Author: Vasilian Manouk

SOME PROGRESS MADE WITH THE 2007 BUDGET
By Karine Mangassarian

Yerkir, Armenia
Nov 13 2006

The 2007 budget was discussed in the National Assembly. The budget
of 2006 was characterized as "social budget". The 207 budget was
characterized in the press as a "pre-election budget": because of
the upcoming elections the government must convince the public that
its efficient work contributes to the improvement of the population’s
welfare.

Head of ARF’s parliamentary faction Hrayr Karapetian called the 2007
budget a "survival budget". Even though some progress has been made
compared to the budget for 2006 and the budget has increased by half
a billion drams, Karapetian believes that since the national currency
has appreciated and the prices of some goods have increased.

Allocations to the social sectors have increased in the 2007 budget.

The salaries of teachers, doctors and scientific workers will be
increased in 2007.

As to the most vulnerable segments of the population, Karapetian
noted that the least progress was made in respect to the pensions.

The pensions and benefits have been slightly increased. The salaries
of civil servants, as well as the minimum salary will be increased.

Benefits paid to the families of soldiers killed in Karabagh,
the disability pensions, and the veterans’ pensions will also be
increased. 415 survivors of the Genocide will receive a monthly
payment of 25 thousand drams instead of the present 5 thousand.

"There is indeed some progress. But when the tax revenue amounts to
only 14% of the GDP we can conclude that shadow economy comprises a
large share of the economy. This implies that the potential of the
tax and customs sectors is not yet fully used," Karapetian notes
adding that in normal countries the tax revenues amount to not less
than 30% of the GDP. "The tax and customs officials keep saying that
tax revenues cannot be increased.

Of course this wouldn’t be possible to do without the necessary
political will which in fact means fighting corruption. If we look
carefully at the sectors that are not taxed we can see that these are
the sectors directly linked with some high-ranking officials. This
is why we cannot increase the pensions, benefit payments, and solve
many other social issues," Karapetian said.

Karapetian mentioned the defense sector noting that even though there
is progress as compared to the last year and 300 million drams has
been allocated to the defense sector, we are still lagging behind our
neighbors. "Of course we have some advantages taking into consideration
the objective reasons – blockade, roads – that have their impact on
the development of our county, but there are some internal issues
that depend on us.

Our problem is the low level of tax and customs revenue," Karapetian
said. Answering the question whether the taxes are mostly collected
form small and medium businesses Karapetian noted, "We could say so.

There is an interesting controversy here: the small and medium
businesses pay their taxes fully while the large businesses that are
in the shadow do not pay any taxes at all.

This means that we have a lot to do in this respect especially that
we do not envisage much support to the small and medium businesses in
the state budget and the credits that are available are not sufficient
to promote SMEs. We have the middle class that wants to increase its
capital and pays its taxes properly. We have the large businesses
that mostly evade taxes. Next year we should pay more attention to
this issue," Karapetian stated.

The ARF’s faction will make a number of proposals on industry and
investment policies, as well as foreign policy during the upcoming
discussions in the National Assembly. One of them is to open a
consulate of Armenia in Batumi. The Armenian Foreign Affairs Minister
has agreed to this proposal taking into consideration the transport
connection with Armenia as well as the Armenian population’s recently
increased interest towards tourism in this region.

Karapetian informed that ARF’s regional structures in all regions
of Armenia have raised a number of issues dealing with capital
construction, renovation of schools and cultural centers, drinking and
irrigation water pipelines, and gas pipelines. These issues will be
included into the package of proposals that the faction is planning to
submit to the government. Karapetian said negotiations are currently
in process to find clear-cut budget solution to these issues.

AZG Armenian Daily #216, 11/11/2006

Business

ARMENIAN AND TURKISH BUSINESSMEN TO MEET IN ISTANBUL

On November 27, the first congress of the Union of
Black Sea and Caspian Confederation of Enterprises
(UBSCCE) led by Turkish businessmen will take place in
Istanbul. According to Turkish Daily News, as members
of the Confederation, the Armenian Union of
Manufacturers and Businessmen was also invited.

Panorama.am

14:32 10/11/06

DEPUTY VOTES AGAINST RISE OF HIS SALARY

Viktor Dallakyan, member of parliament, voted against
rise of deputies’ salaries. `My wife makes pressures
on me saying I have voted against increase of our
family budget,’ Dallakyan said also saying he is one
of the few deputies who lives solely on salary.
Dallakyan assures he will vote against the draft once
again if it appears in the parliament. /Panorama.am/

ARMENIA IS THE VASSAL OF RUSSIA: ARMENIAN POLITICIANS

ArmInfo News Agency, Armenia
Nov 7 2006

Armenia’s vassal policy has resulted in its full dependence on Russia,
says the member of the board of the Armenian National Movement party
Aram Manukyan.

He says that today Armenian-Russian relations are in real crisis.

True cooperation should be based on dignity rather than grovelling.

The leader of the Armenian Democratic Party, MP Aram Sargsyan says that
corrupt authorities cannot be independent. He notes that the Assets
Against Debts program – when Armenia gave 5 strategic facilities to
Russia – has made the country strongly dependent on the Russians.

If the Armenian authoirites are ready to give their strategic
facilities, why should Russia refuse to accept them? wonders MP,
political expert Hamayak Hovhannissyan. The Russians have a good
proverb: accept when you are given, run when you are beaten. Russia has
always been present in the South Caucasus, so it makes no sense talking
about its growing presence. The point is that though remitting $40
bln debts to third countries Russia has forced Armenia to pay its $100
mln debt to the last penny. This is the result of Armenia’s policy.

MOSCOW IS PREPARED TO ACT AS GUARANTEE IN NAGORNO-KARABAKH CONFLICT FOR
BOTHCOUNTRIES SHOULD COMPROMISE BE REACHED – RUSSIAN FOREIGN MINISTRY

TREND Information, Azerbaijan
Nov 8 2006

Mikhail Kaminin, an official of the Russian Foreign Ministry, stated in
talks with RIA Novosti that Moscow is prepared to act as a guarantee
in the resolution of the Nagorno-Karabakh conflict should Armenia
and Azerbaijan reach a compromise, Trend reports.

"We recognize that Azerbaijanis and Armenians have a major
responsibility with regards to the resolution of the conflict. Russia
would be prepared to support both countries and is willing to act a
guarantee should an agreement be reached," he stated.

He stressed that Russia is eager to further assist both countries in
achieving a solution to the conflict.

PRESS OFFICE
Diocese of the Armenian Church of America (Eastern)
630 Second Avenue, New York, NY 10016
Contact: Jake Goshert, Coordinator of Information Services
Tel: (212) 686-0710 Ext. 160; Fax: (212) 779-3558
E-mail: [email protected]
Website:

November 7, 2006
___________________

ST. JAMES MARKS 50 YEAR ANNIVERSARY

By Jake Goshert

Fifty years ago, the founders of the St. James Church of Richmond, VA,
decided not to build an Armenian-style church. Instead, they built a
non-descript sanctuary.

"The reason was that the people were thinking in just 10 or 20 years there
wouldn’t be any Armenians living in Richmond," said the parish’s current
pastor, Fr. Hovsep Karapetyan. "But today we are celebrating our 50th
anniversary. And who knows, in 50 years maybe we’ll have more people here
and need a bigger church. It’s all in God’s hands. But I believe, and I
pray, that this church will continue to flourish and grow."

The parish marked its first 50 years with a banquet on Saturday, October 21,
2006, followed by a special Divine Liturgy on Sunday, celebrated by
Archbishop Khajag Barsamian, Primate of the Diocese of the Armenian Church
of America (Eastern).

HISTORY OF DEDICATION

The Armenian community in Richmond grew in the early 1900s as Armenian
immigrants found work in the region’s booming industrial sector. They had
church services in a rented Episcopal hall, but as the community grew they
hungered for a home of their own.

They began to raise the $45,000 needed to build a church, and by 1956 had
completed their dream. The St. James Church became the first Armenian
Church between Washington, D.C., and Florida.

During the banquet and badarak, which drew 160 people, some of the parish’s
historic leaders were honored. The parish honored the three living
godfathers of the parish, Gerry Sharigian, and brothers Henry and Robert
Magarian.

"The vision and efforts of these early men and women are what laid the
foundation for this church," said Dr. Michael Vranian in an anniversary DVD
produced by the parish. "This church is truly their living legacy."

One of the first parish council members, John Baronian, was presented with a
pontifical encyclical and the St. Nersess Shnorhali medal on behalf of His
Holiness Karekin II, Supreme Patriarch and Catholicos of All Armenians.

"You have ceaselessly undertaken many duties on parish and Diocesan levels,"
the Catholicos wrote in the encyclical. "Through the voluntary services of
faithful Armenians like you, our church becomes stronger, enlightening the
path of our people with life-giving faith."

Getting involved in the church was a family affair for Baronian, who says
seeing his parents involvement with the church at an early date made him
want to step forward and serve the community.

"I just never not think of not being involved. It’s not a question of why
I’m involved. It’s like getting up in the morning, just something that is
part of me," he said. "

The weekend also saw the dedication of a khatchkar for the parish, which was
donated by Baronian in memory of his late wife, Margie.

"In our lives we need examples," Fr. Karapetyan said. "We need heroes and I
pray that this older generation can serve as a great example for the younger
generation. We have younger people participating in our anniversary
activities and they saw how moving it was when these 85-year-old men came
forward to receive their awards. There were tears in his eyes and he was
filled with joy and pride. It is a great example for the younger generation
to see the dedication of this older generation."

CHANGING FUTURE

Though the focus of the weekend was the past, it was also a chance to think
about the future of the St. James Church.

"This joyous occasion, during which we reflect on the accomplishments of
this parish over the past 50 years, we also consider the possibilities for
this community 50 years from now," the Primate said in his sermon. "We have
accomplished much, but we have miles still to go."

"We have to reflect on and honor the toils of those before us, who built for
us this holy place," the Primate added. "We have to pause long enough to
reflect on our own lives and ask weather we have led accountable lives
before their memory, before our children, and before our God."

Fr. Karapetyan agrees that the celebratory weekend energized the community.
No longer is the parish made up of just first-generation immigrants from
historic Armenia. Today the community is made up of second- and
third-generation Armenians, as well as immigrants from throughout the
Diaspora.

And while he is not sure of the future of the parish, he knows the faith of
its parishioners is strong.

"The church stays the same," he said, noting the demographic changes in the
community. "In its essence the Armenian Church can never change, because it
is based on the teachings of Jesus and his Apostles."

"This 50th anniversary is a great opportunity for us to acknowledge and
recognize the past," he added. "It’s a very important legacy that was left
for us. But the anniversary is also an opportunity for us to acknowledge
the present and to look at the future and renew our commitment to the
church. Running away from the church is easy, anyone can do that. The
challenge for us today is to find ways to make the Armenian Church a very
important part of our lives and the lives of our families, to find time to
teach our children about our heritage, our faith, our history, our culture."

— 11/7/06

E-mail photos available on request. Photos also viewable in the News and
Events section of the Eastern Diocese’s website,

PHOTO CAPTION (1): Archbishop Khajag Barsamian, Primate of the Eastern
Diocese, is joined by parishioners and guests of the St. James Church of
Richmond, VA, during the consecration of a new khatchkar as part of the
celebrations marking 50 years of the parish.

PHOTO CAPTION (2): Archbishop Barsamian and Fr. Hovsep Karapetyan, pastor
of the St. James Church of Richmond, VA, present parish leader John Baronian
with a pontifical encyclical and St. Nersess Shnorhali medal on behalf of
His Holiness Karekin II, Supreme Patriarch and Catholicos of All Armenians,
during the parish’s 50th anniversary celebration on October 21, 2006.

PHOTO CAPTION (3): The Primate delivers communion at the St. James Church
of Richmond, VA, during the Divine Liturgy on October 21, 2006, which marked
the parish’s 50th anniversary.

WHAT WILL TELETHON 2006 BE LIKE

Lragir, Armenia
Nov 6 2006

On November 4 NKR President Arkady Ghukasyan left for the United
States for the preparation of the annual telethon in Los Angeles on
November 23.

There is special attention in the upcoming telethon. Not because
the donations will be spent for the reconstruction of the region
of Hadrut. The point is that this year there have been a number of
accusations against Armenia Foundation from Karabakh. And a number
of questions have occurred. First, why the telethons fail to raise
the pledged sum. Second, why the style of work of the foundation has
not changed over these years although it is said to be uneffective.

Moreover, uneffectiveness is connected with the lack of confidence.

Third, will the telethon raise sums if a decision was made during the
Armenia-Diaspora forum to launch a large-scale project in rural areas?

But this is not the complete list of questions. How will the telethon
pass, for this is the first time when the activities of the foundation
and its relation with the Karabakh government get a backlash? Will
the Armenian Diaspora in Russia take part in the telethon? How will
the telethon pass in Europe after the adoption of the law on the
Armenian Genocide by the French parliament?

The telethon will tell much about the all-Armenian relations and
the all-Armenian organizations. Especially that the topic of these
organizations has become a burning issue considering that the terms
of office of the presidents of the both Armenian states are ending.

RA DM CONSIDERS STATEMENTS OF SOME OPPOSITIONAL FIGURES ABOUT "PERSECUTION BY POWER STRUCTURES" RIDICULOUS

ArmInfo News Agency, Armenia
Nov 6 2006

"The statements of some oppositional figures, of the "New Times"
party " leader, Aram Karapetyan, in particular, about persecutions by
the power structures ridiculous", RA Defense Minister, the Chairman
of the Board of the Republican party of Armenia, Serzh Sarkissyan,
told the journalists today.

"It is very difficult to say what hazard may these people pose to put
pressure upon them. Perhaps, they try to be self- affirmed in such a
way. These figures have a loose tongue, you know, the situation is
not such it was 5, 7 or 10 years ago, when a head could be broken
for one word", S. Sarkissyan said. Talking of the opposition’s
intention to allocate its candidates in 41 majority districts, the
Minister noted it is a good plan but hardly implemented, since it
will be difficult for the opposition to find so many leaders. "There
are two-three people in the whole opposition who could win per the
majority system", the Minister said, however, he did not call the
names of these oppositionists.

JUSTICE BLOCK SAYS IT IS NOT JUDGE OF CRU

Panorama.am
15:41 04/11/06

The leadership of Constitutional Right Union (CRU) have reportedly
sold their places at the election committees and received sums of
money against the serice. However, Justice block member, Stepan
Zakaryan, said they are not judges of CRU. He said every party in
the alliance is responsible for its places at the committees. He
said Justice block will not participate in the same composition
at the parliamentary elections. "Time and situation have changed,"
he said. As a secretary of Armenian Democratic Party (ADP), Zakaryan
said ADP will cooperate with such political forces that will promote
independence of Armenia. He sees no borders of cooperation with the
party led by Tigran Karapetyan.

Commenting on Karapetyan’s recent statement that Jesus Christ
was the biggest political figure, Zakaryan said, "It is
ignorance".

IT IS ENVISAGED TO PROVIDE SUBSIDIES OF 17.98 BILLION DRAMS TO ARMENIAN COMMUNITIES IN 2007

Noyan Tapan
Nov 04 2006

YEREVAN, NOVEMBER 4, NOYAN TAPAN. By the 2007 draft state budget,
the total amount of financial equalization subsidies to be provided
to Armenia’s communities will make 17.98 bln drams, which exceeds
by 22.6% or 3.3 bln drams (about 8.68 mln USD) the 2006 index. This
amount was calculated based on the requirement of the RA Law on Local
Self-Government, according to which it shall make no less than 4% than
the sum of actual revenues of the RA consolidated budget in the second
budgetary year preceding the given budgetary year. In this case, 4%
of the total sum of revenues of the 2005 consolidated budget (449.5
bln drams) was taken as the basis. RA Deputy Minister of Finance and
Economy Pavel Safarian said this when presenting the issue of the
2007 draft state budget-envisaged financing of local self-government
bodies at the November 3 joint sitting of the RA National Assembly
standing committees. 460 mln drams out of the indicated sum is
envisaged for financing the compensation to be given to community
budgets due to privileges. However, according to the deputy minister,
the calculation of compensation sums is still continuing, and it
is not ruled out that they will undergo some changes in the final
version of the draft to be submitted to the NA. First Deputy Mayor
of Yerevan Kamo Areyan said that in 2007 the total amount of state
subsidies for 12 district communities of Yerevan is envisaged to make
5.6 bln drams against 4.941 bln drams in 2006. The 2007 expenditures
on maintenance of the mayor’s office governance staff also increased
by 104 mln drams on 2006, making 584.187 mln drams. This increase is
mainly conditioned by a growth in the salaries of civil servants.