Identifier
Created
Classification
Origin
06RIGA923
2006-11-06 16:04:00
CONFIDENTIAL
Embassy Riga
Cable title:  

SCENESETTER FOR BILATERAL BETWEEN PRESIDENT BUSH

Tags:  PREL OVIP PRESIDENT LG 
pdf how-to read a cable
VZCZCXYZ0003
PP RUEHWEB

DE RUEHRA #0923/01 3101604
ZNY CCCCC ZZH
P 061604Z NOV 06
FM AMEMBASSY RIGA
TO RHEHNSC/NSC WASHDC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 3514
INFO RUEKJCS/SECDEF WASHDC
RUEHNO/USMISSION USNATO 2140
C O N F I D E N T I A L RIGA 000923 

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/06/2016
TAGS: PREL OVIP PRESIDENT LG
SUBJECT: SCENESETTER FOR BILATERAL BETWEEN PRESIDENT BUSH
AND LATVIAN PRESIDENT VAIRA VIKE-FREIBERGA

Classified By: Ambassador Catherine Todd Bailey for Reason 1.4(d)

C O N F I D E N T I A L RIGA 000923

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/06/2016
TAGS: PREL OVIP PRESIDENT LG
SUBJECT: SCENESETTER FOR BILATERAL BETWEEN PRESIDENT BUSH
AND LATVIAN PRESIDENT VAIRA VIKE-FREIBERGA

Classified By: Ambassador Catherine Todd Bailey for Reason 1.4(d)


1. (C) Mr. President, we are extremely honored that you will
visit us November 28-29. Over two years into NATO and
European Union membership, Latvia has emerged as a
significant international player, despite its modest
population and resource base. Latvia stands out as a
successful post-Soviet society that has become a respected
voice in the international community. Strong memories of
occupation and oppression strengthen Latvia's resolve to
reach out to countries near and far striving to join the
forward march of freedom. Latvia has troops on the ground in
Iraq and Afghanistan, and remains solidly Transatlanticist in
its orientation. The country remains one of the fastest
growing economies in the European Union. Its geographic
position offers great potential as a stepping-stone for U.S.
exports and investors. Embassy Riga daily makes it a
priority to expand bilateral trade and investment. Latvia's
support for pro-market, pro-free trade policies is important
to the U.S., especially in European and international
organizations. Your meeting with President Vaira
Vike-Freiberga provides an excellent opportunity to reinforce
our partnership with Latvia in projecting freedom, democracy,
and market-based prosperity.

President Vike-Freiberga
--------------


2. (C) Latvia's hosting of the summit is a real capstone for
President Vaira Vike-Freiberga and what she will add to her
legacy. It is indicative of the high personal regard in
which she is held within the alliance that a country of
Latvia's small size would host the summit. But her excellent
reputation extends beyond Europe. Her candidacy for
Secretary General of the United Nations, with an emphasis

SIPDIS
that selection of this important post should be based on
merit rather than a regional rotation, that it was time for a
female Secretary General, and the need for reform at the UN,
was short but she rapidly moved into third place--even though
some candidates had been in the race for nearly two years.
Her performance in the race will likely open doors for her as
she considers her options after her term in office ends next

July.

Expanding Bilateral Trade and Investment
--------------


3. (U) Latvia's open, agile and expanding market-oriented
economy provides U.S. companies a promising export and
investment destination in a newly-enlarged EU. The country
has created a very business friendly environment that is
attractive to foreign companies, and the country is
experiencing explosive GDP growth (10.2 percent in 2005). In
May of this year, Embassy Riga and the Government of Latvia
staged an extremely successful Pan-Baltic Trade and
Investment Conference focused on American business.
President Vike-Freiberga opened the conference (with the
Prime Minister in attendance) to an audience of approximately
150 business people from the U.S. and the Baltic states. She
also held private meetings on the margins with a number of
the U.S. businesses that attended--to thank them and
encourage further trade and investment. At the conclusion of
the conference, two firms announced plans to expand their
presence in Latvia. In many ways, Latvia is still a land of
discovery for Americans and American companies, and
strengthening economic ties between Latvia and the United
States is a top priority for this Embassy.


4. (SBU) American companies have invested more than 350
million dollars in Foreign Direct Investment in Latvia during
the last decade. The financial sector is expanding rapidly,
and GE Money is an American firm taking full advantage of
these opportunities. The company entered the Latvian market
in 2004 and has grown extremely quickly. GE Money is in the
process of acquiring a local bank so that it can further
expand its presence in Latvia and become a full service bank.
There are excellent prospects in manufacturing as well.
Earlier this year, American door and window manufacturer
Jeld-Wen opened a wood fiber plant near to town of
Aizkraukle. This represented a 60 million dollar investment,
and is the single largest foreign investment in the
manufacturing sector in Latvia in the past decade. In
October, U.S. firm New Century Holdings began construction of
a new glass manufacturing facility called Groglass. This
facility will use cutting edge technology to produce a
special type of glass that has increased transparency (allows
more light to pass through). The amount of the investment in
this new facility is expected to be around 30 million
dollars. Another sector presenting opportunities to American
firms is infrastructure. We expect a major American hotel

chain to open in Riga by 2010.

Elections
--------------


5. (SBU) Latvia's October 7 parliamentary elections, the 5th
since independence was restored in 1991, provided a vote of
confidence in the incumbent minority government of Prime
Minister Aigars Kalvitis. Kalvitis' government has focused
on low taxes and creating a pro-business environment, while
building good relations with the US and Europe and
simultaneously working to improve the strained relationship
with Russia. Kalvitis will continue as PM and little change
in policy is expected as a result of the election. The big
surprise in the election was the unexpected success of the
center-left, Russian-oriented Harmony Center party which
bested its more strident competitor, a party named For Human
Rights in a United Latvia (PCTVL).

Tolerance
--------------


6. (C) One political theme that I hope you can touch on
during your meeting with President Vike-Freiberga is
tolerance, inclusion and respect for others. One of the
legacies of Soviet rule is a distrust of differences and a
tendency to focus on the past rather than looking forward.
This manifests itself in a variety of ways. Attacks on
individuals of color, including an Embassy family member,
attributable to racism are too often chalked up to
"hooliganism." Attempts by Riga's small gay community to
hold a pride march were met by violence and the interior
minister said that securing the event would be a bigger
security challenge than the NATO Summit. These attacks
violate basic human rights. In addition, there is still
tension between ethnic Latvians and the sizable ethnic
Russian population, particularly over language issues. When
you were here in May 2005 you stressed that Latvia is now a
multi-ethnic society that has the responsibility to reach out
to all who share the future of Latvia. Your continued
assistance in stressing this message would be greatly
appreciated.

Visa Waiver
--------------


7. (C) Latvia has long advocated entry into the Visa Waiver
Program (VWP),and the Latvians assiduously raise this issue
at every opportunity with U.S. Government officials who visit
the country. To most Latvians, admission to the VWP would
symbolize that Latvia is fully accepted in the community of
Western nations and that the US fully recognizes Latvian's
contributions. Latvia has taken a number of steps to become
compliant with VWP criteria. For example, the country will
soon begin issuing biometric passports that include digital
facial recognition. While the non-immigrant visa refusal
rate for Latvians has dropped in recent years, it still
remains substantially higher than the 3 percent permissible
under VWP legislation.


8. (SBU) My Embassy team and I believe that your visit will
highlight to the Latvians the strength of our bilateral
relationship and continue discussions on some of the economic
and social issues that are crucial to Latvia's future
success. It is an honor to have you visit twice in 18 months
a country as you well know that serves as a very strong
partner.
BAILEY