AMBASSADOR'S INITIAL CALL ON JUSTICE MINISTER

C O N F I D E N T I A L VILNIUS 000571 SIPDIS STATE FOR EUR/NB, EUR/OHI E.O. 12958: DECL: 10/30/2019 TAGS: PREL PHUM CJAN EINV LH SUBJECT: AMBASSADOR'S INITIAL CALL ON JUSTICE MINISTER SIMASIUS Classified By: A/DCM John Finkbeiner for reasons 1.4(b) and (d). ¶1. (C) SUMMARY: During her introductory call on Justice Minister Remigijus Simasius, Ambassador Derse heard that the GOL remains committed to passage of legislation providing compensation for expropriated Jewish communal property and to removing references to homosexuality from a controversial law governing the types of information that cannot be presented to minors. The Minister also asked whether the United States could provide any information to prove or disprove allegations that the CIA ran a prison in Lithuania for terrorist suspects several years ago. He requested assistance in getting the United States to recognize and respond to Lithuanian court rulings in child-custody and other cases, and said the GOL was working to ease regulatory barriers and make Lithuania more attractive to foreign, including U.S., investors. End summary. ¶2. (U) Ambassador Derse had her first meeting with Justice Minister Simasius at the ministry on October 30. Simasius is not a member of the Seimas (parliament) and was nominated for his post by the Liberal Movement party, the second largest faction in the four-party governing coalition. Before joining the government, Simasius, 35, was president of a conservative think tank, the Lithuanian Free Market Institute. ¶3. (U) The ambassador thanked Simasius for Lithuania's good record in fighting intellectual-property theft, noting that there have been about 100 prosecutions over the past year. Jewish Property Compensation -------------- ¶4. (C) The minister raised the issue of Jewish property compensation, saying he knew it had long been a priority for the United States. He said the government of Prime Minister Andrius Kubilius, unlike its predecessors, was committed to resolving the issue, even though discussion of paying out millions of dollars to the Jewish community at a time of financial crisis could be politically devastating. Simasius said the Cabinet and Prime Minister had decided to delay scheduling the compensation bill's first reading in the Seimas until after discussion of the budget, which calls for cuts in social benefits and other unpopular austerity measures, was completed. The ambassador said she understood the political need to balance difficult issues, but stressed the importance of staying on track to ensure that the compensation legislation was passed. She also encouraged the GOL to work with the Jewish community to ensure that the compensation bill met their needs as much as possible, and said she would continue to follow closely developments on the issue. CIA Prison Press Reports -------------- ¶5. (C) Minister Simasius said the GOL has received inquiries from the EU Commissioner for Justice and Home Affairs concerning allegations, first reported by ABC News, that Lithuania had hosted a CIA prison for terrorist suspects. "In Lithuania, discussion of this will continue to go on up to the moment when everything is clear," Simasius said. "If you could give us a response showing that something was or wasn't, I'd be appreciative." Ambassador Derse said she could not comment on matters related to intelligence, but promised to pass his request to Washington. Bilateral Legal Issues -------------- ¶6. (C) The minister told Ambassador Derse that Lithuania has experienced difficulty in getting recognition of Lithuanian court decisions in the United States, particularly in custody disputes and other family issues. The ambassador asked him to provide information about specific cases that have been problematic and promised to work with other parts of the USG to resolve the problems. Ban on promoting homosexuality -------------- ¶7. (C) The ambassador asked Simasius about the political genesis of legal amendments passed this summer by the Seimas to a law on protection of minors from inappropriate information. Those amendments, which passed and were then sustained after a presidential veto, will prohibit promotion of homosexual, bisexual or polygamous relations. They have been sharply criticized by European governments and local and international NGOs. Simasius said conservative elements in the ruling Conservative Party had proposed the amendments, and pointed out that his own party had voted against them. He said he hoped that the involvement of President Grybauskaite, who appointed a commission that has recommended removing the references to homosexuality, will "cool down the atmosphere in parliament" and allow the law to be amended again and stave off further criticism. Ambassador Derse said that such issues would certainly influence Lithuania's international image, and could adversely affect investors' willingness to do business in Lithuania. Easing business barriers -------------- ¶8. (C) Simasius said that Lithuania very much wants to attract foreign investment, including American investment, and that the GOL is working to modernize its economic regulations to make it easier and more attractive for businesses to operate here. Two current areas of focus are decreasing regulation and increasing flexibility in the labor market and cutting down on land-use restrictions and red tape. He said he thought Lithuania stacked up well against neighboring countries in its investment climate, but "we're trying to make it better." The ambassador said that Lithuania's strategic location, well-educated labor force and EU membership should make the country attractive for investors, and said she would encourage U.S. investors to consider Lithuania. Simasius said he considered fair treatment of investors a matter of justice and thus part of his responsibility, and encouraged the ambassador to let him know of any American investors facing bureaucratic or regulatory problems in Lithuania. DERSE