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Viewing cable 08RIGA737, LATVIA: TROUBLING USE OF LEGAL PRESSURE TO SQUELCH

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Reference ID Created Released Classification Origin
08RIGA737 2008-11-28 15:00 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Riga
VZCZCXRO1744
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHRA #0737 3331500
ZNR UUUUU ZZH
P 281500Z NOV 08
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC PRIORITY 5423
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS RIGA 000737 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PHUM ECON EFIN LG
SUBJECT:  LATVIA: TROUBLING USE OF LEGAL PRESSURE TO SQUELCH 
ECONOMIC DOUBTS 
 
1. (SBU) Summary: With the econmic situation in Latvia becoming 
more tense, law enforcement agencies are applying hard measures 
against individuals publicly doubting the stability of banking 
system or the national currency.  A Latvian law, amended after fears 
of Lat devaluation in 2007, makes it a crime to knowingly 
disseminate untrue data or information about the condition of the 
Latvian finance system, punishable by fines and jail time up to six 
years.  Criminal proceedings have been launched against a college 
lecturer and a pop singer, triggering criticism from human rights 
experts and free speech activists.  Several journalists have also 
said they feel intimidated by the government's use of the legal 
provision, and that the situation reminds them more of journalistic 
pressures that exist in Russia.  End summary. 
 
2. (SBU) Utilizing a law against dissemination of untrue financial 
information, police have been actively questioning, and even 
detaining, persons for making negative comments about the Latvian 
banking system and national currency.  Rumors about eventual 
devaluation of the Lat have been circulating in Latvia in the past 
weeks despite numerous government officials assuring this would not 
occur.  Dmitry Smirnovs, a finance lecturer at Ventspils College, 
was taken into police custody for two days for urging people to 
withdraw their savings from banks in a discussion organized by a 
local newspaper.  He has since been released but is not permitted to 
leave the country and is required to notify police of any change of 
address. 
 
3. (SBU) Similarly, investigations have been launched against 
Valters Fridenbergs, a popular singer who made a joke about banks 
and withdrawing deposits during a concert and was later questioned 
by the police.  In both cases, the Security Police (the agency 
dealing with threats to national security), was the acting 
authority.  It has refused to comment on the investigations.  In 
neither case are we aware of any suggestion that the individuals 
were deliberately seeking to destabilize the national currency, the 
Lat, or to manipulate markets for personal financial gain. 
 
4. (SBU) Human rights commentators and free speech web sites have 
condemned the actions taken by the police and described them as an 
overreaction.  Political commentator Karlis Streips said using the 
police to silence dissent from the official line was unwarranted and 
set a dangerous precedent.  Despite that, Bank of Latvia Governor 
Ilmars Rimsevics stated in an interview with Latvian National Radio 
that in "every other country, people spreading rumors about 
devaluation of the currency would be arrested within 10 or 15 
minutes". 
 
5. (SBU) The Latvian press was quick to report on these events and 
the editorial pages of major Latvian newspapers have been openly 
critical of the government's actions.  Several journalists have 
commented that they feel intimidated by the use of such police 
actions, noting that the practice is reminiscent of governmental 
pressures placed on journalists and editors in Russia.  An Amcit 
reporter for an American financial news service told us that he had 
received calls from the Ministry of Finance and the Bank of Latvia 
for his reporting on the financial situation in Latvia.  The 
reporter told us that he is nervous that he will be targeted next 
and said that many journalists were talking among themselves about 
how to fully cover this story given what they feel is the 
government's hyper sensitivity and overreaction, and willingness to 
use security institutions to intimidate critics. 
 
6. (SBU) Comment: The use of security laws to intimidate honest 
critics of the economic situation is troubling.  Though one of the 
three sub-sections of the law addresses the dissemination of untrue 
information for the purpose of acquiring property, the other two 
sections make no mention of the need that such untrue statements 
have a motive for personal gain or intent to alter markets to be a 
crime.  In a climate where corruption concerns are ever growing, 
this pressure to squelch journalistic and free speech freedoms is 
disturbing. 
 
 
Larson