Monday, 9 October 2000
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Subj: Weekly Latvian mailer, Sunday
October 8 Edition, Part 2
Date: 00.10.09
File:
D:\+www.latvians.com\JUL95\Picts\Kolkas-rags-6727-12.jpg (68260 bytes)
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Sveiki, again!
Still catching up! It may be another week
before the mailers get updated to our site, though... we're been doing some
work on our site, as well. We'll keep you posted.
This week's
link is a deceptively simple one. (There's one hidden later
in one of the news stories as well, but we couldn't feature it as a "Latvian"
link.)
In the news:
- New Latvian-Russian visa procedures in the works
- Lithuania joins the World Trade Organization, rounding out Baltic membership
- Swedes take over partial interest in Latvian mobile phone service provider BaltCom GSM
- Belorussian and Latvian border guards cooperate on anti-smuggling campaign
- Latvian-Russian seminar on transport of Russian goods held in Voronezh
- Over 1,000 agricultural producers attend annual Moscow exhibition
Regionally:
- Former Communist leader Brazauskas cashes in on Lithuanian protest vote to win Lithuanian election
- Economic markets fallout from Brazauskas win
This week's picture is of Kolkas Rags.
Remember, mailer or not, Lat Chat spontaneously appears every Sunday on AOL
starting around 9:00/9:30pm Eastern time, lasting until 11:00/11:30pm. AOL'ers
can follow this link: Town Square -
Latvian chat. And thanks to you participating on the Latvian message board
as well: Click here: LATVIA (both on
AOL only).
Ar visu labu,
IN ACCORDANCE WITH AOL'S MAIL POLICY and good manners, please let Silvija (Silvija) know if you wish to be deleted from our mailing list. Past mailers are archived at latvians.com. Your comments and suggestions are always welcome.
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We wondered what would happen if you just typed in "www." the standard Internet address prefix, followed by just the country suffix for Latvia, "lv". We found something... you will too, at: http://www.lv
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zak/(c) 2000 ITAR-TASS
On April 10, 2000, the Latvian Foreign Ministry sent a note to the Russian embassy in Riga, informing it about the denunciation of the 1994 bilateral agreement on a simplified border-crossing procedure for residents of border regions.
The note also proposed to replace passes with free multiple visas to be issued by local authorities without invitations from the other side.
In its August 25 reply, Russia proposed some clarifications. Latvia is ready to sign a new protocol on cross-border movement in the very near future, the Foreign Ministry said.
However, if Russia and Latvia fail to agree on this document before October 10, Latvia will have to introduce standard visa procedures. This means that those who wish to visit Latvia will have to pay for a visa which will be issued only if the applicant has an invitation from Latvia.
Copyright 2000 Dow Jones & Co., Inc.
The Baltic nation committed itself to reduce the level of domestic support to its agricultural sector by 20% over five years and to eliminate the use of export subsidies entirely as soon as it joins the WTO.
Lithuania also signed separate trading deals with Canada, Cuba and New Zealand, officials said. The Czech and Slovak Republics haven't yet completed their deals, but said they wouldn't oppose Lithuania's membership while they continue negotiations.
Algimantas Rimkunas, Lithuania's vice-minister of foreign affairs, told a meeting of members that his parliament would ratify the agreement by May 1, 2001. The approval also has to be rubber-stamped by the WTO general council in December.
Latvia and Estonia already have joined the WTO, but Lithuania's membership was held up because it has a much larger agricultural sector, which led more countries to ask for bilateral negotiations.
Copyright 2000 Reuters Ltd.
Tele2 AB, a subsidiary of Sweden's NetCom AB , said in a separate statement it is paying $277 million in cash, including the repayment of $53 million in shareholder loans and bank debt, for the second largest GSM cellular services provider in Latvia.
Western Wireless said it invested approximately $14 million in BaltCom GSM since it was awarded its license in 1996.
Other current shareholders of BaltCom GSM are Metromedia International Group Inc. , the European Bank for Reconstruction and Development, and local Latvian shareholders.
Tele2 is an alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services in 18 countries.
yer/dro (c) 2000 ITAR-TASS
An agreement to the effect was reached by border department chiefs Lieutenant-General Alexander Pavlovsky and General Gunars Dabolins in late August, a representative of the Belarussian Border Committee has told Itar-Tass.
The first operation will last for several weeks. Belarus will assign personnel of the State Security Committee, the Interior Ministry and the Customs Committee to help the border guards. It is also planned to use the border aviation.
The border guards have found contraband caviar in a vehicle, which headed for Latvia, and contraband cigarettes and video cassettes on a passenger train from Voronezh to Riga.
saf/ezh (c) 2000 ITAR-TASS
Therefore Latvia as the country whose revenues mostly result from transportation is very much interested in participating in this project and in its cooperation with the Voronezh region. Deputy state secretary of the Latvian ministry of railways Uldis Laksevich said that "Voronezh is a large transport centre and Latvia is a transit republic. "Therefore, we are very interested that international transport corridors should pass through our territory", he said.
In their statements Latvians expressed the hope that the Voronezh and Russian authorities would back Latvia's interest and the transport corridor from Europe to India would not be passing through Vyborg of the Leningrad region, as the Russian Railway Ministry plans, but through Latvia.
Latvian representatives promise to broaden direct commercial and economic ties in return.
[Voronezh is about 480 km southeast of Moscow and is the birthplace of the Russian Navy. Kansas State University has an academic program in cooperation with the city — you can see the sights (just as we're sure the Latvian delegates did) at KSU's picture gallery... http://www2.educ.ksu.edu/organizations/ARIOS/Voronezh/Vgallery]
zak/(c) 2000 ITAR-TASS
In addition to the exhibition proper, there will also be an international forum, "Russia's Food Market: Cooperation and Interaction", an international conference, "Progressive Machines and Technologies as the Basis for Efficient Agricultural Production", as well as the days of Russian regions and agricultural fairs.
Prime Minister Mikhail Kasyanov, who opened the exhibition, said Russia will be able to both meet its own food needs and export food in the near future.
In his view, exhibits show that "the situation in agriculture is improving".
Kasyanov said the country has harvested a record grain crop this year — over 60 million tonnes. Russia will also harvest more potato, sugar beet and sunflower in 2000.
Food imports decrease and agricultural production in Russia grows and is expected to reach 5 percent this year, the prime minister said.
He noted that the government policy gives priority to agriculture "but not in terms of budget appropriations or sweeping debt write-offs".
The government seeks to "create normal conditions for the operation of the agro-industrial complex by using market mechanisms", he said.
Copyright 2000 Reuters Ltd.
By Tony Austin
Most of the votes cast on Sunday have been counted, and the 68-year-old Soviet-era boss and his left-wing election allies have clinched almost one third of the votes and at least 50 mandates in the 141-seat single-chamber parliament, the Seimas.
Brazauskas fell short of a parliamentary majority and the next government will now be decided in negotiations involving his and three other parties which won representation.
But commentators agreed that the electorate had sent a resounding message to their political leaders.
"This was a vote on social issues. Probably the recent economic reforms were too painful for people," said Jurgis Razma, a leading member of the right-wing Homeland Union which was swept from power.
"The vote was not so much for the coalition as for Brazauskas in person. His image is widely associated in the public's mind with reliability, calmness and stability," said Audrius Siaurusvicius, a political commentator.
Pre-election polls had forecast Brazauskas gaining only about 17 percent of the votes, but many of the 25 percent who were undecided until the last minute appeared to have backed him for want of anyone better.
Only one block away from the affluence of the capital's old town boutiques sporting credit card signs, people stand patiently at pavement markets selling dowdy second-hand clothes.
Fashion house Faberge has opened a shop on the main Gedimino Prospekt in Vilnius, but retail trade in Lithuania is more often a single window in a roadside kiosk.
BRAZAUSKAS APPEALS TO HAVE-NOTS
"Brazauskas is good because he is going to work with young people in one team," said an 80-year-old woman selling fruit from a plastic bag, who added that she also liked Arturas Paulauskas, leader of the New Union.
Paulauskas and Rolandas Paksas's Liberal Union are vying for second place behind Brazauskas's Social Democratic Coalition.
"Everywhere where people are living badly, they are voting for Brazauskas," said Gediminas Kirkilas, a member of Brazauskas's Social Democratic Coalition.
Though Lithuania is slowly recovering from last year's recession and budget cuts, caused in turn by the 1998 Russian economic crisis, official data show there were many losers.
At $2,878, Lithuania's per capita gross domestic product (GDP) is higher than Latvia's but lower than the $3,555 enjoyed by Latvians, but September unemployment at 11.8 percent was several points higher than in its Baltic neighbours.
In the dusty squares men pick up cigarette ends for recycling and rummage in the rubbish containers for cans.
Lithuania's average monthly pension for unemployed people - those at the end of the economic chain — is only $78 compared with $96 in Latvia and $92 in Estonia.
Outside the well-attended and numerous Roman Catholic churches, elderly men and women sit in the warm October sun holding out their hands for alms.
Brazauskas believes he is the right person to tackle the economic downturn. He has a bedrock of support among the ethnic Russian minority and enjoys a reputation for old-fashioned administrative competence, now coupled with democratic ideals.
Another street vendor outside Vilnius bus station told a reporter on Monday that she had no time for politicians of any hue, and had not bothered to vote. "We've already had Brazauskas in power. Do you think we're living any better? We need bread, money, we don't need politicians," she said.
Copyright 2000 Reuters Ltd.
By Peter Mladineo
The next government will hold in its hands the fate of the country's bid to join the European Union by 2005 as well as keep the stability of the Lithuanian litas, which is scheduled to have its anchor changed to the euro from the dollar next year.
The front-runner after all the votes were all counted was the leftist Social Democratic Coalition of former President Algirdas Brazauskas, who said he supports Lithuania's currency board arrangement, but may challenge the efforts to sell off key state-owned industries.
However, the Social Democrats came up around 20 seats short of a majority in parliament. The centre-left New Union and the laissez faire Liberal Union may combine, but would also be 10 seats short of a majority.
The ruling conservative Homeland Union party of Prime Minister Andrius Kubilius ran a distant fourth and will gain only nine seats in parliament, leaving the composition of the next government uncertain.
Kubilius installed Lithuania's austere fiscal and economic policies that got the Baltic country onto a path of recovery from a recession. He won praise from foreign interests but alienated the electorate.
Lithuania's stock market (.LITIN10) fell slightly in thin turnover on Monday in what brokers described as financial market concerns over the line-up of the next government.
ECONOMIC CONTRASTS
Lithuania, a country of 3.7 million, has the characteristically post-Soviet contrasts of both new wealth and flea-market capitalism, with an inconspicuous but growing middle class.
The largest of the three Baltic states, it had a 1999 per capita gross domestic product of $2,878, compared to $2,574 for Latvia and $3,555 for Estonia.
European Union data also showed it had the highest unemployment of the three in September, with 11.8 percent compared to 8.1 in Latvia and 4.9 percent for Estonia.
All the major parties to be represented in parliament are pro-market, EU and NATO membership, yet analysts have voiced concern that a new government could weaken the strong fiscal position that Kubilius' government has built since a 1999 budget crisis.
"This new government must be very clear that the budget deficit must come down if they want to get any level of market confidence," said Mikael Johannsson, an analyst with SEB Economic Research.
"There's a perception internally that a (fiscal deficit of) three pct of GDP is good for the EU, but I'm not so sure if that's going to be good enough for the markets in Lithuania. That's the first question that needs to get sorted out," a diplomat told Reuters.
Most analysts said they expected next year's planned currency shift to go off without a devaluation. All major parties say they oppose a devaluation, although the New Union has sent mixed signals about this.
The litas was launched in 1993 and pegged to the dollar at a four-to-one rate, which it has maintained to this day.
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On our way back from visiting Liepaja and Ventspils on the Baltic coast in 1995, we drove back via the scenic route, up to Kolkas Rags and back along the Gulf of Riga.