Author: Nahapetian Boris

11 ARMENIAN BANKS ACQUIRE 11% STAKE IN ARCA

ARMENPRESS
Aug 30 2006

YEREVAN, AUGUST 30, ARMENPRESS: Eleven Armenian commercial banks have
acquired 50.1 percent of shares of ARCA Credit Reporting company. The
deal came as a follow-up of protracted talks with the Union of
Armenian Banks.

Earlier two Armenian banks- Converse and Armeconombank- had bought
each 1 percent of shares of ARCA Credit Reporting. Now more than 52
percent of ARCA’s stake belong to Armenian banks.

Presently 14 out of 21 commercial banks in Armenia which hold in total
76 percent of all bank assets and 75 percent of all bank credits,
own shares in ARCA or are its members. Another 7 big credit and 2
micro-financing organizations are members of ARCA.

Armenia’s Central Bank is expected to acquire shares in ARCA.

ARCA credit bureau was established in 2004 by a US-based Credential
Inc. and an international Dan and Bradstreet companies.

U.N. CHIEF BEGINS MIDEAST TOUR WITH LEBANON VISIT
Zeina Karam

AP Worldstream
Aug 28, 2006

U.N. Secretary-General Kofi Annan on Monday demanded that Hezbollah
release two captured Israeli soldiers to the international Red Cross,
pressing both sides to fulfill their commitments to solidify the
two-week-old cease-fire in Lebanon.

Annan launched a major, 11-day diplomatic push to turn the truce
into what he called a "long-term peace for Lebanon." He said Israel
and Hezbollah could not "choose and pick" parts of a U.N. cease-fire
resolution to implement.

The U.N. chief met with a Hezbollah official in Beirut _ a sign that
he is taking his effort directly to some of the parties that the
United States has shunned. Annan is also expected to visit Hezbollah’s
patrons, Iran and Syria, in his tour, as well as Israel.

Two key steps loom large in pushing forward the cease-fire. One
is arranging the release of two Israeli soldiers whose capture by
Hezbollah sparked Israel’s 34-day onslaught on Lebanon.

The other is putting in place an international force to help the
Lebanese army enforce the truce in the south and ensure there are no
open signs of Hezbollah weapons in the area.

Annan said U.N. resolution 1701, which set out the terms of the
cease-fire, "a fixed menu."

"It’s not a buffet … It’s not an a la carte menu where you choose
and pick," he said. "Without the full implementation of resolution
1701, I fear the risk is great for renewal of hostilities."

The U.N. chief said he was renewing his "call for the abducted soldiers
to be free," and urged Hezbollah to transfer them to the Lebanese
government or a third party under the auspices of the international
Red Cross.

He also urged Israel to lift its air and sea blockade on Lebanon. "I’m
working with them and a number of international partners to see to
it that this is done," he said.

Israeli Prime Minister Ehud Olmert has said the blockade will remain
until the international force takes up positions along Lebanon’s
borders and entry points to prevent the entry of weapons to Hezbollah.

"Until then, Israel must take the proper steps to prevent this
smuggling," said David Baker, an official in the prime minister’s
office.

Israeli diplomatic officials said the issue of the blockade would be
discussed during Annan’s visit to Israel, which begins Tuesday.

Later, Hezbollah supporters booed Annan as he toured southern Beirut,
a stronghold for the Shiite guerrilla movement that was heavily
bombarded during the Israeli offensive.

"We have a chance now to have a long-term cease-fire and a long-term
peace (in Lebanon), and we all need to work together … This is the
purpose of my visit here," he said.

Turkey’s Cabinet decided Monday to send troops to Lebanon as part
of the expanded United Nations force in the south. If its parliament
approves, Turkey would become the only Muslim country with relations
with Israel that has proposed sending peacekeepers.

Italy also approved sending 2,500 troops to serve in the south
Lebanon force.

Annan met separately Monday with Prime Minister Fuad Saniora and
Parliament Speaker Nabih Berri, who serves as Hezbollah’s de facto
negotiator.

"He (Berri) has assured me of the determination of the government
and people of Lebanon to implement that resolution faithfully and
the expectations that the Israeli government will do the same,"
he told reporters.

Annan also met with Mohammed Fneish, a Hezbollah member of Saniora’s
Cabinet. Details of the discussions were not immediately available,

Saniora said he talked with Annan about the status of the two Israeli
soldiers, snatched by Hezbollah July 12, but provided no details of
their discussion. Israel said that a resolution to the conflict must
include the soldiers’ release.

Annan’s visit came amid signs of behind-the-scenes maneuvering
to arrange a prisoner swap between Israel and Hezbollah to win the
release of the soldiers and Arabs and Lebanese held in Israeli prisons
. Israel has insisted it will not negotiate, but it has arranged such
swaps in the past.

Israel’s foreign minister, Tzipi Livni, said that unless the issue
of the two soldiers was resolved, "the whole thing is of little
significance."

"Our sovereignty has been infringed and if this resolution does not
make that good, then we still have this problem," she said in Germany.

Livni’s talks in Germany included discussion of efforts to get
the soldiers released, German Deputy Foreign Minister Gernot Erler
said. Germany has mediated past prisoner exchanges between Hezbollah
and Israel,

"It is well known that Germany has possibilities … to help free
these captured and kidnapped Israeli soldiers," Erler said.

Hezbollah leader Sheik Hassan Nasrallah said in a TV interview aired
Sunday that Italy and the United Nations were involved in "contacts"
to mediate a prisoner swap, for Lebanese and Arab citizens jailed in
Israel. He said Italy and the U.N. were involved, but did not specify
whether they had contacted Hezbollah directly.

The cleric also said there had been "some contacts" to arrange a
meeting between him and Annan, but that it was unlikely for security
reasons. The U.N.

chief announced no such plans.

Turkey’s commitment to send troops boosted the international force. The
United States, the European Union and Israel have pressed Turkey _
the only Muslim member of NATO, with close ties to both Israel and
Arab countries _ to send peacekeepers.

But opposition has been mounting inside the country. President Ahmet
Necdet Sezer, who hold a ceremonial post but wields considerable
influence in the country, came out strongly against the deployment
on Friday saying it was not Turkey’s "responsibility to protect the
interests of other countries."

But Turkey ruled Lebanon for some 400 years during the Ottoman Empire
and many Turkish officials want their country to have a say in an
area that they regard as their country’s backyard.

In Lebanon, the spiritual leader of the Armenian diaspora, Catholicos
Aram I, released a statement calling Turkish participation in a
peacekeeping mission "morally unacceptable."

Armenians want modern Turkey to recognize atrocities committed by
its Ottoman predecessors. They estimate 1.5 million Armenians died
in massacres or forced marches there.

The cease-fire began on Aug. 14, based on a U.N. resolution that
calls for deployment of 15,000 peacekeepers in southern Lebanon and
an equal number of Lebanese troops to patrol the border region when
Israel withdraws.

Italy’s 2,500 troops are the largest contingent promised so far to
the force. A naval task force with some 1,000 troops could set sail
on Tuesday and reach Lebanon by Friday, the Defense Ministry said.

Agency WPS
DEFENSE and SECURITY (Russia)
August 21, 2006 Monday

ARMENIA IS GOING TO DEVELOP PRACTICAL AND POLITICAL COOPERATION WITH
NATO FOR ESTABLISHMENT OF CLOSER RELATIONS WITH THE BLOC

The program of actions of individual partnership with Russia says
that Armenia is going to develop practical and political cooperation
with NATO for establishment of closer relations with the bloc.

Training and re-training of senior officers and revision of the
training program for all branches of the armed forces will be done
in accordance with this document. A peacekeeping battalion will also
be organized in Armenia in accordance with NATO standards and this
battalion will become a peacekeeping brigade in the future. The program
of actions also points out that goals of Armenia include improvement of
border security, defense and budget systems and development of stable
and realistic defense plans. The document also makes provisions for
revision of the strategy for development of the military industrial
complex and working out proposals for its further maintenance. In
the framework of cooperation with NATO a public information center
of the bloc will be opened in Yerevan and stands with the relevant
literature will appear in district libraries. It is also planned to
organize a week of NATO and special seminars and conferences.

Source: Krasnaya Zvezda, August 18, 2006, p. 3

242 refugee families to receive shelter in 2006

ArmRadio.am
25.08.2006 17:08

242 refugee families will receive certificates for buying
apartments in 2006, Deputy Head of the Migration Agency of RA
Ministry of Territorial Administration David Hakobyan told "Radiolur"
correspondent. Mr. Hakobyan noted that the project includes 22 families
residing in Kotayk marz and Nor Nork hostels.

It should be noted that currently 250 thousand refugees reside
in Armenia. Over 5 000 refugee families had received shelter by 2006.

ARMENIAN POETESS SILVA KAPUTIKIAN PASSES AWAY

ARMENPRESS
Aug 25 2006

YEREVAN, AUGUST 25, ARMENPRESS: Armenian poetess, orator, academician
Silva Kaputikian passed away today at the age of 87. She was born in
Yerevan, January 20, 1919. She graduated from the YSU’s Philological
Department and then from Moscow’s Gorki Literature Institute.

The first collection of her poems was published in 1945. Overall,
she published 60 collections in Armenian, Russian and other languages.

Silva Kaputikian was laureate of a number of literary awards. In 1998
Cambridge International Geographic Institute awarded her the title of
"Woman of the Year".

RPA NOT TO NOMINATE CANDIDATE FOR ARMENIAN NA VICE-SPEAKER

Arka News Agency, Armenia
Aug. 23, 2006

YEREVAN, August 23. /ARKA/. The Republican Party of Armenia (RPA)
does not intend to nominate its candidate for the post of Vice-Speaker
of the Armenian Parliament, RPA Vice-chairman Tigran Torosyan told
a press conference.

"The RPA will discuss this issue. But the faction is unlikely to
nominate its candidate for the post of Vice-Speaker of the Parliament,"
Torosyan said. The post of one of the two Vice-Speakers became vacant
after Tigran Torosyan was elected Speaker of the Armenian Parliament
on June 1, 2006. He replaced Artur Baghdasaryan, who resigned on
May 22, his party, "Law-Governed Country", having seceded from the
ruling coalition.

The ruling coalition of Armenia was formed in May 2003 by the
"Law-Governed Country" party, RPA and "Dashnaktsutyun" as a result
of parliamentary elections.

LIBERATION SOLDIERS AGAIN INVOLVED IN POLITICAL INTRIGUES
Hakob Badalyan

Lragir.am
24 Aug 06

Although few of the actors in the political sphere of Armenia deserved
this right to be there, having entered this sphere everyone has the
right to do something for some purpose. Once you enter, you have to
act, independent from whether you are wanted or not. And anyone entered
and anyone was made to enter the political field of Armenia. Such was
life, and for over 15 years the ruling elite have been busy adjusting
and making others adjust this life rather than changing it. However,
the ones who want to think that they can adjust this life on their
own are immediately adjusted by the government.

This was the case with the district attorney of Malatia-Sebastia
community of Yerevan Hamlet Hovsepyan. He and his son tried several
months ago to have the import of cell phones adjusted to themselves.

But "what is allowed to Zeus is not allowed to the Ox", and the
president did not forgive the disrespectful attitude of the Hovsepyans
to the Kocharyans.

They did not allow to become adjusted, and somehow they arranged the
dismissal of District Attorney Hovsepyan. But as we have mentioned
above, once you enter, either you have to get out or you have to go
all the way, no matter how difficult it is to find a place… under
this sun. So, several days ago, there was a roundup the Union of
Veterans of the Liberation War led by Hamlet Hovsepyan at the hall
of meetings of the government, which is usually busy for the radical
opposition. It is notable that the roundup took place in a month
after the scorching (the ideological Republicans will explain the
meaning and connotations of this word) conference of the Republican
Party. The Union of Veterans of the Liberation War decided to run in
the parliamentary election 2007. It not a surprise that the UVLW is
becoming engaged in the political process. This is what it was set
up for.

This organization was set up in 2000, at the height of confrontation
of the president-Serge Sargsyan pair and the Yerkrapah-Republican
tandem. The union was set up versus Yerkarapah, which opposed to the
president of the Republic. Hence, a union of veterans of the Karabakh
was opposed by another union, which was more loyal to the president.

Later on as Robert Kocharyan solved the problem of both the Republican
Party and Yerkrapah, appointing the leaders of these organizations
to high positions, the existence of the UVLW lost its meaning. The
government lost interest in this organization, and in order to avoid
trouble, the famous method of division was applied to the UVLW. The
Union underwent a stage of inner controversies, divided and stopped
being an actor in the home political processes.

Apparently, the leaders of the UVLW did not care for political activity
either, for they got different positions, unofficial quotas in culture,
economy and law enforcement. And naturally the one who loses the quotas
again becomes willing to return the political role, especially that
there is demand. Judging by the fate of Hamlet Hovsepyan, especially
over the past few months, it can be supposed that the Union of
Veterans of the Liberation War is going to be opposition in the next
parliamentary election. It is natural that since the president did
not forgive Hovsepyan, he will not forgive the president. After all,
we deal with the Armenian environment where a drop of honey may cause
a row, let alone cell phones.

The current political situation is an excellent opportunity for Hamlet
Hovsepyan to "return the debt" to the president.

Especially that Hovsepyan may get assistance. It is also possible
that Hovsepyan himself is helping someone "return the dept".

In the political processes of Armenia, especially in a period of
elections, the factor of liberation soldiers has always been great.

The government has always used them for its own reproduction: in 1995,
1996, 1998, 1999, 2003. Although reproduction is increasingly becoming
reliant on the criminal, the factor of veterans (it does not matter
who fought and who heard the shooting) remains rather significant and
will probably remain such as long as the majority of participants of
the liberation war live in hard social conditions.

This is also a planned policy performed by the government, because
it is easier to involve a socially insecure liberation soldier
in political intrigues and make a tool out of him for their own
reproduction.

And perhaps it is quite natural that the Union of Veterans of the
Liberation War is again becoming involved in a home political game.

Maybe the president gave Hamlet Hovsepyan a second chance to "expiate
his sins", offering him to play in his team. Or maybe the Republicans
use the opportunity to shelter Hovsepyan, who is offended. It is not
important, however, in whose team they will be playing. It is evident
that they are going to play against one other, and maybe also against
the state.

WILL GUAM PEACEKEEPERS REPLACE RUSSIANS?

The Messenger, Georgia
Aug. 23, 2006

With the Georgian leadership pushing to sideline Russian peacekeepers
in the conflict zones, questions have arisen as to just who could step
in as a substitution force. The US openly supports the withdrawal of
Russian peacekeepers, calling for the introduction of an international
force in their stead.

However, finding a replacement for the Russian peacekeepers, let
alone convincing Moscow to withdraw, is not a simple task. There are
500 Russian peacekeepers in South Ossetia, and 1600 in Abkhazia.

Ukraine or the Baltic countries are widely viewed as possible
substitutions for Russia, but peacekeeping tasks require a substantial
commitment of material, logistical, and human resources.

Georgia may be hard-pressed to convince states without a strategic
national interest in the region to take on those responsibilities.

There is another, increasingly popular, option: GUAM. The organization
of Georgia, Ukraine, Azerbaijan and Moldova, created in 1997 to
counterbalance Russian influence in the region, met in June to
discuss the creation of a united peacekeeper battalion. The once
moribund alliance, reenergized by the ‘color revolutions’ and Western
encouragement, have strong motivation to establish a joint peacekeeping
force-three out of four of the member-states have unresolved conflicts
on their territories (including Nagarno-Karabakh in Azerbaijan and
Transnistria in Moldova).

The GUAM peacekeeping battalion could function under the aegis of
UN, OSCE, NATO or EU-anything but CIS-mandates, participating in
peacekeeping and humanitarian operations. GUAM summits in 2005,
in Chisinau, and 2006, in Kiev, erected the legal framework to move
ahead with the idea.

There is support from experts and observers for replacing CIS (that
is, Russian) peacekeepers with GUAM forces. Director of the Strategic
Research Center Irakli Menagharishvili, minister of foreign affairs
at the time of GUAM’s creation, says that resolving conflicts and
creating a joint peacekeeping contingent was a priority issue for
the alliance from the get-go.

According to Menagharishvili, today GUAM is fit enough to take on
this mission; of additional helpfulness is the fact that its member
countries now have peacekeeping experience in different part of the
world. Russia’s clear failure to act as a disinterested party in the
conflicts, he says, is a violation of international norms.

Georgia is already taking some modest steps to subtract Russia from
the peacekeeping equation. Recently, on Tbilisi’s demand, Russian
peacekeepers were left out of the monitoring group assembled to
observe the situation in the Kodori Gorge.

Foreign Minister Gela Bezhuashvili has pushed forth with other
substantial demands, including an insistence that in addition to
monitoring of the Georgian-controlled upper Kodori Gorge, observers
should be placed in the Abkhaz-controlled lower part. Additionally,
Tbilisi has long made noise over the former Russian military base in
Gudauta; theoretically, it is completely dismantled by now, but the
Russians, claiming that the Abkhaz authorities won’t allow inspections,
haven’t let observers ascertain that for themselves.

And now, perhaps skittish over this increased talk of a withdrawal of
Russian peacekeeping forces from the conflict zone, Abkhaz separatist
authorities are explicitly threatening military reprisals should
the Abkhazian government-in-exile be resituated in the Kodori Gorge
as planned by Saakashvili’s administration. Far from dampening the
martial rhetoric, Moscow has added its voice to the chorus, saying it
‘shares the concern’ of the Abkhazian de facto government.

Still, Abkhaz separatist leadership is dissatisfied with Russian
conduct; they want their northern patron to bare its teeth against
Georgia. The entry of Georgian ‘police forces’ into the gorge was a
perceived blow to their security, and in their minds a preventable
one should Moscow have more forcefully intervened.

With Abkhazia feverishly convinced that a Georgian attack is imminent,
calls for Russian peacekeeper withdrawal predictably meet with howls
of protest. Finding an independent body willing to step into that
maelstrom will take some doing.

OFFICE OF UN HIGH COMMISSIONER FOR REFUGEES CONTINUES TO ASSIST ARMENIA IN PROVIDING REFUGEES WITH FLATS

Noyan Tapan
Aug 17 2006

YEREVAN, AUGUST 17, NOYAN TAPAN. The Office of the UN High Commissioner
for Refugees has assisted and will continue assisting the Government of
Armenia in providing refugees with flats. Antonio Guterres, the UN High
Commissioner for Refugees, who is in Yerevan within the framework of a
regional visit, informed about it at the August 21 press conference. He
mentioned that registration of refugees is being implemented in Armenia
at present, what will allow to define the number of refugees who need
assistance. A.Guterres mentioned that the most important precondition
of refugees’ integration is their getting citizenship. According to
Guterres, there are two variants of giving citizenship: by the law,
to give citizenship to everybody or to give citizenship to those who
wants to accept it. The UN High Commissioner for Refugees mentioned
that not being a political organization, they are interested in the
peaceful settlement of the Nagorno Karabakh problem. And the issue
of refugees’ return, according to his words, may be solved only as a
result of long and detailed negotiations. A.Guterres also mentioned
that for solution of that problem, an agreement on protecting people’s
property right must be reached between the two parties.

ARMENIA ORDERS CDMA450 NETWORK

Cellular-News, UK
Aug. 17, 2006

China’s ZTE says that it is to provide Armenia with its first CDMA450
network. Under the terms of the agreement, ZTE will provide ArmenTel
with a new network based on ZTE?s end-to-end CDMA450 WLL (Wireless
Local Loop) solution. The agreement will lead to the improvement
and expansion of the country?s nationwide fixed telecoms network
infrastructure and makes ZTE the first Chinese telecoms equipment
vendor to have experience of working in the Republic of Armenia.

"It is a priority for us to enhance fixed-line services across the
country. ZTE?s equipment will allow us to do just that by providing
reliable communications to areas which have traditionally not been
well served by the existing infrastructure. Our use of CDMA450 marks
a new chapter for our company that can invest in a cost-efficient way
and for our customers who will benefit directly from this technology
of high quality service" said Mr Smarnakis, CTO of ArmenTel.

The 450 MHz spectrum is becoming an increasingly attractive networking
option for European carriers as it represents an economic way to
deploy a large-scale wireless network telecoms infrastructure.

Crucially, the low spectrum results in larger cell sizes, therefore
requiring relatively few base stations. This means that operators
benefit from reduced infrastructure investment than would normally
be needed for deployments of a similar size.

As the largest operator in Armenia, ArmenTel owns 100% of the country?s
fixed phone customer base and over 60% of its mobile subscribers. In
1998, 90% of ArmenTel?s shares were acquired by OTE, the largest
fixed-line operator in Greece. ZTE recently worked with OTE when it
was chosen to supply vital broadband Internet access systems during
the Olympic Games in Athens.