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    <CENTER><FONT FACE="Palatino"><FONT COLOR="#000000"><FONT SIZE="+3">The
    Case for Lithuanian Membership in NATO</FONT></FONT></FONT></CENTER>
    <CENTER><FONT FACE="Palatino"><FONT COLOR="#000000"><FONT SIZE="+2">Foreign
    Minister of Lithuania Algirdas Saudargas</FONT></FONT></FONT></CENTER>
    <CENTER>
    
    <H4><B><FONT FACE="Palatino"><FONT COLOR="#000000">LITHUANIA'S CURRENT
    STATUS</FONT></FONT></B></H4> </CENTER>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">Since NATO declared itself
      open to enlargement, giving Central and Eastern European countries hope of
      rejoining the family they truly belong to, Lithuania has gone through
      great transformations and witnessed some remarkable achievements. Our wish
      to join NATO and our willingness to become a well-prepared partner has
      driven the process of reform.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">The present picture of the
      Baltic region differs dramatically from that of the Cold War period.
      Despite positive improvements in regional security, new risks and
      challenges have emerged, including illegal migration, international
      terrorism, and difficulties resulting from the transitional period Baltic
      countries are going through as they continue to advance their statehood.
      As security challenges emerge, the universal principles of the OSCE, the
      obligations of Council of Europe membership, regional cooperation among
      the Baltic Sea countries, and the work of the European Commission become
      increasingly important. Of equal importance to Eastern and Central
      European states, including Lithuania, as well as to NATO member-countries,
      is the North Atlantic Alliance.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">NATO's decision to enlarge
      demonstrates the understanding of member-countries that their security is
      inseparably linked to the security of Eastern and Central Europe. As such,
      it is not relevant to discuss Baltic region security and Northern European
      security separately from pan-European security. The issue of security in
      the Baltic region, in my view, has been wrongly framed.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">Lithuania is on an equal
      footing with other Central European countries and we seek recognition of
      this fact by our friends in the West. There is only one kind of security
      that matters--shared European security--just as there is only one
      direction for the Alliance--to consolidate the democratic reforms,
      stability, security, and prosperity of all Eastern and Central European
      countries, including those in the Baltic region.</FONT></FONT> </P>
    <CENTER>
    
    <H4><B><FONT FACE="Palatino"><FONT COLOR="#000000">LITHUANIA AS A
    RELIABLE MEMBER OF THE ALLIANCE</FONT></FONT></B></H4></CENTER>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">When we reach the year
      1999, it will be almost a decade after the restoration of the three Baltic
      States' independence and the beginning of the transformation process that
      dramatically changed the landscape of Central European security. I state
      now that the Baltic States aspire to join NATO and that ten years is
      enough time to get this started.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">For Lithuania, joining
      NATO means taking part in the reunification of Europe, replacing
      instability with stability, ensuring the continuity of reforms, and
      becoming inseparably allied to countries that share the common values of
      democracy, individual liberty, and the rule of law. But we do not seek to
      join NATO with empty arms. We are fully aware of the risks and obligations
      that come with membership in NATO. We have evaluated carefully the role
      that Lithuania could play. Our official application for Lithuanian
      membership in NATO, made on January 4, 1994, asserted that Lithuania
      adheres to the values and commitments of the Alliance and seeks to
      contribute to the security of the North Atlantic area.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">Lithuania wants to join
      the Alliance as a reliable partner, one able to defend its own territory
      as well as enrich the Alliance's stabilizing potential. The law passed on
      December 19, 1996, concerning the basis of national security, provides
      that Lithuania's national security system be developed as part of a common
      European security and transatlantic defense system. The law also states
      that Lithuanian national security, which is to be guaranteed through a
      total and unconditional defense, seeks to contribute to the stability of
      the region.</FONT></FONT> </P>
    <CENTER>
    
    <H4><B><FONT FACE="Palatino"><FONT COLOR="#000000">PREPARATIONS FOR
    MEMBERSHIP IN NATO AND EU</FONT></FONT></B></H4></CENTER>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">Since the restoration of
      independence in 1990, Lithuania has been steadily moving toward readiness
      to join NATO. We have become one of the most active participants in the
      PFP program. We are also ready to become even more active in an enhanced
      Partnership program. The participation of Lithuanian troops in IFOR and
      SFOR missions in Bosnia and Herzegovina illustrates our continuing efforts
      in ensuring security and stability in Europe.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">Lithuania has also become
      aware of the obligations to the Alliance through Lithuania-NATO 16 + 1
      meetings as well as through participation in Partnership for Peace, the
      Planning and Review Process (PARP), joint exercises, peacekeeping
      operations, and training. Lithuania joined PARP in 1995, and constantly
      fulfills its obligations in the sphere of interoperability. We have
      developed our armed forces in accordance with requirements identified
      jointly with NATO and follow NATO defense-planning standards.</FONT></FONT>
    </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">Each month brings us more
      good news on the economic development front and on preparations for
      membership in another key European institution--the European Union. During
      the first half of 1997, Lithuania's new Conservative-Christian-Democrat
      government has provided us with good results through determination and
      commitment. Lithuania is one of the few Central European countries whose
      main macroeconomic indicators have been steadily growing since 1993.</FONT></FONT>
    </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">In 1996, our GDP growth
      registered 3.6%; it is expected to grow 5% in 1997. Lithuania's inflation
      rate has been one of the lowest among Central European countries at 13.1%,
      and from May 1996 to May 1997 was only 7.3%. Our budget deficit has been
      2.3% of GDP and is predicted to drop to 1.9% during 1997. Public debt was
      15.2% of GDP, and foreign investments increased by 50% in 1996, amounting
      to almost $600 million. The second stage of privatization is underway, a
      period during which major communication, transport, and energy enterprises
      will be privatized. The 1997 Fraser Institute Annual Report on economic
      freedom worldwide noted Lithuania's significant achievements in developing
      a market economy and ranked Lithuania second highest among the countries
      of Central Eastern Europe.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">Development of the
      Lithuanian legal system continues to be a vital component of our
      preaccession strategy and demonstrates that European integration involves
      issues of domestic politics. A National Harmonization Program is currently
      underway in Lithuania, and 40% of the EC directives contained in the White
      Book are covered by Lithuanian law as of May 1997.</FONT></FONT> </P>
    <CENTER>
    
    <H4><B><FONT FACE="Palatino"><FONT COLOR="#000000">THE NEED TO END
    APPLICANT-COUNTRY UNCERTAINTY</FONT></FONT></B></H4></CENTER>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">All of these steps
      indicate that we are ready to start negotiations to accede into the
      European Union, in which membership is of the same importance to us as
      membership in NATO. Because we are aware of NATO's dedication to
      objectivity and to the enhancement of stability in Europe, we also
      anticipate that the Madrid decisions on enlargement will mitigate the
      uncertainty now prevailing in Europe. While making decisions is often
      difficult, and a frequent decision is to delay decisions, we know that
      NATO will decide in Madrid which countries will be invited to start
      accession negotiations.</FONT></FONT> </P>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">We also count on decisions
      being made to provide an institutionally supported venue for the remaining
      applicant countries to ready themselves and, through continuing individual
      16 + 1 dialogues, to prove their readiness for NATO membership. In that
      way the second round of enlargement could start either before or at the
      same time as the first new states are admitted into the Alliance.
      Continued internal and external NATO transformation without a clear route
      for applicant country membership would cause not only a major setback for
      the declared policy of &quot;security for all&quot; but would also have
      unpredictable consequences for the reform process in the Baltic States.</FONT></FONT>
    </P>
    <CENTER>
    
    <H4><B><FONT FACE="Palatino"><FONT COLOR="#000000">CONCLUDING REMARKS</FONT></FONT></B></H4></CENTER>
    
    <P><FONT FACE="Palatino"><FONT COLOR="#000000">How NATO responds to the
      strong desire of Lithuania and other Eastern and Central European
      countries to become members will define developments in Europe for years
      to come. Difficult decisions, political courage, and generosity will be
      called for. At stake is not only our countries' destinies, but also an
      historic opportunity to end the uncertainty that for centuries has been so
      common throughout Europe.</FONT></FONT> </P>
    
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