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The chairmanship of the CBSS is a very important task for Lithuania. Good relations with neighbours, political stability, and democratic, economic and social development of the Baltic Sea region have always been and are among the top priorities of Lithuanian foreign policy. In this context we perceive the CBSS as a unique regional forum, which has an important political-symbolic value and impressive potential of practical action.

Baltic Summits in Visby and Riga, CBSS Action programmes for Baltic Sea States co-operation, decisions by the CBSS Ministerial sessions, including the present one here in Nyborg, have formulated the main tasks and set strategic directions for the CBSS. So it is natural that the Lithuanian Presidency's efforts will aim at continuing CBSS actions in priority areas, such as democracy and human rights, economic integration, civic security, education and social affairs, environment and nuclear safety.

European integration is an omnipresent feature of the Baltic Sea region. Economic, political and social reforms in the countries acceding the EU and Russia, who is implementing the Partnership and Co-operation Agreement, provide a favourable environment for further co-operation within the framework of the CBSS. We welcome the process of rapprochement of the Baltic Sea region and the European Union, which has a positive impact on co-operation between all the countries in the region, including the members of the EEA.

In this context it is important to further the Northern Dimension initiative of the European Union, especially in areas where EU and CBSS activities are complimentary – environment, trade, transport and energy.

We welcome the active participation of the Russian Federation in the CBSS and would like to encourage ever stronger practical co-operation with St. Petersburg, Leningrad and Kaliningrad regions within the CBSS framework, also through the implementation of Euroregion projects. I am looking forward to visiting St. Petersburg and Kaliningrad in my new capacity of CBSS Chairman.

Issues of democratic participation, independent and pluralistic media, and finding ways of solving problems related to border crossing are important for the stable development of the Baltic Sea region. In this respect I would like to highlight the incoming Presidency's willingness to closely co-operate with the CBSS Commissioner on Democratic Institutions and Human Rights as well as other relevant bodies of the CBSS on questions of implementation of projects in this priority area of Council activities.

The Lithuanian Presidency invites all CBSS members to give special effort to development of the Council's potential of practical action. In this context the CBSS Presidency's priority attention will be given to:

Regional economic co-operation, especially in the fields of investment promotion and small and medium-sized enterprises. We expect that CBSS countries' trade ministers recommendations adopted in their forthcoming conference in Vilnius on 9-10 July 1998 will help in removing administrative barriers to trade and investments and in creation of a favourable climate for SME in the region.

Transport and energy infrastructure development will also continue to be in the focus of the CBSS attention. The energy ministers conference in Oslo (December 1998) on sustainable energy supply, integration of energy markets and networking in the Baltic region will be a major event in this field.

Regional co-operation in the area of Home and Justice Affairs and Civic Security will remain high on the CBSS priority action list. Special emphasis should be put on efforts aimed at creating the network of agreements on readmission between the countries in the region, combating illegal migration, organised crime, and human and drug trafficking. It is important to assure continuity for the pragmatic, efficient approach and action in this area demonstrated by the Task Force on combating organised crime.

CBSS activities in the field of environment will be based on Agenda 21, adopted and endorsed by this Council, with special emphasis attributed to its action programme and implementation process in seven priority sectors: Agriculture, Energy, Fishery, Forestry, Industry, Tourism and Transport.

The Lithuanian Chairmanship in the CBSS will continue to support efforts by the Baltic Sea States Sub-regional Co-operation, Union of Baltic Cities and other relevant structures to further sub-regional and cross-border co-operation. It is of vital importance to assure continuous EU involvement in subregional co-operation, in particular through the co-financing facilities. The BSSSC and UBC should continue the engagement of their participants in the EU pre-accession process. Sub-regional co-operation issues will be discussed in Klaipëda, where a conference on "Transborder co-operation around the Baltic Sea: realities and perspectives" (October 1998) will be convened with close participation of the Council of Europe. Another major event in this sphere will be the Third Baltic Regional Conference, which Lithuania and the Council of Europe will host in Kaunas (April 1999), and where issues related to the functioning of local authorities will be discussed.

The Presidency, and, as appropriate, the CBSS Troika, would develop contacts with the Parliamentary Conference on Co-operation in the Baltic Sea Area, other inter-parliamentary bodies, as well as national parliaments. In this context it is important to note the forthcoming international conference in Kaliningrad (October 16-17,1998) "Kaliningrad Region of the Russian Federation - perspectives for regional co-operation", a joint initiative by Russian, Polish and Lithuanian parliamentarians, to which representatives of all CBSS countries will be invited.

As agreed today by the CBSS ministers, relations with third countries will remain on the agenda of the CSO during the Lithuanian Presidency. We feel that deliberations on this important issue should be continued on the basis of "Terms of Reference for the Council of the Baltic Sea States" (Copenhagen,1992), as well as more recent arrangements agreed by the Committee of Senior Officials, which permit differentiation without discrimination in the treatment of third countries sharing the same values as present CBSS members.

In our view, the institutional strengthening of the CBSS should continue to be pragmatic. We welcome the Council's decision to establish a permanent secretariat of the CBSS and reiterate our interest in its practical assistance to CBSS activities, in particular in the field of information strategy. Allow me to take this opportunity to congratulate Mr. Jacek Starosciak on his appointment as Head of the CBSS permanent international Secretariat.

The incoming Presidency will seek close co-operation with the CBSS Working Groups and will support and develop CBSS relations with other regional bodies and organisations.