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### Viewing cable 06TALLINN739, ESTONIA: SCENESETTER FOR CODEL KOLBE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06TALLINN739 | 2006-08-15 15:03 | 2011-04-24 00:12 | UNCLASSIFIED | Embassy Tallinn

`

    VZCZCXYZ0002
    RR RUEHWEB

    DE RUEHTL #0739/01 2271517
    ZNR UUUUU ZZH
    R 151517Z AUG 06
    FM AMEMBASSY TALLINN
    TO SECSTATE WASHDC 8904

` `

    UNCLAS TALLINN 000739

    SIPDIS

    SIPDIS

    E.O. 12958: N/A
    TAGS: PREL PGOV EN OREP AMGT ASEC AFIN NP IN TH MG FI
    SUBJECT:  ESTONIA:  SCENESETTER FOR CODEL KOLBE

    ¶1.  (SBU) Summary:  Two and a half years after NATO and EU accession,
    remains a strong ally on all fronts.  It is deeply committed to trans
    institutions and pro-free market economic policy.  Estonia is a stead
    War on Terror (GWOT) in both Afghanistan and Iraq, where its troops h
    casualties including two killed in action, a stiff price for a countr
    inhabitants.  While a centrist governing coalition in power since Apr
    maintained Estonia's pro-U.S. foreign policy line, inclusion of the p
    in the coalition has caused some turbulence.  But this has not dilute
    strength of the relationship and the shared values that make it easy
    ground with Estonia.  With presidential elections scheduled for this
    parliamentary elections for next spring, however, the debate on diffi
    Iraq, will likely grow sharper.  Over the longer term, we face a chal
    Estonians focus increasingly on Europe.  End summary.

    OVERVIEW

    ¶2.  (SBU) Appreciation for U.S. non-recognition of the Soviet occupat
    remains an important source of good will towards the United States.
    never tire of expressing their country's gratitude to American interl
    U.S. policy in keeping alive Estonian aspirations during the Soviet o
    good will is a diminishing asset, however, as younger Estonians who d
    the occupation do not feel this tie as closely as their parents' gene
    with increasing opportunities to travel, study, and work in other Eur
    countries, younger Estonians are increasingly becoming focused on Eur
    major challenge for our public diplomacy is to engage the rising gene
    Estonians to ensure that American-Estonian relations will remain stro
    term.

    ¶3.  (SBU) PM Andrus Ansip, of the conservative Reform Party, came int
    2005 as head of a three-party coalition that includes the populist Ce
    left-leaning rural-based People's Union.  Given the coalition's dispa
    economic policy, many observers assumed the government's shelf-life w
    But Estonia's strong economy and tax revenues, and a fairly well-deli
    policy responsibilities among coalition partners, have helped paper o
    2005, GDP grew by almost 10%, and growth accelerated even further dur
    quarter of 2006.  Since the early 90s consecutive Estonian government
    business- and investor-friendly economic policy featuring a flat tax
    and no tax on reinvested profits.  Leading sectors include high-tech,
    manufacturing.  The U.S. is the third largest source of Foreign Direc
    although we are far behind the Swedes and the Finns.

    ¶4.  Recently, preparations for this fall's presidential elections hav
    tensions on the political scene.  The Estonian President is elected b
    Parliament.  If a majority can't be achieved in a series of three vot
    on August 28, the decision goes to an electoral college comprised of
    officials and Members of Parliament on September 23.  The President's
    ceremonial, but the election is important as it is widely viewed as t
    campaign for parliamentary elections in March 2007, which will determ
    the next Estonian government.

    FOREIGN POLICY

    ¶5.  (SBU) Estonian troops have been serving side-by-side with U.S. tr
    since June 2003, suffering 20 casualties including two killed in acti
    mandate for troop deployment is set to expire at the end of 2006.  Th
    short-term priority is to encourage Estonia to renew its mission mand
    also contributes to the international stabilization and assistance fo
    May 2006, Estonia dramatically increased its contribution in Afghanis
    UK-led Provisional Reconstruction Team in the challenging Helmand Pro
    Afghanistan represents Estonia's major foreign mission for the next t
    end of this year, there will be 150 Estonian troops serving in Helman
    produces the lion's share of opium in Afghanistan and has seen a resu
    attacks.  On August 12, an Estonian patrol came under Taliban attack
    Afghanistan-Pakistan border, resulting in the wounding of three Eston

    ¶6.  (SBU) Estonia's relationship with Russia is difficult, though an
    investment ties following Estonia's EU accession combined with recent
    political consultations give some cause for guarded optimism.  On Apr
    Interior Kalle Laanet signed a Cooperation Protocol with his counterp
    outlines a two-year strategy for law enforcement cooperation in comba
    terrorism, and organized crime.  Beyond Russia, Estonia has played an
    encouraging democratic reform and economic development in several for
    states.  As part of those efforts Estonia has provided law enforcemen
    notably in Georgia.  Former Prime Minister Mart Laar acts as an advis

    RAYTHEON BID FOR SHORT RANGE AIR DEFENSE MISSLE SYSTEM

    ¶7.  (SBU) In order to meet mandated NATO entry conditions, the Estoni
    Forces developed a requirement for a very short range tripod mounted
    defense system to protect both fixed and static facilities of operati
    importance.  The total Ministry of Defense (MOD) system requirement i
    units, 96 missiles, 2 (3-D) radars and 3 fire direction centers.  In
    MOD released a tender to two competitors:  the USG/Raytheon Team and
    French MBDA Company team.  The total budget is $52 million, making it
    military tender in Estonia's history.  The USG/Raytheon team, labeled
    Team," is comprised of the USG (missiles, trainers), Raytheon (prime
    launchers), the Norwegian company Kongsberg (command and control) and
    Swedish contractor Ericsson (radars).  The MBDA team submitted two bi
    offering their Mistral missile system.  The MOD will make a recommend
    missile system package it prefers to the Government in the coming wee
    recommendation should at least earmark the company that will win the
    anticipate a formal announcement by the MOD in September.

    ¶8.  (SBU) The Embassy has been actively cultivating a solid relations
    and adapting to their needs.  To date, the Nordic Team proposal appea
    favorable position through the technical and financial phases of the
    confident that if the decision is based on performance and price, the
    outright.  However, politics is the "X-factor" where the French hope
    Reviewing MBDA's strategy in previous competitions, it is anticipated
    every resource at their disposal, including extensive French governme
    order to gain the necessary influence to force a favorable selection.

    SUGGESTED POINTS

    ¶9.  (U) During your meeting with Prime Minister Andrus Ansip you may

    -- Express appreciation for Estonia's ongoing support in Iraq and Afg
    critical time and encourage Estonia to extend its troop commitment in
    December 31.  While Estonian contributions are small in absolute numb
    have provided staunch support in the GWOT.  Estonian troops are on th
    international efforts to stem the heroin trade from Afghanistan.

    -- Note Estonia's formidable economic progress and its high ranking i
    Economic Freedom.  Underscore importance of maintaining continued tra
    investor-friendly environment to further economic success.

    -- Encourage a fair and transparent decision process for the short ra
    missile system tender that is based on performance and cost.  As this
    military tender, it is important that the GOE set a precedent for a f
    not prejudiced by politics.

    WOS

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