Author: Karagyozian Lena

REVENUES OF ARMENIAN STATE BUDGET GROW BY 28.2% IN JANUARY-APRIL 2007 ON SAME PERIOD OF LAST YEAR

Noyan Tapan
May 31 2007

YEREVAN, MAY 31, NOYAN TAPAN. In January-April 2007, the RA state
budgetary revenues amounted to 150.2 bln drams (over 540 mln USD),
while expenditures – to 140.8 bln drams, which ensured fulfilment of
the government-approved programs for the first half of 2007 by 66.2%
and 53.5% respectively and fulfilment of the annual programs by 29.6%
and 25.9% respectively.

According to the RA Ministry of Finance and Economy, the revenues of
the state budgey grew by 28.2% or 33.1 bln drams on the same period of
2006. Taxes and duties increased by 26.5 bln drams, non-tax revenues –
by 5.6 bln drams, revenues from capital operations – by 1.2 bln drams,
whereas official transfers declined by 222 mln drams. In accordance
with the Law on the 2007 State Budget of the Republic of Armenia,
extrabudgetary resources of state institutions were also included
in the state budget, with their revenues making over 3.2 bln drams
in the first four months of 2007 against 3.1 bln drams in the same
period of last year.

84.7% of the state budgetary revenues in January-April 2007 formed
at the expense of tax revenues. State duties accounted for 3.8%,
non-tax revenues – for 8.3%, revenues from capital operations – for
3.1%, and official transfers accounted for 0.1% of budgetary revenues.

80 PERCENT EXPECT NEGATIVE ANSWER

A1+
[12:37 pm] 01 June, 2007

On June 1, the Constitutional Court conducts hearing on the appeals
of four oppositional parties To remind, the Impeachment Bloc, the
Republic, The New Times and the Orinats Yerkir parties submitted
appeals to the CC to challenge the majoritarian election results.

A1+ suggested its readers answering the question, "Will the
Constitutional Court satisfy the appeal of the oppositional forces?"

80 % of the respondents gave a negative answer.

Only 4 per cent think the appeal will be satisfied.

13 % think that the CC will satisfy the opposition’s appeal partly.

Over 337 people participated in the polling.

U.S. OFFICIAL CITES PROGRESS IN ARMENIA-AZERBAIJAN TALKS ON DISPUTED TERRITORY
Desmond Butler

AP Worldstream
Published: Jun 01, 2007

Armenia and Azerbaijan have made substantial progress toward a
settlement on control of a disputed territory, the chief U.S. mediator
in the talks said.

After more than a decade of efforts by international mediators to
broker a deal on the territory of Nagorno-Karabakh, the Azerbaijani
and Armenian presidents are close to solving most remaining obstacles
to an agreement on basic principles, according to Matthew Bryza,
U.S. deputy assistant secretary of state.

President Ilham Aliev of Azerbaijan and Armenian President Robert
Kocharian are expected to focus on the sticking points during talks
in St. Petersburg, Russia, on June 9.

"If the St. Petersburg meeting is successful, then the number of
differences remaining on basic principles could be reduced to close
to zero," Bryza told The Associated Press.

Diplomats from the so-called Minsk group of mediators from Russia,
France and the United States have in the past expressed optimism
toward breakthroughs on the difficult dispute only to see negotiations
turn backward.

Nagorno-Karabakh is inside Azerbaijan but has been controlled by ethnic
Armenian forces since a 1994 cease-fire ended a six-year conflict
that killed some 30,000 people and drove more than 1 million from
their homes.

Despite signs of progress in the talks, tensions in the region
remain high.

Azerbaijan has been building up its military as its economy has boomed
from oil revenues at one of the fastest clips of any in the world. It
controls portions of the Caspian Sea, on its eastern fringe, which
has some of the largest oil and gas fields in the former Soviet Union.

Bryza would not identify the unresolved issues, but he outlined some
of the basic principles already reached for a potential resolution.

The two sides have agreed on the return of districts surrounding
Nagorno-Karabakh that are also under ethnic Armenian control.

Bryza would not say whether there is an agreement on the return of
refugees to the region or on any compensation for those who fled
the territory.

A public statement in early May by Aliev that the two countries
had agreed that refugees could return provoked an angry denial from
Armenian officials.

Negotiators have agreed that a settlement would stipulate that a vote
would be held in the future on the territory’s status, but they have
not yet agreed on the timing of the poll or the details of who would
be entitled to vote.

An international peacekeeping force would be present during the interim
period before the vote, and a land corridor would be established
from the territory to Armenia, open to ethnic Armenians living in
Nagorno-Karabakh.

Bryza praised the two sides for making progress on an issue that
stirs passions within both countries.

"The leadership of Armenia and Azerbaijan should be lauded for their
courage in trying to bring stability and prosperity to their peoples,"
he said.

ON 16TH ANNIVERSARY OF NKR

Azat Artsakh Daily, Republic of Nagorno Karabakh [NKR]
01 June 07

The press service of the NKR government reported that the executive
adopted a decision on the celebration of the 16th anniversary of
proclamation of Nagorno-Karabakh Republic. The government set up an
ad hoc governmental commission for organization and coordination
of celebration led by Deputy Prime Minister Ararat Danielian. The
administrations of Stepanakert and the regions were instructed to
set up local commissions within 10 days, and extend to the government
the program of events in the capital and the regions by June 15. The
Public Channel of Artsakh, the Azat Artsakh and the other media are
proposed to cover the preparation and the events devoted to the 16th
anniversary of Nagorno-Karabakh Republic.

G8 FOREIGN MINISTERS: IT IS IMPOSSIBLE TO ACHIEVE PEACE AND STABILITY IN SOUTH CAUCASUS WITHOUT SETTLING NAGORNO KARABAKH PROBLEM

Azeri Press Agency, Azerbaijan
May 31 2007

"It is impossible to achieve peace and stability in South Caucasus
without settling Nagorno Karabakh problem".

The Foreign Ministers of G8 stated after informal meeting in Potsdam.

Though Nagorno Karabakh problem is not put on the agenda of the
meeting Foreign Ministers of G8 considered necessary to touch this
problem. The authors of the statement said Karabakh problem should be
settled to achieve peace and stability in the Caucasus region. "We
support efforts made by OSCE Minsk Group co chairs to achieve the
solution and invite Azerbaijan and Armenian Presidents to strengthen
their efforts to come to an agreement on the basic principles on the
regulation of problem. Greeting meeting of Ilham Aliyev and Robert
Kocharian in CIS’s informal meeting in Saint Petersburg on June 9 we
call them to agree on the basic principles on problem".

ARMENIA/USA: AID AGENCY WILL NOT SUPPORT RAILROAD BYPASS

Railway Market Magazine, Poland
(Source: aaainc.org, 29 May 2007)
May 30 2007

The Armenian Assembly of America commends Congressman Brad Sherman
(D-CA) for securing an assurance on May 25 from the Oversees Private
Investment Corporation (OPIC) that the agency would not support
a proposed railroad linking Turkey, Georgia and Azerbaijan while
bypassing Armenia. OPIC helps U.S. businesses invest overseas.

"It is important that OPIC not repeat the mistake of the
Baku-Tiblisi-Cheyan pipeline," Sherman said in a press statement.

"Taxpayer funds should not go for projects that deliberately seek to
isolate a friend of the United States, and I appreciate the commitment
not to get involved in the railroad project."

The proposed railway, estimated to cost upwards of $600 million,
excludes Armenia from economic and regional transportation corridors.

Armenian government officials have repeatedly said that a new costly
railway is unnecessary given that a railroad linking Armenia, Georgia
and Turkey already exists.

Last June, the House Financial Services Committee unanimously approved
a provision sponsored by Congressman Joseph Crowley (D-NY), along
with Sherman and Rep. Ed Royce (R-CA), prohibiting the Export-Import
Bank from supporting the rail link project. That provision was adopted
and is now a law.

"The Assembly thanks Congressman Sherman for his leadership on this
issue," said Executive Director Bryan Ardouny. "The proposed project,
sponsored by the Turkish and Azeri governments, runs counter to
U.S. policy goals which seek to foster regional cooperation and
economic integration, and includes open borders and transport and
communication corridors. OPIC’s assurance helps ensure that the
U.S. will not be party to the flawed policies of Armenia’s neighbors."

The Armenian Assembly is the largest Washington-based nationwide
organization promoting public understanding and awareness of Armenian
issues. It is a 501(c)(3) tax-exempt membership organization.

IT IS NECESSARY TO ENLARGE MILITARY COOPERATION BETWEEN ARMENIA AND ITALY

PanARMENIAN.Net
29.05.2007 17:29 GMT+04:00

/PanARMENIAN.Net/ RA Defense Minister Mikael Haroutounyan hosted
Italy’s Ambassador to Armenia Massimo Lavezzo Cassinelli. The
Defense Minister indicated the progress in political and economic
cooperation between the two countries, Defense Ministry Spokesman
colonel Seyran Shahsouvaryan informed the PanARMENIAN.Net. "On
this positive background it is necessary to develop cooperation in
military, army medical and military-educational spheres," Mikael
Haroutounyan underscored. The sides came to the conclusion that it is
necessary to widen the military cooperation. They touched the issue
of Armenia-NATO Individual Partnership Action Plan (IPAP), as well as
reforms both in military sphere and in the country in general. The RA
Defense Minister underlined the important role of Italian Institute
for Strategic Studies and introduced major general Hayk Kotanjyan,
Director of the similar institute in Yerevan to the guest. During
the meeting issues of regional security were also discussed.

CENTER FOR TREATMENT OF SLEEP DISORDERS TO BE CREATED IN ARMENIA

Noyan Tapan
May 30 2007

YEREVAN, MAY 30, NOYAN TAPAN. A center for treatment of sleep disorders
will be created in Armenia, which, probably, will start to operate
in the second half of summer, at the Institute of Cardiology. As
Noyan Tapan was informed by Chairman of Armenian League of Young
Neurologists Samson Khachatrian, the center will have a modern
laboratory diagnosing sleep disorders. In S. Khachatrian’s words,
currently study of sleep is one of the most quickly developing
directions of medicine in the world and sleep disorders can cause brain
apoplexy, infarct of cardiac muscle, as well as sudden death. As main
sleep disorders he mentioned insomnia, stop of breath during sleep,
well-expressed sleepiness during daytime.

In S. Khachatrian’s words, sleep disorders have not been diagnosed in
Armenia so far and are still being left out of the focus of attention
of doctors of primary link and narrow specialists. However, in his
words, epidemiological study on main sleep disorders will be carried
out soon and information materials will be worked out for both center’s
visitors and specialists.

THE MINIMUM PURPOSE OF THE OSCE MG VISIT IS ACHIEVED

PanARMENIAN.Net
26.05.2007 GMT+04:00

The OSCE Co-Chairs little by little start to realize that the problem
of the Armenian refugees is a serious factor, which, in case of
being ignored, may bring the issue of the conflict regulation to a
deadlock condition.

The main purpose of the visit of the OSCE Minsk Group Co-Chairs
regarding the Nagorno-Karabakh Conflict regulation in fact is achieved;
the Presidents of Armenia and Azerbaijan agreed upon the meeting
in Saint-Petersburg on June 9. In all other respects, the visit was
like all the others, and as always the information disseminated by
the Azeri Press about the visit was quite diametric to what Bernard
Fasie and Yuri Merzlyakov said in Yerevan.

/PanARMENIAN.Net/ In this regard it is worth mentioning Matthew
Bryza’s bewilderment for the announcements he heard on TV in Baku,
which were made on his own behalf. Basically, the announcements made
by the Co-Chairs, which are disseminated by the Azeri Press must be
regarded rather carefully. Perhaps this was why the Russian mediator
Yuri Merzlyakov refused to make any comment to the Azeri journalists.

According to Bernard Fasie the meetings were rather helpful. "We
are building bases for negotiation, and in Yerevan we built one. We
believe that we will be able to build some more in Baku as well,"
he said in Baku.

Most probably the main stress will be laid on the issue of the
refugees. This is what Azerbaijan very often likes to speak about
in such a way, as if there are no Armenian refugees. According to
Arman Melikyan; the advisor of the Nagorno-Karabakh President, the
OSCE Co-Chairs little by little start to realize that the problem of
the Armenian refugees is a serious factor, which, in case of being
ignored, may bring the issue of the conflict regulation to a deadlock
condition. "If the Armenian refugees agree to return to Azerbaijan,
it will be possible to speak about returning the Azerbaijanis, if
not – it is necessary to think about a place where those people will
live and where their new motherland will be. From this point of view
the liberated territories are the most appropriate place," announced
Arman Melikyan. But Azerbaijan thinks otherwise. The survey carried
out by Day.az showed that 34% of the citizens of Azerbaijan are for
returning the Armenians to Azerbaijan after the Nagorno-Karabakh
Conflict regulation, 54% think that it is not possible, and 12% of
the population didn’t answer. 1122 people participated in the survey.

Meanwhile the Co-Chairs in Yerevan announced that they do not
differentiate the refugees according to their nationality. "When
saying that the refugees and the displaced persons must return to
the place of permanent residence, both Armenians and Azeri people
are meant," announced OSCE Minsk Group Co-Chair Bernard Fasie
during a press-conference in Yerevan. He mentioned that the OSCE
Minsk Group has more than once spoken about returning the refugees,
under one condition only – if the attitude of negativism between
the two countries is overcome. "I have already mentioned that one
never starts building a house from the roof. The same concerns the
refugees; where should they be returned, under what conditions and on
what bases? Everything must be carefully worked out," underlined Fasie.

Another important matter that is always being discussed during the
OSCE MG visits is the issue of the participation of Nagorno-Karabakh
in the negotiation process. Every time the mediators mention that
the participation of the Nagorno-Karabakh representative in the
negotiation process is essential, yet the ice doesn’t break, and the
announcements again remain hanging in the air. Arman Melikyan thinks
that the Co-Chairs have their share of fault in the fact that the
Armenian party isn’t involved in the negotiation process.

In his turn the Assistant Secretary of State for European and Eurasian
Affairs announced in the US Congress that Russia and the United
States work on achieving a peaceful method of the regulation of
the Nagorno-Karabakh Conflict, which will lead to stabilization and
security in South Caucasus. "The regulation of the Karabakh Conflict
depends on Azerbaijan and Armenia and the issue is of common interest
of both countries. Together with the OSCE Co-Chairs I was in the
region in spring to grant the Presidents of both countries the main
principles of the peaceful way of regulation of the Conflict. These
are considered to be the key principles in the conflict resolution,"
announced the American diplomat.

Serbian weapons factory to sell arms to Armenia

Glas javnosti, Belgrade
24 May 07

Text of report by Serbian newspaper Glas javnosti on 24 May

[Report by B. Kuljanin (Sina): "Armament Going to Armenia"]

Kragujevac – In the next 10 days or so, the authorities will finally
give permission to Kragujevac-based Zastava Oruzje [Zastava Weapons]
factory to export to Armenia. All verbal approvals have been obtained
and it only remains for the administrative procedure of the competent
ministries exchanging documents to be completed, after which a
delivery worth 900,000 dollars will set off from Kragujevac for
Armenia. After the problems with exporting to Armenia, one should
never again publicly name countries with which the military factory
does business, they say at Zastava Oruzje. The Ministries of Defence,
Foreign Affairs, and Internal Affairs have coordinated positions and
the Zastava Oruzje management has renewed its application for
permission to make a second delivery to Armenia.

"We expect permission to be issued in the next 10 days or so, which
will contribute to a further improvement in the factory’s financial
flow," Managing Director Dragoljub Grujovic said.

The shipment should set off within the next few weeks, after the
remaining permits necessary for executing the export are
obtained. Grujovic said that the past business arrangement with
Armenia had been regular, too, and that there are no sanctions in
place.

Even the OSCE regulation of 14 years ago was repealed in February of
this year; also, Russia does not object to the export of armament to
Armenia, either. Armament manufactured and exported by the Kragujevac
factory is of the defensive kind, not offensive, and is used for
arming some countries’ forces of law and order.

"Russian diplomats have repeated their position that there will be no
problems about this contract or other contracts if Zastava should
request them," Grujovic stressed, adding that another contract was in
the process of being executed, but that the country to which the
armament was being exported would not be named any more.

"The arms market is under tight scrutiny and we are working strictly
by the book," Grujovic said.

[Box] Managing Director Replaced

Belgrade – The Board of Directors of Kragujevac-based Zastava Oruzje
dismissed the company’s managing director, Dragoljub Grujovic,
yesterday [23 May] afternoon due to poor business results and
accumulated debts. According to a statement, Zoran Aleksic, who has so
far headed the production and development department, has been named
acting managing director.

The Board of Directors will support the acting managing director and
the management of the factory and expects to have the authorities’
long-term support for the ongoing process of restructuring the Serbian
defence industry, the statement added.