE SEES THEM. BRAZAUSKAS BELIEVES THE SITUATION CONCERNING OIL SUPPLIES FOR MAZAIKU NAFTA ESPECIALLY AT CONCESSIONAIRE PRICES IS MORE COMPLEX THAN WILLIAMS ADMITS. BASED ON HIS UNDERSTANDING OF THE WILLIAMS BUSINESS PLAN WITHOUT A LONG TERM SUPPLY AGREEMENT WITH LUKOIL, WHICH BRAZAUSKAS BELIEVES WILLIAMS WILL NOT GET, WILLIAMS HAS NO FINANCIAL FUTURE IN LITHUANIA. HE BELIEVES THAT WILLIAMS IS BEING NAIVE TRYING TO REACH AN AGREEMENT FOR OIL AT PRICES EQUAL TO THOSE GRANTED TO BELARUS, AS ALL RUSSIA CONSIDERS BELARUS A DOMESTIC DESTINATION AND LITHUANIA A FOREIGN DESTINATION. 4. AMBASSADOR SMITH COMMENTED THAT IT WAS VERY DIFFICULT FOR WILLIAMS TO REACH A BUSINESS AGREEMENT WITH ANY RUSSIAN OIL SUPPLIER BECAUSE OF THE RUSSIA OIL EXPORT COORDINATOR SYSTEM. LUKOIL, AS THE COORDINATOR FOR EXPORTS TO LITHUANIA WITH A MONOPOLY POSITION CONTROLLING ALL EXPORTS, IS CAPABLE OF PREVENTING ANY AGREEMENT. PRESIDENT BRAZAUSKAS AGREED AND STATED THAT THE SYSTEM WILL NOT CHANGE. BRAZAUSKAS EXPLAINED THAT WHILE RUSSIAN OIL ENTERPRISES HAVE BEEN PARTIALLY PRIVATIZED, MAJORITY CONTROL IS STILL IN THE HANDS OF THE GOVERNMENT. THE COORDINATOR SYSTEM IS THE MEANS, THE TOOL THE GOVERNMENT USES TO CONTROL ALL OIL TRANSACTIONS. ALL OIL EXPORT QUOTAS ARE SET BY A TWENTY (20) MEMBER ENERGY COMMISSION THAT CONTROLS ALL FLOW AND SETS QUARTERLY QUOTAS FOE EVERY PIPELINE AND TERMINAL. BRAZAUSKAS STATED THAT THERE WOULD BE NO OIL FOR LITHUANIA AS IT HAS BEEN ELIMINATED FROM THE EXPORT QUOTA LIST. 5. AMBASSADOR SMITH STATED THAT OUR PERCEPTION WAS THE NEGOTIATIONS SEEM TO BE GETTING MORE POLITICALLY RATHER THAN ECONOMICALLY MOTIVATED. LUKOIL SEEMS TO HAVE CHANGED THEIR REQUIREMENTS FROM REQUIRING A CONTROLLING EQUITY POSITION TO REQUIRING AN EQUITY POSITION WITH A SHARED MANAGEMENT ROLE. BRAZAUSKAS STATED THAT HE IS WELL ACQUAINTED WITH LUKOIL'S ALEGPEROV AND MET WITH HIM AS RECENTLY AS LAST YEAR. BRAZAUSKAS' INTERPRETATION IS THAT LUKOIL NEVER WANTED A CONTROLLING EQUITY POSITION BUT THEY DO WANT EQUITY, PERHAPS AS MUCH AS THIRTY-THREE (33) PERCENT, WITH SHARED MANAGEMENT ALONG THE LINES THAT EXIST WITH OTHER WESTERN FIRMS SUCH AS IN KAZAKHSTAN. BRAZAUSKAS OPINED THAT THIS TYPE OF ARRAIGNMENT WAS WORKING VERY WELL IN OTHER VENTURES INVOLVING LUKOIL AND RUSSIAN OIL FIRMS. 6. AMBASSADOR SMITH COMMENTED THAT SINCE THE LOSSES SUFFERED AS A RESULT OF THE 1998 CRISIS, INTERNATIONAL LENDERS ARE LEERY OF SHARED MANAGEMENT ARRANGEMENTS WHILE EQUITY POSITIONS ARE NOT A PROBLEM. LUKOIL APPEARS TO BE A GOOD COMPANY WITH GOOD PROSPECTS BUT IN THIS INSTANCE SEEMS TO BE ACTING WITH SHORT TERM POLITICAL MOTIVATIONS OF CONTROLLING OIL FLOW RATHER THAN WITH A LONG TERM ECONOMIC MOTIVATION OF SUSTAINED PROFITS. BRAZAUSKAS COMMENTED THAT PERHAPS LUKOIL IS SIMPLY BEING TOLD WHAT TO DO AS RUSSIA HAS BEEN AND CONFIDENTIAL SECTION 02 OF 02 VILNIUS 000746 STATE FOR S/NIS, S/NISC, EB/CBED, EUR/RUS, EB/ESC DOE FOR SECRETARY RICHARDSON AND DAS FARIELLO E.O. 12958: DECL: 3/21/10 TAGS: ECON, POL, LH SUBJECT: FORMER PRESIDENT'S VIEW OF WILLIAMS LUKOIL 2 NEGOTIATIONS REMAINS IRRITATED AT THE WAY LITHUANIA SHUT OUT RUSSIA FROM THE WHOLE WILLIAMS DEAL. BUT PRESIDENT BRAZAUSKAS COMMENTED THAT THE SAME INTERNATIONAL LENDERS (EBRD) PREVIOUSLY SET AGAINST LUKOIL SHARED MANAGEMENT HAVE NOW APPROVED A 250 MILLION DOLLAR CREDIT LINE FOR LUKOIL. AMBASSADOR SMITH ADVISED THAT THE LOAN WAS LINKED TO CERTAIN TRANSPARENCY REQUIREMENTS AND THAT AS YET NO MONEY HAD MOVED. HE ALSO EXPLAINED THAT THE APPROVAL OF THE LOAN PROVOKED LENGTHY DEBATE. THE US DECISION WAS TO TAKE A POLITICAL RISK AND APPROVE THE LOAN HOPING THAT LUKOIL WOULD TAKE A MORE ECONOMICALLY BASED POSITION IN NEGOTIATION WITH WILLIAMS AND LITHUANIA. THE AMBASSADOR COMMENTED THAT IN STRICTLY ECONOMIC TERMS A LONG TERM AGREEMENT COULD BE A WIN-WIN SITUATION FOR EVERYBODY. RUSSIA'S ABILITY TO RECOGNIZE THE WIN-WIN ASPECTS OF THIS DEAL IS BEING SEEN BY MANY AS A LITMUS TEST OF THE ABILITY TO NEGOTIATE AND DEAL WITH RUSSIAN FIRMS ON A STRICTLY ECONOMIC BASIS. PRESIDENT BRAZAUSKAS COMMENTED THAT ECONOMIC CONCERNS SHOULD BE PRIMARY. 7. COMMENT. PRESIDENT BRAZAUSKAS HAS VERY CLOSE TIES WITH ALEGPEROV AND OTHER RUSSIAN BUSINESS LEADERS. WE ARE CONFIDENT THAT THE ENTIRE CONVERSATION WILL BE REPORTED. END COMMENT SMITH 3 Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 004. report re: Russia's Lukoil [partial] (4 pages) 03/17/2000 P1/b(1) COLLECTION: Clinton Presidential Records National Security Council European Affairs (Richard Norland) OA/Box Number: 2630 FOLDER TITLE: Lithuania [6] 2011-1038-F kh1049 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. DECLASSIFIED IN PART SECRET 3.5(c) PER E. O. 13526 Central & East European Update 17 March 2000 2016-0384-M [1.63] KBH 6/23/2023 Special Analysis Russia's Lukoil Still Playing Hardball Over Lithuanian Oil Supplies 3.5(c) The Russian oil giant Lukoil may be holding off refinery through monthend. Further delays in until after Lithuania's Seimas (parliamentary) reaching a supply agreement, however, would election this fall on a long-term deal to supply force Vilnius to draw down its strategic fund to Lithuania's Mazeikiu Nafta (MN) oil refinery, pay for MN's losses and would exacerbate Butinge terminal, and pipeline complex in hopes Lithuania's already serious fiscal problems, that a more favorable government will come to 1.4(c) power in Vilnius. Tax revenue from MN's refinery is drying up, In a late January meeting with the US firm that threatening Lithuania's slow recovery from the bought a 33-percent stake in MN last year, Lukoil Russian financial crisis 1.4(c) renewed its demands for at least equal equity and management rights in MN and for deep discounts MN accounts for about 10 percent for MN's refined products-in some cases the of Lithuania's GDP. price paid would be below the cost of refining- 1.4(c) MN officials recently said that lack of regular crude oil supplies for its refinery-which was At the same time, Lukoil may be positioning idle for 56 days last year-accounts for one-third itself to forgo MN and concentrate instead on of its $32.7 million loss last year. MN refined its recent refinery acquisitions in Bulgaria, 4.56 million tons last year-one-third less than Romania, and Ukraine if it realizes that it cannot get at least an equal share of MN 3.5(c) Lukoil Has the Upper Hand Lukoil's hardball tactics in negotiations with MN and the US oil firm probably are based on the Russian firm's perception that the LUK much lower prices of Russian crude-compared to alternative suppliers-give it the upper hand. MN has imported enough North Sea crude-more expensive than Russian crude-to operate the © Lukoil's Alekperov (top) collaborating with ex-Prime Minister Paksas (right) against the Kubilius (left) government? 9 SECRET 3.5(c) SECRET 3.5(c) Central & East European Update 17 March 2000 in 1998 and far short of its 12 million ton annual Vilinus Weighing Options capacity-according to press reports 3.5(c) Vilnius seems to realize that a long-term supply If Lukoil uses its political clout to disrupt oil agreement with a Russian firm may be the most deliveries to MN-even from other Russian viable option economically, but it remains suppliers beholden to it-political rather than concerned that continued dependence will make it commercial interests would probably be the vulnerable to Russian pressure and to costly supply primary motive. cutoffs, as occurred a few times last year. To help ease its vulnerability to Lukoil's tough negotiating Prime Minister Kubilius last month 1.4(c) tactics, the Lithuanian Government has decided to believed a deal was not likely delegate a government representative to participate because Lukoil- 1.4(c) in talks between MN and Russian crude oil suppliers and has begun exploring alternative deals with other was Russian firms. using the oil issue to drive his Conservative Party out of office. Officials from Yukos-Russia's second-larget oil company-and the US firm were scheduled to Paksas has been the most popular Lithuanian meet on March 17 to discuss a deal in which politician since he resigned last October after Yukos would provide firmer guarantees of crude refusing to sign an agreement with the US oil oil supplies in exchange for a stake in MN, firm. He would be a likely prime ministerial according to press reports. candidate if his Liberal Union Party-currently ahead in the polls-wins a plurality. 3.5(c) According to press reports, Lithuania wants 6 million tons of crude annually for 10 years and To date, the extent of Russian Government would consider selling at least a 10-percent stake involvement in Lukoil's pressure on Vilnius to a Russian supplier. Press reports indicate remains unclear, but senior Russian officials at a Yukos is prepared to buy such a stake. minimum have provided tacit support for Lukoil's efforts to gain control of Lithuania's energy sector. Yukos last month supplied almost half of The Russian Embassy has supported Lukoil's Russia's 60,000-barrel-per-day deliveries to campaign to discredit the US firm since late 1997, Lithuania. 1.4(c), 3.5(c) and Moscow's new Ambassador to Lithuania spent the last year of his 22-year KGB/SVR career serving as liaison between the SVR and Lukoil, 1.4(c) 10 SECRET 3.5(c) SECRET 3.5(c) Central & East European Update 17 March 2000 Russia: Renewed Pressure on the Baltic States 3.5(c) After a year of relative quiet, Russia has once again stepped up its criticism of Latvia's treatment of its ethnic Russian minority. This campaign-which is probably aimed at weakening Riga's EU and NATO bids-has dashed Baltic officials' hope that Acting President Putin would be more constructive toward them. Putin's tough tone may in part reflect Russian electoral politics, but his actions-and those of other Russian officials-suggest there is little chance for near-term improvement in Russian-Baltic relations. Putin last month sent a letter to the Latvian President warning that the late January conviction of an elderly Soviet-era veteran for war crimes could harm future Russian-Latvian relations, and Foreign Minister Ivanov has complained about the case to US, EU, and Council of Europe officials. 1.4(c) Dmitri Rogozin, the new leader of the Duma's influential Foreign Affairs Committee and founder of a group to protect ethnic Russians abroad, plans to submit to the Duma later this month bills on economic sanctions against Latvia and on providing aid to Latvia's Russian-speaking population. 3.5(c) 1.4(c), 3.5(c) 11 SECRET 3.5(c) 1.4(c), 1.4(d), 3.5(c) 03/16/00 THU 16:36 FAX 202 647 4037 EB/ESC/IEC 5 001 FAX TO: Dick Norland, NSC FROM: Russ Trowbridge, EB/ESC/EPC TEL: 647-1476 FAX: 647-4037 Four pages plus cover Dick: I could not get through on your email. Therefore attached is the memo for the files I did to update the status of Williams in Lithuania. Russ 03/16/00 THU 16:36 FAX 202 647 4037 EB/ESC/IEC 002 SENSITIVE BUT UNCLASSIFIED March 16, 2000 MEMORANDUM FROM: EB/ESC/EPC - Russ Trowbridge TO: The Files SUBJECT: Update on Williams project in Lithuania On March 15, I had a conference call with Randy Majors (Williams Project Manager for Lithuania) and Glenn Jackson (Williams Rep, Washington) to get an update on Williams' status in Lithuania. Yukos: Williams has been in discussions with Yukos for the past 18 months concerning their interest in acquiring a 10% equity in the refinery (Mazeikiu Nafta - MN) Yukos claims that if they obtain an equity position, Russian law guarantees their right to ship to the refinery. Williams has accepted this assertion at face without additional checking or analysis. Majors described the Williams/Yukos discussions as straight forward with no hidden agenda, based on a profit motive. If the price is right, the two sides will probably cut a deal. Majors predicted the sides would reach agreement soon because Yukos is realistic and the gap between the bid/offer proposals is narrow at this point. Williams Intl President Bumgartner and MN President Hunkus will meet with Yukos Friday March 17 to see how close they are to an agreement. A key part of the element would be that Lukoil provide 1.7 million tons of crude to the refinery annually, out of a total refining capacity of 16 million tons once the refinery is upgraded. While this is only about 10 percent of the refinery's total needs, Williams sees it has very significant because it would break the stranglehold that Lukoil has on shipments to Lithuania under the current coordination system. Asked about the role of the GOL in the negotiations on an equity position for Yukos, Majors said the GOL was on board in principle and Williams was keeping the GOL fully in the loop. Williams would recommend to the GOL the terms it would like for Yuko's participation and Williams would be in the lead on negotiations. (Yukos equity position would be transferred from the GOL's owernship interest, but would 03/16/00 THU 16:36 FAX 202 647 4037 EB/ESC/IEC 003 2 reduce the maximum equity position that Williams could acquire in the future.) Williams had told Lukoil about its intentions to negotiate an equity position with Yukos, and Lukoil voiced "no major objections." Buying oil from Yukos Majors said that Williams had been "playing it soft" in their overall business relationship with Yukos (i.e., no hardball tactics), which includes contracting for crude supplies in addition to the negotiations for an equity position. However, Yukos was frustrated on the crude supply negotiations because Williams was playing them off against Sibneft as a supplier; and this was transparent. Sibneft and the Butinge Terminal I asked about the Sibneft contract that had just been announced. (See below.) Majors said the press item was accurate. He also noted that March for the first time Butinge had been offered more oil than it could handle. A benchmark would be set in two weeks when Butinge would ship its one millionth ton of oil from the commencement of operations. Sibneft To Export Crude Through Butinge VILNIUS, Mar 14, 2000 -- (Reuters) Russian oil company Sibneft is planning to export some 75,000 metric tons of crude through Lithuania's Butinge oil terminal starting March 25, daily Lietuvos rytas reported on Tuesday. Sibneft would be the third Russian oil company that will export crude through Butinge, a part of local Mazeikiu Nafta oil concern, one third owned and operated by U.S. Williams International , the newspaper said. The land-based Butinges terminal with a floating buoy has an annual capacity to export annually eight million metric tons of crude and currently has agreements to handle some 4.8 million metric tons this year, the newspaper quoted unnamed sources as saying. 03/16/00 THU 16:37 FAX 202 647 4037 EB/ESC/IEC 004 3 Relationship with Lukoil The relationship with Lukoil remains problematic. A Sibneft source characterized as reliable told Majors that they had been warned off of doing business with Lithuania. (Majors said the warning had come from either Lukoil or the Ministry of Fuels and Energy -- he did not know which.) Despite Lukoil's hardball tactics, Williams is attempting to maintain good relations with Lukoil based on the reality that Lukoil is the "big fish" in the region and the largest potential supplier for the refinery. Williams' has attempted to make it clear within the region that their business plan does not include freezing out the Russians. As a result, they have taken several steps that have generated criticism against them in Lithuania including: a) signing an agreement to supply Lukoil's gas station network (Lukoil Baltica); and b) agreeing to resupply Kaliningrad with fuel. Majors said there were a number of cries to apply tactics that Lukoil would have used -- cut off the gas stations and Kaliningrad. RussiLithuanian press got flack. Game plan is not to block out Russians. Should have just cut off stations. Proposal for a New Russian Refinery in Latvia I asked whether the report of a new Russian oil refinery in Latvia was a pressure tactic on Williams to cut a deal with Lukoil. (Note: See press release below. MN is currently the only refinery in the Baltic States and furnishes all three markets.) Majors said he had heard about the proposal several weeks ago. The number don't add up -- it made no sense for a small refinery (40,000 bpd) to attempt competing with MN (four or five times larger) on price terms. While he did not rule out the possibility that an investor might step forward, he noted that any competent investor would be well aware that he was probably writing off $200 million. 03/16/00 THU 16:37 FAX 202 647 4037 EB/ESC/IEC 005 4 Furthermore, nobody seems to be aware of this project. The Latvian Minister of the Economy said it was news to him, and a senior Williams contact in the Russian oil and gas federation (who should have know about it) said he was unaware of it. Russian Oil Companies Consider Latvian Refinery, Interfax Says Moscow, March 15 (Bloomberg) -- Russian oil companies are in talks with Latvian authorities over construction of a $200 million refinery in Latvia, Russian news agency Interfax reported, citing Aivar Lemberg, the mayor of Ventspils without elaborating on the negotiations' participants. The refinery will have 2 million tons of oil processing capacity. The refinery's oil products would be marketed locally and in the Kaliningrad region in Russia, the agency said. From: Embassy of Lithuania To: Richard B. Norland Date: 2000.03.21 Time: 21:51:44 Page 1 of 1 LITHUANIAN MINISTRY OF FOREIGN AFFAIRS INFORMATION AND CULTURE DEPARTMENT, PRESS DIVISION J.TUMO VAIZGANTO g., LT-2600, VILNIUS, LITHUANIA. Tel.:(370-2)+62 16 57, +22 12 89; Fax.:(370-2)+620 752, +618 689, +221 287, E-mail:[email protected] PRESS RELEASE March 15, 2000 NATIONAL HOLOCAUST EDUCATION PROJECT TO BE LAUNCHED IN LITHUANIA Lithuania increases its attention to the projects of the education about the Holocaust, investigation and preservation of the Jewish history and culture in Lithuania. In the beginning of 2000, the Lithuanian Foreign Ministry established a position of Ambassador for Special Assignments. Alfonsas Eidintas, a former Lithuanian Ambassador to the US (1993-1997) and Canada (1997-2000) was appointed to the new position. Working in the Institute of the Lithuanian History Dr. Eidintas as early as in 1990 together with Alan Nadler, Director of the Institute of Jewish History (YIVO), New York, organized the first conference of Lithuanian and Jewish historians. Ambassador Eidintas has paid much attention to the cultural cooperation of Lithuanians and Jews while working in the US. Ambassador for Special Assignments Eidintas will take care of relations with the Jewish Diaspora in the world, communities of the Litvaks, NGO's, take part in decision making process on the above mentioned issues. In order to invigorate cooperation between Lithuania and international group for Holocaust education, Task Force, on March 14, the Lithuanian Foreign Ministry and the International commission for the assessment of crimes committed by Nazi and Soviet rules established by the President of Lithuania organized a meeting of the representatives of about 30 governmental institutions and NGO's. The list of the institutions represented at the meeting included the Ministry of Education and Science, the Human Rights and Minorities' Issues Committee of the Seimas (Parliament) of Lithuania, the Lithuanian Jewish community, historians, journalists. The participants of the meeting led by Ambassador Eidintas discussed the first national project on the Holocaust education. The Task Force was established in 1998, on the initiative of the Swedish Prime Minister as an intergovernmental organization embracing Italy, Israel, the United States, Great Britain, Poland, the Netherlands, Sweden, Germany and France. The aim of the Task Force is to encourage international cooperation in the field of the Holocaust education, remembrance and investigation, assistance for certain projects. The Lithuanian Prime Minister Andrius Kubilius expressed the interest of Lithuania to cooperate with the Task Force in his speech in the international Holocaust forum in Stockholm in January, 2000. Norland, Richard B. (EUR) From: Storey, Sharon V. (NSA) Sent: Monday, March 06, 2000 8:21 PM To: Norland, Richard B. (EUR); Blinken, Antony J. (EUR); @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: RE: Landsbergis/SRB [CONFIDENTIAL] SRB has seen and regrets. thanks Original Message From: Norland, Richard B. (EUR) Sent: Friday, March 03, 2000 2:52 PM To: Blinken, Antony J. (EUR); @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: RE: Landsbergis/SRB [CONFIDENTIAL] Lithuanian Ambassador called to see what prospects are for this meeting taking place. He made clear it's understood if SRB can't do it, and Landsbergis' schedule is tight, but obviously they would be delighted if this could happen. Bottom line: It is not in the must do category, at this stage. Original Message From: Blinken, Antony J. (EUR) Sent: Tuesday, February 29, 2000 6:08 PM To: @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: Landsbergis/SRB [CONFIDENTIAL] TO: Sandy THRU: Tony Blinken From: Dick Norland As he noted to you this morning, Lithuanian Ambassador Sakalauskas is requesting that you meet briefly on March 6-9 with Vytautas Landsbergis, Chairman (Speaker) of the Lithuanian Parliament, who will be visiting Washington in connection with numerous events that week marking the 10th anniversary of the restoration of Baltic independence. Landsbergis would use the meeting to thank you for U.S. support, discuss regional security and relations with Russia, and press for support for Lithuanian membership in NATO. Landsbergis is one of the original historical figures in the events that led to the breakup of the Soviet Union; a meeting with him would have important symbolic value. Landsbergis sought a meeting with you when he last visited in November -- you proposed that Jim Steinberg do the meeting, but a meeting between Jim and Landsbergis did not work out for scheduling reasons. OK - schedule meeting March 6-9 Decline Discuss DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-18-2013 2011-1038-F 1 Norland, Richard B. (EUR) From: Norland, Richard B. (EUR) Sent: Monday, March 06, 2000 11:44 AM To: Norland, Richard B. (EUR); Blinken, Antony J. (EUR); @NSA - Natl Security Advisor; @EUROPE- European Affairs Subject: RE: Landsbergis/SRB [CONFIDENTIAL] If there is no word on this before I leave with Jim for Belfast today (about 4 pm), NANCY will pass the word to the Lithuanians. Original Message From: Norland, Richard B. (EUR) Sent: Friday, March 03, 2000 2:52 PM To: Blinken, Antony J. (EUR); @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: RE: Landsbergis/SRB [CONFIDENTIAL] Lithuanian Ambassador called to see what prospects are for this meeting taking place. He made clear it's understood if SRB can't do it, and Landsbergis' schedule is tight, but obviously they would be delighted if this could happen. Bottom line: It is not in the must do category, at this stage. Original Message From: Blinken, Antony J. (EUR) Sent: Tuesday, February 29, 2000 6:08 PM To: @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: Landsbergis/SRB [CONFIDENTIAL] TO: Sandy THRU: Tony Blinken From: Dick Norland As he noted to you this morning, Lithuanian Ambassador Sakalauskas is requesting that you meet briefly on March 6-9 with Vytautas Landsbergis, Chairman (Speaker) of the Lithuanian Parliament, who will be visiting Washington in connection with numerous events that week marking the 10th anniversary of the restoration of Baltic independence. Landsbergis would use the meeting to thank you for U.S. support, discuss regional security and relations with Russia, and press for support for Lithuanian membership in NATO. Landsbergis is one of the original historical figures in the events that led to the breakup of the Soviet Union; a meeting with him would have important symbolic value. Landsbergis sought a meeting with you when he last visited in November - -- you proposed that Jim Steinberg do the meeting, but a meeting between Jim and Landsbergis did not work out for scheduling reasons. OK - schedule meeting March 6-9 Decline Discuss DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By уКВИ NARA, Date 7-18-2013 2011-1038-F 1 Norland, Richard B. (EUR) From: Norland, Richard B. (EUR) Sent: Friday, March 03, 2000 2:52 PM To: Blinken, Antony J. (EUR); @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: RE: Landsbergis/SRB [CONFIDENTIAL] Lithuanian Ambassador called to see what prospects are for this meeting taking place. He made clear it's understood if SRB can't do it, and Landsbergis' schedule is tight, but obviously they would be delighted if this could happen. Bottom line: It is not in the must do category, at this stage. Original Message From: Blinken, Antony J. (EUR) Sent: Tuesday, February 29, 2000 6:08 PM To: @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: Landsbergis/SRB [CONFIDENTIAL] TO: Sandy THRU: Tony Blinken From: Dick Norland As he noted to you this morning, Lithuanian Ambassador Sakalauskas is requesting that you meet briefly on March 6-9 with Vytautas Landsbergis, Chairman (Speaker) of the Lithuanian Parliament, who will be visiting Washington in connection with numerous events that week marking the 10th anniversary of the restoration of Baltic independence. Landsbergis would use the meeting to thank you for U.S. support, discuss regional security and relations with Russia, and press for support for Lithuanian membership in NATO. Landsbergis is one of the original historical figures in the events that led to the breakup of the Soviet Union; a meeting with him would have important symbolic value. Landsbergis sought a meeting with you when he last visited in November - you proposed that Jim Steinberg do the meeting, but a meeting between Jim and Landsbergis did not work out for scheduling reasons. OK - schedule meeting March 6-9 Decline Discuss DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-18-2013 1 2011-1038.F Norland, Richard B. (EUR) From: Blinken, Antony J. (EUR) Sent: Tuesday, February 29, 2000 6:08 PM To: @NSA - Natl Security Advisor; @EUROPE - European Affairs Subject: Landsbergis/SRB [CONF IDENTIAL] TO: Sandy THRU: Tony Blinken From: Dick Norland As he noted to you this morning, Lithuanian Ambassador Sakalauskas is requesting that you meet briefly on March 6-9 with Vytautas Landsbergis, Chairman (Speaker) of the Lithuanian Parliament, who will be visiting Washington in connection with numerous events that week marking the 10th anniversary of the restoration of Baltic independence. Landsbergis would use the meeting to thank you for U.S. support, discuss regional security and relations with Russia, and press for support for Lithuanian membership in NATO. Landsbergis is one of the original historical figures in the events that led to the breakup of the Soviet Union; a meeting with him would have important symbolic value. Landsbergis sought a meeting with you when he last visited in November -- you proposed that Jim Steinberg do the meeting, but a meeting between Jim and Landsbergis did not work out for scheduling reasons. OK - schedule meeting March 6-9 Decline Discuss DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By КВИ NARA, Date 7-18-2013 2011-1038-F 1 04/28 '00 06:47 ID:LANIERFAX3800 FAX: PAGE 1 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VASINGTONAS WASHINGTON, D.C. February 29, 2000 The Honorable Samuel Berger National Security Advisor National Security Council The White House Washington, DC 20501 Excellency, On March 6-9 Hon. Vytautas LANDSBERGIS, Chairman (Speaker) of the Lithuanian Parliament, will be visiting Washington, D.C. His delegation will comprise of Mr. Rimantas DAGYS, Deputy Speaker and Mr. Emanuelis ZINGERIS, Chairman of the Human Rights Committee. I would avail myself of this opportunity to extend the Chairman's personal request for a meeting with you. During the meeting the Chairman would first of all like to express his gratitude for your support for Lithuania and the Baltics. The Chairman would also discuss regional stability and the role of the US in the Baltic region; situation in Russia and Belarus; ESD and NATO. Thank you for your kind attention and looking forward to receiving a reply. Yours sincerely, Halalard Stasys Sakalauskas Ambassador SS:ah 04/28 '00 06:45 D:LANIERFAX3800 FAX: PAGE 1 Embassy of the Republic of Lithuania 2622 Sixteenth Street, NW Washington, DC 20009-4202 Date: 02/24/2000 No. of pages Including cover sheet: 2 FAX To: From: Mr Ridwed Norlawd starys Sahwlauskas Director Ambassactor Phone: 202-234-5860 Phone: Fax Phone: 202-328-0466 Fax Phone: Email: [email protected] CC: Internet Site: http://[email protected] Thank you for your message / letter / fax / communication. Thank you for your assistance. Referring to your message / letter / fax / communication. Thank you for your information. As per our conversation. As per your request. As agreed earlier. Your response is kindly requested. Your viewpoint would be appreciated. Your requested information unfortunately is not available. Your request was registered. The information / material will be sent to you. Please contact our office. Other: Pliase forward the letter to the Honoroble famiel Began, Thouli you, The Embassy greatly appreciates your interest in Lithuania. If more information or clarification is needed, please feel free to contact us. SS:ah 2622 16TH STREET. N.W. . WASHINGTON, D.C. 20009 . TEL. (202) 234-5860 . FAX: (202) 328-0466 US COMMITTEE ON NATO 2127 CALIFORNIA STREET, N.W., SUITE 507 WASHINGTON, D.C. 20008 E-MAIL: [email protected] FACSIMILE TRANSMITTAL SHEET TO: Richard Norland FROM: COMPANY: DATE: 2-29-00 FAX NUMBER: TOTAL NO. OF PAGES INCLUDING COVER: / PHONE NUMBER: SENDER'S REFERENCE NUMBER: (202) 588-5876 NOTES/COMMENTS: The US Committee on NATO requests the pleasure of your company at a reception in honor of pleaset The Honorable Vytautas Landsbergis, Chairman of Parliament In Lithuania regutted Monday March 6th from 6-8 p.m. at the residence of Julie Finley 3221 Woodland Drive, N.W. Please RSVP to Julie Finley at (202) 338-2849 PHONE: (202) 986-3453 FAX: (202) 588-5876 Feb. 28 2000 06:18PM P1 PHONE NO. : 301 215 7644 FROM : Barbara Rein & Assoc. Norland, Richard B. (EUR) From: WHSR Sent: Thursday, February 17, 2000 11:04 AM To: Babbitt, James F. (VP); Bolan, Christopher J. (VP); Cables; Davidson, Leslie K. (VP); Feldman, Daniel F. (MULTI); Guarnieri, Valerie N. (MULTI); Mclean, Matthew K. (MULTI); Naplan, Steven J. (MULTI); Norland, Richard B. (EUR); Patten, Wendy L. (MULTI); Schwartz, Eric P. (MULTI); Vaccaro, Jonathan M. (Matt) (MULTI); Wilcox, Richard M. (MULTI); Yee, Hoyt B. (EUR) Subject: LITHUANIAN HOLOCAUST TRIALS UPDATE: CRIMINAL CODE AMENDED, DEFENDANTS TO BE TRIED IN ABSENTIA ActionAddees: RUEHC/SECSTATE WASHDC PRIORITY 1376 RUEAWJB/DEPT OF JUSTICE WASHDC PRIORITY RUEHRA/AMEMBASSY RIGA 1417 RUEHTL/AMEMBASSY TALLINN 5150 RUEHTV/AMEMBASSY TEL AVIV 0134 RUEHWR/AMEMBASSY WARSAW 2850 RUEHBY/AMEMBASSY CANBERRA 0010 RUEHMO/AMEMBASSY MOSCOW 1484 RUEHSK/AMEMBASSY MINSK 0932 Classification: UNCLASSIFIED Date Time: 171540Z FEB 00 Distribution: SIT: BABBITT BOLAN NSC DAVIDSON FELDMAN GUARNIERI MCLEAN NAPLAN NORLAND PATTEN SCHWARTZ VACCARO WILCOX YEE PRT: JACOBSON Identifier: M4299806 InfoAddees: IIII Line1: PAAUZYUW RUEHVLA0422 0481540-UUUU--RHEHAAX. Line2: ZNR UUUUU ZZH Line3: P 171540Z FEB 00 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: PRIORITY Profiles: BABBITTJ BOLANC CABLES DAVIDSOL FELDMAND GUARNIEV MCLEANM NAPLANS NORLANDR PATTENW SCHWARTE VACCAROJ WILCOXR YEEH StationRoutinglndicator: RUEHVL StationSerialNumber: 0422 TimeOfReceipt: 02/17/2000 10:56:24 ET UNCLAS VILNIUS 000422 STATE FOR S/WCI, EUR/RHA, AND EUR/NB JUSTICE FOR OSI ROSENBAUM E.O. 12958: N/A TAGS: PREL, PGOV, PHUM, CJAN, LH SUBJECT: LITHUANIAN HOLOCAUST TRIALS UPDATE: CRIMINAL CODE AMENDED, DEFENDANTS TO BE TRIED IN ABSENTIA 1. ON FEBRUARY 15, THE LITHUANIAN PARLIAMENT AMENDED THE COUNTRY'S CRIMINAL CODE TO ALLOW GENOCIDE CASES TO GO AHEAD WITHOUT THE PRESENCE OF DEFENDANTS TOO ILL TO ATTEND COURT HEARINGS. THIS VOTE COULD CLEAR THE WAY FOR THE TRIAL OF 1 FORMER AMCIT ALEKSANDRAS LILEIKIS TO PROCEED (LILEIKIS IS ACCUSED OF THE MURDER OF JEWS WHILE HE WAS HEAD OF THE VILNIUS SECURITY SERVICE OF NAZI OCCUPIED LITHUANIA). 2. THE NEW LEGISLATION ALLOWS DEFENDANTS TOO ILL TO ATTEND COURTROOM SESSIONS TO PARTICIPATE IN TRIAL PROCEEDINGS VIA CLOSED CIRCUIT TELEVISION OR TO BE REPRESENTED ONLY BY LEGAL COUNSEL. THE AMENDED CRIMINAL CODE COULD ALLOW TRIALS OF SEVERAL DOZEN ACCUSED WAR CRIMINALS FROM NAZI AND SOVIET OCCUPATION PERIODS. SENTENCES IN THESE TRIALS WOULD BE SET ASIDE AND ENFORCED ONLY AFTER THE DEFENDANT RECOVERS. THE DRAFTERS OF THE AMENDMENTS BELIEVE THAT THEY COULD BE APPLIED IN ABOUT 80 CASES. THE HEAD OF THE PARLIAMENTARY HUMAN RIGHTS COMMITTEE, MP EMANUELIS ZINGERIS, WHO SPONSORED THE AMENDMENT, SAID THAT NINE OF THOSE CASES ARE RELATED TO THE NAZI HOLOCAUST, WHILE THE REST ARE CASES OF SOVIET POST-WAR REPRESSION IN LITHUANIA. 3. LOCAL PRESS HAS REPORTED ON THE AMENDMENTS AS HAVING "LEGALIZED AN UNPRECEDENTED PROCEDURE." THE PRESS HAS SUGGESTED THAT THE AMENDMENT WAS THE RESULT OF FOREIGN PRESSURE. SOME PARLIAMENTARIANS HAVE ALSO PROTESTED, CALLING THE AMENDMENTS A "MOCKERY OF LITHUANIAN LAW." ANOTHER MP (FROM THE NATIONAL DEMOCRATIC PARTY) ADDED THE AMENDMENTS SHOULD BE SEEN AS AN OUTCOME OF POLITICAL PRESSURE, PUT BY FOREIGN STATES AND PUBLIC ORGANIZATIONS ON LITHUANIA. A CONSERVATIVE MEMBER OF THE MAJORITY CLAIMED THE AFOREMENTIONED AMENDMENTS LEGALIZED TRIAL IN ABSENTIA, NOT PRACTICED BY EUROPEAN STATES. 4. THE AMENDMENTS WERE PASSED BY 54 VOTES TO SIX WITH SEVEN ABSTENTIONS. THE CONSERVATIVE MAJORITY BACKED THE VOTE WITH THE CENTRE UNION PARTY LEADING THE OPPOSITION. THE AMENDMENTS TO THE CRIMINAL CODE WILL COME INTO FORCE AFTER THE COUNTRY'S PRESIDENT SIGNS THEM. 5. COMMENT: WHILE THE PASSING OF THESE AMENDMENTS IS A WELCOME STEP TOWARD TRYING LILEIKIS AND OTHER ACCUSED WAR CRIMINALS (WHO CLAIM POOR HEALTH), THERE REMAINS A QUESTION OF WHETHER THE POLITICAL WILL TO DO SO WILL PREVAIL. WITH MUNICIPAL AND PARLIAMENTARY ELECTIONS SLATED TO CHANGE THE POLITICAL LANDSCAPE LATER THIS YEAR, EMBASSY IS ANTICIPATING INCREASINGLY LESS INTEREST IN CARRYING THROUGH ON POLITICALLY UNPOPULAR WAR CRIMES TRIALS. SPAKAUSKAS 2 From: Embassy of Lithuania To: Richard B. Norland Date: 2000.02.15 Time: 22:11:16 Page 1 of 1 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. NEWS RELEASE Contact: Rolandas Kacinskas February 15, 2000 Phone: (202) 234-5860 X 21 LITHUANIA PASSED LEGAL AMENDMENTS ON WAR CRIMES TRIALS VILNIUS-WASHINGTON, DC - On February 15, the Lithuanian Parliament passed a legal amendment to the code of criminal procedure that will allow the resumption of genocide trials by allowing seriously ill defendants to monitor hearings by video outside the court, eliminating the need for their physical presence at trials. If a person charged with genocide "cannot for reasons of his physical condition, according to the findings of experts, be present at the place of the hearing, the defendant shall be provided technical facilities at the place where he is staying to directly take part in the hearing by giving evidence to the court, putting questions to other participants of the hearing and taking part in other proceedings", the amendment states. The court may also decide to convene at the defendant's location if this is not inconsistent with the findings of the medical experts. The amendment will apply in cases of genocide, war crimes and crimes against humanity. 2622 16TH STREET, NW - WASHINGTON, D.C. 20009 - PHONE (202) 234-5860 FAX (202) 328-0466 Norland, Richard B. (EUR) From: WHSR Sent: Thursday, February 10, 2000 6:43 PM To: Bolan, Christopher J. (VP); Cables; Davidson, Leslie K. (VP); Ficklin, John W. (RECORDS); Millison, Cathy L. (EXSEC); Norland, Richard B. (EUR); Wasserman, Elaine P. (EXSEC); Yee, Hoyt B. (EUR) Subject: NATIONAL DAY MESSAGE FOR LITHUANIA ActionAddees: AMEMBASSY VILNIUS PRIORITY 0089 Classification: UNCLASSIFIED DateTime: 102328Z FEB 00 Distribution: SIT: BOLAN NSC DAVIDSON Ficklin Millison NORLAND Wasserman YEE PRT: JACOBSON Identifier: M4289103 InfoAddees: IIII Line1: PAAUZYUW RUEHCAA4952 0412329-UUUU--RHEHAAX. Line2: ZNR UUUUU ZZH Line3: P 102328Z FEB 00 Line4: FM SECSTATE WASHDC Originator: SECSTATE WASHDC Precedence: PRIORITY Profiles: BOLANC CABLES DAVIDSOL FICKLINJ MILLISOC NORLANDR WASSERME YEEH StationRoutingIndicator: RUEHC StationSerialNumber: 4952 TimeOfReceipt: 02/10/2000 18:42:59 ET UNCLAS STATE 024952 E.O. 12958: DECL: N/A TAGS: OPDC, LH SUBJECT: NATIONAL DAY MESSAGE FOR LITHUANIA 1. PLEASE DELIVER FOLLOWING MESSAGE FROM PRESIDENT CLINTON TO PRESIDENT ADAMKUS AT APPROPRIATE TIME PRIOR TO FEBRUARY 16. THE WHITE HOUSE DOES NOT PLAN TO RELEASE TEXT OF MESSAGE BUT HAS NO OBJECTION IF GOVERNMENT OF LITHUANIA WISHES TO DO SO. THERE WILL BE NO SIGNED ORIGINAL. 2. BEGIN TEXT: DEAR MR. PRESIDENT: ON BEHALF OF THE AMERICAN PEOPLE, I CONGRATULATE YOU AND THE PEOPLE OF LITHUANIA ON THE EIGHTY-SECOND ANNIVERSARY OF YOUR DECLARATION OF INDEPENDENCE ON FEBRUARY 16. THROUGHOUT THE PAST CENTURY, THE UNITED STATES HAS REMAINED BY LITHUANIA'S SIDE AS A CLOSE FRIEND. UNDER THE U.S.- BALTIC CHARTER AND YOUR GOVERNMENT'S LEADERSHIP, OUR RELATIONSHIP WILL CONTINUE TO GROW STRONGER. WE APPRECIATE LITHUANIA'S ONGOING CONTRIBUTIONS TO REGIONAL SECURITY AND ITS EXEMPLARY "GOOD NEIGHBOR" POLICIES. WE ENCOURAGE ALL LITHUANIANS TO CONTINUE PERSEVERING ON THE PATH TO PROSPERITY. AS WE COMMEMORATE THE TENTH ANNIVERSARY OF THE RESTORATION OF LITHUANIA'S INDEPENDENCE, LET ME REITERATE THAT 1 LITHUANIA'S SECURITY, STABILITY, AND PROSPERITY ARE INEXTRICABLY LINKED TO THE SUCCESS OF EUROPE IN THE NEW MILLENNIUM. WE REMAIN COMMITTED TO SUPPORTING LITHUANIA AS IT WORKS TOWARD FOR MEMBERSHIP IN ALL EURO-ATLANTIC INSTITUTIONS, INCLUDING NATO. SINCERELY, WILLIAM J. CLINTON END TEXT. ALBRIGHT 2 ADAMKUS VISIT? ? Norland, Richard B. (EUR) From: Norland, Richard B. (EUR) Sent: Monday, February 14, 2000 10:15 AM To: @BLINKEN Subject: Lithuanian President [CONFIDENTIAL] Tony, per our discussion: Lithuanian President Valdas Adamkus wrote POTUS on November 30 to say that he was gratified that the President, in Istanbul, "accepted the possibility to visit Lithuania next year." Adamkus repeated his invitation "to pay an official visit to Lithuania," the date for which "can be fixed through diplomatic channels." In congratulating Lithuania on EU accession talks, POTUS on Dec. 22 wrote Adamkus: "Thank you also for your invitation to visit Lithuania. I hope we will be able to see each other again before too long." Amb. Stasys Sakalauskas contacted me last week to ask for an update on the possibility of scheduling a visit to Lithuania, or a meeting with Adamkus at the White House. Such a visit/meeting would be in keeping with the notion of a POTUS "victory lap" to mark 10 years since Baltic independence was restored, and would reaffirm U.S. commitment to Baltic sovereignty and participation in Euro-Atlantic institutions. DECLASSIFIED E.O. 13526 White House Guidelines, September 11, 2006 By KBHNARA, Date 7-18-2013 2011-1038-F 1 01/28 '00 07:03 ID:LANIERFAX3800 FAX: PAGE 1 Enter into System. LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VASINGTONAS WASHINGTON, D.C. in 2896 November 30, 1999 Mr. Richard Norland, Director Central & Eastern European Affairs National Security Council Washington, DC Dear Mr. Norland: It is my pleasure to forward to you a copy of the letter from H. E. Valdas Adamkus, President of Lithuania to be delivered to H.E. William J. Clinton, President of the United States. The original letter will follow in the mail. Sincerely, Hahalawdy Stasys Sakalauskas Ambassador Enclosure: 2 SS/ah 01/28 '00 07:03 ID:LANIERFAX3800 FAX: PAGE 2 Enter into system. Inform Republitive Translation Vilnius, November , 1999 Dear Mr. President, I remember with pleasure our recent meeting during the Istanbul OSCE Sum- mit. It is gratifying that you have accepted the possibility to visit Lithuania next year. I avail myself of this opportunity to repeatedly invite you, Mr. President, to pay an official visit to Lithuania. The date of the visit can be fixed through diplomatic channels. Please accept the assurances of my highest consideration. /s/ Valdas Adamkus His Excellency William J. Clinton President of the United States of America 226422 Z 370 YVY 14:31 86. 29911 33 2 CONFIDENTIAL RECORD ID: 9908781 NSC/RMO PROFILE RECEIVED: 02 DEC 99 15 TO: PRESIDENT FROM: ADAMKUS, VALDAS DOC DATE: 29 NOV 99 SOURCE REF: KEYWORDS: LITHUANIA HS AP PERSONS: SUBJECT: INVITES POTUS TO LITHUANIA ACTION: NO FURTHER ACTION REQUIRED DUE DATE: 14 DEC 99 STATUS: C STAFF OFFICER: NORLAND LOGREF: FILES: PA NSCP: CODES: DOCUMENT DISTRIBUTION FOR ACTION FOR CONCURRENCE FOR INFO NORLAND NSC CHRON COMMENTS: DISPATCHED BY DATE BY HAND W/ATTCH OPENED BY: NSDMK CLOSED BY: NSGP DOC 1 OF 1 DECLASSIFIED CONFIDENTIAL E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-18-2013 2011- 1038.F CONFIDENTIAL RECORD ID: 9908781 ACTION DATA SUMMARY REPORT DOC ACTION OFFICER CAO ASSIGNED ACTION REQUIRED 001 NORLAND Z 99120215 PREPARE MEMO FOR BERGER 001 X 99122807 NO FURTHER ACTION REQUIRED DISPATCH DATA SUMMARY REPORT DOC DATE DISPATCH FOR ACTION DISPATCH FOR INFO 001 991129 STATE CONFIDENTIAL Norland, Richard B. (EUR) From: WHSR Sent: Wednesday, December 22, 1999 5:34 PM To: Blinken, Antony J. (EUR); Cables; Crawford, Bernard T. (EUR/INTERN); Davidson, Leslie K. (VP); Ficklin, John W. (RECORDS); Kass, Nicholas S. (EUR); Millison, Cathy L. (EXSEC); Munter, Cameron P. (EUR); Norland, Richard B. (EUR); vonLipsey, Roderick K. (SEE); Wasserman, Elaine P. (EXSEC); Yee, Hoyt B. (EUR) Subject: POTUS LETTER FOR PRESIDENT ADAMKUS ON EUR ACCESSION ActionAddees: RUEHVL/AMEMBASSY VILNIUS IMMEDIATE 9742 Classification: UNCLASSIFIED DateTime: 222230Z DEC 99 Distribution: SIT: BLINKEN NSC CRAWFORD DAVIDSON Ficklin KASS Millison MUNTER NORLAND VONLIPSEY Wasserman YEE Identifier: M4215932 InfoAddees: RUEHBS/USEU BRUSSELS IMMEDIATE Line1: OAAUZYUW RUEHCAA1066 3562230-UUUU--RHEHAAX. Line2: ZNR UUUUU ZZH Line3: O 222230Z DEC 99 Line4: FM SECSTATE WASHDC Originator: SECSTATE WASHDC Precedence: IMMEDIATE Profiles: BLINKENA CABLES CRAWFORB DAVIDSOL FICKLINJ KASSN MILLISOC MUNTERC NORLANDR VONLIPSR WASSERME YEEH StationRoutingIndicator: RUEHC StationSerialNumber: 1066 TimeOfReceipt: 12/22/1999 17:33:55 ET UNCLAS STATE 241066 E.O. 12958: N/A TAGS: PREL, ECIN, EUN SUBJECT: POTUS LETTER FOR PRESIDENT ADAMKUS ON EUR ACCESSION 1. (U) POST IS REQUESTED TO DELIVER THE FOLLOWING LETTER FROM THE PRESIDENT TO PRESIDENT ADAMKUS AT THE EARLIEST OPPORTUNITY. THE WHITE HOUSE DOES NOT PLAN TO RELEASE TEXT OF MESSAGE BUT HAS NO OBJECTION IF THE GOVERNMENT OF LITHUANIA WISHES TO DO SO. NO SIGNED ORIGINAL WILL FOLLOW. 2. (U) BEGIN TEXT: DEAR MR. PRESIDENT: CONGRATULATIONS ON LITHUANIA'S INVITATION TO BEGIN ACCESSION NEGOTIATIONS WITH THE EUROPEAN UNION. THE EU DECISION TO BEGIN MEMBERSHIP TALKS WITH LITHUANIA IS A TRIBUTE TO THE PROGRESS YOU HAVE MADE OVER THE PRECEDING DECADE. LITHUANIA'S ADMISSION TO THE EU WILL GO A LONG WAY TO ADVANCE DEMOCRACY, STABILITY, AND GREATER PROSPERITY FOR ALL THE CITIZENS OF EUROPE. IT WAS GOOD TO SEE YOU IN ISTANBUL LAST MONTH. PLEASE LET 1 ME TAKE THIS OPPORTUNITY TO REITERATE MY APPRECIATION FOR YOUR SUPPORT FOR AMERICAN INVESTMENT IN LITHUANIA. CLOSER ECONOMIC AND COMMERCIAL COOPERATION IS AN IMPORTANT ASPECT OF OUR SHARED GOALS. I AM CERTAIN, WITH YOUR SUPPORT, COOPERATION WILL CONTINUE TO GROW. THANK YOU ALSO FOR YOUR INVITATION TO VISIT LITHUANIA. I HOPE WE WILL BE ABLE TO SEE EACH OTHER AGAIN BEFORE TOO LONG. SINCERELY, WILLIAM J. CLINTON END TEXT. PICKERING 2 CONFIDENTIAL RECORD ID: 9908781 NSC/RMO PROFILE RECEIVED: 02 DEC 99 15 TO: PRESIDENT FROM: ADAMKUS, VALDAS DOC DATE: 29 NOV 99 SOURCE REF: KEYWORDS: LITHUANIA HS AP PERSONS: SUBJECT: INVITES POTUS TO LITHUANIA ACTION: PREPARE MEMO FOR BERGER DUE DATE: 14 DEC 99 STATUS: S STAFF OFFICER: NORLAND LOGREF: FILES: PA NSCP: CODES: DOCUMENT DISTRIBUTION FOR ACTION FOR CONCURRENCE FOR INFO NORLAND BERGER BLINKEN BRADTKE HILLIARD PASCUAL RUDMAN STATE STEINBERG COMMENTS: NFAR - POTUS letter of Dec.22, 1999 responds t President Adamlus' invitation DISPATCHED BY DATE BY HAND W/ATTCH OPENED BY: NSDMK CLOSED BY: DOC 1 OF 1 DECLASSIFIED CONFIDENTIAL E.O. 13526 White House Guidelines, September 11, 2006 By KBH NARA, Date 7-18-2013 2011-1038-F FAX: PAGE 2 Enter into system. 8781 Republities Translation Vilnius, November , 1999 Dear Mr. President, I remember with pleasure our recent meeting during the Istanbul OSCE Sum- mit. It is gratifying that you have accepted the possibility to visit Lithuania next year. I avail myself of this opportunity to repeatedly invite you, Mr. President, to pay an official visit to Lithuania. The date of the visit can be fixed through diplomatic channels. Please accept the assurances of my highest consideration. /s/ Valdas Adamkus His Excellency William J. Clinton President of the United States of America 222442 Z 370 PAY 14:31 66. 29/11 00 ID:LANTERFAX3800 FAX: PAGE 2 Enter into system. 8781 Intern Republition Translation Vilnius, November , 1999 Dear Mr. President, I remember with pleasure our recent meeting during the Istanbul OSCE Sum- mit. It is gratifying that you have accepted the possibility to visit Lithuania next year. I avail myself of this opportunity to repeatedly invite you, Mr. President, to pay an official visit to Lithuania. The date of the visit can be fixed through diplomatic channels. Please accept the assurances of my highest consideration. /s/ Valdas Adamkus His Excellency William J. Clinton President of the United States of America 225422 Z 370 FAX 14:31 66. 29/11 33 N 01/28 '00 07:03 ID: :LANIERFAX3800 FAX: PAGE 1 Enter ints System. LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VASINGTONAS WASHINGTON, D.C. in 2896 November 30, 1999 Mr. Richard Norland, Director Central & Eastern European Affairs National Security Council Washington, DC Dear Mr. Norland: It is my pleasure to forward to you a copy of the letter from H. E. Valdas Adamkus, President of Lithuania to be delivered to H.E. William J. Clinton, President of the United States. The original letter will follow in the mail. Sincerely, Mahalamshy Stasys Sakalauskas DEC 215:26 Ambassador Enclosure: 2 SS/ah From: Embassy of Lithuania To: richard B. Norland Date: 2000.02.09 Time: 18:14:48 Page 1 of 1 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. NEWS RELEASE Contact: Rolandas Kacinskas February 9, 2000 Phone: (202) 234-5860 X 21 FIVE MAJOR LITHUANIAN PARTIES SIGNED JOINT COMMUNIQUÉ ON COUNTRY'S NATO INTEGRATION VILNIUS - On 28 January 2000, on the initiative of the Prime Minister, the five largest Lithuanian parties, holding most of the seats in the current Parliament, have signed a declaration to "spare no effort" in the country's NATO integration. Five major parties expressed their determination to steadfastly aspire for Lithuania to be invited to accede to the North Atlantic Treaty Organization in the next phase of enlargement. In near future, the parties shall prepare a statement noting that in terms of European and Euro-Atlantic integration, Lithuania is entering a particularly significant stage, i.e. the practical realization of the objectives set by the state, which will serve as a major contribution towards the modernization of the economy of Lithuania, enhancement of its people's will-being, and safeguarding of their security. 2622 16TH STREET, NW - WASHINGTON, D.C. 20009 - PHONE (202) 234-5860 FAX (202) 328-0466 Joseph Sala The ANN Group Nancy plexplain 1221 Maryland Ave., N.E. Apt. B-1 Washington, D.C. 20002 I cait "chir" :- N. meetips Iselend for Thx. Dick. week. 202-543-8420 prements done Mr.Dick Norland National Security Council Washington, D.C. Mr.Norland: Mr. Rolandas Paksas, former Prime Minister of Lithuania, will be in Washington on a private visit on February 8-9. He currently serves as the Representative of Lithuanian President Valdas Adamkus for Special Projects related to strategic energy. Mr. Paksas resigned as Prime Minister on October 27 in protest over the decision by the Cabinet to approve the purchase of a 51% share in the Mazheikiu Nafta oil refinery by the Tulsa-based firm Williams Companies. His Minister of Economics and Minister of Finance resigned as well. Mr. Paksas would like to meet with you to discuss the "Williams case," as well as NATO expansion and Lithuanian integration into the EU A meeting with he Department of State's Bureau of European Affairs is currently being arranged by Andrew Silski, Desk Officer for Lithuania. Mr. Paksas will adjust his schedule to make himself available at a time that is convenient to you. If a meeting is possible, would you please contact me at the telephone number listed above. Your consideration is appreciated. Sincerely, Joseph Sala Norland, Richard B. (EUR) From: WHSR Sent: Tuesday, February 01, 2000 2:39 AM To: Black, Steven K. (VP); Brody, Richard J. (VP); Brzezinski, Mark F. (RUE); Cables; Davidson, Leslie K. (VP); Duncan, John D. (INTECON/DOS); Elkind, Jonathan H. (RUE); Lee, Malcolm R. (NEC); Medish, Mark C. (RUE); Roberts, Michael W. (VP); Saunders, Richard M. (VP); Tedstrom, John E. (RUE); Weiss, Andrew S. (RUE) Subject: LUKOIL VS. WILLIAMS: IDENTIFYING LEVERAGE ActionAddees: RUEHC/SECSTATE WASHDC IMMEDIATE 6641 Classification: CONFIDENTIAL Date Time: 010702Z FEB 00 Distribution: SIT: BLACK BRODY BRZEZINSKI NSC DAVIDSON DUNCAN ELKIND LEE MEDISH ROBERTS SAUNDERS TEDSTROM WEISS PRT: FUERTH Identifier: M4270473 InfoAddees: RUEHVL/AMEMBASSY VILNIUS 1855 RHEBAAA/DEPT OF ENERGY WASHDC DECLASSIFIED RUEATRS/DEPT OF TREASURY WASHDC PER E.O. 13526 RUCPDOC/USDOC WASHDC RHEHAAA/WHITE HOUSE WASHDC 2014-0384-m (1.64) RUEHRA/AMEMBASSY RIGA 4138 RUEHTL/AMEMBASSY TALLINN 1519 KBH 6/23/2023 Line1: OAACZYUW RUEHMOA2454 0320702-CCCC--RHEHAAX. Line2: ZNY CCCCC ZZH Line3: O 010702Z FEB 00 Line4: FM AMEMBASSY MOSCOW Originator: AMEMBASSY MOSCOW Precedence: IMMEDIATE Profiles: BLACKS BRODYR BRZEZINM CABLES DAVIDSOL DUNCANJ ELKINDJ LEEM MEDISHM ROBERTSM SAUNDERR TEDSTROJ WEISSA StationRoutinglndicator: RUEHMO StationSerialNumber: 2454 TimeOfReceipt: 02/01/2000 02:37:50 ET CONFIDENTIAL MOSCOW 002454 STATE FOR S/NIS, EUR/RUS, EB/ESC WHITE HOUSE FOR OVP/FUERTH, NSC/MEDISH USDOC FOR 1003/ITA/JKALICKI,6340/JWILSON USDOC ALSO FOR 4231/JBROUGHER,3133/USFCS/OIO/CPOZA DOE FOR GOLDWYN/GEE/HUGHES/CASTELLI/EKIMOFF/COBURN E.O. 12958: DECL 01/31/10 TAGS: EPET, ENRG, RS, LH SUBJECT: LUKOIL VS. WILLIAMS: IDENTIFYING LEVERAGE REFS: A) VILNIUS 263 B) MOSCOW 524 C) 99 MOSCOW 31970 1. (U) CLASSIFIED BY MINISTER COUNSELOR FOR ECONOMIC AFFAIRS MICHAEL MATERA, REASONS 1.5 (B) AND (D). 2. (C) SUMMARY. THE LUKOIL-WILLIAMS MEETING REPORTED REF A Is WHOLLY IN CHARACTER WITH LUKOIL'S HARD-BALL NEGOTIATING STYLE. REGARDLESS OF LUKOIL'S MOTIVES, THE IMMEDIATE ISSUE 1 IS HOW TO HELP OVERCOME THE CURRENT IMPASSE. THE LEVERAGE AVAILABLE TO THE U.S. GOVERNMENT IS MODEST, AND AT THE END OF THE DAY, ENLIGHTENED SELF INTEREST WILL DICTATE THE TERMS OF ANY AGREEMENT BETWEEN THE TWO COMPANIES. GIVEN THE IMPORTANCE OF CEO-TO-CEO RELATIONS IN RUSSIAN BUSINESS CULTURE, IT WOULD BE BENEFICIAL IF WILLIAMS' BUMGARTNER WERE ABLE, IF POSSIBLE, TO KEEP TO THE SCHEDULED FEBRUARY 7 MEETING WITH LUKOIL PRESIDENT ALEKPEROV. THOUGH REITERATION OF U.S. INTEREST IN WILLIAMS' CASE MAY HELP FRAME GOR PERCEPTIONS, ULTIMATELY, THE GOR MUST BE PERSUADED THAT HIGH-LEVEL INTERVENTION IS IN RUSSIA'S INTEREST IF RESOLUTION IS TO COME FROM THAT QUARTER. WILLIAMS IS IN THE BEST POSITION TO MAKE THIS ARGUMENT TO THE GOR. WILLIAMS WILL NEED TO COME TO TERMS WITH LUKOIL DIRECTLY, RECOGNIZING THAT CONSTANT "RENEGOTIATION" IS LIKELY. END SUMMARY. HARDBALL REDUX: CEO-CEO CONTACT KEY 3. (C) THE RETURN-TO-SQUARE-ONE POSITIONS ADVANCED BY LUKOIL NEGOTIATORS DESCRIBED IN REF A WOULD BE FAMILIAR TO MANY WESTERN VETERANS OF NEGOTIATIONS WITH RUSSIAN BUSINESS PARTNERS. LIKE MANY OTHER RUSSIAN COMPANIES, LUKOIL HAS IN OTHER NEGOTIATIONS IN THE PAST ADVANCED BLUSTERY, MAXIMALIST POSITIONS LONG AFTER THEY WERE BELIEVED TO HAVE BEEN DEAD AND BURIED. WHILE BUOYANT WORLD OIL PRICES MAY WELL HAVE CONTRIBUTED TO LUKOIL "FEELING ITS OATS," THE PATTERN OF THE COMPANY'S NEGOTIATIONS WITH WILLIAMS ALSO SUGGESTS A TACTICAL MOTIVE. THAT SAID, WE BELIEVE THAT IT WOULD BE IN WILLIAMS' INTEREST TO PURSUE THE PROPOSED FEBRUARY 7 MEETING WITH LUKOIL PRESIDENT ALEKPEROV. ONE OF THE UNIVERSAL FEATURES OF SUCCESSFUL RELATIONSHIPS BETWEEN U.S. COMPANIES AND RUSSIAN PARTNERS IS A WELL-ESTABLISHED CEO-TO-CEO RELATIONSHIP. THIS IS ESPECIALLY THE CASE WITH LUKOIL AND ALEKPEROV. IF GROUND RULES FOR THE MEETING ACCEPTABLE TO WILLIAMS CAN BE AGREED UPON (SETTING ASIDE THE DRAFT MOU, PERHAPS) SUCH A RELATIONSHIP-BUILDING OPPORTUNITY SHOULD NOT BE MISSED. GOR LEVERAGE COULD HELP 4. (C) EMBASSY MOSCOWS PAST EXPERIENCE WITH SIMILAR DISPUTES, INCLUDING A SPAT BETWEEN A U.S. OIL MAJOR AND LUKOIL THAT DRAGGED ON FOR ALMOST A YEAR, INDICATES THAT DIRECT LOBBYING OF HIGH LEVELS OF THE GOR BY THE U.S. COMPANY INVOLVED OFFERS THE BEST PROSPECT OF SUCCESS. WHILE GOVERNMENT-TO-GOVERNMENT CONTACT CAN HELP TO FRAME THE DEBATE, THE U.S. COMPANY INVOLVED IS IN THE BEST POSITION TO ARGUE ITS CASE EFFECTIVELY. SETTING ASIDE THE COMMERCIAL COMPONENT OF THE RELATIONSHIP, THE OPERATIVE ISSUE FOR WILLIAMS IS TO IDENTIFY RUSSIAN INTERESTS AT STAKE THAT WOULD MOTIVATE, OR EVEN COMPEL, THE GOR TO INTERVENE AS PEACEMAKER. OUR EXPERIENCE IN ANALOGOUS DISPUTES SUGGESTS THAT THE GOR MUST BE PERSUADED OF AT LEAST TWO THINGS: FIRST, THAT IT IS IN RUSSIA'S INTEREST TO RESOLVE THE DISPUTE BETWEEN LUKOIL AND WILLIAMS OVER MAZEIKIAI, AND SECOND, THAT DECISIVE INTERVENTION AT EXTREMELY HIGH LEVEL (READ PRIME MINISTER) IS CALLED FOR. APPEALS TO THE MINISTRY OF FUELS AND ENERGY ARE WASTED EFFORT. BUT WHAT RUSSIAN INTERESTS AT STAKE? 5. (C) GIVEN CURRENT HIGH WORLD OIL PRICES AND LUKOIL'S ABILITY TO EXPORT CRUDE AT WILL VIA OTHER EXPORT TERMINALS, IT IS NOT IMMEDIATELY APPARENT WHAT RUSSIAN NATIONAL 2 INTERESTS WOULD BE SERVED BY THE GOR LEANING ON LUKOIL TO MAKE PEACE WITH WILLIAMS. UNLIKE IN OTHER CASES WHERE THE GOR DID INTERVENE AT PM LEVEL, SUCH AS IN THE CASE OF THE CASPIAN PIPELINE CONSORTIUM, WHERE THERE WAS A GOR EQUITY STAKE AND GEOPOLITICAL INTEREST IN OIL TRANSPORTATION VIA RUSSIA, RUSSIA'S INTEREST IN CRUDE OIL EXPORTS VIA LITHUANIA AND THE SUCCESS OF WILLIAMS' MAZEIKIAI INVESTMENT ARE LESS WELL DEFINED. APPEALS TO THE OBVIOUS RUSSIAN NATIONAL INTEREST IN PROMOTING ECONOMIC INTEGRATION WITH THE WEST VIA COOPERATION WITH LITHUANIA ARE ABSTRACT AND AFFECTED BY THE CHARGED RELATIONSHIP BETWEEN THE TWO COUNTRIES. SOME ROLE FOR LUKOIL THAT IS ACCEPTABLE TO WILLIAMS COULD CHANGE THIS PICTURE. WILLIAMS AND THE GOR 6. (C) AGAINST THIS BACKGROUND, WE BELIEVE THAT IT IS INCUMBENT UPON WILLIAMS TO ENGAGE THE GOR AT THE HIGHEST LEVEL TO EXPLORE AREAS OF MUTUAL INTEREST RELATING TO THE MAZEIKIAI DEAL. WHETHER BY DESIGN OR DEFAULT, IN THE RUSSIAN VIEW, WILLIAMS HAS NOT YET ADEQUATELY ADDRESSED THE SPECIFIC INTERESTS OF MAZEIKIAI'S PAST PRINCIPAL SUPPLIER, OR OF LITHUANIA'S POWERFUL NEIGHBOR IN GENERAL. REGARDLESS OF WILLIAMS' FRUSTRATION WITH THE CURRENT SITUATION, REACHING A MODUS VIVENDI WITH RUSSIA MAY WELL NUMBER AMONG THE PRECONDITIONS FOR WILLIAMS' SUCCESS IN LITHUANIA. DESPITE CLAIMS THAT IT COULD OPERATE ECONOMICALLY USING NORTH SEA OR OTHER CRUDE, WILLIAMS' REPEAT RE-ENGAGEMENT OF VARIOUS POTENTIAL RUSSIAN SUPPLIERS AND ENTREATIES TO THE U.S. TO USE LEVERAGE ON LUKOIL TO MAKE TERMS SIGNALS TO RUSSIAN INTERLOCUTORS, AT LEAST, THAT WILLIAMS NEEDS THEM. DESPITE OUR REQUESTS, THE ABSENCE OF CONTACT WITH WILLIAMS EXECUTIVES DURING THEIR VISITS TO MOSCOW HAS MADE IT DIFFICULT FOR US TO IMPRESS UPON THEM THE NEED TO ESTABLISH CONTACTS AT THE HIGHEST LEVELS OF THE GOR. WILLIAMS MAY NOT BE OPERATING IN RUSSIA, BUT SUCH CONTACTS CAN BE DECISIVE. THE U.S. ROLE AND THE PRACTICALLY OBTAINABLE 7. (C) U.S. LEVERAGE OVER THE GOR TO HELP PERSUADE LUKOIL TO AGREE TO TERMS ACCEPTABLE TO WILLIAMS IS LIMITED. REITERATION OF OUR HOPE THAT THE GOR WILL USE ITS GOOD OFFICES HAS RESULTED IN GOR REFERENCES TO ONGOING COMMERCIAL NEGOTIATIONS BETWEEN TWO COMPANIES WHICH THEY MUST RESOLVE THEMSELVES. BEYOND REPEATING THE MESSAGE THAT IT IS IN EVERYONE'S INTEREST TO RESOLVE THE IMPASSE BETWEEN LUKOIL AND WILLIAMS AND THEREBY SIGNALING OUR SUSTAINED INTEREST IN THE CASE, OUR OPTIONS ARE CIRCUMSCRIBED. WHILE WE CAN RAISE OBJECTIONS TO ABUSE BY LUKOIL OF ITS COORDINATOR POSITION FOR LITHUANIA, IT WOULD BE INADVISABLE FOR THE USG TO GO ON RECORD ENCOURAGING THE GOR TO EXPAND THE MARKET DISTORTING "COORDINATOR" PRACTICE, AS SOME HAVE SUGGESTED, AT THE SAME TIME THAT INTERNATIONAL FINANCIAL INSTITUTIONS ARE PRESSING RUSSIA TO IMPLEMENT FAIR AND TRANSPARENT PIPELINE ACCESS RULES. EXHORTING THE GOR TO ENSURE FREE AND FAIR ACCESS TO THE LITHUANIAN MARKET APPEARS TO BE A MORE CONSISTENT APPROACH, WITH ALBEIT, LIKELY MODEST IMPACT. PRESIDENTIAL ELECTIONS LOOM 8. (C) IN ANY EVENT, IT IS HIGHLY UNLIKELY THAT THE GOR WILL UNDERTAKE ANY MAJOR POLICY INITIATIVES PRIOR TO THE MARCH 26 PRESIDENTIAL ELECTION. LUKOIL'S RECENT PURCHASE OF A MAJOR NEWSPAPER PRINTING HOUSE REFLECTS THE IMPORTANT ROLE 3 THAT LUKOIL AND OTHER ENERGY COMPANIES PLAY IN FINANCING AND INFLUENCING ELECTORAL CAMPAIGNS AS WELL AS SHAPING THEIR AFTERMATH. REGARDLESS OF THE OUTCOME OF THE ELECTIONS, IT IS HARD TO IMAGINE THAT LUKOIL WOULD NOT REMAIN WELL- POSITIONED AND INFLUENTIAL. WHILE LUKOIL'S CONTINUED INFLUENCE WILL CERTAINLY HAVE IMPLICATIONS FOR WILLIAMS, THE TACTICAL ISSUE IS TO RECOGNIZE THAT LITTLE PROGRESS IS LIKELY UNTIL AFTER THE ELECTION AND FORMATION OF A NEW GOVERNMENT. WILLIAMS SHOULD USE THE TIME TO MAKE PROGRESS WHERE MOVEMENT IS POSSIBLE, SPECIFICALLY IN CEMENTING TOP- LEVEL RELATIONS WITH LUKOIL AND OTHER RUSSIAN OIL COMPANIES. COMMENT 9. (C) SEEN FROM MOSCOW, LUKOIL'S ANTICS REFLECT THE NO- HOLDS-BARRED APPROACH OF A RUSSIAN COMPANY THAT SEEMS TO BELIEVE THAT IT HAS NOTHING TO LOSE BY ASKING FOR THE STORE. IN THE ABSENCE OF IMMEDIATELY APPARENT REAL LEVERAGE, IT APPEARS THAT WILLIAMS HAS LITTLE CHOICE BUT TO PURSUE A TWO- TRACK APPROACH OF NEGOTIATING WITH LUKOIL AND EXPLORING AREAS OF COMMON INTEREST WITH THE GOR. U.S. IMPRECATIONS TO THE GOR TO HELP FOSTER GOOD RELATIONS BETWEEN THE COMPANIES APPEARS TO GENERATE LITTLE RESONANCE, THOUGH THE U.S. CAN CONTRIBUTE TO FRAMING THE DEBATE IN CONTACT WITH THE GOR. IN OUR VIEW, A SUCCESSFUL RELATIONSHIP BETWEEN WILLIAMS AND LUKOIL IS PREDICATED ON AT LEAST THREE COMPONENTS: CLOSE HIGH-LEVEL TIES BETWEEN LUKOIL AND WILLIAMS; HIGH-LEVEL ENGAGEMENT BY THE GOR IN SUPPORT OF A MAZEIKIAI DEAL IN RUSSIAN NATIONAL INTEREST AS EXPLAINED BY WILLIAMS, AND FINALLY, AN INCENTIVE FOR LUKOIL THAT IS ACCEPTABLE TO WILLIAMS. THOUGH INSPIRED, WILLIAMS' EFFORTS TO OUTMANEUVER LUKOIL BY FORGING ALLIANCES WITH OTHER RUSSIAN OIL COMPANIES SUCH AS YUKOS SEEM UNLIKELY TO SUCCEED, GIVEN LUKOIL'S DOMINANT ROLE IN THE RUSSIAN OIL SECTOR. END COMMENT. COLLINS 4 Norland, Richard B. (EUR) From: WHSR Sent: Friday, January 28, 2000 9:44 AM To: Black, Steven K. (VP); Brody, Richard J. (VP); Brzezinski, Mark F. (RUE); Cables; Davidson, Leslie K. (VP); Duncan, John D. (INTECON/DOS); Elkind, Jonathan H. (RUE); Lee, Malcolm R. (NEC); Medish, Mark C. (RUE); Tedstrom, John E. (RUE); Weiss, Andrew S. (RUE) Subject: RUSSIA'S LUKOIL BACKS AWAY FROM DEAL - WITH WILLIAMS CLASSIFIED BY AMBASSADOR KEITH SMITH, REASONS 1.5 B AND D ActionAddees: RUEHC/SECSTATE WASHDC 1289 Classification: CONFIDENTIAL Date Time: 281407Z JAN 00 Distribution: SIT: BLACK BRODY BRZEZINSKI NSC DAVIDSON DUNCAN ELKIND LEE MEDISH TEDSTROM WEISS Identifier: M4265779 InfoAddees: RUEHMO/AMEMBASSY MOSCOW 1461 RUEHRA/AMEMBASSY RIGA 1386 RUEHTL/AMEMBASSY TALLINN 5119 RUEATRS/DEPT OF TREASURY WASHDC DECLASSIFIED RUEHBS/USEU BRUSSELS PER E.O. 13526 Line1: RAACZYUW RUEHVLA0263 0281407-CCCC--RHEHAAX. Line2: ZNY CCCCC ZZH 2016-0384-M 2016-0384-M(1.65) (1.65) Line3: R 281407Z JAN 00 KBH 6/23/2023 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: ROUTINE Profiles: BLACKS BRODYR BRZEZINM CABLES DAVIDSOL DUNCANJ ELKINDJ LEEM MEDISHM TEDSTROJ WEISSA StationRoutinglndicator: RUEHVL StationSerialNumber: 0263 TimeOfReceipt: 01/28/2000 09:42:54 ET CONFIDENTIAL SECTION 01 OF 02 VILNIUS 000263 DEPT FOR DS TALBOTT, EUR FOR AS GROSSMAN, EB FOR DAS WAYNE TREASURY FOR DAVID WRIGHT E.O. 12958: DECL: 01/29/2010 TAGS: PREL, EPET, ENRG, EINV, LH SUBJECT: RUSSIA'S LUKOIL BACKS AWAY FROM DEAL - WITH WILLIAMS CLASSIFIED BY AMBASSADOR KEITH SMITH, REASONS 1.5 B AND D 1. (C) SUMMARY: LUKOIL AND WILLIAMS HAD A VERY UNPRODUCTIVE MEETING JANUARY 25-26 IN VIENNA. WILLIAMS HAD AGREED TO THE MEETING EXPECTING TO REACH A FINAL DEAL ON OIL SUPPLIES AND TO CONFIRM A FEBRUARY 7 DINNER BETWEEN LUKOIL PRESIDENT ALEKPEROV AND WILLIAMS PRESIDENT BUMGARNER. UNFORTUNATELY, WILLIAMS WAS GIVEN A DRAFT PROTOCOL BY LUKOIL THAT WOULD GIVE THE 1 RUSSIAN COMPANY EQUAL EQUITY AND MANAGEMENT HOLD IN THE LITHUANIAN OIL INDUSTRY, A POSITION THAT LUKOIL HAD PREVIOUSLY BACKED AWAY FROM. LUKOIL ALSO CONFIRMED THAT THEY INTENDED TO USE THEIR ROLE AS 'COORDINATOR' FOR ALL RUSSIAN OIL SHIPMENTS TO LITHUANIA TO PREVENT WILLIAMS FROM REACHING A LONG- TERM DEAL WITH OTHER RUSSIAN SUPPLIERS FOR ADEQUATE CRUDE DELIVERIES. LITHUANIA'S MINISTER OF ECONOMY ASKED FOR USG HELP IN SECURING MOSCOWS AGREEMENT TO ASSIGN SEVERAL COORDINATORS FOR OIL SHIPMENTS TO LITHUANIA, SUCH AS NOW EXISTS WITH LATVIA. BOTH WILLIAMS AND THE GOL ARE DISAPPOINTED THAT LUKOIL IS BACK TO HARD-BALL NEGOTIATING TACTICS. THE MAJOR ISSUE NOW IS WHETHER LUKOIL WILL CARRY THROUGH WITH ITS THREATS BY BLOCKING NEWLY CONTRACTED SUPPLIES FROM YUKOS. END SUMMARY 2. (C) THE EMBASSY WAS GIVEN AN EXTENSIVE DE-BRIEF ON THE VIENNA MEETING AND WAS PROVIDED A COPY OF LUKOIL'S DRAFT MEMORANDUM OF UNDERSTANDING (COPIES SENT TO EB AND EUR). THE MEMORANDUM APPEARS TO SIGNAL A RETURN TO LUKOIL'S 1997-98 POSITION THAT IT SHOULD BE GIVEN AT LEAST EQUAL EQUITY AND MANANGEMENT RIGHTS TO THOSE GRANTED TO WILLLIAMS, A POSITION STRONLY OPPOSED BY THE LITHUANIAN GOVERNMENT, WILLIAMS AND CHASE MANHATTAN, WHICH HOLDS MOST OF THE REFINERY'S DEBT. IN ADDITION, LUKOIL DEMANDED DEEP DISCOUNTS FOR MAZEIKIAI NAFTA'S REFINED PRODUCTS, IN SOME CASES THE PRICE PAID WOULD BE BELOW THE COST OF REFINING; SIMILAR TO THE KIND OF DEAL THEY HAD IN THE PAST. 3. (C) RANDY MAJORS OF WILLIAMS STATED THAT AT THE VIENNA MEETING LUKOIL ADMITTED THAT THEIR OWN EXPORT CAPACITY WAS FULLY COMMITTED TO OTHER COUNTRIES. NEVERTHELESS, THEY COULD MAKE SURE THAT SUFFICIENT SUPPLIES OF OIL WOULD BE FORTHCOMING FROM OTHER RUSSIAN COMPANIES IF WILLIAMS SIGNED THE MEMORANDUM OF UNDERSTANDING AND IF WILLIAMS AGREED TO A PAY LUKOIL A COMMISSION ON EACH BARREL SHIPPED TO LITHUANIA. WHEN WILLIAMS REJECTED THE TERMS OF THE MEMORANDUM AND ADDITIONAL ORAL DEMANDS, THE LUKOIL REPS REMARKED THAT THERE WAS NO BASIS FOR A FEBRUARY 7 MEETING BETWEEN THE TWO PRINCIPLES. 4. (C) ACCORDING TO WILLIAMS, THE VIENNA MEETING AND THE IDEA FOR A BUMGARNER/ALEKPEROV MEETING WAS THE BRAIN-CHILD OF FORMER MINISTER OF ECONOMICS MALDEIKAS, WHO RESIGNED IN PROTEST OVER THE WILLIAMS DEAL. (COMMENT: WITH MALDEIKIS TRYING TO ACT AS MIDDLE-MAN IT LOOKS MORE AND MORE LIKE HE WAS LOOKING OUT FOR LUKOIL'S, RATHER THAN LITHUANIA'S, INTERESTS DURING THE CONTENTIOUS NEGOTIATIONS. THERE HAVE BEEN RUMORS HERE THAT THE RUSSIANS 'HAVE SOMETHING ON HIM' AS A RESULT OF HIS 8 YEARS EDUCATIONAL BACKGROUND IN MOSCOW.) 5. (C) MAJORS REPORTS THAT LUKOIL'S OFFICIAL REP IN LITHUANIA, PALEICHIK, WAS VISIBLY UNCOMFORTABLE WITH THE RETURN BY HIS COMPANY TO A TOUGHER STANCE ON COOPERATION WITH WILLIAMS. PALEICHIK HAD EARLIER ASSURED WILLIAMS THAT THEY WERE CLOSE TO REACHING A LONG-TERM AGREEMENT WHICH WOULD PROTECT THE INTERESTS OF BOTH SIDES. 6. (C) AT A JANUARY 27 MEETING WITH ENERGY MINISTER EUGENIJUS MILAKNIS, ATTENDED BY THE AMBASSADOR, WILLIAMS AGREED TO GIVE THE MINISTER BY COB TODAY A MEMORANDUM WITH SEVERAL DRAFT SCENARIOS WHICH COVER POSSIBLE SALES OF EQUITY IN EXCHANGE FOR GUARANTEED 2 OIL SUPPLIES. THE MINISTER IS INTERESTED IN EXPLORING WITH YUKOS OR OTHER COMPANIES SOME WAY OF ESCAPING FROM LUKOIL'S 'STRANGLEHOLD' (HIS WORDS). THE MINISTER REMARKED THAT HE DID NOT HAVE MUCH CONFIDENCE CONFIDENTIAL SECTION 02 OF 02 VILNIUS 000263 DEPT FOR DS TALBOTT, EUR FOR AS GROSSMAN, EB FOR DAS WAYNE TREASURY FOR DAVID WRIGHT E.O. 12958: DECL: 01/29/2010 TAGS: PREL, EPET, ENRG, EINV, LH SUBJECT: RUSSIA'S LUKOIL BACKS AWAY FROM DEAL - WITH WILLIAMS IN HIS GOVERNMENT'S ABILITY TO CONVINCE MOSCOW TO ALLOW SEVERAL RUSSIAN COORDINATORS, SUCH AS EXISTS WITH LATVIA AND OTHER COUNTRIES. MILAKNIS ASKED THE AMBASSADOR WHETHER THE USG WOULD APPROACH RUSSIAN OFFICIALS FOR FLEXIBILITY' ON THE COORDINATOR ISSUE. THE AMBASSADOR PROMISED TO REPORT HIS REQUEST TO WASHINGTON. 7. (C) COMMENT: THE EMBASSY BELIEVES THAT WILLIAMS HAS BEEN TOO NAIVE IN ITS DEALINGS WITH LUKOIL. IT APPEARS TO US THAT HIGHER INTERNATIONAL OIL PRICES COMBINED WITH POLITICAL SIGNALS FROM PEOPLE LIKE FORMER MINISTER MALDEKIS HAVE ONLY ENCOURAGED LUKOIL TO HARDEN ITS POSITION. WILLIAMS HAS NAIVELY ASSUMED THAT LUKOIL WILL BE MOTIVATED BY SHORT AND MEDIUM-TERM ECONOMIC INTERESTS TO REACH A DEAL WITH THEM. LUKOIL IS MORE INTERESTED IN LONG-TERM CONTROL OF LITHUANIA'S' ENERGY SECTOR AND WILL WORK TO UNDERMINE WILLIAM'S ABILITY TO MAKE THIS EFFORT BY A U.S. STRATEGIC INVESTOR SUCCEED. END COMMENT. SMITH 3 From: Embassy of Lithuania To: richard B. Norland Date: 2000.01.24 Time: 19:12:10 Page 1 of 1 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. NEWS RELEASE Contact: Rolandas Kacinskas January 23, 2000 Phone: (202) 234-5860 X 21 LITHUANIAN FINANCE MINISTER WRAPS UP U.S. VISIT WASHINGTON, Jan 23 - Lithuanian Finance Minister Vytautas Dudenas completed his visit in the United States on 21st of January, where he discussed financial and economic issues with representatives of International Monetary Fund and World Bank, high officials of the US administration, representatives of various US companies. Minister V.Dudenas met U.S. Energy Department's Secretary Bill Richardson and discussed his visit in Lithuania scheduled for Feb. 2-3 where he will open joint US-Baltic conference on possibilities of investments into energy sector of the Baltic region. At the meeting with Lithuanian Minister Dudenas, Secretary Richardson noted that the decision on organization of the conference in Lithuania was prompted by considerable US investments in the state. During the visit, Minister Dudenas visited the state of Oklahoma where he met the leaders of 'Williams International' and the members of the U.S. Congress from the state of Oklahoma - Sen. Don Nickles, Congressmen Ernest Istook, Steve Largent, Wes Watkins and Tom Coburn. The directors of 'Williams International' energy group stressed that the investment in Lithuania's 'Mazeikiu Nafta' [Mazeikiai Oil] is the corporation's first energy project in Europe, adding that exceptional attention is being paid to ensure its success. The Minister also met representatives of other U.S. companies that already have or are planning on investing in Lithuania. In an attempt to improve the exchange of information between the Lithuanian government and American investors, American investors took a decision to establish Lithuanian-US Business Council in Washington. Lithuania's NATO aspirations topped the agenda of the meeting between the Lithuanian official and representatives of the U.S. Congress, administration and non-governmental organizations contributing to the formation of U.S. foreign policy. For the record: Minister Vytautas Dudenas is an American-Lithuanian and has 30-year experience in American banking. He withdrew to the West together with his parents in 1944. Vytautas Dudenas returned to Lithuania in 1991 and he was appointed to the current post as a Minister of Finance in November 1999. 2622 16TH STREET, NW - WASHINGTON, D.C. 20009 - PHONE (202) 234-5860 FAX (202) 328-0466 Norland, Richard B. (EUR) From: WHSR Sent: Wednesday, January 19, 2000 7:19 AM To: Blinken, Antony J. (EUR); Bolan, Christopher J. (VP); Crawford, Bernard T. (EUR/INTERN); Davidson, Leslie K. (VP); Kass, Nicholas S. (EUR); Munter, Cameron P. (EUR); Norland, Richard B. (EUR); vonLipsey, Roderick K. (SEE); Yee, Hoyt B. (EUR) Subject: LITHUANIA NAMES TOP DIPLOMAT AS HEAD EU NEGOTIATOR Classification: UNCLASSIFIED Distribution: SIT: BLINKEN BOLAN CRAWFORD DAVIDSON KASS MUNTER NORLAND VONLIPSEY YEE PRT: JACOBSON Identifier: R85a5ac0 Originator: Reuters Precedence: RUSH TimeOfReceipt: 01/19/2000 07:17:16 ET a0929 ^BC-LITHUANIA-EU-NEGOTIATIONS ^Lithuania names top diplomat as head EU negotiator VILNIUS, Jan 19 (Reuters) - The Lithuanian government on Wednesday named Deputy Foreign Minister Vygaudas Usackas to head its membership talks with the European Union (EU). He is an experienced diplomat, well-prepared to carry out the job entrusted to him," Foreign Minister Algirdas Saudargas told cabinet, which made the nomination. The final appointment, expected on Thursday, must be made by President Valdas Adamkus. Lithuania was invited to begin detailed accession talks in December. Usackas, 35, has worked in the foreign ministry since 1991, the year Lithuania regained independence from the Soviet Union. He was named political director in 1996, deputy foreign minister in July 1999 and is fluent in English, Russian and French. He will retain his position at the ministry. The full delegation is expected to include 35 officials, 29 of which will negotiate on separate entry chapters. RB-- 01/19/00 06:53:16 1 From: Embassy of Lithuania To: richard B. Norland Date: 2000.01.17 Time: 18:44:48 Page 1 of 2 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. PRESS RELEASE Contact: Rolandas Kacinskas January 17, 2000 Phone: (202) 234-5860 x 21 ON THE 2ND ANNIVERSARY OF THE U.S.-BALTIC (LITHUANIA, LATVIA, ESTONIA) CHARTER OF PARTNERSHIP The following is a Press Release of the Ministry of Foreign Affairs of the Republic of Lithuanian regarding the U.S.-Baltic Charter of Partnership: Two years ago, on January 16, 1998, the Presidents of the United States, Lithuania, Latvia and Estonia signed the US-Baltic Partnership Charter which began a new chapter in the cooperation of Lithuania and the two other Baltic states with the United States of America. The Charter has reaffirmed the common goal of creating conditions for the integration of Lithuania, Latvia and Estonia into European and Trans-Atlantic political, economic and security institutions, NATO included. The proof to the US commitment is expressed in the statement made by the US President Bill Clinton at the signing ceremony saying that "NATO's door is and will remain open for every partner nation, and America is determined to create the conditions under which Estonia, Latvia and Lithuania can one day walk through that door". The US-Baltic Partnership Charter demonstrates the United States attention to the Baltic region, and manifests the vision of indivisible and free Europe. The Charter stresses common will for the enhancement of bilateral relations, the Baltic integration, political stability, democracy and prosperity. The Partnership Commission created according to the provisions of the Charter has become an important forum for bilateral consultations. During the recent two years Lithuania and the United States have hold a number of regular consultations on economic and security issues. One of the key goals of the security consultations is the strengthening of Lithuanian national defense and Lithuania's preparation for the membership in the Alliance by creating modern, effective and NATO compatible armed forces. During the period of two years the US military experts have prepared a comprehensive study of the Lithuanian armed forces, which serves as the basis of the development strategy of the Lithuanian armed forces. The most vivid examples of the US assistance for the Lithuanian defense system have been the funding of the establishment of the regional airspace control center, assistance in setting up a joint Lithuanian-Polish battalion, handing over US excessive armament and military equipment, training of Lithuanian officers in the 2622 16ᵀᴴ STREET, NW - WASHINGTON, D.C. 20009 - PHONE (202) 234-5860 FAX (202) 328-0466 From: Embassy of Lithuania To: richard B. Norland Date: 2000.01.17 Time: 18:44:48 Page 2 of 2 2 0117-Baltic Partnership United States. A number of joint military exercises have been held in Lithuania with the participation of the military from the United States and regional neighbors. We hope that the Lithuanian efforts to enhance its national security as well as constant US political and practical support will promote Lithuania for NATO membership in the next stage of the enlargement. The United States has become an active economic and political partner in the Baltic region. It is the leader among foreign investors in Lithuania. This provides solid foundation for the economic development of the country and well being of its people. Growing trade turnover between the US and Lithuania and recent US investment into the Lithuanian energy sector reflect the implementation of the goals of the Charter in practice. In the spirit of the Charter, Lithuania will continue the preparation for its membership in NATO, active cooperation with the United States, Poland, the Baltic states and other neighboring countries, as well as will encourage mutually beneficial economic relations thus ensuring security and stability in the region. From: Embassy of Lithuania To: richard B. Norland Date: 2000.01.12 Time: 22:10:20 Page 1 of 2 Linking Russia with new Europe Vygaudas Usackas Vice Foreign Minister of Lithuania The Washington Times January 12, 2000 Over the past decade we have become accustomed to hearing of crises and trouble-spots in the post-Cold War Central and Eastern Europe. By contrast, the Baltic Sea region has been marked by economic growth and political stability. But such growth and stability cannot be taken for granted. Extensive multilateral efforts have taken us where we are today, and additional work will be required to fully exploit the Baltic Sea region's cooperative potential. I have in mind our neighbors, the Kaliningrad region of the Russian federation. Half the size of Maryland and with a population of less than a million, the Kaliningrad region is a Russian enclave located on the Baltic Sea coast, between Lithuania and Poland. From the Cold War era, Kaliningrad has inherited many problems. Its economy is lagging badly behind the general growth of the Baltic Sea region. There are severe social problems, an unstable legal environment, an unattractive investment climate, the inability to pay debts, corruption, crime, smuggling, excessive militarization, and a military complex which until recently dominated the region's industry. Following restoration of the Baltic states' independence, Kaliningrad found itself separated from the rest of Russia. Once Lithuania and Poland join the European Union and Lithuania joins NATO (Poland is already a member), what used to be considered a "garrison" will feel encircled and find itself surrounded by, but not taking part in, the European integration process. This undoubtedly presents a challenge for all concerned: Russia, Lithuania, Poland, the EU, and NATO. If the political, economic, and social situation in Kaliningrad deteriorates further, and solutions for its development are not found, the area may become a "black hole" and a source of instability for the entire Baltic Sea region. On the other hand, with additional efforts to guide the region toward European integration, Kaliningrad could become Russia's gate of opportunity for political and economic cooperation with an undivided Europe. From the Lithuanian perspective, the Kaliningrad region offers a unique opportunity for promoting Russia's modernization. It is in our interest to contribute to a smooth development of the region by engaging it in practical, cooperative projects, regional and cross-border activities, and people-to-people contacts. It would also help to mitigate the emerging fears of some Russians that the region might be "closed" or "isolated." Even in the early aftermath of the Cold War, the United States understood the importance of a regional approach to the Baltic Sea area. The U.S. strategy in the From: Embassy of Lithuania To: richard B. Norland Date: 2000.01.12 Time: 22:10:20 Page 2 of 2 region has been outlined in its Northern European Initiative (NEI), introduced in September 1997. It aims to help build a stronger, more unified, and more stable region which includes parts of Northwestern Russia, both economically and socially, through cooperation and cross-border ties. The United States could also encourage American investment in Kaliningrad. That would help ensure that the Baltic Sea region becomes a gathering of prosperous and eventually developing countries. Initiatives to downscale its military forces could also be designed. For its part, at the height of the 1998 Russian economic crisis, Lithuania provided humanitarian assistance to Kaliningrad's schools, kindergartens and its hospitals by sending truckloads of medicine and food. Since then, as this year's chair of the Council of the Baltic Sea States - a unique regional body comprised of the Nordic and Baltic States (Germany, Poland, and Russia) - Lithuania has initiated numerous practical, cooperative efforts with Kaliningrad in a number of areas, such as transport and energy, environmental protection education, health care, cross-border cooperation trade and investment, and combating crime. Growing investment in Kaliningrad, including that of Lithuania, has created new employment opportunities for the local population and serves as the best practical example of the modern approach to bilateral cooperation in the region. Within the European Union's Northern Dimension (ND) framework, the prime ministers of Lithuania and Russia have agreed to prepare a joint proposal for the EU, which would involve Kaliningrad in the ND regional programs. NATO also has many opportunities at its disposal to contribute to stability here. The alliance could well aid in the conversion of Kaliningrad's military industry, the disposal of chemical weapons, and the development of a civil emergency response plan. Since there are over 30,000 military personnel in Kaliningrad, more inclusive cooperation with the Russian military is necessary. Indeed, Poland as a new NATO member is already maintaining contacts with the Russian Baltic Fleet based in Kaliningrad, thereby contributing to increased confidence between NATO and Russia in the Baltic area. Overall, the situation of Kaliningrad should be seen not only as an obstacle but also as an opportunity and an asset. Kaliningrad presents itself as a test of Russia's "Europeanization" vis-a-vis the processes of Euro-Atlantic integration. Conversely, for the Kaliningrad region neighbors, as well as for the transatlantic community as a whole, it is a test of how to create an integrated Europe without creating new lines of division. Continuous attention to the issues concerning Kaliningrad is essential in international efforts to strengthen relationships with Russia and to further development of the Baltic Sea region in this period of transformation. Norland, Richard B. (EUR) From: WHSR Sent: Wednesday, January 12, 2000 5:15 AM To: Black, Steven K. (VP); Brody, Richard J. (VP); Brzezinski, Mark F. (RUE); Cables; Davidson, Leslie K. (VP); Elkind, Jonathan H. (RUE); Pascual, Carlos E. (RUE); Tedstrom, John E. (RUE); Weiss, Andrew S. (RUE) Subject: WILLIAMS VS. LUKOIL DISPUTE UPDATE SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY. ActionAddees: RUEHC/SECSTATE WASHDC IMMEDIATE 5262 RUEHVL/AMEMBASSY VILNIUS 1824 Classification: UNCLASSIFIED DateTime: 121013Z JAN 00 Distribution: SIT: BLACK BRODY BRZEZINSKI NSC DAVIDSON ELKIND PASCUAL TEDSTROM WEISS Identifier: M4241167 InfoAddees: RUEHRA/AMEMBASSY RIGA 4106 RUEHTL/AMEMBASSY TALLINN 1491 RHEBAAA/DEPT OF ENERGY WASHDC RUCPDOC/USDOC WASHDC Line1: OAAUZYUW RUEHMOA0524 0121013-UUUU--RHEHAAX. Line2: ZNR UUUUU ZZH Line3: O 121013Z JAN 00 Line4: FM AMEMBASSY MOSCOW Originator: AMEMBASSY MOSCOW Precedence: IMMEDIATE Profiles: BLACKS BRODYR BRZEZINM CABLES DAVIDSOL ELKINDJ PASCUALC TEDSTROJ WEISSA StationRoutingIndicator: RUEHMO StationSerialNumber: 0524 TimeOfReceipt: 01/12/2000 05:14:09 ET UNCLAS MOSCOW 000524 SENSITIVE STATE FOR S/NIS, S/NISC, S/CBED, EUR/RUS, EB/ESC USDOC FOR 1003/ITA/JKALICKI/JWILSON/JBROUGHER USDOC ALSO FOR 3133/USFCS/OIO/CPOZA DOE FOR GOLDWYN/GEE/HUGHES/CASTELLI/EKIMOFF/COBURN E.O. 12958: N/A TAGS: EPET, ENRG, RS, LH SUBJECT: WILLIAMS VS. LUKOIL DISPUTE UPDATE SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY. REF: A) VILNIUS 3583 B) MOSCOW 31970 1. (SBU) COINCIDENT WITH A RECENT REUTERS REPORT OF A JOINT WILLIAMS-LUKOIL PRESS CONFERENCE IN VILNIUS PREDICTING IMMINENT RESOLUTION OF THE CONFLICT, MOSCOW-BASED FINANCIAL ANALYSTS WERE UPBEAT ON RESOLUTION OF THE LONG-RUNNING DISPUTE BETWEEN THE COMPANIES OVER CRUDE OIL SUPPLY TO THE MAZEIKIAI REFINERY IN LITHUANIA. ONE MOSCOW INVESTMENT HOUSE ISSUED A "BUY" RECOMMENDATION FOR LUKOIL SPECIFICALLY CITING THEIR EXPECTATION THAT THE SPAT WILL SOON BE OVER AND A LONG-TERM SUPPLY CONTRACT CONCLUDED. 1 2. (SBU) EMBOFF CONTACTED WILLIAMS' MOSCOW REPRESENTATIVE AND LUKOIL FOR AN UPDATE ON ONGOING NEGOTIATIONS BETWEEN THE COMPANIES ON RUSSIAN CRUDE OIL SUPPLY TO MAZEIKIAI. WILLIAMS' MOSCOW REPRESENTATIVE ALEKSANDR RODIONOV DECLINED TO COMMENT ON THE TALKS. LUKOIL INTERNATIONAL RELATIONS DEPARTMENT CHIEF MIKHAIL BESKADAROV SAID THAT ALTHOUGH THE WIRE SERVICE REPORT ANTICIPATED EVENTS, HE IS CONFIDENT THAT AGREEMENT CAN BE REACHED. BESKADAROV ADDED THAT RESOLUTION OF THE LONG-RUNNING CONFLICT IS IN EVERYONE'S INTEREST. THE LUKOIL EXECUTIVE NOTED THAT THE REFINERY HAD BEEN CONSTRUCTED TO RUN ON RUSSIAN CRUDE, AND SAID THAT WHILE MAZEIKIAI HAS REFINED IMPORTED NON-RUSSIAN CRUDE, LONG-TERM PROJECT ECONOMICS REQUIRED RUSSIAN CRUDE INPUT. 3. (SBU) COMMENT. UPBEAT INDICATIONS OF POSSIBLE RESOLUTION OF THIS PROTRACTED CONFLICT ARE WELCOME. GIVEN THE RANCOROUS PAST OF THE CONFLICT, THE PROCESS OF THE TWO COMPANIES COMING TO TERMS WILL LIKELY BE DIFFICULT, BUT THEIR ENGAGEMENT IS THE CENTRAL COMPONENT OF ACHIEVING A WORKABLE OUTCOME ON THE BASIS OF COMMERCIAL IMPERATIVES. END COMMENT. COLLINS 2 Norland, Richard B. (EUR) From: Norland, Richard B. (EUR) DECLASSIFIED Sent: Friday, January 07, 2000 2:38 PM E.O. 13526, Sec. 3.5 (b) To: Blinken, Antony J. (EUR) White House Guidelizaes, September 11, 2006 Cc: @EUROPE - European Affairs By KBH NARA, Date 6/23/2023 Subject: Lithuania [CONFIDENTIAL] 2014-0384-m Points for meeting with Stasys and Deputy Defense Minister Kilikauskas: EU Accession Congratulations again on being invited to start accession talks with the EU -- President Clinton was pleased to write directly to President Adamkus last month to offer his own congratulations. NATO As Ron Asmus told you yesterday, we remain firm in our "open door" policy on Baltic state membership in NATO. Of course, the final decision will be up to our successors. We commend you for your good work thus far on MAP and on economic and social components of becoming a viable NATO member. Strobe Talbott will be speaking in Tallinn on Jan. 24th and will reaffirm this message. - K613 PR campaign your Williams. Williams Deal Lukoil Williams anyoxixy now. "betten How concerned should we be about anti-American perceptions created by the Williams deal? they What is your government's position on this -- frankly, it is a little worrisome to receive private assurances from some officials that they will support the deal, only to find that publicly they criticize American business practices. [note: we are talking about Keith Smith being told one thing by President Adamkus, only to have him say something completely different in public.] We are concerned about Russian pressure on Lithuania through the energy sector, and we are gathering more information in an effort to be supportive. Nazi War Crimes I gather there's been a flap in the press over the past few days regarding Tom Lantos' meeting with the state prosecutor -- what's your sense of what happened? I understand the prosecutor or his representative may be coming to the U.S. soon to meet with people at Justice -- this would be helfpul. I don't need to remind you how important it is for there to be continued progress in addressing the crimes of the past. (Note: Cameron reports a rumor that Stasys is leaving this summer -- I might prod gently after the meeting, unless you want to.) 1 Norland, Richard B. (EUR) From: WHSR Sent: Friday, January 07, 2000 11:28 AM To: Babbitt, James F. (VP); Blinken, Antony J. (EUR); Cables; Davidson, Leslie K. (VP); Feldman, Daniel F. (MULTI); Guarnieri, Valerie N. (MULTI); Mclean, Matthew K. (MULTI); Naplan, Steven J. (MULTI); Norland, Richard B. (EUR); Patten, Wendy L. (MULTI); Schwartz, Eric P. (MULTI); Stromseth, Jane E. (MULTI); Vaccaro, Jonathan M. (Matt) (MULTI) Subject: LITHUANIAN PROSECUTOR'S REMARKS ON HOLOCAUST WAR CRIMINALS AND DOJ ASSISTANCE. CLASSIFIED BYAMB. KEITH C. SMITH, REASON 1.5 ActionAddees: SECSTATE WASHDC IMMEDIATE 1217 Classification: CONFIDENTIAL Date Time: 071234Z JAN 00 Distribution: SIT: BABBITT Blinken NSC Davidson FELDMAN GUARNIERI MCLEAN NAPLAN Norland PATTEN SCHWARTZ STROMSETH VACCARO Identifier: M4235719 InfoAddees: IIII Line1: OAACZYUW RUEHVLA0072 0071234-CCCC--RHEHAAX. Line2: ZNY CCCCC ZZH Line3: O 071234Z JAN 00 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: IMMEDIATE Profiles: BABBITTJ DECLASSIFIED BLINKENA PER E.O. 13526 CABLES DAVIDSOL (1.46) FELDMAND KBH 4/23/2023 GUARNIEV MCLEANM NAPLANS NORLANDR PATTENW SCHWARTE STROMSEJ VACCAROJ StationRoutinglndicator: RUEHVL StationSerialNumber: 0072 TimeOfReceipt: 01/07/2000 11:27:20 ET CONFIDENTIAL SECTION 01 OF 02 VILNIUS 000072 DEPT FOR EUR- RON ASMUS DEPT FOR PA - JAMES RUBIN E.O. 12958: DECL:01/07/10 TAGS: PHUM, PREL, LH, SNAR, CJAN SUBJECT: LITHUANIAN PROSECUTOR'S REMARKS ON HOLOCAUST WAR CRIMINALS AND DOJ ASSISTANCE. CLASSIFIED BYAMB. KEITH C. SMITH, REASON 1.5 REF: A.) VILNIUS 00051 B.) VILNIUS 00050 1. (e) SUMMARY: EMBASSY BELIEVES THAT CONTROVERSY SURROUNDING PROSECUTOR GENERAL'S PRIVATE REMARKS TO CONGRESSMAN LANTOS HAVE RESULTED IN HEIGHTENED RECOGNITION THAT THE JUDICIAL PROCESS DIRECTED AGAINST NAZI-ERA WAR CRIMINALS SHOULD BE ACCELERATED. IN ADDITION THE PROSECUTOR GENERAL HAS ISSUED A PUBLIC STATEMENT STATING THAT DOJ ASSISTANCE HAS BEEN VERY HELPFUL TO HIS OFFICE AND HE HAS INVITED DOJ PERSONNEL TO COME TO LITHUANIA FOR SEVERAL MONTHS TO HELP DEVELOP PROSECUTABLE CASES. WE STRONGLY BELIEVE THAT 1 THE PRESS STATEMENT DRAFTED BY EUR STRIKES A PERFECT BALANCE BETWEEN THE NEED FOR U.S. TO PROMOTE FASTER ACTION ON THE PART OF THE LITHUANIA PROSECUTORS OFFICE AND THE DANGER OF FANNING UP THE LATEST ANTI-SEMITISM THAT IS STILL PRESENT IN MANY OF THE 50& GENERATION. THE DRAFT STATEMENT WE HAVE SEEN FROM DOJ/OSI WOULD PLAY INTO THE HANDS OF THE NATIONALIST ELEMENTS AND PUT ON THE DEFENSIVE THOSE NATIONALIST ELEMENTS REPRESENTED BY THE PRESIDENT, PRIME MINISTER, JEWISH MEMBERS OF PARLIAMENT, AND THIS EMBASSY WHO VERY MUCH WANT TO SEE THESE HOLOCAUST-ERA KILLERS BROUGHT TO JUSTICE BEFORE THEY DIE. END SUMMARY 2. (C) THE EMBASSY HAS REPORTED EXTENSIVELY ON THE PUBLIC CONTROVERSY RESULTING FROM CONGRESSMAN LANTOS JANUARY 4TH MEETING WITH LITHUANIAN PROSECUTOR- GENERAL PEDNYCIA (SEE REFTEL A-B) AS A RESULT OF THE PROSECUTORS REMARKS THAT THE U.S. DEPARTMENT OF JUSTICE HAS FAILED TO RESPOND TO REQUESTS FOR INFORMATION, HE AND HIS OFFICE HAVE COME UNDER INTENSE CRITICISM FROM THE PRESIDENT'S OFFICE, THE PRIME MINISTER AND FOREIGN MINISTRY. THE PROSECUTOR HAS ISSUED SEVERAL STATEMENTS, EACH ONE MORE POSITIVE ABOUT THE HELP HIS OFFICE HAS RECEIVED FROM DOJ. THE PROSECUTOR AND HIS ASSISTANT CAME TO THE EMBASSY AND MET WITH THE AMBASSADOR. AT THE MEETING HE APOLOGIZED FOR LEAVING THE IMPRESSION WITH LANTOS THAT THE SLOW PACE OF INVESTIGATIONS IS A RESULT OF FOOT-DRAGGING BY DOJ. HE REITERATED HIS PUBLIC STATEMENT THAT DOJ'S ASSISTANCE HAS BEEN EXCELLENT AND THAT IT IS IMPORTANT TO THE EFFORT TO BRING HOLOCAUST-ERA WAR CRIMINALS TO JUSTICE. MORE SIGNIFICANTLY, HOWEVER, THE PROSECUTOR STATED PRIVATELY AND PUBLICLY THAT HE WOULD WELCOME DOJ'S SENDING AT LEAST TWO OFFICIALS TO LITHUANIA TO WORK FOR SEVERAL MONTHS SIDE-BY-SIDE WITH LITHUANIAN PROSECUTORS IN ORDER TO DEVELOP STRONG JUDICIAL CASES WHICH CAN BE MOVED MORE RAPIDLY TO TRIAL. HE REMARKED THAT HIS GOAL IS TO RECEIVE TECHNICAL ADVICE ON HOW TO PUT STRONG CASES TOGETHER AND TO DEMONSTRATE, THROUGH OPENNESS AND TRANSPARENCY, THE GOOD WILL OF HIS OFFICE. 3. (C) IT HAS TAKEN TOO LONG FOR THE PROSECUTOR'S OFFICE AND THE LITHUANIAN GOVERNMENT TO MOVE FORWARD WITH THE TRIALS OF SUSPECTED WAR CRIMINALS WHO HAVE RETURNED INVOLUNTARILY FROM THE U.S. THE SLOW PACE IS A RESULT OF WEAK POLITICAL COMMUNICATIONS, PARTICULARLY BY PAST GOVERNMENTS, INEXPERIENCE AND INEFFECTIVENESS BY THE PROSECUTOR'S OFFICE AND RESIDUAL ANTI-SEMITISM BY MANY IN OVER-50'S GENERATION. PRESIDENT ADAMKUS, HOWEVER, TOOK THE LEAD IN THE BALTICS IN ESTABLISHING A HISTORICAL COMMISSION TO EXAMINE AND REPORT ON NAZI-ERA AND SOVIET-ERA WAR CRIMES. THIS COMMISSION, WHICH CONTAINS SEVERAL MEMBERS FROM THE JEWISH COMMUNITY, IS NOW UP AND RUNNING, AND IT LOOKS LIKE IT WILL SOON HAVE A MEMBER FROM YAD VASHEM. 4. (C) WHILE ONLY PART OF THE PROBLEM, THE PROSECUTOR GENERAL IS FACED WITH THE LEGAL PROBLEM OF NOT BEING ABLE TO CONTINUE TRIALS OF SUSPECTED WAR CRIMINALS WHO ARE MEDICALLY-CERTIFIED AS BEING UNABLE TO STAND TRIAL PHYSICALLY. IN ALMOST ALL COUNTRIES, INCLUDING THE U.S., A TRIAL CANNOT PROCEED IF THE DEFENDANT IS DECLARED UNFIT MEDICALLY TO APPEAR IN COURT. THERE IS A BILL NOW WORKING ITS WAY THROUGH THE LITHUANIAN PARLIAMENT WHICH WOULD ALLOW FOR TRIAL IN ABSENTIA, PERHAPS THROUGH VIDEO CONFERENCING. ACCORDING TO THE HEAD OF THE PARLIAMENT'S HUMAN RIGHTS COMMITTEE, EMMANUELAS ZINGERIS, THE BILL STANDS A BETTER THAN 50/50 CHANCE OF APPROVAL--EVEN THOUGH THE COUNCIL OF EUROPE HAS REPEATEDLY INFORMALLY EXPRESSED ITS OPPOSITION TO THE BILL. 2 5. (C) COMMENT: THE EMBASSY BELIEVES CONGRESSMAN LANTOS WAS EXTREMELY SUCCESSFUL IN INCREASING GOVERNMENTAL AND PUBLIC AWARENESS OF THE NEED FOR LITHUANIANS TO CONFRONT THE DARK SIDE OF THEIR HISTORY-- THE PARTICIPATION OF SOME LITHUANIANS IN THE MURDER OF OVER 220,000 JEWS DURING THE WORLD WAR TWO . HIS WELL- RECEIVE SPEECH TO THE PARLIAMENT STRUCK JUST THE RIGHT BALANCE CONF N SECTION 02 OF 02 VILNIUS 000072 DEPT FOR EUR - RON ASMUS DEPT FOR PA - JAMES RUBIN E.O. 12958: DECL:01/07/10 TAGS: PHUM, PREL, LH, SNAR, CJAN SUBJECT: LITHUANIAN PROSECUTOR'S REMARKS ON HOLOCAUST WAR CRIMINALS AND DOJ ASSISTANCE. IN ADMONISHING LITHUANIA FOR FOOT-DRAGGING, WHILE REMARKING THAT WE ALL, INCLUDING THE U.S., HAVE DARK CHAPTERS IN OUR HISTORY. THIS APPROACH TO THE WAR CRIMES ISSUE IS THE BEST WAY TO MOVE THE LITHUANIANS TO ACTION BEFORE THE SUSPECTS DIE OFF. AN OVERLY CRITICAL APPROACH BY THE U.S. WOULD CAUSE A STRONGLY NATIONALISTIC REACTION, PLAY INTO THE HANDS OF THE REMAINING ANTI-JEWISH ELEMENTS AND THOSE WHO WOULD WRAP THEMSELVES IN THE FLAG SAND TIE "PRESSURE FROM THE U.S." TO THE STRONG PUBLIC OPPOSITION TO THE INVESTMENT BY THE WILLIAMS COMPANY. THEREFORE, WE BELIEVE THAT THE BALANCED DRAFT PUBLIC STATEMENT PREPARED BY THE DEPARTMENT ON JANUARY 6, SHOULD BE RELEASED AS IS. THE STRONGLY CRITICAL DRAFT PREPARED BY DOJ WOULD PLAY INTO THE HANDS OF THOSE OPPOSED TO DEALING WITH THIS SORRY CHAPTER IN LITHUANIA'S HISTORY. SMITH 3 Norland, Richard B. (EUR) From: WHSR Sent: Friday, January 07, 2000 9:59 AM To: Blinken, Antony J. (EUR); Cables; Davidson, Leslie K. (VP); Norland, Richard B. (EUR) Subject: REP. LANTOS' VISIT TO LITHUANIA HAS POSITIVE IMPACT (U) CLASSIFIED BY POL/ECON CHIEF MARILYN ERESHEFSKY FOR ActionAddees: RUEHC/SECSTATE WASHDC IMMEDIATE 1221 RUEHVL/AMEMBASSY VILNIUS Classification: CONFIDENTIAL DateTime: 071432Z JAN 00 Distribution: SIT: Blinken NSC Davidson Norland Identifier: M4235536 InfoAddees: RUEHRA/AMEMBASSY RIGA 1364 RUEHTL/AMEMBASSY TALLINN 5097 RUEHCP/AMEMBASSY COPENHAGEN 1571 Teny - Line1: OAACZYUW RUEHVLA0074 0071432-CCCC--RHEHAAX. Line2: ZNY CCCCC ZZH Line3: O 071432Z JAN 00 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: IMMEDIATE Profiles: BLINKENA CABLES DAVIDSOL NORLANDR DECLASSIFIED StationRoutingIndicator: RUEHVL PER E.O. 13526 StationSerialNumber: 0074 TimeOfReceipt: 01/07/2000 09:58:26 ET 2016.0384.r (1.67) KBH 6/23/2023 CONFIDENTIAL VILNIUS 000074 DEPT FOR EUR/NB DAMIAN LEADER AND DAS ASMUS PLEASE PASS TO DOJ/OSI E.O. 12958: DECL: 01/05/10 TAGS: KNAR, PGOV, PREL, CJAN, LH SUBJECT: REP. LANTOS' VISIT TO LITHUANIA HAS POSITIVE IMPACT (U) CLASSIFIED BY POL/ECON CHIEF MARILYN ERESHEFSKY FOR REASON 1.5 B. 1. (C) SUMMARY: WITH THE EXCEPTION OF ONE MEETING WITH THE PROSECUTOR, CONGRESSMAN LANTOS ENJOYED A WARM RECEPTION FROM EVERY LITHUANIAN OFFICIAL HE MET, INCLUDING THE PRESIDENT, PRIME MINISTER, SPEAKER OF THE PARLIAMENT AND THE FOREIGN MINISTER. LANTOS GAVE A VERY WELL-RECEIVED SPEECH TO THE LITHUANIAN PARLIAMENT AND WAS GIVEN A STANDING OVATION BEFORE AND AFTER HE SPOKE. HE ALSO MET WITH MEMBERS OF THE PARLIAMENT'S COMMITTEES ON FOREIGN AFFAIRS, SECURITY, AND HUMAN RIGHTS, WITH MEMBERS OF THE LITHUANIAN HISTORICAL COMMISSION INTO NAZI AND SOVIET CRIMES, WITH THE LOCAL SOROS FOUNDATION HEAD, AND WITH JEWISH COMMUNITY LEADERS. REP. LANTOS' ADDRESS TO THE LITHUANIAN PARLIAMENT WAS ESPECIALLY EFFECTIVE AND PRESS COVERAGE OF THE LANTOS' SPEECH AND THE FILM WERE QUITE POSITIVE. AS LANTOS WAS ? ABLE TO SEE FOR HIMSELF, LITHUANIAN GOVERNMENT LEADERS ARE UNANIMOUS IN THEIR BELIEF THAT LITHUANIA MUST TAKE POSITIVE STEPS TO DEMONSTRATE THAT IT IS WILLING TO DEAL WITH ITS TERRIBLE HISTORY DURING THE NAZI ERA. THE LANTOS VISIT GAVE THEM A PLATFORM TO MAKE THAT POINT PRIVATELY AND PUBLICLY. END SUMMARY 2. (e) (C) LANTOS' MESSAGE ABOUT THE NEED FOR LITHUANIA TO FACE 1 ITS PAST WAS SURPRISINGLY WELL-RECEIVED, PARTICULARLY IN THE PARLIAMENT. LANTOS SAID IN HIS SPEECH THAT ALL DEMOCRATIC COUNTRIES HAVE TO COME TO TERMS WITH THEIR "HYPOCRISY GAP," NOTING THAT THE U.S. HAD HAD TO FACE UP TO THE LEGACY OF SLAVERY. HE APPEALED TO THEIR SENSE OF PATRIOTISM AND SAID THAT THIS WAS A QUESTION OF THE HONOR OF LITHUANIA. LANTOS ALSO PLEDGED THAT HE WOULD BE LEADING SUPPORT IN THE CONGRESS FOR LITHUANIA'S MEMBERSHIP IN NATO -- THE LINE WHICH GARNERED THE MOST APPLAUSE FROM THE MEMBERS OF PARLIAMENT. SEIMAS MEMBERS HAVE TOLD US THAT THE SPEAKER LANDSBERGIS THOUGHT IT WAS ONE OF THE BEST SPEECHES EVER GIVEN IN THE PARLIAMENT AND THAT MPS ACROSS THE POLITICAL SPECTRUM THOUGHT IT WAS A GOOD SPEECH. 3. (C) THE PRESIDENT, PRIME MINISTER AND CHAIRMAN OF THE PARLIAMENT ALL ISSUED STATEMENTS EXPRESSING THE NEED FOR LITHUANIA TO DEAL WITH ITS PAST AND TO PROSECUTE THOSE ACCUSED OF CRIMES AGAINST HUMANITY. THE FILM ALSO RECEIVED POSITIVE NOTICE, INCLUDING ONE VERY FINE PIECE IN "LIETUVOS AIDAS" (E- MAILED TO EUR/NB SILSKI.) MANY LITHUANIANS COMMENTED THAT THE FILM SHOULD GET A WIDER SHOWING IN LITHUANIA AND THE EMBASSY IS TRYING TO ARRANGE A SCREENING ON LITHUANIAN TELEVISION. SINCE THE FILM FOCUSES ON EVENTS IN HUNGARY, LITHUANIAN VIEWERS WERE ABLE TO SEE THAT THERE IS A MUCH WIDER EUROPEAN CONTEXT FOR NAZI-ERA HORRORS -- THAT IT IS NOT JUST LITHUANIA OR LITHUANIANS WHO ARE BEING HELD RESPONSIBLE FOR SOME OF THE CRIMES COMMITTED. 4. (C) COMMENT: WITH ALL THE BROUHAHA ABOUT LANTOS' MEETING WITH THE PROSECUTOR THIS SHOULD NOT BE DISMISSED AS JUST SOME "ASIDE FROM THAT, MRS. LINCOLN HOW WAS THE PLAY" THINKING. LANTOS GOT HIS MESSAGE ACROSS IN A VERY EFFECTIVE, YET SENSITIVE MANNER. IT IS VERY GOOD FOR THIS SOCIETY TO HAVE ITS TOP LEADERS ALL DECLARE THE NEED FOR THE COUNTRY TO DEAL WITH ITS PAST. IT IS ALL THE MORE UNFORTUNATE THAT THE POSITIVE FEELINGS ACHIEVED BY REP. LANTOS' VISIT WERE SO OVERSHADOWED A DAY LATER BY THE PRESS AND ONE MEMBER OF PARLIAMENT TRYING TO SOW CONFLICT. EMBASSY BELIEVES THAT REP. LANTOS' PUBLIC REMARKS STRUCK JUST THE RIGHT CHORD AND WERE UNDERSTOOD BY POLITICIANS ACROSS THE POLITICAL SPECTRUM. THERE WILL BE NO INSTANTANEOUS RESULTS, HOWEVER. NO WAR CRIMINALS WILL BE PROSECUTED IMMEDIATELY. IF THE BILL IN PARLIAMENT TO ALLOW TRIALS IN ABSENTIA FOR THOSE ACCUSED OF CRIMES OF GENOCIDE PASSES -- PROBABLY SOME TIME IN MARCH - THE PROSECUTORS WILL BE ABLE TO PROCEED QUICKLY ON TWO SUSPENDED TRIALS. AS EMBASSY HAS MADE CLEAR IN OTHER CABLES, HOWEVER, WE HAVE VERY LITTLE CONFIDENCE IN THE PROSECUTORS ABILITY TO ASSEMBLE AND ARGUE THEIR CASES, SO FURTHER RESULTS MAY STILL BE SLOW IN COMING. SMITH 2 Norland, Richard B. (EUR) From: WHSR Sent: Friday, January 07, 2000 9:59 AM To: Blinken, Antony J. (EUR); Cables; Davidson, Leslie K. (VP); Norland, Richard B. (EUR) Subject: REP. LANTOS' VISIT TO LITHUANIA HAS POSITIVE IMPACT (U) CLASSIFIED BY POL/ECON CHIEF MARILYN ERESHEFSKY FOR ActionAddees: RUEHC/SECSTATE WASHDC IMMEDIATE 1221 RUEHVL/AMEMBASSY VILNIUS Classification: CONFIDENTIAL Date Time: 071432Z JAN 00 Distribution: SIT: Blinken NSC Davidson Norland DECLASSIFIED Identifier: M4235536 PER E.O. 13526 InfoAddees: RUEHRA/AMEMBASSY RIGA 1364 RUEHTL/AMEMBASSY TALLINN 5097 2016- (1.63) RUEHCP/AMEMBASSY COPENHAGEN 1571 KBH 4/23/2023 Line1: OAACZYUW RUEHVLA0074 0071432-CCCC--RHEHAAX. Line2: ZNY CCCCC ZZH Line3: O 071432Z JAN 00 Line4: FM AMEMBASSY VILNIUS Originator: AMEMBASSY VILNIUS Precedence: IMMEDIATE Profiles: BLINKENA CABLES DAVIDSOL NORLANDR StationRoutingIndicator: RUEHVL StationSerialNumber: 0074 TimeOfReceipt: 01/07/2000 09:58:26 ET CONFIDENTIALVILNIUS 000074 DEPT FOR EUR/NB DAMIAN LEADER AND DAS ASMUS PLEASE PASS TO DOJ/OSI E.O. 12958: DECL: 01/05/10 TAGS: KNAR, PGOV, PREL, CJAN, LH SUBJECT: REP. LANTOS' VISIT TO LITHUANIA HAS POSITIVE IMPACT (U) CLASSIFIED BY POL/ECON CHIEF MARILYN ERESHEFSKY FOR REASON 1.5 B. 1. (C) SUMMARY: WITH THE EXCEPTION OF ONE MEETING WITH THE PROSECUTOR, CONGRESSMAN LANTOS ENJOYED A WARM RECEPTION FROM EVERY LITHUANIAN OFFICIAL HE MET, INCLUDING THE PRESIDENT, PRIME MINISTER, SPEAKER OF THE PARLIAMENT AND THE FOREIGN MINISTER. LANTOS GAVE A VERY WELL-RECEIVED SPEECH TO THE LITHUANIAN PARLIAMENT AND WAS GIVEN A STANDING OVATION BEFORE AND AFTER HE SPOKE. HE ALSO MET WITH MEMBERS OF THE PARLIAMENT'S COMMITTEES ON FOREIGN AFFAIRS, SECURITY, AND HUMAN RIGHTS, WITH MEMBERS OF THE LITHUANIAN HISTORICAL COMMISSION INTO NAZI AND SOVIET CRIMES, WITH THE LOCAL SOROS FOUNDATION HEAD, AND WITH JEWISH COMMUNITY LEADERS. REP. LANTOS' ADDRESS TO THE LITHUANIAN PARLIAMENT WAS ESPECIALLY EFFECTIVE AND PRESS COVERAGE OF THE LANTOS' SPEECH AND THE FILM WERE QUITE POSITIVE. AS LANTOS WAS ABLE TO SEE FOR HIMSELF, LITHUANIAN GOVERNMENT LEADERS ARE UNANIMOUS IN THEIR BELIEF THAT LITHUANIA MUST TAKE POSITIVE STEPS TO DEMONSTRATE THAT IT IS WILLING TO DEAL WITH ITS TERRIBLE HISTORY DURING THE NAZI ERA. THE LANTOS VISIT GAVE THEM A PLATFORM TO MAKE THAT POINT PRIVATELY AND PUBLICLY. END SUMMARY 2. (C) LANTOS' MESSAGE ABOUT THE NEED FOR LITHUANIA TO FACE 1 ITS PAST WAS SURPRISINGLY WELL-RECEIVED, PARTICULARLY IN THE PARLIAMENT. LANTOS SAID IN HIS SPEECH THAT ALL DEMOCRATIC COUNTRIES HAVE TO COME TO TERMS WITH THEIR "HYPOCRISY GAP," NOTING THAT THE U.S. HAD HAD TO FACE UP TO THE LEGACY OF SLAVERY. HE APPEALED TO THEIR SENSE OF PATRIOTISM AND SAID THAT THIS WAS A QUESTION OF THE HONOR OF LITHUANIA. LANTOS ALSO PLEDGED THAT HE WOULD BE LEADING SUPPORT IN THE CONGRESS FOR LITHUANIA'S MEMBERSHIP IN NATO -- THE LINE WHICH GARNERED THE MOST APPLAUSE FROM THE MEMBERS OF PARLIAMENT. SEIMAS MEMBERS HAVE TOLD US THAT THE SPEAKER LANDSBERGIS THOUGHT IT WAS ONE OF THE BEST SPEECHES EVER GIVEN IN THE PARLIAMENT AND THAT MPS ACROSS THE POLITICAL SPECTRUM THOUGHT IT WAS A GOOD SPEECH. 3. (C) THE PRESIDENT, PRIME MINISTER AND CHAIRMAN OF THE PARLIAMENT ALL ISSUED STATEMENTS EXPRESSING THE NEED FOR LITHUANIA TO DEAL WITH ITS PAST AND TO PROSECUTE THOSE ACCUSED OF CRIMES AGAINST HUMANITY. THE FILM ALSO RECEIVED POSITIVE NOTICE, INCLUDING ONE VERY FINE PIECE IN "LIETUVOS AIDAS" (E- MAILED TO EUR/NB SILSKI.) MANY LITHUANIANS COMMENTED THAT THE FILM SHOULD GET A WIDER SHOWING IN LITHUANIA AND THE EMBASSY IS TRYING TO ARRANGE A SCREENING ON LITHUANIAN TELEVISION. SINCE THE FILM FOCUSES ON EVENTS IN HUNGARY, LITHUANIAN VIEWERS WERE ABLE TO SEE THAT THERE IS A MUCH WIDER EUROPEAN CONTEXT FOR NAZI-ERA HORRORS - THAT IT IS NOT JUST LITHUANIA OR LITHUANIANS WHO ARE BEING HELD RESPONSIBLE FOR SOME OF THE CRIMES COMMITTED. 4. (C) COMMENT: WITH ALL THE BROUHAHA ABOUT LANTOS' MEETING WITH THE PROSECUTOR THIS SHOULD NOT BE DISMISSED AS JUST SOME "ASIDE FROM THAT, MRS. LINCOLN HOW WAS THE PLAY" THINKING. LANTOS GOT HIS MESSAGE ACROSS IN A VERY EFFECTIVE, YET SENSITIVE MANNER. IT IS VERY GOOD FOR THIS SOCIETY TO HAVE ITS TOP LEADERS ALL DECLARE THE NEED FOR THE COUNTRY TO DEAL WITH ITS PAST. IT IS ALL THE MORE UNFORTUNATE THAT THE POSITIVE FEELINGS ACHIEVED BY REP. LANTOS' VISIT WERE SO OVERSHADOWED A DAY LATER BY THE PRESS AND ONE MEMBER OF PARLIAMENT TRYING TO SOW CONFLICT. EMBASSY BELIEVES THAT REP. LANTOS' PUBLIC REMARKS STRUCK JUST THE RIGHT CHORD AND WERE UNDERSTOOD BY POLITICIANS ACROSS THE POLITICAL SPECTRUM. THERE WILL BE NO INSTANTANEOUS RESULTS, HOWEVER. NO WAR CRIMINALS WILL BE PROSECUTED IMMEDIATELY. IF THE BILL IN PARLIAMENT TO ALLOW TRIALS IN ABSENTIA FOR THOSE ACCUSED OF CRIMES OF GENOCIDE PASSES -- PROBABLY SOME TIME IN MARCH- THE PROSECUTORS WILL BE ABLE TO PROCEED QUICKLY ON TWO SUSPENDED TRIALS. AS EMBASSY HAS MADE CLEAR IN OTHER CABLES, HOWEVER, WE HAVE VERY LITTLE CONFIDENCE IN THE PROSECUTORS ABILITY TO ASSEMBLE AND ARGUE THEIR CASES, SO FURTHER RESULTS MAY STILL BE SLOW IN COMING. SMITH 2 Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 012. letter DOB (Partial) Personal (Partial) (1 page) 01/06/2000 P6/b(6) COLLECTION: Clinton Presidential Records National Security Council European Affairs (Richard Norland) OA/Box Number: 2630 FOLDER TITLE: Lithuania [6] 2011-1038-F kh1049 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. 03/06 '00 02:24 ID:LANIERFAX3800 FAX: PAGE 1 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VASINGTONAS WASHINGTON, D.C. January 6, 2000 Office of Mr. Antony Blinken Attn.: Nancy Maxfield mary Fax: 202-447-9050 1 cleared Dear Ms. Maxfield: Please find enclosed information regarding the attendees to the meeting on January 7, 2000 at 3:00 p.m.: Mr. Stasys Sakalauskas, Ambassador Embassy of Lithuania [012] (b)(6) Mr. Kestutis Jankauskas, Minister-Counsellor, Embassy of Lithuania (b)(6) Mr. Romas Kilikauskas, Deputy Minister, Ministry of National Defence of Lithuania (b)(6) Mr. Page Raffc, Attorney at Law If you will have any additional questions or concerns, please contact me at 202-234- 5860 ext11. Sincerely, aoing Heality Adrija Henley Assistant to the Ambassador From: Embassy of Lithuania To: richard B. Norland Date: 2000.01.05 Time: 18:47:56 Page 1 of 1 LIETUVOS RESPUBLIKOS AMBASADA EMBASSY OF THE REPUBLIC OF LITHUANIA VAŠINGTONAS WASHINGTON, D.C. NEWS RELEASE Contact: Rolandas Kacinskas January 05, 2000 Phone: (202) 234-5860 X 21 LITHUANIAN DEFENSE VICE MINISTER ROMAS KILIKAUSKAS' VISIT TO WASHINGTON, D.C. WASHINGTON, Jan 05 - Lithuanian National Defense Vice Minister Colonel Romas Kilikauskas started on Tuesday his four-day visit to the United States. Vice Minister R.Kilikauskas' stay in Washington includes visits to the U.S. Congress, the Pentagon, CIA, NSC and Department of State. Vice Minister Kilikauskas is also scheduled to meet experts of non-governmental and academic organizations participating in the formation of the U.S. security and foreign policies (RAND, Institute of Foreign Policy Analysis, Committee on NATO Expansion). The main topics of the discussions are the modernization of Lithuanian armed forces, the implementation of Lithuanian National NATO integration program (MAP), and perspectives of Lithuania's membership in NATO. COL Romas Kilikauskas, U.S. Air Force/Retired, served 37 years in the Air Force Intelligence Service. He is a graduate of the Armed Forces Staff College, Norfolk, VA., Air War College and Air Command and Staff College, Montgomery, AL., and the Defense Intelligence College, Washington, D.C. He served in Germany, Vietnam, and completed two tours in the Pentagon - once as a Soviet Strategic Analyst at Headquarters. U.S. Air Force and once as Director of Warning (J-2W). He also served as the Duty Director for Intelligence in the National Military Intelligence Center (NMIC) during Operation Desert Storm (Persian Gulf War). Following his retirement in 1992, COL Kilikauskas held a post of Vice Minister in the Ministry of Internal Affairs of Lithuania from March 1997 to March 1998. COL Kilikauskas was appointed to the current post as Vice Minister of the Ministry of National Defense on August 25, 1999 where he replaced another former U.S. Colonel Juozas Kronkaitis after appointment of latter as a Commander of Lithuanian Armed Forces on June 24, 1999. 2622 16TH STREET, NW - WASHINGTON. D.C. 20009 - PHONE (202) 234-5860 FAX (202) 328-0466 Norland, Richard B. (EUR) From: Norland, Richard B. (EUR) Sent: Wednesday, January 05, 2000 4:58 PM To: Blinken, Antony J. (EUR) Cc: @EUROPE - European Affairs Subject: Lithuanian appt. request [UNCLASSIFIED] Tony, Stasys just called to ask if he could bring in his deputy defense minister to see you and me on Friday. The Deputy DefMin, Romas Kilikauskas, is a former U.S. colonel (army or USAF), and he has had meetings this week at DOD, State, CIA, etc. This would be a good chance to get caught up on the Lithuanian domestic political picture, Williams, etc. Stasys is proposing either 9 a.m. Friday, or anytime after 2 pm that day. If you can't do it, I will plan to receive them myself. Dick. Fri: Jan. 7 3p.m 3 will paride dob into 1 Norland, Richard B. (EUR) From: Quinn, Mary E. (EUR) Sent: Wednesday, January 05, 2000 4:10 PM To: Norland, Richard B. (EUR) Subject: You received a phone call from Ambassador Stasys from Lithuania. [UNCLASSIFIED] Called: 0 Phone Number: 234-5860 ext. 11 Please Contact: Ambassador Stasys from Lithuania PleaseCall: -1 ReturnedCall: 0 Wants ToSee: 0 WillCall: 0 Dep. Af.Min. : Romas Kilikauskas fame U.S. colord, (Amg) Tony: 9:00 an saw Gen. Sheltons aftern fth 2pm. 6a. Gamett Desustarin - Dga. PM. - 1