Republic of Lithuania                                     
                               Law                                              
                                                                                
                                                                                
  On Spheres of Business Activity wherein Foreign Investment is                 
                      Prohibited or Limited                                     
                                                                                
                                                                                
     Article 1.                                                                 
                                                                                
     This  law  establishes  the  spheres  of  business  activity               
wherein  foreign  investment  shall  be  prohibited,  or  wherein               
conditions limiting foreign investment shall be established.                    
                                                                                
     Article 2.                                                                 
                                                                                
     Foreign investment  shall be  prohibited in those spheres of               
activity which  are related  to the national defense and security               
of the Republic of Lithuania.                                                   
                                                                                
     Article 3.                                                                 
                                                                                
     Without  a  special  directive  of  the  Government  of  the               
Republic of  Lithuania, foreign investment shall be prohibited in               
state firms having a monopoly in the Lithuanian market.                         
                                                                                
     Article 4.                                                                 
                                                                                
     A foreign capital firm or joint venture functioning not as a               
state  firm,   or  functioning  as  a  stock  corporation  (close               
corporation), in  the event that the Lithuanian founder of such a               
corporation possesses  less than  51 percent  of  voting  shares,               
shall be prohibited from:                                                       
     operating   oil    and   gas    pipelines,   communications,               
electricpower transmission lines, heating systems, and facilities               
ensuring these  objects'  functioning,  these  objects  being  of               
national significance;                                                          
     operating highways,  railways, seaports  and airports of the               
Republic of Lithuania according to their functional purpose;                    
     establishing or  operating gambling houses, organizing games               
of chance or holding lotteries;                                                 
     engaging in  publishing activity, preparing and broadcasting               
TV and  radio programs,  except for  the technical  servicing  of               
printing presses, radio and television; and                                     
     managing spa treatment.                                                    
                                                                                
     Article 5.                                                                 
                                                                                
     Foreign capital  firms and joint ventures functioning not as               
state  firms  and  not  as  state  stock  corporations  shall  be               
prohibited from:                                                                
     manufacturing vodka, liqueurs, or other alcoholic beverages;               
     manufacturing tobacco products;                                            
     treating persons ill with dangerous and especially dangerous               
diseases,  including   venereal  diseases   and  infectious  skin               
diseases or aggressive forms of psychic diseases; and                           
     treating animals ill with especially dangerous diseases.                   
                                                                                
     Article 6.                                                                 
                                                                                
     Foreign capital  firms and joint ventures functioning not as               
state firms shall be prohibited from:                                           
     manufacturing weapons and explosives;                                      
     producing and selling narcotics;                                           
     growing and selling cultures containing narcotic, harmful or               
poisonous substances; and                                                       
     concentrating and  distributing the  labor  force,  settling               
issues of labor force migration.                                                
                                                                                
     Article 7.                                                                 
                                                                                
     Without a  special license  issued by  a  directive  of  the               
Government of  the Republic  of Lithuania,  foreign capital firms               
and joint ventures shall be prohibited from:                                    
     exploring for and exploiting mineral deposits;                             
     exploiting natural resources;                                              
     establishing and  operating internal  public  communications               
and transport systems; and                                                      
     producing and selling poisonous substances.                                
                                                                                
                                                                                
Vytautas Landsbergis                                                            
                                                                                
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
                                                                                
Vilnius                                                                         
2 May 1991                                                                      
No. I-1276