Speeches, etc.

Margaret Thatcher

Speech introducing the Prime Minister of Estonia (Mart Laar)

Document type: Speeches, interviews, etc.
Venue: Royal Society of Arts, central London
Source: Thatcher Archive: speaking notes
Editorial comments: Around 1800. Mart Laar was delivering the CPS Lecture.
Importance ranking: Minor
Word count: 498
Themes: Foreign policy (Central & Eastern Europe), Foreign policy (USSR & successor states)

It seems remarkable that it is only three years ago that Estonia threw off the shackles of Soviet authority and emerged once again as an independent state. As the Soviet Empire crumbled Estonia and its Baltic neighbours were at the forefront of those seeking freedom, breaking the rigid political economic and military bonds which had repressed its proud and rich tradition for so long.

The first multi-party elections in September 1991, saw a victory for the Centre-Right, and the Pro Patria Party's leader, Mr. Mart Laar, become Prime Minister. I am delighted to welcome him here tonight. [end p1]

Since he became Prime Minister, Estonia has made remarkable political and economic progress: of the captire ex-Socialist republics:

* you were the first to introduce its own fully convertible currency

* you have reduced inflation from a peak of 1,000%; to 36%; by the end of last year

* you will balance your budget for 1994

* your overseas trade has doubled [end p2]

* economic growth was 3%; last year and a projected 4–5%; this year

* and you have embarked on an ambitious privatisation programme which has already seen 155 of your 500 state-owned industries prepared for sale.

From the start Estonia has shown its determination to be open to trade, taking an anti-protectionist stance and virtually abolishing import tariffs for many countries. In 1991 Russia was your main customer taking 95%; of your exports; today 70%; of them are sold to the West. With great foresight you [end p3] have made plain that it is trade, not aid, which will provide the key to success.

It is a record to be proud of and one which shows that the spirit of enterprise is alive and well in Estonia and has survived half a century of Communist rule.

The reforms which you have put in place will serve your country well for the future. But though the Communist system may have perished there are still far too many Communists about waiting to return to central control. [end p4]

As I think you have observed, Prime Minister, the most dangerous time for a fledgling democracy is when its economy is still in a state of transition—all the difficulties show first, the benefits only come later. We have seen how these difficulties can be exploited but this must not deflect us from our path. If your principles are right and you have the resolve to carry them through, then the people will support you.

As someone who has occasionally received unsolicited advice, I noted with amusement that some thought your reforms were too radical. [end p5]

I understand that you replied, in effect, that there was no alternative—if I may say so, it is a phrase I seem to have heard somewhere before. Prime Minister, the art of leadership is making the impossible happen—and you have!

Asked recently what kind of Estonia you were seeking to create, you said you favoured an open society based on a market economy, one which was part of Europe and integrated into its defence and market structures. If I may say so Prime Minister, you sound like my kind of European. Welcome.