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Dear colleagues,
 It is my pleasure to congratulate my German colleague once again for a very efficient and constructive chairmanship of the Council of the Baltic Sea States. The German chairmanship has been marked by a strong emphasis on the complementarity of the EU and CBSS processes as well as the mobilisation of regional expertise for outlining the priorities for further positive and rapid development. The framework of the CBSS has once again demonstrated its value for the constructive dialogue and action in our region. Though the decisions of our forum are not legally binding, we willingly engage in the endeavours aimed at stability and prosperity of our region. I find it important that our states, diverse as they are, share the understanding of what is our common interest.From the diversity of our region let me move on to the subject of cross border co-operation. This kind of co-operation is relatively new to a number of states in the Baltic Sea region, but it is exactly what we need for a wider dialogue and interaction of our communities, as well as for smoother development in the changing environment. Cross-border cooperation has a particular value for filling-in the gaps between the communities at different stages of economic, cultural and historic development and thus contributing to the overall integration of the region. Lithuania signed its first cross-border cooperation agreements only seven years ago, but since, we managed to build the legal prerequisites and institutional basis opening vast possibilities for cross- border activities. The Baltic Sea Electricity Ring, Baltic Gas, Rail Baltica, ViaBaltica, ViaHanseatica, Nida initiative, Nida2, the setting up of the Euroregions "Nemunas", "Baltija", and "Saulė", trilateral Polish-Russian-Lithuanian projects, a long list of less known but no less important cross border projects illustrates that our communities willingly engage in an active process of shaping the future of the region. What we need today, however, is not quantity. Today we need to concentrate on the implementation of the projects, the quality of such co-operation, and a wider dialogue between governments and local actors.Everyone in this room is aware of the importance of the financial resources for the implementation of the endeavours that we undertake. Often, however, the budgets of local authorities and municipalities can offer but limited funds for cross border co-operation. Of course, with the expected economic growth in the region, the budgets available for cross border co-operation projects will grow. But even today, with the limited funds, more can be done in this field.Let us take the experience and the know-how of practical co-operation. The knowledge gained from our experienced Nordic colleagues shows that certain specific aspects of cross border co-operation can only be dealt with when the political willingness and dialogue among all interested parties are engaged. In this respect, I would like to mention the conference "Sharing experience in regional cross border co-operation" recently held in Birštonas by the Nordic Council of Ministers. European integration processes in the Baltic Sea region call for major attention to Euroregions where states not aspiring for EU membership are involved. I think that it is high time for us to look into the positive solutions for such co-operation models. During the chairmanship of the Council of Europe, Lithuania intends to initiate a dialogue between the CBSS and Council of Europe bodies on the impact of European integration on the cross border co-operation with the states outside the EU. The second issue we should look into is the interoperability of the available financial instruments. Though the European Commission has done significant work on this matter, there is room for further improvement. At this point, I would like to mention the initiative of the Baltic States and Poland on the preparation of a joint programming document on cross border co-operation (CBC), aimed at a better use of existing financial resources. I call upon the European Commission to support the use of grant schemes, which would provide us with an effective instrument for the implementation of cross border projects. I hope that the Agreement on the Establishment of the Fund for Sub-regional Development in the Baltic Sea States will also contribute to further developing the cross border bonds that have been created between our states. The third issue I would like to draw your attention to is the cross-border movement of people and related visa issues. As pointed out during the meeting of the Presidents of the Russian Federation and the Republic of Lithuania, our two states will work on developing positive solutions regarding the cross-border movement of people, in accordance with the international commitments. This is exactly the way we should proceed. There is no reason to talk of "emerging barriers". We should not be focusing on the issue of introducing visas; instead, we should be working on facilitating the practice of the issue of visas. Lithuania is planning to introduce visa regime for the residents of the Kaliningrad region as late as July, 2003. This means we still have plenty of time for intensive dialogue, in order to ensure the travel of people across the border. I would like to invite my Russian colleague to look into the matter of improving the border crossing capacities as well as the issuing of adequate travel documents to the residents of the Kaliningrad region of the Russian Federation. Such measures would considerably improve their travel conditions.Today the chairmanship of the Council of the Baltic Sea States will be passed on to the Russian Federation and I find it important that Russia should be chairing our forum on its 10th anniversary. Obviously, we are looking forward to the period of celebration and as well as hard work, in line with the ambitious plans of our organisation. I wish best success to my Russian colleague!