Identifier
Created
Classification
Origin
07RIGA290
2007-04-23 15:19:00
CONFIDENTIAL
Embassy Riga
Cable title:  

SCENESETTER FOR LATVIAN PRESIDENT VIKE-FREIBERGA'S

Tags:  PREL PGOV CVIS MOPS LG 
pdf how-to read a cable
VZCZCXRO3784
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHRA #0290/01 1131519
ZNY CCCCC ZZH
P 231519Z APR 07
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC PRIORITY 3951
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 RIGA 000290 

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/23/2017
TAGS: PREL PGOV CVIS MOPS LG
SUBJECT: SCENESETTER FOR LATVIAN PRESIDENT VIKE-FREIBERGA'S
VISIT TO WASHINGTON

REF: RIGA 192

Classified By: Ambassador Catherine Todd Bailey. Reason: 1.4 (D)

C O N F I D E N T I A L SECTION 01 OF 03 RIGA 000290

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/23/2017
TAGS: PREL PGOV CVIS MOPS LG
SUBJECT: SCENESETTER FOR LATVIAN PRESIDENT VIKE-FREIBERGA'S
VISIT TO WASHINGTON

REF: RIGA 192

Classified By: Ambassador Catherine Todd Bailey. Reason: 1.4 (D)


1. (C) Summary: Latvian President Vaira Vike-Freiberga will
make her final official visit to Washington the week of April

30. In her eight years in office she has been a leader in
securing democratic values in Latvia and bringing it into the
EU and NATO, and a force in supporting others who wish to
make a similar transition. In typical fashion, she is not
going out quietly, but forcefully pushing against the
influence of moneyed interests in Latvian politics and
promoting the continued adherence to democracy. She will
press for Washington to maintain a strong interest in Latvia,
noting that much work remains here, urge continued support
for Latvia's military transformation, and advocate for
greater economic ties between the two countries. She will of
course raise Latvia's membership in the visa waiver program.
From our side, we need to thank her for her leadership in the
forward march of freedom and stress the importance of
continued Latvian activity in this area, offer support for
efforts to increase Latvian troops in Afghanistan, and stress
the importance of transparency and the rule of law.
Vike-Freiberga's plans post-presidency are not yet known, but
her candidacy for the UN SYG position last year makes clear
that she does not plan to fade off into the sunset. End
summary.

The trip
--------------

2. (SBU) President Vike-Freiberga will visit the United
States April 29 - May 6. During this time, she will have her
final meetings in Washington before leaving office in early
July. In addition to meetings at the White House and at the
State Department, she is scheduled to see Speaker Pelosi and
host a reception marking 85 years of unbroken Latvian - U.S.
relations. She will also be the guest of honor at the
American Jewish Committee's (AJC) annual dinner on May 3.


3. (C) Vike-Freiberga epitomizes Latvia's recent history. A
WWII refugee whose family fled to Germany, she grew up in
Canada but never lost her ties with Latvia, doing her

academic research on Latvian national folk songs. While
achieving stature in international academic circles, her top
priority always remained restoring the independence of
Latvia. When that happened in 1991, she returned to help her
country make the difficult transition from communism. Her
election to the presidency in 1999, her first political
position, was something of a fluke. She as not backed by any
political party and electing a woman was not expected given
Latvian cultural views of the time. But she was chosen as
the safe and neutral candidate when the parliament could not
agree on other choices. The politicians had no idea what
they were getting.

Her Presidency
--------------

4. (C) Constitutionally, Latvia's president has rather
limited powers, but Vike-Freiberga has used the power of her
personality and intellect to raise the profile and stature of
the office both at home and abroad. Outside of Latvia she
has been a fierce critic of totalitarian regimes and a strong
supporter of advancing freedom and democracy. She has pushed
the GOL to engage more actively to support democracy in
Ukraine, Georgia and Moldova. She was an early and
consistent supporter of our efforts in Afghanistan and Iraq
and a critic of repressive regimes in Belarus, Burma and
elsewhere. She believes that Latvia's experience, and her
personal history, offer an opportunity to engage far more
actively than Latvia's small size would normally warrant.
She was a leader in bringing Latvia into the EU and NATO and
a key reason for the Alliance agreeing to hold its 2006
summit in Riga -- certainly a highlight of her tenure in
office. Her relationship with Russia has been difficult but
pragmatic. While recognizing the economic necessity for
Latvia of good relations with the eastern neighbor,
Vike-Freiberga has not pulled any punches in criticizing
Soviet actions in Latvia or the democracy deficit in Putin's
Russia. Yet she strongly supported the recent signing of a
border treaty with Russia and hopes for a visit to Moscow
before the end of her term.


5. (C) At home, Vike-Freiberga has used the "bully pulpit" of
the President's office quite effectively. Her strong and
widespread popularity mean that few, if any, politicians
criticize her publicly. Her efforts to call attention to
backroom deals and middle of the night government decisions
have slowed the rate at which oligarchs increase their power
in Latvia. She has been a voice for tolerance and inclusion
of all people, for fighting corruption, and for increased
accountability in government. In her last year in office,
she turned back laws on anti-discrimination that excluded

RIGA 00000290 002 OF 003


sexual orientation as a protected category (contrary to EU
directives),rejected lustration of an incomplete set of KGB
files (much of the material was taken back to Moscow in the
waning days of the USSR),and spoke out against an attempt to
slide a sweetheart privatization deal through at the height
of the summer vacation season.


6. (C) Her strongest actions of late were reserved for
attempts to change the oversight of Latvia's security
services (reftel). She truly felt that these changes would
have allowed oligarchs and their associates to have greater
insight into (and to interfere with) the operations of law
enforcement organizations and would have called into question
Latvia's ability to protect classified information received
from Allies and friends. For the first time ever, she
invoked a clause in the constitution that allows her to delay
implementation of a law for two months while signatures are
gathered for a referendum. While it remains uncertain if
enough signatures will be collected for a referendum, her
action stunned the political elite here and the parliament
moved to revoke the laws in record time. The subsequent
arrest of Ventspils mayor Aivars Lembergs on corruption and
bribery charges only reinforced in the minds of many common
people that Vike-Freiberga was the bulwark to protect Latvia
from government by the richest.

Her agenda
--------------

7. (C) While Vike-Freiberga comes to Washington on something
of a valedictory tour, she will have a full agenda. Topping
that list will be ensuring that the U.S. continues to take an
interest in Latvia. She believes that U.S. engagement is
essential to ensuring the continued development of rule in
law in Latvia, especially as EU states are unwilling to
criticize a current member in the same way as they would a
candidate. She fears that U.S. attention has flagged since
Latvia made it in to the EU and NATO and following the two
Presidential visits here in May 2005 and November 2006.
President Vike-Freiberga has been particularly appreciative
of our efforts to support the transformation of Latvia's
military. She takes an active interest each year in our FMF
and IMET allocations and has expressed concern at the
declining levels. Vike-Freiberga will note that Latvia has
been with us in Iraq for four years, where it has lost three
soldiers, but the troops will be coming out this summer as
security in the Latvian area of activity is handed over to
the Iraqis. Nevertheless, Latvia plans to leave as many as
15 soldiers behind to assist with training and headquarters
activities. Latvia has also been a reliable partner in
Afghanistan and, as the contribution in Iraq draws down,
looks to increase the size of its ISAF commitment. She may
ask for our assistance in making that happen. The President
will also be interested in our assessments of the latest
developments and future outlook in both Iraq and Afghanistan.
She will also want the latest U.S. thinking on the future of
NATO's air policing mission for the Baltic States.


8. (C) The President is very focused on increasing commercial
ties between Latvia and the United States. We sometimes have
a challenge in showing her just how well we are doing. Given
Latvia's size and location, we will never be the top investor
here, but our activity is growing very quickly. Total
Foreign Direct Investment from the United States into Latvia
grew significantly in 2006, with nearly USD 110 million in
new investment, one-third of the total amount invested in the
previous ten years combined! Since 2002, the amount of US
FDI in Latvia has doubled. In the past six months, General
Electric and Hyatt Hotels have announced significant new
investments in Latvia. We agree with Vike-Freiberga that the
economic links between the two countries reinforce our close
political ties, especially as commercial ties are tangible
and help make the bilateral relationship real to the people
of Latvia. Our 2006 pan-Baltic trade and investment
conference and this June's energy forum will help increase
the visibility of Latvia for American businesses and
hopefully contribute to increased investment. The President
may raise the continuing issue of Liepajas Metalurgs,
Latvia's largest private employer that faces anti-dumping
duties on its exports of steel rebar to the United States.
She may push for Latvian membership in the OECD as a sign of
our strong economic ties.


9. (C) Vike-Freiberga will raise Latvia's participation in
the Visa Waiver Program in her meetings. It is a domestic
political imperative. She welcomed President Bush's
announcement in Tallinn on administration efforts to create
greater flexibility in the program and appreciates recent
efforts by DHS to increase dialogue with Latvia on steps it
can take to enhance security efforts. She will look for an
administration update on progress and will use her meeting
with Speaker Pelosi to make the case to Congress.


RIGA 00000290 003 OF 003


Our response
--------------

10. (C) We would encourage Washington interlocutors to thank
Vike-Freiberga for her leadership on the freedom agenda and
stress the importance of Latvia continuing to tell its story
and share its experience to benefit others. We should
encourage their active engagement in the EU's neighborhood
policy. As a neighbor, Latvia has a particularly important
role to play in fostering democratic change in Belarus.
Comparing notes on the latest developments in Russia and
getting her view on Latvian - Russian relations would also be
helpful.


11. (C) It is important to acknowledge that Latvia has backed
up its words with actions. Among NATO members, it has one of
the most active deployment rates to stabilization missions on
a per capita basis. Latvian officials have fully coordinated
with us on their drawdown in Iraq and increase of troops in
Afghanistan and we should not revisit the decisions.


12. (C) President Vike-Freiberga also needs to hear that we
attach great importance to further strengthening the rule of
law and increasing transparency in Latvia. It will bolster
her efforts to deal with any backsliding on these principles
by the government in her waning days in office and strengthen
her message that this is essential for Latvia's future. She
also needs to hear that this is important for American
businesses and is one of the most important things for
American investors to consider about the business climate in
Latvia. The public announcement, which could come during her
visit, that Latvia is being removed from the Special 301
Watch List will be a sign that we do acknowledge progress in
these areas and demonstrate that concerted efforts to address
thorny issues like IPR do pay off and improve Latvia's image
in the international business community.


13. (C) After some initial hesitation in her early days in
office, the President has become an advocate for Latvia
dealing fully and openly with the Holocaust activity that
occurred here, leading to the AJC invitation. We expect that
the President will hear from the AJC their disappointment at
the stalled process for restitution of Jewish communal
property and heirless private property seized in the
Holocaust. (Comment: Latvia completed restitution in the
1990's for all private property, including Jewish property,
seized by the Soviet or Nazi regimes for which living heirs
existed. End comment.) USG should add our voice of
disappointment that the government and local Jewish community
had a deal that was painstakingly negotiated and from which
the government walked away when a leading Latvian oligarch
expressed his opposition. That the Parliament refused even
to send the bill to committee demonstrated a serious lack of
political leadership. The President has been a helpful voice
on the restitution issue in general, but rather muted in her
criticism of the way this fell apart last autumn.


14. (C) We also raise one note of caution: A Latvian
journalist, Ilze Juanalksne, was the European regional
recipient of the Secretary's "International Women of Courage"
Award. There is a negative personal history between the
President and Juanalksne, related to an unflattering term the
journalist used about the President in a candid conversation
with a colleague caught on tape. It would not be wise for
interlocutors to raise Juanalksne's receipt of the award to
Vike-Freiberga.
BAILEY