Author: Chmshkian Vicken

TIGRAN SARGSYAN WAS ONCE AN OPPOSITION REPRESENTATIVE
A1+
[04:46 pm] 21 November, 2006
Today Tigran Sargsyan, head of the Central Bank, recalled a few
episodes from 1993 when the Armenian currency-the dram, was introduced.
“At that time I was an Opposition representative and was the head
of Financial-Budgeting Committee of the Supreme Council. It was the
coldest and the hardest year in the history of Armenia. The authorities
gave us the Reception hall of the RA Government but there was no light.
We turned to Levon Ter-Petrosyan and soon were moved to the president’s
residence. Both Levon Ter-Petrosyan and Interior Minister Vano
Siradeghyan rendered us great assistance”, remembers Mr. Sargsyan.
Today Tigran Sargsyan was among the guests of “Urbat” club who were
to comment on the thirteen years of the dram introduction.
Isahak Isahakyan, former director of CB and Levon Barkhudaryan,
ex minister of Finance were also invited to the club.
The inflation obvious in the first stage of the dram introduction was
determined by a number of objective reasons in the guests’ words. “The
external reserves of the country were vacant. The Government had
700 thousand USD 500 thousand of which they gave to us”, recalls
Mr. Sargsyan.
Isahak Isahakyan underlined the fact that “Russia lulled Armenia by
saying that we should soon enter the ruble zone. But soon Armenia
realised that there was no point in trusting Russia”.
At the end of the discussion the guests recalled the time when Armenia
became independent and the first struggle for freedom.

NATO DEFENSE AND SECURITY COMMITTEE CONFIRMS FACT OF OCCUPATION BY ARMENIA OF AZERBAIJAN’S TERRITORIES
AzerTag, Azerbaijan
Nov 16 2006
As reported, since November 11, the first vice-speaker of Milli Majlis,
the head of delegation of Azerbaijan in NATO Parliamentary Assembly
(NATO PA) Ziyafet Askarov and a member of the safety and defense
standing committee of the Parliament, Siyavush Novruzov have been
on a visit in the Canadian city of Quebec for participation in 52nd
annual session NATO PA.
One of the major questions of the agenda of session was the
prepared report on the countries of Southern Caucasus, and the
Armenia-Azerbaijan, Nagorno-Karabakh conflict. This question has been
discussed at the session of Defense and Safety Committee of NATO PA
taken place on November 14 and corresponding decision was accepted.
As stated by Mr. Suyavush Novruzov, the session considered the
question of integration of the countries of Southern Caucasus in
the Euro-Atlantic space, including reports on Azerbaijan, Georgia
and Armenia.
Prepared earlier in subcommittee of NATO PA, the report on Azerbaijan
did not satisfy us, he said. “We repeatedly expressed our opinion on
the documents. After the meetings, held during stay of representatives
of Committee in Baku, the report was radically changed. I shall note,
that the document in this time reflected the fact of occupation
of 20 percent of the Azerbaijan territories, heavy life of more
than 1 million refugees and IDPs, and also driving of 200 thousand
Azerbaijanis from their native lands in the territory of Armenia, 4
Resolutions of UN Security Council on aggression of Armenia against
Azerbaijan. Along with that, the document also specifies the arsons
committed by Armenians in the occupied territories of Azerbaijan. This
is an only document where the concrete figures contain all the moments
connected to the conflict.
>From 26 states-participants possessing the vote, 25 have voted at
session for acceptance of the given document”.
The document especially notes the role of Azerbaijan in energy
safety of Europe. Though the Armenian party lifted the far-fetched
“genocide” question again, it has been completely excluded from the
text of the document.

ARMENIAN PEOPLE’S PARTY INTENDS TO WIN THE ELECTIONS
Panorama.am
15:22 13/11/06
Stepan Demirchyan, chairman of Armenian People’s party (APP) and leader
of Justice Block, is sure that APP is ready and can participate in
upcoming elections alone.
However, the party has not clarified its strategy yet because
it has postponed its general assembly slated for November. Most
probably, the assembly will be held in January-February. Demirchyan
underscored the parliamentary elections in a newly opened Friday Club
today. He does not share the optimism of authorities in power that
the elections will comply with democratic norms. “People themselves do
not believe that the elections may be free and fair in our country,”
he said.

PRESIDENT ILHAM ALIYEV OF AZERBAIJAN VISITS MOSCOW
Source: RBC Daily, November 9, 2006
Agency WPS
The Russian Business Monitor (Russia)
November 13, 2006 Monday
President Ilham Aliyev of Azerbaijan started a working visit to Moscow
on Noember 8, arriving there from Brussels.
In contrast to Aliyev’s Brussels visit, his Moscow visit has been
downplayed in Azerbaijan – to avoid stirring up the pro-Western
opposition. Announcements in Russia have also been very brief. But
everyone knows the issues of concern to both sides: Baku is trying
to win Moscow’s support on Nagorno-Karabakh, while Moscow is trying
to prevent Azerbaijan from joining NATO.
Moscow does not have much economic leverage with Azerbaijan. All
Azeri oil is exported via the Baku-Tbilisi-Ceyhan (BTC) pipeline,
bypassing Russia; gas deliveries account for the lion’s share
of trade turnover, but even this source of dependence will be
eliminated once the Shah-Deniz field starts production. However,
given its influence on Armenia, Russia is still an important mediator
in the Nagorno-Karabakh conflict. This mediation is also vital for
Azerbaijan’s biggest investor – the United States. Shareholders in
the BTC pipeline and the new Baku-Tbilisi-Erzurum pipeline require
transit security. Moscow cannot side with Azerbaijan, at the risk
of losing Armenia – a member of the CIS Collective Security Treaty
Organization and Russia’s sole ally in the Trans-Caucasus.
Foreign Ministry spokesman Mikhail Kamynin said on November 7 that
Russia is prepared to act as a conflict regulation guarantor if Baku
and Yerevan can reach a compromise themselves. But this is unlikely:
Armenian Foreign Minister Vartan Oskanian has already made it clear
that his meeting with his Azeri counterpart on November 14 in Brussels
will not be successful. Oskanian also said recently that if “Russia
recognizes one or more of the unrecognized republics, the Armenian
Foreign Ministry will make an appropriate statement.” It is a sticky
situation.
In the meantime, Western countries are trying to draw Azerbaijan
further into their orbit. Citing diplomatic sources, the “Zerkalo”
newspaper (Baku) reports that “Azerbaijan is expected to make an
official application for NATO membership within days.” However,
judging by Azeri Foreign Minister Elmar Mamediarov’s statement about
Russia’s “important role” in the region, Baku is not prepared to take
that step as yet. Sergei Markedonov from the Political and Military
Analysis Institute says: “Azerbaijan understands that joining NATO
would exacerbate tension in relations with Russia, and draw Azerbaijan
into the Iran campaign. So Aliyev has to keep maneuvering.”
All the same, according to Azeri political analyst Zafar Guliyev,
Baku’s policies could tilt towards the West in the near future. And the
invitation for Aliyev to visit Moscow after Brussels may be regarded
as the Kremlin’s attempt to prevent such developments.

The Moscow Times
Monday, November 13, 2006
Melikyan Vows to Close Banks
By Gleb Bryanski
Reuters
The Central Bank will press on with its cleanup of the banking system
despite the murder of reformist banking supervisor Andrei Kozlov, the man
who took over his role said in an interview Friday.
“We will withdraw licenses from any banks that don’t have a real banking
business and only deal in dirty money – and we will do it without mercy,”
Central Bank Deputy Chairman Gennady Melikyan said.
Melikyan said, however, that the regulator did not aim to destroy as many
banks as possible and did not set any targets. He said the Central Bank was
prepared to help solid banks fix breaches.
“If a bank has a real business, we would try to mend its ways,” Melikyan
said. “We would give them a couple of months to sort things out and report.
If that does not happen, we will take tougher action. I have to say, many
understand and accept our policy.”
Melikyan also said the country’s banking system must grow as quickly as
sound risk management will allow to fund investment and economic
development.
Melikyan, 58, was appointed head of the Central Bank’s banking supervision
committee one week after Kozlov was gunned down in September.
Melikyan has yet to become the bank’s first deputy chairman, a promotion
needed to assume all Kozlov’s powers.
Three people have been arrested in connection with the murder, which
investigators and politicians believe was a contract killing related to his
work.
A former labor minister in the early post-Soviet years, Melikyan joined the
Central Bank in 2003 from state-owned Sberbank, where he was deputy
chairman.
Melikyan has kept a low public profile and his bureaucratic background
dating back to the Soviet era has led some to question whether he would
press ahead with Kozlov’s policy of weeding out suspicious banks.
The Central Bank has stripped nearly 90 of the country’s 1,200 banks of
their licenses in the last two years. Nine licenses have been withdrawn
since Kozlov’s murder.
“Have a look at the organizations we take away licenses from. Can you regard
these organizations as banks? I can say – only with great reservations,”
Melikyan said.
He said one of the banks that had recently lost its license was housed in a
basement where one person performed illegal money transfers on a single
computer connected to the Internet.
“There is a number of marginal banks which do not do real banking, they are
all involved in money laundering and conversion of large sums of money into
cash,” he said.
Melikyan said that although cash issuance was not an illegal operation in
itself, the volume of it was often a signal that a bank was involved in
illegal operations.
“When there is a little bank with five employees that issues 15 billion
rubles [$560 million] in cash, I smell a rat right away,” said Melikyan, who
also heads the Central Bank’s unit running field checks on banks.
Melikyan said suspect banks run complex schemes involving chains of shell
firms and purchases of fictitious shares or goods. He said the main purpose
of the schemes was tax evasion.
Melikyan said the deposit insurance system created after a 2004 mini-banking
crisis raised banks’ transparency and improved internal control and risk
management. About 950 banks have so far been accepted into the scheme.
“I think the number of banks in Russia would shrink further but I cannot say
how many banks there should be,” he said, pointing out that, of Russia’s
1,200 banks, the top 20 controlled 90 percent of the banking system’s
assets.
Melikyan said he was worried about a growing share of bad loans in the
banking sector but dismissed analysts’ fears that a liquidity crunch caused
by a fall in oil prices would deliver a blow to the banking sector.
“When the effective rate on a loan is 40 percent, even if some loans turn
bad, the bank is still living in clover,” Melikyan said, referring to steep
interest rates some banks charge for consumer credit.
Melikyan said many banks were cheating their customers and charging them
hidden fees that raise the effective interest rate. “In many cases people
don’t pay because they think they are being ripped off,” he said.
Melikyan also said he was concerned about many banks financing their retail
growth through foreign borrowing but said there was no question about
imposing restrictions.
“I am seriously worried about external borrowing, especially by state-owned
firms. But to ban borrowing without offering an alternative is not
suitable,” he said.

Panorama.am
18:20 11/11/06

CABINET OF RUSSIAN LITERATURE AND CULTURE AFTER LIKHACHOV OPENS AT
SLOVIANSKI UNIVERSITY
Russian-Armenian (Slovianski) University opened a cabinet after
Likhachov within the framework of days dedicated to the memory of the
literary critic and academician. Armen Darbinyan, rector of the
university, said, `the room of Likhachov is a little late. However, it
will become a spiritual answer to the great contribution of Likhachov
in the development of Armenian history.’
Dozens of books were donated to the cabinet, including books with
Likhachov’s signature. The university also summed up the competition
for the best essay on the subject of Likhachov. /Panorama.am/

The New Anatolian, Turkey
Nov 11 2006
Poland seeks to mediate between Turkey, Armenia
The New Anatolian / Warsaw
Polish Senate Chairman Bogdan Borusevic on Friday requested to
mediate between Ankara and Yerevan, through representing Armenia in
Turkey and vice versa until the two countries normalize their
relations.
Speaking to reporters following his contacts in Baku, Azerbaijan,
Borusevic stressed that the Polish initiative aims at easing tensions
and strengthening trust between Turkey and Armenia, noting his
country’s good relations with both countries.
“Although the border between Turkey and Armenia is closed, there are
limited and indirect economic relations between them,” he said.
“There is the need to establish the appropriate atmosphere to solve
the problems. Therefore, the Polish Foreign Ministry has requested to
represent the interests of Armenia in Turkey and Turkey in Armenia.
We are awaiting replies.” He also underlined the need for a positive
stance from both sides for the Polish initiative to succeed.
Borusevic also touched on the situation of Nagorno-Karabakh, saying,
“Poland thinks that the problem of the disputed enclave should be
solved through peaceful means through protecting the territorial
integrity of Azerbaijan.”
Praising the efforts of Organization for Security and Cooperation in
Europe (OSCE) Minsk Group towards finding a peaceful solution to the
dispute in Nagorno-Karabakh, Borusevic said, “They are bringing
apparent suggestions and direct parties about what kind of steps
should be taken.”
The disputed territory in Azerbaijan has been under the control of
Armenian and ethnic Armenian Karabakh forces since a 1994 cease-fire
ended a six-year separatist war that killed about 30,000 people and
drove about 1 million from their homes. The region’s final status has
not been worked out, and years of talks under the auspices of
international mediators have brought few visible results.

Noyan Tapan News Agency, Armenia
Nov 10 2006
“WE MUST WORK WITH BOTH REPUBLICANS AND DEMOCRATS,” AAA REGIONAL
DIRECTOR SAYS
YEREVAN, NOVEMBER 10, NOYAN TAPAN. “The Armenian Assembly of America
(AAA) is a non-partisan public organization, and there is no
difference for its representatives who won the elections of the U.S.
Congress, and that we must continue working both with democrats and
with republicans: both parties are very important for us” Arpi
Vardanian, the AAA Regional Director for Armenia and Nagorno Karabakh
stated about it in the interview to the Noyan Tapan correspondent,
responding a question on the issue what meaning results of the late
Congress elections will have for Armenian lobbying organizations of
the U.S.
She reminded that before the elections the Congress Armenian Caucus
consisted of 163 people. In her words, it is quite obvious that this
number must change after the elections, as at the moment it is not
known yet who from this congressional caucus is re-elected, and some
weeks are necessary for summing up final results. “We must meet and
start working with newly elected members of the Congress to involve
them in work of this caucus,” Arpi Vardanian stated.
As for possible election of democrat Nancy Pelosi, a member of the
Congress Armenian Caucus, for the position of the House of
Representatives Speaker, in Arpi Vardanian’s words, though this issue
is not solved yet,”everybody considers in Washington that just she
will become the Speaker.”
A.Vardanian mentioned that N.Pelosi’s activity was addressed to
assisting solution of Armenian issues and during her pre-electoral
campaign N.Pelosi stated about the necessity of the Armenian Genocide
recognition. Besides, in A.Vardanian’s words, N.Pelosi has always
actively participated in actions of the Armenian community, addresed
to the Armenian Genocide recognition. “We’ll work with Nancy Pelosi
in the way we have always worked, and we hope that she will continue
its activity on assisting Armenia as the Speaker of the House of
Representatives as wll,” the AAA Regional Director stated.

Noyan Tapan News Agency, Armenia
Nov 10 2006
ARMENIAN SCHOOL FUND TO CONTINUE DONATING SCHOOL PROPERTY TO 333
ARMENIAN AND ARTSAKH SCHOOLS IN FUTURE
YEREVAN, NOVEMBER 10, NOYAN TAPAN. The Armenian School charity fund
plans to continue donating school property – desks, blackboards and
other necessary things to 333 schools of Armenia and Artsakh in the
future. Levon Aharonian, Chairman of fund’s Board of Trustees, said
this at the November 10 press conference. He said that lately the
fund gave school desks intended for 9400 pupils to schools that were
in hard financial position.
In L.Aharonian’s words, the primary goal of the fund functioning
since 2003 is especially to assist Armenian and Artsakh border
schools by giving them pupils’ and teachers’ desks and chairs. “Is is
no secret what depression shabby and broken property can cause among
children entering school for the first time,” the Chairman of the
fund’s Board of Trustees said. For the present, needy schools have
received 6000 pupils desks thanks to the Armenian School. He said
that the materials needed for making school property are bought by
the fund abroad and are made at local enterprises.
Levon Aharonian said that the fund obtains resources thanks to
fund-raisings.
RA Minister of Education and Science Levon Mkrtchian appreciating the
fund’s work and donations regretted to say that only Diasporan
benefactors are included in the fund, while in Armenia we also have
some persons who “if they wish can provide part of their sums for
native school building.”

NEW US CONGRESS TO POSE MORE TROUBLES FOR TURKEY
Turkish Daily News
Nov 9 2006
The Democratic Party’s landslide win in Tuesday’s U.S. congressional
polls will mean more headaches for Turkey, at least in the House of
Representatives, whose control now belongs to the election’s victors.
Nancy Pelosi, a California Democrat who is expected to become the
House’s first female speaker in the new Congress, already has pledged
to support efforts for recognition of the Armenian killings in the
last days of the Ottoman Empire as genocide.
The Democratic Party garnered a clear majority in the House, Congress’
lower chamber, and also may win control of the Senate after the fate
of at least two contested seats there becomes clear.
The election outcome is a clear defeat for Republican President George
W. Bush and his Iraq policies.
The repercussions of losing even one of the houses is enough to pose
grave consequences for Bush, whose “lame duck” presidency in his
remaining 26 months in office will likely worsen under increasing
attacks by a hostile Democratic-controlled House of Representatives.
There will also likely be adverse implications of the Democratic
takeover of Congress for Turkey, although Turkey is never an actor in
U.S. domestic politics, Turkish diplomats fear. The likeliest fallout
will be on the Armenian genocide controversy.
“I have supported legislation … that would properly acknowledge the
Armenian genocide. It is imperative that the United States recognize
this atrocity and move to renew our commitment to eliminate genocide
whenever and wherever it exists. This effort enjoys strong bipartisan
support in the House, and I will continue to support these efforts in
the 110th Congress,” Pelosi said in a recent message to a prominent
U.S. Armenian publisher.
In the outgoing House, there were also resolutions for genocide
recognition, but Dennis Hastert, current speaker and a close Bush ally,
had never brought them to a full floor vote.
As Pelosi points out, there is strong bipartisan backing for
genocide recognition in the House, and her speakership will be a
great encouragement for Armenian groups who emphatically will seek
a genocide resolution’s passage before April 24 of next year.
The new Congress will meet in January, and new genocide recognition
resolutions are expected shortly after.
A potential U.S. recognition of the Armenian genocide would be a top
prize for the Armenians, who subsequently would raise compensation
and land issues with Ankara, the Turkish diplomats fear.
And that is not all. There is also the Iraq quagmire, and the Democrats
want to shape U.S. policies in ways that could hurt Turkey’s interests
even more.
Turkey has suffered enough from the Republican invasion of Iraq,
but there is more to come from Democratic-inspired approaches,
the diplomats fear. Ankara supports continued U.S. commitment to a
unified Iraq because other options will present even worse outcomes.
Recently, prominent Democrats, including leading former diplomat
Richard Holbrooke, have called for a redeployment of U.S. troops in
Iraq to Kurdish-controlled northern areas.
At a time when Sen. Joseph Biden, a top foreign policy figure in
the Democratic Party, is calling for Iraq’s effective partitioning
through the creation of three statelets in a very loosely federated
Iraq, such proposals are likely to be increasingly embraced by the
Democrats as well as by some Republicans.
Biden will become chairman of the Senate’s Foreign Relations Committee
if the Democratic Party wins the upper chamber’s control.
Such plans, including redeployment of U.S. forces in the north,
are seen by Ankara as moves that would finalize the formal creation
of a Kurdish state that could have huge repercussions on Turkey’s
Kurdish population.