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- BACKGROUND NOTES: LITHUANIA
- PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
- U.S. DEPARTMENT OF STATE
-
- Official Name:
- Republic of Lithuania
-
-
- PROFILE
-
- Geography
- Area: 65,200 sq. km. (26,080 sq. miles); about the size of West
- Virginia.
-
- Cities: Capital--Vilnius (pop. 592,500). Other cities--Kaunas
- (430,000); Klaipeda (206,000); Siauliai (148,000); Panevezys
- (129,000).
-
- Terrain: Lithuania's fertile, central lowland plains are
- separated by hilly uplands created by glacial drift.
-
- Climate: With four distinct seasons, the climate is humid
- continental, with a moderating maritime influence from the Baltic
- Sea.
-
-
- People
- Nationality: Noun and adjective--Lithuanian(s).
-
- Population: 3.8 million.
-
- Growth rate: -0.4%. Infant mortality--13/1,000.
-
- Ethnic groups: Lithuanian 80%, Russians 10%, Poles 7%,
- Belorussians 1.7%, Ukrainians 1.2%.
-
- Religions: Catholic (85%), Russian Orthodox.
-
- Languages: Lithuanian (official). Russian and Polish also are
- spoken by a large minority.
-
- Education: Years compulsory--9. Literacy--99%.
-
- Health: Infant mortality rate--18/1,000. Life expectancy--66
- years male, 76 female. Work force (1.9 million):
- Industry--33%. Science/Education/Culture--14%.
- Construction--13%. Agriculture/Forestry--8%. Health care--7%.
- Transportation/Communications--7%. Trade and Government--10%.
-
-
- Government
- Type: Parliamentary democracy.
-
- Constitution: 1992.
-
- Branches: Executive--popularly elected president (chief of
- state); prime minister (head of government). Legislative--Seimas
- (parliament--141 members, 4-year term); Judicial--Supreme Court.
-
-
- Administrative subdivisions: 11 cities, 44 rural districts.
- Principal political parties/coalitions:
-
- Democratic Labor Party (75 seats); Landowners Union (0 seats);
- Social Democrats (8 seats); Union of Poles (4 seats); "Homeland
- Concord" Sajudis (26 seats); Christian Democrats (17 seats);
- Nationalist Union (4 seats); Democratic Party (2 seats);
- Political Prisoners (1 seat); Independence Party (1 seat);
- Christian Democratic Union (1 seat); Greens (0 seats);
- Independent (1 seat).
-
- Suffrage: Universal at 18.
-
- Flag: Horizontal tricolor: yellow, green, red.
-
-
- Economy
- GDP: $2.5 billion.
-
- Real GDP growth: -17%.
-
- Per capita GDP (at 1992 prices): $732.
-
- Natural resources: Peat, potential for exploiting moderate oil
- and gas deposits offshore and on the coast.
-
- Agriculture/forestry (19% of GNP): Products--cattle, milk and
- dairy products, cereals, potatoes.
-
- Manufacturing (58% of GNP): Products--Technological instruments,
- energy, textiles and footwear, machinery and spare parts,
- chemicals, food processing, wood/paper/pulp products.
-
- Trade: Exports--$1 billion: building materials (36%), services
- (15%), chemicals (14%), foodstuffs (14%), consumer goods (9%).
- Imports--$1 billion: chemicals (52%), heavy machinery (17%);
- fuels, metals, minerals (13%). Major partners--Russia (45%),
- Belarus (13%), Germany (10%), Ukraine (6%).
-
- Exchange rate (July 1994): 3.8 litai=U.S. $1.
-
-
-
-
-
- PEOPLE
- The name "Lietuva," or Lithuania, might be derived from the word
- "lietava," for a small river, or "lietus," meaning rain (or land
- of rain). Lithuanian still retains the original sound system and
- morphological peculiarities of the prototypal Indo-European
- tongue. Between A.D. 400 and 600, the Lithuanian and Latvian
- languages split from the Eastern Baltic (Prussian) language
- group, which subsequently became extinct. The first known
- written Lithuanian text dates from a hymnal translation in 1545.
- Written with the Latin alphabet, Lithuanian has been the official
- language of Lithuania again since 1989. The Soviet era had
- imposed the official use of Russian, so most Lithuanians speak
- Russian as a second language while the resident Slavic populace
- generally speaks Russian as a first language.
-
- Lithuanians are neither Slavic nor Germanic, although Polish and
- Germanic colonization and settlement in the 1300s left cultural
- and religious influences. This highly literate society places
- strong emphasis upon education, which is free and compulsory
- until age 16. Most Lithuanians and ethnic Poles belong to the
- Roman Catholic Church, but a sizeable minority are Russian
- Orthodox.
-
- Enduring several border changes, Soviet deportations, a massacre
- of its Jewish population, and postwar German and Polish
- repatriations, Lithuania has maintained a fairly stable
- percentage of ethnic Lithuanians (from 84% in 1923 to 80% in
- 1993). Lithuania's citizenship law and constitution meet
- international standards, guaranteeing universal human and civil
- rights.
-
-
- HISTORY
- The earliest evidence of inhabitants in present-day Lithuania
- dates back 12,000 years. About 5,000 years ago, a culture known
- to archaeologists as "the cord-ware culture" spread over a vast
- region of Eastern Europe, between the Baltic Sea and the Vistula
- River in the west and the Moscow-Kursk line in the east. Merging
- with the indigenous population, they gave rise to the Balts, a
- distinct Indo-European ethnic group whose descendants are the
- present-day Lithuanian and Latvian nations and the now-extinct
- Prussians.
-
- The first written mention of Lithuania occurs in A.D. 1009,
- although many centuries earlier the Roman historian Tacitus
- referred to the Lithuanians as excellent farmers. Spurred by the
- expansion into the Baltic lands of the Germanic monastic military
- orders (the Order of the Knights of the Sword and the Teutonic
- Order), Duke Mindaugas united the lands inhabited by the
- Lithuanians, Samogitians, Yotvingians, and Couranians into the
- Grand Duchy of Lithuania (GDL) in the mid-13th century. In 1251,
- Mindaugas adopted Catholicism and was crowned King of Lithuania
- on July 6, 1253; a decade later, civil war erupted upon his
- assassination until a ruler named Vitenis defeated the Teutonic
- Knights and restored order.
-
- During 1316-41, Vitenis' brother and successor, Grand Duke
- Gediminas, expanded the empire as far as Kiev against the Tartars
- and Russians. He twice attempted to adopt Christianity in order
- to end the GDL's political and cultural isolation from Western
- Europe. To that purpose, he invited knights, merchants, and
- artisans to settle in Lithuania and wrote letters to Pope John
- XXII and European cities maintaining that the Teutonic Order's
- purpose was to conquer lands rather than spread Christianity.
- Gediminas' dynasty ruled the GDL until 1572. From the 1300s
- through the early 1400s, the Lithuanian state expanded eastward.
- During the rule of Grand Duke Algirdas (1345-77), Lithuania
- almost doubled in size and achieved major victories over the
- Teutonic and Livonian Orders. However, backed by the Pope and
- the Catholic West European countries, the Orders intensified
- their aggression.
-
- During this period, Kestutis (Grand Duke in 1381-82)
- distinguished himself as the leader of the struggle against the
- Teutonic Order. The ongoing struggle precipitated the 1385 Kreva
- Union signed by Grand Duke Jogaila of Lithuania (ruled in 1377-81
- and 1382-92) and Jadwyga, Queen of Poland. Upon their marriage,
- he became King of Poland. A condition of the union was
- Lithuania's conversion to Christianity (in 1387). This
- intensified Lithuania's economic and cultural development and
- oriented it toward the West. The conversion invalidated claims
- by the Teutonic Order and temporarily halted its wars against
- Lithuania.
-
- Lithuania's independence under the union with Poland was restored
- by Grand Duke Vytautas. During his rule (1392-1430) the GDL
- turned into one of the largest states in Europe, encompassing
- present-day Belarus, most of Ukraine, and the Smolensk region of
- western Russia. Led by Jogaila and Vytautas, the united
- Polish-Lithuanian army defeated the Teutonic Order in the Battle
- of Tannenberg (Gruenwald or Zalgiras) in 1410, terminating the
- medieval Germanic drive eastward.
-
- The 16th century witnessed a number of wars against the growing
- Russian state over the Slavic lands ruled by the GDL. Coupled
- with the need for an ally in those wars, the wish of the middle
- and petty gentry to obtain more rights already granted to the
- Polish feudal lords drew Lithuania closer to Poland. The Union
- of Lublin in 1569 united Poland and Lithuania into a commonwealth
- in which the highest power belonged to the Sejm of the nobility
- and its elected King, who was also the Grand Duke of Lithuania.
- Mid-16th-century land reform strengthened serfdom and promoted
- the development of agriculture, owing to the introduction of a
- regular three-field rotation system.
-
- The 16th century saw a rapid development of agriculture, growth
- of towns, spread of ideas of humanism and the Reformation, book
- printing, the emergence of Vilnius University in 1579, and the
- Lithuanian Codes of Law (the Statutes of Lithuania), which
- stimulated the development of culture both in Lithuania and in
- neighboring countries.
-
- In the 16th-18th century, wars against Russia and Sweden weakened
- the Polish-Lithuanian Republic. The end of the 18th century saw
- three divisions of the commonwealth by Russia, Prussia, and
- Austria; in 1795 most of Lithuania became part of the Russian
- empire. Attempts to restore independence in the uprisings of
- 1794, 1830-31, and 1863 were suppressed and followed by a
- tightened police regime, increasing Russification, the closure of
- Vilnius University in 1832, and the 1864 ban on the printing of
- Lithuanian books in traditional Latin characters.
-
- Because of his proclamation of liberation and self-rule, many
- Lithuanians gratefully volunteered for the French army when
- Napoleon occupied Kaunas in 1812 during his catastrophic invasion
- of Russia. After the war, Russia imposed extra taxes on Catholic
- landowners and enserfed an increasing number of peasants.
-
- A market economy slowly developed with the abolition of serfdom
- in 1861. Lithuanian farmers grew stronger, contributing to an
- increase in the number of intellectuals of peasant origin, which,
- in turn, led to the growth of a Lithuanian national movement. In
- German-ruled Lithuania Minor (Konigsberg or Kalinin-grad),
- Lithuanian publications were printed in large numbers and then
- smuggled into Russian-ruled Lithuania. The most outstanding
- leaders of the national liberation movement were J. Basanavicius
- and V. Kudirka. The ban on the Lithuanian press finally was
- lifted in 1904.
-
- During World War I, the German army occupied Lithuania in 1915,
- and the occupation administration allowed a Lithuanian Conference
- to convene in Vilnius in September 1917. The conference adopted
- a resolution demanding the restoration of an independent
- Lithuanian state and elected the Lithuanian Council, a standing
- body chaired by Antanas Smetona
-
- In 1919 and 1920, Lithuania fought what is known as its war for
- independence against three factions: the Red Army, which in 1919
- controlled territory ruled by a Bolshevist government headed by
- V. Kapsukas; the Polish army; and the Bermondt army, composed of
- Russian and German troops under the command of the Germans.
- Lithuania failed to regain the Polish-occupied Vilnius region.
-
- In the Moscow Treaty of July 12, 1920, Russia recognized
- Lithuanian independence and renounced all previous claims to it.
- The Seimas (parliament) of Lithuania adopted a constitution on
- August 1, 1922, declaring Lithuania a parliamentary republic, and
- in 1923 Lithuania annexed the Klaipeda region, the northern part
- of Lithuania Minor.
-
- By then, most countries had recognized Lithuanian independence.
- After a military coup on December 17, 1926, Nationalist Party
- leader Antanas Smetona became President and gradually introduced
- an authoritarian regime.
-
- Lithuania's borders posed its major foreign policy problem.
- Poland's occupation (1920) and annexation (1922) of the Vilnius
- region strained bilateral relations, and in March 1939 Germany
- forced Lithuania to surrender the Klaipeda region (after World
- War II, the Nuremberg trials declared the treaty null and void).
- Radical land reform in 1922 considerably reduced the number of
- estates, promoted the growth of small and middle farms and
- boosted agricultural production and exports, especially of
- livestock. In particular, light industry and agriculture
- successfully adjusted to the new market situation and developed
- new structures.
-
- The interwar period gave birth to a comprehensive system of
- education, with Lithuanian as the language of instruction and the
- development of the press, literature, music, arts, and theater.
- On August 23, 1939, the Molotov-Ribbentrop pact pulled Lithuania
- under German domination until the Soviet-German agreement of
- September 28, 1939, brought Lithuania under Soviet domination.
- Soviet pressure and a complicated international situation forced
- Lithuania to sign an agreement with the U.S.S.R. on October 10,
- 1939, by which Lithuania was given back the city of Vilnius and
- the part of Vilnius region seized by the Red Army during the
- Soviet-Polish war; in return, some 20,000 Soviet soldiers were
- deployed in Lithuania.
-
- On June 14, 1940, the Soviet Government issued an ultimatum to
- Lithuania, demanding the formation of a new Lithuanian Government
- and permission to station additional Red Army troops. Lithuania
- succumbed to the Soviet demand, and 100,000 Soviet troops moved
- into the country the next day.
-
- Arriving in Kaunas, the Soviet Government's special envoy began
- implementing the plan for Lithuania's incorporation into the
- U.S.S.R. On June 17, the alleged People's Government, headed by
- J. Paleckis, was formed; one month later, parliamentary elections
- were held, whereupon Lithuania was proclaimed a Soviet Socialist
- Republic on August 3.
-
- Totalitarian rule was established, Sovietization of the economy
- and culture began, and Lithuanian state employees and public
- figures were arrested and exiled to Russia. During the mass
- deportation campaign of June 14-18, 1941, about 7,400 families
- (12,600 people) were deported to Siberia without investigation or
- trial; 3,600 people were imprisoned; and over 1,000 were
- massacred.
-
- Lithuanian revolt against the U.S.S.R. soon followed the outbreak
- of the war against Germany in 1941. Via Radio Kaunas on June 23,
- the rebels declared the restoration of Lithuania's independence
- and actively operated a provisional government, without German
- recognition, from June 24 to August 5. Lithuania became part of
- the German occupational administrative unit of Ostland. People
- were repressed and taken to forced labor camps in Germany. The
- Nazis and local collaborators deprived all Lithuanian Jews of
- their civil rights and massacred about 200,000 of them. Together
- with Soviet partisans, supporters of independence put up a
- resistance movement to deflect Nazi recruitment of Lithuanians to
- the German army.
-
- Forcing the Germans out of Lithuania by 1944, the Red Army
- re-established control, and Sovietization continued with the
- arrival of communist party leaders to create a local party
- administration. The mass deportation campaigns of 1941-52 exiled
- 30,000 families to Siberia and other remote parts of the Soviet
- Union. Official statistics state that over 120,000 people were
- deported from Lithuania during this period, while Lithuanian
- sources estimate the number of political prisoners and deportees
- at 300,000.
-
- In response to these events, thousands of resistance fighters
- participated in unsuccessful guerilla warfare against the Soviet
- regime from 1944 to 1953.
-
- In attempted integration and industrial development, Soviet
- authorities encouraged immigration of other Soviet workers,
- especially Russians.
-
- Until mid-1988, all political, economical and cultural life was
- controlled by the Lithuanian Communist Party (LCP). First
- Secretary Antanas Snieckus ruled the LCP during 1940-74. The
- LCP, in turn, was responsible to the Communist Party of the
- U.S.S.R.
-
- Lithuanians comprised only 18% of total party membership in 1947
- and continued to represent a minority until 1958; by 1986, they
- made up 70% of the party's 197,000-strong body. During the
- Khrushchev thaw in the 1950s, the leadership of the LCP acquired
- limited independence in decision-making.
-
- The political and economic crisis that began in the U.S.S.R. in
- the mid-1980s also affected Lithuania, and Lithuanians as well as
- other Balts offered active support to Gorbachev's program of
- social and political reforms.
-
- Under the leadership of intellectuals, the Lithuanian reform
- movement Sajudis was formed in mid-1988 and declared a program of
- democratic and national rights, winning nationwide popularity.
- On Sajudis' demand, the Lithuanian Supreme Soviet passed
- constitutional amendments on the supremacy of Lithuanian laws
- over Soviet legislation, annulled the 1940 decisions on
- proclaiming Lithuania a part of the U.S.S.R., legalized a
- multi-party system, and adopted a number of other important
- decisions.
-
- A large number of LCP members also supported the ideas of
- Sajudis, and with Sajudis support, Algirdas Brazauskas was
- elected First Secretary of the Central Committee of the LCP in
- 1988. In December 1989, the Brazauskas-led LCP split from the
- Soviet Union's Communist Party and became an independent party,
- renaming itself the Lithuanian Democratic Labor Party in 1990.
-
- In 1990, Sajudis-backed candidates won the elections to the
- Lithuanian Supreme Soviet. On March 11, 1990, its chairman,
- Vytautas Landsbergis, proclaimed the restoration of Lithuanian
- independence, formed a new cabinet of ministers headed by
- Kazimiera Prunskiene, and adopted the Provisional Fundamental Law
- of the state and a number of bylaws.
-
- The U.S.S.R. demanded revocation of the act and began employing
- political and economic sanctions against Lithuania as well as
- demonstrating military force. On January 10, 1991, Soviet
- authorities seized the central publishing house and other
- premises in Vilnius and unsuccessfully attempted to overthrow the
- elected government by sponsoring a local "National Salvation
- Committee." Three days later the Soviets forcibly took over the
- TV tower, killing 14 civilians and injuring 700.
-
- During the national plebiscite on February 9, over 90% of those
- who took part in the voting (76% of all eligible voters) voted in
- favor of an independent, democratic Lithuania. Led by the
- tenacious Landsbergis, Lithuania's leaders continued to seek
- Western diplomatic recognition of its independence. Soviet
- military-security forces continued forced conscription, seized
- buildings, attacked customs posts, and sometimes killed customs
- and police officials.
-
- During the August 19 coup against Gorbachev, Soviet military
- troops took over several communications and other government
- facilities in Vilnius and other cities but returned to their
- barracks when the coup failed. The Lithuanian Government banned
- the Communist Party and ordered confiscation of its property.
-
- Despite Lithuania's achievement of complete independence,
- sizeable numbers of Russian forces remained on its territory.
- Withdrawal of those forces was one of Lithuania's top foreign
- policy priorities. Lithuania and Russia signed an agreement on
- September 8, 1992, calling for Russian troop withdrawals by
- August 31, 1993. These have been completed in full, despite
- unresolved issues such as the question of Russian military
- transit to and from the Kaliningrad enclave.
-
-
- GOVERNMENT AND POLITICAL CONDITIONS
- For over a year after independence, political life was fettered
- by an unclear delineation of powers between parliament and
- government. Political polarization increased, and name
- recognition played a much more significant role in politics than
- party affiliation. Sajudis remained part of an unofficial ruling
- coalition with two other politically right-wing parties, but
- rivalries were heightened by personally divisive political
- attacks and bureaucratic gridlock.
-
- In an effort to reduce the size and recalcitrance of a government
- bureaucracy allegedly impeding reform, in April 1992 then-Prime
- Minister Vagnorius unsuccessfully attempted to enact a measure
- permit-ting the dismissal of former Communist Party members and
- of those unwilling to enforce government decrees. Two deputies
- and a minister unsuccessfully tendered resignations in support of
- Vagnorius, but the rest of the cabinet wrote a letter to
- President Landsbergis complaining of the Prime Minister's
- confrontational governing style. Vagnorius, in turn,
- unsuccessfully submitted his resignation effective in May.
-
- With the failure of the May 23 referendum on establishing a
- permanent office of the president (based on the French model),
- President Landsbergis threatened to resign. Right-wing
- parliamentarians boycotted legislative sessions to delay attempts
- to form a quorum and successfully forestalled Vagnorius'
- resignation until mid-June, when a quorum passed a no-confidence
- motion. Aleksandras Abisala, another Landsbergis favorite,
- became the new Prime Minister.
-
- A constitution was approved by 53% of eligible voters (85% of
- those who actually voted) in an October 2, 1992, referendum. The
- results of the October 25 and the November 15 runoff elections
- handed the Democratic Labor Party (LDP), headed by former
- Communist Party boss Algirdas Brazauskas, a plurality of votes
- and a clear majority of parliamentary seats.
-
- Subsequent presidential elections on February 14, 1993, gave
- Brazauskas victory over a non-LDP coalition led by independent
- candidate Stasys Lozoraitis, Lithuania's former ambassador to the
- U.S. Economic mismanagement and collapse, fueled by chronic
- energy shortages and political factionalism, played a decisive
- role in the election results.
-
- The Seimas (parliament), a unicameral legislative body, is the
- highest organ of state authority. It initiates and approves
- legislation sponsored by the prime minister. The prime minister
- has full responsibility and control over his cabinet.
-
- National Security
- Lithuania's defense system is based upon the Swedish-Finnish
- concept of a rapid response force composed of a mobilization base
- and a small group of career professionals. The defense ministry
- is responsible for combat forces, border control, customs, civil
- defense, search/rescue, and intelligence operations. The army
- consists of three battalions of 850 troops each, and there is a
- mandatory one-year active-duty draft period. Alternative service
- for conscientious objectors is available. The navy and coast
- guard use patrol boats and small Russian frigates for coastal
- surveillance; the air force operates 30 planes used for
- reconnaissance and border patrol.
-
- The 5,400 border guards fall under the interior ministry's
- supervision and are responsible for border protection and
- passport and customs duties and share responsibility with the
- navy for smuggling/drug trafficking interdiction. A special
- security department handles VIP protection and communications
- security. The "SKAT," or national guard, consists of over 700
- professionals and 5,000 volunteers.
-
- Key Government Officials
- President--Algirdas Brazauskas
- Prime Minister--Adolfas Slezevicius
- Minister of Foreign Affairs--Povilas Gylys
-
- Lithuania maintains an embassy in the United States at 2622 16th
- Street, Washington, DC 20009 tel: 202-234-5860.
-
-
- ECONOMY
- The Soviet era brought Lithuania intensive industrialization and
- economic integration into the U.S.S.R., although the level of
- technology and state concern for environmental, health, and labor
- issues lagged far behind Western standards. Urbanization
- increased from 39% in 1959 to 68% in 1989. From 1949 to 1952,
- the Soviets abolished private ownership in agriculture,
- establishing collective and state farms. Production declined and
- did not reach pre-war levels until the early 1960s. The
- intensification of agricultural production through intense
- chemical use and mechanization eventually doubled production but
- created additional ecological problems.
-
- Industry is Lithuania's largest economic sector. It is being
- privatized, and most small firms are now under private ownership.
- Large industries, accounting for the bulk of Lithuania's capital
- investment, are still mainly under state control. Food-processing
- and light industries dominate, but furniture, footwear, and
- textile manufacturing are important.
-
- Machine industries (tools, motors, computers, consumer durables)
- account for over one-third of the industrial work force but
- generally suffer from outdated plants and equipment. In
- agriculture, Lithuania produces cattle, hogs, and poultry for
- export. The principal crops are wheat, feed grains, and rye.
- Farm production dropped in 1992 as a result of difficulties with
- agricultural privatization and poor weather.
-
- The transportation infrastructure is adequate. Lithuania has one
- ice-free seaport with ferry services to German ports. There are
- operating commercial airports with scheduled international
- services at Vilnius and Kaunas. The road system is good, but
- border crossings may be difficult due to inadequate border
- facilities at checkpoints with Poland. Telecommunications have
- improved greatly since independence as a result of heavy
- investment. The banking/financial sector is weak but improving.
-
- Lithuania had a slightly negative trade balance in 1993. Its
- main trading partners are Eastern Europe and the New Independents
- States (NIS) of the former Soviet Union. The main categories of
- imported products are energy, vehicles for transport and
- machinery. Exports consist mainly of machinery and food
- products. Trade with Western countries rose from 8% of the total
- in 1992 to over 24% in 1993.
-
- Although gross domestic product (GDP) accounts comparable to
- Western figures are not yet fully available, real GDP has been
- declining since 1990. In 1992, it fell by about 40% and
- continued to fall this year, albeit at a less dramatic rate.
- Inflation is also high due to price deregulation and higher costs
- of imported energy and other inputs from the traditional
- suppliers in the NIS. The consumer price index rose by 1,200% in
- 1992, and monthly retail price increases in 1993 have been
- generally above 10%. This year, however, there are indications
- of improvement. The spread of private sector activity, not
- always reflected in national accounts statistics, is creating
- productive jobs and boosting consumer spending. Also, the
- introduction in mid-1993 of a stable national currency has
- stimulated investment.
-
- The government focuses its efforts on stabilizing the economy,
- taking measures to secure supplies of energy and other vital
- inputs, providing a social safety net to alleviate the worst
- consequences of the economic depression, and combating economic
- crime. It has enacted legislation providing a reasonably
- transparent and favorable regulatory regime for private
- investment.
-
- In 1993, Lithuania exported $16 million in goods to the U.S. and
- imported $57 million, much of the latter being agricultural
- commodities under concessional programs. U.S.-Lithuanian firms
- registered 235 of 3,674 foreign joint ventures, and of $115
- million in total foreign investment, the U.S. holds a $35 million
- share.
-
- Over 55,000 private, personally owned companies now exist in
- Lithuania, including an additional 19,000 corporations and 600
- foreign-controlled businesses. To date, the state privatization
- agency has privatized 3,800 companies. State companies are now
- authorized to sell up to 50% of their shares for hard currency
- without cabinet approval, and many of more than 20 commercial
- banks offer a full range of international banking services.
- Monthly inflation remains in the single digits, and the new
- currency remains stable. Lithuania recorded a trade surplus in
- 1992 and has discussed creation of six "free economic zones"
- offering tax, customs, and tariff breaks for foreign investors.
-
-
- FOREIGN RELATIONS
- Lithuania became a member of the United Nations on September 18,
- 1991, and participates in a number of its organizations and is a
- signatory to other international agreements. It also is a member
- of the Conference on Security and Cooperation in Europe, the
- North Atlantic Cooperation Council, and the Council of Europe.
- Lithuania is unaffiliated directly with any political alliance
- but welcomes further cooperation and integration with NATO, the
- European Union, and other Western organizations.
-
- Lithuania maintains embassies in the United States, Sweden,
- Finland, the Vatican, Belgium, Denmark, France, Germany, Poland,
- United Kingdom, and Venezuela. It also operates missions in
- Estonia, Latvia, Russia, Czech Republic, Italy, Ukraine, and in
- New York City, to the United Nations and a consulate. Honorary
- consuls are located in Argentina, Australia, Canada, Iceland,
- South Korea, Greece, Norway, Philippines, and in the United
- States in Los Angeles and Chicago.
-
- Lithuania's liberal citizenship law has substantially eased
- tensions with its neighbors. Lithuania's suspension of two
- strongly ethnic Polish district councils on charges of blocking
- reform or disloyalty during the August 1991 coup had cooled
- relations with Poland, but bilateral cooperation has markedly
- increased with the holding of elections in those districts and
- the signing of a bilateral friendship treaty. A long-standing
- border dispute with Belarus is being negotiated.
-
- U.S.-Lithuanian Relations
- The United States established diplomatic relations with Lithuania
- on July 28, 1922. U.S. representation accredited to Lithuania
- served from the legation in Riga, Latvia, until May 31, 1930,
- when a legation in Kaunas was established. The Soviet invasion
- forced the closure of the legation in Kaunas on September 5,
- 1940, but Lithuanian representation in the United States has
- continued uninterrupted for over 70 years. The U.S. never
- recognized the forcible incorporation of Lithuania into the
- U.S.S.R. and views the present Government of Lithuania as a legal
- continuation of the interwar republic. Lithuania has enjoyed
- most-favored-nation (MFN) treatment with the U.S. since December
- 1991. Through 1993, the U.S. has committed over $66 million to
- Lithuania's economic and political transformation and to address
- humanitarian needs. Food grain and feed grain assistance totals
- $46 million of this figure.
-
- Principal U.S. Embassy Officials
- Ambassador--vacant
- Economic Officer--John Stepanchuk Political Officer--Algis
- Avizienis
- Administrative Officer--Matthew Johnson
- Consular Officer--Steven Wangsness
- AID Director--John Cloutier
- Public Affairs Officer--Victor Sidabras
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- The U.S. embassy in Lithuania is located at Akmenu 6, Vilnius
- tel. (370-2) 222-724.
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