DENMARK HOSTS COUNCIL OF BALTIC SEA STATES MINISTERIAL

UNCLAS SECTION 01 OF 03 COPENHAGEN 000282

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SUBJECT: DENMARK HOSTS COUNCIL OF BALTIC SEA STATES MINISTERIAL


1. (SBU) Summary: Baltic region officials decided to continue
efforts to make the Council of Baltic Sea States (CBSS) more focused
on concrete projects to integrate the region's energy infrastructure
and promote other links at a ministerial meeting on June 4 hosted by
Denmark as outgoing CBSS president. Participants anticipated a
Baltic region strategy soon to be released by the European
Commission, and urged implementation of the EU Baltic energy
interconnection plan and the Helsinki Commission Environmental
Action Plan. Belarus, Spain and Romania were admitted as observers,
joining the U.S. and others. The next CBSS Summit will be hosted by
Lithuania in the summer of 2010. Observer states are not
customarily invited to the biennial summits. End Summary.


2. (U) Background: REO observed the Council of Baltic Sea States
ministerial meeting hosted by Denmark and held in Helsingor,
Denmark, on June 4. The CBSS is a political forum for
inter-governmental cooperation among the 11 Baltic sea states and
the European Commission, created in Copenhagen in 1992. Since 1998,
the CBSS has been supported by a permanent secretariat based in
Stockholm. The CBSS presidency rotates among member states
annually, and is capped by biennial summits or ministerial meetings.
The last heads of state summit took place in Riga in June 2008.
CBSS member states include Denmark, Estonia, Finland, Germany,
Iceland, Latvia, Lithuania, Norway, Poland, Russia, and Sweden.
Observer states included the U.S., France, Italy, Slovakia,
Netherlands, Ukraine, and the United Kingdom.


3. (U) The biennial ministerial meeting, hosted by Danish FM
Moeller as Denmark concluded its one-year presidency and prepares to
pass the baton to Lithuania in July, was attended by Russian FM
Lavrov, Norwegian FM Stoere, Estonian FM Paet, Icelandic FM
Skarphedinsson, Latvian FM Riekstins, and Lithuanian FM Usackas.
Finland was represented by its European Affairs Minister, Germany by
its Minister for State for Europe, Poland by its Undersecretary of
State, and Sweden by its State Secretary for Foreign Affairs, and
the EC by its Vice President, Siim Kallas. A press conference was
held afterwards with statements by officials recorded, but no
independent press appeared to be present or questions asked.


4. (SBU) Highlights: General
--------------

-- A 15th Ministerial Session Declaration was agreed upon and issued
(available at the CBSS website at http://www.cbss.org/
Summits-and-Council-Ministerials).

-- The Helsingor Declaration highlights progress made in the areas
of CBSS reform, external cooperation, environment, economic
development, energy, education and culture, civil security and the
human dimension (including a CBSS task force against trafficking in
human beings).

- Denmark reported success implementing the Riga summit reform
agenda, intended to convert the CBSS from a political dialogue to
one more focused on concrete cooperation projects. This included
revising the terms of reference of the CBSS and its Stockholm-based
secretariat, which is funded jointly by all member states, according
to formula.

- All members anticipated the submission within weeks by the EC to
the Euro-parliament of a Baltic Sea strategy communication, and
praised progress made on an EU-Baltic energy market interconnection
plan, which all agreed should now be implemented.

- The EC representative said the Commission's much anticipated
Baltic strategy would be released within weeks, and would create no
new institutions and involve existing funds only. Five billion
Euros from the EU recovery plan would offer some initial resources
for projects to improve the environment, promote balanced
development, and make the region safer and more secure, and more
attractive to tourists.

- Several member states noted the importance of streamlining
regional cooperation, while welcoming the imminent EC strategy to an
existing Baltic institutional framework, consisting of the EU's
Baltic energy interconnection plan and the 2007 Helsinki Commission
on the Environment (HELCOM) Action Plan on the Baltic Sea
environment.

-- FM Lavrov cited Russian priorities in small business creation,
innovative development, and the Baltic Sea environment, noting
Russia is current president of HELCOM.

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- Germany offered to chair a new expert group on maritime traffic.

-- Sweden noted its 650,000 Euro contribution to the work of the
anti-TIP task force and praised the contribution of the nuclear and
radiation safety expert group. Sweden reported that Latvia,
Lithuania and Sweden are currently developing an energy
interconnection by cable under the Baltic Sea. As incoming EU
President, Sweden will work for the adoption of the EU Baltic Sea
strategy communication.

-- Iceland expressed appreciation for regional solidarity in this
time of financial crisis, announced its government's intention to
request the permission of its parliament to apply to join the EU
(Denmark immediately offered its support),and noted Icelandic
expertise in geothermal energy.


5. (SBU) Highlights: Observer Issues
--------------

- Belarus, Spain and Romania were admitted as observers, joining
the U.S., France, Italy, Slovakia, Netherlands, Ukraine, and the
United Kingdom. Poland welcomed the three new observer states, and
said the door to full membership should stay open but all must meet
democratic and human rights standards.

-- The CBSS secretariat will organize a meeting with observer state
representatives in Stockholm in October. They will invite Embassy
Stockholm to send representatives to that meeting to discuss how
observer states can become more involved with CBSS projects and
expert groups.

- Decisions on the applications of Belarus and France to become full
members were deferred. (SBU Note: President Sarkozy's request for
France to become a full CBSS member may involve an attempt at
regional balancing of its Mediterranean initiative. End Note.)

-- In a post-ministerial session with observer states, REO expressed
USG appreciation to the Danish hosts, and to the CBSS for our
observer status; we follow inter-governmental cooperation in the
region with interest.


6. (SBU) Highlights: Energy/Climate Issues
--------------

- The Lithuanian FM cited the Nordstream undersea Baltic gas
pipeline project as an example of one which divides rather than
unites the region. In contrast, FM Lavrov praised the project as
providing energy security to Europe and adhering to "strict
(environmental) standards." He expressed surprise at "artificial
complaints" by "some (unspecified) countries."

- Denmark emphasized the success of the Baltic Sea Region Energy
Cooperation (BASREC) ministerial conference in February, where it
was decided that BASREC would produce a statement on climate and
energy issues to the COP-15 climate conference in Copenhagen in
December.

-- The Norwegian and Danish FMs highlighted energy "greening"
efforts (with the Norwegian touting carbon capture and storage
(CCS),the Dane wind power) in the plenary session. Moeller
stressed the technologies are "already in place to meet stronger
targets (at COP-15)," with the exception of CCS.

-- FM Stoere said the recent CCS conference in Bergen would provide
important input to COP-15. Norway's goal is to become an exporter
of emissions-free gas fired electric power. He also noted that
Norway will bring to COP-15 a message of urgency from the recent
Tromso Arctic meetings on the need to reduce emissions of short
lived climate forcers like black carbon (soot),tropospheric ozone,
and methane.

- At the request of CBSS, Danish energy official Hans Jorgen Koch
organized a parallel seminar to highlight a study on creating a
northern European "Green Valley" involving energy infrastructure
interconnections, energy efficiency gains (including modernization
of existing inefficient coal plants),deployment of more renewable
energy and carbon sequestration and storage technologies, and
rehabilitation of existing district heating installations.


7. (SBU) Looking Ahead
--------------

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- Lithuania will assume the Presidency of the CBSS for the next
year on July 1. Lithuanian FM Usackas noted that while initially
the Baltic states were leery of regional groupings like the CBSS as
a potential diversion from full EU and NATO membership, "we are now
more mature" about regional cooperation and indeed wish to expand
it.

-- FM Usackas said Lithuania's priorities for its CBSS presidency
include a focus on sharing innovation; cross-border cooperation, and
clean environment and safe living conditions for Baltic Sea
residents. Encouraging more active participation by observer states
as well as integrating the Kaliningrad region (Poland also voiced
support for this) and Belarus into CBSS activities were also
priorities. The Lithuanian government would host an international
conference on radiation protection and nuclear safety in Vilnius on
September 24, and conferences on Baltic Sea fish stocks and control
and prevention of trafficking in persons in the first half of 2010.

-- The next CBSS Summit will be hosted by Lithuania in the summer of

2010. Observer states are not customarily invited to the biennial
summits, we were told, but the decision would be Lithuania's.

-- FM Usackas said Lithuania would like to reduce border crossing
times and add Russian citizens of Kaliningrad to a visa-free regime.
Russian FM Lavrov and echoed this goal in his intervention.

-- FM Lavrov expressed concern the CBSS had not attracted greater
international collaboration. He suggested adding another meeting to
the annual ministerial/head of state summit cycle, to be held at the
deputy ministerial level. He also proposed CBSS make more effort to
reach out to other regional groupings, including the Barents Council
and the EU's Northern Dimension. Russia offered to host such an
outreach meeting. FM Moeller responded by calling Lavrov's proposal
"interesting," noting it would be for Lithuania to resolve as
incoming President.

MCCULLEY