Identifier
Created
Classification
Origin
05VILNIUS447
2005-04-29 05:20:00
UNCLASSIFIED
Embassy Vilnius
Cable title:  

SCENESETTER FOR CODEL KINGSTON

Tags:  PGOV OVIP LH 
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UNCLAS SECTION 01 OF 03 VILNIUS 000447 

SIPDIS

FOR CODEL KINGSTON FROM CHARGE D'AFFAIRES TOM KELLY

STATE FOR EUR/NB, H AND RM/F/DFS/FO/AA/CAA

E.O. 12958: N/A
TAGS: PGOV OVIP LH
SUBJECT: SCENESETTER FOR CODEL KINGSTON

REF: A. VILNIUS 432


B. STATE 074071

------------
Introduction
------------

UNCLAS SECTION 01 OF 03 VILNIUS 000447

SIPDIS

FOR CODEL KINGSTON FROM CHARGE D'AFFAIRES TOM KELLY

STATE FOR EUR/NB, H AND RM/F/DFS/FO/AA/CAA

E.O. 12958: N/A
TAGS: PGOV OVIP LH
SUBJECT: SCENESETTER FOR CODEL KINGSTON

REF: A. VILNIUS 432


B. STATE 074071

--------------
Introduction
--------------


1. Your visit to Lithuania will provide an opportunity to
thank Lithuania for its staunch and unwavering support in the
U.S.-led Global War on Terror, including its recent decision
to establish and lead a Provincial Reconstruction Team in
Chaghcharan, Afghanistan, and to commend its leadership in
promoting democratic initiatives in the region. Planned
meetings with President Adamkus and Speaker of Parliament
Paulauskas will afford you the chance to celebrate and
strengthen the already exceptionally friendly bilateral
relations the United States shares with Lithuania.

--------------
Lithuanian History in Brief
--------------


2. The rich culture of Lithuania goes back more than two
thousand years. Lithuanians are a branch of the Balts, who
probably settled in the region around 200 B.C. Lithuanian is
one of the oldest languages in Europe. The first written
mention of Lithuania was in the Annales Quedlinburgenses in
1009 A.D.


3. The Grand Duke Mindaugas established the first Lithuanian
state in 1230. He converted to Christianity briefly and was
crowned king of Lithuania in 1252. The Grand Duke Gediminas,
who reigned from 1316 to 1341, is credited with founding
Vilnius, at the confluence of the Neris and Vilnia rivers,
and a dynasty that united Lithuania and Poland from 1386
until 1795.


4. Lithuania progressively entered European culture. At the
Union of Lublin in 1569, the Polish-Lithuanian kingdom was
formally merged into a commonwealth headed by a monarch.
This union came under threat from Prussia, Austria, and
Russia at the end of the 18th century. In 1795, Russia
annexed most of Lithuania and tried to impose Russian culture.


5. On February 16, 1918, Lithuania regained its independence
and restored its statehood. Lithuania remained free for only
22 years. In 1940, the Soviet Union occupied Lithuania; Nazi
Germany overran the country the following year; and the
Soviets returned in 1944. Armed resistance against the
Soviets continued for several years after the end of World
War II. For more than 50 years under the Soviets,
Lithuanians held onto the goal of independence.


6. In February 1990, the anti-Communist popular movement

Sajudis won an overwhelming majority in free parliamentary
elections. That March, the Supreme Council, under the
leadership of Prof. Vytautas Landsbergis, restored
Lithuania's independence. Lithuania became a member of the
United Nations on September 17, 1991. The last Soviet
soldier left in August 1993. In April 2004, Lithuania joined
NATO. In May 2004, Lithuania became a member of the European
Union.

--------------
Background
--------------


7. Rapid economic growth and development characterize
Lithuania,s trajectory from Soviet occupation to a maturing
democracy and free-market economy. Politically, Lithuania
strives to deepen the transatlantic alliance and present
itself as an active participant in international political
fora. Our coalition partner in Iraq, ally in the United
Nations and NATO, and a leading exporter of democracy in a
difficult neighborhood, Lithuania has risen to donor status
farther afield in Iraq and Sudan. Lithuania,s footprint
goes far beyond what one would expect from a country of such
small size (population 3.5 million) and with such a short
time on the field. On the home front, Lithuania last year
weathered a turbulent presidential impeachment that put the
young democracy under international scrutiny. Closely
adhering to transparent democratic principles and procedures,
Lithuania returned a centrist, unifying figure to the
presidency.

--------------
Growing Pains of a Maturing Democracy
--------------


8. Lithuania inaugurated Valdas Adamkus on July 12 as its
fourth president since the restoration of independence in

1991. Adamkus, a former American citizen, previously served
as president from 1997 to 2002, when he lost his bid for
reelection to populist Rolandas Paksas. Adamkus regained the
presidency following Paksas' impeachment and removal from
office earlier this year in proceedings that rocked the
nation and tested the democratic institutions of the young
republic, and left Lithuania the dubious distinction of being
the only European democracy to have removed its head of
state. The process was bumpy, but largely transparent and
democratic. In the aftermath of the impeachment, Lithuania
played out a highly charged contest for the presidency that
pitted the centrist Adamkus against a candidate whose
populist agenda promoted increased social spending,
reconsideration of Lithuania's participation in Iraq, and,
most notably, decreased U.S. influence in Europe. Adamkus
cast his victory in this contest as confirmation of a foreign
policy agenda that highlights the importance of the U.S.
presence in Lithuania and Europe.


9. Lithuanian voters widely supported the country's entrance
into the European Union and NATO in 2004. These memberships
are the first steps in Lithuania's long-term political
strategy that envisions a leadership role in OSCE and ECOSOC,
membership in OECD, and active participation in NATO and the
EU.

--------------
Growing Economy
--------------


10. Lithuania is one of the fastest growing economies in
Europe. The country,s robust economic growth continues,
though it has slowed last year from 9.7 percent in 2003 to a
still enviable 6.7 percent. Analysts forecast annual average
real GDP growth of 5.7 to 7 percent for 2005 and 2006.
Domestic demand will continue to drive economic growth, as
households benefit from wage increases, falling unemployment,
and low lending rates, and Lithuania will look to attract
foreign investment to sustain long-term growth. Uncertainty
about the future of the oil supply and management of
Lithuania's Mazeikiu Nafta oil refinery, currently under
management of the major shareholder Yukos, could slow growth.
Disruptions in the flow of oil or the sustainment of recent
price hikes would most acutely affect the country's
manufacturing sector, which constitutes some 20 percent of
GDP. Annual average inflation, which was 2.9 percent at the
end of 2004, will rise in concert with electricity and gas
prices and wage costs, whi
le the trade deficit will widen as a result of the increasing
trade imbalance with Russia and other trading partners.

--------------
An Enemy of the U.S. is an Enemy of Lithuania
--------------


11. Common values, a history of mutual support, and common
goals for regional security bind Lithuania and the United
States. Lithuania continues to recognize a debt of gratitude
to the United States for having maintained a policy of
non-recognition of Baltic annexation throughout the years of
Soviet occupation. Following the restoration of Lithuania's
independence, the U.S. cemented the friendship, providing
political and financial support to Lithuania, welcoming the
country into the transatlantic alliance, and supporting
Lithuanian membership in NATO and the European Union.


12. Lithuania already is a well-established transatlantic
partner whom, although a new member of NATO, has proven to be
one of our strongest allies in the transatlantic alliance.
Lithuania currently has boots on the ground in Afghanistan in
support of ISAF and will lead a Provincial Reconstruction
Team in the Chagcharan region of Afghanistan. In Iraq,
Lithuanian soldiers serving under Danish and Polish command
conduct patrols, assist in maintaining public order, and are
involved with rebuilding and reconstruction efforts. The
British, Danish and Polish commanders have all commended
Lithuanian soldiers' skills and professionalism. The
Lithuanian Parliament has committed to support this
deployment through the end of 2005. Lithuanian soldiers have
also performed admirably as peacekeepers in the Balkans,
where 100 soldiers are contributing to the increasing
stability of this region.

--------------
Lithuania Active in the "Near Abroad"
--------------


13. Lithuania's accession to the European Union and NATO
opened new opportunities for the GOL to engage with its
neighbors to the east, most notably in the context of the
EU's "New Neighborhood" policy. Leveraging its historical
experience as part of the Soviet Union, Lithuania seeks to
assist former Soviet states transition to democracy and
integrate into European institutions such as the EU and NATO.
In Belarus, Lithuanian governmental and non-governmental
organizations work with nascent democratic forces both
bilaterally and through regional organizations such as
e-PINE. President Adamkus was instrumental in mediating the
election crisis in Ukraine, and Lithuania is one of the most
vocal advocates for Ukraine's bid to become a member of the
EU and NATO. Lithuania supports Moldova's aspiration to join
the EU and encourages the countries of the South Caucasus to
pursue European integration.

--------------
Lithuanian-Russian Relations
--------------


14. Lithuania works hard to maintain good relations with
Russia. Though rumblings are sometimes heard from Moscow
regarding NATO's air-policing mission and transit to
Kaliningrad, Lithuania has engaged Russia both bilaterally
and multilaterally to assuage Russian concerns across a
myriad of issues. Russian attempts to establish May 9 as an
internationally recognized day to commemorate the end of
World War II disturbed Lithuanians, since that date marked
the beginning of the Soviet occupation of the Baltics.
President Adamkus, after much deliberation, decided not to
accept Russian President Vladimir Putin's invitation to
participate in the May 9 celebrations in Moscow.

--------------
The Special Lithuanian-U.S. Relationship
--------------


15. Starting in the 19th century, a flood of Lithuanians fled
poverty and oppression in their homeland and immigrated to
the United States. These longstanding ties of family and
culture remain strong. After World War II, Lithuanians
received decisive moral support from the United States, which
refused to recognize the Soviet annexation of Lithuania.
After regaining their independence, Lithuanians have
continued to view the U.S. more favorably that most Western
Europeans. This reflects longstanding goodwill toward the
United States as well as the widely held view that the United
States is a necessary balance against lingering domination
from the east.

--------------
Preview of Your Visit
--------------


16. We are working to confirm meetings with the President and
Speaker of Parliament during your visit to Lithuania. Both
will be keen to discuss Lithuania's hopes to promote
democracy throughout the region, as well as the
Lithuanian-American relationship. Ambassador Mull will host
a reception in your honor on the evening of May 9. All of us
here at Embassy Vilnius very much look forward to your visit.
Kelly