MINISTER: ARMENIA REMAINS ONE OF MAJOR ENERGY PLAYERS IN THE REGION

Regnum, Russia
Dec 5 2006

Despite the fact that 80% of Armenia’s energy capacity is under
control of Russian companies, the country lost nothing, moreover,
it gained, Armenia’s Energy Minister Armen Movsisyan said in an
interview to Golos Armenii newspaper. According to him, Armenia
depended on Russian energy carriers on 80% even before, so it depended
on Russia’s policy. "Our nuclear power plant was functioning thanks
to the nuclear fuel delivered from Russia, and thermoelectric power
stations were directly dependant on supplies of the Russian gas,"
the minister noted. He added that all Russia’s profit completed on the
border with Armenia: it was not interested in anything further. "Now
we have made their profit closer to our power generating facilities
and tied it to solution of our problems," Armen Movsisyan believes.

The energy minister said that if before only two of the four energy
reactors of the Hrazdan NPP could be enacted, today, after handing
the NPP over to Russia, all the energy reactors can be launched due
to works carried out by the new owner. If the Russian side was only
delivering nuclear fuel for the NPP, now, after receiving it under
its financial control they need to provide for its profitable and
sustainable functioning.

Besides, Armen Movsisyan noted that "whoever owns our power generating
facilities and other energy facilities, one cannot act in contradiction
to our national policy, as one will have no ways of influencing
our national interests," the minister said adding that according
to the national energy policy, the NPP, power lines and control
over electricity supply networks are owned by the state and cannot
be privatized.

The energy minister also said that Armenia was and is one of major
independent energy players in the region. "The region, let me remind,
where from year to year deficit of electricity is only increasing,
and Iran and Georgia, and even Russia need electric power. There is
no deficit in Armenia only," Armen Movsisyan concluded.

From: Emil Lazarian | Ararat NewsPress

SERBIAN FM ACCUSES WEST OF DOUBLE STANDARDS

Serbianna.com, MI
Dec 5 2006

BRUSSELS, Belgium-Serbian Foreign Minister Vuk Draskovic accused the
international community of applying double standards in its dealings
with Kosovo and urged the Organization for Security and Cooperation
in Europe not to trample over its own principle of respecting the
territorial integrity of its members.

Draskovic told a meeting of foreign ministers from the OSCE’s 56
member states that Serbia will not accept independence for Kosovo
and complained that all proposed solutions of the final status of
the province ignore Serbia’s interests.

"We are victims of double standards. Serbia is being considered
a unique case. No borders can be changed except those of Serbia,"
Draskovic said. "This summit should send a clear message that Serbia
is a state like any other state and that its internationally recognized
borders cannot be altered or renamed against its will."

The two-day conference of the trans-Atlantic security group focused
on Europe’s "frozen" conflicts in ex-Soviet republics and Kosovo,
which has been run by a U.N. administration as an international
protectorate since 1999, after NATO airstrikes ended a crackdown by
Belgrade on separatist ethnic Albanian rebels.

The United Nations has been mediating talks on the province’s
future status. A solution has been postponed until after Jan. 21
parliamentary elections in Serbia for fears a decision unfavorable to
Serbia could bring radical forces back to power, but Draskovic said
U.S. undersecretary of state Nicholas Burns told him there would be
no more delays.

The meeting also centered on long-running disputes in ex-Soviet
countries, the so-called "frozen" conflicts in the breakaway Georgian
regions of Abkhazia and South Ossetia, where Russian peacekeepers are
accused by Georgia of siding with the separatists; on the pro-Russian
separatist Trans-Dniester province of Moldova; and on the disputed
Nagorno-Karabakh region of Azerbaijan.

Russia clashed with the United States and western European nations over
its military involvement on Georgian and Moldovan territories, refusing
to discuss its commitment to withdraw troops and effectively ruining
chances of a common declaration at the security conference Tuesday.

The OSCE also assessed Kazakhstan’s candidacy for 2009 chairmanship
of the trans-Atlantic security group, but was likely to recommend that
the Central Asian country takes over the rotating annual presidency a
year or two later to have more time to implement democratic reforms,
despite Kazakhstan’s refusal to accept a delay to its bid.

Russian Foreign Minister Sergey Lavrov accused the OSCE of one-sided
efforts to push through what he called "politicized solutions" to
conflicts in former Soviet republics where the Russians are heavily
involved.

"They don’t like to be nailed down and told by others what to do," an
OSCE official said, adding that Russia refused to discuss withdrawal
from Trans-Dniester and the two Georgian regions despite being
pressed by many countries to do so. The official spoke on condition
of anonymity because the meeting continued.

Belgian Foreign Minister Karel De Gucht, whose country holds the
Vienna, Austria-based OSCE’s rotating presidency this year, also said
a possible solution was emerging on the conflict in Nagorno-Karabakh.

"We have made substantial progress, if not a breakthrough," De
Gucht said. "Trust between the two countries has grown considerably,
therefore it is highly possible that next year you will see a solution
to Nagorno-Karabakh."

Armenia and Azerbaijan are discussing terms of holding a referendum
on the status of the mountainous region in Azerbaijan that has been
under control of Armenian and ethnic Armenian Karabakh forces since
the 1994 end of a separatist war.

De Gucht said no agreement was possible on the situation in Georgia
at the current conference.

"There is a clear refusal on the Russian side to even discuss it,"
he told reporters.

The OSCE, a leading international security organization founded in
1975, is concerned particularly with conflict prevention, election
observing, crisis management and rehabilitation of post-conflict areas.

From: Emil Lazarian | Ararat NewsPress

NAGORNO-KARABAKH CONFLICT HOLDS ARMENIA AND AZERBAIJAN IN A STATE OF "NO PEACE-NO WAR" – AMERICAN EXPERT
Author: A.Ismaylova

TREND Information, Azerbaijan
Dec 5 2006

The Nagorno-Karabakh conflict holds Armenia and Azerbaijan in a state
of "no peace-no war, R. Nicholas Burns, the U.S. Secretary of State
Assistant for Political Affairs, Head of the U.S. Delegation at the
OSCE Ministerial Meeting, stated, Trend reports.

Similarly, the unresolved Nagorno-Karabakh conflict prevents the
return of hundreds of thousands of refugees and displaced persons,
he added. Regarding the Nagorno-Karabakh, we thank Russia and France,
our Minsk Group Co-Chairs. We have developed with the leaders of
Azerbaijan and Armenia a reasoned approach which promises to lead
to a negotiated settlement. Our organization should now call on the
leaders to turn these ideas into an agreement, Burns said.

From: Emil Lazarian | Ararat NewsPress

TURKEY HOPES 2007 WILL GO DOWN IN HISTORY OF NAGORNO-KARABAKH CONFLICT AS YEAR OF BREAKTHROUGH
Author: A.Ismaylova

TREND Information, Azerbaijan
Dec 5 2006

We hope 2007 will go down in history as the year of breakthrough
of Nagorno-Karabakh conflict, the Turkish Deputy Foreign Minister,
Rafet Akgunay, stated while giving a speech at the OSCE Ministerial
meeting in Brussels, Trend reports. He stressed that In light of the
recent briefing by the Co-chairs of the Minsk Group in Vienna, Turkey
is heartened by the continuing enhanced dialogue between Azerbaijan
and Armenia. "We are pleased to record expression of optimism, albeit
with a dose of caution, that the prospect of a political resolution
in the history of this conflict has never been so close. We hope 2007
will go down in history as the year of breakthrough," said Akgunay.

EUROPEAN UNION CALLS AZERBAIJAN AND ARMENIA TO SEIZE THE OPPORTUNITY TO MAKE PROGRESS WITHOUT DELAY IN CONFLICT RESOLUTION
Author: A.Ismayilova

TREND Information, Azerbaijan
Dec 5 2006

The European Union Calls Azerbaijan and Armenia to seize the
opportunity to make progress without delay in the resolution of
the Nagorno-Karabakh conflict, said a statement by Erkki Tuomioja,
Minister for Foreign Affairs on behalf of the European Union, which
was read out at the OSCE Ministerial meeting in Brussels.

The EU expressed its satisfaction at the recent approval of the
European Neighbourhood Policy Action Plans with Armenia, Azerbaijan
and Georgia. We hope that their implementation will add stability
to the region and strengthen the ties between the EU and the three
states of South Caucasus, the statement read.

The European Union commends the efforts of the co-chairs of the Minsk
group to resolve the Nagorno-Karabakh conflict. The EU is encouraged by
the active talks between Armenia and Azerbaijan to find a settlement
to the conflict. We call on both parties to seize the opportunity to
make progress without delay. We welcome the successful implementation
of the OSCE-led environmental assessment mission in October to assess
the fire-affected areas and meet officials on both sides of the Line
of Contact.

PRELATE GETS JOYOUS WELCOME
By K.O. Jackson

Fort Wayne Journal Gazette, IN
Dec 5 2006

Talk explores health link to faith
Clint Keller/The Journal Gazette

His Holiness Aram Ivisits with Dorothy Koomjohn Escosa, left, and
Adrienne Schwartz, 9, at the home of Zohrab Tazian.

Seeing, they say, is believing.

So is kissing the right hand of His Holiness Aram I, the spiritual
leader of the Holy See of Cilicia of the Armenian Apostolic Church.

His Holiness made his first visit to Indiana on Monday and was greeted
by more than 300 people at the home of businessman Zohrab Tazian.

"This is like the pope coming to America for Armenians," says John
Escosa, of Stedman Studios who was there to shoot photos of His
Holiness’ visit. "My mother’s name is Dorothy Koomjohn. Her parents
are from Armenia. This is big. This is hard to believe."

When His Holiness – carrying a gold-tipped staff and wearing a gold
double eagle necklace that reached down toward his stomach – entered
Tazian’s foyer, there was slight applause from people lined up to
bow and kiss his right hand.

When the greetings were finished, Aram I, blessed bread and water
that were placed in the lobby. He then led people in a prayer and song.

Following that, he sat with local and out-of-town religious leaders
and laymen discussing issues facing the church.

Aram I was the first orthodox and youngest person to be elected
moderator of the central and executive committees of the World Council
of Churches – the organization’s highest-ranking position.

Dr. Raffy Hovanessian traveled from Munster to meet Aram I.

Hovanessian said there are about 10 Armenian families in Fort Wayne,
but this event brought people from all over the state to Fort Wayne.

"He is blessing the house. This is a first for Armenian Catholics.

This is very special."

His Holiness spent about five hours in the city before heading to South
Bend to address a "Faith and Healing: Interdisciplinary Conference on
the Dynamics of Religious Coping," at the University of Notre Dame. The
university co-sponsored his visit with the Indiana University School
of Medicine. The conference ends today.

During the weekend, he also addressed U.S.-Armenian students in
Detroit, encouraging them to take the renewal of the Armenian Church
seriously. "We must remind ourselves that we are the first Christian
nation which accepted Christianity as a state religion, but at the
same time, we must realize that our church direly needs renewal,"
he told students, according to a written statement at

"By renewal I don’t mean changing the language of the liturgy or
introducing some changes in the administration or the structure of the
church. This would be a very superficial and one-sided perception of
renewal. By renewal I understand making our church a people’s church
impacting the life of our people. By renewal I mean making our church
responsive to the needs and expectations of our people. By renewal I
mean reaffirming the missionary, evangelistic and educational outreach
of the church. Therefore the renewal must be perceived as a process
permeating the entire life of the church."

During his Fort Wayne visit, Aram I spoke about the connection between
faith and health. "Healing is a spiritual process and the greatest
healer was Jesus Christ. You can’t draw a line between medicine and
faith. The mind, soul and body are one. There has to be a holistic
approach. You cannot separate them."

Bishop John M. D’Arcy of the Fort Wayne-South Bend Catholic Diocese,
says His Holiness’ words of faith and healing are starting to be
heard in the medical community.

"More doctors are starting to realize the connection," he says. "It
is a great code of Christian education."

In addition, His Holiness, who leads more than 1 million followers
worldwide, says the church "needs to have courage to face challenges.

This is the Christian way. It is our responsibility to show the right
way; the Christian way," Aram I said, while joking that leading Notre
Dame’s football team is one of his secrets.

"My people, 1.5 million, were massacred during World War I. The church
has a bridge to build. It’s not an easy task but we have to do it.

"Reconciliation is the role of the church. These are the challenges
of the church today."

Father Paul Bebis, of the Holy Trinity Greek Orthodox Church, says
His Holiness’ visit was "huge. He is a spiritual leader for us all.

He is the head of the church. That is why we are all here."

Photo: 16167411.htm

BRITISH UPPER HOUSE CRITICIZES THE EU ABOUT TURKEY’S MEMBERSHIP

Sabah, Turkey
Dec 5 2006

Eight members of the British Upper House have published an open
letter in the Daily Telegraph Newspaper with the headline ‘An Insult
to Turkey.’ Criticizing the EU in a harsh tone, the Lords said ‘the
partial suspension of Turkey’s accession to membership in the European
Union is insulting to the Turkish people.

Eight members of the British Upper House have publicly criticized
the EU in a harsh tone. The Lords have collectively said "the partial
suspension of Turkey’s accession to membership of the European Union
is insulting to the Turkish people." The Lords claimed that Turkey,
a secular state and significant member of NATO, is now being driven
away from Europe and towards Islamic fundamentalism.’

The letter was published in the Daily Telegraph’s "letters" section
under the headline ‘An insult to Turkey’, and signed by Lord Ahmed,
Lord Harrison, Lord Kilclooney, Lady Knight of Collingtree, Lord
Maginnis of Drumglass, Lord Monson, Lord Rogan and Lady Butterworth

Lords wrote: "This EU decision will be seen to have been a monumental
error. The pretext of Cyprus is unacceptable. The EU failed to honor
its promises to the Turkish Cypriots that their isolation would end
if they voted for the UN proposals for a settlement in Cyprus. In
contrast, the EU rewarded the Greek Cypriots with full membership of
the EU after they voted against the UN plans. As a member of the EU,
Greek Cyprus (encouraged by Austria and France, which makes freedom
of speech on the Armenian issue a criminal offence) now exercises a
veto against Turkish membership of the EU. Of course Turkey, if it
were to become an EU member, will have to recognize Cyprus: not the
present Greek Cypriot state in southern Cyprus, but an agreed Cyprus
by Greek and Turkish Cypriots for the whole island. It is unfair and
unreasonable for the EU to demand access to Turkish ports for Greek
Cypriots and at the same time to continue to deny access to EU ports
for Turkish Cypriots. The Government must now unilaterally agree to
direct access to Britain for transport to northern Cyprus."

KERKORIAN’S FAILED GAMBLE MAY HAUNT GM SHAREHOLDERS
Barrie McKenna

Globe and Mail, Canada
Dec 5 2006

WASHINGTON — The job was perilous, but the pay was pretty good.

During the Second World War, a twentysomething Kirk Kerkorian flew
Montreal-built Mosquito fighters to Scotland for the Royal Air Force.

The transatlantic flights, via Labrador, pushed the range of the
twin-engine plane to the extreme. Countless pilots and aircraft were
lost during the daring wartime ferry mission.

Mr. Kerkorian successfully delivered 33 Mosquitos to the British,
pocketed thousands of dollars, and used his savings to launch an air
charter service after the war, flying gamblers from Los Angeles to
Las Vegas.

It was a big gamble, and it paid off.

The 89-year-old billionaire investor has been using the same M.O.
ever since: Take big risks, make a buck and get out.

That was the plan for General Motors too. Mr. Kerkorian’s investment
company Tracinda Corp. (named for his daughters Tracy and Linda)
built up a 9.9-per-cent stake in the venerable automotive company at
a cost of about $1.7-billion (U.S.).

He had done it successfully in the airline business, the casino
business and at Chrysler.

In GM, Mr. Kerkorian saw a bloated giant — a car maker with too
many models, too many plants, too many employees and an intransigent
chief executive officer (Rick Wagoner). He thought he could prod the
struggling giant to make big changes, including eventually ousting
Mr. Wagoner through an alliance with Nissan-Renault and its CEO
Carlos Ghosn.

The stock was languishing in the $30 range when he amassed his stake,
Mr. Kerkorian apparently believed GM could be a $50 or $60 stock again.

But when he started dumping the last of his shares late last week,
the stock had slipped below $29.

Mr. Kerkorian’s GM gambit is over, at least for now.

He’ll still earn about $100-million on his investment. But it’s not
the windfall Mr. Kerkorian had in mind.

The Wall Street Journal likened the denouement to a gambler folding
his hand when he knew he couldn’t win.

Mr. Kerkorian, a former high-stakes Las Vegas gambler, apparently
concluded that the only way to push GM to make the necessary changes
was the get rid of Mr. Wagoner. But he wasn’t going to go without a
long drawn-out fight, and at 89, Mr. Kerkorian wasn’t up to it.

Mr. Kerkorian isn’t the feisty daredevil of his youth. He long ago
gave up gambling.

The son of an Armenian immigrant fruit vendor, Mr. Kerkorian has
always lived life on the edge. He dropped out of school in grade 8 to
pursue a career as a professional boxer. When that didn’t work out,
he became a bouncer at a bowling alley. He later learned to fly while
working an airfield outside Los Angeles.

During the Second World War, he jumped at the chance to fly for the
RAF, in part because he feared he might be drafted into the infantry.

After the war, Mr. Kerkorian turned his passion for flying into a
business. He bought a small charter airline in 1947, and took it
public in 1965. He eventually sold the company, which specialized in
flying high rollers to Vegas, to TWA.

Mr. Kerkorian was seduced by the Vegas lifestyle. He gambled and
married a dancer (his second wife, Jean Hardy). During the early 1960s,
he also began buying up real estate along the city’s "strip" that
would eventually become the foundation of a casino and resort empire.

After a series of flips and land deals, Mr. Kerkorian was ready
to become a player in Vegas. In 1969, he built what was then the
largest hotel in the world — the International — on a remote patch
of the strip that critics said was destined to fail. It’s now the
Las Vegas Hilton.

Mr. Kerkorian also made a fortune in the movie industry, twice buying
into Metro-Goldwyn-Mayer studios, and then selling out.

Mr. Kerkorian’s life has come full-circle. With his exit from GM, Mr.

Kerkorian is getting back to his roots. Yesterday, Tracinda launched
an $825-million cash tender offer for up to 15 per cent of MGM Mirage,
which owns nearly half the Vegas strip. The offer would raise his
stake in MGM to 61.1 per cent from 55.9 per cent.

GM will be remembered as a failure for a legendary investor.

But it says more about GM’s lack of imagination that it wasn’t willing
to embrace Mr. Kerkorian’s vision of a radically overhauled, global
car giant.

If Mr. Wagoner’s more modest turnaround falters, the company’s
shareholders will wish GM had taken a gamble with a master risk-taker.

"INTELLIGENCE BRIEF: IRAN OFFERS ENERGY SUPPLIES TO AZERBAIJAN"

The Power and Interest News Report (PINR
Dec 5 2006

In late November, Unified Energy Systems, Russia’s electricity
monopoly, announced that it would cut electricity supplies to
Azerbaijan from 300 megawatts to 60 megawatts in 2007. Just prior to
the announcement, Russian gas giant Gazprom announced its plan to cut
gas supplies to Azerbaijan and to raise the price of those supplies
about 13 percent. Officially, Moscow made these decisions because
Azerbaijan’s gas production rose during recent months and the country
is better able to cover its energy needs domestically. Unofficially,
however, it is likely that the decision stems from Russia’s goal of
obstructing Azeri attempts to sell more gas to Georgia.

Shortly after the Russian announcement, Baku’s government announced
that it had reached an agreement with Iran over electricity supplies.

The agreement states that there will be a mutual exchange of energy
during alternating consumption peak seasons. Additionally, the two
countries agreed to build two hydropower stations on both sides of the
Araz River. Azerbaijan’s president also announced the possibility that
oil shipments along the Baku-Novorossiisk pipeline could be reduced,
diverting oil toward different terminals such as the Georgian Black
Sea ports or the terminals on the Turkish Mediterranean coast.

Even though this development does not mean the beginning of a new
alliance, the Iranian-Azeri deal is remarkable. It is a clear example
of how the geometry of geopolitical interests in the Caucasus is
fluid and complex. By replacing Russia in the energy sphere, Tehran
wants to demonstrate its will to use its energy resources to play a
more decisive role in the Caucasus and in Central Asia. This posture
could have several effects on the political balance in the region.

For one, the Iranian move demonstrates its complex relations with
Russia. While often their interests run parallel with each other,
they still run on separate tracks. Iran delivers gas to Georgia,
for example, even though the latter country is emerging as a key pawn
for U.S. interests in the region. In the same way, Tehran will sell
electricity and gas to Azerbaijan to send a signal to its northern
neighbors that it has the capability to help those countries with
their energy needs.

Iran’s agreement with Baku represents a paradigmatic case of pragmatism
in Iranian foreign policy. During the past few years, Baku and Tehran
have had many disputes: territorial division of the Caspian Sea, whose
southern seabed is contested between Iran and Azerbaijan; the issue of
ethnic Azeri irredentism within Iran, in which Azeris represent the
largest ethnic minority; the proximity of Iran with Armenia over the
Nagorno-Karabakh conflict; and the substantial pro-Western attitude
taken by Baku since the disintegration of the Soviet Union. These
are all elements of tension between the two countries. Such factors,
however, do not prevent deals in particular fields that serve their
short-term interests.

Notwithstanding the support of Russia for Iran’s nuclear research
program and their common interests in the Middle East, Tehran wants
to play a more independent role in the Caucasus and in Central Asia.

Therefore, it wants to promote its role as an energy seller to better
serve its geopolitical and security interests near its northern
boundaries, even though these moves could damage Russia’s regional
posture. The Iranian-Azeri energy agreement is an example of this
approach. It does not represent the beginning of a new, different
Iranian foreign policy, but rather it is a further signal of Iran’s
pragmatism in international affairs.

The Power and Interest News Report (PINR) is an independent
organization that utilizes open source intelligence to provide conflict
analysis services in the context of international relations.

PINR approaches a subject based upon the powers and interests
involved, leaving the moral judgments to the reader. This report
may not be reproduced, reprinted or broadcast without the written
permission of [email protected]. All comments should be directed
to [email protected].

ac=view_report&report_id=591&language_id=1

UNIVERSITY SUSPENDS TURKISH PROFESSOR
Suzan Fraser

Associated Press
Dec 5 2006

ANKARA, Turkey – A university has suspended one of its professors for
remarks he made about Turkey’s revered founder, Mustafa Kemal Ataturk,
an official said Monday.

The suspension of professor Atilla Yayla has brought into sharp
focus the country’s ambivalence toward freedom of speech even as it
intensifies its campaign to join the European Union.

Ankara’s Gazi University suspended Yayla last week after the political
scientist criticized Ataturk at a conference in the Aegean coastal city
of Izmir, an official at the state-run university said on condition of
anonymity because civil servants are barred from speaking to reporters
without prior authorization.

News reports said the professor was suspended after he referred to
the late soldier-statesman as "that man," criticized the statues
and pictures of Ataturk adorning government offices, and said an
era of one-party rule under Ataturk had led to "regression rather
than progress."

Turkey’s European Union membership bid looks increasingly troubled over
what European officials say is a slowdown in reforms, including in free
speech, and on Turkey’s refusal to open up its ports and airports to
EU member Cyprus. The European Commission recommended last week that
the EU freeze negotiations on eight of 35 policy areas in Turkey’s
membership talks, which began in October 2005.

Earlier this year, novelist Orhan Pamuk was forced to stand trial,
after a group of ultra-nationalist lawyers accused him of "insulting
Turkishness" for telling a Swiss newspaper that 1 million Armenians
were killed on Turkish territory. The trial was dropped on a
technicality under heavy pressure from the European Union. Pamuk
later won the Nobel Prize for Literature.

Ataturk founded secular and Westward-looking Turkey from the ashes
of the Ottoman Empire in 1923, after saving the country from invading
Western powers.

Regulations require that his portraits hang in government offices and
schools, but the affection of Turks is so great toward their founder
that many also hang his picture in their homes, shops and offices.

At the same time, more and more Turks are questioning his legacy and
the rigid way some of his followers – hard-liners inside the military,
the bureaucracy and the judiciary – are interpreting his principles
to oppose liberal reforms and change.

The university’s chancellor on Monday defended his decision to
temporarily suspend Yayla until an investigation is completed.

A professor "does not have to like Ataturk but I cannot allow a person
who is opposed to the Republic’s main principles to educate students,"
Yamac told Vatan newspaper in an interview published Monday.

Yayla’s comments have divided Turkey. A group of protesters sent
Yamac a parcel containing sticky tape over the weekend, so that he
may "gag professors." Others petitioned the university saying Yayla
should not be allowed to teach.