OSCE Minsk Group Mission Visiting Qarvatchar

OSCE MINSK GROUP MISSION VISITING QARVATCHAR

Azg/arm
01 Feb 05

The OSCE Minsk group co-chars accompanied by OSCE monitoring mission
left Stepanakert for Qarvatchar region yesterday morning. This region,
Qelbajar as Azeris called it, belonged to Soviet Azerbaijan but today
is supervised by Nagorno Karabakh forces. The monitoring mission
visited several villages ofQ arvatchar as well as the region’s
center. The mission headed by German ambassador Emily Haber includes
10 members some of who are well-informed about Karabakh
issue. Mrs. Haber spent few years in German embassy to Ankara and was
the head of OSCE Division First Counselor Federal Foreign Office. The
OSCE Minsk group co-chairs are accompanying the monitoring mission in
Qarvatchar but they are not engaged in fact-finding. They are
observing the territories whereas the monitoring group is visiting
every house asking people where they came from, who brought them there
and whether the state supports them. Questions from an enquirer are
supposed to unveil the background of the settlers.

Answering daily Azg’s question as to what the mission’s goal is,
Mrs. Haber said that they will travel across territories that are
administratively outof Nagorno Karabakh and are under the Armenians’
control, will monitorand apparently will report on the situation to
the Minsk group in 1-2 months. Ihad the impression that Russian and
American co-chairs, Yuri Merzlyakov and Steven Mann, were not
enthusiastic about visiting the territories. They think thatsuch steps
change the issue’s direction. Supposedly, they mean that Azerbaijan is
more concerned with secondary issues instead of trying to find a
solution for the conflict.

On their way to Qarvatchar from Stepanakert the OSCE mission halted at
Dadivank, this medieval pearl of Armenian architecture, and put a
candle (the thought that this Armenian monastery and the whole
territory was once introduced as Azeri made me edgy).

The route from Stepanakert to Qarvatchar takes few hours but the
monitoring mission kept on in radio-equipped vehicles when one of
Karabakh representatives was telling stories from Karabakh war. We
were passing through territories that were under Azeri military’s
control in 1992, and the ruined settlements stood as witnesses of the
past war. They saw settlements notable for the Azeris atrocities when
40 percent of Karabakh was under their control. Vasili Nalbandian,
head of Qarvatchar region’s administration, was tellingthe mission
that he lost his home at the other side of Mrav mountain and moved to
Qarvatchar having no other place to go.

Having spent all day in Qarvatchar the mission will go south in the
direction of Iranian border to see other territories under Karabakh’s
control. It is supposed that they will stay there 7-10 days trying to
get the overall picture of the region. The mission is armed with
documents from Azerbaijan with indication of regions and settlements
that Armenia is allegedly inhabiting on state level.

Though we didn’t witness mission members’ talks with the local
population, I have the impression from what I heard that 99 percent of
refugees are from Shahumian, Getashen and other parts of Azerbaijan. I
want to remind that the mission’s visit to these regions was
Azerbaijan’s initiative.

By Tatoul Hakobian in Qarvatchar

BAKU: Azeri Analyst Hits Out at CoE Reporter’s “Dual” Statement

AZERI ANALYST HITS OUT AT COUNCIL OF EUROPE REPORTER’S “DUAL” STATEMENT

Yeni Musavat, Baku
29 Jan 05

An Azeri political analyst has said that the rapporteur of the
Parliamentary Assembly of the Council of Europe on Nagornyy Karabakh
is performing a balancing act between Azerbaijan and Armenia. In
remarks to opposition daily Yeni Musavat, Rasim Musabayov said that
David Atkinson is using “a dual language of traditional European
policy in order to preserve balance”. Musabayov also called on
Azerbaijan to pursue a “flexible” policy on Nagornyy Karabakh and not
to dramatize the situation. The following is the text of Elsad
Pasasoy’s report by the Azerbaijani newspaper Yeni Musavat on 29
January headlined “Atkinson’s ‘dual language’ statement” and subheaded
“Rasim Musabayov: ‘It is not a tragedy to start negotiations with
Karabakh Armenians'”; subheadings have been inserted editorially:

Apart from commendable points in the resolution of the Parliamentary
Assembly of the Council of Europe (PACE), there are some provisions
that could upset Azerbaijan. These are the recognition of the right of
Armenians in Nagornyy Karabakh to self-determination and the
recommendation that Azerbaijan “should start negotiations without any
conditions” with them.

No self-determination for Karabakh

Guided by these factors, Armenia’s official propaganda tells its
people not to worry and claims that the passed resolution will not be
that bad for Yerevan and Karabakh’s Armenians. Some statements by the
PACE rapporteur on Nagornyy Karabakh, David Atkinson, alleviate
Azerbaijani concerns, but, on the other hand, the tip of the iceberg
can be seen in an issue threatening our country. Thus, Atkinson’s
statement that “the principle of ‘the right of nations to
self-determination’ cannot be applied to the Karabakh issue” was a
kind of cold shower in winter for those who claim (setting up) the
“Nagornyy Karabakh Republic”. The rapporteur stressed that any changes
to borders can be possible with the mutual consent of the parties. He
also added that Azerbaijan will never agree to the independence of
Nagornyy Karabakh. He stressed that “the CE and other international
organizations cannot recognize the independence of Nagornyy
Karabakh. Therefore, the right of nations to self-determination cannot
be applied to Karabakh.”

“Preserving balance”

However, the second part of Atkinson’s statement gives grounds for
concern. “We are expecting the Azerbaijani government to start
establishing contacts with representatives of Nagornyy Karabakh and
discussing the problem with them following the adoption of the
resolution.”

As may be seen, the officials are hastily drawing official Baku,
without giving it any chance to enjoy the PACE resolution, in
negotiations with the regime they called “separatist”.

Political analyst Rasim Musabayov believes that Atkinson is speaking
in a dual language of traditional European policy in order to preserve
balance.

“On the one hand, he says he does not recognize the right of
(Karabakh) Armenians to self-determination, but on the other hand he
calls on Azerbaijan to negotiate with Karabakh’s Armenians. But, the
Karabakh Armenians want independence. What is there to discuss with
them in this case?”

“Frame”

Yet, the political analyst says it is necessary to note an innovation
in the resolution.

“They had been saying for many years to “go and negotiate with
Karabakh’s Armenians” and that “we support Azerbaijan’s territorial
integrity including Karabakh”. But they had been trying not to call
Armenia an occupier and the Karabakh regime separatist. Now they are
saying that and it is positive factor”.

This assessment shows the Armenians a framework. “They want to say
that this is the way to peace. Otherwise, you would not be able to go
beyond the framework. Because Azerbaijan will never recognize your
independence and you are exposing your people to difficulties by
prolonging time.”

“No tragedy”

The expert does not see the condition for Azerbaijan to negotiate with
Karabakh’s Armenians as a tragedy.

“In fact, we have never said that we do not want to negotiate with
Karabakh’s Armenians. We have said that we want to talk about the
status, but only after the liberation of the occupied territories. I
do not think it is a tragedy to have contacts on any level with
them. It is not imperative that (Azerbaijani President) Ilham Aliyev
negotiates with (leader of Karabakh separatists) Arkadiy Gukasyan
face-to-face. The negotiations can be held on a lower level. We can
sit and listen to the Armenians”.

No negotiations between communities

Musabayov says there is no need for holding negotiations between the
Azerbaijani and Armenian communities (of Nagornyy Karabakh).

“The Armenians in Karabakh have problems not with the Azerbaijani
community, but with the Azerbaijani government. I do not believe that
any talks with Karabakh’s Armenians could yield results. If Kocharyan,
a person who has done all this and controls the occupied territories,
is the president of Armenia, it is no use expecting anything from
Karabakh’s Armenians. We have been negotiating with the Armenians for
10 years and we cannot start negotiations with Karabakh’s Armenians
now. But we should not be afraid of any contacts. It does not mean
recognizing Karabakh as a party to negotiations.”

Non-constructive party

He also touched on the experience of neighbouring countries. “The
Georgian government is negotiating with the unrecognized Abkhaz and
Ossetian leaders. The Moldovan president opts for negotiations with
the concocted structure in Dniester (region of Moldova). We must not
dramatize the situation. We need to pursue quite a flexible policy
here. We must take steps for the opposite party to be seen as wrong
and non-constructive. In the end, either the non-constructive party
will came under pressure, or the international community will
understand that we have taken all steps, but the Armenians have not
come to common sense.”

In that case, there will not be a serious obstacle to Azerbaijan
resorting to a military way (of resolving the conflict), he said.

NK, South Ossetia, Abkhazia: Workings of Euro policy on So Caucasus

Caucaz
europenews

01/30/2005 23:36 Tbilisi

Nagorno-Karabakh, South Ossetia, Abkhazia : the workings of the European
policy on South Caucasus [EU – CONFLICTS – DOV LYNCH]

By François GREMY and Célia CHAUFFOUR in Paris
On 28/11/2004

Light on the workings of the European policy on South Caucasus. How should
we understand the common point of view of the member States at the European
Institutional level? Interview with Dov Lynch, researcher at the European
Union Institute for Security Studies (EU-ISS), specialist of the EU-Russia
relations and the security issues in Russia and in the ex-USSR.

We know that the Europeans thinktanks are at least present, if not influent
in the European structures. Do they mention the possibility to intervene in
Abkhazia in a more committed way ? Is it feared that the Abkhazian crisis
might lead to a domino effect in South-Caucasus ?

There are several thinktanks, notably the Center for European Policy Studies
(CEPS), and the European Union Institute for Security Studies (EU-ISS) where
I work, as well as the Free University of Brussels for which Bruno
Coppieters collaborates. But, there is no organization that is taking an
official stance in favor of a more committed European intervention in
Abkhazia.

One month before Heikki Talvitie was appointed in July 2003, EU-ISS
organized an International conference about South-Caucasus and the European
Union. This conference gave me the opportunity to write an article and to
raise the question of the commitment of EU in the Region. If EU was to get
committed, by which conflict would it first deal with ? Even if this article
was debated at the official level, it was not accepted.

As regards Nagorno-Karabakh, EU offered its participation but only at the
post-conflict level : proof that Brussels does not plan on intervening about
the issues of conflict-solving and negotiations. It is known as the
checkbook effect: you have at your disposal a checkbook and in case your
interlocutor is ready, you agree to offer quickly your help by way of
considerable financial means in order to consolidate Peace. But you do this
only after making sure that the fondations of Peace have been laid down.

Generally speaking, EU has decided to not intervene directly in the
negotiation mechanism of the conflict so as to leave this to UN and OSCE.
Its role which is limited for the previously mentionned reason, will be
played after an agreement is reached in one of those regions of conflict. It
will result in financings, local reconstructions, etc.

But, the last events demonstrated that EU could change its stance. The
South-Ossetian crisis was the proof of it. The special representative Heikki
Talvitie wants to play a more direct role in the conflict opposing
Saakashvili to Kokoïti. He recently organized a meeting about this, and
during the crisis this summer he has regularly gone here and there in South
Caucasus. His task to make things easier might even grow more important in
the future.

Regarding Abkhazia, it was decided that the Council did not have to
intervene directly. But under the aegis of the Commission, Europe wants to
take part in helping in the reconstruction. Hence the new program which was
announced over last summer : it supports the reconstruction and transition
to democracy in Western Georgia, notably in Zougdidi, but also in some
Abkhazian regions. We integrated programs that were put aside a few years
ago.

When you talk about EU, what do you mean exactly by the Commission or other
structures ?

I mean the Council. The Parliament has very little influence over the EU
political issues. The Commission is very influent – let’s not forget that it
has at its disposal considerable financial means. But, as regards the
political line for the conflicts and EU’s involvement in the negotiations,
it is relevant of the Council of member States.

What credit do you give to the delegation of the European Parliament which
heads the three Parliamentary Commissions EU-Armenia, EU-Azerbaijan,
EU-Georgia ?

As always, the Parliament acts as an idea catalyst. The Parliament managed
to schedule and put on the agenda, some ideas which are for most of them
much too ambitious, or considered unrealistic. Those ideas are not
systematically integrated, but it is the role of the Parliament to support
and defend concepts so as to EU does not lose sight of this region.

With avant-gardist propositions ?

Yes, but with a result finally not so influent. For many issues, and since
1999, the Parliament advocates a common strategy for South-Caucasus. It is
important that the Parliament asserts this, and that the local élite see one
of the EU’s actors makes such a stance public, since it fosters a certain
solidarity and an attentive behavior.

Is there countercurrents among the Commission and the European Parliament
about a stronger EU’s commitment in South-Caucasus, if not even an active
policy to encourage those countries to apply for membership?

It seems to me that the Parliament encourages membership since 1999. But the
Council, the Commission and the Parliament concurr in admitting that the
Parternship and Co-operation Agreements (PCA) which constitute the framework
for the EU-South Caucasus relations are not sufficient to reach the goals
announced in the PCA -political stability, conflict-solving and durable
development.

The Commission, the Council and the Parliament are aware of it. Since 1999,
an internal debate is going on between those three main actors so as to find
a solution. Everyone knows that the objectives of durable development and
political stability cannot be considered without solving the conflicts. EU
is in a difficult position : it is not ready to intervene, but its
objectives cannot be fulfilled without a regional openness which requires to
settle the tensions between Armenia and Turkey, notably the embargo, etc. A
region has to be created.

The European Parliament has been hoping for years for a common and more
committed policy. As for the Commission, it maintains its position.
But, the debate is before all taking place between the member States. Some
States are in favour of a much more committed polciy, notably Germany and
some Nordic countries. Other member States already committed in the region
are not sure about the necessity of adopting a strategy at the regional
level. They question the added value that EU might bring.

Do you think that the interests of the countries which are the most influent
in this zone may be incompatible with the ones of EU ?

It is more a matter of added value than a matter of incompatibility. Some
member States have adopted for ten years a national policy of intervention
in this region. France co-presides the Minsk Group. Germans are very implied
in solving the conflict in Abkhazia. The English also appointed Brian Fall
as the special representative firstly for Georgia on October 1st 2002, and
then for South-Caucasus. Brian Fall is an experienced diplomat and a former
ambassador in Moscow. He knows this region very well.

In 2002, those countries started to realize that a European policy might
succeed where national policies had reached their limits. Those debates
ended up by the appointment of Heikki Talvitie. The mandate of this new
special representative is innovative, as the Council points out. But we coud
also see there a compromise : Talvitie does not have an office in Brusells ;
he has at his disposal a reduced budget and little technical support.
Besides his post is mainly financed by Finland.

A lack of means coupled to too much bureaucracy?

Heikki Talvitie is very careful. He is very well aware of the limited weight
of EU in the region, but also aware of the presence of other countries and
organizations which already have a clear influence in the region. He was
ambassador in Moscow and he knows very well Russia. Hence, he knows the
constraints he has to deal with. The objective his first year of mandate is
to meet the decision-makers. Russians were rather anxious as for the
creation of this European representation, but he managed to « reassure »
Moscow.

Do you think that Heikki Talvitie will present at half-mandate a report
about the regional situation or else a concrete action-plan ?

I do not think so. I believe that he has to hand back a general report,
every six or twelve months. Those are short documents where a certain number
of ideas are highlighted. Those ideas may appear too timid, but his freedom
of action is limited.

I do not think that he can establish an action plan. An action plan has a
specific connotation. UE implements action plans for Moldavia, Ukrain,
Israël or in the framework of the new neighborhood policy.

So it is not realistic to consider a definite regional policy by the next
3-4 years ?

Indeed. On the other hand, an action plan not at the regional level but at
the national level might be considered – and, firstly for Georgia in case it
carries on its transition. But, those action plans will be passed only after
the first wave of action plans set up for the new neighbors and which will
be ratified next month. Almost one year will have been necessary to
negotiate an action plan with Ukrainians and Moldavians. This one comprises
4-5 chapters about policy, economy and conflict-solving.

For the time being, the South-Caucasus countries are not ready. Their being
included in the new neighborhood policy last June is decisive at
medium-term, but not immediatly. Everything is possible, but EU’s strategy
for the next 3-4 years basically depends on the current events. The
topicality may open up options more quickly than forecasted, as well as
close them.

Translated by Marie Anderson.

PACE Res on NK Unfavorable for Armenian Side: Vahan Hovhannisian

PACE RESOLUTION ON NAGORNY KARABAKH IS UNFAVORABLE FOR ARMENIAN SIDE:
VAHAN HOVHANNISIAN

YEREVAN, JANUARY 28. ARMINFO. The resolution of the Parliamentary
Assembly of the Council of Europe on Nagorny Karabakh is unfavorable
on the whole for the Armenian side. Vice Speaker of National Assembly
of Armenia, member of the bureau of the party ARF Dashnaktsutiun Vahan
Hovhannisian stated during the news conference at the National press
club, Friday.

Of course, there are separate provisions in the document, proceeding
from the interests of the Armenian side, the vice speaker said. Among
them the call on to the authorities of Azerbaijan to begin a dialogue
with representatives of Nagorny Karabakh on determination of the
status of this region. Despite the fact that the PACE resolution on
Nagorny Karabakh is of recommendation nature and cannot have a legal
influence on the process of settlement of the Karabakh conflict within
the framework of OSCE Minsk Group, it is dangerous that Azerbaijan
succeeded to bring the discussions concerning the Karabakh problem
from the format of OSCE Minsk Group to other international instances
who know little about the kernel of the Karabakh conflict, Vahan
Hovhannisian stressed. And it is the omission of the Armenian
diplomacy, he said. “All the experts, including the cochairmen of the
OSCE Minsk Group, who have examined the genesis and the history of the
Karabakh conflict, know well in whose side is the truth.

Just that’s why, beginning from 1998 the positions of the Armenian
party concerning the Karabakh conflict have been taken into
consideration in all the proposals of OSCE Minsk Group. And that’s why
these proposals were rejected by Azerbaijan, the vice speaker
said. According to him, Azerbaijan, realizing the fact that it cannot
reach a success in the negotiation process within the framework of the
OSCE Minsk Group, as it is difficult to mislead the cochairmen, has
transferred the discussions of the Karabakh conflict to international
instances who know about it a little. Just for this reason the
Armenian side has declared that PACE is not the most favorable arena
for discussion of the Karabakh problem. However, it the fact is
important that no one of the international structures supports the
militarist aspirations of Azerbaijan in the Karabakh problem, and in
the process of peaceful negotiations the Armenian party will be able
to reach certain achievements.

The negotiation process for settlement of the Karabakh conflict is
going on, it means this issue has not reached a deadlock”,
Hovhannisian said. He stressed that a special advice format with the
participation of the heads of Armenian delegations to international
structures will be established at the National Assembly for increase
of the efficiency of the parliamentary diplomacy.

Karabakh defence minister downplays Azeri combat readiness

Karabakh defence minister downplays Azeri combat readiness

Noyan Tapan news agency, Yerevan
27 Jan 05

STEPANAKERT

“Based on the intelligence information of the Nagornyy Karabakh
republic’s defence army, as well as regular monitoring on the contact
line, one can say with a great deal of confidence that Azerbaijan is
not capable of resolving any issue militarily,” the defence minister
of the Nagornyy Karabakh republic, Seyran Oganyan, told a news
conference on 26 January when asked about Azerbaijan’s belligerent
rhetoric.

At the same time, he acknowledged that such statements are indeed
worrying.

With regard to the arrival of an OSCE monitoring group in the region,
he said: “We treat this mission quite normally.”

As far as agricultural work on the territories controlled by the
defence army is concerned, the minister said the army could not hamper
the population in this and could only help farmers with it.

BAKU: Defence Ministry denies “heavy clash” on Karabakh front line

Azeri Defence Ministry denies “heavy clash” on Karabakh front line

Assa-Irada, Baku
27 Jan 05

BAKU

Armenia has once again violated the cease-fire, ANS TV reported today.

Passage omitted: details of ANS report

An Azerbaijani army soldier, Aqil Mammadov, born in 1986, was killed
in a fight.

Passage omitted: more details

The Azerbaijani Defence Ministry has partly denied the report. In a
report provided to Assa-Irada news agency, the ministry’s press
service said that there had been no heavy clash and that an
Azerbaijani soldier had been killed by Armenian fire in a cease-fire
violation.

Sentence About Armenian Genocide Excluded from German Hist. Books

SENTENCE ABOUT ARMENIAN GENOCIDE EXCLUDED FROM BOOKS ON HISTORY IN GERMANY

Azg/arm
28 Jan 05

Armenialiberty website informed that under Turkey’s pressure the
statement on the Armenian Genocide was excluded from the school
manuals on history in Germany. Die Welt magazine informed that a
Turkish diplomat sent a letter of protest to Matthias Plazek, head of
Brandenburg region. As a result, the sentence “for example, the
genocide of the Armenian population of Anatolia” was excluded from the
book on history for 9-10 grades. Plazek explained this by the
following excuse: “The genocide is an extremely important issue to be
touched upon in half a sentence.”

The newspaper stated that in Germany the massacre of the Armenians is
mentioned in the books only in the region of Brandenburg. Shavarsh
Hovsepian, chairman of the Central Committee of the Armenian
Organization, told the newspaper that that was a scandal. “it is a
pity that they decide what kind of text-books to have in Brandenburg
under the dictate of Ankara,” he said. The head of this region is a
member of the Social-Democratic Party that is for Turkeyâ=80=99s
membership to EU. At present, almost 2 million Turks are dwelling in
Germany, the Turkish community is the biggest in this country.

By Ruzan Poghosian

Italy’s President Ready to Assist Economic Development of Armenia

ITALY’S PRESIDENT READY TO ASSIST ECONOMIC DEVELOPMENT OF ARMENIA

ROME, JANUARY 27. ARMINFO. Italy is ready to assist the economic
developmentof Armenia, increase of the trade turnover between the two
countries and Italian capital in Armenia. President of Italy Karlo
Adzelio Champi stated during the meeting with President of Armenia
Robert Kocharian, who is in Italy on a visit.

During the meeting the presidents have discussed the relations between
the two countries, a series of issues of regional and international
plan, as well as the process of Armenia;s integration into
Europe. During the president of Armenia has expressed hope that the
first visit of the president of Armenia to Italy will promote the
development of bilateral relations. Kocharian informed his Italian
counterpart about the relations of Armenia and EU and stressed the
importance for Armenia the program “Wide Europe. New Neighborhood
Policy”. In his turn, the president of Italy has expressed readiness
to assist Armenia’s integration into European structures and mentioned
that the Caucasus has a strategic importance for Europe.

Robert Kocharian has also met with the chairman of the parliament of
Italy, chairman of the senate of Italy.

It should be noted that in Jan-Nov 2004 the total volume of trade
turnover between Armenia and Italy was $62.8 mln, which is 26.6% more
than in the same period of 2003.

Armenian President’s “Crusade” Against Tax Evasion Fails to Impress

EURASIA DAILY MONITOR
Volume 2 Issue 17 (January 25, 2005)

ARMENIAN PRESIDENT’S “CRUSADE” AGAINST TAX EVASION FAILS TO IMPRESS

By Emil Danielyan

Armenian President Robert Kocharian has announced a major crackdown on tax
evasion, which is widely blamed for the highly uneven distribution of the
benefits of Armenia’s robust economic growth. In separate high-profile
meetings with the leaders of his government’s taxation and customs
administration services earlier this month, Kocharian demanded that both
agencies tackle the acute problem in earnest and said he will no longer
tolerate rampant corruption within their ranks.

However, there is widespread skepticism about the seriousness of the war on
tax fraud. Local commentators believe that Kocharian will not address the
root causes of the problem because he himself presides over a highly corrupt
political and economic order that precludes the rule of law.

And yet Kocharian’s criticism of the tax authorities, heavily publicized by
state television and other channels controlled by the Armenian leader, was
extraordinary indeed. “I am sure that if you start from yourself, from
taxing your friends and relatives, you will not let others stay beyond the
taxation field,” he told senior officials from the State Taxation Service on
January 11.

Kocharian thus admitted that Armenian tax officials routinely give
privileged treatment to businesses owned by themselves, their relatives, and
their cronies. But several newspapers have questioned the sincerity of his
concerns. The popular weekly 168 Zham wrote on January 13 that he should
have simply ordered law-enforcement bodies to bring the taxman to account
instead of exhorting the latter to respect the law. Another paper, Haykakan
Zhamanak, went further, saying, “One should start not from the employees of
the Taxation Service and their relatives, but from Kocharian and his
relatives. That would be more fair.”

Kocharian had a similar encounter with the leadership of the State Customs
Committee on January 8. Without naming names, he bluntly accused
various-level officials from the Committee and other government agencies of
helping large-scale importers avoid taxes in return for kickbacks. This, he
said, is hampering Armenia’s post-Soviet economic recovery.

Kocharian was equally outspoken at a December 27 meeting with a large group
of businessmen that control much of the economic activity in Armenia. “Our
employers are hiding [earnings] in such volumes that do not fit into any
reasonable boundaries of decency. Be aware that there will be no concessions
to anybody on this issue [in 2005].”

The leitmotif of these meetings is the Armenian government’s budget for this
year. Worth approximately $800 million, it calls for a 25% rise in public
spending. Kocharian is anxious to ensure that the tax and customs
departments collect an extra 53 billion drams ($110 million) in taxes and
import duties to finance the increase.

But even a successful implementation of the 2005 budget would hardly deal a
heavy blow to tax evasion. The Armenian government’s tax revenues have
increased steadily in recent years on the back of robust economic growth
that hit (according to official figures) a record-high rate of 13.9% in 2003
and remained in double digits in 2004. However, tax revenue makes up less
than 16% of the GDP, a very small proportion even by ex-Soviet standards.
The International Monetary Fund highlighted the “weak” tax collection in an
extensive report on Armenia released in November 2004.

The most serious form of tax fraud is the underreporting of corporate
revenues. Many large and lucrative businesses falsely claim to operate at a
loss to avoid paying taxes on profits. Government-connected individuals,
including the millionaire “oligarchs” close to Kocharian, own many such
enterprises. Their financial and logistical support was crucial for
Kocharian’s hotly disputed reelection in 2003. These businesses have been
the prime beneficiaries of Armenian growth. Meanwhile, according to
government data, at least 43% of Armenians still live below the official
poverty line.

Employers also evade taxes by underreporting the salaries and number of
their employees. The Armenian Ministry of Labor estimates that more than
400,000 workers are affected by the practice, which Kocharian particularly
attacked. Therefore, the tax authorities launched large-scale business
inspections in early January to uncover hidden employment. The head of the
Taxation Service, Felix Tsolakian, said in a newspaper interview published
on January 20 that his agency has already identified 10,000 hidden jobs.

But there are already reports of tax authorities forcing the owners of
small- and medium-sized companies to artificially increase the number of
workers listed on their payroll. Tsolakian did not deny this, but defended
the overall integrity of the process.

The tax authorities have long harassed small firms not connected with
influential government officials to meet their growing revenue targets, and
there is no reason to believe that they will stop doing that now. Tax
evasion is likely to remain a serious problem for Armenia as long as there
is no solution to its genesis: a corrupt and unelected government not
accountable to the people.

Lecture/Seminar on Air and Water Quality in Human Space Flights

PRESS RELEASE
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ARPA Institute and Armenian Engineers and Scientists of America
present the Lecture/Seminar “An Avnaced Miniature Gas
Chromatograph-Mass Spectrometer System for Air and Water Quality
Measurements in Long Duration Human Flight” on Thursday, January 27,
2005 at 7:30 PM in the Merdinian School Auditorium. The presenter
is Dr. Ara Chutjian.
The address is 13330 Riverside Dr., Sherman Oaks, CA 91403.
Directios: On the 101 FY Exit on Woodman, Go North and Turn Right on
Riverside Dr.
Abstract: Any space mission involving extended astronaut travel time
must have an accompanying system for monitoring the quality of the
onboard air and water. The system must not only meet the detection
criteria for undesirable species, at the detection limits set by NASA
and the National Academy of Sciences; but must also meet generic
requirements, such as having low mass, volume, and power; requiring
minimal astronaut involvement, and having minimal need for
consumables. The criteria for acceptable air and water contamination
levels will be briefly reviewed. Some of the engineering physics
involved in a new, second-generation, miniature gas chromatograph-mass
spectrometer being proposed for the International Space Station will
then be discussed. And, finally, explanations of the GCMS operation,
with comparisons to methods currently in use aboard the ISS, will be
given.

1This work was carried out at JPL/Caltech, and was supported through
contract with NASA.

ARA CHUTJIAN: Dr. Chutjian is a Senior Research Scientist at the Jet
Propulsion Laboratory/Caltech; and Leader of the Atomic and Molecular
Collisions Group. He is also a Visiting Faculty Associate at the
California Institute of Technology. Dr. Chutjian received his PhD
from the Univ. California (Berkeley) in 1966. He served as a Research
Associate at the AT&T Bell Laboratories, and at USC. In 1969 he
joined JPL where he presently leads a group of researchers in the
areas of ultralow energy electron attachment, electron-highly charged
ion (HCI) collisions, HCI-neutral charge-exchange and X-ray emission,
measurement of metastable HCI lifetimes, fast neutral-beam collisions,
trace-species detection, and miniaturization of mass spectrometers and
gas chromatographs for space flight. He is Principal Investigator on
the Trace Gas Analyzer, an astronaut hand-held miniature mass
spectrometer leak detector use for leak detection at the International
Space Station. He holds sixteen patents, and has over 150
publications in the refereed literature. He is a Fellow of the
American Physical Society and a recipient of NASA’s Exceptional
Scientific Achievement Medal for his work in ultralow energy electron
attachment, and the introduction of electron energy loss methods in
electron-ion collisions.

For Information Please call Dr. Hagop Panossian at (818)586-9660 or
Mr. Vazgen Ghoogassian

http://www.arpainstitute.org