AMBASSADOR IN SIAULIAI STRESSES DEVELOPMENT AND

UNCLAS SECTION 01 OF 02 VILNIUS 001369

SIPDIS

STATE FOR EUR/NB

E.O. 12958: N/A
TAGS: PGOV OVIP LH
SUBJECT: AMBASSADOR IN SIAULIAI STRESSES DEVELOPMENT AND
TOLERANCE, TOURS NATO DETACHMENT

REF: A. VILNIUS 1331

B. VILNIUS 079


1. SUMMARY. Ambassador traveled to Lithuania's northern city
of Siauliai October 20-21 to conveying a message of
admiration for Lithuania's rapid democratic and economic
growth and appreciation for its activist foreign policy and
contributions to the NATO alliance. In a town often
identified with anti-Semitism, the Ambassador promoted a
message of tolerance and the rights of persons during
meetings, press interviews, and a public forum with local
governmental and NGO leaders. He also visited the Zokniai
airfield, home to NATO's Baltic air policing assets, and
received briefings from the Commander of Lithuania's Air
Force and NATO's detachment commander on the air-policing
mission. End Summary.

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Background
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2. The visit to Siauliai was the second in a series of
planned Ambassadorial trips (reftel A) to regional towns in
Lithuania. Siauliai is Lithuania's fourth largest city and
the economic, cultural, and educational center of Northern
Lithuania. The city is most famous for the memorial of
thousands of crosses planted in a hillside, initially
dedicated to people who were killed for Lithuanian freedom,
which draws nearly a million visitors per annum. After WWII
left Siauliai in near ruins, the Soviet Union rebuilt and
developed Siauliai to support the largest military airport in
Eastern Europe. The Zokniai airport is currently home to a
Lithuanian air force base and, since March, has hosted NATO's
Baltic air policing assets.

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The Ambassador's Message
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3. The Ambassador stressed five themes with local
governmental, NGO, cultural and educational leaders during a
two-day tour d'horizon on October 20-21:

--ACTIVIST FOREIGN POLICY: Ambassador Mull noted Lithuania's
activist foreign policy, its role in strengthening the
transatlantic alliance and its constructive role in regional
stability.

--CONTINUED STRONG BILATERAL RELATIONSHIP: The Ambassador
assured interlocutors that Lithuania's close relationship
with the United States will continue.

--DEMOCRATIC AND ECONOMIC DEVELOPMENT: Ambassador Mull
praised Lithuania's success in progressing from a
totalitarian system to a democracy that is vibrant, free, and
secure.

--INCREASED ECONOMIC COOPERATION: The Ambassador promoted
greater economic cooperation between the United States and
Lithuania and highlighted December's Baltic Trade and
Investment Mission in London.

--TOLERANCE: The Ambassador praised those who, recognizing a
serious threat to democracy, stand up and condemn intolerance
in all its forms, including anti-Semitism.

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A Provincial Town In Development
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4. Interlocutors focused discussions on issues related to
economic development and attracting foreign investment.
Though Siauliai has Northern Lithuania's largest university,
hospital, and airport, interlocutors noted that Siauliai is
best described as a provincial town, one hungry for
development and investment.


5. Siauliai County Governor Arvydas Sedzius, who also serves
as Chairman of Siauliai's Regional Development Council, said
that Siauliai has not yet benefited significantly from EU
structural fund support. These funds, and foreign direct
investment, said Siauliai Mayor Vytautas Juskus, have gone
primarily to Lithuania's three largest cities, Vilnius,
Kaunas and Klaipeda, and have only begun to trickle to
Siauliai for local development projects. Ramunas Markauskas,
Administrator of Siauliai's 68-member strong Confederation of
NGOs, told the Ambassador that the region's budget for social
welfare programs, for example, is only 130,000 Litas
(approximately $46,000 USD),insufficient to meet the needs
of a population of 150,000. Leadership at the Siauliai
Hospital and Siauliai University told the Ambassador that
lack of government assistance keeps these institutions on
shoestring budgets and impedes expansion or improvement of
services.


6. Siauliai airport Director Jonas Jutkelis noted his
frustration at attracting private investment capital to one
of Eastern Europe's best-equipped civilian airports. In
spite of its very long runway, new control tower, highly
qualified specialists, close proximity to the Latvian border,
and first-rank certification, the airport has not attracted
private capital for infrastructure development. The airport
continues to seek investment partners, but Jutkelis said he
was not optimistic about finding one in the near future.

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Rebellious Past, Undercurrent of Intolerance Today
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7. Siauliai, a center of rebellion against both Tsarist
Russian and Soviet oppression during its nearly 800-year
history, is still known for its straightforward, outspoken
people. Acts of intolerance are occasionally reported
(reftel B) against Siauliai's small Jewish community, though
governmental and NGO leaders downplayed these sporadic
occurrences, and highlighted Siauliai's inter-ethnic harmony
to the Ambassador. Reflecting Siauliai's reputation for
candor, residents asked the Ambassador challenging,
hard-hitting questions on topics that ranged from USG support
for Lithuania following the Potsdam Conference to the lack of
U.S. investment in the region during an open forum at the
Siauliai Community House. A leader of Lithuania's National
Democratic party present at the forum questioned the U.S.
role in the Middle East.

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NATO's Footprint
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8. Lithuanian Air Force Commander Colonel Jonas Marcinkus and
NATO's Detachment Commander British Wing Commander Dan
Storrs provided briefings on the ongoing renovations of the
Zokniai airfield and the NATO air-policing mission.
Marcinkus said that renovations to the Zokniai airfield are
on schedule and should be complete by 2006. Storrs spoke
highly of the logistical support provided by the GOL has
provided to his detachment since its arrival October 14.
Storrs, during a comprehensive tour of his operational
headquarters, also detailed his efforts to keep NATO's
footprint as small as possible in Siauliai, in order to
maintain amicable relations with the civilian population.

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Media Coverage
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9. There was extensive media coverage throughout the visit.
The Ambassador gave an exclusive interview to the region's
largest daily newspaper and provided interviews for the
region's television and print outlets throughout the visit.

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Comment: Hope for the Future
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10. Siauliai lags behind Vilnius, Kaunas, and Klaipeda in
terms of development and investment. With low unemployment,
a well-educated work force, the region's largest university,
and NATO funds helping renovate the airport and contributing
to the local economy, the future for Siauliai could be
bright. The region's Achilles' Heel is the undercurrent of
intolerance, particularly anti-Semitism. For the region to
achieve its potential, its leaders must play a more active
role in promoting tolerance.
MULL