Monday, 5 June 2000

"For Fatherland and Freedom"  Latvian Link
  News
  Picture Album

Subj: Latvian mailer for Sunday, June 4th
Date: 6/5/00 12:15:19 AM Eastern Daylight Time
From: Sturgalve
File: Aglona-organ-6733-36.jpg (63894 bytes)
DL Time (32000 bps): < 1 minute


Sveiki, all, again!

Today was another practice session for the song festival in Toronto—it's getting close! This week's links reflect that musical theme.

As most of you know, President Clinton is meeting with president Putin this week. Nothing has popped up on the radar screen so far with relation to any dialog about the Baltics. This week's news stories:

Finally, this week's picture is one of those sight-seeing pictures, in this case, of Aglona Church.

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.

Ar visu labu,

Silvija Peters


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.


  Latvian Link


Two musical links this week...

Keep up to date on the Toronto Songfest scehdule at:

http://www.latviansongfest.com

You can purchase tickets to events, too.

As many of you know, one of our "links contributors" has been Gunars Zulis (who will also be participating in Toronto). His cousin just released a pop music CD... you can find her page at:

http://www.pathcom.com/~maruta/

You can even download MP3-format clips of a number of the tracks!


  News

Russia slams Latvian leader's "aggressive tone''
Copyright 2000 Reuters Ltd.
     MOSCOW, May 30 (Reuters) — Russia lashed out at Latvian President Vaira Vike-Freiberga on Tuesday, saying her comments in an interview with a German news magazine over the weekend were aggressive in tone.
     Russia and former Soviet Latvia have recently been locked in a war of words. In the latest salvo, Vike-Freiberga told Der Spiegel that instability in Russia made her nervous and meant she could not rule out the prospect of a new Russian occupation.
     "We believe it is necessary to underline again that the elected president of Latvia's aggressive tone regarding Russia is pointless," Russia's Foreign Ministry said in a statement.
     "We are sure that her tone is not shared by many in Latvia and in other countries and international organisations which have made it their goal to build democracy in Europe without double standards and new dividing lines," it said.
     The Latvian leader angered Moscow earlier this month when she accused it of harking back to the Cold War because of Russian statements about Latvia's bid to join NATO.
     "It is impossible not to pay attention to yet another example of the two-faced approach from the head of the Latvian government," the ministry said, referring to her comments.
     Vike-Freiberga said in the interview that relations between Latvia, which celebrated 10 years of independence this month, and Russia under President Vladimir Putin had not improved as much as she had hoped. Russia says Latvia mistreats its Russian-speaking minority. About one-third of Latvia's 2.5 million people are ethnic Russians, most of whom arrived during its 50 years as a reluctant Soviet republic.

Latvia tells EU good ties with Russia a priority
Copyright 2000 Reuters Ltd.
     RIGA, May 30 (Reuters) — Latvia said on Tuesday it had told the European Union that improving its troubled relations with Russia was a top priority and that the EU could also help.
     "As the EU develops its relations with Russia it should have a stabilising effect on Latvian-Russian relations," Latvian Prime Minister Andris Berzins told a news conference.
     He was speaking after returning from Brussels, where he met EU Enlargement Commissionner Guenter Verheugen.
     "I explained (to Verheugen) that improving relations with Russia is one of our foreign policy priorities and that we hope that the new Russian government will cooperate with Latvia very productively," Berzins said.
     He added that increased trade with Russia, which fell sharply in the wake of Moscow's 1998 financial crisis, could be a way of improving ties.
     "Trade with Russia takes up a very small share in the Latvian trade balance, and that gives evidence that we have a lot of unused opportunities to improve relations with Russia and develop various economic projects," Berzins said.
     The Latvian cabinet on Tuesday approved a treaty with Russia on the avoidance of double taxation for businesses operating in both countries. It still has to be ratified by the parliament.
     Relations between the two countries have been cool since Latvia regained independence from the Soviet Union in 1991.
     Russia claims Latvia mistreats its Russian-speaking minority. About one-third of Latvia's 2.5 million people are ethnic Russians, most of whom arrived during its 50 years as a reluctant Soviet republic.
     Earlier on Tuesday Russia lashed out at Latvian President Vaira Vike-Freiberga, saying her comments in an interview with a German magazine over the weekend were aggressive in tone.
     Vike-Freiberga had told Der Spiegel that instability in Russia made her nervous and meant she could not rule out the prospect of a new Russian occupation.
    
Bilingualism Symposium to be held in Puerto Rico
     San Juan, May 31, 2000 (EFE via COMTEX) — Linguists and language teachers from across the globe are gathering in Puerto Rico for the International Symposium on Bilingualism and Linguistic Rights, which begins Thursday in Puerto Rico and runs until June 6.
     The conference on linguistic rights meets June 1-3 at Puerto Rico's Sagrado Corazon University, while other sessions at the Universidad de Puerto Rico will deal specifically with issues related to the Spanish and English languages.
     Many specialists on language issues in Puerto Rico, a predominantly Spanish-speaking island with a large bilingual community, will participate in symposium activities.
     Symposium participants are expected from approximately 45 countries, including South Africa, Spain, Latvia, Canada, United States, France, Belgium, Switzerland, Slovenia, Romania, Germany, Brazil, Austria, Finland and the Republic of Congo. EFE
http://www.efe.es
Copyright (c) 2000. Agencia EFE S.A.


FEATURE-Latvia confident it has shaken off Soviet image
Copyright 2000 Reuters Ltd.
By Alan Crosby

     RIGA, June 1 (Reuters) — Latvia is confident that it has shaken off the image of a poverty-stricken former Soviet country by hosting a major financial summit, emerging from the meeting as the epitome of post-socialist reform and prosperity.
     Some 2,600 bankers and investors attended the May 20-22 annual meeting of the European Bank for Reconstruction and Development, one of the largest international events in Riga's 800 year history.
     Building crews worked feverishly to prepare venues, repair roads and polish the city's image in the months leading up to the meeting.
     It was also a chance to show off the gleam of nine years of reforms and prosperity since the Baltic nation regained independence in 1991.
     "This was an excellent chance for Riga and Latvia to show off and it was utilised to the fullest...sending the good news to the world about Latvia's potential and future perspectives," Foreign Minister Indulis Berzins said after the meeting.
     "The most important message people received was that Riga is a European city not only because of its history or looks, wonderful cafes and outdoor bars, but also because of its ability to organise (such events)," Berzins added.
     The EBRD was set up in 1991 to help the transition of emerging Europe along the free market path.
     In contrast to last year's meeting in London, overshadowed by the impact of the 1998 crisis in Russia and war in Kosovo, this year's was imbued by confidence about the economic outlook for the region and the bank's own performance.
     For the first time in its history, the bank could boast that every recipient member country is expected to achieve positive GDP growth this year with Latvia at or near the top of the list.
     Finance Minister Gundars Berzins has predicted first quarter GDP growth could be as high as seven percent, year-on-year. Four to five percent growth is expected for the year, and that should rise to six percent in 2001. Last year GDP was 0.1 percent.
     Latvian officials, buoyed by signs that the economy is well on the road to recovery following the Russian crisis, presented some 80 investment projects in need of financing in key sectors such as transport, energy and tourism.
     "The Latvians did a very solid job in presenting themselves as part of Europe, as part of those countries from the East Bloc that have kept on the reform path," said one Nordic diplomat based in Riga.
     "We will have to see whether this pays off in terms of actual investments, but for sure it is already paying off in terms of public relations because there really were no major problems over the course of the meeting. It went very smoothly."
     BACK TO THE USSR
     Ironically, those past ties with the former Soviet Union may end up being Latvia's gateway to the future. Now, that same group of financiers says it may be time to go back to the USSR.
     Riga is one of the closest international centres to Moscow, and nearly all Latvians speak Russian.
     Though official relations between Riga and Moscow have been strained at best, many Russian companies have offices in Latvia.
     Russian trade, once the backbone of the country's economy, has slumped in the past two years because of Russia's 1998 financial crisis.
     Exports to Russia in the first quarter were not even among the top five while the entire CIS only took in 7.8 percent of the total. The EU, for example, took in 68 percent.
     Imports from the CIS were better, accounting for 15.3 percent, but still paled in comparison to the 53.5 percent share held by the EU.
     But Russia's economy is on the mend, and analysts say Latvian firms are well placed to benefit from the upturn.
     "With Russia recovering the Balts should indeed face back to the East after 10 years of independence, but strengthened with Western experience as well as the financial and political backing of Western Europe and the U.S.," Hans Berndt, vice-chairman of the supervisory board of Latvia's largest bank Parex, told Reuters.
     Furthering the prospects for Latvia was the EBRD itself, which announced at the meeting that it hopes to increase its investments in Russia to pre-1998 crisis levels, focusing on the regions and energy.
     Latvia is already an integral part of Russian oil transport as its Ventspils Nafta oil terminal accounts for 10-15 percent of all Russian crude exports and analysts said it may find other sectors to exploit.
     "What might be specifically your thing is the development of Latvia as a financial centre...having an extremely big neighbour where the financial services are not yet as they should be," said Bernard Snoy, a director at the EBRD.
     "It may very well be that a number of (investors) would decide to use a sound financial centre...to do some of their transactions," he added.

Latvian petition opens to ban utility sale
Copyright 2000 Reuters Ltd.
By Anastasia Styopina

     RIGA, June 1 (Reuters) — Latvians were invited on Thursday to sign up to a petition calling for a referendum on whether the privatisation of utility Latvenergo should be halted, with far-reaching consequences to be considered for both the company and the nation's investment image.
     The Latvian government approved a restructuring of Latvenergo this year and the Privatisation Agency is in the middle of a tender to attract advisers for the sale of a 49 percent stake in its two thermal power stations. The winner of the tender is to be picked by July 17.
     However, the Energija trade union — seeking to keep the power monopoly in state hands — submitted a bill to parliament this spring to ban the privatisation and restructuring process.
     They also launched the drive for a referendum, which will take place if parliament rejects or amends their bill.
     Under Latvian law, the electoral commission now runs the referendum initiative. It must gather one-tenth of the electorate's signatures, 134,195 people, by June 30, if a vote is to be held.
     "If the signatures are collected and the referendum succeeds, it will not send a positive message about our country," said Roberts Indelsons, managing director of the Suprema brokerage in Latvia.
     Political leaders say a vote, even if unsuccessful, would slow Latvenergo's selloff, which ministers, parliamentarians and bureaucrats have been mulling since 1996.
     "I think only the next year (could Latvenergo be privatised) because the referendum makes for a little bit slower process. We have to wait until the referendum is finished and it really could be only in autumn...this year, and then we can start some work," Economy Minister Aigars Kalvitis told Reuters.
     FROZEN SELLOFF WOULD DAMAGE IMAGE
     Analysts say a referendum result freezing the selloff could do irreparable damage to the image of a country already suffering from failures and setbacks in privatising other firms.
     "It could weaken Latvia's position in relations with international investors because they will see that the rules of the game can change here and those investors that wanted to participate in the Latvenergo privatisation will be disappointed," said Suprema's Idelsons.
     Officials say the referendum also threatens Latvenergo's plans to cooperate with neighbouring Estonia's Eesti Energia and its 10-year investment programme.
     Latvia and Estonia signed a cooperation agreement on May 26 that includes the option of exploring an eventual merger.
     "Latvenergo will be prohibited from participating in any mergers or aquisitions in anything that is connected with privatisation," said Privatisation Agency head Janis Naglis.
     "If we prohibit these opportunities, we are prohibiting Latvenergo from developing further," Naglis said.
     Latvenergo's total 2000 investments, in both networks and generating units, are planned at 61.298 million lats ($101.3 million), part of its 10-year programme of one billion lats by 2008.
     Last year the company invested 69.3 million lats in the modernisation and development of its network.
     "Without attracting credits and without mortgaging property, such an investment programme is impossible," Naglis said.
($1-0.605 Latvian lats)

Schroeder to vist Baltic states before Putin summit
Copyright 2000 Reuters Ltd.
     BERLIN, June 4 (Reuters) — Chancellor Gerhard Schroeder will become the first German head of government to visit Lithuania, Latvia and Estonia when he travels to the three ex-Soviet Baltic states this week to discuss their entry to the European Union.
     German government sources said it was significant that Schroeder, whose three-day visit begins in Estonia on Monday, was squeezing in a Baltic trip before holding a summit with Russian President Vladimir Putin in Berlin later this month.
     Russia views its three former satellites' drive for closer relations with the West with suspicion and is particularly opposed to their desire to join the NATO military alliance.
     Estonia, whose President Lennar Meri and Prime Minister Mart Laar will hold talks with Schroeder in the capital Tallinn, is due to join the first wave of the EU's expansion to the east, which will begin in 2003 at the earliest.
     Schroeder is due to deliver a speech to the Estonian parliament on Tuesday before departing for Latvia, where he is scheduled to meet President Vaira Vike-Freiberga and Prime Minister Andris Berzins in the capital Riga, followed by talks with students.
     Lithuania, which like Latvia is slated for the EU's second phase of expansion towards the end of the decade, is Schroeder's final point of call on Wednesday.
     He will hold discussions with President Valdas Adamkus and Prime Minister Andrius Kubilius in Vilnius before a walkabout in the Lithuanian capital's old town.

Latvia-Russia dialogue prospects to be discussed
     RIGA, June 5 (Itar-Tass) — A two-day conference, which is to begin in the Latvian resort town of Jurmala on Monday, will deal with prospects for Latvia-Russia dialogue. The conference will be attended by parliamentarians, political scientists of the two countries as well as by experts from Denmark, Sweden, and Estonia.
     A report on Russia's foreign policy is to be made by Professor Sergei Karaganov. His colleague, Igor Jurgens of Russia's Council for Foreign and Defence Policies (CFDP) will devote his analytical survey to the problems of the two countries' economic contacts. The CFDP is partner of the Latvian Friendship and Cooperation foundation. It is these two organisations that have arranged the convocation of this conference. Its participants intend to analyse the current state of relations between the two countries.
(c)2000 ITAR-TASS


  Picture Album

This week's picture is from the interior of the Roman Catholic Church in Aglona, taken in July of 1995. This view shows the rear balcony and organ, and gives some sense of the glorious space inside the church.

Aglona Church organ
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