AMBASSADOR LARSON'S COURTESY CALL WITH LATVIAN

S E C R E T SECTION 01 OF 02 RIGA 000088

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/15/2018
TAGS: PREL PGOV CVIS ECON NATO RS LG
SUBJECT: AMBASSADOR LARSON'S COURTESY CALL WITH LATVIAN
PRIME MINISTER GODMANIS

REF: A. RIGA 22

B. RIGA 55

C. RIGA 23

D. RIGA 36

Classified By: Ambassador Charles W. Larson for Reason 1.4(d).


1. (C) Summary. On February 14, Ambassador Larson met
Latvian Prime Minister Ivars Godmanis for introductory
discussions on a range of issues. They discussed
Afghanistan, Kosovo, Visa Waiver, and the Latvian economy.
End Summary


2. (C) Ambassador Larson paid his courtesy call on Prime
Minister Ivars Godmanis on February 14 to begin discussions
on topics of mutual interest. The Ambassador was joined by
DCM, Pol/Econ Chief, and Pol/Econoff (notetaker). Godmanis
opened the discussion by stressing the importance of Latvia's
strategic partnership with the United States. He then moved
to Afghanistan, which he called priority number one.
Godmanis stated that Latvia needs to "improve our capacity
and purchase equipment. . . . Our soldiers have to go south,
but they need equipment." (Comment: the Defense Minister
recently said that Latvian troops lacked the armor needed for
deployment in the south of Afghanistan. End Comment.)
Referring to Latvian police officers in Afghanistan, Godmanis
said that he needed more information on whether this had been
a useful deployment.


3. (C) Ambassador Larson expressed appreciation for Latvia's
participation in both Iraq and Afghanistan: "We remember
those who stuck with us." On Afghanistan, the Ambassador
thanked the GOL for its training operations there and
stressed the importance of allowing Latvian troops to go
wherever the fight may take them (rather than being
caveated). The Ambassador also praised Latvia's strong
relationship with the Michigan National Guard. Godmanis
remarked that the West "can't afford to fail" in Afghanistan.


4. (C) Godmanis then moved quickly through several disparate
topics. On the pending declaration of independence in
Kosovo, "It will be a tough job. . . . We are not sure what
the Serbs will do." He added that "Kosovo is a European
problem," as "Cyprus, the Romanians, and others" have
different views on the issue than other EU countries.
Godmanis mentioned the 7th Baltic Sea States Summit that will
take place in June and noted that many leaders from the
region will attend. Discussions at the event would likely
focus on energy, transport/transit, financial, and
environmental issues. The PM also briefly acknowledged the
recent incident in which Latvia expelled a Russian diplomat
for espionage (refs A and B): "We are still waiting what will
happen. It's a volatile situation."


5. (S) On security issues, the PM noted the upcoming visit
from DHS in March to continue discussions for Latvia's
possible entry into the Visa Waiver program (VWP). He
acknowledged that the recent passport scandal in Latvia (refs
C and D) had not helped Latvia's efforts to enter VWP.
Ambassador Larson thanked the PM for Latvia's cooperation in
the scandal and stressed that transparency and full
disclosure of all information when something goes wrong is
critical. The PM also mentioned his visit to the U.S. in
November of last year (when he was then Interior Minister)
and said the GOL would like to increase cooperation with the
U.S. in combating narcotics, internet crime, and money
laundering--as well as strengthen intelligence cooperation.
He added that, as Latvia considers streamlining its security
services, the country could use some technical assistance
from the U.S.


6. (C) On economic issues, the PM addressed the major
challenge of inflation. He said that an enormous amount of
money came into the Latvian economy (mostly from Scandinavian
banks) after the country entered the EU--and the country is
struggling to absorb these extra funds. He mentioned
European Commission President Barroso's visit to Latvia in
the coming days, and stated that climate and energy sector
issues would be high on the agenda. On EU greenhouse gas
emission caps, "It is not easy for emerging economy countries
to reach (such) parameters." The PM expressed support for
the proposed Blackstone purchase of Lattelekom shares from
Finnish/Swedish firm TeliaSonera: "We are speaking with them
(Blackstone) very regularly. . . . The hope is Blackstone
comes in and will do other investments."

Comment
--------------


7. (C) Godmanis was his usual voluble self throughout the
meeting, asking for updates on the U.S. primary season and
musing about the future of Iraq and Afghanistan. He showed

RIGA 00000088 002 OF 002


an interest in Ambassador Larson's background and made a
point to stress Latvians' affinity for the United States.
Godmanis concluded by urging Ambassador Larson to get to know
Latvian culture: "We are working to get economically equal
with the EU; but on culture it is vice versa."
LARSON