Ex-Premier: Most Part Of Economic, Political Resources Of Armenia Co

EX-PREMIER: MOST PART OF ECONOMIC, POLITICAL RESOURCES OF ARMENIA CONCENTRATED IN HANDS OF SEVERAL FAMILIES

ARKA News Agency, Armenia
June 14 2007

YEREVAN, June 14. /ARKA/. Most part of the economic and political
resources of Armenia is concentrated in hands of several families,
Chairman of "Freedom" party ex-Premier of Armenia Hrant Bagratian
told journalists.

If in USA 400 richest people control 10% of GDP of the country, in
Russia 40 families own 16% of GDP, then in Armenia 58% of the country’s
GDP appeared in the hands of only 44 families, Bagratian said.

"In Soviet times we feared a total equality, now we found ourselves in
conditions of total inequality. In 15 years this inequality showed up
more strikingly than in democratic countries having 400-year history
of development," Bagratian said. He also added than over last 10 years
the gap between the rich and the poor increased by 7 times in Armenia.

"The authorities claim new jobs are opened in the country, whereas
according to the official statistics, over the last five years the
number of jobs decreased down to 1.1mln as compared to 1.5mln jobs
in 2001," Bagratian said.

The ex-Premier doubted the data of the National Statistical Service
according to which the total wages fund makes 70% of GDP in Armenia
with the total profit making 30% of GDP.

"In Georgia wages constitute 60% of GDP with the profit making
40%, whereas Armenia has the lowest level of wages in the region,"
Bagratian said.

According to Armenia’s National Statistical Service, the economic
growth in the country made 5.9% in 2000, 9.6% in 2001, 13.2% in 2002,
14% in 2003, 10.5% in 2004, 14% in 2005 and 13.4% in 2006.

GDP per capita made $1,989 in Armenia in 2006 against $593 in 2000.

$2,558 GDP per capita is to be achieved in 2007.

BAKU: Georgia, Moldova And Oman Ready To Sign Azerbaijan’s WTO Acces

GEORGIA, MOLDOVA AND OMAN READY TO SIGN AZERBAIJAN’S WTO ACCESSION DEALS WITHOUT TALKS

Azeri Press Agency, Azerbaijan
June 14 2007

Georgia, Moldova and Oman are ready to sign bilateral agreements on
Azerbaijan’s WTO accession without any negotiations.

Azerbaijan’s Economic Development Minister Heydar Babayev aid some
countries want to negotiate with Baku and the process can even
be delayed.

He added that Azerbaijan will not need bargain with Armenia in the
accession process.

"While being admitted to the World Trade Organization, Armenia assumed
a commitment not to obstruct Azerbaijan’s accession process," he noted.

Azerbaijan is currently negotiating with the United States, European
Union, Japan, Canada, South Korea and Taiyuan.

Azerbaijan has signed the first and only bilateral protocol with
Turkey since it was granted an observer status in 1997.

Priest Of Gugarats Diocese Declared Unfrocked

PRIEST OF GUGARATS DIOCESE DECLARED UNFROCKED

Noyan Tapan
Jun 13 2007

ETCHMIADZIN, JUNE 13, NOYAN TAPAN. In accordance with the patriarchal
decision of Catholicos of All Armenians Karekin II, priest Ruben
Yeghiazarian of the Gugarats diocese was declared unfrocked.

NT was informed from the press service of the Mother See of Holy
Etchmiadzin that the patriarchal decision was taken based on the
petition of the Head of the Gugarats diocese Bishop Sepuh Chuljian
requesting to unfrock priest Ruben Yeghiazarian, as well as according
to the application of the priest.

Henceforth the unfrocked priest will be considered as a layman by
the name of Tigran Yeghiazarian.

BAKU: French Embassy’s Advisor Hopes New French Parliament Will Not

FRENCH EMBASSY’S ADVISOR HOPES THAT NEW FRENCH PARLIAMENT WILL NOT ADOPT LAW PENALIZING DENIAL OF ARMENIAN GENOCIDE

TREND News Agency, Azerbaijan
June 13 2007

Azerbaijan, Baku / corr. Trend S.Agayeva / "I hope that the new
Parliament of France will not adopt the law penalizing denial of
the so-called ‘Armenian genocide’," said the Head Advisor of the
Ambassador of France, Syivain Guiaugue.

According to the diplomat, formerly the Low Chamber of the French
Parliament, the National Assembly approved the draft law penalizing
the denial of the Armenian genocide even though it was committed in
the Ottoman Empire in 1915-1917. The ex-President of France, Jacque
Chirac and Senate protested against the adoption of such a law,
saying that it may bring harm upon the relations with Turkey.

Guiaugue expressed that the new Parliament of France faces more
significant goals and targets, including the strengthening of the
bilateral relations, improvement of the legislation, etc.

Touching upon the future policy of the new French President,
Nokolai Sarkozi, with regards to Azerbaijan, the diplomat stated
that "the attitude of France towards Baku will remain the same and I
hope that they will be successive". "We expect the expansion of the
co-operation with Azerbaijan in many spheres after the formation of
the new Government of France," According to Guiaugue, it is planned to
organize mutual visits from the senior officials of the two countries.

In relation to the question on the supposed official visit of the
French President, Nokolai Sarkozi, to Azerbaijan, the advisor said
that currently this issue is not being discussed. "Nokolai Sarkozi
has recently begun his activities and the first communication of the
Presidents of Azerbaijan and France is to be expected. Till then,
it will be impossible to speak of the visit," he said. In regards
to the position of the new French President to the Nagorno-Karabakh
conflict settlement, the diplomat said that France will continue its
efforts to settle the conflict.

According to Guiaugue, the French Co-chair of the OSCE Minsk Group
informed the new French President of the history and settlement
process of the Nagorno-Karabakh conflict. "Our position is that the
co-chairs are only mediators, but settling the conflict depends on
the sides themselves," the diplomat underlined.

Nagorno-Karabakh Demands Changing Of The Format Of Negotiations

NAGORNO-KARABAKH DEMANDS CHANGING OF THE FORMAT OF NEGOTIATIONS
by Yury Roks

Source: Nezavisimaya Gazeta, June 07, 2007, p. 8
Agency WPS
DEFENSE and SECURITY (Russia)
June 13, 2007 Wednesday

Stepanakert Demands Participation In The Negotiation Process Of Nagorno-Karabakh Regulation

Stepanakert may not recognize the agreement between Yerevan and Baku

At a press conference after the meeting with acting chair of
OSCE, Miguel Anhel Moratinos, in Yerevan on Tuesday, President of
Nagorno-Karabakh, Arkady Gukasyan, announced that the current format
of negotiations was destructive. Gukasyan reiterated that at the OSCE
summit in Budapest in 1994 with the participation of Azerbaijan, it
was decided that Nagorno-Karabakh would take part in the negotiation
process and intermediaries were instructed to organize negotiations
in the trilateral format.

At a press conference after the meeting with acting chair of
OSCE, Miguel Anhel Moratinos, in Yerevan on Tuesday, President of
Nagorno-Karabakh, Arkady Gukasyan, announced that the current format
of negotiations was destructive. Gukasyan reiterated that at the OSCE
summit in Budapest in 1994 with the participation of Azerbaijan, it
was decided that Nagorno-Karabakh would take part in the negotiation
process and intermediaries were instructed to organize negotiations
in the trilateral format.

Stepan Grigoryan, director of the Yerevan-based center of regional
cooperation, comments: "It is the factor of non-participation of
elected representatives of the authorities of Nagorno-Karabakh
in negotiations, along with the absence of political will of the
leaders of Armenia and Azerbaijan and non-readiness of Armenian and
Azerbaijani societies for compromises that is the reason for the
inefficiency of regulation." According to Grigoryan, in any schemes
for practical resolving of the conflict (liberation of the territories
adjacent to Nagorno-Karabakh was proposed by the intermediaries, the
insertion of peacekeepers into the region and return of Azerbaijani
refugees) residents of Nagorno-Karabakh will be involved as direct
participants of the conflict. "Thus, the participation of Stepanakert
in the negotiations is necessary. It is clear that this contradicts
the interests of Baku, who interprets the situation as a territorial
conflict between Armenia and Azerbaijan.

The wrong stance of the intermediaries who believe that it is
easier for a smaller number of participants to reach an agreement
is understandable too. However, it is not understandable why Yerevan
agrees with the current bilateral format," concludes Grigoryan.

Naturally, Baku has its own answer to the claims of Stepanakert.

Azerbaijan points at the fruitlessness of negotiations when
Nagorno-Karabakh has participated in this. For instance, well-known
political scientist Rasim Musabekov states: "The proposal of Gukasyan
is not realistic. It means giving up everything we have and starting
everything anew. Naturally, nobody will do this when negotiations
have reached the homestretch." Speaking about the "homestretch,"
Musabekov says that it is necessary to understand this not as the
signing of agreements, because the chances for this are poor, but
only as the end of a regular stage of the process of regulation.

Musabekov adds: "If the parties do not reach agreements in
St. Petersburg, this may lead to a new round of a regional arms race
or even an outburst of violent actions."

Gegam Bagdasaryan, president of the press club of Stepanakert and
member of the local parliament, said that Gukasyan had to demand
changing the negotiation format earlier. Bagdasaryan added: "The
matter is about Nagorno-Karabakh and about our future, but we do not
even know for sure which proposals are on the table of negotiations.

Do we need to guess if Mathew Braiza lied when he spoke about the
liberation of territories and peacekeepers?!" According to him,
it is illogical to oblige residents of Nagorno-Karabakh to fulfill
resolutions approved without their participation and opinion,
especially against the background of an information war waged by
Baku. Bagdasaryan says: "What kind of peace can we discuss when we
are permanently threatened by war? We have spoken about the need for
the participation of our representatives in negotiations with a clear
division of the rights and obligations of the two Armenian states in
this process for a long time." According to him, if Baku and Yerevan
are interested in the process of regulation, they should also be
interested in the participation of Nagorno-Karabakh in negotiations.

Fourth International Film Festival "Golden Apricot" To Open With Dem

FOURTH INTERNATIONAL FILM FESTIVAL "GOLDEN APRICOT" TO OPEN WITH DEMONSTRATION OF "THE LARK FARM"

Noyan Tapan
Jun 12 2007

YEREVAN, JUNE 12, NOYAN TAPAN. This year the fourth international film
festival "Golden Apricot 2007" will open with the demonstration of
"The Lark Farm" of world-famous Paolo and Vittorio Taviani. On this
occasion Italian Armenian script writer Antonia Arslan, actor Tcheky
Karyo and actress Arsine Khanjian will come to Yerevan.

This was announced by the festival director Harutyun Khachatrian at
the June 8 press conference. According to him, prior to the opening
ceremony of the film festival, a traditional apricot blessing ceremony
will be held in Charles Aznavour Square.

This year the festival will have two contest programs – the contest of
fiction and documentary films and "Armenian Panorama" program. This
time the right to select films for "Armenian Panorama" program was
given to the Union of Cinematographers of Armenia, and they have
chosen 22 out of 62 films. In this contest program, a jury headed by
Vigen Chaldranian will judge the films.

An out-of-contest program "New Armenian Cinema" will also be held
at the festival. During a week, foreign film producers will have the
opportunity to watch such films under this program as "The Priestess"
by Vigen Chaldranian, "As a Beginning" by Artak Sevada, "Don’t Be
Afraid" by Aram Shahbazian, etc.

It was mentioned that the same amount as last year – 50 million drams
has been allocated for the film festival from the state budget. In
the words of H. Khachatrian, "ten times this sum will make the average
budget of an average foreign festival."

RA President, MCC CEO Appreciate The Level Of Bilateral Cooperation

RA PRESIDENT, MCC CEO APPRECIATE THE LEVEL OF BILATERAL COOPERATION

ArmRadio.am
12.06.2007 12:56

President Robert Kocharyan received the delegation headed by Ambassador
John Danilovich, Chief Executive Officer of the Millennium Challenge
Corporation

The President attached importance to the cooperation between the
Millennium Challenge Corporation and the Armenian Government, as well
as the programs directed at deepening of reforms and solution of a
number of important programs.

Noting that one of the main problems is the discrepancy of development
of Yerevan and marzes, the President said the expectations from the
program are great.

John Danilovich also appreciated the level of bilateral cooperation. He
briefly presented the future programs of the MCC and his discussions
and expectations from the Congressional Democratic majority in regard
to the continuation of the Corporation’s programs.

"The reforms in Armenia are decisive, and we see the perspectives
of the country’s development in effective reforms," stressed Robert
Kocharyan and added that for many years the authorities have been
trying to convince the public that inclusive and effective reforms are
the only way for the country’s development. According to the President,
the results of the parliamentary elections enable to continue this
policy and

Speaking about elections, Ambassador Danilovich said their results are
extremely important for the Corporation. In his turn, Robert Kocharyan
mentioned that the shortcomings have been thoroughly investigated
and some members of Precinct Electoral Commissions have been called
to responsibility.

TBILISI: Georgia Moves Closer To The EU By Aligning With It On Inter

GEORGIA MOVES CLOSER TO THE EU BY ALIGNING WITH IT ON INTERNATIONAL ARENA
Nodar Tangiashvili

Daily Georgian Times, Georgia
June 11 2007

A final agreement has been reached with the EU on allowing Georgia to
concur with its position on the foreign policy issues that the EU will
touch upon in its statements. On 1 June, 2007 Georgia gained the right
to align itself with the political statements and declarations that are
adopted by the EU under its Common Foreign and Security Policy (CFSP).

This opportunity for Georgia has been present in the European
Neighborhood Policy Action Plan, a document of EU-Georgia priorities
and actions that was jointly agreed last November. However, it was only
in 14-16 May, 2007 that the two sides arrived at the final agreement
during the talks that Georgia’s Foreign Minister Gela Bezhuashvili
held in Brussels.

Thanks to this provision of the ENP Action Plan that is now in force,
Georgia will be invited to join the statements of the EU on foreign
and security policy matters. At the end of each statement of the
continent’s most influential union now we will see "Georgia" among
other signing European countries, mainly the EU member states. This is
an important dividend for the country whose pro-Western leadership has
claimed to pursue the same goals in foreign policy and prescribe to the
same values that the European Union shares. Before this provision came
into force, Georgia usually supported the EU’s political statements
anyways. But now all interested EU citizens will know that Georgia is
among those European countries who are concerned with the same issue
as they are and support EU policies for achieving pan-European goals.

It is also a manifestation that the EU acknowledges Georgia’s
"Europeanness" and yet another symbol of recognizing Georgia’s
pro-EU aspirations. The first encouraging signal was the fact that
the Action Plan mentions, "the European Union takes note of the
European aspirations Georgia has expressed". Now, another symbolic
stem has been taken in reality. Georgia and the EU moved to a closer
partnership in the EU’s Common Foreign and Security Policy (CFSP).

As the Ministry of Foreign Affairs of Georgia stated on 4 June,
2007, the agreement on Georgia’s adherence to EU political statements
"brings Georgia even closer to Europe and is of particular importance
in terms of the further development of Georgia’s political cooperation
with the European Union. Georgia is now involved in carrying out the
European Union’s Common Foreign and Security Policy, and afforded the
opportunity to voice its position alongside the European Union’s 27
member states on the ongoing political developments in the world".

GT interviewed a Georgian expert, Mr. Kakha Gogolashvili, who is the
director of the Georgian European Policy and Legal Advice Center
(GEPLAC), to find out if this optimistic tone of the statement is
indeed sustainable. It turns out that not only Georgia, who from the
very beginning of EU-Georgia negotiations was more ambitious than
Armenia and Azerbaijan and insisted on its Black Sea dimension, but
also its two South Caucasian neighbors will benefit from the Georgian
diplomats’ achievement.

Q: On June 1 Georgia and the EU arrived at an agreement on inviting
Georgia to join the political statements of the EU….

Kakha Gogolashvili:

It can be said that the agreement has long been reached. Namely, it
was reached when the European Commission agreed to include, probably on
the basis of the member states’ consent, into the EU-Georgia European
Neighborhood Policy Action Plan this issue of allowing Georgia to join,
on a case-by-case basis, the political statements expressing the EU’s
position. Since this provision was put into the Action Plan, which was
finally adopted last November, it was clear for us that an official
confirmation would follow. The Action Plan is not an international
treaty with a binding force, obligatory to fulfill and therefore, it
was possible that after some time they (the EU) would not tell us to
join, but now the information came from the EU that Georgia, Armenia
and Azerbaijan have been granted the right to join the statements
adopted by the EU in the framework of the Common Foreign and Security
Policy (CFSP). Though, to me the question of Azerbaijan is peculiar,
because Azerbaijan did not have this provision in its Action Plan and
nor did it demand it specifically, while Armenia demanded it after
Georgia raised its claim on that issue.

Q: Which other countries enjoy the same right?

Moldova and Ukraine also have been joining for a long time. Making CFSP
statements, i.e. joint statements of the EU is due to the instrument
that was introduced by the Treaty of Maastricht (entered into force
in 1992, GT). Besides the member states of the EU, such statements
are usually joined by EFTA (European Free Trade Association, GT)
countries, i.e. the ones that have signed with the EU Agreement on
a European Economic Area, namely, Norway, Liechtenstein, Iceland,
and of course the candidate countries – Turkey, Croatia, Macedonia,
as well as the countries involved in the so-called Association and
Stabilization process in the West Balkans such as Bosnia-Herzegovina,
Serbia, now Montenegro as an independent state and Albania; plus
Ukraine and Moldova.

Q. How important was that agreement on allowing Georgia to align
itself with EU political statements?

Seventeen countries participate in the European Neighborhood process
and only two of them have the right to join the joint or common
political statements of the EU. Now three more states of Georgia,
Armenia and Azerbaijan have been entitled to do so. This means
recognition that the EU when it makes certain statements on some
international issues, certainly looks for allies in this process, much
like any country seeking to express certain position on international
arena that always looks for allies because its positions become more
solid and stronger by doing so. But it matters which countries you
permit to also make a statement together with you. When one country
asks another country to join its statements, it means that it regards
the other country as having the same ideology, political thinking,
so to say. At least, it considers it as a political ally to a certain
extent, as an ideological partner. It is important that by the EU
consenting to Georgia’s joining its political statements, it recognizes
that human rights and rule of law in Georgia are protected on certain
satisfactory level, that Georgia is more or less a democracy and a
state with the right foreign policy orientation – an ally of the EU
on international issues. Accordingly, when the EU makes an offer to
a country to join the statements it makes, it thereby sends a signal
or indicates to it that the EU is ready to act on the international
scene together with this country, in concurrence with it.

It is true that the text of such statements are agreed and elaborated
through negotiations only among the member states, but it is obvious
that when the member states know that they will be joined by other
states, specifically the abovementioned countries, they will surely
take into consideration what those countries think in relation to
these issues. This will mean that Georgia, a small country, will have
certain influence on the policies of the EU.

Q. In what cases will Georgia be able to align?

If an issue in no way relates to Georgia’s interest or does not fully
foresee its interest, then the EU can make its statement separately
without having Georgia joined. In principle, this implies that the
statements that the EU adopts on an issue which virtually do not
touch upon other countries. Such an example would be a statement
dealing with the EU’s programs in Iraq and the issues of their
implementation. This question is still of international importance,
but it is more specifically about how the EU carries out its missions
in Iraq. If the statement is on any other issue that Georgia is not
concerned with, the EU will not invite it. Though in most cases we
should expect that the name of Georgia will be present on the list
of singing countries, because we can see that in the cases when the
issue does not deal with the region, but say, with Sierra Leone, East
Timor, etc. Ukraine and Moldova are named too, as they were offered
to join these statements. The more countries join its statements,
the stronger the voice of the EU will be, though it is already quite
strong. I would like to underline that if the EU had agreed with
a country whose international prestige is not on a proper degree,
or whose policy the EU or international community does not welcome,
this would backfire for the prestige of the EU, downgrading the force
and prestige, so to say, of these statements. It is important that the
EU does not fear that being associated with Georgia will be harmful.

Q. If we look at this issue from the perspective of Georgia’s long-term
EU membership, would you say there has been a progress in that regard?

I would definitely say "yes", because most of the countries that join
the statements, including Moldova, if you wish, have a great chance
for membership. Ukraine also has one, but the internal situation in
the country hinders even a possibility of speculations on that issue.

It depends on what political forces will win there. As for the rest,
whether Western Balkan countries, or certainly the candidate countries
and the EFTA states would have long become EU members had they stated
their desire. Thus, this really moves Georgia’s prospect closer to EU
membership. You can see that in the cases of Morocco, Israel or other
similar countries the Action Plans contain no such a possibility of
alignment. So, it seems the EU takes this clause seriously. Political
approximation with the EU is much more important than economic
ties. The latest EU enlargement, or any previous enlargement took
political criteria as the first testing stone, that is to say, how
politically mature and ideologically close to the EU a country is
and joining CFSP means that the EU recognizes our closeness with it.

Q: In the past Georgia still supported EU statements. How did that
happen? What did Georgia do to express its backing of the EU’s
positions?

In most cases, in the past this was done unilaterally through the
statement of the Ministry of Foreign Affairs or less frequently the
President of Georgia. I think it was after Moldova and Ukraine were
given the right to join the statements that Georgia too started to
make its statements unilaterally. We also know that long before that
Georgia always adhered to the EU’s positions within international
organizations.

Serge Sargsyan presented the newly appointed Ministers

Serge Sargsyan presented the newly appointed Ministers

ArmRadio.am
11.06.2007 13:33

RA Prime Minister Serge Sargsyan today visited the Ministries of
Justice, Trade and Economic Development, Environmental Protection,
Health, Youth Affairs and presented newly appointed Ministers Gevorg
Danielyan, Nerses Yeritsyan, Aram Harutyunyan, Vardan Vardanyan,
Harutyun Kushkyan and Armen Grigoryan to the Staffs. The Prime Minister
thanked the ex-Ministers for the fruitful joint work in the Government,
expressing confidence that hentseforth they will continue applying
their knowledge and skills for the sake of people’s wellbeing.

Congratulating and wishing success to the newly appointed Ministers,
Serge Sargsyan noted that
New tasks will be put before the Ministries and they must be ready to
maintain and develop the progress registered.

Defence Expenditures Grow by 20.7% in January-April 2007

ARMENIA’S DEFENCE EXPENDITURES GROW BY 20.7% IN JANUARY-APRIL 2007 ON
SAME PERIOD OF LAST YEAR

YEREVAN, JUNE 11, NOYAN TAPAN. In January-April 2007, out of budgetary
expenditures of 140 bln 824.6 mln drams (over 391.4 mln USD), 25 bln
408.5 mln drams was spent in the sphere of defence, which exceeded by
20.7% the index of the same period of last year. The ratio of defence
expenditures to Armenian GDP in January-April 2006 made 5.1% against
5.3% in the same months of 2007.

According to the RA National Statistical Service, budgetary
expenditures on protection of public order, national security and
justice amounted to 11 bln 189.1 mln drams, exceeding by 12.2% the
respective index of last year, while their ratio to GDP made 2.4% in
the indicated period of 2006 against 2.3% in the first four months of
2007.

Expenditures on education and science made 23 bln 522 mln drams (21.7%
growth on the same period of last year), with their ratio increasing
from 4.7% to 4.9%. 19 bln 471.5 mln drams was spent in the social
security and social insurance sectors (23.3% growth), while their ratio
to GDP increased from 3.8% to 4.1%; 10 bln 675.7 mln drams was spent on
public health, the ratio of health care expenditures to GDP remained
the same – 2.2%.

In January-April 2007, 7 bln 775.2 mln drams was spent on communication
and road maintenance (15.9% growth). The ratio of these expenditures to
GDP remained at the level of 1.6%.