    [Weekly Compilation of Presidential Documents Volume 40, Number 12 (Monday, March 22, 2004)]
    [Pages 406-407]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Message to the Senate Transmitting the Lithuania-United States
    Additional Protocol Amending the Reciprocal Encouragement and Protection
    of Investment Treaty

    March 12, 2004

    To the Senate of the United States:

        With a view to receiving the advice and consent of the Senate to
    ratification, I transmit herewith the Additional Protocol Between the
    Government of the United States of America and the Government of the
    Republic of Lithuania to the Treaty for the Encouragement and Reciprocal
    Protection of Investment of January 14, 1998, signed at Brussels on
    September 22, 2003. I transmit also, for the information of the Senate,
    the report of the Department of State with respect to this Protocol.
        I have already forwarded to the Senate similar Protocols for Romania
    and Bulgaria and now forward simultaneously to the Senate Protocols for
    the Czech Republic, Estonia, Latvia, Lithuania, Poland, and the Slovak
    Republic. Each of these Protocols is the result of an understanding the
    United States reached with the European Commission and these six
    countries that will join the European Union (EU) on May 1, 2004, as well
    as with Bulgaria and Romania, which are expected to join the EU in 2007.
        The understanding is designed to preserve U.S. bilateral investment
    treaties (BITs) with each of these countries after their accession to
    the EU by establishing a framework acceptable to the European Commission
    for avoiding or remedying present and possible future incompatibilities
    between their BIT obligations and their future obligations of EU
    membership. It expresses the U.S. intent to amend the U.S. BITs,
    including the BIT with Lithuania, in order to eliminate
    incompatibilities between certain BIT obligations and EU law. It also
    establishes a framework for addressing any future incompatibilities that
    may arise as EU authority in the area of investment expands in the
    future, and endorses the principle of protecting existing U.S.
    investments from any future EU measures that may restrict foreign
    investment in the EU.

    [[Page 407]]

        The United States has long championed the benefits of an open
    investment climate, both at home and abroad. It is the policy of the
    United States to welcome market-driven foreign investment and to permit
    capital to flow freely to seek its highest return. This Protocol
    preserves the U.S. BIT with Lithuania, with which the United States has
    an expanding relationship, and the protections it affords U.S. investors
    even after Lithuania joins the EU. Without it, the European Commission
    would likely require Lithuania to terminate its U.S. BIT upon accession
    because of existing and possible future incompatibilities between our
    current BIT and EU law.
        I recommend that the Senate consider this Protocol as soon as
    possible, and give its advice and consent to ratification at an early
    date.
                                                    George W. Bush
     The White House,
     March 12, 2004.

    Note: This item was not received in time for publication in the
    appropriate issue.