Sunday, 21 May 2000

News   Picture Album

Latvian Mailer, AOL Chat Reminder for Sunday, May 21st
Date: 5/21/00
File: D:\+www.latvians.com\JUL95\Picts\Snail-6741-16.jpg (23369 bytes)
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First, we must apologize in advance that it's likely there will be no mailer next week. (Just too many things to do right now as we try and finish up moving!) Even this week we're pressed for time... no links this week, only news and a picture. We've also been tardy on keeping the mailer archive up to date — we expect to catch up next month.

In the news:

• neglected Russian military burials outside Russia
• a cryptic report of a quote from Gennady Seleznev, presumably about the Latvian president
• Swedish foreign ministier says Latvia could be ready for EU next year
• Russia slams Latvia (yet again) over Farbtukh conviction
• business leaders urge Balts to fight corruption
• nine states, including Latvia, join in NATO membership statement
• Vice President Gore's comments on nine-way NATO statement
• the European Bank for Reconstruction and Development (EBRD) met in Riga; first, an article outlining its history...
• followed by a report on the EBRD's meeting

This week's picture illustrates one way to know if summer has arrived.

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.

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.

News

    Russian military burials neglected.
    MOSCOW, May 15 (Itar-Tass) — There are problems with the preservation of Russian military cemeteries in Romania, acting foreign minister Igor Ivanov said in answer to the question from parliament about measures for the preservation of monuments outside Russia to Soviet soldiers who perished in World War II.
    According to the information of the head of the Russian Foreign Ministry, there are over 10,000 military cemeteries, common graves and tombs in foreign countries in which over three million Russian (Soviet) servicemen are buried.
    There were cases in Romania in the recent years when plots in the territories of cemeteries were seized and monuments to fallen soldiers remade into monuments to victims of the totalitarian regime, to participants in the December 1989 events. The Romanian authorities neglect the matter of the care for monuments and military cemeteries which were given care upto 1990 on the basis of the Soviet-Romanian arrangements which the Romanian side refuses to recognise.
    Most effective care for memorials is organised on the basis of intergovernment agreements with Hungary, Italy, Poland, Slovakia, Finland, Czech Republic, and Japan. Russian military monuments and cemeteries are kept in a satisfactory state in countries with which similar agreements have been concluded, although there were cases of monuments' desecration in Poland and Germany, the minister said.
    There are negotiations to conclude agreements about the care for military memorials with Romania,Latvia, Lithuania, and Estonia. From 1993, the Russian Foreign Ministry has been seeking an opportunity to reach agreement on the status of military burials with Baltic states, but the authorities of those countries drag their feet on the matter. Ivanov believes it is expedient to continue allocating funds from the Russian budget to put in order if only a number of important memorials in the Baltics.
    saf/gor © 2000 ITAR-TASS. All rights reserved.

    
    THE SPEAKER OF THE STATE DUMA, GENNADY SELEZNEV
    ST.PETERSBURG, RUSSIA — "This lady doesn't know what is Soviet Union, what Soviet Latvia looked like, she seems not to understand what is Russia, and doesn't understand what she is talking about" - said Mr. Seleznev. He stressed that there is no threat to Latvia from Russia.
    © 2000, A&G Information Services
    
     EU should show more solidarity with Baltic states
     RIGA, May 17 (Itar-Tass) —EU countries should show more solidarity with Baltic states, Swedish Foreign Minister Anna Lindh said.
    Lindh arrived in the Latvian capital on a one-day visit on Wednesday. Speaking at a press conference, Lindh said that Latvia will be ready to join the European Union next year.
    At the same time, she stressed that Sweden's priority task as future EU president is to continue the expansion process of the organisation.
    While in Riga, the Swedish foreign minister held talks with the Latvian prime minister and her counterpart, and parliament members.
     yur/© 2000 ITAR-TASS
    
    Russia slams Latvia for jailing old Soviet officer
    © 2000 Reuters Ltd.MOSCOW, May 18 (Reuters) — Russia slammed Latvia on Thursday for jailing a former Soviet security police officer despite his advanced age, as it kept up its fierce rhetorical war with the small Baltic state.
    Russian news agencies reported from the Latvian capital Riga on Wednesday that Mikhail Farbtukh, 84, had been jailed for involvement in the 1941 deportation of 31 families, part of a wave of repression by Soviet dictator Josef Stalin.
    Moscow has already attacked Latvia for prosecuting a Red Army partisan, aged 77, for war crimes.
    "An end must be brought to these legal excesses which have a Nazi spirit, carried out by the Latvian authorities against old and powerless people," the Russian Foreign Ministry said in a statement.
    It said that by not taking Farbtukh's age into account when sentencing him, Latvian authorities had ignored the standards of the European Union, which Latvia wants to join.
    Russia has accused Latvia, which broke from the Soviet Union in 1991, of trying to bring back fascism in Europe and to reverse the result of World War Two by prosecuting Soviet-era officials, including partisans.
    Latvia has said it will prosecute anyone guilty of war crimes or crimes against humanity, no matter which side they fought on.
    But it has said it has insufficient evidence to prosecute soldiers who fought on the side of Nazi Germany and who have been accused by Nazi-hunting groups of war crimes.
    
    Business leaders urge Balts to fight corruption
    © 2000 Reuters Ltd.By Martins Gravitis
    RIGA, May 19 (Reuters) —The Baltic states have made great strides since leaving the Soviet Union, but they must step up the fight against corruption and continue tax and legal reforms to live up to their potential, business leaders said on Friday.
    "To propel themselves towards really prosperous economies, the Baltic governments must continue to push for the creation of a fair and transparent market," said Olav Fjell, president and CEO of Norway's Statoil
     Since restoring independence in 1991, Estonia, Latvia and Lithuania have been far and away the star performers of the former Soviet Union due to tough fiscal reforms that have underpinned stable currencies and economic growth.
    The trio suffered setbacks in the wake of the 1998 Russian financial crisis, which closed off their once mainstay market, but they are once again on the road to growth.
    Foreign investors say the region's highly educated workforce, proximity to a Russian market brimming with potential and strong bids to join the European Union make the Balts prime candidates for international firms looking to set up shop.
    Scandinavians have been been quick to notice the potential sitting just across the Baltic Sea from them. Several Scandinavian banks have bought into banks in all three Baltic states since 1998 or set up operations there.
    Business leaders say Baltic potential extends beyond their financial sectors, which have stabilised considerably following a bout of growing pains in the early 90s.
    "The Baltic states and Central and Eastern Europe in general could turn out to be Europe's answer to Asia in the electronics and software industry," said Dieter Massek, vice-president of IBM.
    PROBLEMS AREAS REMAIN
    Foreign investors praised the three states for democratic reforms and for privatising most of their economies already, although some state firms are still waiting to be sold.
    However, they added, the three must now refocus their reform efforts to make their market economies work better by tackling the problem of corruption that is endemic to post-communist central and Eastern Europe.
     "What is needed here, are significant administrative and legal reforms," said Goran Collert, board chairman of Swedbank , which controls Hansapank.
    Fjell and other officials participating at the Baltic Business Conference in Riga said politicians must root out unethical practices of some administrative officials, who often seem to be on the hunt for financial opportunities.
     Reform of vague and confusing tax codes and regulations should also be on the agenda, officials said.
    "We recognise that more must be done to ensure fair and equal treatment of our businesss partners, and that we must continue to take firm measures to reduce bureaucratic redtape and opportunities for corruption," Latvian Prime Minister Andris Berzins told the conference.
    
    Nine Aspiring NATO Members To Ally
    © 2000 The Associated PressVILNIUS, Lithuania (AP) — Nine aspiring NATO members urged the Western defense alliance to invite them to join by 2002 and agreed to work together to ensure that happens.
    A joint statement adopted Friday at the end of a conference on the North Atlantic Treaty Organization's role in European security called on the alliance to invite the nine countries to join at the next summit two years from now.
     "We are not only prepared for the responsibilities and burdens of NATO membership today, but we are already coordinating our defense structures and policies with the Alliance (by) contributing to NATO political and military undertakings," the statement said, according to the Baltic News Service.
     The foreign affairs ministers of Lithuania, Slovenia, Latvia, Estonia, Slovakia, Romania, Bulgaria and deputy foreign ministers of Albania and Macedonia signed the statement.
    The officials at the meeting also emphasized the importance of cooperating instead of competing for entry into the alliance.
    "We have not come here as competitors in a beauty contest," Estonian Foreign Minister Toomas Ilves was quoted as saying by BNS. He added that the conference at the Vilnius City Hall was itself proof that the candidates were not "intending to proceed by way of competition."
    The countries are hoping to follow Poland, Hungary and the Czech Republic, which officially joined NATO during its 1999 summit in Washington.
    Washington summit participants also approved a so-called Membership Action Plan to help the remaining aspirants prepare for the possibility of joining, but it provided no timetable for accession nor any guarantee that they would get it.
    The NATO hopefuls must maintain commitments to strengthen democracy, human rights, democratic control of the armed forces and programs to improve military cooperation with the 19 NATO countries.
    NATO Secretary-General George Robertson, who was in the Lithuanian capital for the meeting, welcomed the joint statement.
    "It is a striking example of how NATO's commitment to keeping the door open to new members is fostering cooperation," Robertson was quoted as saying.
    The statement also reaffirmed the signatories' determination to join the 15-member European Union and welcomed the EU's commitment to building a common European security and defense policy.
    
     Statement by the Vice President on Adopted Vilnius Joint Statement
    WASHINGTON, May 19 /U.S. Newswire/ — Following is a statement by Vice President Gore:
    I welcome the statement adopted in Vilnius today by the governments of Albania, Bulgaria, Estonia, Latvia, Lithuania, Macedonia, Romania, Slovakia, and Slovenia and the reaffirmation of their commitment to a Europe whole and free. This gathering of nations, held under the sponsorship of Lithuania and Slovenia, represents another important milestone in these countries' reintegration into the Euro-Atlantic community.
    Along with European leaders, I have been impressed by the scope of domestic political and economic reforms in these countries and by their bilateral and regional efforts to enhance European stability. Together, these nations have resolved border disputes, begun new regional trading relationships, encouraged cross-border contacts between ethnic groups, provided humanitarian assistance to each other when necessary, and adopted programs to ensure the rights of national minorities. These achievements have been possible because of the common vision held by Vilnius Statement signatories of a Europe in which democracy, free markets, and peace stand as guiding principles.
    I also take special note of the aspirations articulated by these nations to join NATO and the European Union and encourage them to stay the course. Having strongly endorsed the enlargement of NATO as the three new members formally acceded last year, I want to underscore my support for the Alliance's Open Door policy. I believe that the matter of new memberships should be kept at the forefront of the business of NATO, and look forward to further opportunities to consult closely with the Vilnius Statement signatories in the next months.
    © 2000, U.S. Newswire
    
     Chronology of EBRD from its 1991 inception
    
     RIGA, May 20 (Reuters) —The European Bank for Reconstruction and Development (EBRD) was set up in 1991 to help the former communist countries of central and eastern Europe in their transition to market economies.
    The bank encourages co-financing and foreign direct investment from the private and public sector in 26 countries.
    All powers of the EBRD rest with the Board of Governors, finance ministers from 58 countries and a senior representative from the European Commission and the European Investment Bank.
    The bank is currently headed by an interim president for the third time in less than 10 years of its existence, but French Treasury Director Jean Lemierre will be voted in as the new president at the meeting in Riga on May 22.
    The bank expects him to take up his post before the summer, replacing Horst Koehler, who left the EBRD to head the International Monetary Fund.
    Following is a brief chronology of the bank:
    + April 1991 — EBRD founded with headquarters in London. Jacques Attali president. Eight countries of operation form the initial group — Albania, Bulgaria, former Czechoslovakia, Hungary, Poland, Romania, former Soviet Union and former Yugoslavia. Initial subscribed capital 10 billion Ecu.
    + October 1991 — Board approves the three Baltic states — Estonia, Latvia and Lithuania — as countries of operation.
    + 1992 — The 12 newly independent states of the former Soviet Union become individual countries of operation. The bank commits funds to 36 projects worth 916 million Ecus in its first full year of operation.
    + 1993 — Attali resigns after an independent audit criticises him for his role in the costly fitting-out of London headquarters. Replaced by former IMF head and French central banker Jacques de Larosiere.
    + 1994 — Three newly independent states from former Yugoslavia — Croatia, Former Yugoslav Republic of Macedonia and Slovenia - become individual countries of operation.
    + 1996 — Bosnia and Herzegovina becomes country of operation.
    + 1997 — EBRD capital base doubled to 20 billion Ecus, effective April. First disbursements to Bosnia and Tajikistan, the last of the 26 countries to secure financing.
    + 1998 — Germany's Horst Koehler takes over as president from de Larosiere, who retired in January. New office opened in Armenia. Bank posts net loss of 261.2 million Ecus due to loan loss provisions linked to Russia's crisis.
    + 1999 — Bank announces strategy aimed at restoring its balance sheet by balancing risky investments with projects in the relatively advanced economies of Central Europe.
    + Kosovo damages trade links from Balkan countries such as Romania and Bulgaria.
    + Bank slashes loan loss provisions to 160.9 million euros, lending at 2.2 billion euros, sharply down on the previous year due to risk aversion as a result of the Russia crisis.
    + 2000 — EBRD President Koehler emerges as compromise German candidate to head the IMF after U.S. rejects Caio Koch-Weser.
    + First Vice President Charles Frank becomes Acting President for the second time.
    + European Finance Ministers choose Lemierre as their candidate to become the president.
    + EBRD says that for the first time since the Berlin Wall fell, all 26 of its countries of operation could see economic growth.
    
    EBRD to Boost Balkan, Russia Lending
    © 2000 Reuters Ltd.By David Chance
    RIGA, Latvia (Reuters) The European Bank for Reconstruction and Development, building on economic recovery in Russia and growing private-sector interest in the Balkans, plans to boost lending to both regions, EBRD bankers said on Saturday.
    Other international lending institutions, such as the IMF and World Bank, are under attack, but EBRD officials, in Riga for the bank's annual meeting, are in optimistic mood.
     Attendance at its ninth annual meeting is far short of the 3,000 people Latvian organizers had planned for, and a heavy police presence ensured there was no repeat of the demonstrations and riots that have marred recent meetings of the IMF and World Trade Organization.
    Virtually every country in Eastern Europe is enjoying economic growth for the first time since the EBRD was set up in 1991 to help the region's former communist countries in the transition to market economies.
    Russia's new administration under President Vladimir Putin offers the prospect that Moscow will finally pursue far-reaching economic reforms and tackle the corruption which has held up its economy and deterred foreign investors as the region's biggest country recovers from the 1998 financial crash.
    The bank also has a key role to play in reconstructing the Balkans, under the Stability Pact set up to stimulate the region's economies after last year's Kosovo war.
    Olivier Descamps, the development bank's regional head for the Balkans, told Reuters the EBRD, given a leading role in identifying new regional initiatives for the private sector, would sign and carry out three new infrastructure projects worth 74 million euros ($65.95 million) within the next three months in Albania, Macedonia and Croatia.
     The EBRD will invest another 240 million euros in another seven regional infrastructure projects over the next two years.
    "The rules are now much more open in the Stability Pact countries. The countries are committed to allowing foreign capital to come in," Descamps said.
    EBRD spending in Eastern Europe will reach 500 million euros this year and three quarters of a billion euros in 2001.
    ECONOMIC BOOM FOLLOWS KOSOVO WAR
    Paradoxically, the Kosovo conflict also benefited some of the economies of the region, Descamps said.
    "Post-Kosovo, Albania and Macedonia are somewhat on a better footing than they were before," Descamps said.
    The EBRD also wants to raise its investments in Russia back to their levels before the 1998 crisis, focusing on the regions and energy, but remains cautious about the banking sector.
    "I think we'd like to build up the level of activity back up to at least 30 percent of our entire level of activity and that means that we would be trying to achieve an annual level of investment commitments in the range of 750 million to one billion euro," acting EBRD President Charles Frank said.
    EBRD investments in Russia shrank to 220 million euros in 1999, following the financial crisis of 1998.
    "We want to develop relationships in more progressive regions and focus on local governments more than we have in the past," Frank said.
    The bank is also keen to boost lending to small businesses in Russia, which often have to pay exorbitant rates of interest if they turn to other lenders locally.
     Defaults on loans to small businesses in Russia are low, despite the 1998 crisis, unlike the bank's lending to large corporations, Executive Vice-President David Hexter said.
    The loans range in size from just $30 to $125,000.
    "It really is like Florentine banking of the 14th Century. You do not have balance sheets, you focus on realizable collateral, such as jewelry and on peer pressure," he said.
    Hexter is optimistic Putin's new administration will reform. Taxes and the judicial system are the main areas potential foreign investors are looking at.
    The increase in oil prices, which more than doubled in 1999, helped Russia, the world's third biggest producer of crude, overcome the 1998 debt default and rouble devaluation.
     "That was a windfall, how they spend that windfall is what we are waiting for," Hexter said.
    ($1-1.122 Euro)
    
    

Picture Album

How do you know it's summer? When small uninvited guests come in along with the raspberries from the garden. (Yes, that's just one raspberry in the picture... from July, 1995.)