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Eesti Ringvaade

INTERNET EDITION
A Weekly Review of Estonian News
ISSN 1023-1951
Volume 5 Number 17
April 23-29, 1995

Regional Co-operation
The Same Standards Should Be Applied For Membership Of Council OfEurope: President Meri
Estonian President Addresses A Session Of The Trilateral Commission
Prime Minister To The Ambassadors To Estonia: No Major Change In Policy Directions
Sweden Helps Estonia Destroy Sea Mines
Baltic States Discuss Tripartite Agreement On The Return Of IllegalImmigrants
President Meri Received Osce Human Rights Commissioner
Representatives Of NATO And Estonia Meet
Estonia Has Not Held Talks On Dual Citizenship With Russia
Israel Offers To Join Forces With Estonia Against Crime
Russian Deputies From Estonian Riigikogu Say Russian Duma Offers MoralSupport
Domestic News
Leaders Of The "Perm" Crime Gang Detained
Estpla-1 Returns For Two Weeks Leave
New Director Of Citizenship And Migration Board Appointed
Economic And Commercial Notes
Japanese Tariffs For Estonian Goods Lower
Vahur Kraft Is New Governor Of The Bank Of Estonia
Privatisation Agency Board Changed
Estonian Telephone Co. Reports First Profitable Year
Russian Metals Industry Bank To Open Representation In Estonia
Baltic Republics Fund To Expand
Foreign Furniture Companies Move To Increase Links With Estonia
Coca-Cola Determined To Remain Market Leader In Baltics

REGIONAL CO-OPERATION

THE SAME STANDARDS SHOULD BE APPLIED FOR MEMBERSHIP OF COUNCIL OFEUROPE: PRESIDENT MERI

25 April. President Meri said in his speech to the Parliamentary Assemblyof the Council of Europe (CE) in Strasbourg that he is satisfied with thedecision of the CE to suspend debate on Russia's membership due to thecontinuing undeclared war with Chechnya.

"The Parliamentary Assembly is the conscience of our continent and Iapplaud your fortitude," Mr Meri said. He also criticised the countriesthat still seek the quick admission of Russia to membership of the Council. "Itis an example of using double standards and the Council of Europe should notaccept it," he said. The CE should encourage democratic development in Russia with all its resources, but Russia should become a member only if itsatisfies the requirements of a democratic country and stops violating humanrights, Mr Meri stressed.

President Meri supported Ukraine and Moldova in their aspirations tobecome members of the CE. The President of the CE Parliamentary AssemblyMiguel Angel Martinez said on Monday that Moldova and Albania could becomemembers in June.

Answering questions from Russian reporters, Mr Meri said that for himWorld War II ended with the withdrawal of foreign military forces from Estoniaon 31 August 1994. He added that all countries can commemorate those killed inthe War in the same way, but individually, one can only celebrate the victory over a totalitarian system.

Mr Meri also said, "Estonia is making itself ready to perform thetask of a chairing country in the Committee of Ministers of the Council ofEurope". "It is a great honour to Estonia, but it is also achallenge. We are continuing to refine the ideas that would be our prioritiesas the chairing country of CE." The chairing country of the CE is changedevery six months in alphabetical order. Estonia will take up the position on10 November.

ESTONIAN PRESIDENT ADDRESSES A SESSION OF THE TRILATERAL COMMISSION

24 April. On Saturday, the Estonian President, Lennart Meri, delivered aspeech at a session of the Trilateral Commission in Copenhagen.

Mr Meri spoke about Estonia's development after the restoration ofindependence, the course of integration into European structures and effortsto normalise relations with Russia.

The Trilateral Commission was founded more than 20 years ago as a forumof prominent European, North American and Japanese politicians, executives,scientists and journalists.

On Sunday, the forum focused on Russia's domestic and foreign policy anddiscussed the European Union's future, European and East Asian securityproblems and the state of the world economy.

In Copenhagen, the President met with Mr David Rockefeller, the founder and honorary chairperson of the Trilateral Commission.

PRIME MINISTER TO THE AMBASSADORS TO ESTONIA: NO MAJOR CHANGE IN POLICYDIRECTIONS

28 April. In a speech to foreign ambassadors and diplomats accredited toEstonia, Mr Vähi said on Friday that his "Government will not stepback from the main political direction and positive continuity in governingthe country, which has been carried out in Estonia during the last three years". "I stress that the main directions in Estonia's foreign andeconomic policy will not change," Mr Vähi said.

Mr Vähi said his Government is aiming at raising the effectivenessof the state apparatus, developing infrastructure in the country regions andfinancing regional development projects, as ways for faster development. Healso stressed consideration for the cultural and educational spheres as the main guarantors of societal and national independence.

Speaking on foreign policy, Mr Vähi said the broader policy willremain unchanged. He said the two main themes of foreign policy which emergedduring the office of former governments, which were the normalisation ofrelations with Russia and the integration into European structures, will also determine the directions taken by his Government.

As for relations with Russia, Mr Vähi said his government's approachwill be pragmatic, and he saw concrete solutions for several issues of mutualinterest, adding that Estonia still supported Russia's democratic development.

As for the other main foreign policy issue—the integration intoEuropean structures—Mr Vähi said the next important development wasthe signing of the association agreement with the European Union, which willbe done by the Estonian Foreign Minister Riivo Sinijärv on 29 May, andstarting of the ratification process of the agreement.

Mr Vähi said the priority in foreign economic policy after signingthe European Agreement is to become a GATT/WTO member state. Estonia hasalready started negotiations with the organisation towards this aim. He alsonoted that moving towards the WEU and NATO to strengthen our securitysituation should be continued with the intensification of our active participation in the Partnership For Peace programme.

SWEDEN HELPS ESTONIA DESTROY SEA MINES

28 April. On Friday an Estonian-Swedish agreement was signed in Tallinn,according to which four Swedish Navy ships will arrive in Tallinn on 6 May tostart clearing sea mines from Estonia's territorial waters.

Head of the Estonian Navy Roland Leit told ETA that according to hisknowledge there were eleven sea mines in Estonian waters. Those to bedestroyed first will be the five near the former Russian military base atPaldiski. After that the seaway to Paldiski should be completely safe.

The Swedish vessels are mine sweepers and include divers and automatedequipment for the mine disposal work. During the work the mine sweepers alsointend to search for other mines and lay the foundation for another seaway tothe Paldiski port.

Mr Leit added that, from the Gulf of Finland, two thirds of the mineslaid during World War II have been found, which leaves another 3000 mines yetto be discovered.

Sweden will cover the expenses of the Swedish Navy in the operation,which, according to Swedish Ambassador Lars Grundberg, will cost close to 2million Swedish krona.

The work is to start on 8 May and end on 18 May.

BALTIC STATES DISCUSS TRIPARTITE AGREEMENT ON THE RETURN OF ILLEGALIMMIGRANTS

27 April. Representatives of the three Baltic states' foreign ministriesand migration departments discussed in Riga on Thursday, a tripartiteagreement on returning illegal immigrants, the Estonian Foreign Ministryspokesman Jüri Arusoo told ETA.

The need for joint regulation of the problem of illegal immigrantsbetween Estonia and Latvia emerged after a Latvian ship carrying Kurdishimmigrants ran aground near the Estonian island of Saaremaa in December 1994.

The discussed agreement is to become an addition to the Baltic states'visa-free agreement which is to be signed soon.

PRESIDENT MERI RECEIVED OSCE HUMAN RIGHTS COMMISSIONER

27 April. President Lennart Meri met with OSCE Human Rights Commissioner,Mr Max van der Stoel and OSCE delegation members on Thursday. The GeneralDirector of the Citizenship and Migration Board Andres Kollist also took partin the meeting.

Mr van der Stoel was interested in President Meri's response to thestatement by Russia's Foreign Minister Andrei Kozyrev. President Meri stressedthat even if the statement was considered as a question of Russia's domesticpolitics, Estonia must still view it with great concern.

They also discussed the situation in Russia, Ukraine, Crimea, and theviolation of human rights in Chechnya as the main focus. President Meristressed that Europe has trust in the OSCE to find a solution to the Chechnyacrisis and the OSCE must show that it is worthy of that trust. Mr Max van derStoel informed the President about the efforts of the OSCE to end the war inChechnya.

Mr Max van der Stoel stressed that he hoped to help the increase of trustbetween the Russian Federation and Estonia. For that reason he needed to befully informed of the events in Estonia so it would enable him to reject theaccusations which differ from what he has observed himself.

Mr van der Stoel, in another meeting with the Estonian Foreign Minister,said that he hoped that resident aliens would apply for residency permitsbefore the 12 July deadline.

REPRESENTATIVES OF NATO AND ESTONIA MEET

27 April. Representatives of NATO and Estonia met in Brussels to discussthe Partnership for Peace Planning and Review Process (PARP). In the 16+1meeting an assessment was given of the state of Estonia's national defence,and the objectives of co-operation for the next three years were determined.

Attaining these objectives is necessary for unifying the principles ofEstonia's national defence with those of NATO. This is the pre-condition forco-operation with members of NATO and the armed forces of these countries.

Fourteen countries have joined PARP. Under PARP Estonia gave NATO at thebeginning of the year a survey on its defence policy and defence options. NATOprovided its review of the situation in Estonia and determined the fieldswhere development in Estonian national defence and armed forces was necessary to attain the objectives of PARP.

ESTONIA HAS NOT HELD TALKS ON DUAL CITIZENSHIP WITH RUSSIA

April 27. Authorities in Tallinn strongly rejected a statement that saidthere have been negotiations with Russia on dual citizenship for Russiansliving in Estonia.

Estonia resolutely denied a report by Abdullakh Mikitayev, chairperson ofthe Russian Federation President's citizenship commission, who was quoted byInterfax as saying that Russia had begun talks with Estonia on the issue ofdual citizenship. Mikitayev had made the remarks at a meeting of thecommission on Wednesday.

Estonia is not holding talks with anybody in Russia on that issue,Foreign Ministry spokesperson Jüri Arusoo said on Thursday.

Mr Andres Kollist, Director General of the Estonian Migration Fund, whois to take over as Director General of the Citizenship and Migration Board,denied Mikitayev's claims. "The issue has not even been discussed inEstonia," he said.

Mr Kollist added that dual citizenship is not in Estonia's interests.

ISRAEL OFFERS TO JOIN FORCES WITH ESTONIA AGAINST CRIME

25 April. Israel's Ambassador to Estonia Tova Herzl, in a meeting onTuesday with Prime Minister Tiit Vähi, suggested that the two countriesjoin forces against organised crime.

It was noted during the meeting noted that, due to their historicalexperience, both countries attach top priority to national security, whichforms a good basis for co-operation in the field of defence.

The parties also stressed the need to boost bilateral trade, all the moreso as the two countries' relations can be said to be very good.

The Israeli ambassador also had a meeting with Interior Minister EdgarSavisaar on Tuesday. They exchanged information and discussed the idea ofsetting up a crime data base, the Interior Ministry press service told BNS.

RUSSIAN DEPUTIES FROM ESTONIAN RIIGIKOGU SAY RUSSIAN DUMA OFFERS MORALSUPPORT

27 April. Five members of the Russian faction in the Riigikogu (Estonia'snational parliament) visited Moscow on an invitation by the committee for CISaffairs of the Russian State Duma (parliament's lower house).

The main result of the visit is that the newly elected Estonian deputieshave received moral support from Russian MPs, MP Nikolai Maspanov told BNS. "And,of course, we are being congratulated all the time, for finally theRussian-speaking population (in Estonia) has its own faction in the Riigikogu," he added.

The Russian-speaking members of the Riigikogu, at meetings with theircounterparts in Moscow, spoke about political and economic relations, culturalcontacts and the human rights situation in Estonia.

Mr Maspanov said the Estonian MPs at the meetings had raised the issue ofthe high customs duties imposed by Russia on goods and commodities coming fromEstonia. The Russian side, however, "considers that political issues mustbe resolved first," he said.

The Estonian MPs stayed in Moscow until Friday. They meet with thewell-known champion of economic reform in Russia, Yegor Gaidar, presidentialaide Georgi Satarov and officials of the Moscow city government.

DOMESTIC NEWS

LEADERS OF THE "PERM" CRIME GANG DETAINED

28 April. Estonian Internal Affairs Minister Edgar Savisaar told a pressconference on Friday that the police had arrested the leaders of the so-called"Perm gang", one of the most influential organised criminal gangs inEstonia.

The leader Nikolai Pleskov and five members, who allegedly were involvedin illegal trade in alcohol, blackmail, car thefts and offering "protection",have been arrested.

On 24 April a leader of a cartel uniting several criminal gangs, BorisMalinovski, was also arrested, Mr Savisaar said. A forged Estonian passportand four police radios were found on him at the time.

The Director General of the Security Police Jüri Pihl said that tiesbetween criminal gangs and state authorities had also been discovered. Healleged that guards of Tallinn's Central Prison had taken a cellular phone toPleskov's cell during the investigation. The group is also said to have ties with banks, passport officers and Tallinn Motor Vehicle Registry officials.

The investigation will continue, and the first cases are to be presentedto the court in three months, officials said.

ESTPLA-1 RETURNS FOR TWO WEEKS LEAVE

28 April. The first Estonian peacekeeping unit ESTPLA-1, which was on itsfirst mission in Croatia for two and a half months, will return for two-weeksleave in Estonia on Monday.

Ms Leelo Linask from the Estonian Defence Forces Headquarters pressservice told ETA that ESTPLA-1's work included observing the cease-firebetween the Croatian Serbs and government forces.

The first Estonian peacekeeping unit on a UN peacekeeping mission inCroatia serves as a part of Danish battalion DANBAT. The second platoonESTPLA-2 is currently been prepared. The platoon will eventually be part ofthe Baltic Peacekeeping Battalion, based on forces from Estonian, Latvia andLithuania.

NEW DIRECTOR OF CITIZENSHIP AND MIGRATION BOARD APPOINTED

26 April. Mr Andres Kollist was appointed as the new Director General ofthe Estonian Citizenship and Migration Board by the Internal Affairs Ministeron Wednesday. The present Director General Ms Ene Rebane will continue as the Deputy Director General.

Mr Kollist was the founder and the first Director General of the thenMigration Board. When the Citizenship and Migration Boards were joined MrKollist became the head of the Migration Fund. At the same time he was aconsultant to the Internal Affairs Minister on citizenship and migrationissues.

Mr Kollist said the issues of citizenship and migration had to bedepolitised and that the government coalition and opposition had to reach someagreement in this area.

As to the 12 July 1995 deadline for aliens living in Estonia to apply forresidence and working permits, Mr Kollist said that people who apply in timeshow their loyalty towards the Estonian state, while those who do not applyshow that they do not consider Estonia's laws important.

ECONOMIC AND COMMERCIAL NOTES

JAPANESE TARIFFS FOR ESTONIAN GOODS LOWER

24 April. The Japanese government has begun operation of the GeneralisedSystem of Preferences for Estonia, which enables Estonian exporters to exportgoods to Japan with lower tariffs than generally applied, the Estonian ForeignMinistry press service told ETA on Monday.

The only condition to benefit from the GSP is that the goods must be ofEstonian origin, the Foreign Ministry press service said.

VAHUR KRAFT IS NEW GOVERNOR OF THE BANK OF ESTONIA

28 April. President Lennart Meri appointed Mr Vahur Kraft as the Governorof the Bank of Estonia. Mr Kraft was the nominee proposed by the Board of theBank of Estonia.

Mr Vahur Kraft was born in Tartu in 1961. He graduated from TartuUniversity in 1984, majoring in finance and credit. He continued his educationwith training courses in Vilnius, Moscow, Stockholm and Washington.

Mr Vahur Kraft had been the Deputy Governor of the Bank of Estonia since1991.

PRIVATISATION AGENCY BOARD CHANGED

25 April. The Government changed the Board of the Privatisation Agency,Prime Minister Tiit Vähi told a news conference on Tuesday.

Six members of the board were withdrawn and the new members are nowMinister (Regional Affairs) Ants Leemets, Avo Mölder, Tiit Tammsaar, AntsLaos, Laine Tarvis, Robert Lepikson, Economic Affairs Minister Liina Tõnissonand Finance Minister Mart Opmann.

Of the former members, MP Mihkel Pärnoja and representative of theBank of Estonia Sven Tolp will continue their work in the board.

Mr Vähi said there had been criticism that the Agency had madedecisions without making its deliberations public. "We hope that the newBoard will turn more attention to this concern," Mr Vähi said. Thechanges should not be looked upon as changing the course of privatisation, butas part of the process of changing the previous government's ministers, Vähisaid.

ESTONIAN TELEPHONE CO. REPORTS FIRST PROFITABLE YEAR

27 April. The Estonian Telephone Co. Ltd. reported a 37 million kroon endof year profit for 1994, Chairperson Toomas Sõmera told BNS after ageneral meeting of shareholders.

The company's planned negative profit was 44 million kroons in 1993.Share capital increased twofold last year—to 667 million kroons. Thisyear, the Estonian Telephone Co. Ltd. plans to earn 50 million kroons inprofit, all of which will be re-invested.

Mr Sõmera also said the company had invested nearly 800 millionkroons over the period of 1993-1994 and had plans to invest 360 million thisyear. The investment funds were mainly taken from the company's own resourcesand as bank loans.

Up to 20 per cent of the money invested is used for improving the qualityof the company's existing analogue telephone network. About 16 million kroonswill be needed to replace the existing pay phones around the country with 800new ones.

During its two years of operation, the company has made 80 000 new phonelines available to customers. Eighty per cent of the new phones were obtainedby individual customers and 20 per cent by business, Sõmera said.

Most of the new lines, or 80 per cent, were installed in the country'stowns and cities and 20 per cent went to rural areas.

Estonian Telephone Co. Ltd. was set up as a joint venture of thetelecommunications companies of Estonia, Finland and Sweden in 1992. TheEstonian government owns 51 per cent of the shares of the company.

RUSSIAN METALS INDUSTRY BANK TO OPEN REPRESENTATION IN ESTONIA

27 April. Russia's Basis Bank, which obtained permission from the Bank ofEstonia last week to open a representation, is owned by several large Russianmetal industry corporations, the Bank of Estonia reported. These major Russianmetals sector companies account for 86 per cent of the bank's share capital, while smaller shareholders include the Russian metal sector's insurers Merosand some other banks.

"Judging upon the names of the owners, it seems that they arerepresenting a metals industry group of considerable importance," Bank ofEstonia spokesman Kaupo Pollisinski told BNS.

The Basis Bank is expected to open its office in Maardu, to the east ofTallinn. A representative office only gives the bank the right to givebusiness consultations.

BALTIC REPUBLICS FUND TO EXPAND

28 April. Hansa Investments Ltd. plans to expand its investment to includethe Baltic region through the investment company Baltic Republics Fund (BRF),Äripaev (business paper) reported.

Hansa Investment has so far invested 10 million USD in Estonia and willchannel further regional investment through the BRF investment fund which isjointly owned by the London Brokerage firm, Cresvale Limited, and HansaInvestments. BRF has approximately 30m USD to invest in the region, and holds significant stakes in some of Estonia's successful companies such asHansapank, Eesti Gaas and Viisnurk.

FOREIGN FURNITURE COMPANIES MOVE TO INCREASE LINKS WITH ESTONIA

28 April. A joint venture established with Danish capital has investedmore than 32m EEK in its Estonian operation, Äripäev reported on 28April. Further investment of 50m EEK is also planned by the company. Thecompany is 70 per cent owned by the Danish Flexa-Mobler furniture company.

Äripäev also reported that Sweden's leading furniture manufacturer, IKEA, is now re-establishing ties with Estonian producers.

The Tallinn-based Äripäev newspaper also reported that an IKEArepresentative held talks with the leaders of the Marlekor and Wermo furniturefactories while on a visit to Estonia last week. IKEA is interested inEstonian-made painted and solid wood furniture.

COCA-COLA DETERMINED TO REMAIN MARKET LEADER IN BALTICS

27 April. Coca-Cola is clearly the leader in the Baltic non- alcoholicbeverages market, and is set to increase its lead over competitors in thefuture, said Peter Cutting, director general of Coca-Cola Baltic BeveragesLtd.

Coca-Cola Beverages Estonia Ltd. was set up as a joint venture with alocal state-owned plant in Tallinn in May 1992. From October 1994, theEstonian partner in the venture is the privately-owned AS TallinnaKarastusjoogid, which bought the plant under privatisation. The Coca-Colaparent company has the majority stake in Coca-Cola Beverages Estonia Ltd.

The Estonian partners this year transferred the production of allnon-Coca-Cola products from the main production facility in Tallinn to Jõhviin Northeast Estonia, freeing the Tallinn plant entirely for products carryingthe international trademark.

Coca-Cola Co. has invested nearly 14 million dollars in the Tallinnplant. Turnover has doubled in the two years since the joint venture was setup.

Coca-Cola products made in Estonia are also sold in Latvia and Lithuania.Three local subsidiaries, located in each of the Baltic capitals,respectively, are governed by the Tallinn- based holding company Coca-ColaBaltic Beverages Ltd.