Author: Badalian Vardan

BUDGET OF DEVELOPMENT AND PROSPERITY
Azat Artsakh – Nagorno Karabakh Republic (NKR)
30 Dec 04
Taking into account the fact during the discussion of the package of
the adherent documents of the state budget 2005 that there was
disagreement only in reference to one of the points of the bill `On
Amendments to the NKR Law on Income Tax’, we may state that on the
whole the government and the National Assembly achieved mutual
understanding. How would you explain this?` First of all, the
government had a serious and responsible approach towards the budget
for the next year assuring its realistic nature. Discussions at the
bodies of the executive, as well as the committees and factions of the
National Assembly in their turn favoured the accomplishment and
clarification of the document. As a result we worked out a document
which will not be an exaggeration to call a program for future
development. Naturally, this served as a basis for full mutual
understanding. – Although the economic year has not closed, it is not
difficult for the minister of finance and economy to present the
anticipated social-economic indices through the analysis of the
results. – First of all, I want to emphasize that the macroeconomic
rates describing the social and economic situation of the passing year
are promising and will serve as good basis for more serious programs
in the coming year. Observations show that the GDP of2004 will total
41.4 billion drams. In order to highlight the significance of this
number I will add that against the previous year it will grow by 15.3
per cent. We anticipate that budget revenues will total 4550.0 million
drams, that is to say, the growth against the previous year will total
43.5 per cent (3170.1 million drams in 2003). The volume of industrial
production will total 18 billion drams (11.1 billion in 2003), and
gross agricultural output will total about 22.3 billion drams,
exceeding the rates of the previous year by 62.2 and 6.1 per cent
respectively. In the republic about 137.0 million kWh of electricity
will be produced (in 2003 130.6 kWh) growing by 5 per cent. Thevolume
of capital building will total 9.2 billion drams (in 2003 8.7 billion
drams) increasing by 5.7 per cent against the previous year. In 2004
the number ofworkers in the republic will total about 34.7 thousand
people growing by 6.2 per cent (more than 2000 jobs). In 2004 the
average nominal salary will total 40 thousand drams (growing by 18.8
per cent), the income of the population will total 42.0 billion drams
(growing by 22.1 per cent). The volume of foreign trade of NKR in 2004
will total 60.2 billion drams growing by 23.6 per cent, export will
increase by 22.7 per cent (totaling 20.9 billion drams) and import by
24.1 per cent (totaling 39.3 billion drams). The total sum on credit
accounts ofthe population by December 1, 2004 was 9.5 billion drams
growing 2.2 times or by 5.2 billion drams since the beginning of the
year. The dynamics of growth of these indices testifies that
significant progress was achieved in the republic and a stable
economic sector was developed which supposes foreseeable
development. Now about macroeconomic forecasts for 2005. In 2005
social andeconomic policy of the Republic of Nagorni Karabakh will be
directed at the maintenance of the achieved high economic rates and
macroeconomic stability, improvement of the investment environment and
quality of life, continuous reduction of unemployment and solution of
social and economic problems. The average rateof the GDP for the years
2005-2007 is estimated about 11.3 per cent. In 2005 the estimated
actual growth of the GDP will total 11.5 per cent (48.0 billion
drams). The average index of the exchange rate of the Armenian dram
will be maintained in the correlation $1 for 500 AMD. In 2005 in the
republic capital building carried out on all the financial sources
will significantly exceed the level of the previous year. The
government will pay special attention to the development of small and
medium-size business which will become a significant factor in
creating jobs. Therefore in 2005 800.0 million drams will be directed
at development of small and medium-size business (against 200.0
million in 2004) of which 75 per cent will be spent on the development
of the agricultural sector (viticulture, cattle breeding, leasing of
agricultural machines, providing 200 million drams for each
branch). Here I should mention that about 30 per cent of the GDP of
the republic is provided by small and medium-size business owners. –
You mentioned that the growth of the gross agricultural output will
total 6.1 per cent. Compared to the growth of the GDP it falls back
ten times whereas there is more potential for development of
agriculture. – At the beginning of 2005 long-term programs for
development of the irrigation system will be launched (costing 500.0
million drams), as well as means will be provided for preservation of
forests (about 83.8 million drams). 50.0 million drams willbe provided
for restoration of forests. In 2005 tax policy will correspond to the
approaches adopted by the government in the recent years assuring the
development of the positive tendencies in the sphere, which will
favour thedevelopment of an active economic environment against the
general background of the economy and will result in economic
growth. – I think it will not be an exaggeration to say once again
that the budget of 2005 will traditionally have a social
character. How will this be expressed? – No doubt, the budget policy
of 2005 will focus on the solution of social problems, improvement of
quality of life on budget means. From January 1, 2005 the average
salary of teachers will grow up to 50500 drams (presently it is
30585), by 65.3 per cent. In 2005 the salaries of medical workers will
grow by almost 26 per cent totaling 36800 drams. The salaries of
workers of libraries, museums, cultural institutions and ensembles
will grow by 22.4 per cent (24 thousand drams). Pensions also will
increase since January 1, 2005. The basic pension will increase from
3000 in 2004 to 4000 in 2005 and the value of one year of service will
increase from 140 to160 drams. From January 1 the benefits of certain
groups of children will increase by 50 per cent. During the year
financial aid will be provided to 7 insecure groups. The veterans of
the Great Patriotic War, disabled, widows of the killed soldiers will
receive aid on the occasion of the 60th anniversary ofthe victory in
the Great Patriotic War on May 9 which will be doubled against 2004.
The state budget of 2005 having a social direction as the expenses on
the social sector total 58 per cent, as distinct from previous years,
significant means will be directed at the development of the sphere of
material production which will, in its turn favour economic
development. Thus, the brief picture of the 2005 NKR consolidated
budget is the following: income totals 9238.1 million drams, expenses
24178.1 million drams, deficit 14940.0 million drams. The budget
deficit will be made up on the means of the interstate loan providedby
the Republic of Armenia totaling 13636.6 million drams of which about
5.5 billion drams is accrued from duty payments at the customs border
of the Republic of Armenia for the consumers goods imported to NKR,
and 1303.4 million drams from other inner and outer sources. The
budget income in 2005 is estimated 6460 million drams against 4550.0
million drams in 2004, and the growth will total 42 per cent. I want
to draw your attention to the fact that only two years ago the actual
income of the state budget totaled 2235.0 million drams whereas the
index for the upcoming year already exceeds the level of 2002 three
times. As to the state budget expenses, since 2002 it has almost
doubled. The expected incomes of the community budget provide only 6.4
per cent of the consolidated budget revenues (tax on law, property,
local duties, and other types of income). The incomes of the NKR State
Fund of Social Insurance in 2005 willtotal 2732.1 million drams. In
2005 the state budget will provide 180.0 million drams for the
creation of the NKR real estate cadaster. – What is the picture of
budget expenses on separate spheres like? – 2005 NKR state budget of
expenses was worked out on the basis of macroeconomic forecasts and
budget rates for separate kinds of expenses. The measures for
improvement of the structure of the budget-finances institutions and
solution of social problems were also taken into account. At the same
time, the demand of maintaining the continuity ofthe measures provided
for by the 2004 budget was met. By the budget bill state budget
expenses were estimated 21400.0 million drams. Expenses on
educationand science total 16.3 per cent (3497.1 million drams) of the
total expenses. It is planned to open boarding schools from September
1, 2005 in Shoushi and Stepanakert to provide elementary and secondary
education to the children of socially insecure families. The estimated
expenses in the sphere of culture, youth and sport will total 748.4
million drams, which is 3.7 per cent of the budget expenses. These
include budget-financed institutions, competitions, services,
subsidizing of theatrical and concert institutions and editorial
houses. The 2005 state budget will provide 100.0 million drams for
restoration and repair of monuments. Taking into account the necessity
of development of sport in the republic, 98.9 million drams will be
provided for this purpose. The provided means will enable the
participation of our sportsmen in international competitions in
different sports and games. Of the sums provided for the development
of sport financial aid of 9.3 million drams will be provided to 15
sports federations and the NKR voluntary sports society. The expenses
in the sphere of health were planned 1210.0 million drams, which has
increased by 340 million since last year. The expenses in the sphere
of social security and social insurance will total 4490.0 million
drams which is 21.0 per cent of the budget expenses and has increased
by 317.7 million drams since last year. 576.6 million drams will be
provided for the benefits paid to separate groups of children. 190.0
million drams will be provided for the needs of the disabled of the
NKR defence and the families of the killed servicemen of which 150.0
million will be spent for providing families of killed soldiers with
apartments. Expenses in the sphere of agriculture will total 789.9
million drams of which 500.0 millionwill be spent on the programs of
irrigation. The financing of important activityin the sphere of
agriculture will continue (protection of plants, test for quality and
sorts of the seeds of crops, veterinary, sanitary service, etc.). –
What about expenses which are not in the main groups? – Transfers will
be made to the budgets of the municipalities totaling 592.6 million
drams. 3900.0 million drams have been planned for capital
investments. – Your opinion on the state budget not as a minister but
as a citizen of NKR. – Drawing your attention to the advantages of the
state budget 2005 I think the government is far from thinking that the
chief financial document of the coming year contains final settlements
of the problems in the spheres of life of the country as there remain
numerous unsettled problems. At the same time, working out the main
directions of social and economic development of the country in 2005,
we may state that the government showed a realistic approach in its
estimates, therefore the government is confident and determined that
it will bring into being its forecasts for 2005. The unprecedented
high social and economic rates of theclosing year underlie this
confidence. On the way of economic accomplishment NKR has achieved
significant progress. Using the occasion I wish our nation a HappyNew
Year and Merry Christmas.
M. PETROSSIAN.
30-12-2004

AzerNews, Azerbaijan
Dec 29 2004
Parliament speaker hopes for liberation of most Azeri territories
next year

Parliament speaker Murtuz Alasgarov believes that most of
Azerbaijan’s territories occupied by Armenia will be liberated next
year.
“I believe that a considerable part of our lands will be liberated in
2005”, Alasgarov told a plenary session of the parliament on Tuesday.
The speaker emphasized that the Azerbaijani government insists on a
stage-by-stage alternative for the conflict settlement, which
envisions withdrawal of all Armenian troops from the occupied
territories for a subsequent determination of the Upper Garabagh
status.

Augusta Free Press, VA
Dec 27 2004
A few questions
Guest View
Andy Whitehead
Special to The Augusta Free Press

As an American citizen, living in a free country that lives under the
rule of law, not the rule of despotism that characterizes Muslim
countries worldwide, I read with great interest the article posted in
The Augusta Free Press by Mr. Mohammad Musa (Inside the real face of
Islam) on Dec. 22.
Mr. Musa took exception to an article in the AFP penned by A.E.
Briseno (The real face of Islam) on Dec. 21.
Mr. Musa writes in his first paragraph: “I am deeply offended by the
untrue remarks …”
Mr. Musa should know that I, too, am “deeply offended” by the antics
of many Muslims today. However, before I get into my hurt feelings,
let me share some of my thoughts on Mr. Musa’s words.
Mr. Musa wrote that the unbiased history of Islam for the last 1,400
years finds Muslims being much more tolerant than Christians. Really?
Would Mr. Musa care to answer a few questions?
1. How many Christian churches and Jewish temples are there in Saudi
Arabia, the home of Islam’s two holiest cities? When can non-Muslims
visit these holy cities? Never? Why not?
2. Why did the Ottoman Empire commit genocide on the Armenians?
3. Why do Muslim holy warriors scream and yell “God is great” while
raping, killing and pillaging in Darfur? Why do they justify these
acts by claiming they are a mandate from Allah?
I will await Mr. Musa’s reply.
Mr. Musa writes that Spain was a very progressive, tolerant society
under the rule of Islam. Perhaps it was. However, how did the Muslims
come to control Spain? Were they invited in by the indigenous
population? Or did they invite themselves, by the sword? Who stopped
them from spreading beyond Spain, and why? How was Spain ruled during
the Islamic period, democracy or dictatorship?
I will await Mr. Musa’s reply.
Mr. Musa writes that non-Christians were persecuted in Christian
lands … perhaps this is true as well; however, what relevance does
this have today? Consider that Christianity went through a
reformation when the worst excesses were excised and Christian belief
was relegated to its proper place in society. When will Islam have a
reformation? When will Muslims rise up and cast out the hatemongers
and killers among them?
My hurt feelings arose on the morning of Sept. 11, 2001, as I watched
the Twin Towers, Pentagon and a field in Pennsylvania erupt in
flames. I watched people jump from the towers, choosing death by
jumping over living cremation in jet-fuel fires. To add insult to
injury, I watched many Muslims, both in the United States and
overseas, react with uncontrollable giddiness and glee at the Great
Satan being humiliated by the Sword of Islam.
As for American Muslims, there were a few lone voices crying out in
compassion, but most Islamic voices were tempered with words to the
effect that the United States should do more for Muslims, so things
like this won’t occur again … or to look inside ourselves to see
what we did that caused the terrorists to commit their acts. No, this
was not the Islamic leadership I, and many other Americans, expect
from the Muslim community in the United States.
Mr. Musa bases much of his letter on the past; let’s speak of the
present and future. What will Muslims do to curb those Muslims among
them who fly planes into buildings while praising Allah?
Before Mr. Musa writes back to refute my letter, perhaps he can tell
me when was the last time a Christian flew a plane into a building
while praising God? The last time a Christian cut off a Muslim’s head
on videotape while praising God? The last time a group of Christian
soldiers raped or murdered Muslims using God as justification?
Therein lays the difference between Islam and Christianity today.
Christianity has excised its demons … Islam has yet to do so.
I am not criticizing Islam; I am criticizing those Islamists who use
Islam as a weapon to justify their perversions and predations on the
world. I am also critical of those Muslims, who by their silence,
lend authority to those who defile the very religion they proclaim to
be peaceful.
Mr. Musa, I wish you well in your quest to build bridges among
cultures; but we have a culture in America today – it’s called
American. It means that we welcome all and celebrate everything that
is good about our fellow citizens. It also means we expect our new
citizens to have the same respect for us that we have for them.
To get respect, one has to earn it, not demand it. You don’t earn
respect by supporting militant Islam … or those who do.

Andy Whitehead is the director of Anti-Council on American-Islamic
Relations.
From: Emil Lazarian | Ararat NewsPress

ITAR-TASS, Russia
Dec 26 2004
Armenia to send 46 military experts to Iraq
26.12.2004, 03.29

YEREVAN, December 26 (Itar-Tass) – Armenian Defence Minister Serge
Sarkisyan said on Saturday that Armenia would send 46 military
experts to Iraq to operate as part of the Polish contingent. The
group includes the commander, a communications officer, a platoon
commander, three doctors, ten sappers and thirty drivers.
The minister said that the U.S. command and the Polish division would
arrange logistics support, medical services, housing and utilities
for the Armenian experts.
The Armenian Defence Ministry received approval from parliament to
send the experts to Iraq for a year.
Sarkisyan understands that the arrival of the Armenian contingent in
Iraq could put the Iraqi Armenians there under threat. However, he is
convinced that `more dangers will emerge’ if the republic refuses to
take part in the post-war stabilization in Iraq.
`Armenia will have humanitarian rather than military presence in Iraq
because the Armenian and Arab peoples are bonded with centuries-old
friendship,’ the Armenian defence minister emphasized.

North County Times, CA
Dec 26 2004
News briefs from around the state
By: Associated Press
GLENDALE — The American Armenian International College has donated
12,500 hard-to-find Armenian books to the library here in hopes the
city’s Armenian population will read them.
The donation places the library among those with the largest
Armenian-language collections in the country, according to library
experts. The books include hardcover volumes with titles and mandalas
imprinted in gold fleck and pocket-sized paperbacks by the
“Shakespeare of Armenia,” author Hovhannes Tumanian.
The trustees wanted to find a home for the books close to a
significant Armenian population, and Glendale seemed the logical fit,
said Jack Jandegian, vice chairman of the college’s board of
trustees. The college is based in La Verne.

More than one-third of Los Angeles County’s nearly 153,000 Armenians
live in Glendale, which has the second-largest population of people
of Armenian descent of any city in the country, behind Los Angeles.
The volumes include stories about King Argishti I, who lived in the
8th century B.C.; books about generals, colonels and soldiers who
fought in the Red Army during the Russian Revolution and anthologies
of Armenian poetry.
From: Emil Lazarian | Ararat NewsPress

Arafat Authority Owns a Piece Of Bowlmor Lanes
BY RODERICK BOYD – Staff Reporter of the Sun
The New York Sun
Dec 23 2004
Greenwich Village’s Bowlmor Lanes is widely known as a popular place
for drinks, children’s parties, or bowling a few games at night or
on the weekend. Less well known is that Yasser Arafat’s Palestinian
Authority gets a cut of every beer bought and pair of shoes rented
at Bowlmor, via the $799 million Palestinian Investment Fund.
Indeed, according to an analysis of the fund’s investment activity
from December 2002 to December 2003 done by Standard & Poor’s,
the Palestinian people have about $40 million worth of American
investments. These include California real-estate holdings, wireless
technology stocks, and a piece of a well-known private equity fund.
The majority of the fund’s investments were in the Middle East,
including a $285 million stake in an Egyptian mobile-phone company,
Orascam Holding SAE, and its affiliates, and a $71 million joint
venture with England’s BG group, to explore for natural-gas deposits
off the coast of the Gaza Strip.
The investment fund’s chairman and CEO, Mohamed Rachid, did not reply
to e-mail inquiries seeking comment.
The S&P valuation of the fund’s assets was commissioned by the fund
when executives of international donors requested an accounting of
the fund’s assets.
To invest in America, the S&P report shows, the fund set up holding
companies in Delaware. Much of the legwork was done by a McLean,
Va.-based private equity fund, SilverHaze Partners LLC, whose managing
partner is Zeid Masri, an American citizen with two relatives on the
fund board, according to Bloomberg News. Mr. Masri did not return
several phone calls from The New York Sun. The fund’s 5.23% ownership
stake in SilverHaze’s management company was valued at $260,000.
In the case of Bowlmor, Mr. Masri set up a Delaware holding company,
Onyx Funds LLC, to invest $1.3 million in the bowling alley’s parent
company, Strike Holdings LLC. S&P valued the stake at $930,000,
citing the illiquid nature of the investment. The valuation did not
disclose whether the investment was profitable or whether dividends
were paid on it.
In a statement sent to the Sun by email, Strike Holdings’ CEO,
Thomas Shannon, said he had taken steps to sever the relationship
with SilverHaze immediately.
“This information was never disclosed to us previously and had we
known the source of these funds, which represents approximately 2%
of our company’s equity, we would never have accepted them,” he said
of the ties to the Palestinian Authority.
Another New York company that received an investment from the
Palestinian fund is Madison Avenue’s Delma Real Estate fund, according
to the valuation documents. The fund owns two buildings in Woodland
Hills and Sherman Oaks, Calif., the documents said. The Palestinian
fund invested in Delma via a wholly-owned subsidiary, Darnel Limited,
that was worth $6.6 million at the end of last year, S&P said. The CEO
of Delma, Kevork Toroyan, did not return a reporter’s call. Mr. Toroyan
is an Armenian, and according to the Web site of a charity with which
he is affiliated, the Armenian Fund, he was a member of a group set
up to support the 1993 Oslo Mideast accords.
The Palestinian Investment Fund, whose chairman, Mr. Rachid, was
installed by Arafat in June, did not have the Midas touch when it
came to timing many of the investments, according to the valuation
documents. For example, beginning in April 2000, SilverHaze’s Mr.
Masri began investing $25 million in fund capital in Internet stocks.
The vehicle Mr. Masri set up to make the investments, Chalcedony LLC,
put only $9.9 million to work before the Internet bubble cracked,
said the valuation report. The investment in Chalcedony – controlled
entirely by Mr. Masri, according to S&P – declined in value to an
estimated $4.4 million.
The Palestinian fund was created on Arafat’s orders by “diverted”
tax receipts Israel collected on goods shipped to the territories,
according to a World Bank report released in June. The diverted funds
– the exact amounts are not known – were supposed to be given to the
Palestinian finance ministry, according to an article in Bloomberg
News’s Markets magazine.
The fund also took a stake in the Canaan Equity Offshore funds,
two investment funds managed by Canaan Partners, a high-profile
private-equity firm with $2 billion under management and offices in
Menlo Park, Calif., and Rowayton, Conn. The Palestinian fund’s stakes
in one of the funds, Canaan Equity Offshore II, was valued at $1.1
million, and its stake in the other, Canaan Equity Offshore III,
was valued at $3.6 million. A call to the fund’s general partner,
Eric Young, was not returned.
One analyst of the finances of both Arafat and the PLO, Manhattan-based
historian Rachel Ehrenfeld, said the “so-called donors” to the
Palestinian Authority – including many member states of the European
Union and the World Bank – who demanded the valuation would not have
wanted to see a full accounting of the Palestinian Authority’s finances
from its inception in 1994.
“Arafat had $10 billion in assets in mid-1994, and this one-year
snapshot contains less than $800 million,” she said. “They don’t want
to know about the other $9 billion because they don’t want to know how
rich Arafat was, or how much he paid to murder thousands of Israelis.”
Ms. Ehrenfeld, who has written and lectured extensively on terrorism
financing, was highly critical of the Palestinian fund’s rush to
transparency.
“It’s nearly useless,” she said of S&P’s valuation work. “It covers
only one year, it’s already a year old, and doesn’t offer any
comparison to the previous years.”

EU prepares “neighbourhood report” on Azerbaijan
Trend news agency
22 Dec 04
Baku, 22 December: The European Commission has worked out a
“neighborhood report” on Azerbaijan, the EU special representative
in the South Caucasus, Heikki Talvitie, has said in an exclusive
interview with Trend news agency.
The European Commission called for the inclusion of Azerbaijan,
Armenia and Georgia in the European Neighbourhood Policy programme
on 12 May 2004, Talvitie said.
“Initially, this idea has to be approved by 25 members of the European
Union. At this stage, negotiations between the EU and Azerbaijan
will be conducted in this direction,” he said.
The neighborhood report reflected not only a political discussion, but
also [the discussion] of economic and social problems of Azerbaijan,
democracy and human rights, he said. “Europe wants its would-be
neighbors to be committed to the principles of democracy, the rule
of law and market economy,” Talvitie said.
Speaking about the conditions for joining the programme, Talvitie
said that the main objective is to develop democracy, protect human
rights, boost economic potential and so on. “Azerbaijan is already
one of the European countries and we attach major significance
to the stable development within the process of integration,” the
diplomat said. Appropriate documents on the programme have already
been submitted to the Baku government, in connection with which
Talvitie is planning his next visits.

64% OF SURVEYED FROM VARIOUS REGIONS OF ARMENIA SUPPORT ARMENIA’S JOINING EUROPEAN UNION
YEREVAN, December 21 (Noyan Tapan). Of the 2,000 people surveyed
in various regions of Armenia, 64% are in favor of the country’s
joining the European Union, the overwhelming majority of them being
convinced that it will take Armenia about 15 years. These are the
results of the survey conducted by the Armenian Center for National and
International Studies (ACNIS). A surevey of 100 experts was conducted
in parallel with this. 92 of the 100 experts were in favor of the
country’s unconditional joining the EU. This data was presented at
the December 21 final seminar-discussion at the ACNIS. According to
Stepan Safarian, an ACNIS expert, the social-economic aspect was the
most attractive aspect of joining the EU for the participants of the
public survey and most of them had hopes of improving their social
position after Armenia’s becomimg a member of this organization, while
the most decisive aspect in the experts’ choice was their aspiration
for an irrevocable establishment of democratic values. The expert
paid attention to a considerable difference in the outcomes of the
public survey and the expert survey with respect to the issue how
much Russia is interested in Armenia’s joining the EU. Thus 50.6%
of the population believes that Russia will contribute to the RA
joining the EU, whereas only 14% of the experts take this view. 60%
of the experts believe that the RF will hinder Arm enia from joining
the EU. The percentage of those with a negative attitude to the US in
this issue is not big: only 16.2% of the participants of the public
survey and 5% of the experts believe that the US will hinder Armenia
from joining the EU. The majority of the experts hold the view that the
US is interested in Armenia’s becoming member of this largest political
and economic union. Among the main foreign political questions that
respondents were asked was the question about their attitude to the
issue of sending Armenian troops to Iraq. According to the survey
results, 67% of the experts and 70.5% of the population were opposed
to this measure. The seminar was attended by represntatives of various
political forces, NGOs, as well as by scientists.

Deutsche Presse-Agentur
December 16, 2004, Thursday
12:27:43 Central European Time
ROUNDUP: E.U. set to okay Turkey entry talks – with conditions
Brussels
European Union leaders are expected to approve opening membership
talks with Turkey at a summit Thursday, but the historic decision
will be tempered with warnings Ankara must meet tough standards and
that negotiations will take over a decade.
“The time to start negotiations with Turkey has come,” said European
Commission President Jose Manuel Barroso, adding that Ankara “must go
the extra mile” and show its allegiance to core European values.
Turkey, which has been seeking to join the European Union (E.U.) for
over 40 years, is expected to be told at the bloc’s two-day summit
that accession talks can begin in the second half of 2005.
But two key sticking points remain, said diplomats.
First, is Turkey’s refusal to grant diplomatic recognition to E.U.
member state Cyprus which despite its non-recognition by Ankara is
still expected to give a green light to opening E.U. talks. The
decision by E.U. leaders must be unanimous.
“What kind of message does it send when you do not recognise all the
members of the club you want to join?” asked Barroso.
The Commission chief said Cyprus was a test of Turkey’s willingness
to “win over the hearts and minds of everyone in Europe.”
E.U. leaders want Turkey to agree to extend a customs union pact with
the bloc to all new E.U. states, including Cyprus, which joined the
Union in May this year.
But Ankara, which only recognises self-styled Turkish northern
Cyprus, has so far refused to do this.
Observers expect the E.U. to fudge the issue at the summit and issue
a declaration saying they welcome “the intention” of Turkey to extend
customs union.
Asked about calls by France for Turkey to recognise the killing of up
to 1.5 million Christian Armenians under the Ottoman Empire in 1915
as a genocide, Barroso said the question would have to be up for
frank discussion.
But he underlined this should take place at a later date and that no
new political terms should be set prior to the start of E.U.
accession negotiations. Turkey rejects the label of genocide with
regard to the Armenians.
The second summit sticking point is what wording will be used to make
clear to Ankara that negotiations will be open-ended and their
successful outcome is not guaranteed.
A senior German official said full membership for Ankara was the E.U.
goal and demands by a minority of member states, led by Austria, for
setting an option of second class membership – a so-called
“privileged partnership” – was not on the cards.
“That issue is dead,” added an E.U. diplomat.
Austria as well as France and Denmark, remain nervous about admitting
a large, poor and mainly Moslem state with 70 million people to what
has until now been a mainly Christian club.
A German opinion poll this week showed just 15 per cent back giving
Turkey full E.U. membership. Turks, numbering 2.4 million, are
Germany’s biggest minority.
“Obviously there are problems with public opinion in some member
states,” admitted Barroso who stressed that final admission for
Turkey would have to come from all 25 E.U. countries.
Given these concerns, E.U. leaders will tell Turkey improvements are
needed to meet the 25-nation bloc’s Copenhagen Criteria which include
standards for human rights, minority protection and rule of law.
Ankara will also be told that further economic reforms are needed as
well as moves to ensure the traditionally strong role of the military
in the country is curbed.
Concern over large numbers of Turkish immigrants flooding into the
E.U. has led the Dutch E.U. presidency to seek giving individual
member states a long-term right to impose controls on the movement of
people.
E.U. member states are not the only ones on edge. Turkish Prime
Minister Recep Tayyip Erdogan has warned in recent days that Turkey
will not accept membership at any cost.
Also on the E.U. summit agenda is a further enlargement issue: the
bloc’s leaders are expected to announce membership talks have been
concluded with Bulgaria and Romania.
But the two countries, which failed to make the grade for the E.U.’s
10 nation expansion last May 1, will be told they still must make
progress in a number of areas including justice and corruption and
that planned accession in 2007 could be delayed until 2008.
The summit is likely to approve opening membership talks with Croatia
in March or April next year conditional on Zagreb’s cooperating with
war crimes trials linked to the conflicts in former Yugoslavia.
Croatia, which could also join by 2008 or 2009, would be the second
former Yugoslav state to become an E.U. member following Slovenia
which joined last May 1. dpa lm si jm

ARF TOP MEMBER HOLDS MEETINGS WITH CYPRUS OFFICIALS
ArmenPress
Dec 16 2004
NICOSIA, DECEMBER 16, ARMENPRESS: On December 14, Armenian
Revolutionary Federation (ARF) Bureau representative Hrant Margarian
held several meetings with the leaders of Cyprus political parties,
ARF press service reported.
The ARF delegation, led by Margarian, met with Cyprus Socialist
Democratic Party (EDEK) chairman Yanakis Omiru, who, underscoring the
centuries-long friendship between the Armenians and Greeks, reminded
them of the common enemy, Turkey. He added both Armenians and Greeks
are confident that Turkey does not deserve an EU membership unless
it undertakes certain pre-conditions, including the recognition of
the Republic of Cyprus, and admitting to the Armenian Genocide.
Hrant Margarian pointed to the close ideological ties between the
ARF and EDEK, and noted that the meeting is aimed at conveying the
ARF’s concerns ahead of the December 17 summit over Turkey’s EU bid.
Margarian said that Turkey should not be admitted to the EU until
the Cyprus issue and the issues of the Armenian Genocide and human
rights violations are not settled, reminding that this position of
the ARF is shared by most Europeans.
He added that Cyprus is expected to pose a strong position against
Turkey, and that Cyprus would also raise the Armenian Genocide issue
as Armenians raise the Cyprus issue in the international arena. If
Cyprus says “no” on December 17, many nations, including Armenians,
would welcome such stance. Omiru, in turn, said that his party is
for using the right to veto by Cyrus in case Turkey fails to meet
its requirements.
Hrant Margarian was also received by Dimitris Christofias, president
of the Cyprus parliament and secretary general of the Communist
Party, AKEL.
At the meeting, Margarian pointed to the ARF position and the Armenians
expect from Cyprus, noting that Turkey, by the U.S. blessing and
encouragement, would try to derail the European values and justice,
peace and tolerance systems. He added that the struggle should continue
and a “non” by Cyprus has a unique weight in political developments.
In response, Christofias noted that his heart “demands a veto,”
but questions like why and how the European powers dropped their
objections, raise. He said Turkey is encouraged by the U.S. and
Britain. He also said that President Papadopulos is to make his
decision at the last minute, and whatever the decision, his party
would support it.