Author: Andres-Papazian

ZHAMANAK: HEAD OF NATIONAL SECURITY SERVICE “VERY KIND” TO BEKLEVIC

news.am
Nov 2 2010
Armenia

Talking to the Zhamanak newspaper, leader of Strong Turkey Party Tuna
Beklevic told the details of his visit to Armenia.

“On October 29, at about 1:00 p.m. we retuned to the Armenian hotel
to plan our future actions and get ready for planned interviews
with different TV channels. Suddenly 5-6 people appeared in the hall
introducing themselves as officers of National Security Service of
Armenia and asked to follow them. They were very kind to us. We also
had an interpreter. Then we were welcomed by the head of National
Security Service who asked several questions regarding our statement
on crossing of the Armenian-Turkish border on October 10. We stayed
in the room for some time and then were “asked” to immediately leave
Armenia’s territory. They followed us till we crossed the border. The
issue of border crossing is closed for us and we are not going to
raise it again,” Beklevic told the newspaper.

From: A. Papazian

AZERBAIJANI FOREIGN MINISTRY: ARMENIA SHOULD REALIZE THAT RENAMING AZERBAIJANI CITIES HINDERS CONSTRUCTIVE NEGOTIATION PROCESS
Trend S.Agayeva

Trend
Nov 2 2010
Azerbaijan

02.11.2010 16:29 EDITOR’s NOTE: Azerbaijani Foreign Ministry
spokesman’s remarks added after the third paragraph

The Azerbaijani Foreign Ministry considers a decision of
self-proclaimed “Nagorno-Karabakh Republic” to rename the Azerbaijani
Agdam region by giving it an Armenian name “Akna” ridiculous.

“This decision of self-proclaimed “Nagorno Karabakh Republic” causes
laugh,” Foreign Ministry spokesman Elkhan Polukhov told Trend.

By the decision of the government of self-proclaimed “Nagorno Karabakh
Republic”, the Agdam region was renamed as “Akna” and became one of
the quarters of the Askeran city, Armenia Today reports.

“The value of this decision is only paper and ink that were used to
prepare this document,” Polukhov said. “But at the same time Armenia’s
attempts to introduce separatist formation as an independent state
by taking such steps and inviting various foreign visitors to the
occupied territories are surprising,” he added.

Polukhov said apparently still there are forces in the political
establishment of Armenia that are trying to destabilize the situation
instead of continuing the constructive dialogue by seeking to reach
a comprehensive peace in the region.

The Armenian political elite must understand that this kind of
ridiculous steps can lead to serious consequences, Polukhov stressed.

“Experience shows that foreigners, invited by the Armenian side to the
Nagorno-Karabakh, usually refuse if they learn about the situation
before the trip. The fact on the French actor Gerard Depardieu and
Russian singer Katya Lel, who acknowledged that were brought to
the Nagorno-Karabakh by fraud, can serve as a striking example,”
Polukhov said.

The Armenian side must realize that such attempts can in no way
promote a lasting peace in the region and hampers the constructive
negotiation process.

The conflict between the two South Caucasus countries began in 1988
when Armenia made territorial claims against Azerbaijan. Armenian
armed forces have occupied 20 percent of Azerbaijan since 1992,
including the Nagorno-Karabakh region and 7 surrounding districts.

Azerbaijan and Armenia signed a ceasefire agreement in 1994. The
co-chairs of the OSCE Minsk Group – Russia, France, and the U.S. –
are currently holding the peace negotiations.

Armenia has not yet implemented the U.N. Security Council’s four
resolutions on the liberation of the Nagorno-Karabakh and the
surrounding regions.

From: A. Papazian

HAYOTS ASHKHARH: BAKU KEEPS ON PURSUING BLACKMAIL POLICY

news.am
Nov 2 2010
Armenia

Following the President’s meeting in Astrakhan, the Azerbaijani
leadership’s position testifies the OSCE Minsk Group co-chair
countries, particularly Russia, expecting concessions from Baku at
Astana Summit, found itself in a situation “give the wolf the best
food, but he would hanker for the wood”, Hayots Ashkharh daily writes.

The general principles proposed by RF President and supported by U.S.

and France to reach a mutual understanding are torpedoed by Azerbaijani
authorities since the very day they were formulated.

…. Meanwhile, according to the Azerbaijani side, constructiveness
of the Armenia’s stance should undergo changes until OSCE Summit
in Astana. It suggests Baku “takes” Russian President’s optimism
in a very peculiar way, particularly considering it as a prospect
for the change of Armenia’s position under the pressure of mediator
countries, specifically Russia.

In this context, it is noteworthy Azeri President’s statement in
Ukraine and Defense Minister Safar Abiyev’s statement as new attempts
of blackmail policy. Certainly, the tone of this Azeri frustrated
serviceman is not that warlike, but this does not change the substance
of the issue, as Azerbaijan fails to refrain from use of force.

Moreover, the Azerbaijani side keeps on firing at Karabakh defensive
positions in the line of contact of NKR-Azerbaijan armed forces.

From: A. Papazian

ARMENICUM FREE OF CHARGE FOR HIV/AIDS PATIENTS

news.am
Nov 2 2010
Armenia

The 2011 draft budget provides for 50 million AMD (about U.S.

$140,000) for free treatment of HIV/AIDS patients with ARMENICUM. It
is for the first time that funds have been budgeted for this purpose.

The funds will be sufficient for 157 patients, whereas about 1,000
HIV/AIDS patients have officially been registered in Armenia.

The average price of the drug is 31,900 AMD (about U.S. $90).

From: A. Papazian

KEY TURKISH ISSUES AT PLAY IN US ELECTIONS

Hurriyet
Nov 2 2010
Turkey

People arrive for the ‘Rally to Restore Sanity and/or Fear’ in
Washington, DC. The midterm elections are expected to see the
Democratic Party cede power to the Republicans. AFP photo

As millions of Americans go to the polls Tuesday for a midterm election
seen as a referendum on Barack Obama’s two years as president,
U.S. relations with Turkey also hang in the balance.

The midterm polls will see 37 seats in the 100-member Senate up for
election, as well as all 435 seats in the House, the lower chamber of
the U.S. Congress. Though Obama’s administration has expressed
confidence about its continued relationship with Turkey’s newly
energized ruling party, many lawmakers in the restless Congress seek
retaliation against Turkey for Ankara’s improved ties with Iran
and worsened relations with Israel.

The first major test in the post-election period will come at a NATO
leaders’ summit in Lisbon on Nov. 19 and 20, when the alliance will
seek to endorse a common position on a U.S.-proposed missile shield
to protect NATO members from ballistic threats from rogue states.

Washington seeks to deploy the system’s special X-band detection
radars on Turkish soil, an issue that has added further tension to
the already stressed relationship between the two allies.

While the United States has designed the missile-defense system
specifically as protection against Iran, Turkey has said it perceives
no such threat from its eastern neighbor. Ankara has conditioned
its support for the project – crucial given NATO’s process
of making decisions by consensus – on unanimous NATO backing, a
guarantee that its entire territory will be protected and no specific
countries being singled out as potential threats.

Whether or not Turkey endorses the missile-defense project will be
of key importance for its relations with Washington and the rest of
the West. One danger for Turkey is a vote on a resolution recognizing
Armenian claims of genocide that the House Foreign Affairs Committee
narrowly approved in March. The Obama administration has thus far
stood firm in its opposition to the bill, but U.S. Armenians seek
a full House vote on the resolution during the “lame-duck”
session that will follow Tuesday’s election.

If the legislation is not voted on this year, it will expire,
and pro-Armenian lawmakers will have to reintroduce it in the new
Congress to be elected Tuesday, which will take office Jan. 3,
2011. Any congressional sessions held between the election and that
date are called “lame duck” sessions: ones that take place
after the election for the next Congress has been held, but before the
current Congress has reached the end of its constitutional term. The
significant characteristic of such a session is that its participants
are the sitting members of the existing Congress, not those who have
just been elected to the new Congress.

Referendum on Obama

The midterm elections are expected to see Obama’s Democratic
Party cede power to the opposition Republicans in the House of
Representatives, while both parties will try hard to obtain the
majority in the Senate. The upper chamber of Congress is currently
controlled by the Democrats.

The results from Gallup’s Oct. 28-31 survey of 1,539 likely
voters found that 52 percent to 55 percent of likely voters prefer the
Republican candidate and 40 percent to 42 percent favor the Democratic
candidate on the national ballot.

Obama campaigned in Ohio on Sunday in an effort to prevent what would
be one of the biggest setbacks for a U.S. president in recent times,
while Republicans seemed confident of their expected success.

The Republican Party needs to pick up only 40 Democratic seats to
regain a majority in the 435-seat House. The Senate is up for grabs,
but even if the Democrats retain their control there, their majority
will definitely shrink.

If the Republicans win the House, Democratic House Speaker Nancy Pelosi
will have to cede her post to John Boehner, the present Republican
minority leader. Analysts suggest that Obama’s disappointing
performance in handling the aftermath of the global financial crisis
and the wars in Afghanistan and Iraq, coupled with a general public
dissatisfaction over the present Congress, are key factors diminishing
the Democrats’ strength.

In the last general elections in 2008, the Democratic Party won a
landslide victory, capturing the presidency and comfortable majorities
in both chambers of Congress.

Still no US ambassador in Turkey

The pending lame-duck session of Congress may also affect the position
of U.S. ambassador in Ankara, a post that has remained empty for more
than three months.

The last ambassador to Ankara, James Jeffrey, now is ambassador to
Baghdad, and his presumed successor, Frank Ricciardone, has thus far
failed to win Senate confirmation, with prominent Republican Senator
Sam Brownback effectively blocking his appointment.

If Brownback lifts his veto – and there has been no sign of that so
far – Ricciardone could be confirmed in the Senate’s lame-duck
sessions, which are scheduled to begin Nov. 15. If Brownback refuses
to change his stance, however, or if the lame-duck Senate fails
to vote on the appointment, the post of ambassador to Ankara would
remain vacant at least until the new Congress convenes in January.

Alternatively, Obama might withdraw Ricciardone’s nomination and
propose someone else to this post.

Obama’s ambassadorial picks for Syria and Azerbaijan, Robert
Ford and Matt Bryza, respectively, also are facing vetoes in the
Senate. U.S. State Department spokesman P.J. Crowley has said the
Senate’s failure to approve Obama’s ambassadorial nominees
has hampered U.S. policy.

“It does have an impact,” Crowley said Oct. 11. “These
are vitally important countries to the future of the region. They are
countries that we need that kind of day-to-day interaction with.”

The spokesman said the State Department was “hopeful that when
the Senate reconvenes after the election that their nominations will
go forward. We continue [to be] in consultation with the Senate on
those nominations.”

From: A. Papazian

TURKEY’S GOAL TO DRIVE WEDGE BETWEEN ARMENIA AND DIASPORA, EXPERT SAYS

news.am
Nov 2 2010
Armenia

Turkey wants to prove that it allegedly has friendly relations with
neighbors, excluding Armenia from a list of countries posing threat,
Turkish studies expert Ruben Melkonyan told NEWS.am.

“In fact Armenia cannot be considered as an external threat to Turkey.

However, Turkey’s actions pursue far-reaching goal to drive a wedge
between Armenia and Diaspora. This step may be followed by a statement
indicating that Diaspora, not Armenia, is posing threat from the
viewpoint of international recognition of the Armenian Genocide,”
the expert said.

As to the fact that Israel is considered a threat by Turkey, Melkonyan
noted that doing so Ankara wants to strengthen its position in Muslim
world and show that Turkey’s actions against Israel are intentional
but not just demonstrative.

As NEWS.am reported earlier, Turkish National Security Council excluded
Armenia, along with Syria, Bulgaria Iran and Georgia from the list
of countries posing external threat. The council adopted national
security strategy for 5 years. Ankara termed Israel’s actions as
threat for the first time since 1949.

From: A. Papazian

TURKISH-ISRAELI RELATIONS HEAD TO UNCHARTED WATERS

Today’s Zaman
Nov 2 2010
Turkey

It is expected that after the retirement of Israeli Ambassador Gaby
Levy at the beginning of next year, Ankara and Tel Aviv’s already
troubled relations will head to uncharted waters. It is not clear yet
if Israel will seek an agreement for a new ambassador and, even if
it does, it is not clear if Turkey will give a green light to a new
ambassador, especially while Turkey is not represented in Israel at the
highest level. After the killing of nine Turkish citizens by Israeli
soldiers in international waters in a ship carrying humanitarian aid
to besieged Gaza, already-deteriorated ties between the two countries
worsened further.

Turkey recalled its ambassador, Oguz Celikkol, and since then
Turkey has not been represented in Israel. Israeli Embassy spokesperson
Amit Zarouk confirmed that Ambassador Levy will be retired at the
beginning of next year but denied the rumors that he had in actuality
already retired but asked to stay in Turkey in order to not to trouble
the relations further.

When he was if the Israeli government sought an agreement for a new
ambassador he said he is not updated on the issue. Diplomatic circles
in Ankara are arguing that Israel might not appoint a new ambassador
and, even if Tel Aviv takes the step, it is not clear if Ankara
will agree on a new one, especially if Turkey’s demands for an
official apology and compensation regarding the flotilla issue are
not meet until that time.

Alon Liel, who served as a diplomat in Turkey and former
director-general of the Israeli Foreign Ministry, told Today’s
Zaman that the Israeli Foreign Ministry has already started the
process of looking for a new ambassador to Turkey and there are
already several candidates for the position:

“But the question is if it will be a wise to thing to do that
since Turkey might not agree to the appointment. Israel should examine
the situation very carefully, otherwise it will be an embarrassment
for Israel. If I were the director-general of the Foreign Ministry I
would not take the risk. The way to solve this is to ask to Turkish
side and maybe they did,” he said.

Professor Hasan Köni from Culture University said that if the US
Republicans lose in the upcoming mid-term elections as is expected
and the Jewish lobby-supported Democrats are strengthened, then most
probably Israel will not appoint a new ambassador.

“Not to appoint a new ambassador would mean lowering the level of
the relations de facto and it would not be a wise thing to do. I think
this issue will lead to discussions in the Israeli cabinet. Lieberman
will be against the appointment of a new ambassador but Defense
Minister Ehud Barak might be in favor of the idea. But if Israel
appoints a new ambassador, Turkey might lend its support. Ankara
will have the chance of saying, ‘They are not acting wisely,
but I am still tolerating them,'” Köni told Today’s Zaman.

Gaby Levy, who was actually born in Bergama, was appointed as an
ambassador to Turkey in 2007 but shortly after his appointments,
due to a serious of events, relations started to deteriorate.

The National Security Council (MGK) last week, while revising the
security document referred to as the “Red Book,” in which
the main threats to Turkey’s security are outlined, mentioned
Israel’s instability-inducing actions in the Middle East as a
threat. After this move Israeli Tourism Minister Stas Mizeshnikov
urged the citizens of Israel to boycott Turkey as a matter of honor.

Relations between the two countries started to falter at the end of
the 2008 when Turkey was mediating talks between Syria and Israel to
secure a peace deal. Ankara was expecting an agreement when Israel
launched a large-scale aggression in Gaza, killing about 1,400 people
in the coastal strip at the end of a three-week offensive in the
winter of 2008-2009. It was the beginning of the decline in relations.

At that time, Turkish Prime Minister Recep Tayyip Erdogan harshly
criticized Israel and Israeli President Shimon Peres in a meeting in
Davos in January 2009.

Later, at the beginning of this year, Israeli Deputy Foreign Minister
Dany Ayalon, summoned Oguz Celikkol, the Turkish ambassador to
Israel at that time, to express outrage over an episode of the popular
Turkish television series, “Valley of the Wolves: Ambush,”
which depicted Israeli intelligence service Mossad agents spying
inside Turkey and kidnapping Turkish babies.

At the beginning of the meeting, Ayalon was seen telling the cameramen
to film him and his aide sitting on tall chairs, and Celikkol on a
lower chair, with the Israeli flag in the middle. The ambassador was
also filmed waiting in a corridor for the meeting to begin, and when
it did, he was offered nothing to drink or eat.

But the last straw was the killing of the Turkish citizens on a ship
bound to Gaza. As an example of deteriorated relations, Levy was not
invited to the traditional ifthar diner of the ruling Justice and
Development Party (AK Party) this year. Levy has been criticized by
his own minister Lieberman for being sided with Turkey.

It is expected that Israel, while giving its decision, will recall
another ambassador crisis that occurred during a period of excellent
relations. In 1997, Israel requested appoint history professor Ehud
Toledano as ambassador to Turkey, but Ankara simply ignored this
request due to previous remarks Toledano had made about the killing
of Armenians during World War I.

Ozdem Sanberk, the director of the International Strategic Research
Center (USAK) and the Turkish member of the panel established by UN
Secretary-General Ban Ki-moon to investigate the deadly attack of
Israeli soldiers on the flotilla, said the precondition for putting
relations back on track is to let the flotilla issue go, but this
can be ensured only after apology and compensation. “I think
under these conditions the governments of both sides should refrain
from acts that will complicate the situation further,” he told
Today’s Zaman.

From: A. Papazian

A REPUBLICAN VICTORY MAY WIDEN RIFTS BETWEEN TURKEY, US

Today’s Zaman
Nov 2 2010
Turkey

House of Representatives Speaker Nancy Pelosi (D-CA) is likely to
be replaced by Ohio Congressman John Boehner if the Republicans take
the House.

A probable Republican win in today’s US congressional elections is
likely to have a significant impact on communication between Ankara and
Washington since key players taking a role in determining US Congress’
approach towards Turkey and maintaining certain balances between the
two capitals will change with such elections results.

Republican dominance in the House of Representatives along with the
Democrat administration in the White House will weaken coordination
between the government and the legislation in the field of foreign
policy. For instance, if the Obama administration wants to block any
congressional move against Turkey, it will have to persuade opposition
party lawmakers. Turkey’s vote against further UN sanctions on Iran
and the deterioration in Turkish-Israeli ties have already raised
questions in US Congress on the future of ties with Ankara. Last
month, the US called on Turkey to back NATO’s proposed missile defense
system and took steps to counter growing resistance in US Congress
to any future sale of drone aircraft. The atmosphere in Congress,
which is not favorable for Turkey, is not likely to change for the
better after the elections, since members in the new Congress will
prioritize the concerns of Armenian-Americans and Greek-Americans
when shaping their policies.

Turkey’s vote against Iran sanctions and the crisis with Israel have
already raised questions in the US Congress on the future of ties
with Ankara. The atmosphere is unlikely to change for the better,
since members in the new Congress will prioritize concerns of
Armenian-Americans and Greek-Americans

Officials in Ankara, in line with foreign policy traditions of the
Turkish capital, have refrained from making any comment on the probable
composition of US Congress after the elections and the results of
this composition in the foreign policy arena. The Israel lobby —
which wields significant influence in both houses of Congress and was
upset with Turkey’s harsh rhetoric after Israel’s deadly assault on
a Gaza-bound flotilla — is known to be influential among the more
conservative wing of the Republican Party.

Additionally, the Republicans generally have an ideological line that
is more nationalistic and a pro-war rhetoric that attaches little
importance to concerns of international legitimacy when it comers to
foreign policy issues. Republicans assume a more hawkish policy than
Democrats towards Iran. Such hawkish policies are not in line with
Ankara’s peaceful line, which constantly seeks consensus on ways
to solve global disputes.

Pentagon and legislation Republicans are also expected to be
open to suggestions from the Pentagon as they generally pay heed
to the Pentagon’s security concerns. The Pentagon, which
attaches importance to military cooperation with Turkey and, thus,
a relationship with the Turkish General Staff, may become one of
the units with the highest capability of lobbying in favor of Turkey
in Congress.

For the issue concerning the pending resolutions for denouncing and
recognizing as a genocide the World War I-era killings of Anatolian
Armenians by Ottoman forces, eyes in Turkey will have to be on
the speaker, the majority group leader and the chair of the foreign
affairs committee at the House of Representatives. A largely symbolic
resolution on the Armenian claims was passed by a House committee in
March, but amid protests from Ankara, the House Democratic leadership
never brought it to the chamber’s floor for a vote.

Current Speaker Nancy Pelosi, democrat of California, which has a large
Armenian community, is likely to be replaced by Ohio congressman John
Boehner if republicans take the House. Unlike California, there is no
significant Armenian electorate in Boehner’s election district.

During a vote on a similar House committee resolution in autumn
of 2007, Boehner had opposed the resolution on ground of national
interests. At the time, Boehner had called the debate on the resolution
a “debacle” by democratic leaders. “This entire situation
calls their judgment into question,” said Boehner.

In previous periods of Republican control of the House
of Representatives, party leaders had blocked attempts to pass
resolutions recognizing the World-War I-era killings of Armenians by
Ottoman Turks as genocide.

Following the elections, republican Eric Cantor of Virginia is widely
expected to become House majority leader in place of democrat Steny
Hoyer of Maryland. Hoyer is sympathetic to the Armenian Diaspora and
is a member of the congressional Armenian caucus, while Cantor is a
pro-Israel politician.

Howard Berman, a congressman from California who serves as the
democratic chairman of the US House Committee on Foreign Affairs, will
lose this post following the elections. Berman’s performance as
the committee chairman during the March committee voting was subject
to harsh criticism by Turkish leaders, who accused him of failing
to display a professional stance for pressuring committee members to
vote for the resolution.

Republican congresswoman Ileana Ros-Lehtinen of Florida, who is
poised to replace Berman, is a pragmatic politician who tries to
get along with different lobbying groups. The maternal grandparents
of Ros-Lehtinen, the first Hispanic woman elected to Congress, were
Sephardic Jews from Turkey who had been active in Cuba’s Jewish
community. In March she had voted against the Armenian resolution.

‘National interests argument’ The whole picture of the day
after today’s elections show that politicians who support Armenian
issues like activists will be less likely to be key players in the
House as democrats from California will be eliminated. Nevertheless,
if the US Congress want to hurt Turkey and dare to do so, the Armenian
resolution can still be revitalized.

It is also still possible to have the “national interests
argument” prevail in US Congress at a time when NATO ally Turkey
is overseeing activities that decrease direct or indirect risks for
US troops in Iraq and Afghanistan.

For some time the US administration has been having some difficulty
in persuading Congress to approve Turkish requests for weapons sales.

Time will reveal the approaches of the committee members in the new
Congress concerning the same issue. Having committees related to
weapons sales chaired by republicans may lead to relief to a certain
extent, as the Republican party is known to be close to the arms
lobbies based in the United States. Yet, it wouldn’t be realistic
to expect republicans — who heed national security concerns — to
stay silent if Turkey continues to not be on the same page with some
vital US policies; for example, if it eventually opposes the planned
NATO missile defense system.

The Obama administration, meanwhile, is expected after the elections
to intensify its efforts to put an end to the US Senate’s delay
in confirming US President Barack Obama’s choice of ambassador to
Turkey. In July, he nominated career diplomat Francis Ricciardone as
ambassador to Turkey. Yet, Ricciardone’s long-awaited confirmation
has been delayed since then.

In a bid to reach out to the US Congress, a delegation from the ruling
Justice and Development Party (AK Party) had talks in Washington
in June, while a bureaucratic delegation led by Foreign Ministry
Undersecretary Feridun Sinirlioglu also had talks in the Capitol
Hill in late August. At the time, a group of US lawmakers warned
Turkey that its ties with Washington would suffer if it continued
on what they considered an anti-Israel path, with both some leading
republicans and democrats denouncing NATO ally Turkey for supporting
the convoy of aid ships that tried to run the Israeli blockade of Gaza.

The lawmakers also criticized Turkey’s opposition to the UN
Security Council resolution extending punitive sanctions on Iran for
its secretive nuclear program.

From: A. Papazian

ON ANKARA’S “SHUTTLE DIPLOMACY” WITH ARMENIA

news.am
Nov 2 2010
Armenia

Another possible “smart” step by the Turkish authorities, which are
trying to simulate an intensified Armenian-Turkish dialogue before
the international community is delegating members of the youth wings
of the ruling Justice and Development Party, the opposition Republican
People’s Party (CHP) and the Kurdish party Peace and Democracy Party,
the expert in Turkic studies Andranik Ispiryan told NEWS.am.

According to him, in sending the leader of the Strong Turkey Party
tuna Beklevic to Armenia pursued the same aim, namely, convincing
the international community that Armenia and Turkey had established
a dialogue – even if not at the highest level, but… However, the
expert stressed that Ankara failed to achieve its aim – making a stir
about Beklevic’s visit throughout the world – as the Turkish political
figure’s mission in Armenia partially failed. He was unable to “have
an audience” at the Armenian foreign office, which would give greater
weight to his “business trip.” Ispiryan stressed that Turkey will
not take more serious steps to revitalize its dialogue with Armenia,
as, on the threshold of parliamentary elections, the authorities will
not dare take such a risk.

The expert also pointed out that the Strong Turkey Party does not
have any serious political weight. It does not plan to take part
in the parliamentary elections. It only plans to run for local
government bodies.

From: A. Papazian

ST GREGORY’S FIGHTS FOR SURVIVAL
by David Catt

Cumberland Courier Newspapers

Nov 2 2010
Australia

A DECISION by the Commonwealth Bank to freeze a school’s bank accounts
over a loan dispute has left six students without a place of learning.

St Gregory’s Armenian School at Rouse Hill was liquidated by the
Supreme Court and deregistered by the Education Department last month
after the school’s directors, Daniel and Michael Ghoughasian, could
not access its account to pay teachers.

The bank froze the school’s accounts in May 2008 and took the school
to court in March this year in an attempt recover $670,000 it had
loaned the school to cover debts incurred in the process of preparing
to build a high school.

In court, the bank claimed the school was in default of its loan
and had no viable means of repaying, although no repayments were due
until building was completed.

Associate Justice Harrison found in favour of the school.

She ruled that the bank had failed to give the school adequate notice
of its demand for immediate repayment, and that the original loan
was a commitment by the bank to see the building project through
to completion.

However, the bank did not unfreeze the school’s account, which
contained $160,000.

The school announced legal action against the bank to reclaim costs and
to have its accounts unfrozen but in June 2010, with that action still
pending, former teachers began court proceedings against the school.

The teachers, made redundant in 2008 because of falling enrolments,
were claiming unpaid redundancies worth $100,000.

Justice White found in favour of the teachers and found grounds to
place the school, with assets of $10 million, into liquidation.

The Commonwealth Bank has a writ of possession for the school but can’t
sell it because the Ghoughasians still have a registered mortgage on
the 4ha property. The brothers are back in court on Wednesday in an
effort to stop their names being removed from the mortgage.

* ST GREGORY’S Armenian School was opened in Mungerie Rd in Rouse
Hill in 1984 and is in the state’s top 50 schools, according to
NAPLAN testing.

The school was started to provide education for Armenian children
living in lower socio-economic areas of Sydney.

As the school only charged fees of $500 a year, it relied on
benefactors and government grants.

It is understood that the directors also poured in $15 million of
their own money to keep the school operating.

From: A. Papazian