Identifier
Created
Classification
Origin
06VILNIUS98
2006-02-02 08:12:00
UNCLASSIFIED
Embassy Vilnius
Cable title:  

AMBASSADOR STRESSES CIVIL SOCIETY AND TOLERANCE IN PANEVEZYS

Tags:  KPAO PGOV LH 
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UNCLAS SECTION 01 OF 03 VILNIUS 000098 

SIPDIS

STATE FOR EUR/PPD and EUR/NB

E.O. 12958: N/A

TAGS: KPAO PGOV LH
SUBJECT: AMBASSADOR STRESSES CIVIL SOCIETY AND TOLERANCE IN PANEVEZYS

UNCLAS SECTION 01 OF 03 VILNIUS 000098

SIPDIS

STATE FOR EUR/PPD and EUR/NB

E.O. 12958: N/A

TAGS: KPAO PGOV LH
SUBJECT: AMBASSADOR STRESSES CIVIL SOCIETY AND TOLERANCE IN PANEVEZYS


1. SUMMARY: Ambassador Mull traveled to Panevezys, Lithuanias fifth
largest city, on January 19 to congratulate local officials on their
successful efforts to combat crime, lower unemployment, and develop
local industry. At the same time, the Ambassador expressed concern
over the emigration of the Lithuanian workforce and the challenges of
defending civil society, confronting "democracy fatigue", and promoti
tolerance of minority views. He expressed support for civil society
a meeting with local NGO representatives, toured a business with U.S.
ties, and encouraged young students to study and travel in America
during a high school speech. END SUMMARY.

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



2. The visit to Panevezys was the latest in a series of Ambassadorial
trips to regional cities. Strategically located on the Via Baltica
highway linking the Baltic capitals with Central Europe, Panevezys is
an industrial center in Northeast Lithuania. The city is home to
several major Lithuanian companies, including Ekranas, a large produc
of television tubes, and Kalnapilis, a brewery. However, small and
medium-sized companies remain the source of regional economic
development. The city was previously known as the "Lithuanian Chicag
because of organized crime's reputed presence there, but media report
and crime statistics indicate that the crime situation has improved i
recent years.

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Trip Themes
--------------


3. The Ambassador arrived in Panevezys bearing a message of praise fo
political leaders and law enforcement officials for their work in
combating crime, easing unemployment, and promoting economic growth.
At the same time, he registered concern about the regional implicatio
of youth emigration to points west, and inquired about rising public
cynicism about democratic institutions. The Ambassador also lauded
Lithuanias transition to a vibrant, free democracy and emphasized th
strong bilateral relationship, assuring interlocutors that Lithuania'
close relationship with the United States would continue.


4. The day in Panevezys also afforded the Ambassador the opportunity
promote economic cooperation between the United States and Lithuania
and consult with a local business on the regional business climate.
The Ambassador emphasized the importance of tolerance of minorities,

and civil society, and free expression in democracy. Finally, even
while acknowledging the hurdles of cost and paperwork formalities, th
Ambassador stressed the benefits of American higher education and
encouraged young Lithuanians to study and travel in the United States

--------------
A City on the Road to Success
--------------



5. At a meeting with political leaders from the city and surrounding
regions, interlocutors focused much of the discussion on economic
development and foreign investment. Panevezys Regional Mayor Povilas
Zagunis discussed the benefits and challenges associated with the
location of his city along the Via Baltica, a major route linking the
Baltic countries with Central and Western Europe. He also cited
Panevezys's strategic position at a crossroads of key transport links
to the port city of Klaipeda. Panevezys City Mayor Vitas Matuzas
acknowledged that public officials remained concerned about the
westward emigration of large numbers of Lithuanians, arguing that the
shrinking workforce was an important challenge nationwide.


6. In response to the Ambassadors question on whether the area had
seen signs of EU funds, Kupiskis Regional Mayor Leonas Apsega asserte
that the region has not yet benefited from EU structural fund support
Commenting that the world is getting smaller, Panevezys County
ty
Governor Gema Umbrasiene cited the collaborative links that her regio
has established with neighboring countries, such as Ukraine.

--------------
The Lithuanian Chicago Sheds Some Notoriety
--------------


7. In a city previously known as the Lithuanian Chicago because of i
highly publicized ties to organized crime, the Ambassador congratulat
local law enforcement officials for their progress in combating crime
Citing reports that the crime situation has shown signs of improvemen
in recent years, and stressing the important challenge that all
democracies face in protecting a free society, the Ambassador praised
his hosts for their substantial progress since his first visit to
Panevezys in November 2003. While recognizing this recent success, t
interlocutors still pointed to the ongoing crime-related challenges
they face including the institutional challenge of losing qualified
ed
police officers to better-paid professions. The Prosecutors and City
Police Commissioner also agreed with the Ambassador on the importance
of grappling with the vital issues of intellectual property rights an
trafficking in persons.

--------------
Succeeding in a Fragile Business
--------------


8. In a visit to one of Panevezys's successful glassmaking studios,
the Ambassador inquired about the difficulties his hosts. The owner
and founder of Glassremis, Remigijus Kriukas, cited excessive red tap
such as delays in obtaining permits for factory equipment. Operating
with American-made furnaces, Glassremis exports 82% of its total
production; one-fifth of these exports go to the United States.
Kriukas acknowledged the national challenge of workforce migration, b
could not point to any adverse effects on his own business.

--------------
A Staunch Defense of Civil Society
--------------


9. The day offered an important opportunity to heighten the profile o
civil society organizations in Lithuania. At a roundtable discussion
with NGO organizations, many of whom represented women, minorities, a
youth groups, the Ambassador drew attention to the troubling media
attacks against civil society, reaffirmed the vital role that these
organizations played in free society, and inquired about the danger o
declining public enthusiasm for democratic institutions. The civil
society representatives cited the importance of civic activism and
raised the issue of character education as a means of fighting
corruption. They mentioned the scarcity of funding as a primary
obstacle.


10. Many organizations lamented the ongoing problem of intolerance an
discussed the challenge for minority groups to integrate while
preserving their heritage and ethnic identities. A representative of
the Association of National Minorities bemoaned the waning prominence
of Russian culture and growing apathy in the ethnic Russian community
others challenged her view. Virginija Vaicekoniene of the Regional
Ethics and Leadership Institute stressed the importance of character
education in democratic societies, arguing that the most important ke
to democracys survival is the character of the people.

--------------
Welcoming Lithuanian Students with Open Arms
--------------


11. As he often does during his trips throughout Lithuania, the
Ambassador stopped at a local high school to reach out to young
Lithuanians. Speaking before over 150 students, the Ambassador
discussed American youth cultural trends, urged his audience to
consider studying in the United States, and sought to allay students
concerns about the visa application process. He presented an Embassy-
produced DVD that welcomed Lithuanians to visit America and outlined
opportunities available at American institutions of higher education.
Eager students took the opportunity to ask the Ambassador about the
qualifying exams that U.S. universities require, the Visa Waiver
Program, and the differences between American and Lithuanian
educational systems.

--------------
Media Coverage
--------------


12. The visit attracted wide media coverage from local media sources.
The Ambassador responded to questions from local newspapers and
television news. In an exclusive interview with a leading city
newspaper, the Ambassador focused on the strength of American-
Lithuanian friendship and cooperation, commented on Lithuanias
impressive economic growth, praised GOLs efforts to promote democrac
in neighboring countries, and complimented Panevezys on its law
enforcement successes. He also responded to questions on the Visa
Waiver Program, emphasizing our goal to welcome as many legitimate
Lithuanian visitors as possible to study and travel in the United
States.

--------------
COMMENT
--------------




13. Emerging from a rocky period of "Chicago" crime references and a
painful post-independence privatization process, Panevezys appears to
have turned a corner. Regional leaders will remain busy guarding
against a resurgence of crime, dissuading young workers from leaving
town, and attracting foreign investment. The citys diverse NGO sect
is an encouraging sign, as civil societys bright and active leaders
battle to spur civic participation and tolerance. This undercurrent
intolerance remains an impediment to democratic development; civil
society groups face an uphill road ahead as they work to raise the
profile of this important issue. End comment.

MULL