Washington -- "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," Marc Grossman, Assistant Secretary of State for European and Canadian Affairs told the European Subcommittee of the Senate Foreign Relations
Committee July 15.
Grossman outlined the Clinton administration's policy goals and its accomplishments and plans in the political, economic and security arenas. He noted that Deputy Secretary of State Strobe
Talbott recently led the U.S. delegation to the inaugural meeting in Riga of the Partnership Commission set up under the U.S.-Baltic Charter signed in January.
He pointed out that one message the Charter sends is that "the Baltics will not be excluded or discriminated against [in NATO or other institutions] 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."
Grossman discussed regional initiatives such as the Council of Baltic Sea States, the Baltic-American Enterprise Fund, the Barents Euro-Arctic Council, the Arctic Council, and the Northern
Europe Initiative (NEI).
One purpose of the NEI, he said, is to implement an "inclusive policy toward Russia." The 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, 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.
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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.
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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.
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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.
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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.
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Russia and the Northern Europe 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 Europe 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.
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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.
