VZCZCXYZ0009
RR RUEHWEB

DE RUEHTL #0883 2700538
ZNR UUUUU ZZH
R 270538Z SEP 06
FM AMEMBASSY TALLINN
TO SECSTATE WASHDC 9065

UNCLAS TALLINN 000883 
 
SIPDIS 
 
CODEL 
SIPDIS 
 
DEPARTMENT FOR H, BARBARA FLECK 
EUR/NB FOR KAYE LEE 
 
E.O. 12958: N/A 
TAGS: PREL PGOV EN
SUBJECT: ESTONIA: SCENESETTER FOR CODEL FRIST 
 
 
¶1.  (SBU) Summary:  Two and a half years after NATO and EU 
accession, Estonia remains a strong ally on all fronts.  It 
is deeply committed to trans-Atlantic security institutions 
and pro-free market economic policy.  Estonia is a 
steadfast ally in the Global War on Terror (GWOT) in both 
Afghanistan and Iraq, where its troops have suffered 20 
casualties including two killed in action, a stiff price 
for a country with only 1.35 million inhabitants.  With 
parliamentary elections scheduled for next spring, however, 
the debate on difficult issues, such as Iraq, will likely 
grow sharper.  End summary. 
 
¶2.  (SBU) Appreciation for U.S. non-recognition of the 
Soviet occupation of Estonia remains an important source of 
good will towards the United States.  Estonian leaders 
never tire of expressing their country's gratitude to 
American interlocutors for the role of U.S. policy in 
keeping alive Estonian aspirations during the Soviet 
occupation.  This good will is a diminishing asset, 
however, as younger Estonians who did not live through the 
occupation do not feel this tie as closely as their 
parents' generation does. 
 
¶3.  (U)  Since the early 90s consecutive Estonian 
governments have backed a business- and investor-friendly 
economic policy featuring a flat tax on personal income and 
no tax on reinvested profits.  The result has been the 
fastest economic growth in this part of the world.  In 
2005, GDP grew by almost 10%, and growth accelerated even 
further during the first quarter of 2006.  Leading sectors 
include high-tech, tourism, and manufacturing.  The U.S. is 
the fifth largest source of Foreign Direct Investment, 
although we are far behind the Swedes and the Finns. 
 
¶4.  (SBU) Estonian troops have been serving side-by-side 
with U.S. troops in Baghdad since June 2003, suffering 20 
wounded including two killed in action.  The current 
mandate for troop deployment is set to expire at the end of 
¶2006.  The Embassy's main short-term priority is to 
encourage Estonia to renew its mission mandate in Iraq. 
Estonia also contributes to the international stabilization 
and assistance force in Afghanistan.  In May 2006, Estonia 
dramatically increased its contribution in Afghanistan as 
part of a UK-led Provisional Reconstruction Team in the 
challenging Helmand Province.  Afghanistan represents 
Estonia's major foreign mission for the next two years.  By 
the end of this year, there will be 150 Estonian troops 
serving in Helmand, a province which produces the lion's 
share of opium in Afghanistan and has seen a resurgence of 
Taliban attacks.  On August 12, an Estonian patrol came 
under Taliban attack near the Afghanistan-Pakistan border, 
resulting in the wounding of three Estonian soldiers. 
 
 
¶5. (SBU)   It is possible that your Estonian interlocutors may 
raise with you the government's desire to secure Estonia's 
entry into the Visa Waiver program.  We are working closely 
with the GOE, in accordance with the 'Visa Waiver Program 
Roadmap', to help them address issues which directly affect 
Estonia's eligibility for visa-free travel.  We are also 
cooperating closely with the GOE on a public diplomacy 
campaign to demystify the visa application process and 
reduce the number of illegal Estonian workers and overstays 
in the United States.  Finally, we are taking steps to 
simplify the application process and reduce the number of 
times applicants have to appear at the Embassy.  These 
efforts have helped to improve the atmosphere 
significantly.  The refusal rate for Estonians has declined 
steadily since 2003, dropping below 6% this calendar year. 
 
KEY POINTS 
 
¶6.  (U) During your meeting with Defense Minister Ligi 
(confirmed) and Foreign Minister Paet (TBC) you may wish 
to: 
 
-- Outline your planned travel to Afghanistan and Iraq and 
update the Estonians on your thinking regarding the way 
forward in those two countries. 
 
-- Express appreciation for Estonia's ongoing support in 
Iraq and Afghanistan at this critical time and encourage 
Estonia to extend its troop commitment in Iraq beyond 
December 31. 
 
WOS