Identifier
Created
Classification
Origin
08TALLINN383
2008-11-04 12:20:00
CONFIDENTIAL
Embassy Tallinn
Cable title:  

SCENESETTER FOR SECDEF GATES' VISIT TO TALLINN

Tags:  PGOV PREL MARR MOPS NATO EN 
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C O N F I D E N T I A L SECTION 01 OF 04 TALLINN 000383 

SIPDIS

FOR SECRETARY GATES FROM AMBASSADOR PHILLIPS

E.O. 12958: DECL: 10/31/2018
TAGS: PGOV PREL MARR MOPS NATO EN
SUBJECT: SCENESETTER FOR SECDEF GATES' VISIT TO TALLINN

CLASSIFIED BY AMB. DAVE PHILLIPS FOR REASONS 1.4 (b/d)

C O N F I D E N T I A L SECTION 01 OF 04 TALLINN 000383

SIPDIS

FOR SECRETARY GATES FROM AMBASSADOR PHILLIPS

E.O. 12958: DECL: 10/31/2018
TAGS: PGOV PREL MARR MOPS NATO EN
SUBJECT: SCENESETTER FOR SECDEF GATES' VISIT TO TALLINN

CLASSIFIED BY AMB. DAVE PHILLIPS FOR REASONS 1.4 (b/d)


1. (SBU) SUMMARY: Mr. Secretary, I will be delighted to
welcome you to Tallinn on November 12-13. Estonia is a
steadfast Ally and your visit is an important sign of the
strength of the U.S.-Estonian bilateral relationship and
Estonia's commitment to NATO. In the wake of Russia's
invasion of Georgia and sensitivities related to Estonia's
own large Russian-speaking minority, the Government of
Estonia (GOE) is eager for assurances from you that Article
V of the Washington Treaty is fully in force. While
Estonia relies on NATO's security guarantee, the GOE fully
appreciates the fact that in order to be a consumer of
security guarantees, it also must be a provider of security
as well. As a result, Estonia has been an active partner
in international operations. Estonian soldiers stand side-
by-side with U.S. and NATO soldiers conducting difficult
combat operations in Iraq and Afghanistan. On October 22,
the Parliament extended Estonia's mandate in Afghanistan
through December 2009, raising the ceiling on the number of
troops deployed from 150 to 170. The path forward on Iraq
is less clear as Estonia needs to establish a new legal
basis for Estonian troops to remain in Iraq beyond 2008.


2. (C) SUMMARY CONT'D: Estonia is also a role model for
democratic reform and development in the former Soviet
states, and a strong proponent of NATO and EU enlargement.
The GOE has taken a leadership role in promoting NATO and
international cooperation on cyber security. During your
visit we hope you will be able to meet with the Prime
Minister, the President and the Minister of Defense. In
your meetings in Tallinn, it would be useful to:

-- Reaffirm the USG commitment to NATO's Article V security
guarantee.

-- Thank Estonia for its participation in the Iraq
coalition and share USG thinking on the way ahead.

-- Update USG plans for Afghanistan, ISAF and RC-South,
including any strategy development for southern

Afghanistan.

-- Recognize Estonian sacrifices in Iraq and Afghanistan.

--Welcome NATO's accreditation of the Estonian Cyber Center
as a NATO Center of Excellence. (Announce, if possible,
that the United States will now become a sponsoring nation
of the Cyber Center).

-- Urge GOE to meet its NATO commitment to spend 2 percent
of GDP on defense by 2010.

END SUMMARY.

THE STATE OF THE NATION: COALITION STABLE, ECONOMY LOGY


3. (SBU) Formed in April 2007, Estonia's center-right
three-party coalition is stable, and has benefited from
years of strong economic growth. The coalition's
objectives include a proactive, pro-western foreign policy
and a liberal, pro-business economic agenda. So far,
Estonia does not/not appear headed to become the "next
Iceland," but as Swedish banks control 70 percent of the
commercial banking sector in Estonia, the GOE is monitoring
Nordic financial health carefully.


4. (SBU) The economy, however, is under some strain.
Growth and direct investment are down. The Central Bank
predicts negative growth for 2008 and 2009. Declining tax
receipts forced the government to make significant budget
cuts this year (although the budget is balanced.)
Inflation (about 10 percent) and unemployment (about 6
percent) appear to have leveled off, so the biggest
immediate problem is keeping the state budget in balance in
the face of declining tax revenues.


5. (SBU) The violence that erupted last year in response to
the removal of a Soviet-era statue (the "Bronze Soldier"),
has not reoccurred. There has been minimal support from
Estonia's Russian-speaking minority (about one-quarter of
the population) for Russia's actions in Georgia, although
polls show that ethnic Estonians (who overwhelmingly
condemn Russia) and Russians (who largely condemn Georgia)
view events in Georgia through very different eyes.

TALLINN 00000383 002 OF 004


Despite the relative calm, Estonians and Russian speakers
do not mix freely. Russian speakers are not politically
active and as Estonian language skills are required for
government jobs, feelings of disenfranchisement can be
strong in the predominantly Russian-speaking areas of
Estonia.

THE ESTONIAN LEADERSHIP: STAUNCH FRIENDS OF THE U.S.


6. (U) Presidential elections in Estonia occur every five
years. The current Estonian President, Toomas Hendrik
Ilves, was elected on September 23, 2006. As Estonia is a
parliamentary democracy, the Presidency is a symbolic
office and the President holds no executive power. The
next presidential elections will be held in 2011.


7. (U) Parliamentary elections take place every four years;
members are elected by proportional representation. The
most recent elections occurred in March 2007. A center-
right coalition, led by Prime Minister Andrus Ansip, won a
combined 60 seats (out of 101 total) in the parliament.
There are three opposition parties in the Parliament. The
largest of these is heavily supported by the ethnic-Russian
minority. The next parliamentary elections are scheduled
to take place in 2011.


8. (C) While in Tallinn, we hope you will meet with
Estonian President Toomas Hendrik Ilves, Prime Minister
Andrus Ansip and Defense Minister Jaak Aaviksoo.

--President Toomas Hendrik Ilves was born in Sweden to
migrant parents, and grew up in the United States. He
attended high school in New Jersey and received degrees
in psychology from Columbia (1976) and the University of
Pennsylvania (1978). While President Ilves has no
constitutional authority, as a former Foreign
Minister he is still engaged on foreign policy issues.
President Ilves is fervently pro-American, strongly
supportive of Estonia's military engagements abroad, and
frequently outspoken about (and critical of) Russia.
President Ilves is hosting dinner on November 12 to launch
the NATO-Ukraine Consultations.

--Andrus Ansip has served as Prime Minister since April

2005. He espouses strong free market, pro-business views
and enjoys broad public support. In the March 2007
parliamentary elections which re-elected Ansip, he received
the most votes ever by an individual in Estonia's history.
Just after this electoral triumph, Ansip was tested by fire
when he decided to move a Soviet-era "Bronze Soldier"
monument, sparking wide-scale riots in Tallinn. Ansip's
steadfast leadership throughout elicited a surge in popular
support for the government. He is a staunch supporter of
the United States, saying (for instance) that "as long as
the U.S. needs Estonia (in Iraq),we will stay there." His
English is heavily-accented, but his comprehension is
extremely good.

--Jaak Aaviksoo has served as Defense Minister since early

2007. A PhD physicist, he spent almost his entire career in
academia and research. Prior to his current appointment,
Aaviksoo's only stint outside of academia was as Minister
of Culture and Education (1995-1996) and Minister of
Education (1996-1997). Although a relative outsider to
Estonian politics, Aaviksoo is considered ambitious and
outspoken; he has emerged as one of the most popular
members of PM Ansip's cabinet. Aaviksoo is a quick study
and takes an active hand in management of the Ministry of
Defense. Aaviksoo speaks excellent English.

ESTONIA IN INTERNATIONAL OPERATIONS: ALWAYS READY TO SERVE,
NEED SOME HELP ON IRAQ


9. (C) Estonia has one of the highest deployment rates in
NATO, with nine percent of its land forces committed to
international operations. Estonia participates without
caveats in combat missions in both Iraq and Afghanistan as
well as missions in Bosnia, Kosovo, Lebanon, and provides
support to NRF and EU Battle Groups. In Afghanistan, 140
Estonian forces are deployed with the U.K.-led Task Force
responsible for combat and reconstruction operations in
Helmand Province. Three Estonians have been killed in
Afghanistan, approximately 25 wounded. On October 22,
Estonia's Parliament voted to extend the Afghanistan
mission through December 2009. The bill passed Parliament

TALLINN 00000383 003 OF 004


with a majority in favor (and no votes opposing). Your
Estonian interlocutors will be interested in U.S. plans to
plus up our forces in Southern Afghanistan in 2009. (Note:
DM Aaviksoo will visit Estonian troops in Afghanistan one
week prior to your visit. End Note.)


10. (C) In Iraq, Estonia's 34-member Infantry Platoon is
embedded with U.S. forces and conducts counterinsurgency
operations just north of Baghdad. The GOE also has three
staff officers assigned to the NATO Training Mission-Iraq.
Two Estonians have been killed in Iraq, and approximately
25 wounded. Estonia's mandate to participate in Operation
Iraqi Freedom, predicated on UNSCR 1151, expires on Dec 31,

2008. Absent a new UNSCR, the GOE needs a new legal basis
for the Iraq mission. Legislation to extend the mandate
must be approved by the Cabinet and Parliament before
December 31 or Estonia may have to withdraw its troops.


11. (C) On October 22, the NSC briefed the 1+4+1
Ambassadors in Washington on the U.S.-Iraq Strategic
Framework and Status of Forces (SOFA) Agreement. The GOE
is still waiting for an invitation from the Government of
Iraq for Estonian troops to continue in the coalition. PM
Ansip and MOD Aaviksoo will be keenly interested in when
the U.S.-Iraq SOFA will be approved and how the U.S. can
help Estonia finalize a suitable legal basis for its own
participation. All Estonian interlocutors will want to
know why, ultimately, Estonia was chosen to be among the
1+4+1 countries.

RUSSIA/GEORGIA: THERE MUST BE CONSEQUENCES


12. (C) Estonia has close ties to Georgia and has been
fiercely critical of Russia's August 8 invasion. President
Ilves and PM Ansip have both demanded Russia withdraw its
troops from Georgia. President Ilves and Foreign Minister
Urmas Paet each traveled to Georgia in August. At the
October 22 Georgia Donor's Conference in Paris, the GOE
pledged USD 1 million in assistance to Georgia. Estonia
has already provided Georgia with humanitarian aid, and two
cyber specialists were dispatched immediately after the
crisis began to help the Georgian government in battling
cyber attacks. Estonia is also represented in the EU
monitoring mission and the OSCE monitoring group in
Georgia.


13. (C) Estonia has demanded a new peacekeeping force be
sent to South Ossetia, calling Russia "unfit" for
peacekeeping operations. Estonia supports establishment of
an (EU) Free Trade Agreement with, and visa-facilitation
regime for, Georgia (and revocation of similar EU visa
arrangements with Russia). During DHS Secretary Chertoff's
October 29 visit to Tallinn, President Ilves explored with
him whether anti-money laundering statues could be used as
a way to affect Russian behavior. The Estonian drumbeat,
even three-plus months after the invasion remains loud and
clear that "there must be consequences" (for Russia).

ESTONIAN DEFENSE AND SECURITY POLICY


14. (C) The war in Georgia has put a spotlight on NATO's
Article V guarantee of collective defense, a central tenet
in Estonian security policy. Since the August invasion
Estonian officials have sought assurances that NATO's
contingency planning is underway and that it will have a
significant and positive impact on Estonian security. The
Ministry of Defense and the Estonian Defense Forces (EDF)
are drafting Estonia's first Ten Year Defense Plan with the
goal of synchronizing the planning process with the NATO
ten-year cycle and linking resources and capabilities with
perceived threats. In light of Georgia, this process will
be reassessed to ensure that the current force structure is
capable of responding to a similar crisis in Estonia.

BALTIC AIR POLICING


15. (C) Thirteen NATO members conduct air policing for the
Baltics. The U.S. began its second rotation in October,
deploying four F-15s and 130 airmen of the 493d
Expeditionary Fighter Squadron to Lithuania for three
months. Estonia appreciates the U.S. role in the air
policing mission, and the current U.S. presence is
considered extremely valuable. The Baltic States have
asked NATO to continue air policing until 2018. Senior GOE
officials have said recently that events in Georgia

TALLINN 00000383 004 OF 004


'stressed' Estonian society, and revealed a desire for a
more visible NATO presence in Estonia. The Foreign
Minister has pointed out that Russian planes in Pskov are
only 300 kms from Estonia while NATO planes in Lithuania
were located 600 kms away.

NATO MAP FOR UKRAINE AND GEORGIA


16. (C) Estonia strongly supports offering MAP to both
Georgia and Ukraine at the NATO ministerial in December.
President Ilves, PM Ansip and other members of government
have argued that NATO must take some kind of decision in
December and that it is important not to move further away
from the gains made at Bucharest. In particular, the GOE
is concerned that a failure to act decisively would send a
message to Russia that it has a veto in NATO.

CYBER SECURITY: NOW MORE THAN EVER


17. (C) Estonia's Center for Cooperative Cyber Defense
(CCD) is a major source of pride for the GOE. In November
2007 the U.S. became the first country to send a
representative to the Center, though we are not officially
a "Sponsoring Nation" (Germany, Italy, Latvia, Slovakia,
Spain and Lithuania are currently Sponsoring Nations while
France, Hungary, Iceland, Romania, Slovenia, Turkey and
Greece have all stated their intentions to become sponsors
in the future). There have been indications that the U.S.
will join once the Center has NATO's blessing, but no
formal announcements have been made. The NAC approved
the Center's designation as a NATO Center of Excellence on
Oct 28. A deliverable for your visit could be your
announcement that the U.S. intends to become a sponsoring
nation.

ENERGY SECURITY


18. (SBU) The GOE is keenly focused on greater energy
independence as a strategic security issue. Currently
Estonia is self-sufficient for electricity, but depends on
Russia for all of its natural gas (roughly 17 percent of
total energy consumption). By 2016, however, Estonia must
either shut down or modernize its oil shale-fired power
plants (where electricity is generated). In the long-
term, the GOE is moving toward reducing its dependence on
oil shale, making up the difference in supply with nuclear
energy and wind plus gas-powered turbines. Estonia will
remain 100 percent dependant upon Russia for natural gas.
However, Estonia pays market price for the gas it buys from
Russia and has not experienced politically-motivated
interruptions of supply.


19. (SBU) A key decision the GOE is facing is where to
obtain the nuclear-generated electricity. There is growing
support in the public, Parliament and the GOE for building
a small nuclear plant in Estonia. The GOE has also
expressed interest in joining a possible new plant in
Lithuania or in Finland. Estonia plans to build a second
undersea cable to Finland, which will further link the
Baltic and Nordic electricity grids. The GOE supports
linkage of Estonia's electricity grid with the western
European grid. The bottom line: In the EU, at least
Estonia is looking west for its energy solutions, not east.


20. (U) Again, welcome to Estonia. I look forward to
seeing you very soon.