Timetable for Completion of Reforms

Approved by the Cabinet of Ministers of Latvia 4 March 2003

Timetable for Completion of Reforms
LATVIA

I. Political and Economic Issues

Objective 1

To continue to take measures to ensure integration of society (non-citizens, Russian minority) and to settle minority issues

Latvia's longstanding commitment to social integration continues, as demonstrated by the creation of a new ministerial post in the Government - the Minister for Special Assignments for Society Integration Affairs (MSIA). This new institution will focus its efforts on promoting dialogue among different groups of Latvia-s society and protecting the rights of minority groups. The MSIA plans to renew and update the Society Integration Program on a yearly basis.

MSIA will have adequate resources for discharging his responsibilities. The new institution will consolidate administrative structures and subordinate to the MSIA the existing Department for Society Integration from the Ministry of Justice and the Department of Minority Affairs from the Naturalization Board. In the next year budget passed by the Government has assigned 315,000 Euro for running of the MSIA, while the total of programs overseen by the MSIA will amount to 2,150,000 Euro. With the adoption of a new budget for 2003, the new Secretariat will have 21 civil servants, and some consultants, working specifically on issues of social integration, thereby, increasing the total number of experts devoted to the subject within the Government. The funding allocated to integration issues will increase through the expenditure of EU funds (ACCESS and PHARE) and increased government co-financing. All in all the funding for society integration programs from both state budget and international programs will reach about 4,75 million Euro next year. In addition, funding continues for the Naturalization Board, the National Program of Language Training and other smaller programs related to state language training.

The MSIA will create a Consultative Council for Integration Issues in order to involve representatives of minority groups in a dialogue with the Government and to consult them in the drafting of integration legislation and decision making process. In addition, the MSIA will renew the work of the inter-institution working group dealing with integration affairs. The MSIA also plans to increase dialogue with regions and on the municipal level.

The Government will continue to facilitate naturalization of non-citizens through the financing of Latvian language instruction for those seeking citizenship, as well as information activities on the naturalization process.

Among the priorities of the MSIA is ensuring compliance with the EU Council Directive 2000/43/EC of 29 June 2000, Implementing the Principle of Equal Treatment Between Persons Irrespective of Racial or Ethnic Origin through the amendment of national legislation. The Minister plans also to commence work on a National Action Plan to Combat Racism and Intolerance.

MSIA budget, as provisionally accepted, includes funding for public information activities - publications, information materials, creation of a MSIA internet homepage, which will also enhance dialogue between the Government and society at large.

Objective 2

To continue history evaluation processes

Latvia's policy is based on fair evaluation of the history events. A special attention is given to those historic events during different occupation periods that could only been evaluated on the state level after regaining independence. In 2003, active work will continue on three directions: historic research, education, and remembrance of Holocaust.  

Latvia's Commission of Historians, which works under the auspices of the State President, continues research under the broad theme "Crimes against Humanity Committed in the Territory of Latvia under Two Occupations, 1940 - 1956". It is planned that this research provides input into curricula of schools and universities. The Commission's next conference "Occupation Policy of Nazi Germany in Latvia (1941-1945)" is scheduled for June 2003.  

The MFA plans to submit this spring for Government-s consideration a proposal for Latvia to join the International Task Force. Holocaust issues are included in compulsory history curriculum, and Latvian Association of History Teachers will continue to introduce newly developed teaching material in schools across Latvia. A number of international seminars on holocaust teaching practices are planned for the year 2003 with participation from Sweden, the United States, Israel and Germany. Other plans include visits of Latvian teachers to the Yad Vashem International School of Holocaust Studies in Jerusalem in autumn 2003.

As a sign of continuous commitment to commemoration of the holocaust, the State President Vaira Vike-Freiberga has assumed patronage over the raising of a monument at the Riga Synagogue to the saviors of Jews during WWII.

Objective 3

To continue to ensure democratic control of armed forces and civil - military relations.

Latvia will continue to implement the existing and well functioning procedures embodying principles of democratic control over armed forces. Necessary legislation is in place already for several years. However, further involvement of parliamentarians in the defence issues is encouraged by regular briefings and discussions on important domestic and international security issues by MoD representatives, participation of parliamentarians in controlling efficient spending of resources allocated for defence as well as ongoing discussions on defence review, and regular visits to military sites to be aware of professional preparedness and quality of life standards of military personnel.

Concept on Civil-Military Co-operation approved by the Government already in June 2002 sets guidelines for further work within the area. Special emphasis will be laid on promotion of public understanding regarding armed forces and defence issues; importance of military support to society will be stressed. The Concept also defines further co-operation between national and local authorities, non-governmental organisations, civil population, National Armed Forces, also NATO and partner nations.

Objective 4

To continue to ensure that public opinion is sufficiently well informed and supportive of NATO membership and the objectives of the Alliance.

Promotion of a steady growing support to Latvia's membership in NATO has been main aim of public information policy on NATO related issues. By providing unbiased, overall, easy comprehensible information on NATO and on Latvia's integration to any inhabitant of Latvia it has been ensured that almost two thirds of population (68.5% in December 2002) are supporting NATO membership.

After invitation to join the Alliance has been received public information policy is aimed at explaining Latvia-s obligations in a status of future NATO member to the public. New approaches to providing information and making opinion have been introduced. Now focus is placed on increasing knowledge and understanding about Latvia - NATO issues through a teaching process. Traditional channel of delivering information to the society - media - is utilized as before, however, new, modern elements are provided.

Close working level co-operation has been established with both written and electronic media especially focusing on Russian speaking media and regional representatives. However, the teaching process on security related issues will receive a particular attention. Firstly, following the experience of carrying out various seminars type projects in the previous years, it was understood that teachers could be regarded as advantageous channel for delivering information and knowledge to their students. Therefore a focus on the education of teachers on NATO related issues, especially, on the Russian speaking from different regions of Latvia will be made in this year. Secondly, to ensure that teachers have qualitative materials to work with. Ministry of Foreign Affairs will assist in preparation of learning materials, which are up to the standards of the education requirements for the Secondary school level. The aim is to offer interesting and unusual format of learning materials in order to make school children to be interested in Latvia-NATO issues and to enjoy the study process.

To guarantee more effective result to Government-s public information policy close co-operation among the governmental and non-governmental institutions responsible for NATO integration will be intensified also in 2003.

Objective 5

To ensure that complete legal framework for the fight against corruption and organized crime is in place and measures fully implemented.

Fight against corruption is a priority of new Latvia-s Government that took office on November 7, 2002 and has already made number of proactive and radical steps to address the issue both, legislation and implementation. Corruption, smuggling and organized crime have been considered as direct threat to the state's security and further economic development. Therefore, efforts to coordinate and join activities of number of institutions dealing with fight against corruption and prevention are taking place.

The Parliament, elected October 6, 2002, has for the first time established a permanent Standing Committee on Supervising the Prevention and Combating of Corruption, Smuggling and Organized Crime. The Committee is responsible for national policy of fight against corruption. Following areas have been defined as priorities: declarations of public officials, state procurement, corruption in the court system, smuggling, organized crime. As one of the first activities the Committee has held meeting with General Prosecutor's Office to learn on further necessary improvements regarding legislation. The Committee works closely with Corruption Prevention and Combating Bureau.

Corruption Prevention and Combating Bureau established in 2002 is fully operational as starting from February 1, 2003 it has the right to carry out operational activities. By the end of this year significant increase in the numbers of Bureau's personnel is expected: target figure is about 100 employees at the end of 2003. According to the law the Bureau has developed Strategy for corruption prevention and fight against corruption. Public education is an important segment of the Strategy along with corruption prevention and combating. The Strategy has been discussed and approved by the Parliament's Committee on Supervising the Prevention and Combating of Corruption, Smuggling and Organized Crime. As a following step the Bureau will develop National Program that will include detailed tasks and timetables for three main areas - prevention, combating and education. To strengthen Bureau's operational capacity and effectiveness attention is focused on development of regional supportive structures. Current plans do not foresee creation of regional branches of the Bureau, existing local police unites will be incorporated into the system and proper training of the personnel will take place within 2004. The Government has decided to allocate 2.8million Euro for the Bureau from the State Budget in 2003. Detailed proposals had been developed and submitted for foreign assistance both from international institutions and on bilateral basis.

Positive experience of addressing corruption and related issues jointly with the U.S. and numerous initiatives of co-operation with other countries and international institutions have led to creation of Foreign Advisory Pannell - consultative body - to avoid duplication and introduction of conflicting approaches. The Pannell is chaired by representatives of Prime Minister-s office dealing with respective issues with participation of Chairman of the Parliamentary Committee and representatives of the Corruption Prevention and Combating Bureau. Possibility for co-operation with World Bank, European Union and number of countries on bilateral bases has been identified.

Objective 6

To ensure the provision of sufficient administrative capacity to sustain reforms.

Latvia's MFA and MoD have prepared plans for strengthening the administrative capacity in order to effectively pursue Latvia's interests in NATO decision-making process. Increase of staffing in the Permanent Mission to NATO, as well as Central Offices of both ministries is planned during the year 2003.

The target composition of Latvia's Permanent Mission to NATO was worked out in an inter-ministerial working group and agreed at Latvia's NATO Integration Council. It foresees personnel increase in the Mission more than twofold. Special attention is being paid to the administrative and chancellery staff in order to ensure sufficient capacity for handling documents, including up to confidential ones.

The number of personnel in the MFA Security Policy Department dealing with NATO is expected to grow for one third. Considerable increase is planned in the Chancellery, as well as other related administrative sections, i.e. IT department. The Security Policy Department is being moved to new, more secure premises in the spring 2003 which will allow more efficient work with NATO classified material.

Current MoD structure is going to be adjusted to ensure sufficient capacity to handle NATO matters. To enhance MoD NATO integration efforts, the new structures like national NSIP office and Standardisation section will be established.

Objective 7

To ensure domestic and external economic stability (growth, employment, prices, state budget, and balance of payments).

The future prospects of the Latvian economy are closely linked to the forthcoming accession to the EU in May 2004. Hence the economic development and policy is and will be largely determined by the common EU legislation and policy. The subsequent participation in the European Economic and Monetary Union will bring a long- run convergence to nominal and real exchange rate equilibrium, providing further conditions for sustainable economic development and the deepening of Latvia's economic integration with the EU.

In future years, Latvia should benefit from greater economic stability arising from NATO and EU membership, the EU pre- and post-accession structural funds, further inflows of foreign investment (FDI flows have been faster and stronger since 1997 and accounted for 5% of GDP per annum), reduced economic and political risk factors and an improvement in the business environment.

It is projected that in the medium-term Latvia's GDP will grow by 5-6% annually. The growth will mainly stem from the increased investments, productivity and exports.

Better prospects for higher growth of exports are associated with the more effective conditions for the trade with the EU, with the government's plans to enhance export-supporting schemes and the growth of Latvia's external competitiveness and productivity. Thus, the current account deficit on the balance of payments will gradually shrink but, given the growth in domestic demand together with the present slowdown in exports, it will be important to monitor the potential capacity constraints in leading export sectors.

The government has pledged to pursue fiscal policy that is consistent with the provisions of the European Stability and Growth Pact. This will ensure the continuation of a low government debt ratio (currently 15-16%), a consolidated fiscal budget deficit that is below 3% of GDP in the short-term and, in the medium-term, a balanced budget.

With the forthcoming accession to the Euro-zone, the compliance with the Maastricht convergence criteria will foster the preservation of a low inflation environment. On the basis of macroeconomic forecasts, inflation will not exceed 3% per annum in the medium-term and the average price levels in Latvia and the EU will converge.

After accession to the EU, Latvia will join the ERM II and tie the national currency to the Euro, maintaining this peg until accession into the European Economic and Monetary Union. The reduction in exchange rate and country risk premia, together with the positive expectations engendered by future accession to the EMU, will be mirrored in lower interest rates.

Objective 8

To pursue key economic reform and restructuring objectives, including strengthening of the private sector.

The aim of economic policy of the government is to achieve sustainable, stable and balanced economic and social development. In order to achieve this aim, the government has created the National Development Plan, the Long Term Economic Development Strategy and the Declaration on the Intended Activities of the Cabinet of Ministers. These documents reflect the main objectives, priorities and timetable for economic reforms.

These documents state that the economic policy of the government is targeted at:

• Maintaining stable macroeconomic environment;
• Restructuring and modernisation of economy, ensuring transition from the labour intensive economy to the knowledge intensive economy, building the competitiveness of the economy and creation of more favourable conditions for business activity;
• Reducing socio-economic imbalances and risks through investment in human capital, restructuring of the health care system, promoting employment and seeking a balanced regional development policy.

In reducing public expenditure and the budget deficit in the medium-term, the new government intends to foster an increase in the share of the private sector in national output. Privatisation is basically completed; the share of private sector in GDP is around 70%. Currently there are no plans to privatise some large utilities like Latvenergo (Electricity Company) and Latvijas Dzelzceļš (Railway). Yet state shares in dominant telecom operator Lattelekom might undergo privatisation, after the telecommunications market liberalisation is completed in 2003. The decision has been made about selling the remaining state shares in Latvian Savings Bank. Prices for gas, electricity and telecommunications might fluctuate in 2003 and there could be an impact on inflation in a case they would raise. The Public Utilities Commission is in the process of implementing a "price cap" methodology for utilities pricing. This will be implemented in all utilities but with limited application in the railways because of the existing subsidies to the railways.

The provision of services by public utilities and the determination of tariffs is supervised by the multi-sector Public Utilities Commission which scrutinizes enterprises with dominant market positions and monitors administrative price regulation. Transparency is paramount and considerable attention is being paid to the links between the economic management of the public utilities and the overall security of Latvia. The Competition Board enforces competition policy.

Objective 9

To ensure macroeconomic affordability and sustainability of defence spending.

It is expected that Latvia will continue to enjoy rapid, balanced and sustainable macroeconomic development. High growth rates, based on recovering external environment, decrease in the unrecorded sector of the economy and better tax administration will ensure increase in state revenues.

The medium term fiscal goals of the government of Latvia are the provision of the predictable and competitive tax system, reduction of the tax burden to entrepreneurs and improvement in the tax administration. The Cabinet of Ministers has also adopted several documents envisaging measures for the optimisation of the state expenditure management, improvement of the national budget planning and development system of the strategic long-term planning. Gradual implementation of the above mentioned measures as well as government's pledge to pursue disciplined fiscal policy will positively impact the spending of the state budget and ensure implementation of the political priorities of the government. Planning the state budget expenditures for the coming years government has set "State long term security guarantees by NATO membership" and "Institutional preparation for the EU membership" as the key budget priorities.

Macroeconomic affordability is leading to sustainability of defence spending. As provided by the Law on Defence Financing defence expenditure has reached 2% of GDP in 2003. This firm commitment is safeguarded by reprioritizing the areas for funding and additional funding. The nearly 160% increase in defence expenditure since1999 had been assimilated smoothly and the MoD had been able to cope with the budgetary allocations it had received. The composition of the defence budget has changed and the share of defence expenditures accounted for by operating costs had fallen from 88% in 2000 to 77% in 2002. In next years this tendency is expected to continue. The recent surge in defence expenditure allowed for increasing investment on equipment.

Objective 10

To continue to pursue responsible policy in arms control and export controls

Building on the Action Plan adopted after 9/11/01, the government continues to strengthen legislation in order to prevent any terrorist related activity on the territory of Latvia. The amendments stating the financing of terrorism, terrorist groups or terrorist acts as a separate criminal offence have been prepared. The Government Regulations concerning the recognition and application of terrorist lists received from international organizations and individual states are elaborated as well. Both amendments are planned to be adopted before summer 2003.

Latvia's control system of export, import and transit of strategically significant goods fully corresponds to EU requirements and is developed in cooperation with the United States. The system is based on the guidelines of Australia Group, Nuclear Suppliers Group and Missile Technology Control Regime and plays an important role in Latvia-s overall anti-terrorism policy. Further strengthening and consolidation of legislation in this area is initiated, and a new Law on Strategic Goods is under preparation. Latvia is already a member of the Nuclear Suppliers Group and has applied for membership in Australia Group, Missile Technology Control Regime and Wassenaar Arrangement.

In the area of conventional arms control Latvia is conscious of the fact that the issue of its CFE membership will come up, as soon as ratification process of the adapted Treaty is completed. At that point Latvia will be prepared to enter consultations on conditions for membership, which will have to satisfy Latvia-s national interests - requirements for development of National Armed Forces, as well as Alliance obligations. Latvia has recently acceded to the Open Skies Treaty aimed at increased transparency and confidence and is negotiating its membership conditions. Latvia will also continue to use intensively the opportunities presented by the Vienna Document '99.

II. Defence / Military Issues

Objective 1

On legislation concerning collective defence

Latvia-s accession to the North Atlantic Treaty doesn-t require amendments to the Satversme (Constitution).

All necessary legislative changes are being made to ensure that restrictions, which could inhibit collective defence operations, are removed by the time of accession.

Objective 2

On review of national defence concept and force structure

By the end of 2003, Latvia will have reviewed its National Defence Concept and Force Structure. This review will take into account the forthcoming NATO requirements and will aim to enhance NAF deployable and sustainable force capabilities. The intent is to establish a national brigade structure, which will allow the rotational deployment of a battalion size task force.

Following the outcome of the review Latvia will continue improvement of the National Armed Forces based on the revised National Defence Concept and Force Structure plans.

By the end of 2004, Latvia will have completed the establishment of a national command structure, a Logistics Support Command, Training and Doctrine Command, and a reduction of the number of National Guard units as set in the revised force structure.

Objective 3

On forces to be contributed for NATO missions

By the end of 2004, and if identified as required through the NATO force planning process, Latvia will be prepared to commit the fully professional Motorized Infantry Battalion (LATBAT), with some Combat Support and Combat Service Support units (for brigade level formation), which could be identified separately for NATO missions, and appropriate National Support Element to the Alliance for the full range of NATO missions including the development of deployment and sustainment capabilities. Currently, the following Combat Support and Combat Service Support capabilities are planned to be developed: EOD, Military Medics, Military Police, Special Force.

By the end of 2004, and if identified as required through the NATO force planning process, Latvia will be prepared to commit Mine Countermeasures vessel for the NATO-led Crises Response Operations, including the development of deployment and sustainment capabilities.

Objective 4

On connectivity with NATINEADS

By the time of accession, Latvia will have completed the necessary measures to ensure the Baltic Air Surveillance Network (BALTNET) system connectivity with NATINEADS. These measures will include development of NATO and NATINEADS compatible Command and Control structure and training of key personnel in NATINEADS related philosophy, Concept of Operations, and Standard Operation Procedures at the BALTNET Training Centre. The Air Operation Centre (AOC) will be developed at "Rīga" International Airport in accordance with NATO security requirements. Existing National Node will be transferred to the AOC. By the end of 2004, the full security accreditation of BALTNET system will be completed. By the end of 2004, Initial Operational Capabilities of BALTNET system will be achieved by installing of long-range 3D radar (TPS-117) in Rēzekne, and a short-range 2D radar (ASR-7) in Ventspils. Communication lines from radar sites to National Node, including the installation of back-up radio relay communication lines (Link1) among 3 Baltic States will also be installed. The improvement of radar coverage will be based on the Air Defence study made by NATO Air Defence Committee Analytical Cell for Latvia.

Objective 5

On secure communications

By the end of 2004, Latvia will ensure that the following measures have been taken: establishment and accreditation of necessary facilities for secure communications, both voice and data. These facilities will be designed for high-level consultations between NATO headquarters and national authorities, depending on necessary encryption devices being made available by the Alliance. Within one calendar year, since the crypto equipment and key material will be made available by NATO, Latvia will lease the necessary communication links between NATO HQ and Latvian MoD from commercial sources and install the required equipment.

Objective 6

On Host Nation Support arrangements

By the end of 2004, Latvia will have established Host Nation Support (HNS) arrangements, in accordance with Partnership Goal G 4150, including the development of a database with points of contact and, in conjunction with the NATO Military Authorities, the identification of railheads, air ports and sea ports of debarkation, to enable the reception and onward movement of Allied reinforcing forces to conduct NATO Article 5, and non-Article 5 missions.

By July 2003, the analysis of legislation will be carried out in order to make necessary amendments to the laws and regulations governing HNS decision making, implementation, and the development of a standard MOU. By the end of 2004, Latvia will have developed HNS Capabilities Catalogue (database) as well as will have completed training of the HNS specialists.

Understanding the importance of smooth and fast decision-making procedures for transit of armed forces, Latvia has drafted the relevant amendments to the legislation. Their aim is to define the decision-making process and the procedures dealing with the transit of foreign land forces through the territory of Latvia (procedures for foreign combat ships and military aircraft are defined in the legislation already).

Objective 7

On adaptation of education and training to reflect NATO principles

By the time of accession, Latvian military education and training will reflect NATO strategy, doctrines, procedures and standards. The following measures already have been taken: military education and training concepts, system and structure are in place. Training and Doctrine Command (TRADOC) has been established, TRADOC has taken over NAF training and education installations. The remaining measures:

• Land Forces tactical doctrine (ATP-35(B)) will be fully introduced in NAF by the end of 2003 and all training will be conducted accordingly.
• By the end of 2004, will have completed standardisation of NAF individual and collective training and doctrine. NATO concepts, standards and doctrine will be gradually introduced within individual and collective training programs.
• TRADOC will complete introduction of English language testing in accordance to the STANAG 6001 by June 2003.

Objective 8

On personnel available to serve in NATO and as a liaison

By the time of accession, Latvia will ensure that 39 military and 17 civilian personnel of the MoD have been selected, rigorously screened, trained, meet NATO language proficiency levels, and are available to fill positions in NATO international / military headquarters and liaison offices in NATO headquarters. Latvia will also ensure that liaison personnel (270 military and 48 civilians of the MoD) are available in Latvia and at appropriate NATO headquarters, to ensure an efficient conduit for documents and communication between the Alliance and Latvia. These personnel will meet NATO language proficiency levels, have security clearances and appropriate professional experience, and / or have graduated from Staff Colleges, and Staff courses in Latvia and abroad, and have national security clearances.

Objective 9

On establishment of Planning, Programming and Budgeting System

In 2002 Latvia has established the Planning, Programming, and Budgeting System (PPBS), which is well integrated and reflects NATO-compatible defence planning process.

PPBS system will continue to be enhanced and incorporate new initiatives. By the end of 2004, the integrated computerised pay system will be introduced.

Conduction of the annual seminars on PPBS for planners and financial experts (both civilians and military) will be continued. By mid of 2003, the National Defence Academy will incorporate courses on PPBS in the cadet-training program.

Objective 10

On resources available for defence

According to the Law on State Defence Financing (amendments approved by Parliament in May 2002), Latvia will ensure that expenditures for defence and NATO integration remain at 2% of GDP until 2008. This will allow the continued development of the Latvian Armed Forces, including in their response to NATO Force Goals. In order to meet NATO requirements, this will permit an adequate level of capital investment for equipment and infrastructure modernisation, enhance interoperability, deployability, combat effectiveness, sustainability and survivability. Current and planned defence spending figures (1USD = 0.63 LVL until 2002, 1USD = 0.60 LVL from 2003):

1999 - 52 mil.USD.

2000 - 68 mil.USD.

2001 - 87 mil.USD.

2002 -144 mil.USD.

2003 -185 mil.USD (projected*).

2004 -201 mil.USD (projected*).

2005 -219 mil.USD (projected*).

2006 -239 mil.USD (projected*).

2007 -260 mil.USD (projected*).

2008 -269 mil.USD (projected*).

* Based on GDP growth projection data of the Ministry of Finance (27.01.2003)

Objective 11

On language proficiency

By the time of accession, in accordance with Partnership Goal G 0355, Latvia will ensure that a total of 856 military personnel designated for positions dealing with NATO issues on a regular basis, and in command or staff positions in deployable units, will meet NATO standards for language training.

By the time of accession, Latvia will ensure that 60 civilian personnel of the MoD have reached sufficient level of English proficiency (STANG 6001 level 3) to deal with NATO issues, documentation and communication between the Alliance and Latvia.

Objective 12

On personnel practices comparable with Allied countries

By the end of 2003, Latvia will have established transparent and effective personnel practices that are comparable with the best practice in Allied countries, which will include the following:

• Establish transparent military career planning system that enables effective planning.
• Improve officer, warrant officer and non-commissioned officer evaluation, selection and career planning system.
• Develop automated system for personnel registration and administration.

Objective 13

On continued Baltic States military co-operation

Latvia will support the efforts of the Baltic States to harmonise national approaches through multinational efforts. Baltic States have benefited significantly from trilateral military co-operation projects in building up our national defence forces and preparing for NATO membership. The military expertise gained, administrative skills raised and capabilities acquired through this co-operation are highly valued by Latvia. This provides an excellent foundation for continuation of this co-operation also as a member of the Alliance.

When applicable, Latvia will co-operate with Baltic countries and other countries in development, preparation, deployment and sustainability of the units and capabilities identified to support the full range of Alliance missions.

III. Resources

Objective 1

By the time of accession, Latvia will have adapted national procurement rules to allow the conduct of National Competitive Bidding and International Competitive Bidding procedures for NATO Security Investment Programme (NSIP) projects in line with NATO procedures.

Objective 2

Latvia-s national budget regulations are appropriate to provide for the payment of contributions to NATO common-funded programmes and budgets.

By the time of accession, Latvia will make necessary changes in appropriate regulations to provide for the operation and maintenance of NSIP accounts.

Objective 3

Latvia will adapt national tax regulations to facilitate NATO-s tax exempt functioning.

By October 2004, Saeima (Parliament) will approve the three basic documents containing tax provisions:

• The Agreement Between the Parties to the North Atlantic Treaty Regarding the Status of their Forces (London, June 19,1951);
• The Protocol on the Status of International Military Headquarters Set Up Pursuant to the North Atlantic Treaty (Paris, August 28, 1952);
• The Agreement On the Status of the North Atlantic Treaty Organisation, National Representatives and International Staff (Ottawa, September 20,1951).

Thus, the national tax regulations will be adapted by the date of approval, and implemented accordingly.

Objective 4

By the time of accession, Latvia will set-up a national NSIP office and will provide necessary manpower and facilities. National NSIP office will:

• Interface with NATO Commands, the International Staff and NATO Committees on NSIP projects.
• Be responsible for the preparation of Capability Packages and project submissions.
• Be responsible for project follow-up and NSIP accounting.

V. Legal Issues

Objective 1

Latvia will accede to the London SOFA and Paris Protocol once Latvia becomes member of the Alliance, in casu after the deposit of its Instrument of Accession, and upon invitation by the NAC.

After invitation to accede to the Treaty (approximately in March of 2004) Latvia will accept the North Atlantic Treaty in the Cabinet of Ministers in March - April of 2004 and ratify it in Saeima (the Parliament) in April - May of 2004.

Latvia will accede to the London SOFA and Paris Protocol according to the following time schedule:

Objective 2

Within six months, Latvia will approve / accede / ratify all the other NATO agreements, for which no invitation is needed according to the following time schedule: