Author: Chakrian Hovsep

DEPUTY FOREIGN MINISTER’S VISIT TO UNITED STATES
Azat Artsakh, Nagorno Karabakh Republic [NKR]
03 April 2006
On March 22 the deputy minister of foreign affairs of NKR Masis
Mayilian left for the United States on a working visit. On the first
day of the visit Masis Mayilian met with the Primate of the Eastern
Diocese of the Armenian Apostolic Church (the Diocese of Cilicia)
Archbishop Oshakan Choloyan. During this meeting they discussed the
relations of Karabakh and the Diaspora, the settlement of the Karabakh
issue and a number of other questions. Then Deputy Minister Masis
Mayilian visited the Representation of the Republic of Armenia to
the UN and met with its staff to discuss cooperation. In New York he
also met with local businessmen. The businessmen became interested in
products, made in Karabakh. The minister of foreign affairs pointed
out the interest of Karabakh in the development of foreign economic
relations. They also discussed questions regarding export of Karabakh
products. On March 23 the deputy minister of foreign affairs Masis
Mayilian visited Connecticut to deliver a lecture at the University
of Connecticut on the topic “NKR as a Factor of Peace and Stability
in the South Caucasian Region.” On the same day the deputy minister
met with the dean of the School of Social Studies Kay Davidson
and the teaching staff, and discussed prospects of cooperation
and future projects. Kay Davidson thanked the NKR foreign minister
for accepting the invitation of the university. In the morning of
March 24 the deputy minister of foreign affairs visited the State
Assembly of Connecticut where he met a group of representatives of
the legislative. At the beginning of the meeting John Kirakosyan,
a member of the State Assembly, introduced the deputy minister of
foreign affairs of NKR, after which Masis Mayilian spoke about the
settlement of the conflict over Nagorno Karabakh and the present
situation in NKR. On March 25 the deputy foreign minister of NKR met
with the representatives of the Armenian community of Connecticut
at the local church. There were also professors and students of
the University of Connecticut, members of the State Assembly, as
well as several dozens of Armenian refugees from Azerbaijan at the
meeting. Masis Mayilian made a speech on the topic “Nagorno Karabakh
Republic: Years of State Building and Prospects of Development.” By
the end of his address the deputy foreign minister of NKR called the
Armenian Diaspora for more active engagement in different programs for
Nagorno Karabakh. During this meeting the Permanent Representative of
NKR to the United States Vardan Barseghian touched upon the activity
of the NKR legation and the current plans. On March 26 Masis Mayilian
arrived in Washington where he participated in the ceremony of opening
of the National Conference of the Armenian Assembly of America. In his
address the NKR deputy foreign minister thanked the Armenian Diaspora
for their assistance to Nagorno Karabakh and called for more activity
for the international recognition of NKR. During the short meetings
with the AAA leadership the leadership of the AAA confirmed their
willingness to assist in strengthening NKR. On March 27 the deputy
foreign minister of NKR took part in the National Conference. NKR
Permanent Representation to the United States, Washington, March 28.

EBRD TO IMPLEMENT MORTGAGE CREDITING PROGRAM WITH ARMENIAN BANK
Noyan Tapan
Mar 30 2006
YEREVAN, MARCH 30, NOYAN TAPAN. By late 2006, the European Bank for
Reconstruction and Development (EBRD) will allocate funds to one of
the Armenian commercial banks to carry out mortgage crediting. NT was
informed at the EBRD that negotiations on the program’s implementation
are underway with this bank.
It is envisaged that the annual interest rates of the mortgage loans
to be provided from these resources will make about 12-13%.

CHINA DECISIVELY BACKS AZERBAIJAN’S EFFORTS FOR MAINTENANCE OF TERRITORIAL INTEGRITY – CHINESE AMB
TREND Information, Azerbaijan
March 30 2006
Interview of Trend with the Extraordinary and Plenipotentiary
Ambassador of China to Azerbaijan, Chan Khaichzhou.
Question: In what spheres would China desire to strengthen the
relationships with Azerbaijan? Are there any changes in the priorities
of cooperation since the moment of opening of the Japanese embassy
in Baku?
Answer: The friendship between China and Azerbaijan has deep roots
dating to ancient time and the Great Silk Route testifies for the
traditional friendship of the two nations. China attaches great
importance to the development of the bilateral relationships with
Azerbaijan. China is one of the first countries which recognized the
independence and sovereignty of Azerbaijan, established diplomatic
relationships with Baku. Since the establishment of the diplomatic
relationships with Azerbaijan in 1992, China has been putting
every effort for the extension of comprehensive relationships and
cooperation on the base of principles of equality, mutual benefits
and mutual respect.
In 1994 Azerbaijani President Heydar Aliyev for the first time paid
an official visit to China. During the visit the two countries signed
a joint statement on bases of friendly relationships between China
and Azerbaijan, as well as over 30 important documents, which laid
firm foundation for the development of bilateral relationships. Over
the past 10 years the Chinese-Azerbaijani relationships have been
deepened. China and Azerbaijan mutually back each other’s sovereignty
and territorial integrity, respect the ways of development their
peoples chose in compliance with their specifics and also support close
consultations and cooperation on important issues in the international
arena. We are friendly partners which can trust in each other.
At present identical realities are being observed in China and
Azerbaijan. Both countries are undergoing the transition period and
face with serious challenges of economic globalization. Both countries
have a heavy task on search of ways of development and achievement
of socio-economic progress and prosperity. Continuous deepening of
relationships and exchange of experience in different spheres meet
both countries’ interests.
As you know in March 2005 Azerbaijani President Ilham Aliyev paid an
official visit to China. He held vary important meetings and talks
with the chairman of the People’s Republic of China, Khu Tzintao.
During the visit both sides signed 13 documents on cooperation in
the sphere of politics, economy, science and engineering, trade,
culture, sports, tourism, etc., which made comprehensive the further
bilateral relationships and gave impetus to continuous cooperation
between China and Azerbaijan. At present the embassies and other
administrations of the two countries do all possible for cooperation,
which constantly deepens the traditional friendship and cooperation
of the two countries.
China pursues independent peaceful foreign policy, policy on
development of friendship and cooperation with all countries on the
base of principles of mutual respect, mutual benefits and mutual
equality. The Chinese-Azerbaijani relationships are also firmly based
on this immutable base
Question: What is China’s position in the issue of resolution of the
Armenian-Azerbaijani conflict over Nagorno-Karabakh?
Answer: Mutual respect and support to the sovereignty and
territorial integrity of each other is the political basis for the
Chinese-Azerbaijani bonds. China decisively supports Azerbaijan’s
efforts directed at maintenance of its sovereignty and territorial
integrity. China approaches with understating Azerbaijan’s concerns in
connection with the Nagorno-Karabakh conflict and sincerely believes
that Azerbaijan and Armenia would be able to resolve the conflict
based on the UN Charter and Principles, as well as UN Security Council
resolutions, and it will finally bring happiness and prosperity to
the people of Azerbaijan, as well as the nations of the region..
As a UN Security Council permanent member, China is ready jointly
with the world community to make a constructive contribution to the
conflict resolution process.
Question: What spheres of Azerbaijani economy are more attractive for
Chinese investors? Are the telecommunications and automobile-building
sectors among them?
Answer: Azerbaijan is an attractive and new market for Chinese
investors. Over the past few years there has been observed boom
in economic growth both in China and Azerbaijan. It opens broad
opportunities for mutually profitable cooperation. The Chinese
government approves and encourages active foreign cooperation of
the national enterprises with the foreign companies. Thanks to this
policy the Chinese businessmen come to Azerbaijan to seek opportunities
for cooperation.
At present the China-Azerbaijan cooperation stepped to a stage of
ordinary commercial relationships, while the amount and scale of
interaction are expanded in the sphere of new technologies, energy,
communications, and service. For instance, Chinese company HUA
WEI presented advanced and economical variants of resolutions in
the project of reconstruction and modification of fixed telephone
networks for Baktelecom and for the first time built Hi-Tec and
premium quality NGN (next generation network) in Baku. The company
introduced new style of thinking in the communitarians and received
approval and recognition by the Azerbaijani counterparts. Over the
last year the volume of consumption of the company’s products in the
Azerbaijani market made up $20m.
Another example is that on 7 March 2006 the South Chinese Air Company
opened its permanent passenger flights Urumchi-Baku, will inevitably
promote closer exchange of experience between China and Azerbaijan.
In 2005 the amount of goods turnover between the two countries made
up $258m, of 40.4% more as compared to 2005. I am sure that further
deepening of mutual understating between the entrepreneurs of the two
countries will reveal new contacts for cooperation and format of mutual
relationships will be further interruptedly expanded and updated.
Question: What is the amount of investing by the Chinese companies
in Azerbaijani company and what are the forecasts for 2006?
Answer: In compliance with the Chinese statistics, the total amount
of capital investing by the Chinese companies in Azerbaijan is $300m.
Chinese enterprises expand their activities on the base of mutual
profits and greatly contribute in the development of the Azerbaijani
economy. Starting from 2002 a daughter company of Chinese Oil and Gas
Corporation in Azerbaijan SNPC started investing in the exploitation
of the onshore oil and gas fields. Azerbaijan’s incomes only from
one facility of ‘K & K’ field comprise $125m. Besides, the company
attracted 900 Azerbaijani citizens to its operations in this country.
The company also spent $460,000 in charity purposes.
I know that capital investing in the amount of $300m is not so big
figure and does not suit the economic development and potential of
cooperation between the countries. As far as I know, the Azerbaijani
government now is planning to establish special economic zone and is
ready to carry out cooperation in the fields of agriculture, science,
engineering, transport, and construction infrastructure.
There is a tendency of progressive growth of economy in Azerbaijan and
I am sure that it attracts more and more investors, including those
from China. I guess they could do more for the economic development
of Azerbaijan.
Question: At present Chinese companies are actively involved in oil
production in Azerbaijan. Are the Chinese investors still interested
in the development of new oil and gas fields in Azerbaijan?
Answer: At present China produces approximately 200 million tons
of crude a year. However, this volume is insufficient for rapid
development of the country’s economy. Azerbaijan possesses rich
oil and gas reserves. The energy cooperation between China and
Azerbaijan meets both countries’ interests, which is the positive
aspect for maintenance of bilateral cooperation. At present big and
influential oil and companies of China, as SNPC and SINOPEC, which
possess high-technological level set up business in Azerbaijan.
To speak frankly, the volume of cooperation is not sufficient for
the time being. China is keen on expansion of cooperation and its
further deepening. We hope very much to see the cooperation in the
energy sector to be in speedy progress.

AIR IS POLLUTED IN GYUMRI
A1+
[11:41 am] 31 March, 2006
The specialists investigate the level of air pollution in Gyumri
three times a month and do not find encouraging facts. The level of
air pollution is s number of times higher than the permitted minimum.
The specialists warn about the harmful substances present in the
air any season of the year as a result of which people get different
illnesses. If in winter the heating system pollutes the air, in summer
the absence of green areas and deconstructed streets contribute to it.
“Tsayg” TV Company of Gyumri

RUSSIAN OFFICIAL CALLS FOR JOINT ANTI-DRUG EFFORT IN YEREVAN
Public Television of Armenia, Yerevan
29 Mar 06
[Presenter over video session and news conference] The coordinating
council of the heads of the anti-drug agencies of the Collective
Security Treaty Organization [CSTO] member states has held a session
in Yerevan.
In reply to Azerbaijan’s accusations, the head of the council and
director of the Russian Federal Drug Control Service [FDCS], Viktor
Cherkesov, said that not a single fact of illegal drug trade has been
registered in Karabakh. Summing up the results of the work of the
coordinating council, Viktor Cherkesov called for joint efforts in the
fight against drug trafficking. The international drug mafia has been
very active and well-organized. Therefore we need to take additional
measures in the fight against it. The heads of the Russian, Armenian,
Belarusian, Kyrgyz, Kazakh and Turkmen police discussed these issues
at the session of the coordinating council.
[Viktor Cherkesov, captioned, in Russian with Armenian voice over]
More than 9,000 crimes have been solved. About 11,000 tonnes of drugs
were confiscated during the channel-2005 joint anti-drugs operation.
Apart from the CIS member states, Iran, Pakistan and Ukraine have
also been involved. The USA and Mongolia have joined us recently.
[Chief of the Armenian Police Lt-Gen Ayk Arutyunyan captioned] The
problem of drug abuse is not that serious in Armenia. There are no
drug addicts among children. We have not registered any increase in
drug dealing in Armenia. The situation is under control. We all have
to stay alert.

INTERVIEW: ZARDUSHT ALIZADE: PEOPLES OF ARMENIA AND AZERBAIJAN CAPABLE TO SETTLE KARABAKH CONFLICT THEMSELVES
PanARMENIAN.Net
25.03.2006 GMT+04:00
The Nagorno Karabakh conflict settlement has activated
recently. However Baku doesn’t wish to hear about any kind of
compromise stating that Azerbaijan’s participation in the talks is
the greatest concession.
The opinion of the opposite side is always interesting. PanARMENIAN.Net
requested Azeri political scientist Zardusht Alizade to comment on
the Armenian-Azeri relations and the situation in the region.
Judging from the publications in the Azeri media you are impartial
enough on the situation in the South Caucasus. How would you
characterize the Armenian-Azeri relations for the next 5-10 years?
With extrapolation of the current situation to the future without
taking into account the possibility of a miracle, the future of the
South Caucasus seems sad.
Without the settlement of the Nagorno Karabakh conflict on the basis of
a compromise our nations and states will keep on hostility. No regional
or continental integration will break through the strong redoubt of
national myths and corporate interests of the ruling elite. There
is no hope for “an imposed peace” either. Over the availability of
conflicts the waters in the South Caucasus are troubled and economic
and geopolitical fish is easily caught here
In one of your interview you said, “I am one of few political
scientists who press for normalization of the Armenia-Turkey
relations. Are you optimist about the issue?
The normalization of the Armenia-Turkey relations will have a
positive impact not only upon the economy and internal political and
ideological situation in Armenia but also upon the Armenian-Azerbaijani
relations. The more Armenians benefit from the cooperation and good
neighbor relations with Turkey the less political forces in Armenia
will build the policy of hostility towards Turkey and Azerbaijan. In
this case those, who specialize in “the eternal Armenian-Turk
animosity” in Baku and Turkey, will have to fall silent.
Integrating Europe is a good example. But counter steps are
essential. Armenians are convinced that Turkey should acknowledge
the events of 1915 with all the consequences. Turkey for its part
considers that Armenia should stop being an instrument in the hands
of anti-Turkish forces, first of all the Russian special services
and right-wing conservative parties in Europe.
I am a cautious optimist and I set hope upon the reason and the sense
of historical prospects of the Armenian people. Presently Armenia’s
position doesn’t give ground for optimism.
Which formulation is the correct one in you opinion: Nagorno-Karabakh
or Armenian-Azerbaijani conflict? Do you really think Armenia has
territorial claims from Azerbaijan?
Naturally, I do not only think, but I am convinced in it. Availability
of Armed Forces of Armenia in the territory of Azerbaijan is a direct
proof of those claims. I will add: [another proof is] Robert Kocharian
of Karabakh origin being the President of Armenia, in spite of the law.
Will the time of signing an agreement between the Nagorno Karabakh
Republic and Azerbaijan come?
I hope that an agreement between Armenia and Azerbaijan, according
to which Armenia will refuse >From interference in Azerbaijan’s
domestic affairs, will come first. After that it will not be hard to
find ways and forms of adjustment of common peaceful life of Azeri
citizens, all residents of Karabakh irrespective of their ethnic
identity. Naturally, provided guarantees from superpowers (how can
one do without these?) and the UN…
Do you attach importance to the role of people’s diplomacy. Can it
play a positive part?
I am convinced that people’s diplomacy has done much good to our people
(just recall release of prisoners of war and hostages). However, its
efficiency is low at the current stage, as united powers of Armenian
and Azeri authorities are against it.
People’s diplomacy is a pioneer, hacking through a path in the
jungles of animosity. No one knows whether the society will follow
a handful of idealists, or well-organized criminal community of the
strong. Greed of elites of superpowers had a strong impact on all this
(in the Middle East, as well as the South and North Caucasus).
Resumption of hostilities is spoken about too often in your country. Is
your President’s disposition so militant or all this rhetoric is
aimed at frightening Armenia and Nagorno Karabakh?
I personally do not believe in resumption of large-scale hostilities
soon. However, I am often mistaken, as I do not take into account
the degree of greediness and silliness of important players.
This year three meetings of the OSCE MG co-chairs were in
vain. Nevertheless, Mr. Steven Mann believes the conflict will be
solved in 2006. What is your opinion on whether he has ground for
optimism or whether he presents what is wishful for what is actual?
It is a question to be answered by Mr. Mann. I am sure that peoples
of Armenia and Azerbaijan are capable to solve the conflict – if
Mr. Aliyev and Mr. Kocharian admit it.

THERE WILL BE STRUGGLE BUT NOT ARMED
Lragir.am
27 March 06
“In 2008 I will run for president, if it will be the demand of the
society,” stated the leader of the Armenian Popular Party Stepan
Demirchyan on Kentron TV, who ran for president in 2003 and won the
election by non-official data. Stepan Demirchyan says his nomination
in 2003 was not an end in itself but was based on the demand of the
society. The leader of the Armenian Popular Party confirmed again that
in the election he would struggle for his votes and his supporters’
votes but constitutionally.
Stepan Demirchyan says, although the word “constitutional” arouses a
smile, he is, nevertheless, against bloodshed. There will be struggle
but not an armed struggle, Stepan Demirchyan told his supporters and
the public.

KfW BANK TO PROVIDE A TOTAL OF 12 MLN EUROS FOR DEVELOPMENT OF
MORTGAGE MARKET IN ARMENIA

YEREVAN, MARCH 23, NOYAN TAPAN. The KfW Bank (Germany) will provide a
total of 12 mln euros for the development of the mortgage market in
Armenia. This year the KfW Bank will allocate the first share of this
amount – 6 mln euros under the credit program on development of stable
market of house financling in Armenia, while the program will be
implemented from the second quarter. The agreement on this was signed
on March 23 by the Deputy Chairman of the Central Bank of Armenia
(CBA) Artur Javadian and KfW representative Reinald Schtraus. To
recap, the intergovernmental agreement on the program was also signed
in March 2006. R. Schtraus stated at a press conference following the
signing ceremony that the main purpose of the program is to make
mortgage crediting accessible to a large section of the
population. According to A. Javadian, the program’s credit resources
are repayable over 40 years and carry an annual interest rate of
0.75%. Besides this credit, Armenia will be given a 1.5 mln euro
grant, which will mainly be aimed at advisory services. In the words
of A. Javadian, the program’s implementation will allow to introduce
the “minimum quality standards” of mortgage crediting in the Armenian
banks and credit organizations in the next two years. Thus, the main
terms of credit provision, including repayment dates and the
approximate amount of prepayment, will be specified. After that – by
mid 2008, the prerequisites will be created for the formation of the
secondary mortgage market and the issue of mortgage bonds.
It was noted that in 2007, at least 6 organizzations must be able to
provide mortgage loans in Armenian drams for a repayment period not
less than 10 years. Only 3 Armenian banks now offer mortgage credits
for 10 years. At the present time, the mortgage crediting portfolio of
the Armenian banks amounts to only 12 bln drams (about 27 mln USD),
with the annual interest rates of their credits making 11-17%. The
Armenian representative of the KfW Bank Karapet Gevorgian said that
the mortgage portfolio of the Armenian banks needs to be at least
doubled in 2008: in two years the demand on this market will make
about 150 mln USD. It was noted that the introduction of the
program-envisaged new credit technologies and international standards
of risk management in the banks will be conducive to an increase in
the mortgage crediting volumes and the improvement of terms. In
addition, the CBA will provide the resources allocated by KfW to the
Armenian banks at relatively low interest rates. According to K.
Gevorgian, these banks find a 4-5% margin as satisfactory.

ISSUES OF ARMENIAN-INDIAN COOPERATION IN SPHERE OF JEWELRY AND DIAMOND MANUFACTURING DISCUSSED
Noyan Tapan
Mar 20 2006
YEREVAN, MARCH 20, NOYAN TAPAN. Issues of deepening cooperation between
Armenia and India in the sphere of jewellery and diamond manufacturing
were discussed at the March 18 business meeting organized in Yerevan
by the Association of Goldsmiths and Jewellers of Armenia. At the
event the Armenian side was presented by 7 and the Indian side by 3
companies. The meeting was followed by the exhibition of the Armenian
participant companies at the salesroom of the Jewellery Plant of
Yerevan. During the meeting’s opening speech Emil Grigorian, the
Chairman of the Association of Goldsmiths and Jewellers of Armenia
presented the jewellery and diamond manufacturing as an important
branch of the RA economy as needing usage of little raw materials and
power-consuming, it has possibility to develop in the existing hard
transport conditions. He asked the meeting participants to discuss
issues of education, marketing, deliveries of coloured natural precious
stones and diamond, cooperation in the issues of creating joint
ventures. The Indian side was interested in the order of training the
staff of the branch. According to E.Grigorian, the problem is solved
by training the staff both in the industrial educational institution
and at industrial enterprises. Fuad Hamamji, the representative of the
“Al-Manara Jewellery” Indian company functioning in the United Arab
Emirates mentioned that he arrived in Armenia from Lebanon where the
jewellery is concentrated in hands of Armenians. He attached importance
to Armenian jewelry enterprises’ quick response to preference of
assortment in Arabic market as well, increasing of capabilities to
turn out as precious as possible production of more improved quality
as it’s difficult to compete with Indian and Chinese companies having
cheap labour. According to Grigorian, both small and big enterprises
function in Armenia the bag of equipment they possess gives possibility
to turn out production of any quality and design: particularly, the
Jewellery Plant of Yerevan carries out orders of the “Cartier” and
“Louis Vuitton” companies. But new markets are necessary to use and
develop the existing capacities completely. Nader Nasreddine, the Sale
and Marketing Manager for Persian Gulf, North Africa and Iran of the
Rosy Blue Indian company founded the “Diamotech” diamond enterprise
in Armenia, considered possible exchange of the company’s small raw
diamond with worked diamond of Armenia as well as carrying out of
orders of working precious stones in Armenia. Indian companies have
strong positions, particularly, in the Congo market of diamond and
coloured precious stones. By the Indian side’s proposal, cooperation
possibilities will be discussed after visiting Armenian jewellery and
diamond manufacturing enterprises on March 20. A big Armenian-Indian
business forum will take place at the Armenian Development Agency on
the same day.

HEAD OF EX-SOVIET STATES’ OBSERVER MISSION CALLS BELARUSIAN ELECTIONS OPEN, TRANSPARENT
Jim Heintz
AP Worldstream
Mar 20, 2006
The head of the observer mission of a grouping of former Soviet states
on Monday called the disputed Belarusian presidential election open
and transparent.
The assessment by Vladimir Rushailo, head of the Commonwealth of
Independent States’ mission, is likely to contrast sharply with an
assessment to be issued later Monday by the Organization for Security
and Cooperation in Europe’s mission.
Rushailo, in a droning statement that lasted more than a half-hour,
said the CIS mission’s 467 observers concluded that, despite some
technical violations, the Sunday elections took place within the
requirements of Belarusian law.
The OSCE, by contrast, assesses elections in terms of whether they
meet international standards for free and fair democratic elections.
The assessments by the OSCE and CIS missions on elections in
post-Soviet states frequently differ radically.
Rushailo is a former interior minister of Russia. The Kremlin is
closely allied with Belarus’ authoritarian President Alexander
Lukashenko, whom official results show winning a third term in
a landslide.
Opposition supporters held a rally of thousands on Sunday night to
protest the results, and have called for another protest on Monday
evening.
The CIS observers “declare the elections free, open and transparent,”
Rushailo said. He later denounced Western countries’ persistent
criticism of Belarus for intimidating and restricting the opposition
ahead of the election.
“Prejudiced statements, harsh announcements, as well warnings from
several countries on the eve of the elections about their readiness
to take various restrictive measures of a political and economic
character against the Republic of Belarus: the CIS observers see
these as attempts to influence the course of the election process in
its final stage,” Rushailo said.
The mission included observers from Azerbaijan, Armenia, Kazakhstan,
Kyrgyzstan, Russia, Tajikistan, Turkmenistan and Uzbekistan. Notably
absent were observers from Georgia, Ukraine and Moldova, all of which
are CIS members that recently have distanced themselves from Moscow
to take a more West-leaning course.