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Memorandum of Understanding between the Ministry of Defence of the Republic of Latvia as represented by the Minister of Defence of the Republic of Latvia, the Minister of Defence of the Republic of Estonia, the Minister of National Defence of the Republic of Lithuania, the Minister of Defence of the Kingdom of Denmark, the Minister of Defence of the Republic of Finland, the Minister of Defence of the Kingdom of the Netherlands, the Minister of Defence of the Kingdom of Norway, the Government of Kingdom of Sweden, and the Secretary of State for Defence of the United Kingdom of Great Britain and Northern Ireland concerning Co-operation on the Further

Development of BALTBAT as a Multinational Unit, and the Transfer of Management of the Project to the Baltic States

Section 1

Introduction

1.1 The Ministry of Defence of the Republic of Latvia as represented by the Minister of Defence of the Republic of Latvia, The Minister of Defence of the Republic of Estonia and The Minister of National Defence of the Republic of Lithuania (hereinafter referred to as the "Baltic Participants"), The Minister of Defence of the Kingdom of Denmark1, The Minister of Defence of the Republic of Finland, The Minister of Defence of the Kingdom of the Netherlands, The Minister of Defence of the Kingdom of Norway, The Government of the Kingdom of Sweden, and the Secretary of State for Defence of the United Kingdom of Great Britain and Northern Ireland (hereinafter referred to as the "Supporting Participants"):

pursuant to the Memorandum of Understanding concerning co-operation on the development of the Baltic Battalion (hereinafter referred to as BALTBAT) into an infantry battalion (February 2000), and the Memorandum of Understanding on the formation of the Baltic Peacekeeping Battalion (11 September 1994), and

in recognition of the progress made during the first two phases of the BALTBAT project and the proposals concerning the multilateral part of the project set out in the Baltic Participants' report "The Baltic Battalion - Status and Future Development" and the report from the BALTBAT Military Working Group "Continuation of the BALTBAT Project" (July 2000), and

considering that the support to BALTBAT is taking place in the spirit of the Partnership for Peace, and

referring to the Agreement among the States Parties to the North Atlantic Treaty and the other States participating in the Partnership for Peace regarding the status of their forces and the Additional Protocol thereto done in Brussels on 19 June 1995, and

acknowledging the prospects for assistance from other states,

have concluded the following Memorandum of Understanding.

Section 2

Purpose

2.1 This Memorandum of Understanding establishes the co-operative framework for the further development of BALTBAT as a multinational unit. It also establishes the co-operative framework to support the transfer of management of the project to the Baltic Participants.

2.2 In accordance with the report "The Baltic Battalion - Status and Future Development", this phase of the BALTBAT project is intended to provide the Baltic Participants with a training structure with common training standards and a permanent planning capacity, to develop BALTBAT as a multinational unit, and to give the Baltic Participants the best possible starting point for taking over the future project management at the end of the period of the Memorandum of Understanding.

2.3 The bilaterally supported projects, organized outside this Memorandum of Understanding, for the development of the three national battalions are recognized as being of key importance to the full sustainability of BALTBAT, and its linkage to the national armed forces of the Baltic Participants

Section 3

Outline of Support

3.1 This multinational program of practical assistance will be carried out in accordance with the Project Plan, an outline of which is at Annex A. Participants' contributions under this plan will be made within the limits of their national legislation and according to their own resources and budgetary procedures.

3.2 Given the purpose of this phase of the BALTBAT project, the main focus of the multinational program of practical assistance will inter alia be to:

a. Support the BALTBAT Headquarters and Baltic Support Group, through the BALTBAT Training Team (BTT). The Terms of Reference and the Manning Plan for the BTT are at Appendix 2 to Annex A. From July 2001, the Baltic Participants will provide suitable personnel to work in tandem with the BTT, with a view to being trained in the functions of the BTT, in preparation for transfer of the project to the Baltic Participants.

b. Assist in the further development of BALTBAT to provide a multinational framework for maintaining training standards and interoperability, in accordance with such standards as set out through the PfP Planning and Review Process (PARP), drawing its manpower from the national battalions.

c. Help to enhance the Baltic Participants' ability to contribute to NATO-led operations by providing a pool of trained personnel from which to draw, after training has been completed at the end of 2002.

d. Anchor the BALTBAT in the national structures of the Baltic Participants. Promote coherence and co-ordination with the bilaterally supported National Battalions. Facilitate interoperability and commonality for both national defence and international deployments.

e. Support BALTBAT training exercises, including post exercise evaluation.

f. Assist in the transfer of responsibility for management of the multinationaly assisted elements of the BALTBAT project, to the Baltic Participants, with a view to achieving full management within the lifetime of this Memorandum of Understanding.

3.3 The multinational programme of assistance is intended to assist in the development of the BALTBAT project, as defined above, towards the said objective over a maximum period of 2 years. The assistance will be co-ordinated by the Military Working Group, and the programme will be issued by the Military Working Group, through the Steering Group, on a regular basis, as appropriate.

Section 4

Management

4.1 The Participants will continue the Steering Group and Military Working Group, established under the provisions of the Memorandum of Understanding on the formation of the Baltic Peacekeeping Battalion signed on 11 September 1994. The Steering Group will remain under Danish chairmanship until the end of the MOU period, but chairmanship of the Military Working Group will be transferred to the Chairman of the Military Co-ordination Group by the end of 2001.

4.2 The tasks of the Steering Group remain to facilitate effective co-ordination and to avoid unnecessary duplication of effort and resources. The Steering Group will continue its responsibilities for overall control and direction of the multinational programme of assistance.

4.3 The Military Working Group will continue to be responsible for co-ordinating and developing detailed aspects of the multinational programme of practical assistance to BALTBAT and for implementing approved plans, with a view to transferring responsibility for the project to the Baltic Participants (in the following referred to as "baltification") at the end of 2002. The Military Working Group will also be responsible for evaluating the operational standards of BALTBAT and the Baltic Support Group during the Field Training Exercises in 2001 and 2001.

4.4 Additionally, the Steering Group and the Military Working Group will seek to ensure a dialogue on, and practical application of, connectivity between the multinational programme of practical assistance and the bilaterally supported projects to develop the national battalions.

4.5 During the period of this Memorandum of Understanding, no deployment of BALTBAT, in whole or in part, will take place, which will affect adversely the activities covered by this Memorandum of Understanding. The Baltic Participants will inform the Military Working Group, well in advance, of any proposed deployments of BALTBAT personnel.

4.6 At the end of the period of this Memorandum of Understanding, the complete management of the BALTBAT project will be handed over to the Baltic Participants. At that time, the Steering Group and the Military Working Group will cease to operate.

Section 5

Duration and Evaluation

5.1 This Memorandum of Understanding, and the multinational programme of practical assistance described therein, will expire no later than by the end of 2002.

5.2 By the end of 2001, a mid term review will be conducted under the auspices of the BALTBAT Steering Group. This Review process will address, in particular, the extent to which the intended baltification process of BALTBAT has proceeded. The outcome of the Review will be evaluated by the Steering Group, and form the basis for further work, in accordance with this Memorandum of Understanding, to continue the transfer of responsibility of management of BALTBAT to the Baltic Participants.

5.3 By the end of 2002, a full evaluation of the BALTBAT project will be carried out under the auspices of the BALTBAT Steering Group.

Section 6

Language

English will remain the working language of the BALTBAT project.

Section 7

Status of Personnel

7.1 In connection with activities conducted in the territory of any of the Participants pursuant to this Memorandum of Understanding, the status of forces of any other Participant will be governed by the Agreement among the States Parties to the North Atlantic Treaty and other States participating in the Partnership for Peace regarding the status of their forces and the Additional Protocol thereto, done in Brussels on 19 June 1995 (PfP-SOFA), in accordance with which, except as otherwise provided in the PfP-SOFA and any additional protocol and with regard to reservations made by parties to those agreements in respect to its own parties, all states parties to the PfP-SOFA shall apply the provisions of the Agreement between Parties to the North Atlantic Treaty regarding the status of their forces, done at London on 19 June, 1951 (NATO-SOFA), as if all states parties to the PfP-SOFA were parties to the NATO-SOFA.

7.2 It is the duty of the sending Participant, in accordance with established diplomatic procedures, to apply for any military diplomatic clearance necessary for the personnel of that Participant. The receiving Participant will assist the sending Participant in this matter.

7.3 For the purposes of paragraph 2.f. of Article VIII of the NATO-SOFA, claims are waived in such cases where the damage is less than 15000 EEK/ 700 LVL/ 2900 LTL.

7.4 Overflying rights and airfield facilities for aircraft for military use will be afforded to the Participants and their personnel when operating in support of activities under this Memorandum of Understanding. Arrangements will be made for aircraft - while performing activities related to this Memorandum of Understanding - to be excused from the payment of landing and other related fees. Rescue helicopters and airplanes will - in emergency situations, and on a case by case basis - be granted permission to cross the territory of a Participant and land (where authorized) in order to evacuate personnel on duty in activities related to this Memorandum of Understanding.

7.5 Delivery of equipment, related to the BALTBAT project, to the point of entry in the territory of a Baltic Participant will be accomplished without incurring overflying, landing or arrival fees.

7.6 Donations related to activities under this Memorandum of Understanding are exempted from any taxation by the Baltic Participants.

Section 8

Participants' Benefits and Responsibilities

8.1 The Baltic Participants will be responsible for the recruitment, retention and payment (including salaries, allowances, insurances and travel costs) of their personnel, respectively, and for providing Host Nation Support (HNS), in accordance with the Project Plan and as outlined below.

8.2 The support to be rendered between the Baltic Participants as HNS, is laid down in arrangements concluded between the Baltic Participants.

8.3 Personnel

i. The Baltic Participants will make available suitably qualified personnel to undergo training in accordance with the Project Plan.

ii. The number of personnel, requirements for pre-training, special skills and other preconditions, will be determined between the Baltic Participants and the BTT prior to the specific training.

8.4 Repatriation

i. The respective authorities of Participants retain the right to repatriate or withdraw their personnel from any stage of the training.

ii. When conducting training in the countries of the Baltic Participants, an instructor from a Supporting Participant can recommend to the relevant Baltic Participant, that personnel found unsuitable for training are withdrawn from the training. The employing Baltic Participant will give sympathetic consideration to such recommendations.

iii. Any Participant receiving personnel within their territory retain the right to request removal of any member of the visiting personnel as laid down in NATO-SOFA.

iv. In circumstances where a Baltic Participant wishes to withdraw one of its personnel from the programme, or where one of its personnel is found unsuitable for the programme, a replacement will be provided by that Baltic Participant, and trained if necessary, at the expense of the sending Baltic Participant, to an appropriate standard in English and in military skills, as quickly as possible.

8.5 Equipment and Host Nation Support

i. The Baltic Participants will equip their personnel with uniforms, personal equipment and other items set out in accordance with the Table of Equipment adopted for BALTBAT and for the national contingents. If special requirements are necessary to fulfil the training or instructions, the requirement to equip will be determined between the Participants involved, or adopted in the Project Plan.

ii. Infrastructure and HNS will be provided to support the training at each National Training Center during the relevant period. The requirement will be based on the number of personnel expected to undergo training as per the Project Plan, and the specific requirements (number of stores, classrooms, offices, and the necessary inventory, gyms and welfare facilities, maps, ranges and training support) should be decided by the Military Working Group, in consultation with the BTT, in respect of multinational activities and activities related to BALTBAT Headquarters, and between the Baltic Participants and the respective Co-ordinating Nations, in order to tailor the HNS to approved activities.

iii. Advisors and instructors from the Supporting Participants, allocated to any of the Baltic Participants independently of the BTT, will be offered accommodation, office facilities and services equivalent to those offered to members of the BTT.

8.6 Support to the BTT

i. The Baltic Participants are responsible for making accommodation available to members of the BTT, and instructors or advisors assisting the BTT (in the following referred to as 'instructors') when stationed in or when visiting the countries of the Baltic Participants. Such accommodation will be provided free of charge.

ii. The instructors' accommodation requirements are to be based on the personnel numbers to be determined by the Military Working Group in consultation with the BTT and as consented by the Host Nation. The accommodation is to meet the following standard: Sufficient self-contained, furnished, two- or three-bedroom flats (one bedroom per instructor). These are to be clean and hygienic, with hot and cold running water, heating and electricity. The flats should be located as closely as possible to the normal working place of the instructors, with instructors who serve together being housed as close as possible to each other. An international pay phone for the sole use of the instructors will be provided.

iii The Baltic Participants will provide offices for the instructors. The number of offices, location and the period during which the offices are required will be determined by the Military Working Group, in consultation with the BTT and as consented by the Host Nation. Offices will be in condition suitable for work, and have electricity, heating and lighting, and access to international telephone lines and faxes, for official use only, will be provided. The host country will meet the telecommunications costs.

iv. Instructors are to be granted access to suitable feeding and canteen facilities.

v. The Baltic Participants will, upon co-ordination in the Military Working Group, make available sufficient transport for instructors to meet the requirements at any given time, including sufficient repair and maintenance, petrol, diesel oils, lubricants and anti-freeze for all vehicles. This will also apply to vehicles owned by another Participant and used by the instructors.

vi. In order to optimize co-ordination, the Baltic Participants will appoint one liaison officer per National Training Center; and interpreters, as necessary, to meet the requirements at any given time.

vii. Medical support is rendered in accordance with NATO-SOFA. The Participant sending instructors may, if it wishes, use its own doctors/medical facilities.

Section 9

Command and Control

9.1 The command and control during the training remains with the authorities of the Participant who employs the personnel. The relationship between the Participants will be co-operation.

9.2 When conducting activities, including training outside its own territory, each Baltic Participant will appoint and instruct a Senior National representative among its personnel. The Hosting Participant will be informed accordingly.

Section 10

Security

10.1 Classified information will be transferred only through Government-to-Government channels or through channels approved by the designated security authorities of the Participants concerned. Such information will bear the level of classification and denote the country of origin. Except as otherwise stated, all classified information exchanged or generated in connection with this Memorandum of Understanding will be used, transmitted, stored, handled and safeguarded in accordance with all relevant Security Agreements and applicable national security laws and regulations of the receiving State.

10.2 Each Participant will take all lawful steps available to it to ensure that information provided or generated pursuant to this Memorandum of Understanding is protected from further disclosure, except as provided below, unless the other Participants concerned consent to such disclosure. The Participants will investigate all cases in which it is known or suspected that classified information provided or generated pursuant to this Memorandum of Understanding has been lost or disclosed to unauthorized persons. Each Participant will also promptly and fully inform the other Participant(s) concerned of the details of the investigation and of the corrective action taken to preclude recurrences.

10.3. Consistent with national laws and regulations, Participants will not release classified information to any third party - either directly or under freedom of information provisions - without prior consultation with the originating Participant and any other Participant(s) concerned.

Section 11

Final Provisions

11.1 Participants may withdraw from this Memorandum of Understanding by giving three months written notification to the other Participants. All classified information exchanged or generated under the Memorandum of Understanding will continue to be protected in the event of withdrawal by any Participant or upon termination of the Memorandum of Understanding.

11.2 This Memorandum of Understanding may be amended at any time, in writing, by the mutual consent of the Participants. Once it has come into effect, this Memorandum of Understanding will be open to accession by third parties subject to the approval of the Participants and to such conditions as they may decide.

11.3 It is recognized that the Project Plan at Annex A is a living document and, although it is an integral part of the Memorandum of Understanding, it can be amended with the approval of the BALTBAT Steering Group without necessitating formal amendment to the main body of the Memorandum of Understanding.

11.4 This Memorandum of Understanding is not intended to supersede national law or international obligations by which the Participants are bound. In case of contradiction, national law and international obligations will prevail.

11.5 Any dispute concerning the interpretation or application of this Memorandum of Understanding will be resolved by consultation between the Participants without recourse to any outside jurisdiction.

11.6 This Memorandum of Understanding becomes effective on the date of the last signature and will remain effective until completion of the Project Plan or until 31 December 2002, whichever is the earlier.

Signed in one copy in the English language and deposited in the Ministry of Defence of the Kingdom of Denmark which will provide certified copies to each Participant.

Minister of Defence Minister of Defence

of the Republic of Latvia of the Republic of Estonia

Date: May 31, 2001 Date: June 18, 2001

Minister of National Defence Minister of Defence

of the Republic of Lithuania of the Republic of Finland

Date: May 29, 2001 Date: July 2, 2001

Minister of Defence Minister of Defence

of the Kingdom of Norway of the Kingdom of Netherlands

Date: September 30, 2001 Date: August 31, 2001

On behalf the Government Secretary of State for Defence

of the Kingdom of Sweden of the United Kingdom

Date: October 18, 2001 of Great Britain and Northern Ireland

Date: November 15, 2001

For the Ministry of Defence

of the Kingdom of Denmark

Date: May 25, 2001

ANNEX A

to the Memorandum of Understanding concerning co-operation on the further

development of BALTBAT as a multinational unit, and the preparations for transfer of management of the project to the Baltic States

Project Plan

Appendix:

1. Project Plan for Continuation of the BALTBAT Project 2001 and 2002.

2. Terms of Reference and Manning Plan for BTT.

Appendix 1 to BALTBAT Project Plan

Introduction

1. The purpose of this Project Plan is to co-ordinate the support to the implementation of the BALTBAT development plan and the associated national implementation plans in 2001 and 2002. The multinational programme for practical assistance is designed to establish mechanisms by which the Baltic states are given the best possible starting point for taking over the full responsibility in order to fulfill the objectives set out in the BALTBAT development plan by the end of 2005. The Baltic states must, not later than the summer of 2002, decide upon the structure of the continuation of the project after 2002.

General Plan

2. The support to HQ/BALTBAT and BSG will be provided in accordance with attached Project Plan (appendix 1). The Project Plan is a living document, which will be amended as required in accordance with evaluations of the BALTBAT project. The first revision of the Project Plan is foreseen in the autumn of 2001 based upon the evaluation during FTX AMBER HOPE in Lithuania.

3. The assistance to HQ/BALTBAT and BSG will be provided with the attached terms of reference and manning plan for BALTBAT Training TEAM (BTT) (appendix 2).

4. The evaluation will be carried out by BALTBAT MWG (chairman will be handed over to chairman BMCG by the end of 2001) during FTX AMBER HOPE in Lithuania in September 2001 and during the planned BALTBAT FTX in Estonia in October 2002. The evaluation will focus on the operational standards of BALTBAT and BSG. In addition, based on the planned training activities, BTT will evaluate the operational capability of HQ/BALTBAT and BSG on a regular basis and report to BALTBAT MWG.

5. The logistics concept will be revised in accordance with the new structure of BALTBAT and the establishment of three national infantry battalions. The revised concept is expected to be ready for approval by BALTBAT SG in April 2001. The document concerning logistics structure and procedure will be revised in accordance with the revised logistics concept during the second quarter of 2001.This document should be approved and signed by the Baltic military committee (CHODs) by 01 July 2001.

Training Activities

6. The objective of training activities is to enhance the operational capabilities in different kind of operations for HQ/BALTBAT, the units of BALTBAT and BSG. Furthermore to train all ranks to a higher standards for a later integration into the national Defence structures. Finally to enhance the BALTBAT staff and BSG knowledge of deployment to a mission area and service in an international environment.

7. The training activities in 2001 have been planned in details. The detailed planning for 2002 will be carried out in the autumn of 2001. It is envisaged that training plan for 2002 will be an adjusted copy of the plan for 2001 based upon the evaluation and result of FTX AMBER HOPE.

Baltification

8. It is a clear objective to ensure a hand over of responsibility to the Baltic States of all aspects of the project before the end of 2002 when the multinational part of the project ends. This includes complete hand over of the responsibility for the management, organization, training and support for the project. A phased and smooth baltification will ensure that the Baltic States gain an optimal starting point for implementation of the BATBAT Development Plan.

9. The BMCG will have a key role in the future of the project not only in following the project but also in developing and taking the project further. It is also if immense importance to appoint appropriate members to the BMCG, especially the Chairman.

10. It is assumed that the BALTBAT SG evaluates the baltification process by the end of 2001 based upon the reporting from BALTBAT MWG.

Appendix 2 to BALTBAT Project Plan

Terms of Reference and Manning Plan

for BALTBAT Training Team in 2001 and 2002

Terms of reference:

BALTBAT Training Team (BTT) will train, advise and evaluate BALTBAT staff and BSG according to the BALTBAT Project Plan on the basis of the international MOU for support to the project. In addition, and in consultation with the lead support nation and the Baltic state concerned, BTT will be able to provide common training and advice for the national Baltic battalions as required in 2001 and 2002. BTT will be permanently manned in accordance with the manning plan mentioned below. On request BTT could be supplemented with short term training teams as required in order to cover specific training needs. BTT refers to BALTBAT BWG.

Manning Plan:

	Position	Rank	Nationality	Remarks
OC/BTT	LTCOL	SWE
2IC/BTT	LTCOL/MAJ	DEN
Ops/Trg Off 1	MAJ	NOR
Ops/Trg Off 2	MAJ	FIN
Ops/Log Off	MAJ	DEN
BSG Advisor	LTCOL/MAJ	SWE	Part time
Admin NCO/Clerk	NCO	Baltic States

Note:

1) the service period for the individual member of BTT is recommended to be at least one year- and preferably two years for OC/BTT and 2IC/BTT.

1 This Memorandum of Understanding does not apply to Greenland and Faroe Islands