Mr Martti Ahtisaari at the Trade Seminar in Vilnius,

17 January 1996

I visited Vilnius in the spring of 1992 and stayed at this very hotel. The situation then is still fresh in my memory - the independence of Lithuania had been restored and had received international recognition. Times were turbulent, but Lithuania was determinedly creating new social structures and looking for its place in the international community. Foreign contacts were few and, as far as I can remember, I did not meet a single Finnish businessman at this hotel while I stayed here.

Now nearly four years later, I have the pleasure to be in Vilnius again, this time as the President of Finland. I have noted the scale of the change that has taken place. Democracy has been established in Lithuania and the country has become a full member of the international community. Furthermore, the regional frame of reference has changed. Finland and Sweden are now members of the European Union, which has thereby reached the borders of the Baltic States. The Baltic States have already applied for membership of the Union and are working to achieve eligibility to join.

We have consistently supported the integration aspirations of Lithuania and the other Baltic States. Means of developing economic cooperation have been outlined during this seminar. This bilateral cooperation together with the various programmes of the European Union and international organisations and institutes in the domains where also Finland is active, is likewise intended to promote Lithuania's participation in pan-european economic and political cooperation. You are not here only to promote your own business in Lithuania - You are also building a bridge between Lithuania and Finland, and one across to Europe as well.

Finland's trade with Lithuania continued to increase last year, although the rate of growth was not quite the same as in 1994. Trade between the EU and Lithuania is regulated by a free-trade agreement. With Lithuania making progress in removing obstacles to trade, greater opportunities for enhanced flows are being created.

There is unused potential in the field of trade and economic cooperation. It is now our task to call forth new possibilities and remove the existing hindrances. We in Finland have experience in the basic sector of our economy, i.e. in forestry, which I believe is of great interest to you Lithuanians. Our metal and engineering industry can offer opportunities for collaboration in energy, environmental technology and transport, and indeed has already done so. You are already familiar with Finnish telecommunications technology. The building industry is another area where a great deal has been accomplished. On the whole, there is plenty of potential for cooperation.

Since familiarising myself with the activities of Finnish companies here, I have become convinced of their serious and long-term efforts. There are, naturally, differences between our trade cultures. Therefore, only by taking a closer, thorough view of the other party and knowing their experience and line of action can a basis for successful cooperation be created. In this sense I must stress the importance of training, which is already taking place, for example within the framework of Finland's assistance programmes and also in private companies.

Over a hundred companies are participating in the work of Finland's and Lithuania's trade association in Finland. This, together with nearly 40 Finnish companies working here, the missions and offices established here and the Finnish Trade Guild , are proof of the significant results that cooperation has achieved. However, that cooperation is not always without problems. I know that people here are worried that the advanced technology and modern working and production methods offered by the Finns may result in the loss of jobs. On the other hand, it must be emphasized that making better use of resources increases production and creates new jobs. Moreover, the Finnish companies are ready to offer employment. You have skilled labour and we are interested in using it.

I mentioned the long-term plans of our companies. Consequently, we need the ability to think ahead and certainty about future development. If a company's economic activity is based on a certain tax rate or certain payments, it would be most desirable that regulations would not be changed without consideration being given to the effects that this would have. Predictability ensures reliability, and increases opportunities for long-term activities.

Mutual, fast and efficient exchanges of information concerning existing possibilities, companies' hopes and efforts is essential. Competition in business is hard and progress can be made only through active, even aggressive communication. I know that many information centres have been created in different parts of Lithuania. Progress has been made on the level of companies, but greater efforts should be made on the state level. Information on the development of your privatization process, among other matters, is essential for companies involved in cooperation. In Finland, we understand the difficulties caused by the transition that Lithuania is still going through. However, we would still like to emphasize the importance of stable and predictable circumstances. I understand that Finnish businessmen have had no complaints in this regard. I believe that this situation will continue and further improve. When Lithuania develops its administrative systems, any complexity and bureaucracy that may exist will be diminished.

I have outlined the potential inherent in our economic collaboration and touched on some obstacles in its road. Nevertheless, the framework for cooperation has been put in place. - In this connection, I would still like to mention the 50-million-Finnmark structural adjustment credit granted by the Finnish Government. Now it is your task, distinguished Lithuanian and Finnish representatives of the business world, to continue the work in practice. I wish you every success in this work for the benefit of relations between Finland and Lithuania and for the benefit of the European cooperation.