BACKGROUND

CONFIDENTIAL

COVERING SECRET

1.

2.

The most recent events in Lithuania are:

(a) the occupation by Soviet troops of a number of

buildings belonging to the Lithuanian Communist

Party in Vilnius; and

(b) the arrest on the night of 26/27 March of 12

Lithunian deserters who had taken refuge in a hospital in Vilnius.

The effect of the Soviet approach has (predictably) been to heighten fears in Lithuania. The response of Professor Landsbergis's government and the Lithuanian people has been mixed. The Lithuanian Parliament has continued with the

process of asserting Lithuania's independence (for instance by creating new Lithuanian ministries, restructuring broadcasting in Lithuania, and enacting laws which reaffirm Lithuania's independence). The Lithuanian people have also continued to show considerable discretion: there have been no violent demonstrations which would give Moscow a pretext for a clamp-down. The mood is however becoming increasingly tense. There must for instance be a risk tht any large scale arrest of deserters could provoke a flare-up.

3.

The net result of the Soviet tactics has been to reduce

the room for manoeuvre on both sides. It will now be

significantly more difficult for Gorbachev to resume the dialogue with the Lithuanians with a view to entering serous talks on how secession could be introduced in a way which would protect Soviet economic and security interests.

4.

The Soviet leadership announced on 25 March that the new Council of the Federation (a body with probably some 30 or

on which each of the Soviet republics is

40 members

-

represented) will meet later this week in connection with

JBDAAF/3

CONFIDENTIAL

COVERING SECRET

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