Sadoyan Appeals To OSCE And CoE Missions To Armenia And NativeBusine

SADOYAN APPEALS TO OSCE AND COE MISSIONS TO ARMENIA AND NATIVE BUSINESSMEN FOR FINANCING

ARMINFO News Agency
October 11, 2005

YEREVAN, OCTOBER 11. ARMINFO. Armenian parliamentarian representing
the opposition bloc “Justice,” Arshak Sadoyan, has appealed to the
international organizations in Armenia (OSCE, CE) and local businessmen
for financial assistance.

Speaking at today’s press-conference at the office of his party,
“Bloc of National Democrats,” Arshak Sadoyan has levered harsh
criticism at oppositionists for passivity and indifference to the
national referendum of November 27. He thinks it necessary that all
the 17-20 parties which are against the Constitutional reforms be
represented at all the 1,865 polling stations. It will be an “army of
35-40,000 people.” As 90% of the population will either neglect the
voting or vote “against” the draft, the authority will have to stuff
the ballot-boxes. Only the opposition can control over the voting.

However, it requires funds. For this purpose, the party intends to
open a special account with one of the native banks.

Asked why the well-off oppositionists do not fund the campaign,
Sadoyan said : “to avoid ambitions.” ” We cannot agree who will
head the counter-agitation campaign, each opposition party acts
independently,” Sadoyan complained. He also criticized Secretary of
Venice Commission Gianni Buquicchio who “once stated that being on
leave, he could not read the draft, then he stated that he has read
the draft and agreed with it. Later he stressed some progress of the
draft Constitution. Then he said that the draft fully meets European
standards and the omissions can be filled through evolution.” Sadoyan
accused the parliamentary majority for not inviting him to the meeting
of G. Buquicchio with Armenian parliamentarians.

Nicosia: Atamyan Wins Armenian Rep Election

ATAMYAN WINS ARMENIAN REP ELECTION

Financial Mirror, Cyprus

Oct 10 2005

Vahakn Atamyan has won the by-elections for the Armenian Representative
at the Cypriot House of Representatives.

Atamyan received a total of 769 votes or 52.03%. In Nicosia, he
received 224 votes at the first polling station and 272 at the second,
in Limassol 113 votes and in Larnaca 160 votes.

Candidate Antranig Ashdjian received a total of 649 votes or 43.91%.

In Nicosia, he received 198 votes at the first polling station and
222 at the second, in Limassol 89 votes and in Larnaca 140 votes.

Furthermore, candidate Parsegh Zartarian received a total of 60 votes
or 4.06%. In Nicosia, he received 26 votes at the first polling station
and 15 at the second, in Limassol 13 votes and in Larnaca 6 votes.

Atamyan will succeed Bedros Kalaydjian, who passed away on the 1st
of September at the age of 71.

www.financialmirror.com

Armenians Want Elections to Choose Governors

Angus Reid Global Scan, Canada
Oct 8 2005
X-Sender: Asbed Bedrossian <[email protected]>
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Armenians Want Elections to Choose Governors

(Angus Reid Global Scan) – Many adults in Armenia believe their
regional heads of government should be selected through the ballot
box, according to a poll by the Armenian Center for National and
International Studies. 63.5 per cent of respondents say they would
like to elect their regional governor.

Armenia adopted its Constitution in July 1995. The document was
ratified in a referendum – deemed to have been fraudulent – and confers
virtually unrestrained powers on the president.

President Robert Kocharyan was re-elected to a new four-year term in
March 2003 in an election marred by fraud allegations. Armenia is
divided into 11 provinces. The provincial governors are appointed by
the head of state.

Under the current system, regional elections are limited to prefects
and aldermen. Each provincial governor retains the right to dismiss
elected officials. 36.7 per cent of respondents believe an elected
governor would be more accountable to the people, and 13 per cent
think he would be more interested in solving regional problems.

A nationwide referendum on proposed constitutional changes has been
scheduled for Nov. 27. The reform package would seek a balance of
power between the executive and legislative branches. At least
one-third of Armenia’s 2.4 million eligible voters must support the
amendments.

Polling Data

Would you like to elect your regional governor?

Yes
63.5%

No
10.4%

Difficult to answer
26.1%

If you elect the regional governor, then…

In the first place he would be
accountable to the people
36.7%

He would have more independence in
solving the problems of the region
12.5%

He would be more interested in solving
the problems of the region
13.0%

Nothing would change
15.2%

Difficult to answer
22.6%

Source: Armenian Center for National and International Studies
(ACNIS)
Methodology: Interviews with 1,000 Armenian adults, conducted in
September 2005. No margin of error was provided.

Evans: USA intends to promote fair & transparent elections in ROA

ARMINFO News Agency
October 7, 2005

US AMBASSADOR TO ARMENIA: USA INTENDS TO PROMOTE FAIR AND TRANSPARENT
ELECTIONS IN ARMENIA

YEREVAN, OCTOBER 7. ARMINFO. US Congress intends to allocate big
funds to improve the election system of Armenia hereby really
contributing to democratic elections in the country. US Ambassador to
Armenia John Evans said at the “Rose Roth” joint seminar of NATO PA
and the Armenian Parliament on the topic “Security in the South
Caucasus”. The four-day seminar opened on October 6 in Yerevan.

Regarding the Constitutional reforms, John Evans said that a great
work was done to work out the draft, which will balance the power
branches. Foreign ambassadors and representatives of international
organizations have already given their assessment of the draft.
Unfortunately, it has been harshly criticized as an interference into
the internal affairs of Armenia. We have just taken a favorable view
of the draft Constitutional amendments and noted that the choice
rests upon the Armenian people, the Ambassador said. He thinks the
referendum bar high enough – 1/3 of the total number of voters.
Ambassador Evans noted that since the independence of Armenia, the
USA has allocated $1.6 bln assistance to the country. The USA works
in three directions in Armenia: to ensure security and contribute to
settling regional conflicts; to promote economic development; to
develop democratic institutions.

Karel De Gucht Following EU’s Decision On Turkey In Luxembourg

KAREL DE GUCHT FOLLOWING EU’S DECISION ON TURKEY IN LUXEMBOURG

De Standaard , The Netherlands (Translated from Dutch)
Oct 6 2005

Barroso-led commission’s leadership role insufficient

We would have looked ridiculous had we not started negotiations
with Turkey. Turkey must now make a major effort, as must the EU,
for that matter. And the [Jose Manuel] Barroso-led commission must
show more dynamism. It is not playing its leadership role.

Belgian Foreign Minister Karel De Gucht (VLD [Flemish Liberal
Democrats]) is known to be a fervent advocate of Turkey’s EU
adhesion. He thoroughly dislikes the concept of Europe as an
exclusively-Christian club. In his opinion, invoking this argument
as a basis for discussions means putting back the clock. So he is not
upset by critics of the decision reached by the EU foreign ministers
last Monday [3 October] evening, nor by former Belgian EU Commissioner
[Karel] Van Miert’s assertion that the “EU is being torn down from
within”.

[De Gucht] The EU being torn down? Imagine we said “No”. What
reactions would that have elicited? Would it have increased the EU’s
credibility in the eyes of the public? No. Newspapers would have
facetiously remarked that the EU had come another cropper, the third
this year, after the Constitution and the multi-year budget. Would it
have increased the EU’s credibility in the eyes of other major world
players? The EU held out the prospect of membership to Turkey 40 years
ago. In Helsinki, and also last year, we confirmed that Turkey would
be allowed to join the EU and that negotiations would start when all
preliminary conditions were met. The Turkish government has done all
it was supposed to do. So there was no alternative. This issue was
not only closely monitored by the United States but we would also
have lost all credibility in the eyes of China and Russia.

[Reporter] Yet initial promises to Turkey were made in an entirely
different context than the current one. We were still in the middle
of the Cold War and Ankara was an important player. Now this is no
longer the case.

[De Gucht] I agree but Turkey has made much progress. Just look at what
the Ankara government has managed to do in recent years in anticipation
of the membership talks. It was simply our moral duty to give them
this opportunity. And one should not underestimate what they still
need to do before being allowed to join. I have the impression we do
not fully realize what the Kurdish question means to them. The PKK’s
[Kurdish Workers’ Party] hands are stained with blood, with a lot of
blood. The Armenian genocide has been completely wiped from their
collective memory. It is not so simple for the Turkish government
to recognize this genocide just because we are now demanding it does
so. And the Cold War context may have disappeared but this does not
mean that Turkey’s strategic location has changed.

Muslim terrorism has now taken the place of the Cold War. Turkey is
located near the world’s largest energy reserves. I think we really
are underestimating all these factors.

[Reporter] However, Ankara’s obstinate refusal to recognize Cyprus
has not made things any easier for the EU.

[De Gucht] I have no problem at all with the fact that this has not
yet been done. It is impossible for Turkey to recognize Cyprus at this
moment in time because there is no international peace agreement which
has been accepted by both parties. I would prefer recognition to take
place within the context of a new UN plan, some sort of Anan-bis,
because some aspects of the first plan, which did not survive the
referendum, need to be amended.

For instance, I think the Turkish army should immediately leave
northern Cyprus. The Anan plan did not provide for this demand.

Moreover, we should not attribute too much weight to the recognition
issue. There is still time and it will have to take place before
accession anyway. So many former arch-enemies are currently already
sitting at the EU table. One of the EU’s main reasons for existence
is to eradicate rivalries.

[Reporter] Yet the question remains as to whether the EU will be able
to absorb all these enlargements. It may still need some more time to
digest the arrival of the 10 new member states. The institutions have
not even been reformed and it has already embarked on negotiations
with Turkey. Do you understand those who are genuinely concerned
about the EU’s political integration problems?

[De Gucht] Yes, I understand them. It is a pity that the Constitution
has been put on the back burner. But for this we cannot blame Turkey –

[Reporter] – which, for instance, declined to bring some of its
foreign policies in line with those of the EU and which refused to
accept Cyprus’s membership, not only of the EU but also of other
international organizations.

[De Gucht] Countries other than Turkey also find it hard to accept
common foreign policies. Is France so much more flexible than Turkey in
this regard? And the United Kingdom? Moreover, replacing the unanimity
rule by qualified majority voting is becoming less important in the
context of the enlarged EU.

This became clear in Luxembourg. Imagine Austria had stuck to its
position in a six-member union. Paradoxically enough, this would
have been easier than in the current context. It did not stand any
chance in a context of one against 24. This does not mean, however,
that I think no more reforms are needed to reinvigorate the EU.

[Reporter] Which reforms?

[De Gucht] I think we need to return to the philosophy of [EU founding
father] Jean Monnet – take specific steps. I think, for instance, we
need to focus on the single currency and further social and economic
integration in the euro zone. This, in turn, will make the EU more
attractive. We need to step up economic coordination.

Much work still needs to be done in the field of taxation. The issue
of taxes on savings has shown the importance of this matter. In Europe,
we also need to agree on a single tax base for companies.

Or we could strive for a shift from direct taxes to indirect taxes,
such as value-added taxes. This would reduce charges on labour and
breathe new life into the economy but it is something that needs
to be done collectively. Countries which are still hesitating about
proceeding with the further development of Europe will then have to
make a choice.

[Reporter] Who will have the courage to take such an initiative? The
EU currently finds itself in a deep impasse.

[De Gucht] The referendums in France and the Netherlands have
indeed dealt an uppercut to the EU as a whole. That is why Europe
at present needs a determined leadership. The current leadership is
not determined enough. The commission should play its role but the
Barroso-led commission is not doing this to a sufficient extent.

According to the treaty, however, one of its duties is to provide

Kocharian, Italian Minister Discuss Business Development

ARMENIAN PRESIDENT, ITALIAN MINISTER DISCUSS BUSINESS DEVELOPMENT

Mediamax News Agency, Armenia
Oct 6 2005

Yerevan, 6 October: Armenian President Robert Kocharyan thinks that
Italy’s experience of cooperation between small and medium-sized
businesses and foreign trade may be very useful for Armenia.

Armenian President Robert Kocharyan said this in Yerevan today at
a meeting with Italian Foreign Trade Minister Adolfo Urso. Robert
Kocharyan praised the pace of the development of Armenian-Italian
relations, noting that the political dialogue has become more active in
the recent period and the commodity turnover between the two countries
has increased. The president said that almost all Italian investment
in Armenia has been successful.

Adolfo Urso pointed out that commercial chambers are sufficiently
developed in Italy. He discussed the possibilities of using this
experience in Armenia with his Armenian counterpart.

The parties also discussed assistance to the development of small
and medium-sized business. The Armenian president noted that small
and medium-sized entrepreneurship and family businesses are priority
directions of country’s economy.

Armenia Supports India’s UNSC Bid

ARMENIA SUPPORTS INDIA’S UNSC BID

Outlook , India
Oct 6 2005

Sunil Gatade, Yeravan (Armenia), Oct 6 (Pti)

Armenia today came out in strong support of India’s bid for permanent
membership in the UN Security Council and shared New Delhi’s views
on Kashmir issue during talks Vice President Bhairon Singh Shekhawat
had with its leaders including President Robert Kocharian.

The talks also resulted in India assuring Armenia in providing
fullest cooperation in Information Technology and agriculture
sectors. Meanwhile, the CIS country offered assistance to New Delhi
in science and technology especially in laser technology, in which
it has a competitive edge.

Shekhawat, who is the first leader from a major democracy to visit
this South Causasian country formed after the breakup of Soviet Union
in 1991, saw the Armenian leadership reiterating their positions on
various issues, including UNSC expansion and Kashmir, during warm
and friendly talks.

Armenia is the first country in the world whose Foreign Minister
had made the demand of inclusion of India in the UN Security Council
three years back.

The first Vice Presidential visit to this CIS country witnessed
the signing of an Mou on Parliamentary Cooperation between the two
countries and Shekhawat was given a standing ovation at the National
Assembly whose special session he addressed.

Addressing the National Assembly of Armenia, the Vice President
dwelt at length on the issue of terrorism, saying democracies are
“haunted and threatened most by terrorism”. He said the fight against
the scourge has to be comprehensive and sustained. “We need to isolate
the elements who instigate, support or assist terrorism, in any form,
as much as those who perpetrate it.” His concluding the address with
a sentence in Armenian touched a chord with the Parliamentarians.

The two sides will also be signing a Protocol of Exchange of
Instruments of ratification of the Treaty on friendship and
cooperation. The treaty was signed during 1995 visit to New Delhi of
the then Armenian President Levon Ter-Petrossyan.

Shekhawat will be presenting shipping documents of 60 tractors to
Armenian authorities tomorrow which is a gift from India. As part of
a five million dollar grant, New Delhi would be gifting 300 tractors
to Yerevan.

Oskanian: No Alternative To OSCE MG Today

OSKANIAN: NO ALTERNATIVE TO OSCE MG TODAY

Pan Armenian
06.10.2005 10:57

/PanARMENIAN.Net/ “The positions of the Armenian and Azeri parties
over settlement of the Nagorno Karabakh conflict have become closer
on a number of principal aspects. We may hope that upon the increasing
of elements of the kind these positions will be documented,” Armenian
FM Vartan Oskanian stated in a conversation with journalists. In his
words, the community of approaches is particularly observed over “the
status, security and territories.” “However, there is no ready package
over settlement at present and it is hard to say whether the current
situation will lead to a solution,” V. Oskanian remarked. Touching upon
transferring discussions over NK settlement from the OSCE MG format
to another one, specifically that of CE as proposed by Azerbaijan,
the Armenian FM noted the NK issue may be discussed anywhere “and it
is even useful.” “However, the OSCE MG is the sole structure providing
for comprehensive discussions. It is obvious the NK conflict should be
settled within the OSCE MG. The international community recognizes this
fact as well,” V. Oskanian stated. “If a decision is passed to consider
the issue in another format, it will be done so. However, there is
no alternative to the OSCE MG today, the FM remarked. Touching upon
NK participation in the talks Oskanian said it was inevitable. “NK
will become full participant of the talks some day and the Azeri
party realizes it as well,” the Armenian FM said. Referring to OSCE
PA Representative for NK Goran Lennmarker, Oskanian hoped solution to
the conflict to be found after parliamentary election in Azerbaijan,
reported IA Regnum.

US indicts investors on Azeri bribe charges

US indicts investors on Azeri bribe charges

Financial Times
October 6, 2005

By Mark Turner in New York

A Czech financier and an employee of US insurance company AIG have
been indicted by US authorities for allegedly taking part in an
illegal scheme to bribe top Azerbaijan officials to buy its state oil
company on the cheap.

The decision, revealed on Thursday, marks a significant step in a
long-running saga believed to reach the very highest levels of the
Azeri government and involve a number of high-profile US investors.

Michael Garcia, the US attorney for the southern district of New York,
said Victor Kozeny, the alleged mastermind of the scheme also known as
the `Pirate of Prague’, was arrested on Wednesday in the Bahamas,
pending an extradition request by the US.

David Pinkerton, who was managing director of AIG Global Investment,
and Frederic Bourke, a US handbag tycoon who invested money with Mr
Kozeny, surrendered to the Federal Bureau of Investigation in New York
yesterday.

The US authorities claim both knew of the plan to bribe senior
Azerbaijan government figures, and invested on the basis of that
knowledge. All three defendants were charged with conspiracy to
violate the Foreign Corrupt Practices Act and related crimes.

Mr Garcia also announced on Thursday that three other individuals
Thomas Farrell, an employee of Mr Kozeny’s investment company Oily
Rock, Hans Bodmer, a Swiss lawyer, and Clayton Lewis, a principal of
Omega Advisors, a prominent New York hedge fund had previously pleaded
guilty in connection with their participation in the bribery scheme.

Mr Kozeny’s alleged plan, hatched in the late 1990s, was to assemble a
group of investors to purchase privatisation vouchers, issued free to
Azeri citizens, ahead of the planned sale of the state oil company
Socar. Omega purchased $126m (105m, £75m) of vouchers, while AIG
purchased $15m, the indictment says.

Socar was to be the crown jewel of Azerbaijan’s privatisation
programme, and the vouchers were bought for much less than they were
thought to be worth.

In the end the oil company was not sold. But any successful attempt by
foreigners to take control would have clearly needed top-level
approval.

The indictment charges that Mr Kozeny, acting on his own behalf and as
an agent of Mr Bourke and Mr Pinkerton, `made a series of corrupt
payments and promises to pay’ a `senior Azeri official’, a `Socar
official’ and two top officials from the state property committee to
push the deal through.

Haydar Aliyev, the Azerbaijan president at the time, and his son
Ilham, the current president, were not named in the indictment, but it
says that Socar `could only be privatised with a special decree from
the president of Azerbaijan’.

It alleged Mr Kozeny arranged for jewellery worth more than $600,000
dollars to be sent from London’s Asprey and Garrard to Baku on the
occasion of the `senior Azeri official’s birthday on May 10,
1998′. That was the date of Haydar Aliyev’s 75th birthday.

Gifts included a `triangular photo frame with clock 18 carat yellow
gold, mother of pearl, tourmaline and enamel,’ worth more than
$100,000.

Other alleged bribes included direct cash payments of millions of
dollars, and the transfer of two-thirds of Oily Rocks’ vouchers and
options to Azeri officials. Mr Garcia described the scheme as
`nothing less than the brazen attempt to steal the wealth of a
sovereign nation’. The irony, according to Mark Mershon, assistant
director in charge of the New York field office of the FBI, was that
`it appears that corrupt Azeri officials scammed the scammers’.

http://news.ft.com/cms/s/fca1b31c-369d-11da-bedc-00000e2511c8.html

Bridge 2006 International Business Forum To Be Held In Armenia

BRIDGE 2006 INTERNATIONAL BUSINESS FORUM TO BE HELD IN ARMENIA

Pan Armenian News
03.10.2005 03:46

/PanARMENIAN.Net/ The third international business forum entitled
“Bridge 2006” will be held in Tsaghkadzor, Armenia, February 17-20,
2006.

Representatives of the business circles of Armenia, Belgium, Georgia,
Iran, Canada, Russia and other states, members of ministries and
chambers of commerce will take part in the conference. The conference
will be held with the assistance of the Armenian Ministry of Trade
and Economic Development, the Foreign Ministry, RA Central Bank and
the Union of Manufacturers and Businessmen (Employers) of Armenia.