20 PERCENT OF CENTRAL BANK’S DECISIONS ARE UNCONSTITUTIONAL

Lragir, Armenia
Dec 8 2006

According to Article 88.3 of the Constitution, the Central Bank
deals with inflation, and afterwards it is set down that the Central
Bank conducts a monetary and loan policy. "One of the functions of
the Central Bank is to control the inflation. The Central Bank is
supposed to conduct a monetary and loan policy. In other words, in
Armenia it is vice versa," stated the former prime minister of Armenia
Hrant Bagratyan on December 8, mentioning that it is impossible to
find another such country, while in Armenia 20 percent of the Central
Bank’s decisions are unconstitutional. "A totalitarian regime has been
established in the banking system." This allows Bagratyan to suppose
that the Constitution was adopted "hastily, everyone included several
chapters on their own." He thinks that serious problems are emerging
in the banking system, the ways of solution are there but are not used.

For instance, when the president of the Central Bank says the dollar
amount that comes to Armenia is large, which causes the depreciation
of the dollar in Armenia, the dram revaluates, the government or the
minister of finance should say, "you do not pay salaries, we pay, and
it is harmful for the budget, it is harmful for the economic growth."

The budget of the country with a 10 percent economic growth should
grow by 30 percent, states the former prime minister. Or if the dollar
amount is large, why does the Central Bank sell stocks in drams and
reduce the dram amount. "It should have sold in dollars."

Or if the dollar amount is large, why was the gold sold in dollars?

"Nobody demands account for their actions. Statements are OK, but
there are facts. There is no response. There is only a brazen smile.

How about our children?" says Hrant Bagratyan and proposes: "Columbus
discovered America, he discovered gold, the gold came to Spain, and
everything became expensive. If an annual 1.3 billion dollars comes,
you can put it somewhere and develop. We have 21 banks but we lack
systems of development."

"The Central Bank has other rights to sell stocks. It appears that
the head of state trusts the president of the Central Bank, gives
everything to him," says Hrant Bagratyan. He suggests changing the
entire structure of the Central bank rather than replacing separate
peope. "We need a fresh breath."

CHANGE OF POWER IN 2008

Lragir, Armenia
Dec 8 2006

The former prime minister of Armenia Hrant Bagratyan stated December
8 at the Friday Club that the values of 20 or 10 years ago are
not found in the political sphere any more, and in the upcoming 30
years the political sphere in Armenia will not accept differences in
ideologies and principles, every time after the presidential election
the parliament will obey him, and the political forces will be solving
three focal problems, "Save Karabakh, prevent massacres and blockade
of routes".

Personally, Hrant Bagratyan is not interested in running in the
elections in 2007 and 2008, but he thinks that in 2007 the struggle
will be going on in the government-government sphere, the government
will be reproduced. And in 2008 there will be a change of power.

Hrant Bagratyan thinks that the government is conducting a wrong
policy on Azerbaijan and Turkey. In case of Azerbaijan, it was
necessary to settle the liberated territories as soon as possible
to reach a settlement soon, and "Ilham Aliyev would have to seek a
resolution." And now we are like someone who has bought an apartment
but he neither lives there nor lets it, and the other says I need
this apartment, "The Hungarian, the French hear and say that the
second is right." However, Bagratyan does not think that we will earn
lasting peace if we agree to a compromise on Karabakh. Hrant Bagratyan
reminded that when he was prime minister, a policy on resettlement of
the liberated territories was implemented. 10 thousand people moved to
Lachin within a year, a branch of a bank, small factories were opened
"but now the population is decreasing."

For Turkey, according to the former prime minister, instead of rising
against Turkey’s membership to the EU we should try to be helpful and
generally we should cooperate with our neighbors for the sake of our
development. "The relations with our neighbors are mainly economic.

This is a problem."

"Why do we want Turkey to go East towards us rather than to go West?

Why are we aggravating the relations which are already complicated? I
do not want to kindle the fire. What are we pursuing in Javakheti? We
did not rise the question of Javakheti, but we cooperated with the
Georgian government. We had one problem – Karabakh. We do not have
a problem of West Armenia with Turkey. This is adventurism which
will eventually lead to the destruction of Karabakh. We must use
every opportunity for the sake of our country," warns the former
prime minister.

DASHNAKTSUTYUN AND REPUBLICANS FAILED TO COME TO AGREEMENT

Lragir, Armenia
Dec 8 2006

The Republican Party and the ARF Dashnaktsutyun, the two coalition
forces, failed to reach agreement to guarantee the existence of a
state anthem set down in the law. Gegham Manukyan, an ARF leader,
told reporters on December 8 that they had failed to reach agreement.

He says the ARF is against adopting "Mer Hayrenik" as a provisional
anthem until the adoption of the new anthem without setting down the
music and lyrics.

Gegham Manukyan also stated that "Mer Hayrenik" had been sung
even before the Armenian state was established. The ARF member of
parliament said now when officially Armenia does not have an anthem,
people perform it as our official anthem. Gegham Manukyan said two
days ago, when "Mer Hayrenik" had already stopped being an anthem
under the law, the day of Dashnaktsutyun was celebrated in Armavir,
and "Mer Hayrenik" was performed.

IS YERVAND ZAKHARYAN PROPOSING TO CREATE SOURCES OF SEISMIC DANGER IN ALL REGIONS?
Aram Zakaryan

Lragir, Armenia
Dec 8 2006

Yervand Zakharyan, the mayor of Yerevan, was driving around Arabkir
community and stated that Yerevan has developed, and now the focus
should be on the towns of the regions.

I remembered Yervand Zakharyan’s regional concerns when on December 7,
18 years after the earthquake in Spitak, which took 25 thousand lives,
the head of the National Service of Seismic Security Alvaro Antonyan
made a statement that makes think. "Currently not all the building
projects in Armenia keep to the rules of seismic construction. The
seismic risk is high in the center of Yerevan, considering both the
density of buildings and seismic security.

Buildings are built which do not comply with urban planning rules.

The new highrises enhance the seismic risk in Yerevan. God forbid, if
a strong quake destroys one of them, traffic in the center of Yerevan
will be blocked to ambulances, rescuers. Unfortunately, the general
map of Yerevan is being drawn for a completely build-up city," stated
Alvaro Antonyan. Alvaro Antonyan also announced that there must be a
vital area around every building, especially a highrise. Meanwhile,
in Yerevan the impression is that we are not going to have children,
and they do not need a backyard to play there. A 15-storey house
is built immediately on the pavement. "After the earthquake houses
were built in Spitak which fail to comply with the rules of seismic
building," said Alvaro Antonyan.

Alvaro Antonyan also stated that the buildings built for foreign
companies are compliant; we tend to overlook the danger. The
National Service of Seismic Security does not possess levers to
stop or prevent construction which is not compliant, however, it has
warned the relevant agencies. So far no case has been reported when
non-compliant construction was stopped, for the owners of the buildings
in the center of Yerevan are high-ranking officials or their relatives.

Under Mayor Yervand Zakharyan the inhabitants of Yerevan have
"earned" double trouble. First, the state of traffic in the center has
become worse. Second, the center has become a source of additional
risk. Moreover, Yerevan got its new center at the expense of
expropriating the apartments of a number of people.

Is this what Yervand Zakharyan wishes for the towns of Abovyan, Goris,
Meghri or Dilijan, for instance? And if yes, is his wish compliant
with the ideology of his political party? If the public regulations on
seismic security of construction and the warnings of the seismologists
are overlooked, is there a guarantee that the buildings in the regions
will take into consideration the seismic risk? If these rules are
overlooked, do we need another 50-60 sources of danger in Armenia?

NIP AND TUCK TO MEET MILLENNIUM
Haik Aramyan

Lragir, Armenia
Dec 8 2006

On December 6 the Armenian minister of finance and economy
distinguished himself at the National Assembly. When Member of
Parliament Hovanes Margaryan asked a question, the minister retorted
with rather rude and inappropriate words. It is not clear whether
he was sober or not, however, the Republican officials are recently
more often noticed behaving nervously. Of course, it is hard times,
the native oligarchic corps have captured the political party, and
harmed the already low reputation of the party among the public. On
the other hand, the same corps have also "let down" the so-called
political sector of this party. The society has stopped believing that
the political party is almighty; this was the only thing the political
party relied on to hold on to the political sphere. When the chair of
the new political council of the party spoke about 20-22 percent in
the parliamentary election, the defiant spirit of the Republican Party
rose in Armen Ashotyan; I want 40 percent, he demanded. Afterwards the
local election in Ajapniak community took place, and the so-called
political sector of the Republican Party realized what was going
on. First Galust Sahakyan stated the reality, mocking at Serge
Sargsyan in his fruitological theory. Then the prime minister spoke
up, questioning the fact that they may name Serge Sargsyan.

This was a heavy blow for the chair of the enlarged council of the
Republican Party and the "notorious forces" who had come with him.

However, it is too late. The propagandist devices used to forge an
image of an undefeatable force do not work any more. Now they are not
even saying, "prove that we are criminals." There is one thing they can
do – reassure one another that nothing compares with them, although
they have already stopped believing this. Besides, someone else has
appeared, whose words, unlike them, do not differ from the actions.

So, they are losing their nerve, and they have stopped caring for
anything – state, parliament, members of parliament, state symbols.

And they have left the country without an anthem on top of all. And
Vardan Khachatryan, who once had an adventure at a night club by
hindering, to put it mildly, the work of the dancers, descended from
the rostrum of the parliament and before taking his seat he came up
to Serge Sargsyan. Serge Sargsyan tapped at the shoulder of the brave
minister with an approving smile on his face.

FIFTEEN YEARS ON, REBEL ETHNIC-ARMENIAN ENCLAVE STILL FIGHTING FOR STATEHOOD
by Simon Ostrovsky

Agence France Presse — English
December 8, 2006 Friday 2:05 AM GMT

Armenians in Nagorny Karabakh will celebrate Sunday the 15th
anniversary of their decision to break away from Azerbaijan with a
referendum on a constitution for their separatist region in a move
slammed by central authorities in Baku.

The Karabakh vote follows on the heels of similar polls in a number
of unrecognized mini-states in the former Soviet Union, including
Georgia’s breakaway South Ossetia and Moldova’s Transdniestr earlier
this year.

The vote is seen by outsiders as an attempt to draw attention to
the plight of Karabakh’s separatist government, which has sought
recognition since it won de-facto independence from Azerbaijan in a
grueling early 1990s war.

Nagorny Karabakh, which has its own military, flag and government,
displays many of the characteristics of an independent state but is
internationally considered part of Azerbaijan.

Azerbaijan’s foreign ministry criticized the upcoming vote last week,
saying it "interferes with an ongoing peace process" adding that a
poll in Karabakh could not be considered legitimate until the area’s
exiled Azerbaijani population was allowed to return.

Only days earlier, at the end of November, both Azerbaijan and
Armenia’s leaders were optimistic about reaching a settlement on the
status of the mountainous region over which they have been locked in
a stalemate since a shaky cease fire was signed in 1994.

Azerbaijan’s president Ilham Aliyev had said the two sides were
"nearing" an agreement after Aliyev met his Armenian counterpart
Robert Kocharian in Moscow.

Despite years of talks little has changed on the ground in Karabakh,
a region of some 140,000 people which subsists on aid from neighboring
Armenia and generous donations from millions of Armenians living in
the West and Russia, since the war’s end.

The territory’s breathtaking landscapes are in sharp contrast to the
gutting standards of living of its population, the majority of which
has not had clean water and natural gas in homes since the break-up
of the Soviet Union.

Exchanges of gunfire over a tense cease fire line with Azerbaijan
are a common occurrence and dozens of soldiers die on both sides of
the fixed front line each year.

Many of Karabakh’s towns, as well as empty cities in seven surrounding
Azerbaijani regions currently controlled by ethnic-Armenian forces,
still lie in ruins — un-repaired since heavy fighting ended.

The conflict between Armenia and Azerbaijan erupted in the late 1980s
when a wave of independence movements swept across Soviet territory.

Some 25,000 people died in the conflict and up to a million people
were displaced, with some 250,000 Armenians fleeing Azerbaijani cities
and some 750,000 Azerbaijanis escaping from Karabakh and other areas
captured by Armenian forces.

The conflict has adversely affected development in both Azerbaijan,
where hundreds of thousands of refugees still live in camps, and
Armenia, which has been locked out of regional projects by Azerbaijan
and its ally Turkey.

Armenia’s borders with Turkey and Azerbaijan have been closed since
it gained independence and maintains its links to the outside world
through Georgia and Iran only.

The economy of Azerbaijan is however booming as its considerable
Caspian Sea oil and gas reserves are developed by a host of Western
oil companies.

LOSING THE PRINCIPAL ALLY IN THE SOUTHERN PART OF THE CAUCASUS
by Yuri Simonjan
Translated by A. Ignatkin

Source: Nezavisimaya Gazeta, December 5, 2006, p. 9
Agency WPS
DEFENSE and SECURITY (Russia)
December 8, 2006 Friday

SLIPPING AWAY OUTPOST;

ADVANCEMENT OF ARMENIAN-NATO COOPERATION IN THE SPHERE OF CRISIS
MANAGEMENT AS ANOTHER STEP LEADING TO THE LOSS OF RUSSIA’S PRINCIPAL
ALLY IN THE CAUCASUS; Russia’s indifference and arrogance may cost
it its last ally in the Caucasus.

Two-day crisis management seminar that opened in Yerevan this Monday
was organized within the framework of Armenia-NATO IPAP of Individual
Partnership Action Plan. Speaking at the seminar, NATO expert Avert
Sommer expressed satisfaction with the level of cooperation within
the framework of Partnership for Peace, NATO’s Program. "Armenia is
an active participant. That is why specialists from Holland and the
United States are in Armenia now, at a meeting with their Armenian
counterparts for the purpose of establishment of a crisis management
system," Sommer said. Rescue Service Director Major General Eduard
Barsegjan announced in his turn that Yerevan was determined to deepen
cooperation with the Alliance in the crisis management sphere.

A routine function as it is, the seminar is actually anything but. It
was with "innocent" functions like it that cooperation with Georgia
once began to blossom into the near membership of this country in
the Alliance. And with Azerbaijan, the country that does not openly
proclaim its determination to join the foremost global military
structure but that is clearly drifting in this direction. All of that
attaches unprecedented importance to the question that seemed out
of place only recently – that of reliability of Armenia as Russia’s
outpost in the southern part of the Caucasus.

Stepan Safarjan of the Center for National and Strategic Studies
dismisses all assumptions on the possibility of changes in Armenia’s
foreign policy as idle speculation. "There are no indications that
any such turn is about to be executed. Armenian-Russian economic
treaties, the threat of another round of hostilities with Azerbaijan,
and tension in the relations with Turkey solidify Russia’s positions in
Armenia," the political scientist pointed out. He admitted, however,
appearance of certain suspicions in Armenian society with regard to
Moscow. Safarjan referred to murders of Armenians in Russia and the
fears that the Kremlin might decide to support the current Armenian
regime in the forthcoming parliamentary and presidential elections. "As
a matter of fact, the regime is already trying to secure the West’s
support too, but there is no point in talking of any dramatic changes,"
Safarjan said.

Stepan Grigorjan, Director of the Center for Globalization and National
Cooperation, believes at the same time there must be something about
all these talks on changes in Armenia’s foreign policy. Moreover,
he assumes that some metamorphosis is inevitable.

"We do not want to lose Russia," Grigorjan said. "It is Russia itself
that is pushing Armenia away."

As far as Grigorjan is concerned, changes in the foreign policy are
made inevitable by the following factors: Moscow’s partnership with
the Armenian authorities alone which comes down to cooperation with
corrupt state officials; non-transparency of Russian programs in
Armenia so that practically all industrial objects in the republic
are owned by Russia now and remain idling; and finally, attitude
towards the Armenians in Russia itself.

"Add intensification of the Russian-Azerbaijani military cooperation as
the fourth factor," Grigorjan said. "A member of the CIS Collective
Security Treaty Organization, Armenia is entitled to something
better in terms of military contacts with Russia. Yerevan cannot help
being dismayed over the fact that the level of Russian-Azerbaijani
cooperation in this sphere is rapidly approaching the Russian-Armenian
one."

The political scientist claims that these views are shared by the
population too; they are not restricted to the establishment alone.

Until recently, affection for Moscow was mostly ascribed to the
unsolved Karabakh problem. The Kremlin in the meantime became markedly
neutral on the matter over the years. The West, on the contrary,
boosted its involvement. The United States even insisted on having
the latest so far conflict resolution plan include a provision on a
referendum in Karabakh. Moreover, it is helping Karabakh directly. All
of that is fomenting somewhat different moods and views in Armenian
society.

From: Emil Lazarian | Ararat NewsPress

AZERBAIJAN SPEAKS ABOUT SHELLING POSITIONS OF ITS ARMED FORCES

Source: RIA Novosti
Agency WPS
DEFENSE and SECURITY (Russia)
December 8, 2006 Friday

Units of the armed forces of Armenia fired machine guns and automatic
rifles at positions of the armed forces of Azerbaijan located near
Kokhanbi, Gadzhigasanly and Agbulag of the Tovuzsky District from
positions in Chinari village of the Berdsky District of the country for
15 minutes about 8:40 pm local time The press service of the Defense
Ministry of Azerbaijan reported on Wednesday, that in response fire
Azerbaijani servicemen suppressed the fire from the Armenian side and
there were no losses among Azerbaijani soldiers. In turn, the Defense
Ministry of Armenia denied the report of the Azerbaijani party about
attack of positions of the Azerbaijani armed forces. Colonel Seiram
Shakhsuvaryan, press secretary of the Defense Minister of Armenia,
said that this information was at odds with facts.

ARMENIAN MINISTER, NATO CHIEF DISCUSS COOPERATION, REFORMS

Mediamax News Agency, Armenia
Dec 7 2006

Yerevan, 7 December: Armenian Foreign Minister Vardan Oskanyan and NATO
Secretary-General Jaap de Hoop Scheffer noted in Brussels today the
importance of the NATO Information Centre that was opened in Yerevan
recently, which informs the Armenian public about the activity of
the alliance and the cooperation between Armenia and NATO.

Oskanyan and Jaap de Hoop Scheffer discussed the implementation of
Armenia’s Individual Partnership Action Plan [IPAP] with NATO, the
first stage of which started in January 2006, the press service of
the Armenian Foreign Ministry told Mediamax.

The sides expressed satisfaction with the course of implementation
of the programme, which was discussed in the session of the NATO’s
Council in the 26+1 format, in summer 2006.

Vardan Oskanyan informed the NATO secretary general that the Armenian
interdepartmental commission on the IPAP held eight sessions in the
current year.

Jaap de Hoop Scheffer said that NATO is ready to deepen cooperation
with Armenia and stressed the importance of the development of
democratic processes in Armenia and of the implementation of reforms
in the defence sphere with NATO’s assistance. He praised Armenia’s
contribution to NATO peacekeeping operations.

Oskanyan praised the contribution of the NATO international consulting
group in developing Armenia’s national security strategy.

Oskanyan and de Hoop Scheffer also discussed Armenian-Turkish relations
and the settlement process of the Nagornyy Karabakh conflict.

After the meeting, the Armenian foreign minister signed a memorandum on
mutual understanding between Armenia and NATO on simplified procedures
for border crossing during transit transportation, which is of vital
importance. The document will increase the speed of international
reaction to crisis and emergency situations, the press service of
the Armenian Foreign Ministry said.

ARMENIA SAYS NATO NOT INVOLVED IN KARABAKH CONFLICT RESOLUTION

Mediamax News Agency, Armenia
Dec 8 2006

Yerevan, 8 December: Relations with NATO are one of the key elements
in Armenia’s policy of European integration, Armenian Deputy Foreign
Minister Arman Kirakosyan said in Yerevan today.

Kirakosyan said this at the opening of the international conference
"NATO-Armenia. The new partnership agenda", organized by the Institute
of Civil Society and Regional Development [ICSRD] with the assistance
of the NATO Public Diplomacy Division.

Kirakosyan noted that the reforms carried out in Armenia are aimed
at strengthening the state structure and making it meet European
standards. "Armenia chooses European standards, as modern Europe is
a successful model of statehood and civil society," Kirakosyan said.

He said that cooperation with NATO is helping Armenia to establish a
modern system for guaranteeing state security and that the Armenia-NATO
Individual Partnership Action Plan is playing a central role in that.

Commenting on the possibility of NATO’s participation in the
settlement of the conflicts in the South Caucasus, Kirakosyan noted
that representatives of the alliance have repeatedly announced that
they do not intend to interfere in these processes.