Author: Chilingarian Babken

ARMENIAN PM TOURING PROVINCES

ARKA News Agency, Armenia
Aug 3 2007

YEREVAN, August 3. /ARKA/. Armenian Prime Minister Serge Sargsyan
traveled Friday to the country’s provinces on a tree-day trip.

Armenian government’s press office reports that the premier will tour
Aragatsotn, Lori and Tavush to see the situation with agricultural
work and construction as well as the process of gas facilities
installation there.

Sargsyan will meet with the provinces’ residents and officials.

The prime minister will also visit Vanadzor’s chemical plant and
discuss development prospects with the plant’s authorities.

NATO ALARM OVER ARMS RACE IN THE CAUCASUS
By David Petrosian

Gulf Times, Qatar
Aug 2 2007

YEREVAN, Armenia: A sharp rise in defence budgets by the countries
of the South Caucasus is alarming Nato and other members of the
international community, who worry that fighting could break out in
this energy-rich but volatile area at any time.

Military spending in Armenia, Azerbaijan and Georgia is increasing
20 to 40 times faster than those countries’ respective gross domestic
products.

There are 75 tanks and 85 artillery pieces for every 1mn inhabitants
of the South Caucasus, a much higher ratio of weapons to citizens
than is found in such neighbouring states as Iran, Russia and Turkey.

And if you factor in the number of arms held by separatist
organisations in the region, that figure rises by about a third.

Each country offers its own justification for the surge in spending
on weapons.

Armenia’s military budget for 2007 was just over $271mn, about 3.5%
of the country’s gross domestic product. Officials insist the spending
is necessary to counter the threat posed by Azerbaijan and a potential
one from Turkey.

The Armenian government rejects accusations that it is exceeding the
military quotas set by the 1990 Conventional Forces in Europe treaty
and says that it is keeping to the limits and preventing a new arms
race in the Caucasus.

Meanwhile, flush with oil wealth, Azerbaijan has also sharply increased
its military spending. Its 2007 defence budget stands at just over
$1bn, a 28% increase over the previous year and 16% of the entire
state budget.

Some in Azerbaijan are urging the country to follow Russia’s lead
and quit the CFE treaty, saying the likelihood of renewed conflict
with Armenia over the disputed territory of Nagorny Karabakh makes
it essential that the country arm itself.

Such a conflict is exactly what has Nato concerned.

"Nato is worried about the mass arming in the zone of the conflict
over Nagorny Karabakh," Robert Simmons, Nato secretary-general’s
special representative for the South Caucasus and Central Asia,
said earlier this year after a visit to Azerbaijan.

Meanwhile, nearby Georgia is undertaking a breathtaking increase in
its own defence spending. Just last month, the government in Tblisi
announced it was increasing the nation’s defence spending to $569mn,
nearly double what it was only two years ago.

According to the Stockholm International Peace Research Institute,
Georgia currently has the highest average growth rate of military
spending in the world.

Some independent experts are worried that the spending is not fully
accounted for, while others say that it could undermine the peace
process with the breakaway territories of Abkhazia and South Ossetia.

– MCT * David Petrosian is a journalist in Armenia who writes for
The Institute for War & Peace Reporting, a nonprofit organisation
that trains journalists in areas of conflict.

THE OSCE MINSK GROUP AS A TOOL TO PROMOTE U.S. INTERESTS IN THE CAUCASUS
by Andrei Areshev

Center for Research on Globalization, Canada
&aid=6429
Strategic Culture Foundation, 2007-04-11
Global Research
July 30 2007

The OSCE Minsk Group as a Tool to Promote U.S. Interests in the
Caucasus The refusal by U.S. State Department to issue an entry visa
to Abkahzia’s Foreign Minister Sergei Shamba caused severe criticism
of its American colleagues from the Russian Foreign Ministry. The
comment of the Ministry’s Information and Press Department had it that
by acting this way "U.S. State Department has actually blocked the
holding of an unofficial meeting between the Abkhazian representative
and members of the U.N. Security Council on the eve of negotiations
aimed at getting an agreement on the text of a new resolution relating
to the settlement of the Georgia-Abkhazia conflict."

Other excerpts of the text of the official statement of the RF
Foreign Ministry are no less noteworthy:"This stance of the American
diplomacy causes misunderstanding, raising serious question here in
Moscow… The Abkhazian side as one of the officially acknowledged
parties to the conflict has every right, along with Georgia, to get
its message across to the international participants of the settlement
process to express its views of the essence of the provisions of the
resolution that have to do with it." (emphasised by me, A.A.)

The controversy between Russia and the United States over the entire
complex of issues related to the unsettled conflicts is snowballing.

A recent session of the UN Security Council was devoted to "the
Ahtisaari Plan", according to which the region is to be granted actual
independence. A clear threat of a Russian veto made the West accelerate
the re-grouping of its diplomatic combat units concerning the Kosovo
issue. Former U.S. UN representative Richard Halbrook, one of the top
figures behind the bloodshed in the Balkans and the follow-up Bosnian
"peace-making", has warned that "a delay and emasculation of the plan,
or a veto on granting independence to Kosovo under the guidance of
an EU mission would result in a bloodshed, for which Russia would be
held responsible. Moscow’s response to this blackmail complete with
its threat of unleashing a new battle in the Balkans was extremely
negative, while the scandal around the aborted visit to New York of
the Abkhazian delegation only increased mutual distrust and suspicions.

>From time to time one can hear that there still is one conflict,
approaching which Russia, the United States and Europe identify
with one another as in no other case. What is meant is the Karabakh
conflict where different brokers are going out of their ways to observe
politesse and to demonstrate their unity of approach. Another proof of
this stance comes from Yerevan, where Russian Foreign Minister Sergei
Lavrov paid a visit several days ago. According to him, the Nagorno
Karabakh conflict, to a greater degree than any other conflict, has to
be given the status of a unique case, and not because principles other
than those of the international law are applicable to it. The case
rather is that "from the practical point of view this must probably
be the only conflict where the interests of Russia, the United States
and the EU are never contradictory at the same time not contradicting
the interests of the conflicting sides."

Such a statement can really bewilder. From what Sergei Lavrov said
it is not quite clear why Karabakh was destined to be "so lucky". It
makes one think that the Russian minister was assigned to demonstrate
at least one example of Moscow’s successful interaction with Washington
in an attempt to settle at least one "frozen" conflict.

But it did not work out that way!

Regardless of the fact that both Moscow and Washington never stop
declaring that there is no alternative to the OSCE Minsk Group, its
intermediary’s activities of many years have been stalled. It would
be hard to expect something different, given that right from the
start the Minsk Group was a product of a political consensus of the
world’s leading players (the U.S., Russia and the EU) without a clearly
formulated mandate, and consequently, without clear-cut authority.

Over the period starting from the conclusion in 1994 – thanks to
Russia’s efforts -of a truce in Karabakh, the United States have been
taking most drastic measures aimed to ensure its forced military and
political and economic penetration into the Transcaucasus.

The role to be played by the Minsk Group has been transformed
accordingly. It has now virtually become a tool of realisation
of U.S. interests in this region. Matthew Braiza, the group’s
U.S. co-chair, has for a long time promoted U.S. energy projects on the
post-Soviet space, and he is still at it. Neither is he indifferent to
the "Iranian problem". Speaking at a press conference in Tbilisi on
March 30th, Braiza said: "under urgent conditions the United States
would count on using an Azeri aerodrome for military purposes." Many
commentators viewed that as another proof of Washington’s intention
to solve "the Iranian problem" by force. And in such an eventuality
the consequences can be most unfavourable to Armenia, the Republic of
Nagorno Karabakh and Azerbaijan. Russian co-chairman of the Minsk Group
Y. Merzliakov is of the opinion that the intensification of tension
around Iran would put off the solution of the Karabakh problem thus
possibly leading to its new "freezing."

However, Merzliakov’s U.S. colleague thinks that the peaceful solution
of the Karabakh issue based on a compromise is not an end in itself, as
it is absolutely secondary to the solution of more important "global"
issues that are in no small degree connected with the complete ousting
of Russia from Transcaucasia.

To speak of any coincidence of Russia’s and the U.S. interests in the
solution of the Karabakh problem – as well as the problems of Kosovo,
Abkhazia and South Ossetia – is out of the question. Try as they might,
diplomats would fail to reassure the world public that the situation
is reverse. Their assurances look as some sort of self-mesmerising,
dangerous in its distortion of reality.

To those unwilling to go on milling over the settlement of the Karabakh
problem, the only constructive way is to consider the issue of whether
Russia should continue its membership in the OSCE Minsk Group as well
as that of a return to the negotiations format worked out by the 1994
OSCE Budapest summit and the follow-up resolutions.

As is prescribed by that format there are three parties at the Karabakh
negotiations, Azerbaijan, Armenia and the Republic of Nagorno Karabakh
(NKR), whose status as an internationally acknowledged party to the
conflict is identical to that of Abkhazia or South Ossetia.

The NKR, as well as other de-facto post-Soviet states, is entitled to
have "the complete right to bring across to the international parties
to the process of settlement its views", demanding that its right be
respected. It expects this right to be acknowledged.

ARMENIAN HANDBALL TEAM TO PARTAKE IN THE EUROPEAN CHAMPIONSHIP OF DEVELOPING COUNTRIES

armradio.am
30.07.2007 12:42

October 23-25 the handball team of Armenia will participate in the
European Championship of developing countries.

President of RA Handball Federation Sargis Grigoryan told Armenpress
that the Handball Federation received a number of proposals to
participate in international competitions in Ukraine, Belarus and
Moldova.

IT HAS BEEN SECOND DAY SINCE INDIVIDUAL TAXI DRIVERS HAVE ORGANIZED ACTION OF PROTEST IN FRONT OF GOVERNMENT BUILDING

Noyan Tapan
Jul 27, 2007

YEREVAN, JULY 27, NOYAN TAPAN. It has already been the second day since
a large group of taxi drivers have organized an action of protest in
front of the government building. Those, who are individual drivers
(not collaborators of taxi services), express their dissatisfaction
with the decision adopted by the RA government concerning the licence
of the taxi services. According to this decision, all the taxi cars
are to have yellow state registration numbers, counting devices, as
well as they are to pay an annual sum of 200 thousand drams (about 566
U.S. dollars). In addition to this, drivers are dissatisfied with the
fact that henceforth, the use of cars, which are older than ten years,
as a taxi will be prohibited.

Manuk Topuzian, the Minister-in-Chief of the personnel of the RA
Prime Minister, received the representatives of the drivers on July
26. The drivers proposed to transfer five thousand drams to a bank
account in order not to have anything to do with the collaborators
of the Tax Service. Manuk Topuzian ordered Hrant Beglarian, the RA
Deputy Minister of Transport and Communication, to make an in-depth
study of the government’s decision and to try to find any opportunity
to be able to meet the demands of the drivers.

The drivers are likely to receive an answer to their protest in a
few days.

TURKISH ELECTION RESULTS: MORE OR LESS STABILITY?
Featuring Soner Cagaptay, Matthew Bryza, and Alan Makovsky
This rapporteur’s summary was prepared by H. Akin Unver.

Washington Institute for Near East Policy, DC
p?CID=2640
July 26 2007

On July 23, 2007, Soner Cagaptay, Matthew Bryza, and Alan Makovsky
addressed a Policy Forum at The Washington Institute. Dr. Cagaptay
is a senior fellow and director of the Turkish Research Program at
The Washington Institute. Mr. Bryza is deputy assistant secretary
of state for European and Eurasian affairs. Mr. Makovsky is a senior
staff member with the House Committee on International Relations.

SONER CAGAPTAY

The results of the July 22 election have short-, medium-, and
longer-term implications for Turkey and its relations with the United
States. For short-term political stability, the results are the best
possible outcome. The AKP has emerged with a greatly increased share
of the vote (47 percent) and a comfortable majority (340 seats in the
550-seat parliament). This gives it a mandate to form the government
while forcing it to seek consensus to muster the 367 votes needed to
elect a president.

Beyond the next few weeks, however, the picture is not so promising,
with increasing internal division to blame. Coming from one of Turkey’s
major political currents — the Milli Gorus (national outlook) movement
of the Islamist Welfare Party — the AKP has engulfed another major
current: the center-right. Emboldened, the AKP now opposes two other
currents in Turkish politics: nationalists and leftists. Judging from
the election results, the country is split in the middle between
a greatly strengthened AKP and the leftists and nationalists, who
together received 37 percent of the vote.

A more alarming divide is the one emerging between secular and
Muslim Turks. In the past, the opposite of "secular" in Turkey was
"Islamist" — a perception that benefited secularism but which is
now disappearing. The AKP has cast this spring’s botched presidential
elections — when secular Turks blocked the AKP-dominated legislature
from nominating Foreign Minister Abdullah Gul — as a case of secular
forces opposing "a religious president." This image has replaced the
secular-Islamist divide with a secular-Muslim divide. In turn, that
has boosted support for the AKP on the Muslim side. In a winning
development for the AKP, the long-lived coexistence of Islam and
secularism in Turkey is coming apart. The elections were an identity
referendum, and about half of the populace chose Muslim.

Interestingly, the AKP’s vote tally has increased by 12 percent since
the 2002 elections; according to a 2006 poll conducted by TESEV,
an Istanbul-based think tank, the number of Turks who identify
themselves as "Muslim only" increased by 10 percent over the same
period. Should this new divide persist, secular Turks will become
a marginal force. In a post-September 11 world, with U.S. policy
working to prevent a clash of civilizations, the changes in Turkish
identification have grave implications for the United States.

Washington should also be concerned that the AKP, despite benefiting
from good ties with the United States on many levels, does not
stand behind or explain these ties to a populace that has become
predominantly anti-American. One way out of this conundrum would
be for the AKP to heed the words of the medieval poet Rumi: "Act
the way you are or be the way you act." That is, the AKP’s public
discourse should reflect Turkey’s actual and positive relationship
with the United States. Washington can help by taking adequate steps
to counter the Kurdistan Workers Party (PKK), which continues to
launch terrorist attacks in Turkey from northern Iraq — the key
issue driving anti-Americanism among Turks.

MATTHEW BRYZA

The fact that elections were held successfully despite all of the
recent turmoil is a great achievement for democracy. Turkey is
strategically important to the United States as a modern, secular
democracy with a Muslim-majority population.

To preserve these important bilateral ties, the United States has an
obligation to take concrete action against the PKK. The U.S.

administration made this commitment in the Azores declaration prior to
the Iraq war, when it pledged to prevent Iraq from becoming a haven
for terrorists of any kind. Other problems in Iraq are overshadowing
this commitment, however, and U.S.-Turkish relations have suffered as
a result. But there is more at stake than the PKK’s forays into Turkey,
such as the potential for Kirkuk to dissolve into a conflict area.

>From a regional perspective, Turkey is emerging as the connective
tissue between the Caspian Sea and Europe. Today, Europe faces an issue
much more serious than just getting Caspian oil; it must diversify its
natural gas resources instead of relying on a single supplier. Only
through good competition can countries regulate their relations with
the Russian energy giant GAZPROM in a healthy way.

Turkey stands right in the middle of these relations. Since its
recently announced gas supply deal with Iran, the possibility of
financial investment in Iran’s gas sector is of great concern —
and would be in direct violation of UN Security Council resolutions.

Regarding Turkey’s near-term political future, the United States hopes
for a smooth and stable process in the country’s upcoming presidential
election, to be held in the parliament. The next president’s term will
last until 2014, and having a consensus candidate appears critical.

Finally, the "Armenian genocide resolution" currently before the
U.S. Congress bears mentioning. In general, the conventional wisdom
behind U.S. policy on such issues is that there are other ways
besides legislation to approach events fraught with such enormous
human consequences. The most moral and meaningful way forward on this
issue is to facilitate a discussion among historians, sociologists,
and philosophers from both sides.

ALAN MAKOVSKY

The election was revolutionary in that most Turks voted against
the establishment in an apparent rebuke to the military. Indeed,
the AKP has benefited from the military’s April 27 warning regarding
secularism — a development reminiscent of the 1980s, when Gen. Kenan
Evren delivered a pre-election speech warning Turks not to vote for
Turgut Ozal, and Ozal went on to win 44 percent of the vote. Turks
have a very high regard for the military as a political firewall,
but they prefer that it stay in the barracks rather than step out
onto the political stage.

Will the election results make the military less inclined to
intervene? Probably not — the military still holds itself responsible
for the enduring life of the secular Turkish republic.

The pro-Kurdish Democratic Society Party (DTP), for one, does not
seem to understand this steadfast republican stance. One DTP leader,
Leyla Zana, recently stated that Turkey "need[s] to be divided up
into provinces, one to [be] called Kurdistan." Such comments can
only inflame Kurdish sentiment and lead to discord that undermines
the republican aims held by the military and other actors.

Regarding the U.S.-Turkish relationship, I can say from personal
experience that Turkey’s credit in Congress has increased in recent
years. There is greater appreciation of the country’s strategic
importance and its status as a secular, predominantly Muslim
democracy. Ankara’s rapprochement with Greece was influential in
swaying the Greek American lobby. In this regard, the AKP victory
would seem to bode well. Prime minister Recep Tayyip Erdogan’s
concessions on Cyprus still resonate, and his attitude of restraint
regarding northern Iraq is worth noting. Certain moves, however —
such as calling Israel a "terrorist state," inviting Hamas officials
to Ankara, befriending Syria, and arranging a gas deal with Iran
— are worrisome. If the gas deal turns out to have an investment
component in Iran, this would be a serious breach of U.S. trust.

Bilateral ties are still important to both sides, but less so for
Turks now than in the past. U.S. leverage over Turkey has diminished.

Iraq and related issues are the main problems in the relationship,
and will probably remain so for some time. That the United States
attacked a Muslim country has created great discontent in Turkey.

Moreover, Erdogan and the AKP administration do not speak publicly in
favor of U.S.-Turkish ties, despite the fact that Ankara cooperates
with Washington in Afghanistan and Iraq.

As for the Armenian resolution, it is difficult to block the measure
from a procedural standpoint because it has majority support in the
House of Representatives. That said, the executive branch has many
strategic arguments to make against its passage, especially Turkey’s
importance to the war in Iraq.

KHACHIK MANUKIAN, FORMER CANDIDATE FOR DEPUTY’S MANDATE OF ELECTORAL DISTRICT N 15 APPEALS AGAINST DISTRICT ELECTORAL COMMISSION’S NEGLIGENCE

Noyan Tapan
Jul 26, 2007

YEREVAN, JULY 26, NOYAN TAPAN. The first instance court of Aragatsotn
region, at the July 26 sitting, presided over by judge Manuk Margarian,
examined the lawsuit of Khachik Manukian, former candidate for deputy’s
mandate from electoral district N 15, against the district electoral
commission. The court will pronounce the sentence on July 27. As Noyan
Tapan correspondent was informed by Hovhannes Asatrian, the Chairman
of district electoral commission N 15, the claimant appealed against
the commission’s negligence at the court.

It should be mentioned that Khachik Manukian, a shoemaker by his
speciality, who had nominated his candidature at the by-elections to
be held at the above mentioned electoral district on August 26, had
withdrawn his candidature by an ordered letter before registration
of candidates, on the basis of which the commission did not register
his candidature. The former candidate asserts that he had not sent
the above mentioned letter and the commission was obliged to invite
him to the sitting convened on the issue of registration of candidates.

CAPITALIZATION OF ‘ARMROSGAZPROM’ CJSC WILL EXCEED $1,5BLN AT THE BEGINNING OF 2009

arminfo
2007-07-24 09:53:00

At the end of 2008 and at the beginning of 2009 the authorized capital
of Armenian-Russian "ArmRosgazprom" CJSC will amount to $850-900mln,
and the capitalization, according to the estimations of the company’s
specialists, will exceed $1,5bln, Chairman of the Board, Director
General of "ArmRosgazprom" CJSC Karen Karapetyan said on Monday.

According to him, from today on the company is preparing to start
Initial Public Offer. For that purpose international audit has already
been conducted in the company for 4 years. From the current year on
the "Ernst and Yang" company is conducting the audit. K. Karapetyan
recalled that "ArmRosgazprom" CSJS has already placed coupon
obligations in a 1bln AMD emission volume, with a circulation period
of 18 months and with 9% annual percentage rate. The emission volume
in 1bln AMD is a bit more than 0,5% of the company’s assets, the
Director General noted. He added that the company intends to emit
obligations with a volume of 5bln AMD in the nearest future.

Director of the Central Bank of Armenia Tigran Sargsyan said that the
emission of obligations of "ArmRosgazprom" CJSC arouse much interest in
the financial system of the country and, presently, the demand exceeds
the supply by several times. He added that "ArmRosgazprom" CJSC plans
to conduct a rating of the Central Bank’s enterprises, which will
give the commercial banks, interested in the company’s obligations,
an opportunity to transact deals with the Central Bank. In that way,
for the Central Bank will consider the obligations of "ArmRosgazprom"
CJSC as liquid assets and the latter will work with commercial banks
through REPO agreement, he clarified.

He noted that the entrance of such system forming structure as
"ArmRosgazprom" CJSC into the bond market is a guarantee for the
dynamic development of that market. He added that in the nearest
future two more of the best enterprises in Armenia will be involved
in the bond market. T.

Sargsyan expressed hope that, thanks to "ArmRosgazprom" CJSC’s
cooperation with Stockholm burse OMX, which plans to buy "Armenian
Stock Exchange", the company will start IPO. This will mean integrating
Armenian and world bond markets, he said.

To recall, "ArmRosgazprom" CJSC was founded in December 1997 and is
the exclusive importer of natural gas into Armenia. As a result of
"ArmRosgazprom" CJSC’s extra emission by $111,8 mln, the company’s
authorized capital increased from the former $280mln up to $391,8mln.

"Gazprom" JSC raised its share in "ArmRosgazprom" CJSC’s authorized
capital from the former 45% up to 57,59%. The share of the Armenian
Government in the company’s authorized capital, accordingly reduced
from 45% to 34,7%, and the share of "Itera" company reduced from the
former 10% up to 7,71%.

HIS HOLINESS KAREKIN II CONGRATULATES NEW PRESIDENT OF NAGORNO KARABAKH

armradio.am
23.07.2007 15:06

His Holiness Karekin II, Supreme Patriarch and Catholicos of All
Armenians, sent a letter of congratulations from the Mother See of
Holy Etchmiadzin to Bako Sahakyan, the newly elected president of
the Republic of Nagorno Karabakh.

In his letter, the Catholicos states, "We extend to you our Pontifical
blessings and congratulations on your election as president of Republic
of Nagorno Karabakh, and offer thanks to God, that our people in
Artsakh are creating their free lives, building their native land
with the faith of living in security, goodness and happiness.

"You have contributed your devoted efforts to the just cause of
achieving the hopes and aspirations of the Armenians of Artsakh
and throughout the world, having participated with vigilance in the
liberation of Artsakh and the establishment of statehood.

"We pray to our Benevolent Lord, asking that He protect Artsakh under
His graces with eternal peace, making your efforts and those of our
people fruitful, so that all the wounds on our native soil be healed,
our churches and holy shrines rise once again, and Artsakh be filled
with vibrancy and joy. As President-Elect, we wish you a long and
healthy life, vigor and energy in your high office, and success to
your plans and policies."

RA MFA: TO DISMISS NKR ELECTIONS IS DISINGENUOUS AND SIMPLY CONTRARY TO MODERN POLITICAL VALUES

PanARMENIAN.Net
23.07.2007 17:16 GMT+04:00

/PanARMENIAN.Net/ "We welcome the presidential elections held in
Nagorno Karabakh on July 19. Nearly 80% of the people of Nagorno
Karabakh participated in these elections. These elections are the most
recent in some dozen presidential, parliamentary, and local election
polls, as well as a constitutional referendum, held since 1991,"
says a statement of the Armenian Ministry of Foreign Affairs.

"This is just one expression of the commitment the people of Nagorno
Karabakh have made to democracy and rule of law. Legitimately elected
authorities have succeeded in securing the safety and stability of
that region even in the absence of a permanent settlement.

Various OSCE and other international documents clearly indicate that
not only should Nagorno Karabakh be a party to settlement negotiations,
but that their elected authorities should represent them.

To dismiss these or any elections is disingenuous and simply contrary
to modern political values. Further, rejection cannot be understood
given the fact that in other areas of the world, in places where final
political status and settlement are also absent, such elections are
indeed supported, promoted, observed and encouraged.

The people of Nagorno Karabakh remain committed to resolving the
Nagorno Karabakh conflict through negotiations to reach a peaceful,
lasting settlement.

Unlike in other conflicts, in Karabakh, the population has always
had to ensure its own security without the help of the international
community. In the same way, they have also succeeded in securing their
own democratic processes and domestic stability," the statement says.