Author: Emil Lazarian

The Road to Yerevan
Emerging Markets Economic Briefings
Oxford Business Group
Turkey, Volume 154
17.06.2005
A Turkish parliamentarian’s recent visit to Armenia has once again
spurred talk of Turkey reopening its border with its eastern neighbour –
a move that could spur trade and create jobs in Turkey’s impoverished
eastern provinces, while also providing a massive boost to Armenia’s GDP.
But before such a thing can happen, the two countries would have to
settle several long-simmering political spats, or at least choose to
ignore them – a process that carries some heavy political and historical
burdens.
In early June, Turhan Comez, a deputy in Turkey’s ruling Justice and
Development Party (AKP), visited Armenian deputy Hacat Sukyasian in
Yerevan. This was the first visit by a Turkish parliamentarian to
Armenia since Turkey sealed its borders with its eastern neighbour in 1993.
This closure came as a result of Armenia’s conflict with Azerbaijan.
Azeri defeat in the conflict led to Armenia occupying a land corridor
between its frontiers and the Armenian enclave of Nagorno-Karabakh,
which lies within Azeri territory. This occupation remains in place to
this day.
Turkey has long supported its ethnic kin in Azerbaijan, and closed the
border to pressure Armenia into resolving the conflict. Yet closing the
frontier has had a major economic impact on both sides.
Armenia, small and landlocked in the Caucasus region, lost a large and
valuable trading partner and a viable shipping route. Meanwhile, Turkey
saw a collapse in commerce in its eastern provinces, which are now among
its poorest.
At present, goods do circulate between the two countries, but largely
via a more circuitous route, using connections through Georgia. This,
however, is a far more costly business, both in terms of time and money.
Direct flights do run between Yerevan and Istanbul, yet these are of
minimal economic impact.
The co-chairman of the Turkish-Armenian Business Development Council
(TABDC), Kaan Soyak, claimed back in February that according to official
data, the volume of Armenian-Turkish goods in 2004 was a meagre $120m.
This, he suggested, could triple should the border be reopened. TABDC
also has ambitious plans ready to restore the Kars-Yerevan railway,
should the border be reopened, turning the currently desolate eastern
frontier into a major trade and transport corridor. This in turn would
provide a boost to the local economy that might help reverse the trend
towards depopulation on the Turkish side, as poorer rural dwellers head
west for jobs in the big cities.
TABDC also has integration plans such as an online wholesale market for
agricultural products grown in Armenia and eastern Turkey already set out.
Yet even with the obvious benefits for both sides, calls for an open
border and trade between the two countries have had little impact in the
past.
Armenia’s foreign minister, Turkish and Armenian businessmen and Western
diplomats have all expressed a preference for economic co-operation, and
Yerevan has stated it is ready for an unconditional restoration of land
links. However, Ankara has not been willing.
Yet, “Turkey’s own economic interests are playing a role here,” Nicolas
Tavitian, TABDC’s Brussels representative, says. “It is precisely
because [the Turks have] much to win from the border reopening that they
are perhaps seriously considering that possibility now.”
As for Armenia, if the border were opened, Tavitian argues, citing World
Bank statistics, “Armenia’s exports would double in the short term and
its GDP would increase by an estimated 30 to 40%.”
However, while the economic arguments for reopening the frontier may
have been clear for some time, the issue remains clouded by political
and strategic concerns. Indeed, few expect any shift in Turkey’s
position as long as the Nagorno-Karabakh issue remains unresolved. While
EU pressure may be on for Turkey to normalise its relations with its
neighbours – indeed, this is a positive requirement of EU candidate
Turkey in its accession process – and US pressure may be on as part of
Washington’s wider Central Asian strategy, Ankara remains largely pinned
down by its Azeri commitments.
Meanwhile, the controversy over Armenian claims of a genocide committed
by Ottoman Turks against them in 1915 also makes a resolution of
disputes between Turkey and Armenia much more complex. At the same time,
Ankara also accuses Yerevan of failing to satisfactorily renounce
territorial claims on Turkey.
Yet Comez’s visit, and generally positive reception, also indicates that
there is strong pressure for change and reassessment building. Tickets
through to Yerevan on the Kars railway may still be some way off, but
they may not be entirely out of the question, either.
From: Emil Lazarian | Ararat NewsPress

NTV MSNBC, Turkey
June 17 2005
German parliament’s Armenian bill draws Turkish ire
The CHP said that the bill was a fiasco on the behalf of the
government’s foreign relations policy.
Guncelleme: 17:43 TSI 17 Haziran 2005 Cuma- The German parliament’s
passing of a motion recognising claims that the Ottoman Empire had
massacred many of its Armenian community some 90 years ago will cast
a shadow over Turkish-German relations, the speaker of the Turkish
parliament said Friday.
Parliamentary speaker Bulent Arinc has sent a letter to his German
counterpart saying that the bill, which also calls on Turkey to
acknowledge the allegations that Armenians were massacred in 1915,
was neither based on common sense or on facts.
Also on Friday, Kemal Anadol, the leader of the parliamentary group
of the main opposition Republican People’s Party (CHP), said that
history and politics were two terms that should not come together and
slammed various parliaments for passing resolutions without knowledge
or understanding of the facts.
The leader of opposition True Path Party (DYP), Mehmet Agir, was
another to react to the bill, saying that by this decision Germany
had covered the head of history with a sack.
From: Emil Lazarian | Ararat NewsPress

Zaman, Turkey
June 17 2005
Miqati: Erdogan Lights our Path
By Erdal Sen
Published: Friday 17, 2005
zaman.com
The first Turkish Prime Minister visiting Lebanon, Recep Tayyip
Erdogan called on Arab leaders not to make enemies but win friends
and offered cooperation for political reforms at the Arab Economy
summit in Beirut, where he is the honorary guest.
Erdogan met with Lebanese Prime Minister Najib Miqati after the summit,
attended by representatives from 30 countries. At a news conference
after the meeting, the two leaders answered questions.
When asked about the Broader Middle East Project (BMEP), the Lebanese
Prime Minister said, “We have been watching Erdogan, his attitudes
and his activities. His behavior in projects has been illuminating
to us. Democracy and freedoms are important arrangements. No country
can reject these principles. If Erdogan finds support from the floor,
he might be successful. Lebanon and Turkey are two countries, which
record development in democracy day by day.”
When asked about his comments on the protest by Armenians against the
alleged genocide, Miqati responded: “It is an issue that interests
historians. It was not on the agenda of our meetings.” Praising
economic stability in Turkey, Miqati said that there are numerous
cooperation opportunities in Turkey.
Flood of praise for Erdogan at summit
As the first Turkish Prime Minister to visit Lebanon, Erdogan was
invited to the rostrum for a speech at the summit with the following
introduction, “The Prime Minister, who is shown a flood of love from
the Islamic world.” Erdogan, who was the honorary speaker of the
forum, was introduced with the words, “His service in Turkey has no
equal throughout history.”
Erdogan gave important messages during his speech. Urging the Arab
world to make political reforms and proposing close cooperation in
the reform process, Erdogan said: “I would like express our wish
to develop and continue cooperation friendship in all fields within
the economic and political reform process that has been rooting in
our region with countries that Turkey has cultural and historical
links with.” Pointing out that Turkish-Arabic relations should be
developed on many dimensions, Erdogan called on Arab leaders to not
to make enemies but friends. Explaining his successes within the
last 2.5 years with examples and numbers, Erdogan said, “Turkey is a
trustworthy business partner for the Arabic world.” Erdogan stressed
they make no differentiation between domestic and foreign investors
and guarantee he would personally interfere if Arab businessmen,
who plan to make investments in Turkey, face bureaucratic obstacles.
From: Emil Lazarian | Ararat NewsPress

ARMENIA READY TO LEND FINANCIAL SUPPORT IN RESTORATION OF ABKHAZIAN RAILWAY
AZG Armenian Daily #111, 17/06/2005
Region
Armenia is ready to allocate part of the financial sources required
for the restoration of railroad communication through the territory
of Abkhazia. Mediamax agency informed that Ararat Khrimian, head of
“Armenian Railroads” CJSC, stated this in Tbilisi. He was participating
in the sitting of transport council of CIS member countries.
“Armenia wants to be involved in the project of restoration of
Sochi-Tbilisi Railroad communication, if Russia and Georgia take
a final decision on state level on restoration of that part of the
railroad,” Khrimian stated.
Genady Fadeyev, head of Russian Railroads, stated in his turn that
the expenditure of restoration of the Abkhazian part of the railroad
will cost about $100 million.
Zurab Noghayideli, Georgian prime minister, said at the sitting of
transport board of the CIS member countries that Tbilisi has a more
positive position in the issue of restoring the Abkhazian part of the
railroad. At the same time, Noghayideli said that one shouldn’t hurry
unless there are unsolved issues, particularly the issue of securing
the safety of Gali region’s residents.

AsiaNews.it, Italy
June 16 2005
Armenians protest Erdogan’s visit to Beirut
by Youssef Hourany
Hariri’s warm welcome to Turkish Premier is criticised as the
campaign gets hotter. Hizbollah says no to forcing President Lahoud
to resign.
Beirut (AsiaNews) – Four days from the last and decisive round of
Lebanon’s elections, the visit by Turkish Prime Minister has provoked
protests by the country’s Armenian community. It is also generating
anti-Saad Hariri feelings in this community. For its part, today
Hizbollah rejected Hariri’s call for President Lahoud’s resignation.
Protests by the Armenian community in its Bourj Hammouyd stronghold
against the visit by the Turkish Prime Minister are a new factor in
the ongoing political crisis that is shaking Lebanon.
Residents of the populous neighbourhood-reputed for its banks,
shopping centres and jewellery shops throughout the Middle East-have
blocked streets and shut down stores.
Armenians blame Turkey for committing genocide against them in the
early part of the 20th century and demand that the international
community condemn this act so that it may never happen again
elsewhere.
Lebanese-Armenians have also protested against the attitude shown by
newly-elected MNA for Beirut Saad Hariri, who gave the Turkish
Premier a very warm welcome.
Upon arrival, Mr Erdogan went to Rafik Hariri’s mausoleum in downtown
Beirut to pay his respect to the slain former Lebanese Prime
Minister.
Saad Hariri is working on his election campaign in northern Lebanon
where two main slates of candidates are running-one that sees
Interior Minister Suleiman Frangieh allied with General Michel Aoun;
the other made of Hariri, Kornet Chehwane, and the Lebanese Forces.
The round in northern Lebanon will complete the staggered process to
elect Lebanon’s 128-member National Assembly, evenly divided between
Christians and Muslims in accordance with the 1989Taif agreement.
Results next Sunday will determine the new political map of the
country. Surveys indicate that the 28 seat up for grabs might split
down the middle with 14 going to each of the two main groupings.
Should this happen current President Emile Lahoud is likely to
continue his mandate until 2007.
After the elections though, lawmakers will have to elect a new
Speaker of the National Assembly and choose a new Prime Minister.
Since yesterday, Saad Hariri has been on the campaign trail in
Tripoli helping his allies.
According to Gebran Bassil, who is running on General Aoun’s ticket,
Hariri’s help includes handing out petrodollars.
Mr Bassil said the Frangieh-Aoun alliance trusted the people,
reaffirming its conviction that it was not for sale; voters, he said,
have done everything to preserve Lebanon’s true character.
The northern region, he added, is the Land of Saints, the Land God
blessed with shrines, that of Saint Rebecca, Saint Neemtallah and
Saint Charbel.
In the meantime, Hizbollah deputy secretary general, Sheikh Nahim
Kassem, said that it was necessary to preserve the presidency. His
party, which now has 14 members in the National Assembly, is against
the demand by Jumblatt, Hariri and the Kornet Chehwane group to
remove Lahoud from office before the end of his mandate in 2007.
The head of the Presidency’s Economic, Social and Educational Affairs
Directorate Faten Nader told AsiaNews that President Lahoud wants to
see Lebanon reborn.
She insisted that the President is attached to the country’s
political institutions which, in his view, remain the only way to
help it maintain its mission. As Pope John Paul II said: “Lebanon is
more a message than a country”. And for Ms Nader the Lebanese must
follow reason and overcome sentimentality.
Today also marks the return to Lebanon of former Deputy Prime
Minister Issam Fares, who after Rafik Hariri’s assassination, said he
would retire from politics.
Contacted by phone by this news agency, he said that northerners will
speak their mind on Election Day. “This people will never be bought,
as some might want,” he said.
Fares confirmed that he was against removing President Lahoud from
office and reiterated his support for the Frangieh-Aoun alliance.
(YH)

Zaman Online, Turkey
June 16 2005
Bundestag Unanimously Approves Armenian Draft
By Anadolu News Agency (aa)
Published: Thursday 16, 2005
zaman.com
The German Federal Parliament, the Bundestag, has unanimously approved
a resolution draft anticipating the commemoration of the alleged
Armenian genocide issued by the Christian Democratic Party (CDP)
and Christian Socialist Party (CSP).
The draft with the title of “Commemorating 1915 Armenian Exchange
and Massacre – Germany should contribute to peace between Turks
and Armenians” has been prepared by the compromise of all political
parties including Social Democratic Party (SDP), CDU, CSU, Union 90/
Green Party and Free Democratic Party (FDP).
The draft approved by the Bundestag extends respect to the Armenian
victims and regret for the responsibility of the German state for
the incidents.

Injunction freezes Melkonian closure decision
By Jean Christou
Cyprus Mail, Cyprus
June 16 2005
THE ARMENIAN Patriarch of Constantinople and Turkey, Mesrob Mutafyan,
has filed a court injunction against the AGBU to overturn the decision
to close the Melkonian Educational Institute in Nicosia.
The interim order, issued on June 7, also forbids the AGBU or its
agents in Cyprus from selling or developing any part of the school’s
estate on the busy Limassol Avenue.
The AGBU has managed the property, as well as the secondary boarding
school, and decided last year that the school would close in June
2005. This decision was challenged by parents and members of the
school’s worldwide alumni, as it is the only institution of its kind in
the enlarged European Union, while also teaching the Armenian language
and culture to youngsters from eastern Europe and the Middle East.
The injunction follows a recent court action filed by the Patriarch
in the Nicosia District Court, challenging the AGBU’s decision to
close 79-year-old school, in violation of the initial trust set up
by the school’s founder, Garabed Melkonian. The new injunction also
demands that the AGBU accounts for all amounts collected from the
management of the estate as well as any amount collected during the
past eight decades.
Finally, the Patriarch also demands that the transfer of the estate’s
deed to the AGBU be considered null and void and that this should be
transferred to the Patriarch in trust for the Armenian communities
of Cyprus and the region, as well as the Armenian Diaspora as a whole.
In a statement issued yesterday, the Melkonian Alumni in Cyprus and
concerned parents hailed the court order saying that “justice will
take its course”.
This, they said, raises hopes that the school could be saved and may
even resume operations in September.

Russian budget will fix expenditures on withdrawal of military bases from Georgia
17:00
RIA Novosti, Russia
June 16 2005
MOSCOW, June 16 (RIA Novosti) – The Russian government must take into
consideration the expenditures, connected with the withdrawal of two
Russian military bases from Georgia in the draft three-year budget,
Russian Defense Minister Sergei Ivanov said at the Thursday session
of the government.
“The withdrawal of the bases is the task of the state, and the
expenditures, undertaken by the state in this connection, must be
taken into consideration in the three-year budget,” Ivanov said. “It
is obvious that a great work will have to be done. This withdrawal
operation will be difficult from the point of view of both its amount
and financing. We shall have to purchase, for example, a great amount
of fuel to transport the military equipment on ships and trailers.”
As a result of the negotiations in Moscow on May 30, the Foreign
Ministers of Russia and Georgia signed a joint statement under which
Russia must complete the withdrawal of its military bases from Georgia
in the course of 2008.
“The withdrawal of Russian military bases from Georgia will
be completed in the course of 2008,” Russian Foreign Minister
Sergei Lavrov told reporters later, summing up the results of the
negotiations.
“The joint statement says that the withdrawal will go on stage by
stage: first of all heavy equipment will be withdrawn, then the
personnel, after that the Russian military installations will be
transferred to Georgia,” the minister specified.
Russia and Georgia were conducting negotiations about the time of
the withdrawal of the bases since 2001. At first Moscow proposed a
14-year period for their withdrawal, than 11 and 9 years; Tbilisi
insisted on 3 – 4 years, then on 2 – 3.
On March 10, 2005 the Georgian parliament passed a resolution that
in case agreements will not be reached before May 15, 2005, it was
proposed to demand that Russia should withdraw its bases before January
1, 2006. However, at their negotiations in Moscow on May 30 the Foreign
Ministers of the Russian Federation and Georgia achieved agreements.
According to the joint statement, signed by Lavrov and Zurabishvili,
the withdrawal of Russian military bases from Georgia must be completed
in the course of 2008. The main part of the arms from the Russian
bases will be transported to the Russian Federation and a certain
part to Armenia, to the Russian military base in Gyumri.

Armenia transports cargo via Black Sea after Azeri transit ban – TV
Azad Azarbaycan TV, Baku
15 Jun 05
[Presenter] Even though Baku has prevented cargo from being transported
to Armenia via Azerbaijan and Georgia, interested companies have
chosen a new route. Officers from the [Azerbaijani] State Customs
Committee have defined the route.
[Correspondent over video of head of the State Customs Committee
Kamaladdin Heydarov] Cargo transport to Armenia via the Black Sea
has increased since Azerbaijan prevented it from being transported to
Armenia through its territory and Georgia, the head of the Azerbaijani
State Customs Committee, Kamaladdin Heydarov, has said. He went on
to say that mainly oil products were being transported to Armenia.
[Heydarov, speaking to microphone] According to our information,
the volume of fuel products which are being transported to Armenia
via the Black Sea has increased. We know that Armenia receives oil
from Iran as well. But this has not yet been verified.
[Correspondent] Mr Heydarov said that local businessmen investing in
Azerbaijan will be exempt from customs duties under the president’s
anti-inflation decree. He said that only foreign businessmen have
been granted this opportunity so far.
[Passage omitted: Heydarov hopes the issue will be settled soon,
customs export duties to be paid with plastic cards]
From: Emil Lazarian | Ararat NewsPress

AZG Armenian Daily #110, 16/06/2005
Diaspora
COURT INJUNCTION FREEZES MELKONIAN CLOSURE DECISION
Commercial deals on hold
Nicosia, June 15, 2005 – The Armenian Patriarch of Constantinople and
Turkey, Mesrob Mutafyan, has filed a court injunction against the
AGBU to overturn the decision to close the Melkonian Educational
Institute in Nicosia.
The interim order, issued on June 7, also forbids the AGBU or its
agents in Cyprus from selling or developing any part of the school’s
estate on the busy Limassol Avenue.
The AGBU has managed the property, as well as the secondary boarding
school and decided last year that the school would close in June
2005. This decision was challenged by parents and members of the
school’s worldwide alumni, as it is the only institution of its kind in
the enlarged European Union, while also teaching the Armenian language
and culture to youngsters from eastern Europe and the Middle East.
The injunction follows a recent court action filed by the Patriarch
in Nicosia District Court, challenging the AGBU’s decision to close
79-year old school, in violation of the initial trust set up by the
school’s founder, Garabed Melkonian.
The new injunction also demands that the AGBU accounts for all amounts
collected from the management of the estate as well as any amount
collected during the past eight decades.
Finally, the Patriarch also demands that the transfer of the estate’s
deed to the AGBU be considered null and void and that this should be
transferred to the Patriarch in trust for the Armenian communities
of Cyprus and the region, as well as the Armenian Diaspora as a whole.
The injunction order has been served on the AGBU in New York and copies
have been handed to their representative in Cyprus, Gordon Anderson,
the school’s Principal and the school’s secretariat.
In a statement issued Wednesday, the Melkonian Alumni in Cyprus and
concerned parents hailed the court order saying that “justice will
take its course”.
This, they said, raises hopes that the school could be saved and may
even resume operations in September.
“Many wanted to grab part of the school’s estate, either to develop
commercially, or to build luxury homes or even sports facilities. But
what they had in mind was not in the best interest of the school or
the students and should forget any plans they may have, thanks to the
injunction order,” said Shavasb Bohdjalian, Chairman of the Alumni
Association in Cyprus.
“We are sending a message to all concerned of ‘Hands off the
Melkonian’,” added the association’s vice-chairman Masis der Parthogh.
He explained that the Ministry of Interior had issued a protection
order on some 60% of the school’s estate, declaring the twin historic
buildings erected in 1925, as well as the small forest along Limassol
Avenue, as a national heritage site.
Der Parthogh added that with the new court order, anybody planning to
develop any part of the school’s property, or change the spirit of
the establishment of the trust, i.e. operating a boarding secondary
school offering primarily Armenian education, would be in violation
of a court order and could face jail.
Alumni, parents and friends have united to challenge the AGBU’s
decision to close the school and have found support in the people of
Cyprus, the government and the House of Representatives.
The House unanimously adopted a resolution in March 2004 saying that
the Melkonian school should remain and that any decision intended to
change this situation would be considered as a “hostile act”, while
the House Education Committee reopened discussion on the matter a
few weeks ago, demanding that the AGBU reveal all its plans regarding
its decision to close the Melkonian.
From: Emil Lazarian | Ararat NewsPress