Fitch Grants Armenia BB- Rating

FITCH GRANTS ARMENIA BB- RATING

RIA Novosti, Russia
June 5 2006

YEREVAN, June 5 (RIA Novosti) – International rating agency Fitch
said Monday it had assigned Armenia foreign and local currency issuer
default ratings of BB- with a stable outlook.

The agency also assigned the country a short-term rating of B, and
a country ceiling of BB-.

David Riley, Managing Director of Fitch’s Sovereigns Group,
said: “Armenia’s sovereign credit ratings are supported by prudent
macroeconomic policies and a declining public and external debt burden
that compares favorably with rated peers.”

He said the country’s impressive economic performance had been
underpinned by a robust and coherent macroeconomic policy framework,
and wide-ranging structural reforms that had enhanced the capacity
of the economy to absorb adverse shocks.

If Russia Yields Armenia, It Will Lose All Of Its Positions In TheCa

IF RUSSIA YIELDS ARMENIA, IT WILL LOSE ALL OF ITS POSITIONS IN THE CAUCASUS: INTERVIEW WITH VIKTOR NADEIN-RAYEVSKY

08.html)
15:04 06/05/2006

Senior researcher of the Institute of World Economy and International
Relations of the Russian Academy of Sciences Viktor Nadein-Rayevsky
answers REGNUM’ s questions:

REGNUM: Mr. Nadein-Rayevsky, presently Russian Foreign Minister Sergey
Lavrov is paying a visit to Turkey and Turkish President Ahmed Necet
Sezer is going to shortly visit Russia. The sides are speaking about
strategic cooperation – basically, in energy. What do you think about
Russian-Turkish relations and the prospects of their development?

The strategy term is hardly applicable to Russian-Turkish
relations. Russia and Turkey have never had any strategy in the
past, do not have it in the present and will hardly have it in the
future. Turkey was the first who tried to bring in some strategy in
bilateral relations: in 1990 Ankara attempted to make a strategic
alliance with the Soviet Union, but decided to take time when it
collapsed. The Turks hoped that now they would be able to enlarge
relations already with the post-Soviet republics and with some of
them to use the factor of common Turkic origin and language. They
planned this almost the way Ataturk planned, but they failed: the newly
independent nations turned out to be quite different in mentality and
culture. Historically, Turkey itself is responsible for the gradual
distancing between the Turkic nations: they first regarded themselves
as Ottomans, then, under Abdul Hamid II, they proclaimed pan-Islamism,
then, they still preferred pan-Turkism and brought into power Young
Turks, who joined Germany during the WWI – so much eager they were
to expand.

Everything what happened after 1991 was, to a certain extent,
the consequence of this pan-Turkic policy. Pan-Turkism proved
impracticable – it was like Communism. Not that the national elites
of the Turkic republics were just unready to give up power, they
were simply unwilling to do that: to give power, money and economy
for some idea – nobody will agree to this. Ankara saw that there is
absolutely no basis for pan-Turkism. Roughly speaking, they faced
the same we faced with our Slavonic brothers in XIX.

As regards Russia, as I have already said, it was mainly Turkey who
tried to bring up bilateral relations to the level of strategic
cooperation. The first Ankara’s proposal in 1990 was rejected by
the Soviet authorities as they took it as an attempt to interfere in
the Soviet influence zone, which was right. Turkey raised this issue
again in 1995, when its pan-Turkic policy ran across some impassable
barriers – but our position was the same. It was then that Turkey began
realizing that 90% of its ties in the Soviet area were with Russia
and no Uzbekistan could replace the millions of dollars it got from
shuttle trade. It turned out that language is not the main thing. The
main thing is economic interests – the lives of people and the life of
a nation. This is the very principle the present Russian-Turkish ties
are based on. The key link between Russia and Turkey has been and is
economy. Already before the big energy projects, like the Blue Flow,
Turkey got $6 bln-$15 bln from shuttle trade alone, and it was the
key source of income for its economy for quite a long time.

REGNUM: The first thing that comes in mind when one speaks of Turkey’s
trade policy is Turkish “fast moving consumer goods.” Is this problem
still topical for the Russian consumers, if yes, how serious is it?

In 1995 we warned the Turks that they should not trade with us the
way they did, that they should raise the quality of their goods to the
European standards, that our consumers were buying Turkish goods only
because of hard social conditions, that they would no longer buy them
as soon as they got better-off, that Turkey could lose our market. In
the following years Turkey faced default but still preserved its
shuttle trade. Later, suitcase sellers were replaced by firms trading
in big lots and paying taxes. It was already an improvement. The
quality control was also improved. Now Turkey is trying to make quality
the basis of its trade as it clearly understands that it can get in
the situation the Georgian and Moldavian wines got in.

One should always care for the quality of his exports rather than
just allege that Russia does something for political motives. Our
relations With Georgia have been tensed for many years already —
but what we actually want is to, finally, taste a normal Georgian
wide. Russia is fighting with all low quality producers and with home
producers it is even tougher than with foreigners.

I think we are right as it is high time to stop high mortality caused
by faked alcohol – to stop the death of tens of thousands of people
every year. The same was the situation with the American chicken
legs – the row was big but they solved the problem. The US raised
the quality control standards. Why could they do this and Georgia
and Moldova can’t? This is a national issue, and when the Russian
president spoke about demography he meant there will be no indulgence –
for Turkey either.

REGNUM: They in Armenia are worried with any closer contacts between
Russia and Turkey? Can Russian-Turkish relations be bad for Armenia?

Russia will never cede Armenia for improving its relations with
Turkey. This is a matter of principle. There are things one can
sacrifice, but there are things one cannot. The point is not so
much that two million Armenians live in Russia and many of them
are Russian citizens. For Armenia Russia’s steps must never be
bad. The point is that even the Yeltsin Russia perfectly realized
that it must not waive Armenia’s interests, not mentioning Putin,
who clearly sees the national interests, at least, the clear ones. He
is trying to extrapolate them for the future. I simply can’t imagine
that Russia may yield Armenia – if Russia does this it will lose all
of its positions in the Caucasus.

Russia should understand one most important thing – there are partners
and allied countries with whom one should keep up the sense of alliance
and duty.

REGNUM: How could you explain the outburst of activity of the
Iranian Azeris? Large-scale destabilization – is it possible and what
consequences it may have?

There are several versions. Northern Iran has two provinces with
some 12 mln-18 mln Azeri residents. Iranian Azeris are not outcasts
in Iran. Iran is a multi-national and multi-religious country and
Azeris have their serious place there. Even the religious leader
of Iran Ayatollah Khamenei is Azeri. The basic principle in Iran is
religion rather than nationality.

Iran’s official version is that the protest actions are an American
project.

They probably have proofs, but I don’t believe this. My personal
opinion is that this is an Iranian project, or the result of local
nationalism, or a preventive action to neutralize a potentially
unreliable element. In any case, many complex processes are taking
place in Iran – many people are displeased with the tyranny of
mullahs who dictate a lifestyle nobody accepts any longer outside
Iran. Obviously, there is tension and there is need for reforms. At
best, this situation may end in reforms and, if the Iranian authorities
prove wise enough to carry them out, everything will be OK. Of course,
the Americans can capitalize on this tension. They can use any social
tension to plot a revolution, which is all but good for Iran.

REGNUM: How much probable is the US’ active invasion of Iran or its
preventive strikes on its nuclear facilities?

Though I don’t believe this will happen, I prefer to call
this hypothetical action “a possible American stupidity.” The
strikes by Israel or US groups will spark off numerous mostly
unpredictable scenarios. One thing is clear – there will be no
internal explosion. The Iranian authorities will be able to unite
their people against the foreign enemy, to stop all reforms, which
will mean an end to the hopes of the democratic part of the Iranian
society. It seems that the Americans do not realize this, they are
like an elephant in a china-shop. For them the invasion of Iran is
an initially counterproductive action. They will immediately lose
the confidence of the Shiahs — 55%-60% of the Iraqis. As a result,
they will get a collapsing coalition and anti-American southern Iraq.

REGNUM: What are the chances that Turkey may join the anti-Iranian
coalition?

I very much doubt that it will. Turkey is wise enough not to get
there as this would be a suicide. This would mean to blow up the
10-12 mln Kurds, to blow up Shiahs – a total of 1/3 of the Turkish
population. This would be a fatal trick. The Turks are wise politicians
and they will not get into this bog exactly now that their economy is
coming out of crisis. The Iraqi example has shown that it is very hard
to insure oneself from the American stupidity. They got into a mess in
Iraq though they could get what they wanted – oil – in a more civilized
manner. Relying on force, they could not imagine that cities can also
be a serious arena for guerrilla war, they were not ready for that.

As regards the South Caucasus, here the major risk is the flow of
refugees who may simply overwhelm the region in case of bad scenario.

http://www.regnum.ru/english/6512

Warsaw: In The Spotlight: Tadeusz Isakowicz-Zaleski

IN THE SPOTLIGHT: TADEUSZ ISAKOWICZ-ZALESKI
by Micha³Pakulniewicz

Warsaw Business Journal , Poland
June 5 2006

Father Tadeusz Isakowicz-Zaleski, a Polish-Armenian, has in the last
months sparked a row on vetting in the Catholic Church.

The church, which played a significant role in battling communism and
preserving traditional and national values both during the partitions
of Poland and in the communist era, has so far been untouchable when
it came to vetting and disclosing former collaborators with the secret
police, the SB.

Isakowicz-Zaleski was a member of student movements in Krakow in the
late 1970s and a Solidarity priest in Krakow’s Nowa Huta district in
the 1980s. He was harassed by the communist state for his activities.

He initiated the current debate on the church’s past in February this
year when he received his SB file from the Institute of National
Remembrance (IPN) and revealed the names of some of those who had
informed on him.

Since February, Isakowicz-Zaleski has been researching the church’s
role in communism and tried to get church officials to help him take
a stand on the issue of priests collaborating with the SB. Receiving
no answer from the church, he decided to reveal the results of his
research independently. However, last week the Archbishop of Krakow,
Cardinal Stanis³aw Dziwisz forbade him to go public, and instead
established the church’s own commission to deal with the issue.

–Boundary_(ID_pF4M4jeSPq0TjvNuhUNUTw)–

ANCA: Grassroots Pressure Building for Congr Hearing on Evans Firing

Armenian National Committee of America
1711 N Street NW
Washington, DC 20036
Tel: (202) 775-1918
Fax: (202) 775-5648
E-mail: [email protected]
Internet:

PRESS RELEASE
May 31, 2006
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

GRASSROOTS PRESSURE BUILDING FOR
CONGRESSIONAL HEARINGS ON EVANS FIRING

— Armenian American Activists Sending ANCA
WebFaxes to their Members of Congress

— Tens of Thousands in Armenia Participate in
“Yellow Ribbon” Campaign to Protest Evans Firing

WASHINGTON, DC – Tens of thousands of Armenians – in the United
States and Armenia – have voiced their outrage over the
Administration’s firing of U.S. Ambassador to Armenia John Marshall
Evans, reported the Armenian National Committee of America (ANCA).

In Armenia, tens of thousands of Armenians took part in the “Yellow
Ribbon Campaign” to protest the Evans firing and, more broadly, to
voice opposition to a number of recent instances in which foreign
diplomats stationed in Armenia have denied the Armenian Genocide.
The campaign, which took place at the Tsitsernakaberd Memorial to
the Armenian Genocide in Yerevan, started on April 24th with
countless thousands of individual Armenians each tying a single
yellow ribbons on 100-yard lengths of rope stretched along the
walking path leading to the Genocide Monument.

In the United States, Armenian American activists have called for
Congressional hearings into the Government of Turkey’s role in
dismissal of this highly-respected 35-year Foreign Service veteran
over his honest and accurate description of the Armenian Genocide
as a clear case of genocide. The ANCA WebFax system – on the web
at – has been used by activists from throughout the
United States – including a large number from state and districts
represented by Members of committees with oversight responsibility
of the State Department. In their WebFaxes, these concerned
citizens have stressed that: “Ambassador Evans is, in effect, being
punished for honoring his President’s pledge to properly recognize
the Armenian Genocide – a promise that George W. Bush made on the
campaign trail in February of 2000 but abandoned once in the White
House. Ambassador Evans should be praised, not dismissed, for
rejecting “gag-rules” imposed by the Turkish Government on the
discussion of the Armenian Genocide by America’s leaders at home
and diplomats abroad.”

In demanding hearings on the Evans firing, the WebFaxers note that
these inquiries should “include testimony by all the key figures
involved, including the Secretary of State Condoleezza Rice and
National Security Advisor Stephen Hadley. Among the issues that
should be explored are the role of the Turkish Government in
exporting its suppression of speech to the United States and the
implications for the future of the Foreign Service if a senior
American diplomat’s career has been ended simply for acknowledging
the historical record on one of the world’s greatest human rights
tragedies.”

Commenting on the lack of openness by the Administration in dealing
with this matter, the WebFax letters note that, “the Administration
has lacked the courage to speak honestly – either to Congress or
the American people – about its reasons for firing Ambassador
Evans. Hopefully, these hearings will provide the transparency
that we, as citizens, have the right to expect of our government.”

The firing of Amb. Evans was the result of his February 2005
statements at Armenian American community functions characterizing
the Armenian Genocide as a genocide. Following his statements,
Amb. Evans was forced to issue a statement clarifying that his
references to the Armenian Genocide were his personal views and did
not represent a change in US policy. He subsequently issued a
correction to this statement, replacing a reference to the genocide
with the word “tragedy.”

The American Foreign Service Association, which had planned to
honor Amb. Evans with the “Christian A. Herter Award,” recognizing
creative thinking and intellectual courage within the Foreign
Service, reportedly rescinded the award following pressure from the
State Department a few days before Turkish Prime Minister Recep
Tayyip Erdogan traveled to Washington, DC to meet with President
Bush.

Congressional Response:

On the eve of the announcement of Evans’ replacement, sixty Members
of Congress, led by Rep. Ed Markey (D-MA), sent a letter to
Secretary of State Condoleezza Rice asking for clarification of the
reasons behind Amb. Evans’ recall. Earlier, Congressional Armenian
Caucus Co-Chair Frank Pallone (D-NJ), Rep. Adam Schiff (D-CA) and
Rep. Grace Napolitano (D-CA) had each officially called on
Secretary Rice for a clarification of the State Department’s
position on this issue. They have yet to receive any response to
their inquiries.

Media Response:

The Los Angeles Times, in a strongly worded March 22nd editorial,
made direct reference to Amb. Evans’ impending dismissal, calling
on the Turkish Government and U.S. State Department to end their
policies of Armenian Genocide denial.

On March 24th, the Fresno Bee, published a similarly strong
editorial condemning Evans’ firing. The Washington Times, on May
26th, ran a story about the “geopolitical firestorm” created by
Evans’ remarks.

The publisher of the California Courier, Harut Sassounian, in his
weekly column, urged U.S. Senators to place a “hold” on the
nomination of Richard Hoagland, the diplomat slated to replace
Ambassador Evans. This action in response to the Administration’s
unresponsiveness, argued Sassounian, will force the White House to
fully explain the reasons behind its early termination of
Ambassador Evans’ career.

Armenian Youth Response:

At the Armenian Youth Federation Junior Educational Seminar, held
in Western Pennsylvania over the Memorial Day weekend, over 400
young Armenian Americans designed, produced, and signed original
petitions protesting the Administration’s decision to fire Amb.
Evans for telling the truth about the Armenian Genocide.

www.anca.org
www.anca.org

TBILISI: NA Commish To Discuss Restoration of Railway mvmt Via Abkh.

Prime News Agency, Georgia
May 30 2006

Parliamentary Commission To Discuss Restoration of Railway Movement
Via Abkhazia

Tbilisi. May 30 (Prime-News) – Irakli Ezugbaia, Director General of
Georgian Railways Ltd is to deliver a report to the Interim Committee
of the Parliament of Georgia for Restoration of Territorial Integrity
of Georgia on Tuesday.
The subject of discussion will be the ongoing talks on restoration of
the Georgian-Russian railway movement via the breakaway region of
Abkhazia, Prime-News was told by representatives of the Commission.

According to them, the discussion is attributed to the May 04th
agreement reached in Moscow, according to which the Georgian,
Abkhazian, Russian and Armenian parties signed a protocol on creation
of the Black Sea Railways Consortium, which must supervise
rehabilitation of the railway bed in Abkhazia.

Armeconombank Joins Global Trade Finance Program

ARMECONOMBANK JOINS GLOBAL TRADE FINANCE PROGRAM

YEREVAN, MAY 29, NOYAN TAPAN. Armeconombank has become the first
Armenian bank to join the Global Trade Finance Program implemented by
the International Finance Corporation (IFC). The agreement on trade
facilitation was signed on May 29. During a press conference following
the signing ceremony, IFC’s Director of the Central and Eastern Europe
Department Edward Nassim said that the IFC will open a credit line of
1 mln USD for a year for Armeconombank. According to him, the program
will encourage development of hundreds of small businesses. In the
words of Armeconmbank’s Chief Executive Officer Ashot Osipyan, the
program will promote foreign trade activities of Armenian businessmen,
allowing them to use such financial instruments abroad as accreditives
and guarantees. He said that the bank attaches great importance to
cooperation with the IFC. The IFC, the private sector arm of the World
Bank Group, provides technical assistance along with financial
resources. He noted that the IFC will allocate credit resources at
quite low interest rates of 6-9%. To recap, in 2004, a 2 mln-dollar
agreement was signed between the IFC and Armeconombank, under which
1.5 mln USD will was allocated for small and medium business
development, and 0.5 mln USD – for mortgage crediting.

Samvel Balasanyan Resigns

A1+

SAMVEL BALASANYAN RESIGNS

[06:41 pm] 29 May, 2006

Head of the OYP faction Samvel Balasanyan answering our questions
confirmed that he is not going to leave the party. After he failed to
be present at the NA briefings the rumors about his resignation
sounded more and more truthful. `I have lived for 52 years and lived
in a righteous way. I have two children who are about to start their
own lives. Wouldn’t they asked me – father, what have you done?’
Samvel Balasanyan said.

Asked if he will continue to head the faction or Arthur Baghdasaryan
will take up the responsibility Samvel Balasanyan answered with a
counter question, «Do you think it is possible to announce during
tomorrow’s plenary session that member of the OYP faction Arthur
Baghdasaryan is going to make speech? Naturally that won’t happen, so
I’m resigning immediately. I will announce about it officially». By
the way, there have been no discussions in the party yet but Samvel
Balasanyan is decisive.

NKR FM Positively Assesses Chernogoria’s Referendum of Independence

NKR FM POSITIVELY ESTIMATES CHERNOGORIA’S REFERENDUM OF INDEPENDENCE
AND INTERNATIONAL COMMUNITY’S READINESS TO RECOGNIZE ITS RESULTS

STEPANAKERT, MAY 25, NOYAN TAPAN – ARMENIANS TODAY. “The holding of
the referendum of independence in Chernogoria and the readiness of the
international community to recognize its results, on the whole, are a
positive fact. We are convinced that respect of the right of nation’s
self-determination expressed through a national referendum is basic in
the issue of settlement of such situations and a real implement for
establishment of political stability in the conflict region.” This was
said in the commentary of NKR Foreign Ministry in connection with the
Chernogoria independence referendum provided to Noyan Tapan from NKR
Foreign Ministry Information and Analytical Department. NKR foreign
political department considers it expedient to remind that the
violation of the right of Nagorno Karabakh people who voted for
independence on December 10 1991, in fact, became a basis for
Azerbaijan’s further military aggression against the Nagorno Karabakh
Republic, which caused many human victims and destructions. “The
further ingnoring of NKR people’s right of self-determination in the
process of settlement of Azerbaijani-Karabakh conflict and reaching
such conditions that guarantee its political independence, economic
and military security will postpone the prospect of finding a mutually
acceptable solution and establishment of a firm peace and mutual
understanding in the region,” the NKR FM commentary read.

BAKU: Opening Border Not Recognized by Armenia Impossible -Turk Amb

TREND Information, Azerbaijan
May 26 2006

To demand opening of Turkish-Armenian border not recognized by
Armenia impossible – Turkish Amb

Source: Trend
Author: R.Abdullayev

26.05.2006

Every country, every interested side should direct efforts to the
peaceable resolution of the Armenian-Azerbaijani conflict over
Nagorno-Karabakh. It first of all concerns Armenia, as well as other
interested sides, including the European Union, Turan Moraly, the
Turkish Ambassador to Azerbaijan, told journalists in Baku.

`The opening of the Turkish-Armenian border can be considered only
after the resolution of the disputable issues, the diplomat noted.
The problem and general dynamic of development of events linked with
opening of the border is absolutely different.’

`How is it possible to demand the opening of borders which was not
recognized even by Armenia?’ the Ambassador inquired. The theme can
not be put forward either by the European Union, or another
organization. `Let Armenia first officially recognize the border with
Turkey and introduce itself as a good neighbor, then we will discuss
the issue.’ the Turkish diplomat concluded.

AGBU: Armenian Women in AGBU Make a Difference

AGBU Press Office
55 East 59th Street
New York, NY 10022-1112
Phone: 212.319.6383, x141
Fax: 212.319.6507
Email: [email protected]
Website:

PRESS RELEASE

Thursday, May 25, 2006

ARMENIAN WOMEN IN AGBU MAKE A DIFFERENCE: AGBU’s Professional Women
Make Their Mark Worldwide

With numerous milestones, celebrations and international holidays
taking place in 2006, such as the AGBU Centennial, AGBU Armenian Youth
Association’s (AYA) 75th Anniversary, and International Women’s Day on
March 8, AGBU women’s groups are honoring the contributions and
talents of Armenian women around the world. AGBU’s Lebanon and Syria
Districts, along with the Plovdiv Chapter and Los Angeles Hye Geen
have sponsored lectures, conferences and receptions that focus on the
important role Armenian women play in their communities.

Founded in 1906, AGBU is dedicated to preserving and promoting the
Armenian identity and heritage through educational, cultural, and
humanitarian programs. Together, AGBU’s volunteers, donors and
supporters serve some 400,000 Armenians in 35 countries annually.

To find out more about AGBU events or to view the accompanying photos
online, please visit

www.agbu.org
www.agbu.org/pressoffice/article.asp?ID=337.