Congressional Documents
Statement by Marc Grossman
Assistant Secretary of State for
European and Canadian Affairs
U.S. POLICY TOWARD ESTONIA, LATVIA AND LITHUANIA
European Subcommittee
Senate Foreign Relations Committee
July 15, 1998
Mr. Chairman, it is a pleasure to appear before you today to discuss
U.S. policy towards the Republics of Estonia, Latvia and Lithuania.
Let me first thank you and your colleagues in the Senate and the House
for your strong support for our Baltic policy. Our joint efforts have
led to many of our accomplishments. I would also like to thank you for
scheduling the hearings tomorrow for our ambassador-designates to
Estonia and Latvia.
Mr. Chairman, this administration is proud of its Baltic policy.
Secretary Albright often refers to the signing ceremony of the
U.S.-Baltic Charter in the East Room of the White House this past
January as one of the great days in her tenure as Secretary of State.
At that signing ceremony, President Clinton said "NATO's door is and
will remain open to every partner nation, and America is determined to
create the conditions under which Estonia, Lithuania, and Latvia can
one day walk through that door."
Today I report to you on where we stand since the signing of the
U.S.-Baltic Charter of partnership on January 16 by President Clinton
and the Presidents of Estonia, Latvia and Lithuania. Just last week
Deputy Secretary of State Strobe Talbott led the U.S. delegation to
the inaugural meeting of the Partnership Commission set up under the
Charter.
With your permission, I'd like to review our goals and our activities.
Policy Goals
Mr. Chairman, this administration's Baltic policy can be summed up in
three words -- champion of integration. We want the United States to
be a champion of the integration of Estonia, Latvia and Lithuania into
European and trans-Atlantic institutions. That is what the Baltic
Charter is all about.
We have set for ourselves the following goals:
First, we set out to manage the NATO enlargement process in a fashion
that not only increased the security of those currently invited to
join the Alliance, but also those who may join later or who may choose
never to join.
Second, we want to build a new Europe without dividing lines, where
the old "zero sum" politics of the Cold War are replaced by what
Secretary Albright calls a "win-win" mentality. Last week in Riga,
Deputy Secretary Strobe Talbott said "it is in the national interest
of the United States that the Baltic states regain their rightful
place in the European mainstream.
"The upheavals of the 20th century have taught us that when any part
of Europe is isolated, repressed, unstable or torn by violence, the
peace of the entire Euro-Atlantic community is at risk. We learned
that lesson the hard way in the 20th century; we must apply it in the
right way in the 21st."
Third, the Baltic Charter sends the message that we and the Baltic
states share a common vision of a new Europe and Euro-Atlantic
community -- and that Estonia, Latvia and Lithuania are part of that
vision. It makes clear that the Baltics will not be excluded or
discriminated against because of geography or history and the
injustices of the past.
At the same time, the Charter does not contain pre-commitments. It
underscores that these states -- like all other aspiring countries --
must meet the same high standards that NATO sets for all new members.
And, the Alliance as a whole must reach consensus that inclusion would
serve our collective strategic interests.
Let me now highlight our accomplishments and review the objectives for
our future cooperation.
Political Accomplishments
Mr. Chairman, one of the most important things we have accomplished
together in the political realm is to provide a clear perspective for
the eventual integration of these countries into European and
trans-Atlantic institutions. The leaders of these countries are no
longer preoccupied that they might be left in some kind of "gray
zone." Instead, they are focused on what they need to do to make
themselves the strongest possible candidates for their future
integration into European and Euro-Atlantic institutions.
Politically, we are working together to consolidate the transition to
democracy in these three countries. We are supporting the development
of civil societies, joining with the Soros Foundation to fund the
Baltic- American Partnership Foundation which will provide $15 million
to develop and sustain local NGOs in the Baltic states.
In addition, we are assisting these countries, especially Estonia and
Latvia, in the area of social integration, particularly in support of
legislation that meets the OSCE's [Organization for Security and
Cooperation in Europe's] recommendations on citizenship. We salute the
Baltic states for the important steps they have taken to translate
these ideas into reality. Throughout debate on this important issue,
the U.S. has supported those seeking to bring national legislation
into conformity with OSCE recommendations.
We have made it clear that the OSCE's recommendations are the only
benchmark we recognize and that we will not support any additional
demands or "moving of the goal posts" on this issue.
We also are taking steps to support the Riga graduate law school,
which is being created by several Council of Baltic Sea States member
states. The school is an important effort to ensure that students from
the Republics of Estonia, Latvia and Lithuania, notably including
ethnic minorities, will receive high-quality legal training.
Mr. Chairman, in May, Presidents Meri, Ulmanis and Adamkus jointly
announced that they would establish national commissions to study the
period of the Holocaust and of totalitarian rule in each of their
countries. We salute them for that.
Our close political ties with Estonia, Latvia and Lithuania extend to
broad agreement on a number of key regional and global issues. To cite
one example, earlier this year the United States sought support in the
event that military action against Iraq might be necessary. Estonia,
Latvia and Lithuania all volunteered to send whatever support they
could provide.
Economic Accomplishments
Mr. Chairman, we see stronger economic and commercial ties with these
three countries as critical to our overall strategy of integration and
to the prosperity and security of these countries.
This spring the economic bilateral working groups established under
the Charter were held under the chairmanship of Under Secretary of
State for Economic Affairs Stuart Eizenstat. Together, we set priority
areas in which to focus our efforts: energy, telecommunications,
transportation, and the environment. Working closely with our
embassies in the countries located on the Baltic, we are developing a
regional economic and commercial strategy to bolster U.S. investment
and to highlight the potential role of the three Baltic states as an
economic platform from which companies can access markets in the
European Union, Northern Europe, and Russia.
Our strategy is designed to help the Baltic states regain the status
and role they once enjoyed as key trading partners at a time when
Northern Europe enjoys some of the fastest growing economies in Europe
as a whole. But for this to happen, the Baltic states must see
themselves as part of a larger market -- not just of 10 million in the
Baltic states, but of 100 million in the Baltic region -- the five
Nordics, the three Baltics, Poland and Russia, especially the
northwestern part.
We will pursue that strategy bilaterally as well as through regional
organizations such as the Council of Baltic Sea States (CBSS), seeking
to reduce regional trade barriers and create a more attractive
environment for regional and American business. In this connection we
are reaching out to the private sector to engage American business. At
the inaugural Baltic Charter Partnership Commission meeting last week
in Riga, more than 30 business leaders from the private sector met and
identified 12 specific recommendations and offered to work with
government authorities to set up concrete goals and timetables to meet
those goals.
We want to employ the successful methods developed in partnerships
like the Trans-Atlantic Business Dialogue to address the key concerns
of the private sector and to identify steps that can help improve
trade and investment links between the U.S. and the Baltic states. To
help make good on that commitment, the Department of Commerce has
agreed to increase staffing at our Embassy in Stockholm, adding an
officer with regional responsibilities solely for Estonia, Latvia and
Lithuania.
We continue to support the Baltic-American Enterprise Fund, which
provides an average of $1 million per month in loans and investments
throughout the Baltic states. In three years it has made over 100
business loans to and investments in small and medium-sized
enterprises and approved more than 250 mortgages to individuals.
In this connection, I might also mention our cooperation in combating
organized crime. Such assistance and cooperation addresses a real
crime problem, helps build regional and transatlantic ties among law
enforcement professionals, and holds out the hope of improving the
business environment for local entrepreneurs and American business
people alike.
Finally, we continue to support the efforts of the three Baltic states
to join the European Union. While we are not members of the EU, our
goal is to ensure that our support for their aspirations to join the
EU is clear and consistent. Last January President Clinton also
committed the U.S. to work to help these countries gain entry to the
WTO [World Trade Organization] on the appropriate commercial basis.
Security Accomplishments
Mr. Chairman, we have also made security cooperation a top priority in
our relations with Estonia, Latvia and Lithuania. Following Secretary
Albright's visit to Vilnius last July, we agreed on the need to
establish a long-term modernization plan for the defense forces of
Estonia, Latvia and Lithuania which would simultaneously strengthen
their own self-defense capabilities as well as their ability to
contribute to overall European security.
Last fall the Department of Defense took the lead in forming a team
(headed by Major General "Buzz" Kievenaar) that would assist the
Baltic states in this effort. Kievenaar's team assisted these
countries in identifying current weaknesses, setting priorities as
well as developing a force modernization plan that would allow them to
develop small but modern and capable militaries. Each of the three
Baltic states has welcomed these efforts and is currently
incorporating many of the details into their own national defense
planning and priorities.
Defense modernization is only one aspect of security in today's
Europe. Together with our Baltic partners, we have also identified
confidence-building measures and arms control as two additional
elements that could constitute an overall package approach to security
in the region.
The Baltic Security Assistance Group (BALTSEA) serves as the forum for
coordinating donor assistance to the Baltic states. This group brings
together NATO and non-NATO countries committed to helping the Baltic
states improve their defense capabilities. It will also be a critical
forum for implementing the priorities identified by the DoD
[Department of Defense] study and incorporated into national defense
plans.
Programs such as BALTSEA, the Baltic Battalion (BaltBat), Baltic
Airspace Management Regime (BaltNet), the Baltic Squadron (Baltron),
and the Baltic Defense College have already helped these three
countries to make a concrete contribution to their own national
defense as well as broader European security. Troops from all three
countries have served as peacekeepers in Bosnia.
Starting tomorrow (July 16), some 2,000 U.S. soldiers will join them
for this year's Baltic challenge, an annual "in the spirit of PFP"
exercise. This year's exercise will be hosted by Lithuania and will
include troops from 11 participating countries.
Last, but far from least, with the cooperation of Congress we have
significantly increased the amount of security assistance for the
Baltic states under the Warsaw Initiative program to $18.9 million. We
hope to maintain a similar level for FY99 to help the Baltics meet the
challenges identified by the DoD study.
Russia and the Northern European Initiative (NEI)
Mr. Chairman, I'd also like to say a word about another Baltic
littoral country with which the three Baltic states share a complex
and often tragic history. That country is Russia.
We all recognize that the relationships of the three Baltic countries
with Russia is one of the most acute challenges we face in our common
efforts to enhance democracy, prosperity, and stability throughout the
region. For their part, the Baltic peoples harbor deep anxieties and
suspicions about Russian motivations. The Russians, too, worry about
the prospect of the Baltic states fulfilling their legitimate desire
to join NATO.
President Clinton and Secretary Albright believe that it is in the
Russians' interest to get over this particular concern. This applies
to the issue of NATO enlargement in general as well as the specific
issue of possible Baltic membership in the Alliance.
In a speech last year at Stanford University, Deputy Secretary Strobe
Talbott said, "In the final analysis, Russia will have to make that
adjustment itself, by its own lights and for its own reasons. But we
and our European partners can help." We can help by applying the same
general principle of inclusiveness in specific instances. That means
promoting Russia's involvement to the greatest extent possible in the
cooperation developing along the Baltic littoral.
Working with the Baltic states, our goal is to convince Russia to see
the Baltic states not as a zone of influence, not as a pathway for
invading armies nor a buffer against non-existent enemies, but as a
gateway outward to the new Europe of which Russia seeks to be an
increasingly active part.
Mr. Chairman, Northern Europe is an area where we can showcase our
strategy of creating a "win-win" situation in the new Europe. Recently
the Economist referred to this region as undergoing a "Baltic
Revolution" -- a tide of reform and integration that has made this
region one of Europe's most promising.
Last September in Norway, this administration launched a Northern
European Initiative (NEI) to participate in and promote these positive
trends. Our NEI consists of three tracks. The first is to help
Estonia, Latvia and Lithuania help themselves become the strongest
possible candidates for Western integration.
The second track is to build on the excellent ties and cooperation we
enjoy with the Nordic countries on Baltic issues and to expand such
cooperation with other actors in the region such as Germany, Poland,
and the European Union.
The third and final track is to implement the kind of inclusive policy
toward Russia I described earlier.
As a result, we have stepped up our efforts to support regional
cooperation in regional structures such as the Council of Baltic Sea
States (CBSS), the Barents Euro-Arctic Council (BEAC) as well as the
Arctic Council, each of which provides an effective forum for working
alongside all nations in the region, including Russia, on a host of
economic, social and environmental issues.
Conclusion
Mr. Chairman, achieving our goals will be far from quick or easy. But
we have a common set of objectives and, increasingly, a shared
strategy. Moreover, we are all impressed and filled with admiration at
how much the countries of Estonia, Latvia and Lithuania have
accomplished in the short time since regaining their independence.
Thank you.
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