Month: August 2008

TURKEY IN THE BALANCE? INSIDE THE IMPROBABLE TURKEY-IRAN PARTNERSHIP
By Alexander Sherbany

Harvard Political Review
Aug 5 2008
MA

For much of the last 50 years, through the Cold War, Iranian
Revolution, and Iran-Iraq War, Turkey and Iran have weathered
ideological tension and mutual mistrust to maintain a peaceful
coexistence. Over the objections of the United States, in the
past decade Turkey has moved to solidify a pragmatic economic and
geopolitical partnership with oil-rich Iran.

Turkey, a NATO ally seeking membership in the European Union, has
long been the Muslim world’s best prospect for a secular, democratic
state close to the United States and Europe. Yet the country is divided
over the issue of the Iraq-based Kurdistan Worker’s Party. The party,
also known as the PKK, is recognized as a terrorist organization by
Turkey, the United States, and the European Union. The tension between
the PKK and Turkey has drawn the latter closer not to the U.S. or EU,
but to the region’s staunchest enemy of the West, the Shia theocracy
of Iran. As Washington attempts to isolate Tehran, stabilize Iraq,
and address the PKK issue, it must simultaneously assure Iraq of
its sovereignty and Turkey of its security. American relations with
Turkey and policy towards Iran could be undermined by a Turkey-Iran
relationship more cordial than one might expect, given their divergent
histories, internal politics, and relations with the West.

Turkey’s War on Terror As is often the case, diplomacy makes strange
bedfellows. For much of the last 25 years, the Turkish military
has been involved in a sporadic but continuous guerilla war with
the PKK, a Kurdish separatist faction whose goal is to establish an
independent Kurdistan in the largely Kurd-inhabited area comprising
parts of northern Iraq, southeastern Turkey, Syria, and Iran. With
over 30,000 lives claimed by the conflict since 1984, Turkey–which
has a significant Kurdish minority–considers the PKK a threat both to
its national security and territorial integrity. Many Turks perceive
the PKK with the same sense of urgency many Americans feel towards
al-Qaeda, and view Afghanistan as a case study of how to respond when
a country becomes a haven for terrorists that plague their own country.

Warplanes and long-range artillery have been continuously targeting PKK
positions in northern Iraq since December of last year, but in late
February the Turkish military launched an eight-day ground incursion
into northern Iraq to attack PKK hideouts beyond the border. Abdulkadir
Onay, a lieutenant colonel in the Turkish army and Visiting Military
Fellow at the Washington Institute for Near East Policy, told the
HPR that since Turkey has participated in international missions
for the U.S.-led War on Terror, "she expects the same reaction for
terror against Turkey." With troops spread thinly elsewhere, however,
American forces can scarcely afford a bloody entanglement in the
otherwise stable semi-autonomous Kurdish zone of Iraq. Until a few
months ago, Washington was sending a strong message to Turkey not to
enter Iraq for fear of unsettling regional stability.

Polls of the Turkish public have shown record-high levels of
dissatisfaction with American foreign policy, underscoring deeper
anti-American sentiment since the election of the current AKP
government in 2002 and the Iraq War. According to a 2007 survey
by the Pew Global Attitudes Project, only nine percent of Turks
express a favorable view of the United States, down from 30 percent
in 2002. Meanwhile, as the United States attempts to exert pressure
on nuclear-bent Iran, Tehran sees a critical opportunity to bolster
ties with Ankara by carrying out military operations against the PKK
and strengthening cooperation on energy resources.

A Trend of Cooperation As the United States and others move to stifle
Iran’s nuclear ambitions, Turkey’s strategic security and energy
interests deter it from a supporting role. Robert Olson, Professor of
Middle History and Politics at the University of Kentucky, noted in
an interview with the HPR that Turkey is pursuing a nuclear energy
program itself with plans to build several reactors in the next
few years. In light of this, Olson said, "Turkey would acquiesce
in Iran obtaining nuclear capabilities." It relies on Iran for 20
percent of its oil, maintains a major pipeline for the natural gas
required to heat Turkish homes in the winter, and signed an energy
agreement last year under which it would act as a transit venue and
joint marketer of Turkmen and Iranian gas westward to Europe. In
violation of America’s 1996 Libya-Iran Sanctions Act, Turkey also
plans significant investment in Iran with the construction of three
large power plants. Threatened but persistent, Iran is eager to court
its most powerful neighbor and a key ally of the United States. And
Turkey, unwilling to play the obedient mistress in the U.S. campaign
to isolate Tehran, has responded warmly to the wooing.

Tehran, moreover, is adept at turning the public relations game
against Washington. In an interview with the HPR, Soner Cagaptay,
Director of the Turkish Research Program at the Washington Institute
for Near East Policy, said that Iran is attempting to "drive a wedge"
between Turkey and the U.S. with what he calls "public diplomacy":
on days when U.S. officials conduct talks in Ankara, Iran bombs
PKK camps and steals headlines in the Turkish newspapers. Despite
U.S. intelligence sharing on rebel positions, Cagaptay says, "the
Iranians have created this semblance in Turkey that when it comes to
the PKK, the Americans talk the talk and Iranians walk the walk."

Repairing Ties Last October, President Bush condemned a particularly
deadly cross-border ambush by the PKK that killed 17 Turkish soldiers,
saying, "the attacks must stop now." A few months later, the day
before the majority of Turkish forces withdrew from Iraq, Bush joined
Secretary of Defense Robert Gates in calling for Turkey to get out "as
soon as possible." The rhetorical juggling act illustrates the fine
line that Washington must tread between protecting the sovereignty
of the fledgling Iraqi state and assuring one of its most important
regional allies of the right to dislodge terrorists from border
positions.

There is, however, potential for improved U.S.-Turkey relations
going forward. Prime Minister Tayyip Erdogan met with President
Bush in November 2007 partly to discuss the PKK, and the United
States has since augmented its sharing of actionable intelligence
to assist Turkish operations. Washington, Cagaptay says, also gave
Turkey the "green light" for its recent incursions into northern Iraq,
improving relations considerably. The defeat of the Armenian genocide
resolution in Congress, a largely symbolic bill that is nonetheless
a highly sensitive issue for Turkey, also eased tensions as the Bush
administration made a strong show of resistance. And although the
United States and Iraq pressured Turkey to withdraw at the end of
February, Colonel Onay predicts that this will not be the last of
Turkish offensives: "Turkey is determined to take all the measures no
matter what it costs, because this problem is a matter of existence
for her."

From: Emil Lazarian | Ararat NewsPress

ERGENEKON ORDERED MURDER OF MAYOR

Today’s Zaman
Aug 6 2008
Turkey

A retired general — currently under arrest as a suspected
administrator of Ergenekon, a shadowy gang with hands and arms in
every sphere and segment of society, including the military, that
stands accused of attempting to overthrow the constitutional order —
was behind the murder of the mayor of the Mediterranean province of
Mersin, the case prosecutor has claimed in his indictment.

According to witness testimony and other evidence cited in the
indictment, Ergenekon suspect former Gen. Veli Kucuk ordered the
murder of Atakent District Mayor Fevzi Dogan in Silifke, Mersin. Yusuf
KılbaÅ~_, currently in jail on charges of forcefully seizing property,
has emerged as a surprise witness in the case. In a letter to the
Ä°stanbul Chief Prosecutor’s Office, he leveled series accusations
at the Ergenekon organization and Kucuk. KılbaÅ~_ wrote that a
former business partner of his, Omer Unver, had introduced him to
noncommissioned officer Ahmet Sezik, who was serving in the Erdemli
District Gendarmerie Command at the time.

KılbaÅ~_ maintains in his account that Sezik promised him a "career"
in Mersin. Sezik also introduced KılbaÅ~_ to Kucuk. During this
time, KılbaÅ~_ was given the responsibility of management of a small
hotel in the AyaÅ~_ area on the order of Kucuk and Sezik. KılbaÅ~_
said the group occasionally drank together and claimed that Kucuk
proposed KılbaÅ~_ kill the Atakent mayor. According to KılbaÅ~_’s
testimony, Kucuk said: "Such people are obstructing our organization
and our good friends. Such people have to die."

KılbaÅ~_ said he accepted the offer after being promised both
"material and emotional" support from Kucuk. He says he stalked the
mayor for five or six days, but was unable to find the right moment
to kill Dogan with no witnesses around. Later, Kucuk ordered Dogan be
killed using a hand grenade. KılbaÅ~_ said he did as he was told and
also claimed Kucuk thanked him after Dogan was killed. "Good job, we’ll
do better things with you," Kucuk allegedly told KılbaÅ~_. Later,
KılbaÅ~_, who was serving time in prison for aggravated theft, found
that his partner was killed suspiciously and decided to confess his
initial encounter and later relationship with Kucuk.

However in a statement he released yesterday afternoon, Fevzi Dogan’s
son, Ahmet Dogan, said he was deeply suspicious of the veracity
of Yusuf KılbaÅ~_’ testimony. "We feel that they are making up
this scenario so that Yusuf KılbaÅ~_ would claim responsibility
for this. This is what he is doing. What we believe is this: Even
if they are connected to these people, the people who ordered the
death of my father are different people. If you ask who they are,
I can say that they are people who were involved in corruption and
had links with the prior administration — this can be exposed if
it is seriously investigated. But I don’t think our case is being
seriously investigated," he said. Dogan added that although it was
possible that Ergenekon-linked people were assigned or paid for the
job, the initial order must have been given by profiteers.

He said his father’s first act as mayor was to stop uncontrolled
development and construction on the district’s coastline and bring
down illegally constructed casinos and bars. His son claims that his
father was killed in the fight for profits.

Ergenekon suspect hospitalized

Ferit Ä°lseven, the editor-in-chief of the National Channel who was
arrested as part of the Ergenekon investigation, was hospitalized
yesterday for a lung problem.

Ä°lseven, who is serving time at the Tekirdag F-type Prison, was
hospitalized at the Trakya University Hospital, where doctors released
a statement saying a mass off tissue was discovered in the upper lobe
of his right lung.

Ergenekon suspect Kuddusi Okkır, who was in custody for nearly a
year, died of lung cancer only a few days after his release. Okkır’s
death had drawn attention to the poor health conditions of prisoners
in Turkey’s jails.

Main accusations of indictment

The 2,455-page indictment, made public last month, indicates that the
Ergenekon network was behind a series of political assassinations over
the past two decades. The victims include a secularist journalist, Ugur
Mumcu, long believed to have been assassinated by Islamic extremists
in 1993, head of a business conglomerate, Ozdemir Sabancı, who was
shot dead by militants of the extreme-left Revolutionary People’s
Liberation Party/Front (DHKP/C) in his high-security office in 1996,
secularist academic Necip Hablemitoglu, who was also believed to have
been killed by Islamic groups in 2002 and an attack on the Council
of State in 2006 that left a senior judge dead. Alparslan Arslan,
found guilty of this last assault, said he attacked the court to
protest an anti-headscarf decision it had made, but the indictment
contains evidence that he had been in contact with Ergenekon and that
his family received large sums of money from unidentified sources
after the shooting.

The indictment also says Veli Kucuk, believed to be one of the leading
members of the network, had threatened Hrant Dink, the Turkish-Armenian
journalist slain by a teenager in 2007, before his murder, a sign
that Ergenekon could be behind his death as well.

The indictment exposes questionable relations between Ergenekon and
the outlawed Kurdistan Workers’ Party (PKK) and the DHKP/C, raising
serious suspicions that Ergenekon might have played a role in inciting
ethnic hatred between Turks and Kurds and increasing sectarian tensions
between Sunnis and Alevis by a series of provocative acts.

The existence of Ergenekon was exposed following a police raid in
July 2007 on a house being used as an arms depot in Ä°stanbul’s
Umraniye district. A detailed investigation into the explosives and
suspects detained in the raid suggests that provocative acts that
have dragged the country from one chaotic scenario to another were
inspired by Ergenekon, which had members from almost all segments
of society, including retired army officers, academics, journalists
and businessmen.

A total of 86 suspects, 47 of whom are currently under arrest,
are accused of having suspicious links with the gang. Suspects
will start appearing before the court as of Oct. 20 and will face
accusations that include "membership in an armed terrorist group,"
"attempting to destroy the government," "inciting people to rebel
against the Republic of Turkey" and other similar crimes.

—————————————– —————————————
Ergenekon behind Hiram Abas killing

The indictment also claims Ergenekon is responsible for the
death of Hiram Abas, a National Intelligence Organization (MÄ°T)
member allegedly killed by an extreme left organization. One of the
indictment’s cited secret witnesses, whose names are not disclosed to
the pubic out of security concerns, shared details of the killing of
Abas, and also the assassinations of retired generals Ä°smail Selen,
Memduh Unlutur, Kemal Kayacan and Adana Gendarmerie Regional Commander
Temel Cingöz, and former MİT Undersecretary Adnan Ersöz.

Another confession from a protected witness, codenamed Dilovası, who
was with the left-wing organizations Dev-Sol and the Revolutionary
People’s Liberation Party/Front (DHKP-C) for long years, suggests
the clear involvement of Ergenekon members in the Turkish security
forces with terrorist organizations. Dilovası, who received arms
training in Lebanon’s Bekaa Valley, also say that an officer of the
Turkish Special Forces taught training courses for militants of the
group. His confessions also suggest that Dursun KarataÅ~_, the DHKP-C
leader who escaped from prison in the year 1990, was protected by
some centers with access to state power. KarataÅ~_’s escape was made
possible by the help of a "secret hand," the witness says in the
indictment. Similarly, in operations of security in which tens of
DHKP-C militants were killed, KarataÅ~_ always managed to escape and
stay alive. "Veli Kucuk has close contacts with a number of people
in the organization [the DHKP-C]. He sends messages to KarataÅ~_
with a special courier," he said.

——————————————- ————————————-
Duyar regretted Sabancı murder

Another protected witness, codenamed Yuksel, in his testimony to the
prosecutor said Mustafa Duyar, arrested in connection to the murder of
businessman Ozdemir Sabancı in İstanbul, was killed by a man hired
by Ergenekon. Sabancı was gunned down on Jan. 9, 1996 in his office
in the heavily guarded Sabancı Towers in Levent, İstanbul, along
with his company’s general manager. The DHKP-C claimed responsibility
for the murder. The indictment presents compelling evidence linking
Ergenekon to the murder. Yuksel speaks about his recollection of
the day after the Sabancı murder in his testimony, saying: "I slept
in the same room as the Sabancı assassination trigger man, Mustafa
Duyar. Duyar wept after the murder, asking, ‘Are we now murderers?’"

Corruption report found in Ergenekon archive

The Ergenekon indictment includes a report seized by the police
in the home of suspect Behic Gurcihan during a raid as part of the
Ergenekon investigation claiming that a gendarmerie major investigating
corruption in land dealings — including sales or construction without
permits — in Ä°stanbul’s Buyukcekmece district had to end the probe
due to pressure from senior army officials. The report notes that
in addition to senior generals, governors, judges, prosecutors and
police officers were involved in the illegal transactions.

The major who penned the report said commanders in the military
seemed to protect lower-ranking soldiers involved in the illegal
deals, which, in turn, further encouraged them to be involved in
corrupt dealings. Senior judges, prosecutors and bureaucrats also
profited from this lucrative business, the report noted. The major
confesses in the document that the figures who seem to have played
a part in the land deals were able to intimidate both the judiciary
and the gendarmerie. "Let alone writing down these names in records,
the officers are often even scared to say these names aloud," he wrote.

The names in the report include late Prime Minister Turgut Ozal’s
son, Ahmet Ozal, Gen. Teoman Koman and Gen. İsmail Hakkı Akansel
as well as Gen. Cevik Bir, a former deputy chief of staff, Governor
Erol Cakır and relatives of then President Suleyman Demirel.

Perincek: Ergenekon’s link to PKK

A protected witness using the code name Deniz is cited in the Ergenekon
indictment as saying he witnessed Workers’ Party (Ä°P) leader Dogu
Perincek, currently in jail as a major Ergenekon suspect, pay visits to
the camps of the terrorist Kurdistan Workers’ Party (PKK) to see the
now jailed PKK leader Abdullah Ocalan. There are photographs included
in the indictment that back up this claim. The witness noted that
"Ocalan always showed the greatest interest in Perincek among all of
his visitors." The indictment also notes that another secret witness
with the code name Ahmet said he witnessed many meetings between the
Ergenekon leader and Hizbullah leader Huseyin Velioglu.

–Boundary_(ID_0Pm0pdm3qKiWtgDzqKuGQA)- –

ARMENIA’S NEW PRO-BIZ PRIME MINISTER
by Arpi Harutyunyan

BusinessWeek
http://www.businessweek. com/globalbiz/content/aug2008/gb2008085_363717.htm ?chan=globalbiz_europe+index+page_top+stories
Aug 6 2008

In office less than six months, Tigran Sargsyan is trying to change
Armenian politics, vowing to fight graft and overhaul the government

Environmentalists campaigned fervently against plans to open a large
tract of relatively untouched forest land to strip mining, only to
watch the Armenian National Assembly approve the deal anyway.

This spring, as the snows in the mountainous north began to melt and
work started at the Teghut mine, a coalition of conservation groups
renewed their push to have the government reconsider the approval
of what they contend will cause irreversible damage to the nation’s
dwindling forestland.

More accustomed to setbacks than progress in dealing with political
leaders in Yerevan, environmentalists got a shock when the country’s
new prime minister, Tigran Sargsyan, not only agreed to discuss their
concerns, but seemed to cozy up to their arguments.

"We can’t damage nature, because it’ll cost our state and the people
much more to repay," Sargsyan told a group of conservationists on
20 June. "And clearly, we need to take that into account from the
very beginning and make balanced decisions. We need not be seduced by
industry’s statistics alone, but realize the importance of providing
a proper living environment for people."

Environmentalists hailed as unprecedented the prime minister’s
decision to meet face-to-face and to openly discuss the government’s
controversial approval — even if the mining operations in northern
Armenia’s Teghut forest continue.

"This was the first serious meeting with a high-ranking official
like the prime minister within the last 15 to 20 years," said Hakob
Sanasaryan, chairman of the Greens’ Union. "But the outcome of the
meeting showed the discussion in fact was a formality. Maybe he will
carry out serious reforms in other spheres, but not Teghut, I think."

A NEW STYLE OF LEADER

Formality or not, the meeting is one sign that the prime minister, who
has been in office less than six months, is trying to change Armenian
politics. With a reputation for corruption, divisive politics, and a
political culture wedded in favoritism, the country has a long way to
go. But the former Central Bank chairman has been talking change —
and has already ruffled some feathers in the process.

Since taking office after an explosive political spring, Sargsyan
met lawmakers discouraged by the deadly crackdown on demonstrators
who claimed that the dominant Republican Party stole the February
presidential election. He is also setting standards almost unheard
of among public officials in Armenia — punctuality, competence
and openness.

Tatul Manaseryan, an economics professor at Yerevan State University
and a former independent member of the National Assembly, believes
the prime minister is trying to shake up the system and rattles off
a long list of changes.

"The PM has started important reforms from his office: the work
day starts at 9 a.m., the government sessions are as transparent as
possible, he demands computer and other kinds of literacy from the
ministers, organizes regularly scheduled meetings with citizens and
actively responds to the questions raised, made a call for cooperation
to the opposition and participated and spoke at the opposition
congress, set a compulsory requirement for the ministries to work
with non-governmental organizations, and so on," Manaseryan said.

Indeed, Sargsyan has been unafraid to criticize corruption, bribery,
smuggling, and other problems — charges often made by monitoring
organizations and citizens, but rarely from the mouths of senior
politicians.

"The number one problem in the Republic of Armenia is not the problem
of democracy, nor the lack of freedom of expression," Sargsyan recently
told the National Assembly. "The number one problem is the corruption
that hinders all our reforms. If we don’t manage to create equal
conditions of competition for economic entities, there won’t be any
democracy in Armenia. That is the basis and corruption is our number
one enemy."

In an effort to combat corruption and improve the tax system in this
close-knit nation of 3 million people, the prime minister announced
on 19 June the creation of a council to monitor the customs service
and tax collections. He also set up telephone hot line to record
feedback and complaints.

DIFFICULT HURDLES AHEAD

Sargsyan has promised to openly discuss these problems and make public
cases when public servants are punished for breaching the rules.

"We have thousands of corrupt people and the problem is that even when
we replace them with others, we have no guarantees the newcomers will
not continue the tradition," he told an anti-corruption committee
on 26 June. "We have 2,000 tax collectors in the tax agency, and
200,000 more dreaming of taking the position not because they are
ready to honestly serve the country, but because they see it as an
easy opportunity to get rich."

Whether Sargsyan can overcome entrenched interests and succeed is open
to speculation. "It will take several months to reveal whether the
middle and minor corrupt officials, or the Â’sharks,’ have been made
accountable," Manaseryan said. "It is still too early to make judgments
whether the open and transparent work style will be compulsory for all,
or just the PM and the colleagues obedient to his call. But I see no
grounds to mistrust the newly appointed officials. At the same time I
believe the atmosphere in which those promises were given will create
more obstacles than favorable conditions for reforms."

Although Sargsyan is not aligned with a party, he calls the
shots in parliament. The Republican Party controls 64 of the 131
National Assembly seats, and draws support from smaller political
groups. Sargsyan’s anti-graft campaign plays into the hands of the
opposition, which for years has accused the leading party of arrogance
and fostering corruption. After stormy parliamentary elections in 2007
and a bitter presidential contest earlier this year, the premier’s
polices may appeal to a disillusioned public thirsty for change.

President Serzh Sargsyan appointed Tigran Sargsyan prime minister on
9 April. (The men are not related.) The new premier is a graduate
of the Yerevan State Institute of National Economy, and studied at
the N. A.Voznesensky Financial-Economic Institute in Leningrad, now
St. Petersburg. He’s also been trained at Georgetown University’s
International Law Institute in Washington.

After serving in various government posts when Armenia gained
independence in 1991, Sargsyan served as chairman of the Armenian
Bankers’ Association before moving to the Central Bank in 1997.

At 48, the guitar-playing father of three is a member of the Armenian
Orthodox Church and is well known around the capital. During the
blazing heat of Yerevan’s summer, Sargsyan and his family are often
seen at swimming pools in town.

REPUTATION HONED IN FINANCE

Sargsyan developed a reputation as a reformer while at the Central
Bank, and won praise from international institutions for helping
the country emerge from the dire economic conditions it endured
after the collapse of the Soviet Union and its turf war with
Azerbaijan. Armenia’s economic fortunes have improved markedly in
the past decade, including a decline in poverty and sharp rise in
growth, but the World Bank and monitoring agencies say corruption
and bureaucratic inefficiency continue to be a drag on the country’s
potential.

Dominique Strauss-Kahn, managing director of the International Monetary
Fund, was among the first to congratulate Sargsyan when he became prime
minister. "Numerous very important reforms were realized within your
10-year chairmanship of the Central Bank, including the alleviation of
inflation, introduction of an effective system of bank supervision,
and development of anti-laundering legislation." Strauss-Kahn also
praised Sargsyan’s "particular commitment to the continuity of reforms
and intelligent governance."

But not everyone is so glowing. Levon Ter-Petrosian, a former president
who lost to Serzh Sargsyan in the February election, recently told
an opposition rally that as Central Bank chairman, Tigran Sargsyan
cost the country dearly when he sold gold reserves for $17 million
when prices were low.

"This is absurdity in all aspects," he told the rally. "Gold is the
most liquid asset. States sell gold in serious situations when famine,
war, natural disasters and other things threaten the country. What
stupid man on earth would sell gold, when there are no such threats?"

Beyond combating corruption, the prime minister has vowed to improve
the quality of public service, which in many offices still suffers
from a Soviet-era work ethic.

"Our citizens’ major complaints with the state here is that the
state provides bad quality, untimely services and creates problems
for them," Sargsyan told the National Assembly. "As a result we have
serious complaints and mistrust in the government. The order given
to all ministries and agencies was the following: Â’Together we have
to catalog the services provided to our citizens and monitor their
quality.’ "

Sargsyan also wants overhaul the passport and visa agency. The
government gets dozens of complaints about the agency from citizens
and the country’s large diaspora returning for work and holidays.

"Obviously, we have serious problem in this sphere. It’s corruption —
when the service is delivered in the name of the state, but money is
extorted by a set price list," the prime minister said.

BURIED IN GRAFT

Sargsyan appears intent to tackle the graft that is inescapable
in Armenia, even in death. "The corruption [in cemeteries] simply
flourishes. If you want a proper burial plot, a big place, money will
solve the problem. And the cynicism has reached its height and nothing
keeps people back," the prime minister said in a speech on 26 June.

"Last week, we took part in the funeral of one of our chess
grandmasters. He was a renowned, talented chess player; the chairman
of the chess federation is the president of the republic, I am the
deputy chair, which means that everyone was well aware we were in close
contact with that talented chess player. However, no one appeared to
be constrained from taking a bribe of $2,000 to provide a place in
the cemetery."

Changing this system could take time and not everyone is convinced
Sargsyan can succeed.

"Tigran Sargsyan seems a well-bred, smart person at first sight,"
said Gayane Ohanyan, 48, a resident of Yerevan. "He is well educated,
has a lot of work experience. But it is unbelievable [that he can]
make significant reforms in a corrupt system like this, especially
as the officials are the bearers of the system of traditions."

Yerevan State’s Manaseryan says Sargsyan’s reform plans will take time,
but are feasible. "The process of getting rid of weeds is never short."

–Boundary_(ID_V9kKsCcrdjCj34nw/eXJG w)–

From: Emil Lazarian | Ararat NewsPress

PROGRESS SEEN IN RELATIONS BETWEEN ARMENIA, AZERBAIJAN – BRYZA

Interfax News Agency
Aug 4 2008
Russia

Progress has lately been noticeable in bilateral relations between
Armenia and Azerbaijan, said U.S. Deputy Assistant Secretary of State
Matthew Bryza.

Speaking to journalists following an hour-long meeting between the
Armenian and Azeri foreign ministers in Moscow, Bryza, who is the
U.S. co-chair of the OSCE Minsk Group mediating in the talks for
settling the Nagorno-Karabakh problem, said there was a certain pause
in relations between Yerevan and Baku during the recent presidential
campaign and elections in Armenia.

The new Armenian government is willing to maintain constructive
dialogue, but it will take some time to perceive Azerbaijan’s position,
Bryza said.

The meeting in Moscow could be considered as groundwork for the
resumption of full-scale dialogue between Baku and Yerevan, he said.

The U.S. diplomat stressed the importance of an earlier meeting between
the Armenian and Azeri presidents in St. Petersburg, which, he said,
helped resume the OSCE Minsk Group’s work.

Bryza said the parties agreed to continue the talks in the spirit of
mutual understanding, but said they still needed to converge their
positions at least on four issues, which he did not specify.

The next OSCE Minsk Group meeting is likely to take place during the
UN General Assembly session in New York in September, Bryza said.

The two presidents are unlikely to meet before the presidential
elections in Azerbaijan slated for October 15, but a meeting between
the two foreign ministers is quite possible, he said.

NAGORNO-KARABAKH’S STATUS SHOULD REFLECT AZERBAIJAN’S TERRITORIAL INTEGRITY – FOREIGN MINISTRY

Interfax News Agency
Aug 4 2008
Russia

The Nagorno-Karabakh conflict can only be resolved on the basis of a
phased approach and respect for Azerbaijan’s territorial integrity,
Azeri Foreign Ministry spokesman Khazar Ibragim said on Monday.

"The following is on the negotiating table at the moment: the
conflict resolution should be phased, with Armenia withdrawing all
of its troops from the occupied lands, including Nagorno Karabakh,
in the first place, the return of Azeri refugees there, and only
after the relations between both [Armenian and Azeri] communities
are stabilized will the status of Nagorno Karabakh be determined,"
he told a briefing on Monday.

Azerbaijan’s position on this issue remains unchanged, and the
status of Nagorno Karabakh can only be determined in the framework
of Azerbaijan’s territorial integrity, he said.

Nagorno-Karabakh’s status should reflect Azerbaijan’s territorial
integrity – Foreign Ministry (Part 2)

BAKU Aug 4

The Nagorno-Karabakh conflict can only be resolved on the basis of a
phased approach and respect for Azerbaijan’s territorial integrity,
Azeri Foreign Ministry spokesman Khazar Ibragim said on Monday.

"The following is on the negotiating table at the moment: the
conflict resolution should be phased, with Armenia withdrawing all
of its troops from the occupied lands, including Nagorno Karabakh,
in the first place, the return of Azeri refugees there, and only
after the relations between both [Armenian and Azeri] communities
are stabilized will the status of Nagorno Karabakh be determined,"
he told a briefing on Monday.

Azerbaijan’s position on this issue remains unchanged, and the
status of Nagorno Karabakh can only be determined in the framework
of Azerbaijan’s territorial integrity, he said.

Last Friday, U.S. co-chairman of the OSCE (Organization for Security
and Cooperation in Europe) Matthew Bryza said after a meeting between
Azeri and Armenian foreign ministers that this status would be
determined by the vote Enhanced Coverage Linkingvote -Search using:
Biographies Plus News News, Most Recent 60 Days of the Karabakh
people themselves.

These are the basic principles mentioned earlier, the approximate
framework, Bryza said. Nothing has been agreed so far, he said.

What we have proposed is that Armenia should withdraw its troops from
the seven regions surrounding Nagorno Karabakh, peacekeepers should be
introduced to enable the return of displaced persons and refugees,
a corridor must be created which would link Armenia and Nagorno
Karabakh, and a vote Enhanced Coverage Linkingvote -Search using:
Biographies Plus News News, Most Recent 60 Days – be it a plebiscite
or a referendum, whatever, as long as it is a voting Enhanced Coverage
Linkingvoting -Search using: Biographies Plus News News, Most Recent
60 Days process – should be held to determine the future of Nagorno
Karabakh, its future status," Bryza said.

We do not know exactly when this will happen, he added.

All these modalities should be discussed, said Bryza.

ONLY REFERENDUMS CAN RESOLVE TERRITORIAL CONFLICTS – ABKHAZ FOREIGN MINISTRY

Interfax News Agency
Aug 4 2008
Russia

The Abkhaz Foreign Ministry has called on the world community to
recognize the results of the referendums conducted in the unrecognized
republics on the post-Soviet space.

The Abkhaz Foreign Ministry published a statement made by U.S.

Assistant Secretary of State Matthew Bryza in which he has proposed
to make a referendum in Nagorno-Karabakh for the local residents to
resolve the issue of independence themselves.

The Abkhaz Foreign Ministry said this proposal was "most constructive
and rational."

"Only such a proposal will make it possible to find a way out of the
blind alley that has persisted for many years and take this region
out of the economic stagnation and isolation offering hope for lengthy
peace and development to the residents of Nagorno-Karabakh," it said.

However, the Abkhaz Foreign Ministry regrets that the world community
and mediators in the Georgian-Abkhaz negotiating process ignored the
results of the referendum and are still insisting on Abkhazia’s return
to Georgia as an autonomy.

The Abkhaz authorities have declared that Abkhazia shall not return to
Georgia and have refused to discuss the issue of Abkhaz’s political
status with anybody. The status was determined by the people of
Abkhazia at a referendum in October 1999. At that time, 97% of the
population voted for Abkhaz independence.

PHYSICS: FINDINGS FROM H.B. NERSISYAN AND CO-AUTHORS BROADEN UNDERSTANDING OF PHYSICS

Science Letter
August 5, 2008

According to recent research published in the journal Physical
Review E, "The electric microfield distribution (MFD) at a neutral
point is studied for two-component (TCP) electron-ion plasmas using
molecular-dynamics simulation and theoretical models. The particles are
treated within classical statistical mechanics, using an electron-ion
Coulomb potential regularized at distances less than the de Broglie
length to take into account quantum-diffraction effects."

"Corrections to the potential-of-mean-force exponential (PMFEX)
approximation recently proposed for the MFD at an impurity ion in a
strongly coupled TCP [Nersisyan et al., Phys. Rev. E 72, 036403 (2005)]
are obtained and discussed. This has been done by a generalization
of the standard Baranger-Mozer and renormalized cluster expansion
techniques originally developed for the one-component plasmas to the
TCPs. The results from this theoretical model are compared with those
from molecular-dynamics simulations. In particular, for a strongly
coupled TCP with an ionic charge Z> 5 the agreement with numerical
simulations is excellent," wrote H.B. Nersisyan and colleagues (see
also Physics).

The researchers concluded: "For still increasing coupling we
furthermore found that the PMFEX scheme becomes insufficient to
predict the MFD at a neutral point, while its improved version quite
well agrees with the simulations."

Nersisyan and colleagues published their study in Physical Review E
(Renormalized cluster expansion of the microfield distribution in
strongly coupled two-component plasmas. Physical Review E, 2008;77(5
Part 2):6409).

For additional information, contact H.B. Nersisyan, Institute
Radiophys & Electrical, Division Theoret Physics, Alikhanian Bros
St. 1, Ashtarak 378410, Armenia.

The publisher’s contact information for the journal Physical Review
E is: American Physical Society, One Physics Ellipse, College Pk,
MD 20740-3844, USA.

From: Emil Lazarian | Ararat NewsPress

NUCLEAR PHYSICS: STUDY DATA FROM YEREVAN STATE UNIVERSITY UPDATE KNOWLEDGE OF NUCLEAR PHYSICS

Science Letter
August 5, 2008

According to recent research published in the journal Nuclear
Instruments & Methods in Physics Research Section a – Accelerators
Spectrometers Detectors and Associated Equipment, "A new class
super-broad band, nano-scale-resolution position sensor is tested. It
is used as an additional sensor in seismograph."

"It enables to extend the band and enhance the sensitivity of the
available technique by at least an order of magnitude. It allows
transferring of mechanical vibrations of constructions and buildings,
with amplitudes over 1 nm, into detectable signal in a frequency
range starting practically from quasi-static movements. It is based
on detection of position changes of a vibrating normal-metallic plate
placed near the flat coil-being used as a pick-up in a stable tunnel
diode oscillator. Frequency of the oscillator is used as a detecting
parameter, and the measuring effect is determined by a distortion of
the MHz-range testing field configuration near a coil by a vibrating
plate, leading to magnetic inductance changes of the coil, with a
resolution similar to 10 pH. This results in changes of oscillator
frequency. We discuss test data of such a position sensor, installed
in a Russian SM-3 seismometer, as an additional pick-up component,
showing its advantages compared to traditional techniques. We also
discuss the future of such a novel sensor involving substitution of
a metallic coil by a superconductive one and replacement of a tunnel
diode by an S/I/S hetero-structure-as much less-powered active element
in the oscillator, compared to tunnel diode," wrote S. Gevorgyan and
colleagues, Yerevan State University (see also Nuclear Physics).

The researchers concluded: "These may strongly improve the stability
of oscillators, and therefore enhance the resolution of seismic
techniques."

Gevorgyan and colleagues published their study in Nuclear Instruments
& Methods in Physics Research Section a – Accelerators Spectrometers
Detectors and Associated Equipment (A single-layer flat-coil-oscillator
(SFCO)-based super-broadband position sensor for nano-scale-resolution
seismometry. Nuclear Instruments & Methods in Physics Research Section
a – Accelerators Spectrometers Detectors and Associated Equipment,
2008;589(3):487-493).

For additional information, contact S. Gevorgyan, Yerevan State
University, Dept. of Physics, 1 Alex Manoogian St., Yerevan 0025,
Armenia.

The publisher’s contact information for the journal Nuclear Instruments
& Methods in Physics Research Section a – Accelerators Spectrometers
Detectors and Associated Equipment is: Elsevier Science BV, PO Box 211,
1000 AE Amsterdam, Netherlands.

DENMARK’S FLSMIDTH & CO A/S SUPPLIES EQUIPMENT TO COPPER MOLYBDENUM PLANT IN ARMENIA

Nordic Business Report
August 5, 2008 Tuesday

Danish cement and minerals technology supplier FLSmidth & Co A/S
(OMX Copenhagen: FLS) said on Monday (4 August) that it has won
a USD47m equipment order from Teghout cjsc, part of the Armenian
company Vallex Group.

The order covers primary comminution and classification equipment for
the production of copper molybdenum, including a SAG mill, a ball mill,
crushers, hydrocyclones and two complete millMax pumps, FLSmidth said.

The equipment will be delivered for a plant at Armenia’s second-largest
copper molybdenum deposit, some 200 kilometres north of Yerevan. The
equipment will ensure the plant a feed capacity of 900 tonnes per hour.

The new order is FLSmidth’s second major minerals order in Armenia
in 24 months.

FLSmidth & Co, headquartered in Copenhagen, Denmark, provides
engineering services for the global cement and minerals industry. The
group has 9,400 employees and reported revenue of DKK19.97bn in 2007.

One British pound (GBP) is worth approximately 1.98 US dollars
(USD). One British pound (GBP) is worth approximately 9.45 Danish
kroner (DKK).

CENTRAL BANK OF ARMENIA PRESENTS YET ANOTHER MODEST INTEREST RATE RISE
by Venla Sipila

World Markets Research Centre
Global Insight
August 5, 2008

The board of the Central Bank of Armenia (CBA) has decided to lift
its official refinancing rate to 7.50%, ARMNIFO News reports. This
move presents a 25 basis point increase in the policy rate, the
seventh such move in as many months. The decision closely follows
the publication of July inflation data, which showed month-on-month
(m/m) deflation of 2.2%, but also renewed speeding up of annual price
growth to 10.7% (see Armenia: 4 August 2008: ). The CBA analysed that
the recent easing of some food prices in international markets has
not filtered though to domestic inflation while high energy prices
continue to present second-round pressure on non-food and service
prices. The Bank further indicates that the behaviour of world market
oil prices continues to signal uncertainty, even though they have
fallen modestly in the very recent developments. The CBA adds that
further revisions in the policy rate will depend on the impact of
international food prices on the domestic market.

Significance: The further increase in the interest rate was expected,
given that the Armenian inflation rate keeps running well above the
CBA’s target rate of 4%. The CBA has in recent years proven fairly
competent in its monetary policy, showing ability and willingness to
remain vigilant regarding inflation control. The Armenian government
has also recently pledged wide-ranging efforts to curb rapid price
rises. However, the central bank’s key means for curbing inflation in
the still relatively undeveloped financial environment has been letting
the dram appreciate considerably in response to strong remittance and
foreign investment inflows. In addition to inflation being pushed
upwards from the cost side due to high prices of food and energy,
demand-side price pressures also continually play a role, as the robust
Armenian GDP growth has proved surprisingly reluctant to cool. As
domestic demand is partly boosted by high budget spending, including
fiscal restraint would be advisable as part of inflation-controlling
efforts, as also recently urged by the International Monetary Fund
(IMF; see Armenia: 23 June 2008:).