"Possibility To Prevent Armament Supply From Serbia To Armenia Remai

"POSSIBILITY TO PREVENT ARMAMENT SUPPLY FROM SERBIA TO ARMENIA REMAINS"
Says Asim Mollazade, member of the Azerbaijani parliament
by S. Rzaev
Translated by Pavel Pushkin

Source: Echo (Baku), January 15, 2007, p. EV
Agency WPS
DEFENSE and SECURITY (Russia)
January 15, 2007 Monday

AZERBAIJAN HOPES TO PREVENT SMALL ARMS SUPPLY FROM SERBIA TO ARMENIA;
Serbian company Zastava received the final decision about the supply
of weapons to Armenia. Armenian mass media reported that at the first
stage, Zastava will deliver small arms worth approximately $2 million
to Yerevan. Asim Mollazade, member of Azerbaijani parliament and member
of the permanent parliamentary commission for international affairs
and inter-parliamentary relations, expressed his opinion about the
"weapon" scandal in an interview.

Serbian company Zastava received the final decision about the supply
of weapons to Armenia. Armenian mass media report that at the first
stage Zastava will deliver small arms worth approximately $2 million
to Yerevan. Some time ago, an incident in armament supplies from
Serbia to Armenia resulted in a scandal inside of the government in
Belgrade. Foreign Minister of Serbia Vuk Draskovic spoke against the
weapon export. He emphasized that OSCE vetoed the armament sale to
Armenia and Azerbaijan because of the Nagorno-Karabakh conflict.

Khazar Ibragim, senior secretary of the information policy and press
department of the Foreign Ministry of Azerbaijan, reported that Baku
issued instructions to the diplomatic mission of the country in the
OSCE headquarters in Vienna. Ibragimov says that even though the
matter concerns supplies of light small arms that are not subject
to the treaty on conventional armed forces in Europe, the matter is
still about regional security. Asim Mollazade, member of Azerbaijani
parliament and member of the permanent parliamentary commission for
international affairs and inter-parliamentary relations, expressed
his opinion about the "weapon" scandal in an interview.

Question: What can Azerbaijan do in this situation?

Mollazade: Azerbaijan can state its official protest, which will
further strengthen the positions of the Foreign Minister of Serbia
who advocates suspension of armament exports to Yerevan.

Question: The Armenian party insists that regardless of all disputes
Serbian weapons will be delivered to it and all permits have already
been issued.

Mollazade: I think a possibility to prevent armament supply from
Serbia to Armenia remains because of the stance inside of the Serbian
government. For example, the position of Foreign Minister Draskovic.

For us this is a good opportunity to attract the attention of the
international community to the armament race in Armenia.

Question: What if the Serbian armament is supplied to Armenia? Will
this create a new precedent?

Mollazade: Weapons have been supplied even before this. Thus, Armenia
is armed to the teeth. I do not rule out that even Yerevan trades
in some kinds of weapons now. It is quite possible that Armenia
is a transit country in the transfer and resale of weapons. It is
necessary to attract the attention of the international community to
such facts. The cooperation of Armenia with international terrorist
organizations is known to everyone and it is impossible

to know whether or not this armament will end up in the hands of
terrorists.

Question: Will this incident impact relations between Baku and
Belgrade?

Mollazade: It is possible to try to convey the whole truth about the
Armenian-Azerbaijani Nagorno-Karabakh conflict to Serbia. It is also
necessary to say that today Yerevan tries to make certain comparisons
between the conflict in Kosovo and in Nagorno-Karabakh. We are obliged
to inform the Serbian public of whom they support now and to whom
they supply weapons.

UN Warns Of Looming Crisis In Kirkuk

UN WARNS OF LOOMING CRISIS IN KIRKUK

The Guardian
1/16/2007

Human rights situation deteriorating in oil-rich Iraqi city ,
report says.

The deteriorating human rights situation in the oil-rich city of
Kirkuk in northern Iraq could be a prelude to a looming crisis in
the Kurdish region, the UN warned today.

In its bi-monthly human rights report on Iraq, the UN voiced concerns
at reports of mistreatment of ethnic Turkmen and Arabs by the Kurdish
majority.

"They face increasing threats, intimidations and detentions, often
in KRG (Kurdish regional government) facilities run by Kurdish
intelligence and security forces," the report said. "Such violations
may well be the prelude of a looming crisis in Kirkuk in the coming
months."

While media attention has focused on Baghdad, which accounts for
most of Iraq’s bloodletting, Kirkuk could be lurching towards its
own mini-crisis.

Kirkuk, an ancient city once part of the Ottoman empire, has a large
minority of ethnic Turks as well as Christians, Shias and Sunnis,
Armenians and Assyrians. The city lies just south of the autonomous
Kurdish region stretching across Iraq’s north-east.

Under Iraq’s new constitution, a local referendum is to be held this
year to determine whether Kirkuk should join the Kurdistan regional
confederacy (the united administration of Irbil, Dohuk and Sulaimaniya
provinces). Because of its oil wealth, the Kurds covet the city and
want it to become their regional capital.

It is a prospect that horrifies Turkey, which fears that a strong
Kurdish enclave in northern Iraq with Kirkuk’s oil wealth would
galvanise separatist Kurdish guerrillas in Turkey who have been
fighting since 1984 for autonomy.

Turkey’s prime minister, Recep Tayyip Erdogan, today warned Iraqi
Kurdish groups against trying to seize control of Kirkuk. He said
Turkey would not stand by amid growing ethnic tensions, prompting
accusations of interference by Iraqi Kurds.

The Kurdish coalition bloc in the Iraqi parliament today read a
statement during a session accusing Turkey of interfering in Iraqi
affairs. "As we condemn this interference in Iraqi affairs by the
Turkish government, we call upon the parliament to issue a statement
condemning them as well," the coalition bloc said.

But Mr Erdogan this week reminded the Kurds that Turkey sheltered
more than 500,000 Iraqi Kurdish refugees who escaped Iraq’s ruthless
campaign following a failed Kurdish insurgency in early 1991.

"Turkey did not remain indifferent to the plight of Kurdish peshmergas
who were escaping oppression and death," he said. "Today, it will
not remain indifferent to the Turkmens, Arabs … in Kirkuk."

Military intervention by Turkey, a Nato ally of the US in northern
Iraq, is unlikely, but Ankara could apply economic pressure as
potential oil exports from Kirkuk have to go overland through Turkey.

Today’s UN report said Kirkuk is heavily controlled by security forces
and Kurdish militias – or peshmergas – who exercise to a large degree
effective control of the city. Most senior official positions are
occupied by Kurds or their allies from other ethnic groups.

Under Saddam Hussein, Baghdad imposed an "Arabisation" policy on
Kirkuk, a massive social engineering project that drove many Kurds from
their homes to be replaced by Arabs, mostly Shias from the south. Since
the US invasion of 2003, many Kurds have returned and Turkmen and
Arabs in the city now complain of reverse "ethnic cleansing".

"Even though violence is not on the same level as in Baghdad," the UN
said, "ongoing human rights violations and the surge of violent acts
which have significantly increased since 2003 are widely believed to
be the doing of perpetrators and instigators from inside and outside
Iraq and Kirkuk. Lately and due to the continuing insecurity, ethnic
groups have moved closer to their own communities for protection."

With tension rising in Kirkuk, the referendum is shaping up to be a
key moment for the Kurdish region. The Iraq Study Group, chaired by
former secretary of state James Baker, warned last month in its report
of the "great risk" of the referendum sparking further violence in
Kirkuk and recommended postponing it for a year.

The Kurds would hardly welcome any such delay and might well annex
the city precipitating a crisis with Turkey.

Turkish, Armenian Businesses Demand Border Opening

TURKISH, ARMENIAN BUSINESSES DEMAND BORDER OPENING
By Hasmik Lazarian

Reuters, UK
Jan 16 2007

YEREVAN (Reuters) – The border between Turkey and Armenia has been
shut for 14 years because of a dispute rooted in the centuries-old
suspicions between Muslims and Christians in this remote part of
the world.

But the business communities in both countries pay heed to a different
imperative — making money — and they are telling their political
leaders to put the past behind them.

"I want the borders opened," Turkish businessman Kaan Soyak told
Reuters on the sidelines of a conference in Armenia’s capital at the
weekend that brought together business leaders and officials from
both countries.

"The first problem is the lack of trust. Turks don’t know Armenians
and Armenians don’t know Turks because there is no connection. … We
need more dialogue, more visits."

Turkey and Armenia share a 355-km (220 mile) frontier that snakes
through the Caucasus mountains.

Ankara closed all border crossings and cut diplomatic ties in 1993 to
protest at the seizure by Armenian forces of territory in ex-Soviet
Azerbaijan, Turkey’s historical ally that at the time was fighting
a war with Armenia.

Lurking in the backdrop are Armenian accusations that Turkey carried
out a genocide of 1.5 million Armenians during the last days of the
Ottoman Empire.

Turkey denies there was a genocide, a stance that has complicated
its bid to join the European Union.

These though are not the most immediate concerns for businesses
struggling to operate in this isolated corner.

For Turkey, the closed border means building materials and textiles it
exports to the booming Russian market have to go by road via Georgia
to the north, instead of using the cheaper but now rusting railway
route through Armenia.

Armenia, under virtual blockade because its border with Azerbaijan
to the east is also closed, has to import goods from Turkey by air or
through third countries. And Armenian exports have to go around Turkey.

MOUNTING PRESSURE

"There are two aspects: (opening the border) will make trade with
Turkey cheaper and on the other hand it will open up transit routes
for Armenia to the Mediterranean," said Arsen Kazaryan, an Armenian
businessman.

With no sign of any diplomatic thaw soon between Yerevan and Ankara,
business groups are trying to ratchet up the pressure for the border
to be re-opened.

The conference, at Yerevan’s plushest hotel, was organized by a
U.S.-based think tank and attracted several hundred entrepreneurs,
economists, researchers and officials.

It was supported by the U.S. government. All speakers were in favor
of re-opening the border.

A cross-border business lobby, the Turkish-Armenian Business
Development Council, is spearheading the campaign.

Mayors and regional bosses near the border with Armenia in eastern
Turkey — one of the poorest parts of the country and the area that
would gain most from free trade links — are also pressing Ankara on
the issue.

Soyak, co-chair of the Business Development Council, said opening
the border would mean a flood of Armenian tourists visiting historic
sites in eastern Turkey like Ani, once the capital of a medieval
Armenian kingdom.

"That would mean $100 per day (from each visitor)," he said. "The
eastern part of Turkey doesn’t have that sort of money.

"Unfortunately, the central government in Turkey does not take into
consideration the problems of the eastern part."

In the meantime, people in Turkey and Armenia are not waiting for
the politicians.

Charter flights regularly take Armenian tourists to Turkish holiday
resorts and Turkish businessmen can be seeing cutting deals in hotel
lobbies in Yerevan.

OSCE Odihr Director Hopes That Armenia To Successfully Continue Lega

OSCE ODIHR DIRECTOR HOPES THAT ARMENIA TO SUCCESSFULLY CONTINUE LEGAL AND JUDICIAL REFORMS

Noyan Tapan
Jan 16 2007

YEREVAN, JANUARY 16, NOYAN TAPAN. RA Foreign Minister Vartan Oskanian
received on January 16 Ambassador Christian Shtrohal, the Director
of the OSCE Office for Democratic Institutions and Human Rights,
who is in Yerevan on a two-day visit.

Welcoming the guests, the Minister mentioned that the Armenian
authorities estimate as positive the OSCE ODIHR activity in the process
of development of democracy in Armenia and attached importance to
Mr.Shtrohal’s visit on the threshold of elections.

As Noyan Tapan was informed by the RA Foreign Ministry’s Press and
Information Department, Ambassador Shtrohal emphasized that the goal of
the visit is to discuss the cooperation of the OSCE ODIHR and Armenia
and issues relating to the coming parliamentary elections of Armenia.

Attaching importance to free and just holding of elections, the sides
touched upon the process of improvement of the electoral system in
Armenia, emphasizing the OSCE role in the issue of working out the
Electoral Code in Armenia, re-training of electoral bodies and showing
them expert’s assistance.

The interlocutors expressed a hope that Armenia will successfully
continue the process of making the inner legislation, reforms of
the legal and judicial system corresponding to modern international
standards, which will support complete security of the human rights
protection.

Reference: Christian Shtrohal was born in 1951 in Vienna. He studied
law, economy, international relations in institutions of higher
education of Vienna, London and Geneva. He started his diplomatic
career in 1975. He was the Ambassador of Austria to Luxemburg in
2000-2003, has been the Director of the OSCE Office for Democratic
Institutions and Human Rights since 2003.

Married, has 3 children.

RFE/RL Iran Report – 01/15/2007 2]

RADIO FREE EUROPE/RADIO LIBERTY, PRAGUE, CZECH REPUBLIC
_________________________________________ ______________
RFE/RL Iran Report
vol. 10, issue 2

Monday, January 15, 2007
A weekly review of RFE/RL reporting and analysis about Iran.

REFORMISTS SAY THAT RIGHT DESTINED TO SPLIT

By Vahid Sepehri

Iran — Tehran mayor Mohammad Baqer Qalibaf, undated

Tehran Mayor Mohammad Baqer Qalibaf (in file photo) is regarded by
some as part of a "new fundamentalist current"
(Fars)
January 15, 2007 (RFE/RL) — Iran’s conservatives regularly maintain
that they are united in the broad principles they espouse; just as
regularly, reformists argue that there is a persistent division on the
right. Could the right-wing electoral defeat in December divide
conservatives once and for all?

Iranian conservatives frequently rally around principles that include
the "fundamental" values of Iran’s polity, its Islamic credentials,
and the paramount position of the supreme leader, currently Ayatollah
Ali Khamenei. It is among the reasons they rarely refer to themselves
as "conservatives," but rather "fundamentalists" or sometimes
"principled" or "value-oriented" (arzesh-gara) politicians — to
highlight their concern for certain principles, not just power.

Reformists contend that there is a persistent division between more
radical right-wing forces associated with President Mahmud Ahmadinejad
and his allies, on one hand, and pragmatists or traditionalists
associated with senior clerics like Expediency Council Chairman
Ali-Akbar Hashemi-Rafsanjani, on the other. Signs of that division
include the failure to field a joint presidential candidate in 2005,
and more recently, the existence of two conservative lists in the
December 15 municipal elections.

Reformists say that municipal voting and balloting for the influential
Assembly of Experts, a clerical body that oversees the supreme
leader’s office, marked a repudiation of government radicalism and
support for moderation.

Azar Mansuri, a deputy head of the reformist Islamic Iran
Participation Front, was quoted by ISNA on January 6 saying that
"moderate conservatives clarified their divide with radical
conservatives." She added that a "third current" of pragmatic
conservatism is taking shape, and said recent elections allowed them
to "clarify their frameworks". Mansuri said that when the Ahmadinejad
government came to power in 2005, "this divide in the fundamentalist
faction became clearer [with] every day." She predicted that the rift
would "continue in the future" if some "singular" conduct by radicals
persisted — the latter a presumed reference to presidential tirades
and confrontational discourse, as well as a purported bid by radicals
to take control of all state institutions.

Mohammad Salamati — the secretary-general of the left-leaning,
reformist Islamic Revolution Mojahedin Organization — said according
to ISNA just a few days later that such a "third current" exists and
began to take shape around the 2005 presidential election.

Three Or More…

Commentators tend to leave references to such a "current" general,
rather than identify its personalities or boundaries.

But Salamati speculated that the "third current" would have to form
its own political party — thus formalizing divisions within the
conservative camp. "Contradictions" in the conservative camp are
"essential," he said, "and cannot be resolved easily." Salamati went
on to claim that "the faction known as ‘fundamentalist’ is not
united…and [that] there are at least three political groups in that
current" with each "going its own way" with its own "material and
organizational interests."

Right-wing journalist Masud Dehnamaki warned in statements quoted by
ISNA on January 9 that four broad "currents" could emerge if the
political right fails to unite. He described them as a reformist
front; traditionalist conservatives; what he called a "new
fundamentalist current" associated with Tehran’s mayor, Mohammad Baqer
Qalibaf, and the secretary of the Expediency Council, Mohsen Rezai;
and, finally, supporters of President Ahmadinejad and his
government. He predicted Ahmadinejad supporters would suffer if they
moved away from the conservative mainstream.

Conservatives tried a unified approach in their bid to nominate a
single presidential candidate in 2005 — bringing elders together to
find a consensual candidate. That effort failed amid a flurry of
reports on the existence, nonexistence, or dissolution of various
formal and informal councils of "fundamentalist" elders.

New Election Pressure

The situation could repeat itself as conservatives face the next set
of parliamentary elections. A supporter of one of the more successful
lists in the recent municipal elections, Mujtaba Shakeri, a supporter
of the Great Coalition of Fundamentalists (Etelaf-i bozorg-i
Osulgarayan), has suggested that a conservative list for the
parliamentary elections be formed around that of his
group. Predictably, another prominent conservative, Mariam Behruzi,
was quoted by ILNA on January 8 as cautioning that negotiations on
that topic would have to include all members of a key coalition of
more traditional conservatives: the Front of Followers of the Path of
the Imam and Leadership. Behruzi added that she knew nothing of any
"group called Fundamentalist Trustees" (Motamedin-i Osulgara)
seemingly trying to unite conservatives.

Mohammad Hashemi, the brother of ex-President Hashemi-Rafsanjani and a
member of the centrist Executives of Construction, muddied the waters
further. ISNA reported on January 8 that he conceded that there are
conservative divisions but added that such differences are so abundant
that political life is now characterized by the proliferation of
groups — reformist and conservative — that must inevitably form
electoral coalitions. Hashemi warned that voters are no longer paying
attention to factions or groups but instead are voting for familiar
personalities. He said it is unclear whether conservative divisions
are "fundamental" or "strategic."

A newly elected member of parliament for Tehran, Hasan Ghafurifard,
claimed that several groups — supporters of Tehran Mayor Qalibaf, the
Front of the Followers of the Path of the Imam and Leadership, and
government supporters — are broadly "convergent" but merely disagree
on "specifics," ISNA reported on January 6. Ghafurifard warned against
overstating those differences. He went on to argue that phrases like
"traditionalist right," "leftist," and "traditionalist" are "Western
labels" that are "not in keeping with the realities" of Iranian
politics. He said the labels "fundamentalist and reformist" are simply
"the…most suitable names these factions have chosen for themselves."

Greater Malaise

Divisions within the conservative tent may be due to a larger malaise
over how conservatives can reconcile their vision of Iran with what
Iranian voters want. Reformers sometimes argue that the electorate has
changed since the 1997 election of Mohammad Khatami to the
presidency. The effort to attract voter support might have contributed
to a conservative split: Some conservatives appear to seek the
legitimacy that votes confer, and might regard radicalism and
revolutionary rhetoric as deterring voters. Reformers claim that one
of their ploys is to hide behind appealing titles that blur their
conservative identity — such as "Developers" in the last
parliamentary elections, and more recently the Sweet Scent of Service,
the list associated with Ahmadinejad.

"Fundamentalism, as the supreme leader has explained in this respect,
has specific definitions."

Publicly, there is unity — as stated by Mohammad Nabi Habibi’s
Islamic Coalition Society, which is a member of the Front of Followers
of the Path of the Imam and Leadership. On January 3, according to
ISNA, Habibi denied that younger "fundamentalists" and "the
traditionalist right" are divided. He said that "fundamentalism, as
the Supreme Leader has explained in this respect, has specific
definitions," and went on to claim that he does not know a single
"person or formation that wishes to act outside that framework."

The daily "Etemad-i Melli" on January 11 called Habibi’s Islamic
Coalition the "backbone" of the traditionalist Front of Followers of
the Path of the Imam and Leadership. And the paper noted that the
Front of Followers did not support the pro-Ahmadinejad list in
December’s elections. It speculated that the recent announcement of
unspecified changes in tactics by the party might even herald the
party moving away from the government.

2007/01/4f47cee5-cab8-433a-9d67-1e9a522d2d85.html

U.S. EXPERT PREDICTS OIL-EXPORT CRISIS WITHIN A DECADE

Iran — oil refinery, Lavan Isl, May 04
Iran’s Lavan oil refinery (file photo)
(AFP)

January 12, 2007 (RFE/RL) — Economic geographer Roger Stern has
predicted in a recent study in a U.S. National Academy of Sciences
publication that Iran might run out of oil for export by 2015. Stern,
a researcher at John Hopkins University, spoke with RFE/RL
correspondent Golnaz Esfandiari about what this might mean.

RFE/RL: You’ve said in your study that Iran could run out of oil for
export as soon as eight years from now. How is that possible in a
country that has huge oil reserves?

Roger Stern: It’s a good question, and I must say that my results
surprised even me. But the having of an oil reserve and the getting of
that oil from the ground are very different things. The first is just
an accident of nature, and the second is really an economic
activity. You might recall that the Soviet Union, for example, was
very amply blessed with natural resources yet had great difficulty in
lifting oil in the 1980s. So it’s possible to have a resource and yet
to manage it badly. And the analogy between Iran and the Soviet Union
is pretty strong: Iran has the five-year plans, the state-planned
economy, [and] the very high participation of the state in the
economy, although it’s partially privatized. So it’s those obstacles
that are driving Iranian exports down.

No Longer Overproducing

RFE/RL: What are the signs of this potential crisis and decline in oil
export?

Stern: Iran has, like all other members of the OPEC cartel, a
production quota. Some OPEC members are chronic overproducers — that
is, they cheat — and some can’t ever seem to meet their production
targets. Since the end of the Iran-Iraq War [1980-88], for 90 percent
of the time, Iran has been a "cheater." That is, they overproduce
their OPEC quota by some amount. About two years ago, the amount by
which they exceeded that quota began to fall. And then 19 months ago,
they went under quota; and they’ve been under quota and falling
basically ever since. So it’s a very anomalous situation for
Iran. That’s an indication that something inside the republic has
changed with respect to their oil production.

RFE/RL: You said that this situation is a result of mismanagement of
the oil industry. Could you please elaborate?

Stern: There are three basic components to Iran’s — what I call —
its export crisis. And the first is a failure to reinvest in the
industry. Oil is like any other heavy industry — a maintenance of the
infrastructure is very important. In oil it’s even more important,
because every oil well that’s ever been drilled declines a little bit
from one year to the next. So if you want to keep your production
level, let’s say, you have to find a little bit of new oil via new
well-drilling in order to replace the natural decline of a well.

A man pumping gas in Tehran (Fars file photo)So Iran has failed to do
this, and it’s failed for a couple of reasons: It’s very hostile to
foreign firms working in the country; and secondly, the state oil
company in Iran doesn’t have control of its own revenues. A second big
category of problems are the demand subsidies within Iran. Fuel is
very cheap; I think a liter of fuel in Iran is nine U.S. cents
($0.09). So, as a result, demand is exploding. So you could say that
Iran is burning the candle at both ends — it’s both producing less
and less, and it’s consuming more and more.

Policy Options?

RFE/RL: You’ve predicted that as a result of these two trends, Iran
will run out of oil for export in just eight years. What if Iran
changes its policies?

Stern: Iran could change its policies and reduce its subsidies and
begin to reinvest and change that projection that I make, but the
trend that they’re on looks like [by] 2015 — that exports could go to
zero by that time. Iran is its own worst enemy in this petroleum
crisis, and it could change its mind. But it’s had 20 years since the
[1979 Islamic] revolution to do that and its behavior now is
consistent with that over the last 20 years, so I don’t anticipate a
change in policy.

RFE/RL: Could that mean that Iran is really in need of energy and that
it has a genuine and legitimate reason to pursue a nuclear program, as
Iranian officials have said many times?

Stern: I would say that within the distorted economic logic that
prevails in Iran, there is a legitimate need — but only because the
Russians are basically financing the nuclear reactor for Iran by
selling this reactor at a very, very cheap price. If normal economic
reasoning applied in Iran, what Iran would do to generate more
electric power would be to modernize its gas-turban generation
base. Most of Iran’s electric power comes from gas generation, a
little bit from oil, and a very small bit from hydro[-electric
power]. But Iran has the same reinvestment problems in power
generation as it does in oil — that is, the product is subsidized, so
the power generation firms can’t make money so they’re not
reinvesting. So here comes Russia willing to sell Iran a nuclear
reactor at maybe one-fourth [of] the world price. So with no other,
better alternative, that is an appealing alternative to Iran. It
doesn’t mean, nor do I believe, that Iran does not have an intention
to develop nuclear weapons.

Room For Maneuver

RFE/RL: What does this mean for the U.S. and other countries that are
putting pressure on Iran over its sensitive nuclear activities?

Stern: If exports decline as I project, and if price fails to rise to
compensate for the decline in the quantity that can be exported, then
that would — in my opinion — be a real political constraint on the
regime, whose popularity is really quite dependent on the distribution
of these monopoly oil profits that the state oil firm collects. Iran’s
government relies on oil exports for somewhere between 70 and 80
percent of its revenues, so this a real problem.

RFE/RL: Some Iranian officials have in the past said Tehran could use
oil as a weapon in case of increasing international pressure over the
country’s nuclear program. How do you see that?

Stern: I think that that’s laughable. If your government relies on oil
export for 80 percent of it revenue, by cutting off oil to the world,
basically the regime would be cutting its own throat. Iran exports a
little under 2 1/2 million barrels [of oil] a day; the world consumes
85 million barrels. So while the disappearance of that amount of oil
would definitely have an impact on price, the world would not stop, it
would simply pay a higher price; Iran’s government would stop.

01/dc93e2c3-0923-4575-84e9-808c49eeb513.html

FORMER OFFICIALS, REFORMISTS CRITICIZE NUCLEAR POLICY

By Golnaz Esfandiari

Iran — logo of Iran’s Islamic Mosharekat party- a leading Iran
reformist party The logo of Mosharekat, Iran’s largest reformist party
(courtesy photo)

January 10, 2007 (RFE/RL) — Despite last month’s UN Security Council
resolution imposing limited sanctions on Iran over its controversial
nuclear program, the country’s leaders say they will continue their
nuclear work with great determination. At the same time, a growing
number of voices inside Iran are calling for a change in Iran’s
nuclear policy.

Iranian Supreme Leader Ayatollah Khamenei, during a speech in Tehran
on January 8, described Iran’s nuclear program as a "native
achievement" and "a source of pride" for Iran and the Islamic world.
"It is expected that the international and domestic pressure will
increase on Tehran as the two-month UN deadline for Iran to curb its
nuclear activities draws closer."

‘Indisputable Right’

"[The Iranian nation] will not abandon its right and the country’s
officials have no right to deprive the nation of its right," he said.

His comments came some three weeks after the adoption of a UN
resolution that put sanctions on Iran in an attempt to get Tehran to
curb its nuclear program.

Iranian officials have rejected the resolution as "illegal" and said
that they will continue their nuclear program with speed and
determination.

Officials have also dismissed UN Security Council sanctions as
insignificant and said they will not affect Tehran’s nuclear
activities.

Parliament Concerned

Four days after the adoption of the UN resolution, the Iranian
parliament passed an urgent bill that obliges the government to
"review its relations with the UN nuclear energy agency."

Parliament speaker Gholam Ali Hadad Adel said Iran should react to the
international pressure.

"The parliament warns the government not to limit the country’s
authority in the framework of the [IAEA] and show a proportionate and
timely reaction to the pressure on Iran," he said.

Parliament speaker Gholam Ali Hadad Adel (Fars file photo)But there is
also growing concern about the costs of Iran’s defiance and what is
termed as the inefficiency of the official stances. In recent weeks a
number of former officials have warned that the UN’s December 23
resolution could result in economic sanctions that could severely
affect Iran’s economy.

The Security Council has given Iran a two-month deadline to suspend
its uranium-enrichment program or face tougher measures. So far there
are no signs that Tehran will comply.

Unhappy Reformers

On January 3 Hossein Moussavian, a former member of Iran’s nuclear
negotiating team, called for renewed diplomacy in the nuclear
standoff. Moussavian said Iran has no choice but to return to the
negotiating table.

Reformist legislators have also spoken out and blamed President Mahmud
Ahmadinejad’s government for failing to prevent UN sanctions and
causing tensions by organizing a Holocaust conference.

Iran’s largest reformist party — the Islamic Iran Participation
Front, or Mosharekat — has also voiced similar concerns. The party
last week called for a return to the nuclear policy followed by the
previous reformist government in order to prevent a further
deterioration of the nuclear crisis.

Mosharekat said Iran should return to international negotiations,
create trust in its nuclear program, and refrain from what it called
"adventurist" policies. It also said Tehran should talk to all UN
Security Council permanent members, including the United States, over
the nuclear issue.

Others, including a group of religious nationalist activists, have
also publicly criticized the country’s nuclear policy.

Focus Is Only On Nuclear Issue

The group — which includes several former government officials —
said in a recent statement that Tehran’s "vain" persistence on the
right to have a nuclear program has damaged the country. The statement
added that Iran has other rights — including human rights and the
right to development and welfare — that are being ignored.

Iranian officials often described the nuclear program as the country’s
most important issue and "Nuclear Energy is our indisputable right"
has become a major catch phrase of the government.

Ali Akbar Moinfar, a former oil minister and a signatory to the
statement, told Radio Farda on December 25 that officials should give
up "slogans" and act wisely.

"Unfortunately foreign countries and also inside the country, everyone
has focused on the nuclear issue," Moinfar said. "It seems that
people’s real issues have been forgotten. Human rights are the most
important thing for the people of Iran. Our main point is that
people’s] rights should be officially recognized and [respected]."

Observers believe the growing criticism is unlikely to have an
immediate impact on the country’s decision makers.

More Than A Scrap?

On January 9 the conservative daily "Joumhuri Eslami" said in an
editorial that those who have criticized the country’s current nuclear
policies and called for a return to past policies do not realize that
they are giving a lever to "foreigners" who think they can make Iran
back down by passing a resolution.

The daily acknowledged that the UN resolution is damaging for Iran,
adding that it should neither be exaggerated nor called "a piece of
scrap" in an indirect reference to comments made by Ahmadinejad.

The daily, which is said to reflect the views of Iran’s supreme
leader, also openly criticized Ahmadinejad’s rhetoric on the nuclear
issue and advised him not to comment on it during his provincial trips
and to leave such commenting to those who are in charge of the case.

Gholamreza Aqazadeh, the head of Iran’s Atomic Energy Organization,
said last week that Iran will continue its cooperation with the
IAEA. But he said a committee with Iran’s National Security Council is
reviewing ties with the IAEA.

Meanwhile, it is expected that the international and domestic pressure
will increase on Tehran as the two-month UN deadline for Iran to curb
its nuclear activities draws closer.

For example, on January 9 the United States banned all transactions
with a major Iranian bank, Bank Sepah, because Washington said the
bank has actively supported Iran’s ballistic-missile program.

(Radio Farda broadcaster Mossadegh Katouzian contributed to this
report.)

e/2007/01/c1ddb942-8e8d-4b7e-aa41-5d7139c27a68.htm l

POWER CUTS IN AN ENERGY-RICH LAND SPARK PROTESTS

By Vahid Sepehri

Iran — snow in Tehran, 23Dec2006
Snow in Tehran on January 1
(Fars)

January 10, 2007 (RFE/RL) — Despite its wealth of oil and natural-gas
reserves, Iran has faced a gas crunch as people turn up the heat this
winter.

Partial or total energy cutoffs were reported in 11 provinces, with
residents of colder western provinces worst affected, and exports to
Turkey were suspended for five days.

The National Iranian Gas Company issued a statement on January 2
warning of shortages and asking Iranians — including Tehran residents
— to moderate their consumption or face cuts.

There are energy shortages in 11 provinces, with partial or total cuts
that include Kurdistan in western Iran, the northwestern Zanjan
Province, and the provinces of East and West Azerbaijan.

Lawmaker Fakhredin Heidari asked President Ahmadinejad whether he
would respond similarly if it were his family and that of the oil
minister spending nights in the cold.

Officials have blamed rising consumption and delays in unspecified
projects for the shortages. Deputy Oil Minister Hasan Kasai told ILNA
on January 1 that gas consumption rose by 45 percent over last winter.

Authorities have in the past lamented Iranians’ wasteful use of
natural gas, electricity, gasoline, and water. And some have blamed
the problem on state subsidies that keep those prices low.

Iran also suspended natural-gas exports completely to Turkey on
January 3-7, after determining that its 40-day reduction was not
enough, Radio Farda and AFP reported.

Iran signed a deal in 1996 to supply up to 10 billion cubic meters of
gas a year to Turkey by 2007. Turkey has been receiving natural gas
since 2001 through a pipeline running from Tabriz in northwestern Iran
to Ankara.

Public Anger

In western Iran, the energy cuts led to protests. In Saqqez, in
Kurdistan Province, residents gathered outside the district governor’s
office on January 4 to protest eight days without sufficient gas
supplies.

>From there, some 200 protesters went to the city council, then to the
town’s central square, by which time they numbered about 1,000,
according to advarnews.com. Protesters demanded that the government
resolve such fundamental problems instead of attending to its
high-profile nuclear program.

Fakhredin Heidari, the parliamentary representative for Saqqez and
Baneh, wrote to President Mahmud Ahmadinejad on January 3 to complain
about the situation.

Heidari reminded Ahmadinejad that on his last visit to Saqqez, the
president responded to public outcry by promising that shortages would
not happen again "this year." The lawmaker recounted the death of a
family of five due to a faulty heater that they were forced to use
because of a lack of gas.

Heidari asked whether Ahmadinejad would respond similarly if it were
his family and that of the oil minister who had to spend the night in
the cold.

He also accused gas authorities of "giving away" natural gas to states
who side with Iran’s opponents in the nuclear standoff, leaving none
for Iranians.

About Fairness

Heidari struck a note that the president himself has played in many of
his speeches since taking office 1 1/2 years ago — that of social
justice. The lawmaker questioned the justice of a situation in which
"the negligence of some officials" leaves Saddez residents "shivering
in the cold" or burning to death in their homes.

Iranian Oil Minister Kazem Vaziri-Hamaneh (Fars file photo)Lawmaker
Amin Shabani, from Sanandaj in Kurdistan Province, argued on January 5
that Oil Minister Kazem Vaziri-Hamaneh should be questioned in
parliament if the gas shortages continue — particularly in the
country’s colder western provinces. He said many western areas had
experienced weeks of gas shortages or cutoffs.

Shabani said that such areas are living "entirely the opposite" of
Ahmadinejad’s reported campaign pledge to bring "oil to the people’s
tables" and oil wealth into Iranian homes. He said gas exports should
be cut until domestic needs are met. He invited Vaziri-Hamaneh to
visit Kurdistan "one day" and — in his words — "feel the cold…and
properly answer how helpless people are to live" in near-freezing
temperatures without gas, gasoline, or oil.

The crisis appears to have eased for now. Shabani said recently that
there are currently sufficient supplies for the city of Sanandaj, and
intermittent but less severe cuts in Saqqez and Baneh, according to
ILNA on January 8.

But Shabani also warned ominously of a "100-percent possibility that
with another cold wave, people in cold regions will face a fuel
crisis."

He accused the oil minister of fulfilling just half of his pledges to
help avoid fuel shortages.

Shabani also took up the challenge to the Ahmadinejad administration,
saying the public expected a government that "takes pride
in…understanding issues close-up to have traveled to the region" as
the crisis unfolded, ILNA reported.

07/01/f3e4fa38-88f4-4b8a-87da-a2f5d76b457e.html

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Turkey-Georgia-Azerbaijan Railway To Be Built

TURKEY-GEORGIA-AZERBAIJAN RAILWAY TO BE BUILT

Interfax
Sunday, January 14, 2007

January 13, 2007 –Azerbaijan, Georgia, and Turkey have reportedly
agreed on the details of a project to lay a rail line from Turkey to
Azerbaijan via Georgia.

The Interfax news agency quotes Georgian Economic Development Minister
Giorgi Arveladze as saying the agreement was reached today in Tbilisi.

Such a rail link avoids Armenia, which lies between Turkey and
Azerbaijan. Neither Turkey nor Azerbaijan have relations with Armenia
due to their dispute over Nagorno-Karabakh, which is in Azerbaijan
but is occupied by Armenians.

The new line is expected to be operational in two to three years.

Owner of Nissan Pathfinder, top prize of the Armentel SMS-game found

Mediamax News Agency, Armenia
Jan 12 2007

Owner of the Nissan Pathfinder, the top prize of the SMS-game
organized by `ArmenTel’ Company, determined

Yerevan, January 12 /Mediamax/. Resident of town Gavar (Gegharkunik
marz), the owner of the `Gavartrans’ Ltd. Arshak Gulabian became the
owner of the Nissan Pathfinder car – the top prize of the `Treasure
Hunters’ SMS-game, organized by the `ArmenTel’ Company.

Mediamax reports that the casting of lots took place in Yerevan today
at the presence of the journalists.

The Director of the Marketing Department of `ArmenTel’ Armen Simonian
stated that the SMS-game is held jointly with the Greek Velti
Company, which specializes in the sphere of technical support of the
SMS-actions.

Besides the car, there were also TV-sets and DVD-players ruffled
during the `Treasure Hunters’ game. The list of the winners will be
published on the website.

www.smsplus.am

NKR will return the Azeri soldier on January 16

NKR will return the Azeri soldier on January 16

ArmRadio.am
13.01.2007 14:21

On January 16 NKR will return Azerbaijani servicemen Eldaniz Nuriev to
the Azeri side. The later had crossed the border on December 31,
2006. Viktor Kocharyyan, Head of the State Commission on Captives of
War and Missing Persons, told `Armenpress’ that the International
Committee of the Red Cross is engaged in the issue of the captive’s
return. Let us remind that Nuriev explained his step with the fact
that he was oppressed in the Azeri Army, and he no more wished to
serve in the Armed Forces of Azerbaijan. Nevertheless, the captive
expressed will to return to Azerbaijan and his return has been
organized with the the agreement of both sides.

It’s worth mentioning that Nuriev was the second Azeri soldier to
cross the Armenian-Azerbaijani border.

German Communist Party disowns Armenian Genocide denier

German Communist Party disowns Armenian Genocide denier

ArmRadio.am
12.01.2007 11:35

Germany’s ‘Die Linke’ party (ex-PDS), during its Congress sharply
criticized one of its leading members, Hakki Keskin, for denying the
Armenian Genocide.

The comments by Mr. Keskin, the former president of the German Turkish
Central Council, generated outrage within his party and drew
condemnations from Conservatives, Socialists and even German Greens.

In order to distance itself from Keskin’s denials – and restore its
standing as a party dedicated to human rights – the leftist party led
by Oskar Lafontaine and Grygor Gysi published a press release
reaffirming, for the record, that "the fact of the Armenian people’s
extermination [by the Turkish Ottoman government] is not a subject to
be questioned" and that "the resolution adopted by the Bundestag in
2005 concerning this issue constitutes the basis of the Die Linke
party’s position."

Despite this clear renunciation, Mr. Keskin said that he continues to
deny this crime against humanity. He then associated himself with Bodo
Ramelow, the vice-president of the Die Linke party, who believes that,
rather than focusing on the Armenian Genocide, it would be better to
draw attention to the Turkish population’s suffering during the World
War I. "The European Armenian Federation is pleased that the Die
Linke party, in affirming its official position, has returned to the
mainstream view among German political parties condemning Turkey’s
denial of the Armenian Genocide," said Laurent Leylekian, the
Executive Director of the European Armenian Federation.

"We remain troubled by the attempts – very common among deniers – at
an artificial even-handedness that would equate the suffering of all
populations during World War I – including the people of Turkey ` with
Ottoman Turkey’s planned, systematic, and brutal campaign to destroy
its Armenian population," added Leylekian.

The European Armenian Federation welcomes the vigilance of Germany’s
civil society – and particularly the German Armenians Central Council
` in monitoring and challenging genocide denial. Thanks to their
action, the Die Linke party ended the abuse of their good name by
genocide deniers and returned to their traditional support for justice
and moral public policy.

BAKU: Azerbaijan may hit back against Russia’s reneging on gas contr

AZERBAIJAN MAY HIT BACK AGAINST RUSSIA’S RENEGING ON GAS CONTRACTS

Day.az Azerbaijan
30 Dec 2006

Russia’s policy on gas and electricity supplies has more to do with
political than economic considerations and is causing concern not
only among countries of the former USSR but also the European Union,
an Azerbaijani website has said. There is an increasing danger that
Russia might try to take control of all the gas pipelines of its
former states and become a monopoly, thus broadening its political
influence. Azerbaijani President Ilham Aliyev has accused Russia of
reneging on its gas contracts, but, the website suggests, Russia’s
own initiatives may backfire on them if Azerbaijan decides to reduce
its oil supplies and review its policy over Russian TV channels
operating in the country. The following is the text of the report
by Emil Quliyev headlined "Russia Year in Azerbaijan has ended,
Anti-Russia Year has begun", published on the Day.az website on 30
December; subheadings have been inserted editorially:

Russia’s gas policy causing concern

The year 2006 is drawing to its conclusion, but at the same time, it
is not the calendar year but the declared Russia Year in Azerbaijan
that has come to an end. But what has been happening points to the
fact that 2007 could be Anti-Russia Year. And this is exactly what
might happen not just in Azerbaijan, but in many CIS countries. The
New Year begins next week, but Russia has still not been able to reach
an arrangement, or in other words, "break down" Belarus, Georgia and
Azerbaijan over the new prices for gas supplies.

Russia’s current policy in the sphere of energy supplies based
on world demands is having less than ever to do with economic
considerations. This question is becoming so topical that even the
countries of the European Union are beginning to consider taking
counter-measures over the Kremlin’s policy, and the Council of Europe
is prepared to begin discussions making it inadmissible to manipulate
energy supplies for political purposes.

However, Russia itself is making every effort to try to persuade
everyone that their new gas price policy has nothing to do with
politics, and that it is exclusively out of economic considerations.
It is on record that the price of Russian gas for 2007 for most of
the republics of the former USSR is based on the average price for
all Gazprom’s European contracts and also taking account of transport
costs. But the statements they are coming out will paint the opposite
picture, and the question of gas supplies is turning into a weapon
in the hands of Russian politicians who want to take the CIS under
their full control.

Relations with Belarus and Georgia

One has only to note that the rise in the price of gas for Russia’s
friend Belarus is, first and foremost, connected with the fact that
they are refusing to hand over control over 50 per cent of the shares
of the Belarussian monopoly gas operator Beltransgaz to Russia’s
Gazprom. Russia wants to receive shares in the Belarussian gas operator
as partial payment for gas in 2007-2010. But in the case with Georgia
there are more than enough political reasons for raising the price
for gas. Apart from the tense relations between the two countries,
Georgia, to the "surprise" of official Moscow, is refusing to give back
to Russia control over the trunk gas pipeline linking it with Armenia.

In this event Gazprom would have direct access to the "southern"
gates and would be able to supply crude to Iran or Turkey. But as far
as Armenia is concerned, apart from the fact that Russia controls
almost all the strategic facilities in this country, as well as
the electricity supply system, over 60 per cent of the Armenian
gas transportation system the HayRusgazard [ArmRosgazprom] closed
joint-stock company also belongs to Russia.

The main thing is that if the plans regarding Belarus, Georgia and
Azerbaijan go ahead, Russia would be able to take control of almost
all the gas pipelines on the territory of the former USSR and become a
monopoly in this sphere over the vast territory of the former Soviet
Union. As a result Russia could have a reliable lever of pressure on
these countries in political matters.

Russia reneges on contracts

The Kremlin might bring this lever into play at any moment to achieve
its political objectives and have no qualms about not fulfilling any of
the obligations it has undertaken. Everyone knows how easily Russia can
renege on its existing treaties and contracts. The clearest example
of this was quoted in an interview that the Azerbaijani President
Ilham Aliyev gave to the Ekho Moskvy radio station.

"A five-year contract was signed with Gazprom for a fixed price, if I
am not mistaken, of 55 or 60 dollars for 1,000 cubic metres. But last
year Gazprom cancelled this contract unilaterally. In other words,
they made it clear that they would not be supplying at this price,
but would supply at 110 dollars. We agreed, although this was a bit
odd. Still, this was an international commitment of a major company
for a five-year term.

"In 1994 we signed the contract of the century with foreign [oil]
companies, and not a comma in it was changed, although today, perhaps,
we would think twice about it given the current situation and the fact
that Azerbaijan has grown in strength. We believe that trust needs to
be gained over years but it can be lost by one false step. Clearly,
this sort of approach does not exist everywhere," the Azerbaijani
president believes.

Although during the interview Aliyev, observing political etiquette,
did not turn on Russia and say that its unilateral breach of contracts
treaties was an indication of that country’s "reliability" as a
partner, in this context it seems surprising when Russia starts
complaining and then puts pressure on the CIS countries who are
altering their foreign policy priorities by turning towards the West.

There was another example ahead of the above interview with the
Azerbaijani president. Without giving any economic reasons and in
breach of the contract, Russia suspended gas supplies to Georgia
in retaliation at the arrest of its officers who were carrying out
intelligence work in that country and followed this by switching
off its electricity supplies. But the story a little earlier about
the ban on the import of Borzhomi [mineral water] and wines from a
country which changed its political priorities for objective reasons
shows clearly that these sanctions had nothing to do with economic
considerations, but were a mirror image of the political views from
the Kremlin.

And now from Georgian problems to our own. We will go on repeating
the report that apart from increasing the price for gas it has
already supplied, Russia has decided to reduce the volumes of "blue
fuel" and electricity. But why? Again, without any economic reasons
whatsoever. It is simply that Russia has not forgiven Azerbaijan for
the fact that official Baku did not betray its neighbour and strategic
partner in the South Caucasus and, by not supporting Russian sanctions
against Georgia, carried on supplying gas and electricity after the
Kremlin’s aforementioned steps.

Now, as Russia is maliciously rubbing its hands, anticipating Georgia
freezing this winter and an unhappy people rebelling against their
president, they know that with the previous volumes of gas and
electricity supplies to Azerbaijan, some of it will come the way of
Georgians "loved" by Moscow.

Russia may lose markets

Well, unlike Belarus and Georgia, Azerbaijan does have an answer for
them. Quite handily Baku remembered the loss-making Baku-Novorossiysk
oil pipeline and, of course, a reduction in oil volumes through this
pipe would be a logical response. And the prospect of a refusal of
Russian gas also looks convincing. On its own initiative Russia is
faced with a loss of markets. Perhaps, from the economic standpoint,
this is not such a big loss for a country which supplies gas to such
a huge market as Europe, but from the geopolitical point of view,
the losses are considerable.

In response to such behaviour by Moscow, Baku needs little reminding
that two Russian television channels are broadcasting on national
frequencies virtually free of charge. This is an unprecedented
occurrence, you have to agree, because you will not find another
country in the world where foreign television channels broadcast
on national frequencies. It should also be noted that the Russia’s
Channel One, which broadcasts to Azerbaijan, is not the original but
a poor copy of the one the Russians themselves see. In other words,
the Azerbaijani viewer is being stuffed with selected programmes
which Russian minds consider it necessary to be shown in our country.

At the same time, as a sign of gratitude, in the news broadcasts
of these channels the separatist regime on the occupied Azerbaijani
territories of Nagornyy Karabakh is referred to from time to time as
a legitimate state structure. Suffice to recall Russian TV channel
coverage of the celebrations by Armenian separatists of the so-called
holiday of the acquisition of sovereignty.

It will be recalled that at that time the Russian embassy in
Azerbaijan said that this was the internal affair of the television
channel. However, for some reason the Russian ambassador does not
regard the question of the closure of the Russian TV channels as the
internal affair of the TV channel and Azerbaijan, and immediately
comments on this from the point of view of an inter-state treaty.

TV contract with Russia may be reviewed

The Azerbaijani National Television and Radio Council has already
adopted a decision on the Russian television channels and has said
that Azerbaijani viewers will still be able to see them at least until
July. The chairman of the council, Nusiravan Maharramli, explained
that this decision was governed by a contract, according to which the
opposite side must be given six months’ notice about the suspension
of broadcasting of TV channels. However, one cannot understand why
one should stick to agreements in relations with a country which does
not observe treaties and has cancelled them unilaterally.

But in any event, by its latest moves Azerbaijan has shown that its
northern neighbour is not so terrifying as it seems or seemed a few
years ago, and if this matter is approached properly the provocations
coming out of the Kremlin can be neutralized.