Category: News

BOXING: Team USA’s Vanes Martirosyan Grabs First Win at Athens Test Event
Sports Features Communications (press release), FL
May 28 2004
COLORADO SPRINGS, COLO. – United States welterweight (152 lbs/69 kg)
Vanes Martirosyan recorded a win in his first bout of the Athens Test
Event on Thursday evening at the Peristeri Olympic Boxing Hall in
Athens, Greece. Martirosyan defeated Bulent Ulusoy of Turkey, 23-14,
in their quarterfinal match-up, and the first bout of the tournament
for both Martirosyan and the U.S. team.
Despite early nervousness in the contest, Martirosyan pushed
through a tough first round to pull out the preliminary victory.
Martirosyan’s Armenian background contributed to his nervousness,
knowing the battles that his homeland had faced with Turkey, but
strong advice from his father helped Martirosyan turn his attention
back to business in the ring.
“My dad told me to forget about the past and have fun, and that’s
what I tried to do,” Martirosyan said. “I knew that my opponent was
very good, but I listened to the instructions from my corner and used
my jab. ”
Head Coach Basheer Abdullah praised his boxer’s victory in his first
bout of the competition, but saw room for improvement. “Overall I
give him a B-,” Abdullah said. “It was a good start for Vanes. He was
a little nervous and it showed but he put it all together and pulled
out the win.”
Martirosyan will face Cuban World Champion, Lorenzo Aragon in
Saturday’s semifinal action, and the 18-year-old Olympian is ready
for the challenge.
“I feel great, and I am going to go into the ring with a lot of
confidence on Saturday,” Martirosyan said.
Middleweight (165 lbs/75 kg) Andre Dirrell of Flint, Mich., will
be the next U.S. boxer to compete in Athens when he faces off with
China’s Dabateer Ha on Friday evening.

VTB intending to acquire a majority stake in one of Georgian bank majors.
Analytical Information Agency, Russia
May 28 2004
Vneshtorgbank (or VTB) is intending to acquire a majority stake in one
of Georgian bank majors. VTB said the principal agreement on the issue
has been announced over the formal meeting of Georgian’s President
Mikhail Saakashvili with the delegation of Russian manufacturers
headed by the RF Economic Development Minister German Gref.
As informed earlier, VTB completed the deal in March to get 70%
stake in Armsberbank, second largest bank of Armenia.

The Death of Green Spaces
by Edik Baghdasaryan
Transitions Online, Czech Republic
May 28 2004
They may have botanical names, but there is no disguising that the
cafes blossoming in Yerevan are destroying parks – and bearing rich
fruits for public officials.
YEREVAN, Armenia – In 1988, the large, leafy public square next to
the Opera House in Yerevan was renamed Freedom Square, in honor of
the movement that eventually led the country to independence from
the Soviet Union in 1991.
With its benches, open spaces, and trees, the square has long been a
popular place for people to come and relax. Grandparents come to take
their grandchildren for a walk, kids to roller-skate, and couples to
romance each other. It has also long served as a gathering point for
the opposition.
All that is changing at alarming speed, however, as the square’s green
spaces are paved over to make room for cafes, restaurants, and dance
clubs. So many of these places have sprung up that in some corners
of the square it is impossible to tell where one establishment stops
and another begins – the outdoor tables and chairs all run together,
and the music from competing loudspeakers merges.
Every time a café is built, another bit of public space is lost.
Here, dozens of trees have been felled, benches have been ripped
up, and grass has been replaced by cement patios. It’s a phenomenon
that can be seen across the city. According to the Social Ecological
Association, more than 700 hectares of trees have been chopped down
over the past decade in Yerevan’s construction boom.
“I don’t bring my grandson [to the park] anymore, because there are
cafes everywhere and no benches,” said Sargis Torosian, a 72-year-old
pensioner. “We used to spend every evening here, but now we have no
place to go.”
“What happened to the Himalayan cedars that are so rare in our city?
Or the grapevines and persimmon trees that used to grow where the
Astral Disco is now?” asks biologist Gohar Oganezova. “Most of
the firs have dried up over time as their roots come up against the
concrete base of the cafes. A plane tree whose branches got entangled
in the fence has withered. Two years ago, it was a wonderful, viable
tree. The fir trees along the path next to the Atlantic Café are
drying up, too. Last season they were almost leafless, their roots
are so damaged.”
By law, it shouldn’t be happening this way. According to government
records, the building permits for most of the cafes violate the city’s
own ecological and planning standards. The rules say that before
construction can begin on a new establishment, an owner must submit a
design that meets the approval of ecologists. According to 2002 data
from the Ecology Ministry, only one of the 12 cafes in Opera Square,
the Astral, followed that procedure.
Yerevan’s chief architect, Narek Sargisian, defends the onslaught
of development as a market response to public demand. “If so many
cafes are being built, it means that there is a demand for them,”
he said. Sargisian admits that the park’s planners didn’t anticipate
the displacement effect that the retail establishments would have on
people who are looking for a public green space to relax in. On the
other hand, he said, “the cafes are always full.”
But they’re not making much money, or so believes Srbuhi Harutiunian,
head of the Social Ecological Association. Harutiunian said his group
had undertaken an unofficial survey of the park’s café and restaurant
owners and came up with surprising results.
“We found that 40 percent of these establishments are unprofitable,”
Harutiunian said. “Among the rest, 40 percent don’t worry about profit
at all [and are more interested in the prestige of their location],
and the remaining 20 percent secure a profit only by not paying
their taxes.”
Yet the building continues. To understand why, it’s necessary to
look at who’s behind the chattering crowds, loud music, and frothy
cappuccinos.
THE WINDFALL FROM CUTTING TREES
Ordinary Armenian businesspeople patronize the restaurants and cafes
around Opera Park, but they certainly don’t own them. So far, at least,
it seems that ownership is a privilege reserved for the political
elite – members of parliament, ministers, influential bureaucrats,
and their cronies. The concreting over of Yerevan’s green spaces has
been enabled by a loophole in the city’s law on allocation of land
that has allowed the city to chop up and sell small café-size plots
that it owns. Any plot larger than 20 square meters must be sold
at public auction; anything less can be quietly sold to any buyer,
for any price. Former Mayor Robert Nazarian, a man appointed by the
president, was a champion of the loophole.
Although he is no longer in office, Nazarian’s legacy of political
favoritism continues to deprive the city treasury of public funds
and to line the pockets of government officials who “bought” parcels
of land. A case in point: recently, according to reliable sources,
a café in Freedom Park that was owned by a senior government official
sold for $250,000. The official had spent $15,000 on the land on which
the café has constructed. His final take after including construction
costs? More than $220,000.
Some estimates of the total losses to the state treasury from corrupt
land sales near the Opera, where 15 companies have built cafes,
exceed $1 million.
Typically, the new owner begins to expand his cafe. After the event,
the Mayor’s Office “legalizes” the expansion of the café rather than
taking action against the owners – who are high-level public officials.
Whatever the procedure, the results can be gargantuan. In early 2002,
Nazarian “sold” a 20-square-meter plot of parkland to a company
(inappropriately) named Magnolia. The area of the plot has continued
to expand until today. According to the city’s Architecture and
Planning Department, the Magnolia Café occupies a staggering 2,615
square meters, making it the largest establishment in the park. The
businessman who managed to take over so much land? Grigor “Bellagio
Grish” Margarian, a member of parliament from the Orinats Yerkir Party.
Nazarian has explicitly intervened in some developments. In January
2002, a company named Only Merriment requested permission to buy
a plot of land and build a video arcade next to Freedom Square.
Permission was granted, and approval from the city planning department
awarded. One month later, Only Merriment was allowed to acquire an
additional 312-square-meter plot of land adjacent to the arcade site,
to build an outdoor café.
Then, one month after that, Nazarian abruptly amended both decisions
and issued blanket permission to Only Merriment to build a combined
arcade-café, although this hybrid had never been approved by the
city’s architecture department. Only Merriment was re-registered as
Atlantic Garden and, according to official documents, was authorized
to occupy 332 square meters in a public tender. Today, it’s hard to
tell how much of the park Atlantic Garden occupies – much more than
332 square meters, though, since, during construction the building
was considerably expanded by its owner. The owner? Anush Ghazaryan
(better known as Kamvolny Anush, or Pretty Anush), a man widely thought
to enjoy the protection of National Security Minister Karlos Petrosian.
Levon Khachatrian, a member of parliament, has also benefited from
the generosity of the Mayor’s Office. Just as with Only Merriment
and Magnolia, the major expansion of his café was within the law:
Khachatrian first received a 20-square-meter plot and then permission
to expand the plot. Khachatrian’s café today obscures part of the
Opera House from Sayat-Nova Street.
Asked recently if any establishment in Freedom Square of the area
near the Opera House was built according to city-approved plans,
chief architect Sargisian replied with one word: “No.”
KEEPING PUBLIC RECORDS PRIVATE
Official corruption in Armenia is a problem recognized by a host of
international organizations. The Office for Security and Cooperation
in Europe has been at the forefront of international efforts to bring
attention to the problem and help the government tackle it, in part
with the help of a joint OSCE-Armenian task force. President Robert
Kocharian has even appointed a special adviser to coordinate the fight.
So why hasn’t anything been done to stop the corrupt practices
that are doing obvious damage to public life in the capital?
“Unfortunately, the people with power in this city are above the
law,” says biologist Oganezova, voicing a common public sentiment.
“But they don’t realize that they, too, lose. We lose our city’s
environment, literally and figuratively.”
He may have final approval over all new construction and land sales
in the capital, but chief architect Sargisian says he can do nothing.
“I try to do everything in my power, but there are too many senior
officials in our government. They build these structures and consider
themselves to be above the law,” he said. But, as someone who has
kept his post through three mayors, Sargisian has become vulnerable
to accusations by some nongovernmental organizations that he allows
the situation to continue.
In November 2003, two months before he was dismissed from office,
Mayor Nazarian admitted to reporters that he had come under pressure
by government authorities to approve the land sales. Ninety-nine
percent of the cafes near the Opera House were illegal structures,
he acknowledged, adding, “We did not approve these designs.” But none
of the structures was torn down. In fact, since he made those remarks,
new ones have gone up.
According to City Deputy Kamo Areyan, current Mayor Yervand Zakharian
has given his staff a “strict order” to examine how building licenses
and land sales are approved.
Armenia’s Association of Investigative Journalists has tried several
times to gain access to mayoral decisions on land allocations during
the period from 1997 to 2003, without success. Zakharian has refused
to provide the group with this public information and has not given
an explanation for his refusal. President Kocharian has refused to
intervene. The matter is now with the courts.
Edik Baghdasaryan is the editor-in-chief of the Armenian daily
***HETQ*** and a member of the Association of Investigative
Journalists.

Georgia: Moscow, Tbilisi Open ‘Historic’ Business Talks
By Jean-Christophe Peuch
Radio Free Europe, Czech Republic
May 28 2004
Dozens of businessmen have gathered in Tbilisi to attend the first
Russian-Georgian economic forum. Over the next two days (28-29 May),
Russian private entrepreneurs and government officials will discuss
investment opportunities with their Georgian counterparts. This
unprecedented initiative testifies to the new relationship that has
been growing between Moscow and Tbilisi since the recent change of
leadership in the Georgian capital. The development of Russian-Georgian
economic ties is likely to have important consequences for the entire
South Caucasus region.
Prague, 28 May 2004 (RFE/RL) — Georgia’s Rustavi-2 private television
yesterday said dozens of airliners carrying loads of Russian
businessmen were expected at Tbilisi airport ahead of the conference.
Although the report eventually proved exaggerated, it gives a good
indication of the importance the Georgian side attaches to the event.
Georgian President Mikheil Saakashvili is expected to inaugurate the
two-day forum, which will be attended by Russian Economic Development
and Trade Minister German Gref.
Participants include top managers of Russia’s Unified Energy Systems
(EES) electricity monopoly and Aeroflot national air carrier, as
well as representatives of LUKoil, TransGazOil, Rosnefteeksport and
other energy companies. Prime Minister Zurab Zhvania, Economy Minister
Irakli Rekhviashvili, Finance Minister Zurab Nogaideli, and Interior
Minister Giorgi Baramidze will represent the Georgian government.
Included on the Russian delegation’s agenda is a tour of Kakheti,
Georgia’s most important wine-growing region. The perception of Russia,
which helped secure Shevardnadze’s resignation — and more recently
that of Aslan Abashidze, the unruly leader of the Black Sea autonomous
region of Adjara — has obviously changed in Tbilisi.
Although this is the third time both countries have held business
talks since 1991, never before have talks been conducted on such a
large scale. In comments made to Georgia’s state television upon his
arrival in Tbilisi, Gref said that Russia sees today’s forum as a
“symbol” of its new relations with Georgia.
Vladimir Chkhikvishvili, Russia’s ambassador to Georgia, told reporters
yesterday the upcoming event would mark a milestone in the history
of bilateral ties. “It is both a political and economic event for
our bilateral relations,” he said. “More generally, one could even
say that this is a historical event. As far as I know, it’s been a
long time since such a large and high-level Russian delegation has
come to Georgia.”
A Georgian official statement says neither of the first two bilateral
business conferences has produced any concrete results despite
Tbilisi’s willingness to open its market to Russian capital.
The last Russian-Georgian economic consultations were held in October
2003, just days before street protests spearheaded by Saakashvili and
Zhvania forced then-President Eduard Shevardnadze out of office amid
controversy over disputed parliamentary elections.
Since then, Russian-Georgian relations have significantly improved.
Both Saakashvili and Russian President Vladimir Putin have pledged to
foster political and economic ties between their countries, prompting
positive reactions from the United States, which sees stability in
the Caucasus as key to its foreign-policy agenda.
The perception of Russia, which helped secure Shevardnadze’s
resignation — and more recently that of Aslan Abashidze, the unruly
leader of the Black Sea autonomous region of Adjara — has obviously
changed in Tbilisi.
When they were still in the opposition, Georgia’s current leaders
were among the fiercest critics of Russia’s economic presence in the
country, in particular in the energy field. But now they have adopted
a radically different stance. During a visit to Moscow earlier this
week, Zhvania secured an agreement over the rescheduling of Georgia’s
debt toward Russia, thus paving the way for the resumption of talks
between his government and the International Monetary Fund.
At a meeting with his Russian counterpart Mikhail Fradkov, the Georgian
prime minister welcomed the warming of bilateral ties that followed
Shevardnadze’s departure. “I believe we have now the opportunity to
build a new, closer relationship between Georgia and Russia. To our
great satisfaction, we note that our relations can now develop in a
climate of much greater trust,” Zhvania said.
The two prime ministers agreed to draft a comprehensive economic
treaty that would pave the way for an increased Russian presence in
Georgia’s energy sector.
Addressing reporters at the end of his visit, Zhvania praised
Russia’s EES monopoly for helping his country meet its electricity
needs this past winter. Last December, EES acquired a 75 percent
share in Telasi, the formerly U.S.-owned electricity-distribution
company that services Tbilisi. It also purchased majority stakes in
the Mtkvari power station and other Georgian energy facilities.
EES Chairman Anatolii Chubais has hinted that the company could use
Georgia as a springboard for expanding its presence in Azerbaijan
and beyond. In remarks made during a visit to Baku on 25 May, Chubais
floated the idea of connecting the power grids of Russia, Azerbaijan,
and Iran. He also said his company could help Georgia trade electricity
with neighboring Azerbaijan.
Normalization of Russian-Georgian ties would have another positive
impact on the region’s economy. Having secured its authority over
Adjara, Georgia counts on Moscow’s help to restore control over the
northwestern region of Abkhazia, which formally seceded in 1993 to
develop close political and economic ties with Moscow.
Zhvania this week hinted that in return for Russia’s assistance
in solving the decade-old Abkhaz conflict, Georgia could lift its
objections to the reopening of railroad connections between Russia and
landlocked Armenia through Abkhazia. “We will see how things develop
[with regard to Russian-Georgian ties] and, naturally, any significant
progress in that direction will allow us to consider the opening of
[this] railway line,” he said. “This would be an extremely important
development for our entire region. This is a very important question,
not only for Georgia and Russian-Georgian ties, but also for the
entire South Caucasus region.”
Rail communications between Russia and Armenia were disrupted during
the Abkhaz conflict and, despite an agreement reached at a 1994 CIS
summit, were never restored.
Rail traffic between the Abkhaz capital Sukhum and the Russian Black
Sea port of Sochi resumed early last year amid protests from Tbilisi.
Georgia links the reopening of the Sochi-Sukhum-Tbilisi-Yerevan
transport route — one of Putin’s pet economic projects — to the
repatriation of internally displaced ethnic Georgians to Abkhazia’s
southern Gali district.
Ethnic Georgians made up the bulk of the Gali population before
the war and, although most internally displaced people now have
the opportunity to return to the area, Tbilisi is seeking security
guarantees for them. Fradkov this week said Moscow and Tbilisi had
agreed to seek a solution to the Gali issue that would meet the
interests of all sides involved.
In another good sign, while insisting that the Gali and railroad
problems should be solved at the same time, Georgian parliamentary
speaker Nino Burdjanadze said yesterday that Tbilisi was ready to
look at the whole Abkhaz issue “with new eyes.”

OFFICE OF THE NAGORNO KARABAKH REPUBLIC IN THE USA
122 C Street, NW, Suite 360, Washington, D.C. 20001
Tel: (202) 347-5166
Fax: (202) 347-5168
E-mail: [email protected]
Web site:
ARTSAKH NEWSLETTER
Vol. 6, no. 2
February – May 2004
The ARTSAKH NEWSLETTER is a publication of the NKR Office in Washington,
D.C., the official representation of the Nagorno Karabakh Republic in the
United States.
In this issue…
1. LIBERATION OF SHUSHI, VICTORY AND NKR ARMY DAY MARKED IN ARTSAKH
2. PRESIDENT GHOUKASIAN’S MAY 9 MESSAGE
3. NAGORNO KARABAKH PEACE PROCESS
4. NK ECONOMY CONTINUES TO GROW
5. RESTORATION OF SHUSHI IS OF PAN-ARMENIAN IMPORTANCE
6. CHESS TOURNAMENT IN STEPANAKERT
1. LIBERATION OF SHUSHI, VICTORY AND NKR DEFENSE ARMY DAY MARKED IN ARTSAKH
May 9 marks a triple holiday in Nagorno Karabakh – Liberation of Shushi,
establishment of the Defense Army and the victory of the Allies in the
Second World War. Public celebrations and sport competitions took place
throughout Nagorno Karabakh, drawing large crowds of people.
On May 8, an official delegation from Armenia, headed by President Robert
Kocharian, arrived in Stepanakert to take part in the festivities. The
following morning, the Armenian delegation joined President Arkady
Ghoukasian and other senior officials in a wreath laying ceremony at the
monuments of the legendary Artsakh Liberation War hero Ashot “Bekor”
Ghoulian and Marshal of the Soviet Union Hovhannes Baghramian. The group
also visited the Memorial Complex to pay tribute to the soldiers killed
during the Artsakh War and Second World War.
The dignitaries visited Shushi, stopping on the way at the monument to the
first tank that led the way to Shushi’s liberation in 1992, and laid flowers
at the monument to the late Prime Minister of Armenia and Artsakh Hero,
Vazgen Sargsian.
That night, an open-air concert was held in Stepanakert with a special
performance by the units of the Defense Army. Popular singers and
performers from Armenia and Artsakh entertained a crowd of several thousand
people at the central Revival Square in Stepanakert. The concert was
followed by a spectacular fireworks show.
2. NKR PRESIDENT ARKADY GHOUKASIAN’S MESSAGE TO THE PEOPLE OF NAGORNO
KARABAKH REPUBLIC (translated from Armenian)
On May 9, in connection with the holiday, NKR President Arkady Ghoukasian
issued a message to the people of the NKR, which, in particular, reads:
May 9 is a great holiday for our country. This day has always been dear to
our nation. Not very long ago, on May 9 we celebrated the victory of our
common Motherland against fascist Germany in the Great Patriotic War, a war
where every second soldier from Artsakh was killed. However, 12 years ago
May 9 acquired a special meaning for us, becoming distinctly significant for
the Armenians of Artsakh. On this day Shushi was liberated and again became
Armenian, as it should be. Shushi was liberated by the NKR Defense Army,
which surprised the world with its valor and military efficiency. On May 9
the Army also celebrates the day of its creation. Thanks to the successfully
conducted Shushi operation, the “Road of Life” to mother-Armenia was opened,
which saved the Artsakh people from the threat of full physical
annihilation. This is the historical importance of the liberation of Shushi.
It is very symbolic that we celebrate these three holidays on the same day.
This coincidence symbolizes the succession of generations. The glorious
military traditions of our grandfathers and fathers, who worked miracles of
courage and valor during World War II, were duly continued by the new
generation of the people of Artsakh, who obtained and defended the freedom
and independence of Artsakh in the battles against the enemy, which greatly
surpassed them in number and arm. Eternal memory to all those who perished
for the happy future of Artsakh! The duty of the living is not to let the
blood shed by them be in vain. Glory to our war veterans! The government
will continue paying great attention to their needs and problems.
The NKR Defense Army, formed in the furnace of the struggle for
independence, remains the most reliable guarantor of the security of the
Nagorno Karabakh Republic and its people. Today, when Azerbaijan tries to
hinder the course of history, cherishing revanchist hopes to solve the
Karabakh problem by force, we have no right to weaken the military
construction; we must equip the army with most modern weapons, and increase
its fighting skills.
At the same time, I restate with full responsibility that the NKR Defense
Army is an army of peace. Its priority was and remains the defense of
Nagorno Karabakh and its population from external aggression. I assure you
that our army is ready to properly repulse the enemy if it dares to violate
our peaceful life and encroach upon our independence.
Dear compatriots, these May holidays coincide with another important date:
10 years ago Azerbaijan, Nagorno Karabakh and Armenia signed an agreement to
cease-fire in the area of the Karabakh conflict. At that time, Azerbaijan
had to recognize Nagorno Karabakh as a party to the conflict and signed the
armistice only due to the success of our army. And the merit that the
cease-fire regime has held belongs first of all to the strength and power of
the NKR Defense Army, which defends our motherland. That’s why our army is
one of the most efficient guarantees of maintaining the peaceful process of
the settlement of the conflict with Azerbaijan. I would like to assure you
that the NKR leadership remains committed to the peaceful settlement,
considering it to be without alternatives in the solution of the Nagorno
Karabakh problem.
My congratulations to you on the Day of our common Victory, dear people of
Artsakh! I wish all of us peace, prosperity and happiness!”
3. NAGORNO KARABAKH PEACE PROCESS
On April 28 Presidents of Armenia and Azerbaijan, Robert Kocharian and Ilham
Aliyev met for the second time in recent months in an attempt to revive
negotiations on the Nagorno Karabakh conflict. Both presidents characterized
the meeting that took place on the sidelines of the European Economic Forum
in Warsaw, as ‘very constructive’ and agreed to continue the dialogue. The
French, Russian and US Co-Chairmen of the Organization of Security and
Cooperation of Europe’s (OSCE) Minsk Group joined the first part of the
meeting, leaving the leaders to negotiate one-on-one for the remainder of
the talks.
The newly appointed U.S. Co-Chairman of the OSCE Minsk Group Steven Mann,
who replaced Rudolf Perina, also characterized the meetings as very useful.
On his visit to Armenia in early May, Mann met Armenian and NKR leaders and
voiced the U.S. government’s support for continuing the peace process within
the framework of the OSCE Minsk Group, saying that the peaceful settlement
of the Nagorno Karabakh conflict was in the national interests of the United
States. He also said that he intended to visit Stepanakert during his next
visit to the region.
In related news, on February 23 the Rapporteur of the Parliamentary Assembly
of the Council of Europe (PACE) on Nagorno Karabakh Terry Davis visited
Stepanakert for the first time with a fact-finding mission. He met Nagorno
Karabakh President Arkady Ghoukasian, the National Assembly Chairman Oleg
Yesayan and other senior government officials. On March 17 President
Ghoukasian met with an OSCE delegation headed by the organization’s
Chairman-in-Office, Bulgarian Foreign Affairs Minister Solomon Passy. The
president underlined the necessity of NKR’s participation in the negotiation
process and called on Passy to create conditions for direct talks between
Nagorno Karabakh and Azerbaijan. For his part, Passy pointed out the
necessity of restarting negotiations among the involved parties and also
noted that as the current Chairman of OSCE he will make every effort to
achieve it.
4. NAGORNO KARABAKH’S GDP GREW 20% in 2003
At a recent cabinet meeting NKR Prime Minister Anoushavan Danielian
announced that the real gross domestic product (GDP) growth reached 20
percent, while the exports amounted to $14 million. He said that the growth
was due to the government’s decision to attract investors with significant
tax incentives, market liberalization and elimination of monopolies. Since
its introduction in 2000, the policy has had a great impact on the level of
foreign investments and on the state of economy as a whole. Businessmen
from Armenia, Australia, Great Britain, Iran, Lebanon, Monaco, Russia,
Switzerland, United States have already invested in NK’ s economy, bringing
in around $40 million. The investments of Karabakh Telecom company
(Lebanon), for example, have already reached $10 million, while the tourism
industry is being developed by Australian, Iranian and American investors.
Foreign investments impact positively on the development of Karabakh’s
industry. As a result, in 2000, industrial growth amounted to 17 %, in 2001
it reached 22 %, in 2002 – 36 %, and in 2003 – 44 %. Danielian mentioned
the Drmbon copper and gold mines as well as Martuni and Karmir Shuka wine
distilleries as examples of successful businesses. Currently, about 18
business proposals, mainly in the energy sector, are awaiting investments.
The Prime Minister hopes that in the near future NKR will be able to export
energy.
According to the National Statistics Service, a similar level of economic
growth was registered in the first quarter of this year. In January-March
2004, the volume of the gross domestic product (GDP) made 6.1 billion drams
($11m, $1 = 550 drams) having grown by 23%.
Nagorno Karabakh’s industrial output reached 3.8 billion drams ($6.9m) in
the same period, having increased by almost 70% as compared with 2003. The
volumes of realized production made 3.2 billion drams ($5.8m), and the
volume of production of consumer goods made 1.4 billion ($2.5m) drams
instead of 1 billion ($1.8m) last year.
The volume of agricultural production made 1.4 billion drams ($2.5m) in the
same period with an 8% increase over 2003. The average salary is 36,170
drams ($66), having increased by 14% compared with the last year’s average.
In January-March 2004, the volume of foreign trade turnover made 14.7
billion drams ($26.8m), having increased by 44% compared to the same period
of last year.
5. NKR PM: RESTORATION OF SHUSHI IS OF PAN-ARMENIAN IMPORTANCE
Given Shushi’s historical and cultural value, the restoration and
repopulation of the town must become a priority for Armenians around the
world. NKR Prime Minister Anoushavan Danielian proposed to organize a
Pan-Armenian conference with the aim of turning Shushi into a cultural and
tourist center of the South Caucasus – a status the town enjoyed until early
1900s.
Shushi was significantly damaged during the Karabakh war in 1991-1994.
Taking advantage of its commanding position over Stepanakert, the capital of
Nagorno Karabakh, after expelling its Armenian population, Azeris turned
Shushi into a launching pad for artillery attacks. Karabakh Armenian forces
reclaimed control over Shushi in May 1992.
Prime Minister Danielian says, if given a priority, Shushi can be restored
within 5 years.
6. KARABAKH HOSTS CHESS TOURNAMENT (By Emil Sanamian, AAA)
A first major international sporting event concluded this week in
Stepanakert amid largely unsuccessful efforts by Azerbaijan to undermine it.
The Tigran Petrosian memorial tournament brought together some of the
strongest chess players from Armenia, Latvia, Georgia, Iran, Poland, Russia
and Switzerland. Petrosian, an Armenia native, was the world champion for
much of the 1960s, before being defeated by Boris Spassky. Spassky, now a
French national and retired from the game, was the guest of honor at the
Stepanakert tournament.
Chairman of the International Chess Federation, FIDE, Kirsan Ilyumzhinov
sent a letter welcoming the competition as contributing to the ‘unique
Armenian chess culture.’ One of the world’s strongest chess players, Garry
Kasparov, welcomed the selection of Stepanakert as the site for the
tournament as another confirmation that Karabakh has overcome the difficult
post-war legacy. Kasparov, whose mother is an ethnic Armenian, was forced to
flee anti-Armenian violence in his native Baku in 1990.
The Azerbaijani government put pressure on chess federations of
participating nationals to recall their players and judges, claiming that
their participation was ‘illegal.’ Two players, a Georgian and Iranian were
forced to withdraw towards the end of the tournament, which Spassky
described as a ‘real chess celebration.’
In the end, Armenia’s Karen Asriyan narrowly won the hard-fought series with
six out of nine possible points. Bartlomiej Macieja of Poland was a close
second with 5.5 points and Gabriel Sargsian of Armenia was third with 5
points.
* * *
The Office of the Nagorno Karabakh Republic in the United States is based in
Washington, DC and works with the U.S. government, academia and the public
representing the official policies and interests of the Nagorno Karabakh
Republic.
This material is distributed by the office of the Nagorno Karabakh Republic
in the USA on behalf of the government of the Nagorno Karabakh Republic.
The office is registered with the U.S. government under the Foreign Agent
Registration Act. Additional information is available at the Department of
Justice, Washington, D.C.

Radio Free Europe, Czech Republic
May 28 2004
OSCE: Prague Conference Aims To Build Business Climate In Central
Asia, Caucasus
By Breffni O’Rourke
The Organization for Security and Cooperation in Europe (OSCE) is
holding a key conference in Prague (31 May-4 June) which aims to help
its Eastern member states develop an economic climate where business
and private enterprise flourish. The five-day OSCE Economic Forum
is the culmination of a series preparatory meetings held mostly in
Central Asia and the South Caucasus.
Prague, 28 May 2004 (RFE/RL) — Building a house is a complicated
task. You need the raw materials like timber, clay, and stone. You
need skilled workmen to turn the raw material into usable components
like bricks and window frames.
You need more workmen to build the structure. And then you need someone
who can visualize the size and layout of the building so that it fits
its purpose.
And under all that, you need a solid foundation so that the whole thing
will not fall down.The OSCE calls for clear laws and regulations on
property rights, including land ownership, as well as on taxation,
curbing corruption, and improving companies’ access to financing.
One could say that building a house has many similarities to
constructing a successful business environment. At least in that
a properly functioning structure in both cases depends on the
interlocking of many different components.
Just as a house without a roof is useless, so is a business opportunity
without entrepreneurs to exploit it.
With this in mind, the OSCE is holding its annual Economic Forum in
the Czech capital Prague to help bring together the many ingredients of
a successful business climate. The Central Asian states and the South
Caucasus republics will be represented, as will the Balkan countries.
OSCE Economic Adviser Gabriel Leonte says high-level government
officials will be there, but others besides.
“This is not only a meeting for government officials,” he said. “We
have invited also regional organizations, and international
organizations. Also the business sector and the civil society is
invited to participate, as well as the academic community — because
the OSCE believes strongly that this issue can best be addressed if
all the stakeholders cooperate and work together.”
The 55-nation OSCE acts as a partner with the local business
communities. At the Prague forum it is particularly emphasizing the
need to build what it calls the “institutional and human capacity
for economic development.” In other words, framing laws which help
business, as well as training people — especially young people —
to think in business terms.
In its introductory paper to the forum, the OSCE says it “can promote
economic empowerment of men, women and youth” by providing information
and training. It urges the authorities in member states to improve the
working environment for small and medium-size businesses — enterprises
which are considered the backbone of the business environment.
The OSCE calls for clear laws and regulations on property rights,
including land ownership, as well as on taxation, curbing corruption,
and improving companies’ access to financing.
At present, local business people can find the path to profits a
difficult one. And as for Central Asia, some countries there have come
in for severe criticism from Westerners who have invested heavily, but
found their enterprises beset by difficulties, including disagreements
over taxation.
The OSCE’s Leonte agrees there are shortcomings.
“All the statistics indicate that these countries [in Central Asia]
still have to do a lot of things in order to perform better, and to
develop the business environment, in order to attract investment and
develop grass-roots initiative.”
The OSCE says a good financial infrastructure is a key element in
encouraging economic activity across the board. Access to financing
is often vital for business people with bright ideas, but no start-up
capital. The problem is the regular banking system is often reluctant
to get involved in offering microloans, because of the small returns
they generate and the risk factor.
With this in mind, the OSCE says it can offer to others its experience
in Kazakhstan, where with local partners it made a national assessment
of the “microcredit” industry, meaning the availability of small
loans for small businesses.
The OSCE will also offer at the forum the expertise gained by its
office in Yerevan, Armenia, on developing the Armenian Chamber of
Commerce and Industry. Chambers of commerce provide companies with
a useful source of information and contacts at home and abroad. The
project in Yerevan was carried out last year with the help of the
International Chamber of Commerce and strengthened the ability of
the local chamber to provide effective services to its members.
As to engaging young people, the OSCE has a program called YES —
Young Entrepreneurship Seminars — which it says is an idea which
could well be extended further. Under that program, summer camps for
young people on economic themes have been held in Tajikistan.
The Prague Economic Forum will also be discussing regional integration,
in the light of the European Union’s success in raising living
standards.
OSCE adviser Leonte notes the link between economic well-being and
security.
“The OSCE is not a development agency. We are a security organization
and we recognize that the lack of economic development might pose
some threats to security in the broader sense. And therefore we try to
work with governments and civil society and with other international
organizations involved in these countries to assist them to do better.”
The Economic Forum is being held at the Czech Foreign Ministry and
runs until 4 June. More information about the forum can be found at

Radio Free Europe, Czech Republic
May 28 2004
Western Press Review: Putin’s Speech, NATO’s Black Sea Interests,
Prosecuting Wartime Abuses, The Arab Summit
By Khatya Chhor
Prague, 28 May 2004 (RFE/RL) — Among the topics being discussed
in the media today are Russian President Vladimir Putin’s first
formal address this week since winning a second term; refocusing NATO
attention on the Black Sea-South Caucasus region; determining command
responsibility for crimes committed in wartime; events in Iraq, as
preparations continue for the 30 June handover of power; and this
week’s summit meeting of Arab leaders in Tunis, among other issues.
THE NEW YORK TIMES
Russian President Vladimir Putin’s first formal address to the
Federal Assembly (both legislative bodies) since his reelection in
March is the topic of an editorial today in New York’s leading daily.
The Kremlin head’s words this week (26 May) showed “the real, core
[Putin], not a rookie [or] a shaky politician looking for votes. The
speech was the program of a man very much in charge of Russia. Too
much, in fact,” the paper remarks dryly.
Putin’s main theme was his commitment to tackle the tough economic
problems — including housing, health care, education, and jobs — that
affect every Russian family. And while such pledges are not original,
Putin is “serious,” the paper says. “His enormous popularity among
Russians comes largely from his success in bringing stability and
growth to a chaotic land.” Aided by high oil prices, Putin has made
“impressive progress in reforming the decrepit economic institutions
he inherited.”
Yet despite the welcome promises of economic reform, “The New York
Times” says it was Putin’s “Soviet echoes” that reverberated most
loudly through the great Marble Hall of the Kremlin. The most chilling
was Putin’s denunciation of civil associations that have been critical
of his government and his swipe at Western critics, whom he accused
of trying to prevent Russia from being strong and free.”
Such comments are reminders of a time when the Kremlin assumed
“that economic growth and national security require an all-powerful,
centralized state apparatus.”
The paper writes: “The longing of the Russians for a measure
of security is understandable. But it is imperative that Putin be
reminded at every turn not to confuse the laudable goal of improving
the lives of the Russians with a restoration of the authoritarian,
centralized rule that destroyed their lives to begin with.”
WASHINGTON POST
A joint contribution today by James Dobbins of the Rand Corporation
and Philip Gordon of the Brookings Institution says the United States
must soon make needed changes in its military strategy if it is to
stabilize Iraq.
“Reaching the goal of a stable, unified and non-threatening Iraq does
look increasingly difficult,” say the authors. But the withdrawal
of U.S. troops from Iraq would create a security vacuum “that would
quickly be filled by the most heavily armed and violent groups
in Iraq.” Iraq’s many different ethnic, religious, and cultural
communities “would probably struggle to establish control over
that country’s vast energy riches. Civil war, ethnic cleansing, and
genocide [would] be a likely result. Iraq’s neighbors — including
Iran, Syria, Saudi Arabia, and Turkey — would probably be drawn in,
supplying arms and money to their preferred factions.”
To achieve success in Iraq, the United States needs a major strategic
shift. “Henceforth, American forces cannot afford to destroy villages
to save them. They cannot afford to use artillery, gunships and
ordnance from fixed-wing aircraft in populated areas, regardless
of the provocation. They cannot afford to sacrifice innocent Iraqi
civilians to reduce American casualties. They cannot afford to sweep
up, incarcerate and hold for months thousands of Iraqis — many of them
innocent — to apprehend a smaller number of guilty ones. They cannot
afford to use pain, privation or humiliation to secure information.”
Dobbins and Gordon say an insurgency “cannot be defeated without the
support of the population.” And the United States will not receive
that support from the Iraq people “unless it puts public security at
the center of its military strategy.”
WALL STREET JOURNAL EUROPE
Vladimir Socor of the Washington, D.C.-based Jamestown Foundation
says that at its upcoming (27-28 June) summit in Istanbul, “NATO can
celebrate a triumph.” Seven new members from the Baltic to the Black
Sea will attend the alliance summit as members. “This — along with
the previous accession round by three Central European countries —
represents the alliance’s greatest strategic, political and moral
victory in its 55-year history.”
But the alliance “cannot avoid addressing the issue of peacekeeping
and conflict resolution on its own vital strategic perimeter,” Socor
says. “Thirteen years after the end of the Soviet Union, peacekeeping
in this region remains in practice Moscow’s monopoly, which only
serves to freeze the political settlements of the conflicts.”
Two years ago, both NATO and the United States seemed ready
“to engage jointly with Russia in peace-support operations
and conflict-resolution efforts in Moldova, Georgia and the
Armenia-Azerbaijan conflict. [However,] nothing further has been
heard about these intentions since those summits.”
Socor observes that U.S. “forces and resources are now overextended
worldwide.” Thus he suggests European nations should be ready “to
take the lead in peace-support operations and conflict settlement in
the Black Sea-South Caucasus region, Europe’s doorstep.”
The United States, NATO, and the European Union “have the strategic
and democratic motivations, as well as the means, to initiate a
transformation of peacekeeping and conflict resolution at this
crossroads, where the access routes to the Greater Middle East and
the energy transit routes to Europe intersect.” Socor says this “must
become a Euro-Atlantic priority.” June’s NATO summit agenda would be
“incomplete” if it did not indicate its readiness to address this
vital issue.
FINANCIAL TIMES
In a contribution to London’s leading financial daily, a former U.S.
ambassador-at-large for war crimes, David Scheffer, discusses the
difficulties of determining command responsibility for abuses committed
in wartime. In the wake of the Abu Ghurayb prison scandal in Iraq,
Scheffer looks at how the international war crimes tribunal in The
Hague has dealt with offenses committed during the Balkan wars of
the 1990s.
He says some of the same “[fundamental] questions of ‘responsibility'”
that arose from the mistreatment of Muslim prisoners at the Trnopolje
Camp in Bosnia-Herzegovina are likely to be addressed in the Abu
Ghurayb investigation. Was there, from top U.S. administration
officials down to prison guards, a common intention to institute
practices prohibited by the Geneva Conventions? Who had de facto
control over the U.S. personnel and private contractors conducting
interrogations? And who had the authority “to subject detainees to
inhumane treatment?”
The Hague tribunal has, in recent years, determined “responsibility”
for abuses and the complicity of military and civilian leaders
“by asking whether the individual had superior responsibility for
subordinates, or was a co-perpetrator in a joint criminal enterprise,
or aided or abetted an atrocity by knowingly assisting or encouraging
it.”
The tribunal’s determination of command responsibility rests on whether
“there was a superior-subordinate relationship where the accused had
‘effective control’ over the perpetrator. Such control should exist
when a superior has the power to prevent or punish atrocities committed
by subordinates.”
The Hague tribunal “has shown that responsibility for atrocities,
especially war crimes committed against detainees, requires serious and
objective review of evidence up the chain of command.” Scheffer says,
“The die, therefore, is cast for U.S. judges and Congress, which can
punish such crimes, to enforce the law with unassailable integrity.”
THE ECONOMIST
London’s weekly magazine observes that the meeting of Arab leaders
in Tunis last week “was supposed to have been about two things:
political reform and a uniform stand on thorny issues such as Iraq
and Palestine.” But following the summit’s end, “Commentators from
Morocco to the Gulf, in unprecedentedly uniform derision, variously
deemed the meeting ‘ridiculous,’ ‘a failure,’ ’empty rhetoric’ and
‘instantly forgettable.'”
The strains between the Arab League’s 22 members have been exacerbated
by the “muscular” approach to the region by the United States,
the U.S.-led invasion of Iraq, and Washington’s unflagging support
for Israeli policies, its “icy hostility to old adversaries” like
Syria, and its “aloofness” from longtime allies such as Egypt and
Saudi Arabia. Moreover, the sudden U.S. preoccupation with promoting
democracy throughout the Middle East has “shaken Arab palaces and
streets alike.”
But the heads of state and envoys meeting in Tunis did make
an attempt to address “both their own peoples’ and Americans’
concerns.” The summit’s final communique “restated a commitment to
a comprehensive Palestinian-Israeli peace and made a new gesture to
Israel by condemning ‘all operations that target civilians, without
distinction.'” The text also, “unsurprisingly,” condemned the U.S.
president’s recent rejection of the right of displaced Palestinians
to return to Israel as well as his contention that Israel should be
allowed to keep some of the territory it has occupied since 1967.
Some statements were made about the leaders’ commitment to social and
political reform in the region, but many of these were “notably vague.”
The “Economist” notes that 34 Arab nongovernmental organizations from
14 countries issued a statement of protest, calling for a specific
timetable for change or for holding elections.

EuropaWorld
May 28 2004
Stepping up the battle to prevent nuclear weapons from falling into
the clutches of terrorists
VIENNA, 26 May 2004 – In a significant move to reduce the risk of
terrorists getting their hands on portable missiles that can bring
down civil and military aircraft, the Organization for Security and
Co-operation in Europe has taken a decision to tighten export
controls on so-called MANPADS.
At its 423rd meeting today, the OSCE Forum for Security Co-operation
(FSC) decided unanimously to adopt principles developed under the
Wassenaar Arrangement, a smaller group of nations that have agreed to
promote transparency and greater responsibility in transfers of
conventional arms and dual-use goods and technologies.
“We have recognised the threats posed by unauthorised proliferation
and use of man-portable air defence systems (MANPADS), especially to
civil aviation, peace-keeping, crisis management and anti-terrorist
operations”, said Armenian Ambassador Jivan Tabibian, whose country
currently holds the Chairmanship of the FSC.
By this decision, the 55 participating States of the OSCE agree to
incorporate these principles into their national practices and
regulations. Any infringement of export control legislation, related
to MANPADS, will be a criminal offence.
The States will report transfers of MANPADS, categorised in the OSCE
Document on Small Arms and Light Weapons as portable launchers of
anti-aircraft missile systems, by making use of the OSCE’s own SALW
Information Exchange requirements.
“We are determined to contribute to reducing the risk of diversion of
small arms and light weapons on to the black market”, said the FSC
Chairman. “This decision is in line with the commitments undertaken
by the OSCE at Maastricht in December, when we adopted the OSCE
Strategy to Address Threats to Security and Stability in the 21st
Century.”
The OSCE would be using all the tools at its disposal to address the
proliferation of MANPADS, he added. “The participating States will
review the implementation of these principles on regular basis.”
As well as invoking these principles to enhance effective export
control of small arms and light weapons including MANPADS in the OSCE
area, the 55 States will also try to promote their application to
non-OSCE countries.

CHS students hear first-hand stories of survival
By MICHELLE COLE 05/28/2004
Coventry Courier, RI
May 28 2004
COVENTRY – High school students from across the state heard firsthand
the stories of survivors during Coventry High School’s first annual
History Symposium last Thursday.
The theme for the day was “Terror and Tragedy in the 20th Century,”
and presentations focused on three infamous historical events: the
Armenian genocide; the Holocaust; and the Cambodian genocide.
Nicole St. Jean and Mackenzie Zabbo, two CHS seniors, organized
the history day as part of their CIM project. The students had
participated in a “Terror and Tragedy” unit in their 11th grade
history class and decided to pursue the issues as their CIM project
to share the experience with others, according to Matthew Brissette,
social studies chairperson.
Five schools attended the History Symposium last Thursday, packing
about 450 students into the high school auditorium to learn from the
guest speakers.
“If [the students] can see things firsthand, it’s going to have that
much more profound of an impact,” Brissette explained.
With moving presentations from the survivors, students learned how
some childhoods end suddenly and tragically as young children are
caught in the crossfire of government changes and warfare.
For Loung Ung, one of the three guest speakers, her childhood – with
its memories of going to the movies with her father and sitting on
his lap eating fried cricket snacks – ended when a new regime took
power in Cambodia.
She was five years old.
In 1975, Ung’s family joined in the mass evacuation of homes from
the city of Phnom Penh and was forced to try to farm in primitive
“labor camp villages” in the countryside. She shared memories of
malnutrition and starvation and how she ate charcoal – imagining it
was cake – for her sixth birthday.
These changes were part of the new Khmer Rouge regime’s desire to
create a utopian agrarian society, Ung explained, and any who were
different or did not conform to this ideal were killed. Ung told
students how both of her parents – as well as 20 other relatives –
were killed by the regime. At nine years old, she was orphaned and
had to train as a child soldier.
In 1979 the Vietnamese army defeated the Khmer Rouge, and Ung was
able to escape the country. Today, she speaks to audiences about the
dangers of land mines – which still threaten the people in Cambodia
decades later – and the need for justice and peace. She is the
author of First They Killed My Father: a Cambodia Daughter Remembers
(published by HarperCollins in 2000).
“Peace is a choice. Peace is an action,” Ung said. Other speakers
included Moushegh Derderian and Alice Golstein. Derderian was born
in Turkey in 1911 and is a survivor of the Armenian genocide. From
1915 to 1923, more than 1.5 million Armenians were killed by the
Ottoman Turkish Government in a move to exterminate all of the
two million Armenians from the multi-ethnic Empire, according to a
handout. Golstein was born in Germany at the beginning of the Nazi era
and experienced many of the devastations leading up to the Holocaust.
“[The History Symposium] went very well for the first time,”
Brissette said. “Most students seem to be pretty positive [about
the experience].”
Brissette said he hopes the history day will continue in the coming
years through student organization and departmental support.

PRIME MINISTER ANDRANIK MARGARIAN’S ADDRESS ON THE OCCASION OF FIRST
REPUBLIC DAY
ArmenPress
May 27 2004
YEREVAN, MAY 27, ARMENPRESS: Armenian prime minister Andranik Margarian
issued a message today to the nation on the occasion of the First
Republic Day, which runs below.
“Dear compatriots, I congratulate you on the occasion of the First
Republic Day. Due to the collective will of our nation and its
unbending spirit the centuries-long desire to restore Armenia’s
statehood came true On May 28, 1918.
In the row of our victories, celebrated in May, the heroic battles of
Sardarapat, Bash-Aparan and Karakilisa stand, in terms of implementing
the idea of independence by relying on our own strength after a
six-century long break that has become later a basis for new feats
of arms and new manifestations of Armenia’s freedom-loving spirit.
Though the First Republic did not live long, but its lessons-freedom,
independence, sovereignty and building a strong state, and which is
more important-to maintain it, have been passed from generation to
generation to have displayed itself anew in late 1980-s. The struggle
for the independence of Artsakh has reaffirmed our resolute to maintain
our historical achievements.
The 13-year long Third Armenian Republic is moving ahead today
resolutely, developing gradually its economy and consolidating its
sovereignty, reinforcing its role and place in global processes.
There is no alternative to independent Armenia, based on democratic
values and I believe that no force, no difficulty is able to impede
our march.
I once again congratulate you all on the occasion of this beautiful
festive day. I wish you all good health. strong belief, strength and
will to surmount difficulties. We have to be united and our historical
achievements will become the guarantee of our efforts for building
a strong and prospering homeland.