Author: Kafian Jirair

ROBUST ARMENIAN GDP GROWTH PERSISTS IN MAY
Venla Sipila

World Markets Research Centre
Global Insight
June 24, 2008

According to the latest data from the Armenian National Statistical
Service, the country’s GDP increased by 9.8% year-on-year (y/y) over
the January-May period, Black Sea Press reports. Thus, the figures
signal some further acceleration in economic growth in May, as annual
growth in January-April had earlier been reported at 9.3%. Indeed,
month-on-month (m/m) growth in May was reported at a very strong rate
of 34%. Construction remained a key driving force in the economy in
January-May, with activity in the sector growing by 14.9% y/y over
the five-month period. Meanwhile, the service sector (excluding
trade) expanded by 10.6% y/y, while retail trade increased by 4.3%
y/y. Conversely, industrial output continued to perform modestly,
contracting by 0.4% y/y in the first five months of the year, while
electricity generation rose by 2.3% y/y. Finally, agricultural
production increased by a modest rate of 1.9% y/y in January-May,
but surged by over 39% in May compared to April.

Significance:After six consecutive years of double-digit growth rates,
the pace of economic expansion so far this year has surprised with
its persistent strength. The latest data also signal some renewed
acceleration in retail trade growth in May, suggesting continued
strong growth of private demand. In light of the latest data, the
official growth target of 10% specified this year’s budget may be
at least nearly within reach. However, overheating concerns remain
relevant too, as the continued very rapid growth of domestic demand
does not make the current task of controlling leaping inflation rates
any easier, nor does it help in curbing the wide trade gap.

KARABAKH TODAY’S STATUS CAN’T BE LOWERED

PanARMENIAN.Net

24.06.2008 15:28 GMT+04:00

NKR people gained their right to independence in compliance with the
law and then in the war imposed on them. The problem can be resolved
by lowering today’s status of the republic, according to Armenia’s
President.

"During a meeting with Azerbaijani leader Ilham Aliyev, we decided to
continue talks in the framework of Basic Principles. Nagorno Karabakh
was never a part of Azerbaijan. It was transferred to the Azerbaijani
Soviet Republic by an illegal decision of the Communist Party with a
purpose to dissimilate the ideas of communism over to Islamic East,"
Serzh Sargsyan said at a meeting with representatives of the Armenian
community of Moscow.

PRESS RELEASE
Catholicosate of Cilicia
Communication and Information Department
Contact: V.Rev.Fr.Krikor Chiftjian, Communications Officer
Tel: (04) 410001, 410003
Fax: (04) 419724
E- mail: [email protected]
Web:

PO Box 70 317
Antelias-Lebanon

Armenian version: nian.htm

OFFICE ESTABLISHED IN ANTELIAS FOR THE PRESERVATION OF ARMENIAN MEDIA
ARCHIVES CONTINUES ITS WORK

The department for the preservation of Armenian media archives established
under the auspices of His Holiness Aram I as part of the Catholicosate of
Cilicia’s Armeonology projects continues its active work in Antelias.

Established six months ago, the department operated parallel to a committee
of five appointed by His Holiness: V.Rev. Krikor Chiftjian, Yervant
Pamboukian, Jirayr Tanielian, Shahan Kandaharian and Aharon Shekherdemian.
The committee held its regular meeting on June 20 in the presence of the
department’s benefactor, Mr. Gabriel Tchemberdjian. The department’s task to
digitalize the Armenian Press published particularly in the Middle East aims
at preserving the press and facilitating the work of those interesting in
researching it.

The department’s work will make Armenian press clippings available to the
public along with a search engine for finding articles by authors or other
details. Parallel to the department’s work, the Diocese of Aleppo is
involved in scanning the local Armenian press in order to facilitate the
huge task at hand. This project also is sponsored by Mr. Gabriel
Tchemberdjian.

##
View the photo here:
tos/Photos282.htm
*****
The Armenian Catholicosate of Cilicia is one of the two Catholicosates of
the Armenian Orthodox Church. For detailed information about the history and
the mission of the Cilician Catholicosate, you may refer to the web page of
the Catholicosate, The Cilician
Catholicosate, the administrative center of the church is located in
Antelias, Lebanon.

ARMENIAN FOREIGN MINISTER: AZERBAIIANI PARTY MAKES STEPS THAT ENDANGER THE PEACE PROCESS

ArmInfo
2008-06-23 13:14:00

Foreign Minister of Armenia Edward Nalbadnian is concerned about the
repeated violations of the cease-fire regime by the Azerbaijani party.

‘Attacks against the civilian population, killings of innocent people
and the recent steps of Azerbaijani side, in general, are directed
towards the deterioration of the situation. I believe that all these
attempts, which include the incident in the Martakert region of Nagorno
Karabagh in the first days of March; persistent refusal, since April,
to return four Armenian citizens; killing of an Armenian serviceman
in Tavush region and now the killing of two civilian residents of
Chinari village, must be strongly condemned. Such steps endanger the
peace process. One wonders whether the real goal of the Azerbaijani
side is to create additional obstacles to the continuation of the
peace talks. The demands of a number of Azerbaijani NGOs to stop the
negotiations can only be seen as an evidence of this. It is obvious
from where those NGOs are directed. These steps raise serious concern
and have to be denounced’, the minister said.

DANIEL FRIED: TURKEY NEEDS TO COME TO TERMS WITH A DARK CHAPTER IN ITS HISTORY

armradio.am
19.06.2008 10:39

House Foreign Affairs Committee Chairman Howard Berman (D-CA) led
a two hour hearing yesterday that included over a dozen members of
Congress questioning Assistant Secretary Dan Fried on the U.S. policy
of complicity in Armenian Genocide denial, Turkey’s blockade, and
Azerbaijan’s escalating threats of war, reported the Armenian National
Committee of America (ANCA).

"We want to thank Chairman Berman for this excellent opportunity for
members of the Foreign Affairs Committee to exercise oversight over a
deeply flawed set of U.S. policies toward Armenia and Armenian American
issues – most notably the Administration’s policy of complicity in
Turkey’s denial of the Armenian Genocide, its lack of any meaningful
steps to lift Turkey’s blockade of Armenia, and its effective silence
in the face of escalating threats of war by an increasingly well
armed Azerbaijan against the people of Nagorno Karabakh."

Berman opened the hearing stating, "I’d like to start with one of
the most puzzling and problematic matters: the Turkish blockade of
Armenia, in place since 1993. It’s a punishing policy that holds the
Armenian economy back and enormously increases the cost of much of
Armenia’s trade with other nations." He continued noting that "It’s
baffling why Ankara would want to pursue this land blockade, which
also harms the economy of eastern Turkey, and is therefore clearly
contrary to its own interests."

"Armenia can be a great success story, but its recent history has
been one of difficulties. The Armenian people have demonstrated
extraordinary resilience through their long history of hardship
and tragedy. Achieving independence from the Soviet Union in 1991,
the new republic was also rising from the ruins of a catastrophic
earthquake in 1988. That event mobilized aid from around the world,
including the first U.S. humanitarian mission in the Soviet Union,
and a wave of support from Armenian Diaspora groups.

This effort to rebuild was strained by the war in Nagorno-Karabakh,
which led to an energy embargo and closed borders with both Azerbaijan
and Turkey, exacerbating the post-independence political and economic
stresses.

Despite those hardships, however, the last decade has witnessed an
economic turnaround in Armenia, with double-digit GDP growth year upon
year coupled with low inflation. The Diaspora community around the
world continues to extend its hand to Armenia, in both humanitarian
and philanthropic giving and direct investment. Through their advocacy
and indications of a will to reform, Armenia in 2006 entered into a
Millennium Challenge Corporation compact worth $236 million. I also
can’t let this opportunity pass without thanking Armenia for a recent
doubling of its troop level in Kosovo to 70 and the continuation of
the Armenian troop presence in Iraq, which numbers 44," the Assistant
Secretary of State declared.

He noted, however, that Armenia faces serious challenges today:
geographic isolation, widespread corruption, and recent setbacks to
its democratic development. Supporting Armenia’s regional integration
is a particular priority for the United States.

"One major step toward regional integration would be a peaceful,
just, and lasting settlement of the Nagorno-Karabakh conflict. During
the past two years, the parties have moved closer than ever to a
framework agreement based on a set of Basic Principles developed
through intensive negotiations under the auspices of the Minsk Group
Co-Chairs," Daniel Fried said.

"Achieving normal relations between Armenia and Turkey is another
principle concern. As a key part of that effort, the United States
supports the opening of the Turkish-Armenian border. The status
quo is not helpful to anyone. Fortunately, some progress has been
achieved in recent years: there are regular charter flights between
Yerevan and Istanbul and other flights to Antalya; bus connections
via Georgia are numerous; and trade with Turkey through Georgia
is common. Both countries would greatly benefit from increased,
direct trade with the other, connecting their electrical grids,
and implementing other measures natural to neighbors. The U.S. also
supports more cross-border dialogue and cooperation between the people
of Armenia and Turkey through research initiatives, conferences, and
exchange programs. An example of this cross-border exchange, supported
by U.S. assistance funds, was the performance of the Armenian Komitas
Quartet in Istanbul last week, and the scheduled performance of the
Turkish Bosphorus Quartet in Yerevan today.

Reconciliation between Armenia and Turkey, however, will require
dealing with sensitive, painful issues. Turkey needs to come to terms
with a dark chapter in its history: the mass killings and forced exile
of up to 1.5 million Armenians at the end of the Ottoman Empire. That
will not be easy, just as it has not been easy for the United States
to come to terms with dark periods of our own past. For its part,
Armenia must be ready to acknowledge the existing border and disavow
any claim on the territory of modern Turkey, and respond constructively
to any efforts Turkey may make," Mr. Fried continued.

SUPREME COUNCIL ON INTRODUCTION OF NEW CULTURE OF INCOME ADMINISTRATION CREATED

NOYAN TAPAN
JUNE 19

A Supreme Council on the Introduction of New Culture of Income
Administration has been created in Armenia, the prime minister Tigran
Sargsian told reporters.

The council is headed by the Armenian prime minister, its creation is
envisaged by the complex program on the improvement of tax and customs
administration. According to T. Sargsian, the program has undergone
a international expert examination and received high opinions of
the experts.

The composition of the council has not been officially announced, but
its members were present when the prime minister made the statement:
among them were the minister of finance, the minister of economy,
the head of the State Tax Service, the advisor to the RA president
on economic issues, and others.

In the words of the prime minister, the purpose of the Council is
to coordinate the tax and customs administration reforms, control
this process and to be in constant touch with the public and various
organizations of the business sector.

The prime minister said that a monitoring group adjunct to the Supreme
Council and headed by Aram Gharibian has been set up. A phone number
and an email will be published, thanks to which any person can present
his/her comments and proposals regarding the tax and customs sector,
and these proposals will be discussed by the Council. "In this
way the public will be informed about the process of the program’s
implementation," T. Sargsian said.

The prime minister also announced that with the aim of ensuring
most favorable conditions for small and medium business (SMB), the
SMB development territorial bodies that operate in all the marzes
will assist businessmen in the introduction of tax and customs
administration programs as well. "The following principles will
be used. The administration in SMB sector will be reduced to the
minumum. The assistance, including in the form of accessible credits,
will be increased to the maximum. Finally, SMB contacts with tax bodies
must be implemented by specialized bodies, and the government will
take additional measures to reduce the prices of services provided
by these bodies," the prime minister noted. The fourth statement of
the prime minister was addressed to the public and the mass media. "I
frankly ask for the support of the public and the mass media so that
our reforms will become reality. It is obvious that they will become
reality in case of your trust," T. Sargsian stated.

T. Sargsian explained that publicity is the main guarantee of
the reforms’ implementation. No one, including big entrepreneurs,
will avoid public information about their violations. SMB-related
administration should be simplified (its principles will be published
after July 15). In particular, SMB checks will be conducted in, as
the prime minister put it, "strange" cases. Checks are also going to
be public. The SMB development centers will provide extra services to
businessmen, help them develop business plans and increase the number
of loans. Finally, it is intended that the prices of organizations
providing accounting services to SMB will be affordable: a state
program will be carried out for this purpose.

"We should create an atmosphere of mutual trust in tax issues. The
major task is to ensure equal attitude to everyone, and publicity
will be the main instrument here," T. Sargsian said. In his words,
a legislative amendment is envisaged, according to which all cases
of fining will be made public so that the public will make sure that
everybody is equal before the law. This principle is already in force
in the banking system.

HENCEFORTH COMPUTER TO MAKE LIST OF ECONOMIC ENTITIES SUBJECT TO CHECKING BY TAX BODIES

Noyan Tapan

Ju ne 17, 2008

YEREVAN, JUNE 17, NOYAN TAPAN. The State Tax Service has developed
and introduced a pilot computer program that selects risk factors,
based on which the tax bodies conduct checks. The deputy head of the
State Tax Service Robert Kocharian said at the June 17 meeting with
reporters that henceforth each visit to the economic entity selected
by the computer must be a target one, that is, based on a risk factor.

According to him, the parameters determining the risk factors are
entered into the computer only on the basis of actual data presented
by the tax payer. The program functions with the use of this data
and selects the targets considered as risky based on the parameters
in the computer.

R. Kocharian said that in case of proper functioning of the indicated
program, the human factor will be ruled out in the choice of economic
entities subject to checking.

It was announced that 1,293 checks were conducted in the period of
December 1, 2007 to April 30, 2008.

ASHOT ZAKARIAN, PETROS MAKEYAN AND SHOTA SAGHATELIAN FOUND GUILTY BY COURT

Noyan Tapan

Ju ne 13, 2008

YEREVAN, JUNE 13, NOYAN TAPAN. By the June 13 decision of the Shirak
regional court of general jurisdiction, Ashot Zakarian and Petros
Makeyan were sentenced to imrisonment of 2.5 and 3 years respectively,
while Shota Saghatelian received 2.5 years’ suspended sentence with
a 2-year probation period and was released right in the courtroom,
NT correspondent was informed by spokeswoman for the RA Cassation
Court Alina Yengoyan. Thus, the above mentioned persons were found
guilty under the RA Criminal Code’s Article 149, Part 2, Points 3
and 5: "Hindrance to the exercise of the right to vote, to the work
of an electoral commission or to the exerise of authority of persons
participating in an election".

BUSH WON’T ATTACK IRAN IN NEAR FUTURE, AHMADINEJAD SAYS

PanARMENIAN.Net
11.06.2008

Iranian President Mahmoud Ahmadinejad said Wednesday that
U.S. President George W. Bush’s era "has come to an end" and he has
failed in his goals to attack Iran and stop its nuclear program.

Ahmadinejad, addressing thousands of people in this central Iranian
city, also described the U.S.

president as "wicked."

"This wicked man desires to harm the Iranian nation.

(Bush) made plans, moved into Afghanistan and then Iraq, and announced
that Iran was the third target," he said.

"I tell him (Bush) … your era has come to an end.

With the grace of God, you won’t be able to harm even one centimeter
of the sacred land of Iran," he said.

Bush on Wednesday repeated his stance that no options were ruled
out in trying to get Iran to drop its nuclear ambitions. At a joint
news conference with German Chancellor Angela Merkel, he said "my
first choice is to solve this diplomatically, but all options are on
the table."

Bush, who has just seven months left in office before stepping down
as president, attended his final U.S.-European Union summit of his
presidency Tuesday.

He said he won European promises to tighten pressure on Tehran with
U.N. sanctions and possibly other new penalties.

Ahmadinejad said pressures and sanctions won’t succeed in forcing
Iran to halt its uranium enrichment program.

"In the past two-three years, they employed all their might, resorted
to propaganda … and sanctions. If the enemy thinks they can break
the Iranian nation with pressure, they are wrong … With God’s help,
today we have achieved victory and the enemies cannot do a damned
thing," he said, the AP reports.

The U.S. and some of its allies accuse Iran of seeking a nuclear
bomb. Iran has rejected the charges saying its nuclear program is
aimed at generating electricity not a weapon.

The U.N. Security Council has imposed three sets of limited sanctions
against Iran for refusing to halt uranium enrichment, a technology
that can be used to produce nuclear fuel or materials for bomb.

Iran has not only continued enriching uranium but has expanded its
uranium enrichment program, installing more centrifuges used to
enrich uranium.

NEGOTIATING A BLACK HOLEARMENIA AND AZERBAIJAN ARE TRYING TO END THE STALEMATE IN NAGORNO-KARABAKH, AND THE EU MUST HELP THEM
Alexandros Petersen

guardian.co.uk
Saturday June 7 2008

The presidents of Armenia and Azerbaijan are meeting in St Petersburg
to discuss the now two-decade-old conflict in the South Caucasus
over the territory of Nagorno-Karabakh. After a bitter war during the
breakup of the Soviet Union, Armenian forces occupied the mountainous
region within Azerbaijan with the intention of protecting ethnic
Armenians in the area.

The simmering stalemate pits Armenian Christians against Azerbaijani
Muslims, with several lives lost on either side every year. But why
should an obscure ethno-religious conflict concern us, and why is
today’s meeting more significant than the numerous failed negotiation
attempts of the past 20 years?

Nagorno-Karabakh is a so-called "frozen conflict", meaning that
large-scale fighting has not occurred for years, but no progress has
been made towards any resolution of the always tense and often violent
situation. Armenian forces and their local militia allies control
seven "buffer" territories around the disputed region. Karabakh itself
claims to be an independent state, but could never survive without
Armenian protection and economic aid.

All eight areas are internationally recognised parts of Azerbaijan.

This highly militarised and uncertain status means that the conflict
zone serves as a haven for a number of transnational threats that
directly affect citizens of the European Union. Along with other
frozen conflicts in the region, Karabakh presents a governance black
hole that attracts arms, drug and human trafficking, money laundering
and organised crime. Chances are that the heroin on London’s streets,
illegal weapons in the Paris banlieue, and the underage prostitutes
in Berlin either came through a conflict zone such as Karabakh,
or were trafficked by a network that uses the area to facilitate
its operations.

Should a transnational terrorist group such as al-Qaida ever get its
hands on former Soviet nuclear material, it is almost a given that a
territory such as Karabakh will be involved. The defence doctrines
of the United Kingdom and almost every other European state cite
ungoverned spaces as a primary security threat. While Nato forces
battle in Afghanistan to stave off transnational threats, the EU
should work to mitigate similar threats closer to home.

The high-level meeting on Saturday in St Petersburg presents an
opportunity to do just that. The talks are noteworthy because it
will be the first time that Armenia’s new president, Serzh Sargsyan,
will meet his Azerbaijani counterpart to discuss the conflict. After
his election saw violence and martial law on the streets of Yerevan,
Armenia’s capital, Sargsyan seems to be more open than his predecessor
to achieving peace in Karabakh. As a native of the region, he holds
authority to achieve change on what is a highly charged issue in the
Armenian public debate.

This change of leadership comes at the right time for Azerbaijan. With
a presidential election looming in October, the resolution of
Karabakh has shot to the top of the agenda. At the same time, the
oil-rich nation’s defence budget has soared to eclipse Armenia’s
entire national budget. The plight of almost 1 million displaced
Azerbaijanis from the conflict zone keeps constant pressure on the
government to bring an end to the conflict sooner rather than later.

France, a co-chair of the stalled negotiating framework for Karabakh,
should formulate an EU-guided road map to achieve peace, complemented
by European development and governance assistance for the conflict zone
as incentive. As the upcoming holder of the EU presidency, Paris is
particularly well-placed to put the conflict on the EU’s agenda. But,
such an effort will require concerted support from the UK, Germany,
Italy and other EU heavyweights.

Europe cannot afford a Balkan-style full-scale war on its periphery. An
uncertain and dangerous status quo is also not an option. It behoves
Brussels and the influential capitals of the EU to learn their lessons
from Bosnia and Kosovo: ignoring conflicts in one’s neighbourhood –
particularly in an age of increased transnational threats – does not
make them go away.