seeking to promote co-operation among the Baltic States in the field of security and defence,

desiring to contribute to the regional security and stability in the Baltic Sea area,

striving to enhance interoperability of the naval forces of the Baltic States with NATO,

recognising the need to counter mine threats in the Baltic Sea,

have agreed as follows:

ARTICLE 1. GENERAL

1. The Contracting Parties commit to establish a combined naval unit — the Baltic Naval Squadron, hereinafter referred to as the BALTRON, as a standing naval force.

2. BALTRON shall provide the Baltic States with a permanent short notice capability to undertake naval operations in peacetime and crisis. The functions of the BALTRON shall be mine-countermeasure operations and the enhancement of the security of the Baltic States territorial waters and economic zones. BALTRON may be directed to participate in international peace support operations and operations contributing to regional stability, mandated by international organisations and conducted in accordance with the United Nations Charter.

3. Decisions concerning actual BALTRON deployment in operations shall be taken in consensus between the Contracting Parties and following national legislation and procedures.

4. Within the scope of this Agreement, the Contracting Parties authorise the Ministers of Defence, or other appointed authorities of the Contracting Parties, to conclude necessary administrative arrangements and procedures for the activities of the BALTRON.

ARTICLE 2. ORGANISATION

1. BALTRON shall be composed of national contingents and of a combined staff. The staff posts shall rotate between the Contracting Parties.

2. The size of national contingents assigned to the BALTRON shall be agreed upon by the Contracting Parties.

3. The practical aspects of organisation, command, control and deployment of the BALTRON shall be set out according to administrative arrangements, concluded in accordance with Article 1 of this Agreement.

4. The command language of the BALTRON shall be English.

ARTICLE 3. RESPONSIBILITIES

1. Each Contracting Party shall carry its own responsibility for the preparation of ships for operations and deployment as well for recruiting and training of its personnel appointed for the service in the BALTRON.

2. The supply and maintenance of its national contingents shall be the responsibility of each Contracting Party.

3. The Contracting Parties agree to provide support for the BALTRON when hosting any activity connected to the BALTRON. The terms on which support will be rendered shall be laid down in administrative arrangements, concluded in accordance with Article 1 of this Agreement.

4. The practical aspects of sharing costs of the formation and activities of BALTRON shall be laid down in administrative arrangements, concluded in accordance with Article 1 of this Agreement.

5. Each Contracting Party shall independently and according to its national legislation decide the conditions of service, salaries, taxation, social and legal guarantees for BALTRON personnel of its nationality serving on its territory.

ARTICLE 4. STATUS

1. While in the territory of any of the Contracting Parties due to the activities connected to the BALTRON, 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 shall govern the relationship between the Contracting Parties as for status of their forces. For the purpose of the BALTRON, supplementary Protocols may be concluded.

ARTICLE 5. FINAL PROVISIONS

1. The Government of the Republic of Estonia shall act as the official Depository for this Agreement.

2. Disputes between the Contracting Parties regarding the interpretation or application of this Agreement shall be resolved by negotiation between the Contracting Parties and shall not be referred to international tribunals or third parties for settlement.

3. Any of the Contracting Parties may at any time request the revision of any Article of this Agreement. The request shall be addressed to the Depository which shall notify all the other Contracting Parties of each such notification and the date of the receipt thereof.

4. The present Agreement shall be ratified and the instruments of ratification shall be deposited at the Depository, which shall notify each of the Contracting Parties of the deposit thereof.

5. The present Agreement shall come into force on the 30th day from the date of the deposit of the last instrument of ratification.

6. The present Agreement is concluded for an unlimited period of time. It may be denounced by any of the Contracting Parties by written notification to the Depository which shall notify all the other Contracting Parties of each such notification and the date of the receipt thereof.

7. The denunciation shall take effect 6 months after the receipt of the notification by deposit state.

Done at Riga on April 16, 1998 in three originals, each drawn up in Latvian, Estonian, Lithuanian and English languages, all being of equal legal force. In case of different interpretation the text in English language shall prevail.