xRIGA, Latvia -- The Latvian parliament, in line with European recommendations, voted on Friday to amend its citizenship law and reject a controversial quota system to grant minorities citizenship.


The move clears the way for Latvia's entry to the Council of Europe. President Guntis Ulmanis returned the law to parliament last month, saying it would isolate Latvia from Europe and damage the country's reputation.


Parliament voted to amend the law by 58 to 21 in what was seen as a major victory for the pro-European Latvian Way faction, despite last week's collapse of that party's coalition government.


"I consider this a major step forward," added Hugh Hamilton, who heads a mission of the Conference on Security and Cooperation in Europe (CSCE) to Latvia.


The mission has been meeting parliamentary factions over the last month in an effort to relax citizenship requirements for the Russian-speaking minorities in the Baltic republic.


The amended law, which is expected to be signed by Ulmanis, provides for the naturalization over the next six years of non-citizens born in the ex-Soviet republic. Those born outside Latvia could become full citizens starting from the year 2000.


The previous quota system would have meant a total of only 2,000 minorities gaining citizenship per year. Under new rules most applicants will be naturalized by 2003.


Parliament also voted to guarantee that decisions on citizenship applications would be made within a year.


There are about 500,000 Russian-speakers in Latvia. Most arrived after Soviet dictator Josef Stalin annexed the three Baltic republics in 1941.


The National Conservative Party (LNNK), which has been invited to form a government following the collapse of the old coalition, argued strongly against relaxation of the law.


The LNNK has 15 seats in the 100-seat parliament. It is the second-largest faction after Latvian Way, which has 34.


"Does Europe want Latvians to be exterminated?" asked one LNNK deputy, referring to a fragile demographic situation where Latvians constitute only 52 percent of the population.


But deputies were swayed by Council of Europe indications that it could not admit Latvia if the quotas were maintained.


The law is still considered tough compared with Estonian rules, which require two years' residency and a language test for citizenship.


Estonian citizenship laws have nevertheless proved stringent enough to complicate Russia's withdrawal of troops from that Baltic republic. President Boris Yeltsin on Wednesday said the troops would remain until the rights of ethnic Russians living in the nation were recognized. However officials in Estonia reported Friday that the pullout of soldiers was going ahead.


A long train loaded with tanks and armored vehicles crossed into Russia on Thursday and another filled with military equipment was headed toward the border Friday, the officials said.


Soldiers at Russian bases across Estonia were reportedly preparing to leave, despite Yeltsin's statement.


(Reuters, AP)