Kurdistan: The Other Iraq

KURDISTAN: THE OTHER IRAQ
By Anna Fifield

FT
November 11 2008 20:08

On the march: Kurd peshmerga forces bearing Iraqi and Kurdish flags

Inside Kurdistan

In one of the oldest tea houses in Irbil, a cavernous room of hissing
kettles that spills into the spice and shampoo shops of the souq, Ali
and his friend Mohammad personify the Kurdish dilemma. Ali, a Kurd with
a plush moustache dressed in the region’s traditional baggy open suit,
sits on a bench drinking tea with Mohammad, an Arab electrical goods
merchant who has driven from Baghdad in search of cheaper supplies.

Audio slideshow: The Kurdish share their stories and concerns with
the FT’s Anna Fifield

"Kirkuk is Kurdish – the population is Kurdish, so Kirkuk is Kurdish,"
says Ali, referring to the oil-rich city that lies just outside the
northern Iraqi province but was historically part of Kurdistan.

Asked his opinion, Mohammad looks around warily as the half-dozen
tea-drinking Kurds stop their conservations to listen in and simply
says: "I think our leaders know better than I do."

This diplomatic answer belies the potential of Kirkuk to become the
next big flashpoint in Iraq. For while sectarian violence has dropped
sharply this year, stemming the slide into civil war and relieving
pressure on the US military, the dispute over Kirkuk underlines
the fragility of the country and the challenge that Barack Obama,
the president-elect, will face in Iraq.

Below: A long search for statehood

Whether Mr Obama will be able to fulfil his campaign promise of
bringing US troops home within 16 months of taking office will partly
depend on what happens in the oil-rich city – and therefore on the
ability of the US to mediate a lasting compromise over Kirkuk’s status.

Below: Tehran strengthens economic ties

But tensions are rising over whether the city belongs in the
semi-autonomous Kurdish region or in Iraq proper. "For many Kurds,
it has become a rallying point for an autonomous Kurdistan and for
the rights of Kurdish people inside Iraq. And for many Arabs, it has
become a rallying cry for the unity of the country," says a senior
US official in Baghdad. "The challenge is to get both sides to calm
down and have a rational discussion."

This will become a pressing foreign policy concern for the next US
administration not just because the Kirkuk dispute has the potential
to pit Arab against Kurd and provoke intervention from neighbouring
states. It could also harm Washington’s relations with its closest
allies in Iraq – the Kurdish authorities.

AMERICAN PRESENCE:

Battle against time over forces’ status

The outgoing US administration of President George W.â~@~IBush is
in a fight against time to agree a "status of forces" agreement with
Iraq to set out new rules for American troops in the country and lay
out a timetable for drawing down their numbers, writes Daniel Dombey.

According to recent drafts under negotiation, US combat troops
would leave Iraqi cities by mid-2009 and exit Iraq altogether in
2011. The Bush administration insists that such a schedule should be
"conditions-based" rather than setting dates in stone.

Washington had wanted to conclude the deal in July. If the two sides
fail to reach agreement by the end of this month, the US could be
forced to look instead for a renewed United Nations authorisation
for the troops it has present in the country. The current UN mandate
expires on December 31.

But the context has changed following last week’s US presidential
election, with many Iraqi officials expressing sympathy with US
Democratic demands for a speedier drawdown.

Barack Obama, the US president-elect, campaigned on the promise that
he would pull out combat troops from Iraq over 16 months. But he has
emphasised he would consult his military commanders over the process.

Mr Obama has also allowed himself wriggle room by stressing that a
"residual" force would remain in Iraq even after the 16-month drawdown
is complete.

John Podesta, the co-chair of his presidential transition team,
said at the weekend that such a residual force would be needed to
carry out duties including counter-terrorism missions and training –
activities that could leave many thousands of troops in the country.

Any agreement needs backing within the Iraqi government as well as
in the Baghdad parliament. Democrats in the US Congress have also
called for a vote on the matter.

Kirkuk, together with other nearby oil towns, was "Arabised" by Saddam
Hussein, who forced Kurds to leave and moved in Arabs from Iraq’s
south in an effort to change the demographics. Now Kurdistan, whose
people were killed by the thousands under Saddam, wants the cities
back. "For us it’s not about the oil – the oil revenue will go back to
the Iraqi people – it’s symbolic, it’s about the injustices that have
been done to us," says Fuad Hussein, chief of staff to Masoud Barzani,
the Kurdish president. "When we think about the situation of Kirkuk,
we all feel Kirkuki."

Kurdistan, a fertile, rocky region where Iraq meets Iran and Turkey,
already has several big oil deposits but several more lie just
outside its current borders. The Kirkuk field is thought to have a
production capacity of about 1m barrels a day. Under the constitution’s
revenue-sharing formula, Kurdistan receives 17 per cent of all Iraqi
oil revenue, but many Kurds think their economy deserves more. Some
Arab politicians, meanwhile, are calling for the Kurds’ share to be
reduced to 12 per cent.

The Kurdistan regional government is pushing for a vote to allow
Kirkuk residents to decide whether they become part of the northern
region. But the disputed territory has become so sensitive that
Kirkuk will be excluded from nationwide provincial polls due to be
held before January 31 as an Iraqi parliamentary commission examines
the demographic changes that have taken place there. It is due to
report back by March.

Rochdi Younsi, Middle East analyst at the Eurasia Group think-tank,
says the electoral delay benefits the Kurds, who will retain
control over the disputed areas during the deadlock. "Unless there
is a concrete international effort to address the Kirkuk question,
the risk of instability in the northern part of Iraq will heighten
and the dispute among various sectarian groups claiming historical
ownership of the city will erupt again," Mr Younsi wrote recently.

The disputes have stoked ethnic tensions in northern Iraq. Kurdish
troops, known as peshmerga, have reportedly moved beyond the boundaries
of the Kurdistan region and into ethnically mixed areas, erecting
Kurdish flags at checkpoints in acts that worry Arab residents of
these areas.

Some diplomats in Irbil question suggestions of any land grab, saying
peshmerga have been patrolling outside the region’s boundaries for some
time. Mr Hussein, the president’s aide, says that Kurds simply serve
in the national security forces. He characterises the common view as:
"When a Kurd is in the police, he is a peshmerga, but when an Arab
is there, he is an Iraqi soldier."

The United Nations has suggested giving 32 per cent of the Kirkuk
council to Arabs, Kurds, and Turkmen, leaving 4 per cent for
Christians. Kurdish factions would also get the first pick for
governor, deputy governor, and head of the provincial council.

But Kurds oppose any power-sharing arrangement that would not
reflect what they believe is their majority. Kurdish officials are
acutely aware of the issue’s potential to explode. "We have made
a lot of concessions for the sake of greater Iraq but now, instead
of supporting us, some people are trying to blame the Kurds for the
problem remaining unsolved," says Falah Mustafa, head of the department
of foreign relations.

Kurdish leaders have long held up their region as a role model
for the rest of Iraq. It has functioning democratic institutions,
the government is relatively secular and its economy is ticking
over. Irbil became a partner in the US-backed central government in
Baghdad following the 2003 invasion of Iraq – the national president,
Jalal Talabani, is Kurdish – and the US wanted to champion Kurdistan as
an example of how democracy could be made to work in the Middle East.

But, five years after the invasion, Kurds are feeling short-changed
by the Bush administration, which they say has not sufficiently
rewarded them for their support. "They have done nothing for us,"
says one senior Kurdish official, calling for Washington to encourage
American companies to invest. "We are the success story of the US in
Iraq. All of Iraq could be like us."

Washington cites a lack of democratic development and endemic
corruption as threats for the future of Kurdistan. "A lot of
people in Baghdad are looking at Kurdistan not as a model for the
future but for the mistakes they have to avoid," says one senior
American official in Baghdad. The Kurds, he adds, are "without a
doubtâ~@~I.â~@~I.â~@~I.â~@~I in the best position in their history. The
big question among Kurds right now is, what next for us?"

Massoud Barzani (left) with Jalal Talabani

The way that Irbil exercised its authority in Kirkuk has not been
encouraging. Analysts say that the Kurdish government was given an
opportunity to prove its ability to govern when the US in effect
handed them control of the city in 2003. But the Kurdish authorities
sidelined the Arab and Turkmen minorities rather than bringing them
into the fold.

The extent of corruption has undermined confidence in the Kurdish
parties ruling the north. Ordinary Kurds privately complain that, to
succeed, they must belong to one of the "two circles" – that revolving
around the Talabani family and their Patriotic Union of Kurdistan, or
that associated with the Barzanis and the Kurdistan Democratic party.

The two families largely control business and politics in the region,
offering preferential treatment for their relatives and allies. "Some
people are living the high life but other people are so desperate,"
Ali says in the tea shop. "Kurds don’t like it but what can we do
about it?"

So sensitive has the issue become, even foreigners know where the red
lines are. One British businessman working in Irbil becomes visibly
angry when asked about corruption. "Why do you ask such questions?" he
asks, his voice rising several decibels. "These kinds of questions
can create a lot of problems for us."

The government says it will introduce laws and educational programmes
to tackle the problem. But Karam Rahim, editor of Hawlati, the region’s
biggest independent paper, suggests the US could have an influence when
provincial and regional parliamentary elections are due to be held.

"We thought that the Americans would make our government more
democratic and more transparent," says Mr Rahim. "The US must choose
between two options – they can support Talabani and Barzani, or they
can support the Kurdish people."

TEHRAN STRENGTHENS ECONOMIC TIES

By backing Shia groups, Iran has long exerted influence over Iraqi
politics.

But the parties of Iraqi Kurdistan have also been allies of Tehran,
whose reach is growing. "There is a lot of concern about Iran and
Iran’s interests in Kurdistan," says one US official.

Of the $7bn (£4.5bn, â~B¬5.6bn) in goods that Iran sent to Iraq
last year, about $1.2bn-worth was destined for Kurdistan, according
to Iran’s Fars News Agency. The figure is projected to rise to $3bn
this year. Two of the three transit routes between Iran and Iraq are
in Iraqi Kurdistan. Flights between Irbil and Urumia, capital of the
Iranian province of Western Azerbaijan, are set to begin soon.

The US accuses Tehran of sending arms into Iraq, which Iran
denies. Kurdish officials say they welcome the right involvement. "If
they can help the people of Iraq, then that’s one issue," says Falah
Mustafa, head of the department for foreign relations. "But if they
meddle in Iraqi affairs, we don’t believe that is in keeping with
our policies of non-interference."

A LONG SEARCH FOR STATEHOOD

â-~O An estimated 15m to 20m Kurds, a largely Sunni Muslim people,
live in the area straddling Iraq, Iran, Syria, Turkey and Armenia.

â-~O Iraqi Kurdistan – slightly larger than the Netherlands and with
a population of 4m – enjoys relative economic stability, helped by
investment in construction and oil.

â-~O Saddam Hussein used chemical weapons against Iraqi Kurds in
retaliation for their support of Iran during the 1980-88 Iran-Iraq war.

â-~O After the 1991 Gulf war, Iraqi Kurds gained significant autonomy;
this was later formalised under Iraq’s 2005 constitution.

â-~O Rivalry between the Kurdish Democratic party and the Patriotic
Union of Kurdistan led to civil war in the mid-1990s. In 1998 the
two sides came to a power-sharing agreement.

â-~O Kurdistan is a cause of friction between Iraq and Turkey, which
has carried out military raids on northern Iraq against the separatist
Kurdish Workers’ party (PKK).

–Boundary_(ID_qnXbnUGcAspEHLf094/Rrw)–

Russia Ready For Co-Op In Iran- Armenia Railway

RUSSIA READY FOR CO-OP IN IRAN- ARMENIA RAILWAY

Moj News Agency
November 8, 2008 Saturday
Iran

Veladimir Yakunin, told that the Russian company is ready to do
the plan, if Iran, Armenia and Russia could reach an agreement over
the project financial support. Russian and Armenian president have
recently considered the issue, said Yakunin. The project is estimated
about one billion dollar or more. The railway project which is about
500 km long, is a critical event for Armenian part that now lacks any
direct railroad to Turkey and Azerbaijan. So, the project may play an
important role in lots of trade and economic fields for both countries,
and regional states too.

Mohammed Bin Rashid Chairs Cabinet Meeting

MOHAMMED BIN RASHID CHAIRS CABINET MEETING

Emirates News Agency
November 9, 2008 Sunday 5:51 PM EST

WAM Abu Dhabi, Nov. 09th, 2008 (WAM) – The Cabinet held here Sunday
morning at the Presidential Palace a meeting presided over by Vice
President and Prime Minister of the UAE and Ruler of Dubai HH Sheikh
Mohammed bin Rashid Al Maktoum.

Deputy Prime Minister Sheikh Hamdan bin Zayed Al Nahyan, attended
the meeting, which endorsed the final accounts and the budget sheets
of many authorities and the federal institutions of the fiscal year
ended December 2007.

The Cabinet approved joining of the UAE to United Nations’ Child Rights
Agreement of year 1990. It also endorsed the cooperation agreement in
the field of tourism between the UAE and Armenia signed in December
last year.

The Council of Ministers discussed a number of issues pertinent to
the services and energising of the performance of public departments
and ministries.

Meeting With Group Of Young Public Figures From Nederland And Georgi

MEETING WITH GROUP OF YOUNG PUBLIC FIGURES FROM NEDERLAND AND GEORGIA HELD AT NAGORNO-KARABAKH PARLIAMENT

De Facto
Nov 11, 2008

STEPANAKERT, 11.11.08. DE FACTO. On November 10 Nagorno-Karabakh
Republic Speaker Ashot Gulian received a group of young public figures
from Nederland and Georgia, including Guido de Graf Beerbrauver, the
World Interchurch Council Caucasus Project Coordinator, and Elizabeth
Hees, Spark Organization Educational Program Coordinator.

According to the information DE FACTO received at the NKR National
Assembly Press Office, the guests intend to study the possibilities
of realization of educational programs by initiating summer camps
among Nagorno-Karabakh youth. It was noted that such courses were
targeted at restoration of trust between the regionâ~@~Ys peoples
and reduction of tension. It has been planned to invite lecturers
from European Union countries to realize the programs.

Ashot Gulian said performing the mission did not accept a unilateral
approach and it should concern all the parties of Karabakh conflict. He
underscored that the NKR leadership was ready to promote any
humanitarian initiative mentioning the necessity of an efficient
program, where both organizational means and the subjects being
considered would be marked.

–Boundary_(ID_AZ8apB71zoMot4g+mp+w7A)–

BAKU: Israeli Foreign Minister: "The Issue Why The Azerbaijani Embas

ISRAELI FOREIGN MINISTER: "THE ISSUE WHY THE AZERBAIJANI EMBASSY DOES NOT OPEN IN ISRAEL SHOULD BE ADDRESSED TO THE AZERBAIJANI GOVERNMENT"

Today.Az
s/politics/48863.html
Nov 10 2008
Azerbaijan

Day.Az interview with Israeli Foreign Minister Tsipi Livni.

– Israel regards Azerbaijan as one of the important strategic partners
in the region and plans to develop the trade and economic ties with
it in most spheres, especially in fuel. Do you think Israel strongly
needs a Moslem state – Azerbaijan?

– Israel and Azerbaijan maintain friendly relations. Azerbaijan is
a peace-loving modern Moslem state and Israel considers it important
to maintain good and friendly relations with it.

– How do you assess the Azerbaijani-Israeli relations?

– Azerbaijan and Israel have developed commercial ties, especially
in the energy sphere. We are glad to see that these relations are
developing and we hope that this will further continue.

– Is there any progress in the work of the Jewish Eurasian council,
which was ready to support Azerbaijan in the Nagorno Karabakh issue
in the US congress?

– Israel is watching the continuing dispute on Nagorno Karabakh with
regret. Israel maintains friendly relations with both countries and
hopes for the peaceful resolution of the conflict. We welcome the
resumption of talks between Azerbaijan and Armenia and are ready to
see the achievements of the past few weeks, which proves possible
progress in the process of peaceful settlement.

– As is known, Azerbaijan has definite doubts about opening a
representative office in Israel. Yet, these doubts seemed not
to prevent our country from signing the defense contracts for
hundreds millions of dollars with Israel? How can you explain these
discrepancies? How can Iran treat this event?

– Israel is for opening the Azerbaijani embassy in Israel and it would
be glad to welcome the Azerbaijani ambassador to Israel. At the same
time, the issue, why the Azerbaijani embassy does not open in Israel
should be addressed to the Azerbaijani government.

– Gaarets newspaper announced that the Israeli defense ministry signed
a number of contracts with the Azerbaijani government on supply of
technique and ammunitions for several hundreds millions of dollars. Is
it possible to say that relations between the two countries become
not only diplomatic but also military strategic?

– Israel does not provide information about military and defense
issues, related to deals.

http://www.today.az/new

IMF Ready Help Armenia In Case Of Need

IMF READY HELP ARMENIA IN CASE OF NEED

ARKA
10/11/2008 15:16

Below is an exclusive interview by IMF Resident Representative in
Armenia Nienke Oomes to the ARKA News Agency.

Question: What are the possible consequences of the international
financial crisis for Armenia?

Answer: We do not yet observe any serious consequences of the global
crisis in Armenia. The main reason is that Armenia’s financial system
is not so large. On the one hand, it is not so good for economic
development, but, on the other hand, it can even be viewed as an
advantage because Armenia is a little less subject to possible shocks
than other countries. Recently we received the latest information
on the level of crediting by commercial banks, and Armenia shows
good indicators.

We do not yet observe any serious consequences of the crisis in
the context of money transfers either. The amount of transfers and
crediting keeps on increasing. However, Armenia may be influenced by
the international crisis as it cannot be completely isolated. We cannot
yet say for sure, but we have fears that the worsening situation in
Russia may influence Armenia because Armenia’s economy is dependent on
Russian capital. Specifically, direct investment and money transfers
from Russia may decrease. I must say that the exchange price of shares
in Russia has fallen by about 80%. However, we do not think that the
situation in Russia will be similar to that during the 1998 default.

The current situation is quite different because the Central Bank
of the Russian Federation has huge foreign exchange reserves, and
the Russian Government has huge financial resources to support the
banking system, which is actually being done there. A certain growth
slowdown there is, course, being forecast, but I do not think that
the consequences will be too grave for Armenia.

Question: Does it mean that the IMF will not assist Armenia in dealing
with the financial crisis, and the assistance under the new 3-year
program will be reduced?

Answer: It was before the financial crisis that we discussed the
issue of the IMF’s new program with the Armenian Government, which
is most interested in its implementation. We already have agreements
on credit terms. The IMF Executive Council in Washington is to settle
the issue on November 17, and, if the IMF approves the credit, a new
program of Poverty Reduction and Growth Facilitation (PRGF) will be
implemented in Armenia, which will actually be a continuation of the
previous one. The expected financial resources will not be so huge –
about $14.5mln during three years. Twice a year the IMF will supervise
the program implementation and, if it receives a good rating, it will
be an important appraisal of the Government-implemented reforms.

However, in case the crisis exerts an essential influence on Armenia,
the IMF is ready to increase the credit and assist Armenia. An
Armenian delegation recently visited Washington, and the issue was
discussed there.

The IMF Director gave assurances that the IMF will support Armenia
in case of need.

Question: Since the new program will be aimed to facilitate the
completion of tax policy reforms, what aspects will be emphasized?

Answer: Emphasis will certainly be put on the tax policy and
administration.

But there are a number of terms involving the relations between
the Central Bank and Ministry of Finance, for example, the issue of
bonds. Both the Ministry of Finance and the Central Bank have issued
bonds over the last few years. But, if an agreement on this issue is
signed, the Central Bank will stop issuing its own bonds. In that case
the Ministry of Finance will have to agree on the issue dates, amounts
of issue and maturity dates for short-term bonds with the Central Bank.

We recommend that it is only the Ministry of Finance that should be
entitled to issue bonds. Also, it is most important that the Ministry
of Finance should not set marginal rates. A market mechanism must
work here, which is important for the development of bond market.

As regards the tax policy, the new program will contain a term
providing for mechanisms precluding any delays in VAT reimbursement
from 2009. The resolution of the VAT reimbursement problem is
most important for exporters because, at present, if taxation
authorities fail to reimburse VAT, it means an interest-free loan
to the Government. It is an additional burden for businessmen, which
is an obstacle to the increase of exports. So these measures are of
high importance.

In general, we support the tax administration reforms implemented by
the Government, for example, the arrangement of the Taxation Service’s
activity. In this aspect we propose the formation of a department for
major taxpayers because the major part of tax revenues (about 60%) is
formed due to 300 major taxpayers. The burden of small-scale business
must be reduced, as this sector pays a small percentage of taxes all
the same.

We also recommend taxation authorities to make audits in the context of
business risk. There is no need for constant audits of all taxpayers –
only those raising doubts about fulfilling their tax commitments.

There are many honest taxpayers in Armenia, who do not have to be
constantly audited, but must be trusted.

In general, the IMF supports the tax reforms strategy. We believe it
incorporates effective reforms, and the implementation of our program
has to do with the reforms.

Question: What is your appraisal of the Government’s steps to reduce
shadow economy? Have businessmen been made equally subject to taxation?

Answer: We believe the Government is making the right steps to reduce
shadow economy. It is most important because it is closely related to
tax administration. A considerable part of Armenian businesses is in
the shadow, but the most important thing is to lay emphasis on major
taxpayers. Shadow economy is very difficult to scale because no one
exactly knows its real scale. I think the reduction of shadow economy
requires the following two things. First, ensuring fair, transparent
and predictable tax administration for everyone to know how much they
have to pay.

It is not the tax rates that are the problem – they are not too high
in Armenia. It is the predictability of tax administration that is
the problem.

Under the circumstances businessmen find it very difficult to forecast
their tax payments. In this context it is most important that simple
and fair rules be laid down.

I think the reforms will facilitate the accomplishment of this task. If
businessmen trust the transparency, predictability and fairness of
taxes, they pay taxes. I do not think that all the taxpayers in Armenia
are against paying taxes. They just believe the present situation to
be unfair, so equal conditions for everybody are important.

The second problem is that businessmen are afraid of using banking
services as they fear that taxation authorities will be informed of the
details of their bank operations. So many businessmen prefer "keeping
their money under mattress", which is very bad for Armenian economy.

Besides, I do not think that taxation authorities have access to
bank information. Armenia’s law guarantees the confidentiality of
this information, and banks have no right to provide it to taxation
authorities.

We consider it to be right, as it builds up businessmen’s confidence
in banks.

Question: However, some businessmen are discontent with the reforms. It
may be the result of their way of thinking, but how much time is
required for positive changes in the taxation field to take place?

Answer: Of course, the way of thinking is not a thing to change so
quickly, though in some countries, for example, Georgia, radical
reforms resulted in radical changes. I think the same may take place
in Armenia. If you are to get results sooner, radical changes are a
necessity. The coming of new people may always result in changes in
the way of thinking.

I think that Armenians’ way of thinking is changing to some extent. The
usual question is: what to begin with? – the Government or the
population. I do not think that population can change by itself, so
I believe that the Government must launch reforms and demonstrate to
the population that they are seriously working and laying down fair
rules for everybody.

Question: According to the IMF World Economic Outlook Report, economic
growth in Armenia is expected to slow from 10% this year down to 8%
next year and 6% in 2013. Does the international crisis account for
this forecast or are there other reasons?

Answer: Slowdown is a natural process. In principle, if growth
exceeds 10% it is a most rare phenomenon. It is good Armenia has
registered two-digit growth for many years running. But it cannot be
an everlasting process.

Theoretically, during a long term all countries register equal per
capita GDP. This means that poorer countries with low GDP levels are
supposed to show higher rates of growth, while rich countries make
slow progress. They will be at the same level in many years. So we
expect that the economic growth rates will be lower in Armenia when
the country becomes richer.

Question: This September, Head of the IMF mission to Armenia
Marta Castello Branco reported the IMF-forecasted 7.5% inflation
rates. However, this October the IMF report scaled the forecast up
to 9.4% for this year, scaling it down to 5% for next year. What is
the reason for the revision?

Answer: There were no changes in the forecast. 7.5% is our forecast for
this December as compared with last December. And 9.4% is the average
annual inflation rate. Inflation rates have been very high this year
not only in Armenia, but also in the entire world. The reason was high
prices for oil, grain and many food products. But the international
prices for oil and grain have fallen, and we expect this trend to go
on. We forecast an inflation rate of 5% in Armenia for next year.

Question: The August events in South Ossetia proved one of the
challenges to Armenian economy, which sustained losses estimated at
about $700mln. In your opinion how well is Armenian economy protected
from crises like that?

Answer: The influence of the Russian-Georgia conflict on Armenia
seemed to be restricted. However, the August events showed Armenia’s
economy to be very vulnerable in the case of closed borders, when
most cargoes intended for Armenia go through Georgia.

To make the country economically less vulnerable, the re-opening of the
border with Turkey is the best way. We are happy about some progress in
Armenian-Turkish relations. We are also informed of the Government’s
plans to construct a railway through Iran. It may be very expensive,
but alternative ways will make Armenia’s economy less vulnerable.

Question: Some Armenian experts fear that the re-opening of the
Armenian-Turkish border may pose a threat to Armenia’s economy in
the context of competitiveness of home-made goods?

Answer: Of course, there exists such a risk. When all countries are
engaged in trade, one of them may produce some goods at a lower price
than another, and Turkish products, for example, agricultural produce,
may be cheaper than Armenian. In the short-term prospect Armenian
products will face difficulties in meeting the competition, but in
the long-term prospect it is an advantage because each country will
focus on what it does best of all.

I think that the re-opening of the border will cause a setback in the
production of some goods, while other fields may register growth. I
am sure it will be beneficial for both countries in the long-term
prospect.

Question: What are the IMF’s recommendations for Armenia in the
context of the global financial crisis?

Answer: Before the crisis we recommended a tougher macroeconomic policy
to reduce inflation, that is, having a small deficit and implementing
a tough monetary policy. Those were our recommendations with no
account taken of the global crisis. However, if it starts seriously
influencing Armenian economy, we will have to revise them. But we
hope that Armenia’s banking system will not need a support similar
to that provided to the banking systems in Russia and in the USA.

We have approved the 2009 draft budget, where the budgeted deficit
is within 1%, which is of high importance for the reduction
of inflation. Of course, it is deficit in any case, which implies
that the Government will spend more than it will receive. So it is
important to increase revenues instead of reducing expenditures,
the more so because the poverty level remains high in Armenia – 25%.

The Government must help the poor sections of the population by
increasing tax revenues. That is why we are always putting emphasis
on tax reforms for the Government to have more financial resources
to support the population and improve the infrastructure.

Infrastructures and social programs are of high importance, and it
requires fair and honest payment of taxes. Although tax revenues
have increased in Armenia over recent years, they are less than in
other countries.

Question: The opening of an IMF office in Armenia was discussed at a
meeting with Prime Minister Tigran Sargsyan. Could you comment on this?

Answer: It was a misunderstanding. It was not an office that was
discussed, but the possibility of sending an expert in tax reforms
to Armenia to stay in the country and cooperate immediately with
taxation authorities.

The expert is supposed to assist the Armenian Government in
implementing reforms. No specific agreement has yet been reached,
but on November 17 the IMF Executive Council is to approve a new
program. Thereafter, On November 21-22, Murillo Portugal, IMF Deputy
Managing Director is to be on a visit to Armenia to attend a conference
to be held by the Central Bank on the occasion of the 15th anniversary
of the Armenian dram. During his visit he is to hold meetings with
the country’s top officials and discuss the issue of sending an IMF
fiscal expert to Armenia. Thus IMF makes it clear that it considers
Armenia an important country and wants to support the reforms the
country is implementing.

Western Prelacy News – 11/07/2008

November 7, 2008

PRESS RELEASE
Western Prelacy of the Armenian Apostolic Church of America
H.E. Archbishop Moushegh Mardirossian, Prelate
6252 Honolulu Avenue
La Crescenta, CA 91214
Tel: (818) 248-7737
Fax: (818) 248-7745
E-mail: [email protected] <mailto:[email protected]>
Website: <;

PRELATE TO CELEBRATE DIVINE LITURGY ON THE 3RD ANNIVERSARY OF THE CRESCENTA
VALLEY PARISH

On Sunday, November 9th, the Armenian Apostolic Church of
Crescenta Valley will celebrate its 3rd anniversary. On this occasion, H.E.
Archbishop Moushegh Mardirossian, Prelate, will celebrate Divine Liturgy and
deliver the sermon. The Prelate will be assisted at the altar by parish
pastor Rev. Fr. Ardak Demirjian.

The service will begin at 1:00 p.m.

The annual banquet will take place on Friday, November 14th, at
8:30 p.m., at Brandview Collection in Glendale. The banquet is being held
under the auspices of the Prelate and is organized by the Pastor, Board of
Trustees, and Ladies Auxiliary.

NAME DAY CELEBRATION OF HOLY MARTYRS CHURCH

On Sunday, November 2nd, Holy Martyrs Church of Encino
celebrated its name day as well as its 45th anniversary with Divine Liturgy
celebrated by H.E. Archbishop Moushegh Mardirossian, Prelate, and the
blessing of madagh. The Prelate was assisted at the altar by Christian
Education Co-Director Very Rev. Fr. Barthev Gulumian and parish pastor Rev.
Fr. Razmig Khatchadourian.

The Prelate began his sermon by giving thanks and praise to
Almighty God for granting the opportunity to come together to celebrate the
name day of the church and the 45th anniversary of its establishment. The
Prelate’s sermon centered on the feast of All Saints’ Day, which was
celebrated the day before, in which he extolled the virtues of our saints,
reminding the congregation that our saints were regular human beings, just
like us, however they made our Lord Jesus Christ the central element of
their lives and lived faithfully, thus receiving the reward and glory of
being in the presence of God. He urged the faithful to learn from the
example of our saints by living as good, loving Christians so that we too
may one day be worthy of the heavenly Kingdom of our Lord.

In conclusion, and in honor of the 45th anniversary of the
parish, the Prelate praised the initiative of the founders who decades ago
had the vision and foresight to set the foundation for the establishment of
the church and the subsequent community. He congratulated the parish and
wished them prosperity in all their future undertakings.

Following his sermon, the Prelate bestowed upon acolytes
Toukhman Khatchadourian and Hovig Keushgerian the privilege of bearing a
stole in recognition and commendation for their devoted service to the
church.

At the conclusion of the services, the Prelate was led in a
procession to "Avedissian" Hall where he blessed the madagh and participated
in the cutting of the 45th anniversary cake along with the parish Pastor,
Board of Trustees Chairman, and Ladies Auxiliary Chairlady.

The celebration concluded with the Prelate’s benediction and the
collective singing of "Giligia".

4TH ANNUAL ORIENTAL ORTHODOX CHURCHES

SUNDAY SCHOOL GATHERING

The 4th annual spiritual gathering of Oriental Orthodox Sunday
Schools took place on Saturday, November 1st, at St. Mary’s Church in
Glendale under the auspices of the Prelates of the Oriental Orthodox
Churches H.E. Archbishop Moushegh Mardirossian, Prelate, H.E. Archbishop
Hovnan Derderian (Primate, Western Diocese), H.E. Mor Clemis Eugene Kaplan
(Syriac Orthodox Church), and H.G. Bishop Serapion (Coptic Orthodox Church).

The day began with Divine Liturgy celebrated by Prelacy
Christian Education Department Co-Director Very Rev. Fr. Barthev Gulumian,
in which clergy and students from all the churches participated in their
respective languages. The welcoming sermon was offered by the Prelate who
commended the organizing of the annual gathering which brings together youth
from the Armenian, Coptic, and Syriac Churches to share in their common
faith and learn from one another. Given that the theme for the gathering
was "Christian Education: Home-Church Connection", the Prelate stressed the
individual roles of church leaders and parents in the educating of our youth
with our religious values.

Next, Bishop Serapion gave a sermon (Why We Are Sister Churches)
during which he stressed why cooperation and collaboration among the
churches is crucial. The final sermon was given by Archbishop Kaplan
(Christian Education: Building the Home-Church Connection) on the importance
of Christian Education in the lives of our youth.

After the offering of Holy Communion, on behalf of the
organizing committee Mrs. Patricia Allaf presented plaques to Archbishop
Mardirossian, Archbishop Kaplan, Bishop Serapion, and Very Rev. Fr. Dajad
Yardemian, who accepted the plaque on behalf of Archbishop Derderian, in
gratitude for their leadership and guidance.

Following the group photo and lunch, the students were placed
into workshop groups according to age. Each group later presented the
information they were taught to the rest of the participants.

The meeting concluded at 2:30 p.m. with the Lord’s Prayer and
the presenting of gifts.

http://www.westernprelacy.org/&gt
www.westernprelacy.org

BAKU: Azerbaijan Sympathizes With John McCain And Hope For Republica

AZERBAIJAN SYMPATHIZES WITH JOHN MCCAIN AND HOPE FOR REPUBLICANS TO WIN

Azerbaijan Business Center
Nov 6 2008
Azerbaijan

Baku, Fineko/abc.az. Candidate for the US president, Republican John
McCain is more popular in Azerbaijan compared to his contender Barack
Obama. This is concluded based on forecasts and opinions of some of
Azeri statesmen.

"The candidature of John McCain is more admissible in respect to
Azerbaijan’s interests. He is more experienced in international policy,
sees real American interests which for sure include Azerbaijan. McCain
is well-informed about unfairness committed by Armenia and Russia to
Azerbaijan. John McCain is not influenced by Armenian organizations
and has not made any ‘advanced’ statements in their favor in chase
of votes," Political Scientist Rasim Musabeyov said. In his opinion,
McCain is more real statesman unlike democrat Obama.

"Any big changes, let’s mention Barack Obama is characterized as a
supporter of changes, particularly concerning foreign policy, are
followed by big risks. Does Obama has guarantees promising to avoid
such risks?," the Political Scientist asks.

Eldar Namazov, Political Scientist, Leader of Public Forum ‘For
the Sake of Azerbaijan’ said in case McCain wins America-Azerbaijan
relations will hardly change.

"McCain is more real statesman while Obama is ‘a dark horse’ and we
do not know what to expect from him. Some of his statements are very
unusual for the US and carrying ‘missioner messages’.

"It is much easier to overturn public opinion that the States’
politic and economic system," E.Namazov said.

He has not made any forecasts relating perspectives of
America-Azerbaijan ties in case Obama wins.

"Democrats’ candidate has already promised to recognize ‘Armenian
genocide’ that is also not in favor of Azerbaijan," E.Namazov stated.

In his opinion lately McCain stressed home policy and socio-economic
plans in his speeches and reduced a break between electors’ sympathies.

Namazov has made some forecasts relating the election.

"The difference between candidates will be very small not depending
on whether Obama or McCain wins," E.Namazov said.

Namazov does not exclude that the ‘Bradley effect’ (In 1982,
Tom Bradley, the long-time mayor of Los Angeles, California, ran
as the Democratic Party"s candidate for Governor of California
against Republican candidate George Deukmejian, who is white. Most
polls in the final days before the election showed Bradley with a
significant lead. Based on exit polls, a number of media outlets
projected Bradley as the winner and early editions of the next day"s
San Francisco Chronicle featured a headline proclaiming "Bradley
Win Projected." However, despite winning a majority of the votes
cast on election day, Bradley narrowly lost the overall race once
absentee ballots were included. Post-election research indicated that
a smaller percentage of white voters actually voted for Bradley than
polls had predicted, and that previously "undecided" voters had voted
for Deukmejian in statistically anomalous numbers).

"There is a concept in the States called ‘political correctness’. The
voters could hide their wish to vote for white candidate at social
polls, but actually vote for him," E.Namazov said.

Chairman of Azerbaijan’s Democratic Party Sardar Jalaloglu also said
he sympathizes with John McCain.

"He was in Azerbaijan and is famous for his pronouncement of human
rights, appeals for releasing political prisoners," S.Jalaloglu said.

At the same time S.Jalaloglu is not forecasting any serious changes
in the US policy relating to Azerbaijan whether McCain or Obama wins.

"There are established state institutes in the United States which
policy is not formed by a separate person," Jalaloglu said.

He considers current American elections very important in respect
to counteraction of two races. Obama’s winning will prove a full
democracy in American society as it would avoid any racial concepts.

"US-Azerbaijan relations will not change. We can only talk about
possibility of introducing some corrections to US policy in the
region," Doctor of Judicial Sciences, Rustam Mammadov, Chief of
International Law Department at Baku State University, said.

Today is the day of US presidential elections. The main competition
is between candidates representing two largest parties – Democrat
Barack Obama and Republican John McCain.

Conference On Conflicts In South Caucasus Took Place In France

CONFERENCE ON CONFLICTS IN SOUTH CAUCASUS TOOK PLACE IN FRANCE

Ministry of Foreign Affairs
2008-11-05 13:25
Nagorno-Karabakh Republic

On November 3, a conference on "The role of international law in
the process of South Caucasian conflicts’ settlement" took place
in the Higher School of Political Sciences in Aix-en-Provence. The
conference was held by the NKR Permanent Representative in France
Hovhannes Gevorgyan.

Representatives of local self-governing bodies of Aix-en-Provence,
French deputies, members of the local Armenian community, as well as
professors and students of the Higher School of Political Sciences
participated in the conference, organized with the support of the
Armenian Cultural Union of Aix-en-Provence.

Dutch MFA Concerned Over Prosecution Of Turkish Writer Because Of Hi

DUTCH MFA CONCERNED OVER PROSECUTION OF TURKISH WRITER BECAUSE OF HIS STATEMENTS ON ARMENIAN GENOCIDE

PanARMENIAN.Net
04.11.2008 17:09 GMT+04:00

/PanARMENIAN.Net/ Mr. Maxim Verhagen, Minister of Foreign Affairs of
the Netherlands, has asked his Turkish colleague for clarification on
the decision of the Turkish Minister of Justice to give permission to
prosecute writer Temel Demirer, Federation of Armenian Organizations
in Netherlands (FAON) told PanARMENIAN.Net.

This is indicated in answers of Mr. Verhagen to written questions
submitted on 26 September 2008 by the Dutch Parliament. The questions
were presented by Members of four factions in Dutch Parliament,
namely the Christian Union, the CDA (Christian Democrats), the SGP
(Political Reformed Party) and the VVD (Liberal Party) after a report
by the Federation of Armenian Organizations in Netherlands (FAON)
that Mr. Demirer was being prosecuted because of his statements on
the Armenian Genocide.

Mr. Verhagen has also expressed his concern publicly during a speech
in the Bosphorus Conference on the lack of progress by Turkey in,
among others, sphere of the freedom of expression. He has pointed to
a clear relationship of this state of affairs with the application
of Article 301. Mr. Verhagen notifies in his response that Turkish
Minister of Justice has so far issued permission for prosecution in
44 out of 311 cases, which have been laid before him. The majority
of them are cases which were under adjudication before the amendment
of Article 301. The arguments that the Turkish government puts forth
for the issuance of permission to persecute these 44 cases are as
yet not known. Mr. Verhagen is due to be informed further about this.

In addition, Mr. Verhagen asserts in his answers that the application
of Article 301 shall stringently be dealt with in the appreciation
that Netherlands is going to give on the Progress Report due to
be published shortly by the European Commission in connection with
Turkey. Netherlands will also keep a strict watch so that the European
norms and conditions are compiled with if the chapters on "Judicial
power and the Fundamental Freedoms" (Chapter 23) and "Justice, Freedom
and Security" (Chapter 24) will come up for discussion in the framework
of EU accession negotiations. This applies to the political dialogue
as well.

The statements by Mr. Demirer were made during a commemorative service
after the murder of Hrant Dink in 2007, when he said that Dink had
to pay with his life for speaking the truth about the Armenian
Genocide. Dink was killed by a Turkish nationalist after he had
been condemned by court on the basis of Article 301 because of his
statements on the Armenian Genocide.