Estonian Review E E S T I R I N G V A A D E VOLUME 16 NO 40 OCT 11 - 19, 2006

THE STATE VISIT OF HER MAJESTY QUEEN ELIZABETH II AND HRH PRINCE PHILIP, THE DUKE OF EDINBURGH TO

Queen Elizabeth II arrives to the state dinner

Speech by Her Majesty the Queen at the State Dinner in , Estonia on Thursday 19 October Queen Elizabeth II arrives in Estonia Your Excellency, I am most grateful to you for your generous words, as I am for the warmth of the welcome Prince Philip and I have received in Estonia. This is the first visit we have paid here, but we already feel that we are amongst friends. You have spoken about the historic ties between the and Estonia. Our shared history, particularly during Estonia’s struggle for independence, is something that we will never forget, and tomorrow we will commemorate the 112 British servicemen who died fighting for Estonia. It is fitting that this naval cooperation between our two countries is being re-established with your purchase of three British naval mine-hunters, the first of which you will, with typical generosity of spirit, name after Admiral Cowan, who commanded the British cruiser squadron Queen Elizabeth II arrives in Kadriorg which fought alongside the Estonian forces. It will be a

pleasure for me to present a funnel badge for the ship tomorrow. I also look forward to meeting some of your servicemen who will shortly be joining British forces in South Afghanistan. I know that it is a major undertaking for you, and will be your biggest mission abroad, for which we are most grateful. Estonian peace keepers have served with distinction in Bosnia, Kosovo, Iraq, Afghanistan and elsewhere, often in considerable danger, and yet despite tragic losses and injuries your resolve has never wavered. Your commitment to work for peace and stability in the world’s trouble spots is second to none. Your Excellency, any visitor to Estonia inevitably is struck by both its history and its modernity. Queen Elizabeth II and the Duke of Edinburgh We are here in this beautiful hall in the fairy-tale attended a concert and the British ambassador's setting of the Old Town, which richly deserves its reception at Art Museum. (Continued on page 2)

(Continued from page 1) I would like to recall another happy day in the history of our nation – 12 December 1918 when status as a world heritage site. And yet, only a short thousands of Tallinners welcomed the arrival of the time ago, I was travelling through your rapidly British fleet. The assistance and support that Great expanding business district to visit your eye- Britain provided to Estonia in the difficult years of catching modern art gallery. The creativity, our war of independence in 1918-1920 was dynamism and optimism of the Estonian people are invaluable. We honour the memory of the British visible everywhere, and much in evidence in the servicemen who gave their lives in the fight for conversations we have had and the stories we have Estonia’s independence, and memorial plaques in heard. I see a strong similarity between our two Tallinn and Portsmouth commemorate them. As a countries in this: while we are both rightly proud of mark of respect, one of the warships that will arrive our cultural heritage, we know that we cannot just from Britain to supplement our navy will be named dwell on the past, but rather we must draw strength after Admiral Cowan. from it as we face the challenges of the future. Details of the activities of the merchant guild Estonia’s development since regaining its that built this house were first recorded exactly 600 independence has been remarkable. Your years ago in 1406. By then, Tallinn had already been entrepreneurial spirit, your innovative use of a member of the for more than a information and communication , and century and played an important role in international your open and transparent economic climate has trade, in particular sea-borne trade. Among other resulted in dramatic growth, led by international Hanseatic partners, I would like to point to , trade and investment. I am pleased that which is also confirmed by the ashlar stone on the commercial links with the United Kingdom have façade of this house displaying the coat of arms of contributed to this: Prince Philip saw a striking the local Hanseatic office from London. Ships example when he opened a British-owned factory brought not only goods to us, but also people from here this afternoon, and was able to discuss future all over Europe, who came here to live bringing new developments with members of the British-Estonian ideas and . Among others, Oxford Chamber of Commerce, who celebrate their tenth University became one of the recognised places of anniversary this year. learning. We have seen how entrepreneurial spirit Your Excellency, I have inevitably been and openness to new technology have flourished in reflecting on a week in which I have also visited the United Kingdom throughout centuries, and this and , countries that have shared is something that we also promote in Estonia today. with you so many of the dark pages of twentieth In addition, your country was a source of inspiration century history. I have seen three very different for important social ideas affecting the development countries, but have seen one feature that you all of the ideals and values of the Estonian nation. share. It is that indomitable spirit, which was able During the difficult period of foreign to keep alive the flame of independence, despite all occupation after 1940, we drew strength from a attempts to extinguish it, during the very worst of dedication to democratic values and ideals. They times. It is this spirit which has driven forward the helped us to withstand alien ideology and violence rapid political, economic and social change in all and to maintain the desire for freedom for half a your countries, change which is not something to be century. The policy of non-recognition of Soviet measured simply by statistics, but in the freedom, occupation by the United Kingdom and other peace and prosperity which all your peoples now democratic countries supported the perseverance of enjoy. our people. We are deeply grateful to the United Your Excellency, history dictated that our Kingdom for receiving thousands of our refugees countries endured a long and enforced separation in who went on to become good citizens. One of their our relationship. But now, as partners in the descendants has even been elected to the House of , and Allies in NATO, we are closer Commons. than ever before, and ready to face together the After regaining independence we know what challenges of the twenty-first century. I wish you a normal society, based on civil values, rights and and your people every happiness and success, and liberties is like. If we add to this the nation’s invite your guests to join me in a toast to: creative energy that was released after our people The President and the People of the Republic regained their freedom, you will understand how our of Estonia. comprehensive reforms that laid the basis for the rapid development of today were born. The development of relations between our Speech by the President of the Republic two countries has also been dynamic in the past 15 at the State Dinner years. Trade has grown considerably and, on the whole, is balanced. UK companies have invested in Your Majesty, Estonia directly, as well as through the Nordic Your Royal Highness, countries. I would like to use the opportunity to Excellencies, thank you for the extensive assistance that the Ladies and Gentlemen! United Kingdom has provided to Estonia in a number I have the great pleasure of welcoming you, of areas, such as the rebuilding of the defence Your Majesty and Your Royal Highness on your State forces, and research, and the Visit to Estonia. This remarkable event will become a development of the police force, to give just a few milestone in the history of relations between our two examples. In various professional fields British countries. The Estonian people have welcomed your experts have worked in Estonia and shared their visit with great warmth. experience. I would like to express particular gratitude to the British Council for their systematic FOREIGN NEWS and enthusiastic work in Estonia. British Foreign Secretary Praises Military This State Visit is definitely a very serious confirmation of the extensiveness and closeness of Cooperation with Estonia relations between Estonia and the United Kingdom. Oct 19 - British Foreign Secretary Margaret But it also marks the beginning of a new phase in Beckett, who accompanied Queen Elizabeth II which our two countries cooperate as good partners, during her visit to Estonia, recognized the two and where the word “assistance” has largely been countries' successful military cooperation in replaced by the word “cooperation” in its true sense. Afghanistan during her lunch with Estonian As a beautiful symbol of this, a few hours ago we Foreign Minister Urmas Paet. listened to the concert by the Estonian Philharmonic Paet said that Estonia shares the same Chamber Choir under the direction of its principal position with Great Britain concerning further conductor Paul Hillier from the United Kingdom. Or enlargement of the European Union that all another example from a completely different field is European countries that are ready for accession, the purchase of three warships from the United meet the required criteria and want to accede must Kingdom. In pursuing their purchase Estonia have the opportunity. competed on an equal footing with other countries. "In this it is important that accession talks The time has passed when our defence forces had to could also continue with and naturally also rely heavily on foreign assistance. In the economy, Croatia," Paet added. we can see that we have to compete with many Paet underlined that Estonia and Great other countries to attract British investment. I hope Britain have similar views also concerning relations that our current, internationally highly appreciated between and . business climate will attract more British companies "The conduct Russia currently permits itself here. with respect to Georgians in Russia is absolutely For two and a half years now Estonia has unacceptable and such conduct cannot be permitted been a member of NATO and the European Union. and an end must be immediately put to it," the This has also significantly stimulated the Estonian foreign minister said. development of bilateral relations with the United In the Iraq issue the two foreign ministers Kingdom. came to the common view that handing over power Estonia is interested in the capacity of NATO to Iraqi authorities depends above all on the wish of and the European Union to face the challenges of the Iraqi government. today’s world. It is extremely important for us that both organisations are able to make effective Formin: EU Must Support Georgia contributions to peace, paying particular attention to crisis spots and neighbouring regions. Estonian Oct 17 - Estonian Foreign Minister Urmas Paet soldiers stand side by side with British troops to said the European Union (EU) must be ready to maintain the peace in several regions of the world. I support Georgia financially in case Russia would particularly like to point out Afghanistan, should establish a full blockade of the country. where the cooperation between our two countries Paet attended the EU foreign ministers' has reached a new level. I believe that your council at which events in Georgia, North Korea and forthcoming meeting with the Estonian soldiers who Iran, as well as developments in the Western will soon be dispatched there and with their families Balkans and the Middle East were discussed. will be an inspiring confirmation of the friendship in Besides, those issues the meeting addressed the arms between the two countries. The people of forthcoming EU enlargement, the approaching Afghanistan need peace and stability to enable them summit with , the African strategy of the EU to continue the reconstruction that its inhabitants so and the situation in Sudan and Zimbabwe. much expect. The ministers stated that the EU had to Estonia and the United Kingdom are actively contribute to the alleviation of tension in interested in the success of the European Union and relations between Georgia and Russia. its influence in the world. We consider it important In the final conclusions the foreign ministers to continue one of the most successful undertakings expressed deep concern over the Russian sanctions, of the EU enlargement. The EU is facing a serious appealing to Russia to restore normal diplomatic challenge in ensuring its competitiveness in a communication with Georgia and to stop persecution globalising world. of Georgian citizens. Your Majesty, Paet underlined that the EU must clearly tell Many of my compatriots have already Russia that use or threat of force was unacceptable. welcomed you to Estonia. For us, this state visit was "Russia must stop the blockade as well as all indeed a much anticipated event. Tomorrow there kind of activity with respect to Georgia that incites will be a meeting in the Town Hall Square, where tension, including repression of Georgians in our people have traditionally received their special Russia," Paet said. He added that at the same time guests and have listened to songs and sung songs the EU must be ready to find financial opportunities themselves. By welcoming you they also forward to help Georgia in case Russia should establish a full their best wishes to the British people. blockade of the country. Let me propose a toast to you, Your Majesty The foreign ministers welcomed accession of and Your Royal Highness and to our very good Bulgaria and to the EU and appealed to the friends, the people of the United Kingdom. acceding countries to continued efforts in the implementation of reforms.

3 Paet said that the acceding countries would aspirations for NATO and European Union (EU) and have to continue reforms and cooperation with the recognizes its achievements on that course, Commission in order to become examples for other simultaneously appealing to the country not to yield countries wishing to become members of the EU, to provocations and to avoid moves that could be but at the same time Bulgaria and Romania should interpreted as provocative. ratify their accession treaties at the right time. The parliament appeals to the EU member Estonia ratified the accession treaty on last countries' parliaments, the , the November 16. Parliamentary Assembly of the Council of Europe, The foreign ministers expressed their the Organization for Security and Cooperation in pleasure at the recent parliamentary elections in Europe (OSCE) and other international Bosnia and Herzegovina being peaceful and in line parliamentary organizations to immediately pay with international democratic standards. The attention to the critical situation of relations between ministers approved the recently published report on Georgia and Russia. EU participation in Bosnia and Herzegovina and discussed the role and mandate of the EU special Estonia Wants to Raise Georgian Problem representative and his office. at EU Summit Paet said that Estonia supported the despatch of an intended EU joint security and Oct 16 - Estonian Prime Minister defence policy mission to Kosovo and participation in after meeting with the parliament's foreign an international civilian mission now being prepared affairs and European affairs committees said in order to increase Kosovo's administrative capacity Estonia wanted to raise the issue of Georgia at and to support implementation of principles of the the common dinner of EU leaders and the law-governed state. Russian president in Lahti, . The foreign ministers unanimously Ansip said Estonia wanted to raise the issue condemned the North Korean nuclear test and of Georgia at the dinner attended by EU leaders and expressed support for October 14’s UN Security Russian president Vladimir Putin if the limited Council resolution 1718, appealing to North Korea to timetable and format of the meeting permitted. return to the six-party talks. The agreed-on topic at the dinner with the Paet said that North Korea's nuclear Russian president is strategic partnership between ambitions posed a threat both to the region and the the European Union and Russia, including in energy whole world. "North Korea must fully observe the issues. non-proliferation treaty and resolutions of the United Ansip found that also the murder of the Nations Security Council," he said. Russian journalist Anna Politkovskya could come up, The foreign trade and development as it was an issue that has deserved extremely wide ministers' meeting that took place in the framework attention. of the foreign ministers' meeting addressed The prime minister said Estonia's positions in perspectives of the European Union's trade policy, the energy issue had not changed and Estonia trade assistance, development cooperation and continued to regard prevention of energy crises as effectiveness of development aid. the most important issue in that sphere; to reduce risks Estonia along with the other Baltic countries Estonian Parlt Passes Statement in should be integrated into the EU energy system. Ansip said Estonia was concerned by Support of Georgia Russia's wish to use energy as a measure of political Oct 17 - The Estonian parliament has pressure and the Estonian prime minister would also overwhelmingly voted in favour of a statement like to see Russia acceding to the European energy in support of Georgia, appealing to Russia to charter and liberalizing its energy economy. lift sanctions against Georgia and to restore Side by side with issues pertaining to energy normal diplomatic communication. cooperation EU heads of government at their The statement was supported by 73 unofficial meeting on October 19 were also to lawmakers with only one vote against in the 101- discuss the EU policy and probably also seat body. issues of illegal immigration. The statement said that Russia had Ansip said that the central issue in unjustifiably launched an extensive and social innovation policy discussions would be establishment blockade against Georgia and its citizens. of a European Institute of Technology. In its The issue of visas has been suspended, foundation Estonia is in favour of a structure transport and mail carriage interrupted, Georgian oriented at the needs of the Estonian market and a citizens in Russia are being persecuted, a blockade structure based on networks that would be flexible of goods produced in Georgia continues, anti- and transparent and would take maximum Georgian moods are being instigated and legitimacy advantage of the existing scientific institutions' of state authority in that country is being potential. questioned. Ansip said the current discussion was of an According to the statement the Estonian institute of technology based on the network of parliament maintains that Russian moves are in European universities but it was not clear for the sharp contrast with the principles of international time being what universities would belong to it and communication. According to the statement whether there would be an Estonian university continued presence of foreign forces in the territory among them. The prime minister said Estonia would of Georgia undermines development of the country not support financing of the European Institute of and does not favour the solution of frozen conflicts. Technology by means that already existed or the By the statement, the parliament condemns use of which had already been decided. the Russian authorities' sanctions against Georgia In issues of migration Estonia is in favour of and its citizens. The parliament supports the road to an approach where no country is left alone with its democracy and freedom chosen by Georgia, its problems.

4 In that issue, Ansip said Estonia shared the Formin, Power Co CEO Discuss view of , and other countries that are Investment in Jordan currently facing these problems. Oct 11 - Foreign Minister Urmas Paet met with President Pays First Foreign Visits to the chief executive of the state-owned power supplier Eesti Energia (Estonian Energy), Latvia and Finland Sandor Liive. Oct 16 - President said at The two talked about the completion of the a meeting with the President of Latvia Vaira Estonian-Finnish undersea power cable Estlink, Eesti Vike-Freiberga that now that the European Energia's possible entry into the Jordanian market, Union and NATO have opened new possibilities and the Baltic power companies' project for building for the Baltic States, it is necessary to agree a new nuclear power plant in Lithuania. upon important messages for their states and Liive briefed the minister about the power deepen cooperation so that the voice of the company's possible investments in the Jordanian oil three countries could be heard. shale industry. The meeting also focused cooperation within Paet was pleased that Estonian enterprises' the framework of the EU Neighbourhood Policy, business activities have a global dimension. joining the Schengen visa space and cross-border "Jordan already earlier turned to us, showing cooperation. Also energy related security issues interest in our know-how of oil shale ," were discussed. the minister observed. "Now the cooperation is The President of Latvia found that it is also about to become tangible." important to cooperate before the NATO Summit in Paet met last month in New York with his and agree upon the important messages of our Jordanian colleague Abdelelah Al-Khatib. The two three countries and bring them out jointly. President talked mostly about cooperation in oil shale Vike-Freiberga thanked Estonia for supporting her technologies and intensification of economic ties. candidacy for the post of UN Secretary-General. President Ilves went from Riga to in President, Formin Discuss Foreign Policy order to meet with the President of the Republic of Oct 13 - Meeting over lunch at the president's Finland . Kadriorg office, Estonian President Toomas Two presidents discussed bilateral Hendrik Ilves and Foreign Minister Urmas Paet cooperation between the two countries and discussed the goals of Estonia's foreign policy. cooperation within the European Union, including They also spoke about upcoming foreign issues related to the EU Constitutional Treaty, the visits by the head of state. Schengen visa space and energy security. The president and the foreign minister spoke Both parties concluded that Finnish-Estonian at some length about the countries covered by the relations are developing well and cover an EU neighbourhood policy, primarily the situation of exceptionally wide range of fields. President Halonen and Georgia. found that although the relations are intensive and do not need to be controlled on the state level any more, even the most natural relations need to be Estonia Establishes Diplomatic Relations taken care of. The heads of state concluded that with St Vincent and Grenadines close cooperation in Finnish-Estonian economic Oct 16 - Estonia has established diplomatic relations is taking place, but it is necessary to jointly relations with the Caribbean island state of develop economic cooperation also with third Saint Vincent and the Grenadines. countries. The Estonian permanent representative at President Ilves thanked Finland for all- the United Nations, Ambassador Tiina Intelmann, around support and assistance both at the time of and the permanent representative of St Vincent and Estonia’s accession and also today when Estonia is a the Grenadines at the United Nations Margaret member of the European Union. In the words of the Hughes Ferrari signed on October 13 a joint Finnish President it was easy to support Estonia as communiqué on establishing diplomatic relations Estonia used to be one of the strongest candidate between the two countries. countries and has also shown itself well as a new During the conversation after signing the member state. document the ambassadors mainly discussed items At the meeting with the Finnish Prime on the agenda of the United Nations, focusing on the Minister Matti Vanhanen the EU Summit in Lahti was work of the UN General Assembly 2nd Committee discussed at greater length. The Finnish Prime dealing with economic and development issues as Minister underlined that Europe must speak with one well as election of the new secretary general. voice. The issues related to the EU’s further This year Intelmann is chairwoman of the UN enlargement and the modernisation of the Northern General Assembly 2nd Committee. Dimension, including the importance of the Narva bridge were also discussed. Both parties also Estonian MP Asks EU Leaders to Put reconfirmed the necessity to support Georgia. President Ilves met also with Max Jakobson, Pressure on Moscow his long-standing friend and a well-known public Oct 18 - Marianne Mikko, a Social-Democrat and figure in Finland. member of the European Parliament from During lunch with President Halonen the Estonia, asked EU leaders to put pressure of heads of state discussed issues related to the Russia at the Lahti summit to support freedom environment of the , Estonian-Finnish of expression and a law-governed state. education and science cooperation, and the situation "If Europe wants to be a friend of Russia, it in Iraq and Afghanistan. must not be afraid of Russia," Mikko said speaking

5 at an extraordinary meeting of the International leaders, Vike-Freiberga announced she was pulling Federation of Journalists in Brussels. out of the race. The meeting was triggered by the murder of Her decision came after straw polls in the UN the Russian journalist Anna Politkovskaya in Moscow Security Council which put Ban at the top of the and its speeches and discussions were devoted to field. the security of journalists and freedom of expression in Russia, Ukraine and . Estonia to Waive Visa Fees for Citizens of "The law of the pack prevails in Russia. The Moldova tendency of the Kremlin to solve problems by brutal force is a clear guide of behaviour for the whole Oct 18 - The Estonian government at its session society in the country," said Mikko, underlining that endorsed an agreement on the waiver of state the obligation of Europe as a friend of Russia was to fees for the processing of visa applications of be bold and honest. the citizens of Moldova. In an interview after the meeting Mikko According to the agreement Estonia will stop admitted that her belief in that the themes of human charging state fees for the processing of applications rights and freedom of the press would become of transit and single visas from citizens of Moldova central in Lahti was not very great. at Estonia's foreign representations. "It is the impotent Russian policy of the The requirement of state fees will remain in European Union that has made it possible for the effect in case of applications for transit visas and Kremlin to make Russia what it is. Fear of losing short-term single visas made at border checkpoints, energy sources is closing our mouths," Mikko said. as well as in case of multiple entry visas and visa extensions. Estonia's Kallas Calls Russian Journalist's Moldova is planning to unilaterally waive visas for citizens of EU member countries, including Murder a Big Shock Estonia, as of next January 1. Oct 13 - Vice President The visa waiver was intended as an act of has described the murder of well- goodwill by Estonia to promote business contacts, known Russian journalist Anna Politkovskaya trade and cooperation in development, education as shocking and drew parallels between the and science between the two countries situation in present-day Russia and the Soviet According to the bill, the state fee waiver for Union of the 1930s. the processing of visa applications could increase the "It was a very big shock," Kallas said. number of Moldovan citizens travelling to Estonia, He said the murder of the well-known leading to the enlivening of tourism and branches of journalist was having an impact on relations economy connected with it. between Russia and the West. As Kallas said, it has been accepted that the Estonian Parlt Ratifies Extradition Russian leadership is strengthening the state. Agreement with USA But how is strengthening of the state connected with regular killings of people who have Oct 18 - The Estonian parliament with 54 votes become a source of discomfort for the ruling circles, in favour ratified the Estonian-US agreement Kallas asked. He described as belonging to the same on the extradition of persons and a revised category the assassinations of the editor of the agreement on mutual legal assistance in Russian-language edition of Forbes magazine, Paul criminal cases. Khlebnikov, and vice president of the Russian central The Estonian-US extradition agreement bank Andrei Kozlov. takes into consideration the agreement signed Kallas added that a law was in effect in between the European Union and the Russia which allows killing people abroad. in June 2003 as well as a decision of the European Citing the assassination of the exiled Union Council of June 2002 on the arrest warrant Chechen President Zelimhan Yandarbiyev in Qatar in and the transfer procedure. The agreement updates 2004 and the memoirs of the KGB Lt. Gen. Pavel the transfer proceeding and the list of crimes Sudoplatov, Kallas said that certain dreadful serving as the basis of extradition. similarities exist between the situation in Russia now The parliament also ratified, with 50 votes in and in the 1930s. favour, the renewed Estonian-US mutual legal assistance agreement in criminal cases, which Estonia Backs 's Ban for UN modernizes provisions of the agreement signed in 1998 and speeds up the filing and proceeding of Chief applications for legal assistance. Oct 12 - Estonia supported the election of South Both the agreements will take effect after Korean Foreign Minister Ban Ki-Moon backed the parties have ratified them and exchanged by the UN Security Council for secretary- ratification letters. general of the world organization. Estonia supported Ban in the UN General Formin Invites New Counterpart Assembly vote on the successor of Secretary- to Estonia General Kofi Annan, whose term expires at the end of the year. Oct 17 - Estonian Foreign Minister Urmas Paet In mid-September the three Baltic states of at a meeting in Luxembourg invited the new Estonia, Latvia and Lithuania jointly nominated Swedish foreign minister, Carl Bildt, to pay a Latvian President Vaira Vike-Freiberga for the visit to Estonia later this year. position. During the meeting within the framework of At the beginning of this month, after the Nordic and Baltic foreign ministers' discussion consultations with the Lithuanian and Estonian the two ministers spoke about Estonian and Swedish

6 relations, cooperation between the foreign ministers and affirmed that cooperation in the European Union and opportunities of cooperation between the and world organizations is essential to both countries' foreign representations. Relations countries. between Georgia and Russia were also discussed. The ambassador congratulated the President Paet said that relations between Estonia and on Finland's successful EU presidency and expressed Sweden were good and active and the countries had a wish for strength to press on. common views on important issues of international Halonen said she has a direct and warm life. relationship with Estonia and knows many personally. Estonian Ambassador to Latvia Presents Halonen also said she has watched with Credentials great interest the political development of Estonia's newly sworn-in President Toomas Hendrik Ilves. She Oct 10 - Estonia's new Ambassador to Latvia acknowledged former President Arnold Rüütel's Jaak Jõerüüt presented his credentials to distinguished and significant role as an Estonian President Vaira Vike-Freiberga. statesman. In the conversation following the ceremony, Pajula, an and literature Jõerüüt and Vike-Freiberga discussed the history graduate of University, joined the Foreign and current state of Estonian-Latvian relations. The Service in 1992. Estonian ambassador made note of the little-known She worked at the Estonian embassy in fact that the first person to give his life for the Helsinki in 1995-98 and thereafter, as director Republic of Estonia after the country proclaimed its general of the Foreign Ministry's press and independence in February 1918 was a Latvian, information department. Johan Muischneek. From 2000-2004 Pajula represented Estonia With the present-day in mind, the parties at the United Nations and prior to being appointed reaffirmed the very good relations between ambassador to Finland she headed the neighbours. They vowed to attend to two goals: parliamentary foreign relations department. continued existence of the Estonian school in Riga, Pajula is fluent in English, Russian and and the publishing of an Estonian-Latvian dictionary. Finnish. She is married with a son and a daughter. President Freiberga thanked and acknowledged Estonia’s previous ambassador to Latvia, Toomas Estonian Ambassador to Malta Presents Lukk, for both his active work in furthering bilateral Credentials relations and performing the duties of doyen of the Riga diplomatic corps. Oct 19 - Estonian Ambassador to Malta Andres The parties also exchanged thoughts about Tomasberg, who resides in Rome, handed over international current events. They found that the his credentials to Maltese President Eddie candidacy of Vaira Vike-Freiberga for UN Secretary Fenech Adam. General resulted in increased interest toward the In the conversation following the ceremony Baltic States and positive coverage for the Baltic of handing over of the credentials the ambassador region. In addition, the nomination of the Latvian and the president spoke about the good relations President as a candidate led to improvements and between the two countries, about the European more transparency in the procedure for electing the Union and its enlargement and about the European Secretary General. Constitutional Treaty. They also underlined the Jaak Jõerüüt was born on 9 December 1947. importance of small countries' cooperation in the He graduated with an economics degree from the European Union. then Tallinn Polytechnic Institute in 1973. He began Tomasberg, 46, is a French language and his diplomatic career in 1993 as ambassador to literature graduate of the . He Finland. From 1997-1998, Jaak Jõerüüt was director launched his diplomatic career in 1991 when he was general of the Foreign Ministry’s protocol employed by the Foreign Ministry press and department. Thereafter he served as ambassador to information department. , with co-accreditation to Malta and Cyprus. In 1993-1997 Tomasberg was ambassador From 2002-2004 he was inspector general of the to , in 1993-1995 also to Spain and since Ministry of Foreign Affairs; from 2004 Ambassador 1996 also to Portugal. In 1997-2000 Tomasberg to the United Nations. served as director of the foreign ministers office and Jaak Jõerüüt was Minister of Defence from was also ambassador to Turkey since 1998. 2004-2005. From that point until his appointment as In 2000-2004 Tomasberg was ambassador ambassador to Latvia, Jõerüüt served as adviser at to Spain and Turkey and since 2001 to Morocco. the Ministry of Foreign Affairs. Until his appointment as ambassador to Italy Jaak Jõerüüt is married. Jõerüüt speaks Tomasberg worked as director of the foreign Finnish, English, Russian and Italian. He is a minister's office. member of the Estonian Writers Union and the PEN club, the author of 14 works of verse and prose and Lithuanian Ambassador Presents the contributor of numerous articles and essays. Credentials in Estonia

Oct 12 - Lithuania's new ambassador to Estonian Ambassador to Finland Presents Estonia, Juozas Bernatonis, presented his Credentials credentials to President Toomas Hendrik Ilves. Oct 12 - Estonia's new ambassador to Finland, Ilves said he is very pleased to receive Merle Pajula presented her credentials to credentials first from the Lithuanian ambassador as President Tarja Halonen. Lithuania is an especially important partner and The conversation that followed the ceremony friend of Estonia. focused on the two countries' close ties. Estonia and "We have many opportunities for Finland agree on many issues, Halonen observed, cooperation but now that we can form a united force

7 in both the European Union and NATO their number In 2003 Kannike assumed the post of deputy grows further," he said. secretary of state of the Defence Ministry. The President said he would like to see the Since last year Kannike has been working as two countries work more closely together in the counsellor to the Foreign Ministry. spheres of energy and transport. He asked the ambassador to give his regards Estonian Authorities Permit Probo Koala to the Lithuanian head of state, Valdas Adamkus, to Leave whom he said he has known for a long time and hopes to meet again soon. Oct 15 - The last tons of environmentally Presidents of the Baltic States are scheduled hazardous waste was handed over from the to meet in Vilnius at the beginning of November. tanker Probo Koala to the Estonian Vaivara Bernatonis congratulated Ilves on his hazardous waste handling centre and the election and said he is pleased to be the first foreign prosecutor granted permission to the tanker to envoy to meet with the newly sworn-in head of leave Estonia. state. The waste handling company, EcoPro, "Lithuania values highly the three-way carried a total of 570 tons of slops from the Probo cooperation of the Baltic states and is of the opinion Koala to the Vaivara centre, the environmental that we should use the opportunities for joint action inspectorate said. on the international scene and share our experience Handling of the waste will continue at of solving issues related to membership in the EU, Vaivara for up to one month, EcoPro estimated. The NATO, and other international organizations," he tanker will pay for the waste handling. said. "I am convinced that the three-way The transfer of the tanker from Paldiski to cooperation of the Baltic States can benefit all Sillamäe, repumping of the slops and its transport participants." took place under environmental inspectors' surveillance. The inspectors said the process Slovenian Ambassador Presents proceeded in accordance with the regulations. The criminal proceeding taken with respect Credentials in Estonia to the Probo Koala in Estonia will continue, and Oct 12 - Slovenia's Ambassador Vojislav Suc materials connected with the ship are being presented his credentials to Estonian President analyzed. Toomas Hendrik Ilves. Although the Probo Koala was permitted to Ilves said in the meeting that Estonia and leave Estonia it is possible for the prosecutor's office Slovenia need to work hard together in the future to to take into contact with the ship. make themselves heard as small countries can All the necessary information for criminal easily be overlooked. action either in Estonia or in other countries has "Estonia hopes to learn much from Slovenia been collected from the ship, so its further detention as Slovenia will be the first of the countries that is no longer necessary. joined the European Union in 2004 to hold the bloc's The last materials investigators had seized presidency," he said. from the ship were returned to it after copying. The ambassador said the two countries are The information Ivory Coast and the bound to become ever closer allies in the framework have requested from Estonia for of the EU and NATO in matters concerning EU affairs criminal action has by now handed over to these and global problems. countries. "Our cooperation and exchange of ideas will intensify in the near future as Slovenia is getting Four More Belarus Students Arrive in ready to take over the EU presidency in the first half Estonia of 2008," Suc observed. The ambassador resides in the Swedish Oct 16 - Four young people from Belarus capital . arrived in Estonia to continue their studies in this country as of this year. Estonian President Appoints New Envoy The young people are students expelled from universities in their native country, whose further to Council of Europe education will be supported by Estonia. Six Oct 13 - Estonian President Toomas Hendrik Belarusian students have already started studies at Ilves has appointed Sulev Kannike, counsellor the University of Tartu in the framework of the same to the Foreign Ministry, as Estonia's programme. representative to the Council of Europe. The Open Republic youth organization this Ilves signed a decision to appoint Kannike summer presented to the government a proposal to Estonia's ambassador extraordinary and announce an additional round of applications for plenipotentiary, permanent representative to the scholarships for Belarusian students, as Belarusian Council of Europe, seated in Strasbourg. universities expelled very many students in the The president also recalled Alar Streimann autumn. from the same post. The Belarusian authorities knew full well that After heading the Foreign Ministry's legal Western countries would not be able to invite these department in 1995-1997, Kannike worked at the students to study at their universities this school ministry's policy planning department for one year year, said Yevgeni Krishtafovich, an activist with the and as chief of the political department from 1998- society. 1999. After youth unrest in Belarus against the Following his appointment as ambassador to falsification of results of the Belarus presidential Luxembourg and in January 2000, Kannike elections this March, hundreds of students who had also became Estonia's ambassador to NATO and the taken part in the protest action or publicly supported Western European Union.

8 democratic forces were expelled from Belarusian out primary procedural acts and to escort, select universities. and briefly guard prisoners of war. The unit can , the Czech Republic, Austria, carry out security, law enforcement and traffic , Latvia as well as Estonia offered patrols, man control posts and help the local civilian scholarships to these young people to continue their police. studies. The military police unit is equipped with "According to the index of liberty Estonia is jeeps and trucks that ensure its mobility. In addition the No 1 country in the world and compared with to infantry weapons the unit has anti-riot and special other former Soviet republics welfare of the people military police gear. has been growing the fastest here," former Minsk After the end of the mission the unit will student Ignat, 22, said in favour his choice. remain in Estonia, carrying out domestic duties During the first year Belarus students at connected with the discipline and security of the Tartu University will study Estonian and next year defence forces. will enrol to study their favoured specialties at A sum of 11.2 million kroons (EUR 716,000) Estonian universities of their choice. has been earmarked in the Defence Ministry budget for the preparation and personnel costs of the Estonia to Host 2008 European Ministerial military police platoon. Health Conference At present Estonia's contribution to NRF is by an ordnance clearance group and mine hunters. As Oct 18 - The World Health Organization has of July 1 a 15-strong ordnance clearance group of picked Estonia as the venue of the European the defence forces and from this August until the ministerial health conference in 2008. end of October the minehunter Sulev of the Estonian The Social Affairs Ministry said the theme of Navy are part of the NATO mine hunting group. the conference would be health systems and it would embrace a total of 53 countries. Baltics Preparing to Set up Joint Battalion "We are thankful to the Estonian government for Estonia agreeing to organize the for NATO Response Force high-level ministerial conference in Estonia and to Oct 13 - The commanders of the defence forces support development of health systems in WHO of Estonia, Latvia and Lithuania agreed during member countries," WHO European Regional their meeting in Lithuania that the three Director Marc Canzon wrote to Prime Minister Andrus countries will develop a common infantry Ansip. battalion to be part of the NATO Response Social Affairs Minister Jaak Aab said the Force (NRF) in case such a proposal is made to large-scale health conference would give Estonia the them. opportunity of informing other countries of our The Baltic Defence Committee bringing achievements in the health sphere and to make the together Estonian armed forces commander Vice country better known internationally. Adm. Tarmo Kõuts, his Latvian counterpart Brig. "The ministerial conference has always been Gen. Juris Maklakovs and Lithuania's Maj. Gen. devoted to a very important and in the long term Valdas Tutkus found at its Oct. 11-13 meeting in very necessary theme of the health sphere," Aab Vilnius that the joint Baltic unit could be part of the said. "As Estonia is regarded as one of the most NRF-14 that is planned to be in readiness for successful countries in terms of the reconstruction of deployment by 2010. its health system among the transition countries of No formal proposal to contribute forces to an the European region, we will have the opportunity of infantry battalion has been made to Estonia, Latvia sharing our experience. Estonia's experience in the and Lithuania yet. medical insurance, primary level and hospital reform "We decided that the battalion should be is highly value and more and more countries are manned by all the three Baltic States on an equal developing interest in them." basis, if the decision to form the unit is made," Kõuts said. He explained that if the joint unit is to be DEFENCE NEWS the size of a battalion each of the countries will have to contribute over 200 personnel. Estonian Parlt Endorses Up to 40 Soldiers If necessary the battalion would be in five to for NATO Response Force 15 days' readiness for deployment in places situated Oct 18 - The Estonian parliament approved to up to 15,000 kilometres from Brussels. the assignment of a military police unit of up to The defence forces commanders decided to 40 men to the NATO Response Force (NRF). set up a joint work group that will mark out the According to the decision the Estonian unit battalion's structure and scheme of logistical can be used in the NATO Response Force in case of support. need in the period from January 1 to December 31 The three army chiefs talked about the next year. The unit assigned to NRF is a military activity and plans of development of the joint Baltic police platoon subordinated to the defence forces airspace surveillance system BALTNET, the joint general staff. mine countermeasures squadron BALTRON and the The platoon will be brought into the BALTDEFCOL. composition of a multinational special military police Also discussed were the project for unit and can be used as an anti-riot group in the developing a ground forces doctrine and the NATO protection of public order in crisis management and air policing mission. post-conflict operations. The main duties of the The Baltic Defence Committee meets twice platoon will also include protection of VIPs and every year. searching buildings and vehicles. The defence commanders of the three Besides, the platoon is capable of carrying countries previously met in Latvia in April.

9 Coalition Forces' General Visits Estonian the size of countries and the volume of Unit in Iraq cooperation were important, but quality. During his visit Ligi will also visit the Oct 14 - Maj. Gen. Alessandro Montuori, deputy National Guard Division of and the Shanghai commander of the multinational corps in Iraq, naval base. visited the Estonian light infantry platoon The Estonian Defence Ministry said the aim ESTPLA-13 serving in Iraq. of the visit was to renew contacts between the two Montuori highlighted the sustainability of the countries in the political, economic as well as in the Estonian unit, saying that the level of training of the defence cooperation spheres. successive Estonian platoons remained high and Ligi's visit is the first high-level visit of an their equipment was of a high level and state-of- Estonian defence minister to China after that of then the-art. minister Andrus Öövel in summer 1998. "It's important that Estonian soldiers are both good fighters as well as respected Chinese Armed Forces Willing to representatives of the coalition in the eyes of local residents," he said. Strengthen Military Ties with Estonia During the meeting at the Taji military base Oct 17 - Meeting with Estonian Defence matters related to the service of Estonian units were Minister Jürgen Ligi, Chinese Defence Minister discussed. Cao Gangchuan said that the Chinese armed The unit's commander, Lt. Meelis Jõemaa, forces were interested in strengthening gave the general an overview of the tasks and bilateral military ties with Estonia. problems in the unit's area of responsibility. "The military relations between the two Also taking part in the meeting were the countries have been strengthening continuously," leaders of the Estonian platoon and staff officers Cao said. from the headquarters of the multinational corps. Cao said that the Chinese armed forces were Montuori previously visited the Estonian unit willing to make joint efforts with Estonia to further in July. bilateral military ties. He said that the People's In early August the Estonian unit was visited Liberation Army of China attached great importance by Brig. Gen. Pier Paolo Llanelli, deputy chief of the to friendly relations with Estonian armed forces, Cao multinational forces in charge of coalition noted. operations. Ligi said that his visit was very important for Over the last three weeks ESTPLA-13 has the relations between Estonia and China, adding detained 11 terrorism suspects, found three that communication between the two countries had weapons caches and seized guns and ammunition. been active in the recent years. Cao briefed the Estonian defence minister of Estonia, China Confirm Wish to Continue China's domestic construction, stances on Defence Cooperation international and regional issues and principles regarding the Tibet and Taiwan issues. Oct 17 - Estonia and China are willing to Ligi reiterated Estonia's stance on the one strengthen defence cooperation; Chinese China policy saying the Estonian government representatives mentioned information regarded Taiwan as an integral part of China. technology as a sphere of interest. Cao informed Ligi of the Chinese position on Estonian Defence Minister Jürgen Ligi met in the recent nuclear test by the Democratic People's the course of his current visit to China with his Republic of Korea, saying that China was resolutely Chinese colleague Cao Gangchuan and Jiang opposed to the nuclear test and was urging the Zhenhua, Deputy Chairman of the National People's DPRK to return to the six-party talks. Congress of China. The importance of the visit for During his official visit to the People's the two countries' relations was underlined at both Republic of China the Estonian Defence minister will the meetings. meet in addition to Cao Gangchuan also with Deputy Jiang Zhenghua said Estonia was the most Chairman of the National People's Congress of China important partner for China in the Baltic area, Jiang Zhenghua. According to the Estonian Defense characterizing Estonia as a very rapidly developing Ministry the aim of the visit is to renew contacts economic area and a successful member of the between the two countries in the political, economic European Union and NATO with whom it wanted to and defence cooperation spheres. have close cooperation. China mentioned cooperation in the Estonian President Convenes Natl information technology sphere as an area of interest as well as exchange of both students and lecturers Defense Council to Discuss Army Chief's in the military defence cooperation sphere in the Resignation future. Oct 13 - President Toomas Hendrik Ilves has The Chinese representatives thanked Estonia invited the National Defense Council to gather for its observance of the one China policy. Ligi at the on Oct. 26 to form an underlined the Estonian view that all arguments with opinion as regards the resignation of the the neighbouring countries would have to be settled commander of the defence forces, Tarmo peacefully. Kõuts. The Estonian defence minister also Vice Adm. Tarmo Kõuts tendered his underlined that Estonia was categorically against resignation to Ilves' predecessor Arnold Rüütel in North Korea's nuclear arms ambitions, a view the August. Under law, the commander of the defence Chinese side agreed with. forces must be relieved of his duties within four It was found at both the meetings that not months since filing the resignation.

10 OSCE Representatives Satisfied with security institutions, the state auditor and Inspection of Estonian Training Centre the chancellor of justice to join political parties from 2008. Oct 18 - The 36 representatives of arms control The ban will stay in force also for the agencies of member countries of the military in active service as their participation in the Organization for Security and Cooperation in activities of political parties is prohibited by Article Europe (OSCE) were satisfied with what they 125 of the Constitution. saw at the Estonian Tapa training centre. The amendment was backed by 72 deputies Spokesman of the OSCE visit Maj. Daniel and one lawmaker abstained. Thomas Davison of the Canadian land forces said the visit had been well organized and all Aliens' Participation in Elections in requirements of the Vienna documents were observed, the defence forces general staff said. Estonia Eased "The visit was informative, and as a positive Oct 11 - Estonian lawmakers passed an aspect I could add that in addition to a general amendment that eases resident aliens' presentation of the weapons the OSCE member participation in local polls. countries representatives could also try weapon The legislation eliminates the simulators and observe an ordnance clearance team unconstitutional requirement that a person who demonstrating their skills," Maj. Davison said. resides legally in Estonia without being a citizen of In the framework of the 1999 Vienna this Baltic state or the European Union must have document weapons, equipment, infrastructure, lived for a minimum of five years in the territory of a training equipment and methods were shown to the local government to be able to vote in local representatives of OSCE member countries at the elections. Tapa training centre on October 10. An overview The amendment was backed by 57 deputies was also given of the general structure of the from the Reform, People's Union, Centre and Social defence forces. Democratic parties while 28 Pro Patria Union and "As a member country of OSCE Estonia has Res Publica lawmakers voted against. taken the obligation of organizing a visit to a military Data by the Interior Ministry put the number unit or site for representatives of all OSCE member of persons living in Estonia on the basis of a countries once every five years," said Maj. Villu permanent residence permit and affected by the Tamul, commander of the arms control group at the change at 197,703. defence forces general staff. Thirty-six representatives from 23 OSCE Estonian Rescue Board Head to Become countries registered for the visit from October 9 to PM's Adviser, Join Reform Party 11. In addition to OSCE member countries also the NATO arms control coordination section was Oct 16 - Director-general of the Estonian represented. Rescue Board Mati Raidma will start working Located at the combat units training as an interior security adviser to Prime centre at Tapa are a pioneer battalion, an anti- Minister Andrus Ansip; he will also join the Reform Party. aircraft division, an artillery group, and the Raidma said the offer made to him was a defence forces central training ground and serious challenge and it would give him the logistics centre. opportunity of applying the experience and knowledge he had acquired in disaster relief Estonia to Send Troops to Bolster Security management on the international level and in at NATO Summit in Riga Estonia with considerably higher efficiency than his present position permitted. Oct 12 – Estonia will send to Latvia up to 40 The prime minister said in comment on his soldiers and Pasi armoured personnel carriers proposal to Raidma that interior security was a to help shore up security at the NATO summit. priority for the government and he took a very It was decided at the government meeting serious attitude to it. that Estonia will contribute Pasi armoured vehicles Raidma started working in the fire-fighting and up to 40 troops to boost security during the system in 1986, employed as a fire safety NATO summit in the Latvian capital Riga. surveillance inspector in the Pärnu County. In 1986- The decision has to be approved also by the 1992 he worked in different posts in fire-safety parliament. surveillance as well as in field work and was head of A corresponding request came from Latvian the fire service in the town and county of Pärnu in Prime Minister Aigars Kalvitis who also asked NATO 1991-1992. and Lithuania for help. In 1989 Raidma enrolled in the Moscow higher fire-fighting technical school, graduating from DOMESTIC NEWS its correspondence department as a fire-fighting Ban on Party Membership for Civil engineer in 1993. Servants Not to Be Lifted In 1992 Raidma became deputy director- general of the Rescue Board; he has worked as Oct 11 - Estonian lawmakers passed an director general of the Rescue Board since 2001. amendment that bars civil servants from Raidma is a founder and initiator of the membership in political parties also after year Estonian Disaster Relief Team and belongs to the UN 2008. Disaster Assession and Coordination team. As of the The amendment abolished provisions of the beginning of this year he is member of the United Political Parties Act which would have allowed Nations Central Emergency Relief Fund. judges, prosecutors, police officers, officials of

11 Estonia's Former Envirmin to Join Parlt's Democrats were unable to take advantage of the State Defense Committee presidential campaign. "It seems as if (President Toomas Hendrik) Oct 16 - The former Estonian Environment Ilves was a candidate of the Reform Party and the Minister Villu Reiljan, member of the People's uniting party (Pro Patria and Res Publica Union) Union, will join the state defence committee in rather than Social Democrats," Petti said. parliament. The rating of the People's Union, which put The parliament board registered Reiljan as a its backing behind former president Arnold Rüütel, member of the People's Union faction and appointed has dropped to 4 percent, the survey shows. him member in the state defence committee. "The present state of things is a very eloquent illustration of the outcome of the SURVEYS presidential election and the tasks the parties are New President Supported by 71 Pct of faced with in the next five months," Petti Estonians - Survey commented. The Faktum & Ariko survey was based on Oct 11 - Most Estonians are happy with the interviews with 500 respondents. election of Toomas Hendrik Ilves for president; the new head of state enjoys strongest support among women with a higher education, a ECONOMIC NEWS recent survey by TNS Emor shows. According to the poll carried out after the Currency rates in kroons presidential election but before Ilves took office, 43 () percent of respondents support Ilves whole- heartedly and 28 percent are rather inclined to Registered Unemployment Down By 45 support him. Nine percent are more inclined to not Pct in Year back Ilves and another 9 percent are against him, while 11 percent of the 500 polled had no opinion. Oct 11 - As of the beginning of October there The survey showed support for the president were 12,669 unemployed registered in the at 62 percent in the capital Tallinn, 69 percent in Estonian Labor Market Board, 3.3 percent major cities, 73 percent in smaller towns and 80 fewer than a month before and 44.8 percent percent in villages. fewer than on last October 1. Ilves enjoys strongest support among The number of registered unemployed Estonian women living in rural communities in the accounted for 1.5 percent of the working age western part of the country, aged below 34 or over population in the country (those aged from 16 to 51 years, with a higher education and with a net pension age), the Labour Market Board reported. monthly salary of more than 3,000 kroons (EUR The level of unemployment is still the 192), the survey revealed. highest in the Ida Viru county, where 3.6 percent of Support for Ilves remained below 60 percent the working age population were registered as in only two groups of the polled out of 21: unemployed, as well as in , where the respondents with monthly incomes below 3,000 figure was 3.3 percent. The jobless level was the kroons and residents of the Virumaa region showed lowest in Rapla and Pärnu counties, where 59 percent support. respectively 0.8 and 0.9 percent of the people were Of non-Estonian respondents, 26 percent unemployed. opposed and 49 percent backed Ilves, and as many as 25 percent had no opinion. State Budget EUR 364 Mln Surplus After Nine Months Estonia: Reform Party Takes Top Spot in Oct 11 - The Finance Ministry said 49.4 billion Popularity Ratings kroons (EUR 3.16 b) of revenue, 80.4 percent Oct 11 - The Reform Party has taken the top of this year's target, was paid into the state spot in Estonian political parties' popularity budget in January-September; as of the end of scoreboard with 21 percent support whereas September the budget had a revenue surplus the Centre Party has been losing support, it of 5.7 billion kroons (EUR 364 mln). appears from a survey the Faktum & Ariko Compared with January-September 2005 pollsters conducted after the presidential inflow of revenue into the state budget increased by election. 22.4 percent. Payments from the state budget Compared to a similar survey carried out at totalled 43.7 billion kroons in the nine months, the end of August, Reform's rating climbed by 3 accounting for 71.1 percent of the budget. percent while support for the Centre Party plunged Tax revenue payments into the state budget from 23 to 16 percent. added up to 39.9 billion kroons, 81.4 percent of the "If there is any connection between party annual target, by the end of September. Compared preferences and the content and outcome of the with last year, inflow of tax revenue increased by presidential campaign, the Centre Party has about 6.2 billion kroons or certainly had a painful lesson," sociologist Kalev 18.4 percent. Petti who carried out the survey said. Growth in the payment of social tax into the Support for Pro Patria and Res Publica Union budget was by 19.4 against last year. has been rising slowly but stably since the beginning of May and reached 13 percent in October. Govt Sector Debt Down 3 Pct on Year The rating of Social Democrats has Oct 13 - According to the Statistical Office the meanwhile dropped by one percentage point to 7 Estonian government sector debt amounted to percent, which according to Petti shows that Social 7,316 billion kroons (EUR 467.5 mln) as of the

12 end of June, nearly 3 percent lower that in the The new capital adequacy calculation middle of last year. procedure is based on the capital adequacy The fall was mainly due to reduction in the framework worked out by the Basel Banking central . The central government Supervisory Committee and it will therefore affect debt stood at 3,667 billion kroons as of the end of the economy of the whole world in addition to that June, 5.8 percent lower than the year before. of the European Union. The debt burden of local governments had If until the present credit institutions have fallen by half percent to 3,711 billion kroons in the calculated their capital adequacy in accordance with same period. relatively rigid and narrow guidelines, applied since Finance Minister Aivar Sõerd has said that 1988, then the new calculation methods are the state intends to cut the foreign debt by 1.56 considerably more flexible and risk-sensitive, linking billion kroons next year. the capital requirements with the concrete bank's risk management system. Value of Estonia's Stabilization Reserve The bill also introduces the implementation EUR 376 Mln of a new responsible lending principle, which lays on the bank the obligation to take the lender's needs Oct 17 - The value of Estonia's stabilization and servicing capacity more into consideration. reserve stood at 5.86 billion kroons in According to a simplified definition capital acquisition value and at 5.89 billion kroons adequacy is the required level of capital banks must (EUR 376 mln) in market value as of the end of keep as cover for their operations and risks. September. The reserve's market value had grown by Ministry, BRS Agree on Buyback of Rail Co 100.3 million kroons or approximately 1.7 percent compared with the preceding quarter. Shares Compared with the start of the year the Oct 18 - The Estonian state and Baltic Rail market value had increased by 360.2 million kroons Services (BRS), owner of a two-thirds majority or 6.5 percent. in Eesti Raudtee (Estonian Railway), have Return on the reserve was 4.33 percent in reached agreement on the renationalization of the third quarter. the shares. The assets of the reserve are invested in The state and BRS have prepared the very low-risk EU government bonds (65 percent of transfer deed and related agreements. the volume) and in corporate bonds with the same The agreement will be then submitted to the risk profile. government for approval. , minister of economy and Govt Gives Nod to Enterprise Policy communications, said negotiations proceeded at a Development Plan rapid pace. "Of course there have been differences, but Oct 19 - The Estonian government at its they have been subjected to analysis and meeting approved the enterprise policy compromises reached," the minister said. development plan for the years 2007-2013. The negotiator on behalf of BRS, Priit Koit, The development plan primarily deals with voiced recognition on behalf of the other party of the promoting knowledge based enterprise and state's negotiating team and other participants in enterprise creating a lot of added-value. the process, saying they performed their duties in a It is estimated implementing the policy will professional manner. cost 3.7 billion kroons (EUR 236 mln), the The state is planning to buy back the 66 overwhelming majority of which would come from percent shareholding in the railway company it sold the EU structural funds. to BRS for one billion kroons in 2001. Estonia's enterprise policy for the period until 2013 embraces four main fields of activity. Estonia to Pay EUR 150 Mln for Majority The first of the fields is development of the skills and know-how of managers and workers to Shares in Rail Co focus more on value-creating activities, the second Oct 18 - Under agreements prepared with Baltic is promoting investments to implement modern and Rail Services (BRS), the owner of majority innovative technologies, the third is support for shares of Eesti Raudtee, Estonia is going to pay globalization to improve Estonian companies' export 2.35 billion kroons (EUR 150 mln) for the 66 capacity, and the fourth seeks to offer wider percent shareholding in the rail company. freedoms and opportunities to entrepreneurs The agreements reversing the 2001 through a better legal environment. privatization of the national railway company were initialled by the parties and will next be presented to Estonia To Simplify Calculation of Banks' the Estonian government for endorsement. Capital Adequacy Estonia's Excess Stocks Penalty May Be Oct 12 - The Estonian government endorsed amendments to the Credit Institutions and Further Cut Financial Supervisory Authority Acts, one of Oct 11 - Mariann Fischer Boel, agricultural the main aims of the amendments being more commissioner of the European Union, said the flexible calculation of the banks' capital penalty appointed to Estonia for excess adequacy. warehouse stocks could be further reduced; The aim of the bill is to codify in Estonia earlier the penalty has been contracted from directives of the European Union establishing a new 374 million (EUR 24 mln) to 105 million capital adequacy framework for credit institutions, kroons. the government press office said.

13 "It was the commissioner’s message that In the opinion of the supreme court, which they would revise the size of our excess stocks made a ruling favouring a company at the end of payment, and it can be further reduced," Agriculture last week, said the method used in Estonia for Minister Ester Tuiksoo said. keeping accounts of companies' excess warehouse Boel, on a visit to Estonia, discussed the stocks had not been suitable and flexible enough. issue of excess warehouse stocks with leaders of the Several companies that received claims Agriculture Ministry. because of their excess warehouse stocks have For the first time the European Commission protested them in court. reduced the penalty for excess warehouse stocks after technical consultations with the Agriculture Estonian Agriculture Would Need EUR 1.5 Ministry and the Statistical Office, as a result of Billion in Coming Years - Survey which the basis of the calculation of the warehouse stocks was revised. Oct 19 - Estonia's agriculture is in need of up to 22 billion kroons (EUR 1.4 b) in investments Estonia's Sugar Penalty Not To Be Cut - during the years 2007-2013, a survey conducted by the Estonian Agricultural EU Commissioner University finds. Oct 11 - Mariann Fischer Boel, agriculture The council of Estonia's Rural Development commissioner of the European Union, said the Foundation, MES, endorsed the foundation's Estonian accession treaty with the European development plan for the period 2007-2013, which Union did not make it possible to differentiate also sets out the fields where the funds available to whether its excess sugar stocks had been the foundation during that period will be used. created for households or for business. According to the plan, the foundation will Estonia has filed suit with the European have some 2.6 billion kroons to finance different Court of Justice, asking that its excess sugar stocks, measures. and in this connection also the sugar penalty be cut The plan sets out, for instance, 130 million by half, subtracting from it stocks acquired by kroons annually to improve the availability of capital domestic households. for entrepreneurs, to be used to help secure . "The text of the treaty is very clear in that For the issuance of loans 150 million kroons has respect -- it is not possible to differentiate between been earmarked annually. sugar acquired for the use of domestic households In order to improve the sustainability of non- from that acquired for commercial purposes," Boel profit organizations active in rural areas as much as said on her visit to Estonia. 72 million kroons would be spent every year. By its suit, the government is applying to Four million kroons per year during the contract the excess sugar stocks by nearly a half, period covered by the plan would be spent to train subtracting from it 42,371 tons procured by work force and search for new opportunities and domestic households. activities to improve the living environment in rural In case of the present 91,844 ton excess areas. stock Estonia is liable to a sugar penalty of more than 700 million kroons (EUR). Hiking Prices May Obstruct Several EU Boel said that the issue had been raised with Supported Projects such acuteness in Estonia because the share in the excess sugar stocks makes up 48 percent of that Oct 12 - Prices that have recently been appointed to all the new member countries. rocketing fast in the Estonian construction Despite the litigation which is still in sector could cause problems in carrying out progress Estonia must this year pay a quarter of the environmental and transport projects with the sugar penalty, 178 million kroons (EUR 11.37 mln). support of EU subsidies. Estonia will pay the first part of the penalty "In case of many projects increased total by a scheme where the European Commission cost because of higher construction prices could deducts the 178 million kroons from this year's become the main problem. structural fund and direct agricultural subsidies. But as the Cohesion Fund resources have all The European Commission appointed to been planned in the current financing period, Estonia Estonia penalties also for excess stocks of other will have to solve the extra cost within the country," groceries, but their size could fall from 374 million said Finance Ministry deputy secretary general kroons to 105 million kroons after the figures were Renaldo Mändmets. updated by the European Commission. Of projects supported by the Cohesion Fund 24 projects are now being implemented. Of these 13 Estonian Government Sets Up Warehouse construction projects are carried out in the environmental sector and six in the transport sector. Stocks Commission The biggest environmental projects are the Oct 12 - The Estonian government at its Cabinet waste water handling system of the Kohtla-Järve session decided to set up a commission to area, water management of the Pärnu River basin, work out a solution on increasing flexibility of reconstruction and extension of water and sewerage the methods of keeping account of excess structures in the Matsalu basin, water and sewerage warehouse stocks. system of the western islands basin and the Emajõgi Prime Minister Andrus Ansip said it was and Võhandu River draining area water management necessary to find out whether any concrete payer of project. the sugar penalty was a developing company or a The biggest transport sphere projects firm operating with speculative aims. include reconstruction of the Maardu-Valgejõe The prime minister underlined that section of the Tallinn-Narva motor route, restorative speculator would have to pay the penalty anyway. repair of the Jõhvi-Tartu-Valga motor route,

14 reconstruction of the airside area of the Tallinn Pakterminal is an Estonian-Dutch joint Airport and development of the venture dealing with loading of crude and liquid oil passenger terminal. products and providing warehousing services. Including means allocated for former ISPA Owners of Pakterminal are the Estonian projects, Estonia can get up to 428 million investment company Trans-Kullo (50 percent) and support from the Cohesion Fund. the Dutch group Royal Vopak (50 percent). As of the end of H1 2006 cover had been found to nearly 94 percent of the money intended Estonia's Thulema Launches Furniture for the projects, or 402.2 million euros, of this 215.5 Export to Finland million euros in the environmental sector and 186.1 million euros in the transport sector. Oct 11 - The Estonian Thulema office furniture maker has started export of serial products to Estonia to Have 1,000 Wifi Areas by End Finland and is planning to enter also the Swedish market. of Year Thulema exports to Finland furniture created Oct 19 - There will be more than 1,000 areas by Estonian designers and also furniture designed by covered by wireless by the the other owner of the company, Puustelli. end of this year, with 869 areas working at this point, figures published on the wifi.ee website Latvian Subsidiary of Estonia's Merko to show. Build 9,000 Square Meter Hotel The editor of the WiFi/WiMax.ee portal, Veljo Haamer, was confident that the forecast is correct. Oct 12 - Merks, the Latvian subsidiary of Yet he named equipment shortcomings as an Estonia's Merko Ehitus (Merko Construction) obstacle. has signed a contract for the construction of a "Certification and marking of WiFi areas new hotel of more than 9,000 square meters in takes time because discount-priced routers are not Riga. suited for public use. There's no point in hanging up Commissioner of the hotel is Hotels WiFi signs where WiFi doesn't work," Haamer said. Development Group, the size of the contract being He said that together with price the quality 5.37 million lats or 7.64 million euros plus VAT. of WiFi equipment had declined and that often The project must be completed by April networks with unstable quality of operation had to 2008. be subjected to a remake before they could be registered. Estonian Businessmen Invest in At the beginning of 2006 there were 680 Romanian Real Estate Market WiFi covered areas in Estonia, and 132 more were Oct 11 - Brightsand, a joint venture owned by added during the first half of the year. In the course the Estonian businessmen Olari Taal, Jaan of the year 2005, 250 new WiFi covered areas were Pillesaar and Peep Aaviksoo, is building established, which means that growth continues apartment houses in the Romanian capital. approximately at last year's rate. The company has acquired a property in There are 326 WiFi covered areas in Tallinn, central Bucharest and has invested a few million 88 in Tartu County, 57 in Pärnu County, 46 in Valga euros for this purpose. County and 45 in right now. Procurement will soon be announced to find The first public access WiFi covered area was the builder for the first property acquired in the opened in Estonia in May 2001. spring. The desire for new apartments is frantic in

Romania, being several times higher than demand. Sillamäe Port Signs Contract with Also the Estonian Arco Vara real estate Estonian Railway company has joined its expansion plans on the Oct 13 - Sillamäe Sadam (Sillamäe Port) and Romanian real estate market with the market Eesti Raudtee (Estonian Railway) signed a five- experience of IPC, the result being a joint venture, year cooperation contract, on the basis of Arco Rumeenia Valduste OU (Arco Romanian which the rail company ensures carriage of five Holdings Ltd), which is going to open a real estate million tons a year to the port. office in Bucharest next year. The contract creates a stable business base to clients of both the companies, making it possible Estonian Shipper Tallink Doubles for them to forecast freight volumes and to plan Passenger Numbers development of business in the future, Sillamäe Port Oct 16 - In the final quarter of the financial said. year ending in August, the Estonian shipping

concern Tallink Grupp carried t 2,026,803 Supervisory Board of Estonia's passengers or 97 percent more than during the Pakterminal Elects Endel Siff as New same period of the previous business year. Chairman Tallink served 4,203,163 passengers during the whole 2005/2006 financial year, a year-on-year Oct 13 - Supervisory board of the Estonian increase of 28 percent. Pakterminal transit company unanimously During the whole financial year Tallink elected Endel Siff as chairman and Frank served 188,330 cargo units which represent a year- Erkelens as deputy chairman. on-year growth of more than 43 percent. In the final Until the present Dutchman Robert Nijst was quarter freight flows increased by 106 percent, chairman of the supervisory board. He replaced in amounting to 71,546 cargo units. A large part of the the post the late Aadu Luukas, who was recalled by growth was due to the new Finland-Sweden and the shareholders at the end of last year. Finland-Germany routes, which accounted for

15 17,554 and 17,765 cargo units, respectively, in the The average cost of a guest-night at an June-August period. accommodation establishment was 466 kroons (EUR The shipping group carried in the 2005/2006 30), marking a year-on-year increase of 10 kroons. financial year 406,988 passenger cars, up by more The cost of a guest night was highest in Tallinn, than 49 percent year-on-year. In the final quarter where it amounted to 607 kroons. The average cost the growth was 111 percent, most of which was due of a guest night in the accommodation to new routes. establishments of Pärnu was 448 kroons and of Tartu 405 kroons. Estonian Ports' Freight Flows Up 2.8 Pct on Year in September Estonia Launches Campaign to Promote Oct 17 - Estonian ports handled 3.36 million Itself as Travel Destination in Nordic tons of freight in September, which is 2.8 Countries percent more than in the same month last Oct 19 - Ads began to be aired on Finnish, year, figures by the Statistical Office show. Swedish and Norwegian television channels In all, 2.98 million tons of cargoes were and the Internet this week to invite people loaded onto ships during the month, compared with from these countries to come to Estonia for a 3.19 million tons in September a year ago. The spa holiday or a city break. amount loaded in August was 3.89 million tons. The 15-million-kroon (EUR 0.96 million) Cargoes unloaded totalled 649,500 tons campaign is organized by the against 337,600 tons a year earlier. In comparison foundation in conjunction with the shipping group with August, the volume of unloading grew 17 Tallink and Estonian Air. percent. "The goal is to attract the interest of 25 to In the first nine months of the year Estonian 50-year-old North Europeans interested in culture ports loaded 32.4 million and unloaded 4.6 million and spas and thus to increase the number of visits tons of cargoes. outside the peak tourist season," Ülari Alamets, board member of Enterprise Estonia, said. Estonian Ports' Freight Flows Up 2.8 Pct This is the first ever large-scale joint on Year in September campaign of this kind by the state and private sector, Alamets added. Oct 17 - Estonian ports handled 3.36 million The part of the programme presenting tons of freight in September, which is 2.8 Estonia was executed within the framework of a percent more than in the same month last programme to increase awareness about Estonia as year, figures by the Statistical Office show. a travel destination. The programme is co-financed In all, 2.98 million tons of cargoes were by the European Regional Development Fund. loaded onto ships during the month, compared with As a result of collaboration with Estonian Air 3.19 million tons in September a year ago. The and Tallink up to 56 percent discounts were received amount loaded in August was 3.89 million tons. in the purchase of airtime. Cargoes unloaded totalled 649,500 tons The total cost of the campaign is 14.7 million against 337,600 tons a year earlier. In comparison kroons, of which 9.1 million are funds provided by with August, the volume of unloading grew 17 Enterprise Estonia. percent. The ad clips are shown on two TV channels In the first nine months of the year Estonian in Finland and Sweden and on four channels in ports loaded 32.4 million and unloaded 4.6 million . tons of cargoes. The campaign aims to attract 50,000 unique visits to its web site from the target markets. The 900,000 Stay in Estonia's number of tourists from these markets is expected Accommodations During Summer Months to increase by up to 20,000. Oct 17 - About 900,000 tourists stayed in hotels and other lodging in Estonia during the three Air France KLM to Add Flights on Tallinn- summer months, 70,000 more than during the Route respective period in 2005, the Statistical Office Oct 11 - The French-Dutch carrier Air France said. KLM will increase its passenger carriage About a third of the tourists were residents volume by one quarter and add a second daily of Estonia and the rest visitors from other countries. flight on the Tallinn-Amsterdam route. About a half of the foreign visitors came from As Air France KLM is very much satisfied Finland, with Germany and Sweden next on the list. with the good operations results and dynamic The share of visitors from Finland decreased by development of the Baltic countries market, the three percent compared with the summer months of company decided to increase the volume of the 2005. Tallinn-Amsterdam and Riga-Amsterdam routes by The number of residents of Estonia staying 25 percent as of October 29. in accommodation establishments meanwhile was up For this purpose the company will replace by one-third year-on-year. It was hardest to find the earlier Fokker 70 by Fokker 100, making it accommodation in Tallinn and Pärnu, where the possible to carry 103 passengers instead of 80. room occupancy rate during the period reached 75 Besides, Air France KLM will add a second daily flight percent, and in Tartu, where the occupancy rate was from Tallinn to Amsterdam as of next May 6. 53 percent. The investment into the increase of During the three months, Tallinn hosted 64 passenger carriage is based on strong belief in the percent of foreign visitors and 17 percent of the potential of the Baltic market, particularly a steep users of accommodation coming from within Estonia. rise in the number of passengers as well as in

16 Estonia's favourable economic conditions, the CULTURAL NEWS company said. Estonia's Arvo Pärt Dedicates "For Air France KLM the Baltic countries are among the main areas of attention in Northern Performances of His Works to Europe," said Mauricio Cardona, head of the Finnish Politkovskaya This Concert Season and Baltic area in the company. Oct 16 - The Estonian composer Arvo Pärt has dedicated the recitals of his works to the Estonian Banks Raising Interest Rates on memory of the recently murdered Russian Time Deposits journalist Anna Politkovskaya this concert season. Oct 13 - As of today, Estonia's Sampo Bank will Pärt said that this would apply to all raise its interest rates on time deposits, SEB performances of his works during this concert Eesti Ühispank will raise its interest rates and season, regardless of where they were taking place. Hansapank already raised its interest rates. He appealed to all musicians to communicate this Sampo Bank will raise its interest rates by wish of his to their audiences. 0.05 percentage points both on kroon and "Anna Politkovskaya gave all her talent and deposits. As of today the on 12-month energy, and eventually her life, in the name of time deposits in Sampo Bank is 3.35 percent for people knowing and understanding what terrible personal banking clients and 3.30 percent for crimes are being committed in Russia," Part said in ordinary clients, the bank said. justification of his decision. SEB Eesti Ühispank will raise its interest The composer said Politkovskaya's death rates on deposits as of October 16. In case of 12- reminded him of the death of Martin Luther King, month deposits the interest rate will which one day became the last drop in a cup that rise by an average of 0.25 percentage points to 3.35 was full to the brim and started to brim over. percent. The interest rate on one-year euro deposits "Now, too, we have to hope that the almost will be 3.35 percent instead of earlier 3.22 percent. legalized murder of a journalist in Moscow makes all Hansapank raised the interest rate on its the people think more about what is actually taking one-year Estonian kroon deposits by 0.15 place in Russia and free the world of some percentage points to 3.25 percent, while the interest dangerous illusions," Pärt added. rate on one-year euro deposits rose from 3.10 percent to 3.25 percent. Sampo Bank, SEB Eesti Ühispank and 1956 Exhibition to Be Opened in Hansapank last raised their interest rates on Tallinn Estonian kroon and euro deposits in August. Oct 19 - An exhibition on the Hungarian uprising, Hungary 1956, will be opened in the Estonian Banks' Assets Grow in lobby of the Academic Library of . September The display is devoted to the 50th anniversary of the Hungarian uprising against Oct 16 - Assets of Estonian commercial banks Communist dictatorship. increased in September by 8.9 billion kroons, The organizers say the exhibition, featuring totalling 215.59 billion kroons (EUR 13.78 b) at books and photographs, is a sign that the bravery the end of the month, the said. and thirst for liberty of Hungarians, nation kindred Year-on-year, the banks' assets were up by to the Estonians, has left an indelible trace on the 54 billion kroons. Estonians as well. Of banks' consolidated assets at the end of The exhibition will remain open until September, claims to clients made up 159.8 billion November 15. kroons, claims to crediting institutions 19.5 billion kroons and claims to the central bank 14.4 billion kroons. Banks' liabilities to crediting institutions were 55.56 billion kroons and to customers 111.03 billion ESTONIAN REVIEW kroons. (ISSN 1023-1951) Is issued by the Companies' deposits increased last month to Press and Information Department, Ministry of Foreign Affairs 51.99 billion kroons compared with 49.52 billion ISLANDI VÄLJAK 1, TALLINN, ESTONIA 15049 kroons at the end of August. Individuals' deposits at TEL +372 637 7600 the same time rose to 42.82 billion kroons from FAX +372 637 7617 42.51 billion kroons. Estonian Review is also available over the Commercial banks' aggregate net profit in Internet at http://www.vm.ee the first nine months of 2006 totalled 2.59 billion To subscribe, please contact: [email protected] kroons.

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