BY 2007 DRAFT STATE BUDGET, EXPENDITURES ON MAINTENANCE OF STATE
GOVERNANCE MACHINERY TO INCREASE BY 5.2 BILLION DRAMS
YEREVAN, NOVEMBER 3, NOYAN TAPAN. By the 2007 draft state budget,
the expenditures on maintenance of the state governance machinery
will make 40.5 bln drams, which exceeds the 2006 financing by
5.2 bln drams (about 13.7 mln USD). Presenting the issue of the
draft state budget-envisaged financing of the state governance
machinery at the November 3 joint sitting of the RA National Assembly
standing committees, RA Deputy Minister of Finance and Economy Pavel
Safarian said that 67% of the increase of financing is conditioned
by the planned growth in salaries of civil servants and the related
increase in allocations for social secirity payments. Particularly,
from January 1, 2007 it is envisaged to set the basic official
salary of civil servants at 35,500 drams instead of 30,000 drams in
2006. The total cost of this change is 1.2 bln drams. As a result,
in 2007 the average salary of civil servants will make 104,000 drams
instead of the current 87,000 drams. From July 1, 2007 it is planned
to increase the salaries of high-ranking officials by about 40%, for
which the draft state budget envisages additional financing of 676
mln drams. One of the peculiarities of the law on official salaries
of high-ranking officials to be adopted soon is that their salaries
will be set not in absolute figures but in comparison with the minimal
salary in Armenia. Salaries of other categories of employees of the
state governance machinery will increase by 20%, which requires
additional financing of 508 mln drams. According to P. Safarian,
the growth in the salary fund of the state governance machinery is
also conditioned by some structural changes, including the creation
of the Judicial Department and a growth in the number of employees
due to the increased functions of some state governance bodies. As a
result, in 2007 the number of jobs in the state governance machinery
will increase by 174 and make 15,329.5. The deputy minister said that
along with these financing changes, the share of expenditures on the
state governance machinery in the overall budgetary expenditures will
remain the same compared with 2006 – 7.3%, while their ratio to GDP
will decline – from 1.47% in 2006 to 1.37%.

TIGRAN SARGSIAN: WITH HELP OF RF CENTRAL BANK, CBA PREVENTED SEVERAL
LARGE-SCALE MONEY LAUNDERING OPERATIONS
YEREVAN, NOVEMBER 3, NOYAN TAPAN. “Remittances from Russia to Armenia
are mainly those of natural persons, i.e remittances sent by numerous
Armenians working in Russia. As regards money laundering, the Central
Banks of Armenia and Russia closely cooperate in the fight against
it,” Tigran Sargsian, Chairman of the Central Bank of Armenia (CBA),
current Chairman of the Interstate Bank, said at the press conference
to summarize the results of the Interstate Bank Board’s meeting in
Yerevan on November 3. Chairman of the Central Bank of the Russian
Federation Sergei Ignatyev and Chairman of Kazakhstan’s National Bank
Anvar Saydenov took part in the press conference. Responding to NT
correspondent’s question about whether “there exists a movement of
“dirty” or grey money from Russia to Armenia”, T. Sargsian said that
experts of the RF CB came to Armenia and discussed the schemes used by
some commercial banks for money laundering. “We took these schemes as a
basis and follow the transfers made. If they are made by these schemes,
the CBA applies the respective measures to these banks to prevent
such banking operations from being carried out,” CBA Chairman said,
adding that in such cases at the CBA’s request, the offshore accounts
of the banks attempting to use the indicated schemes are closed.
“I think, with the help of the RF Central Bank, we have succeeded
in prevention of several large-scale money laundering operations,”
T. Sargsian stated.
“I’d like to make some corrections, as the matter concerns tax and
customs payments evasion rather than a “dirty” money movement,” Sergei
Ignatyev said, noting that Russian residents attempt to do this. “It
is an ordinary situation at a customs-house when a Russian importer is
reluctant to state the real value of goods, indicates a lower value
in the declaration to pay less customs duties and VAT. So he has the
problem of moving his money abroad in the so-to-speak “shadow” way,
that is, without declaring what money it is and for what purposes
it is envisaged,” S. Ignatyev said, adding that “they try to solve
these problems by using various schemes.” According to him, there
have been cases that some banks of the post-Soviet countries have
been involved, in an active or passive way, in these schemes. In
his words, the RF CB actively cooperates with the central banks of
other countries, “in some cases they are the first to apply to us,
in other cases we apply to them and take the appropriate measures to
reduce the number of such operations,” S. Ignatyev noted. Asked “what
scale is the question about”, T. Sargsian replied that a case when
“the transfers amounted to several billion dollars over two years”
was revealed with the help of the RF CB. “The scheme was approximately
the same as described by my colleague. It must be established what
part was an attempt to evade taxes and which part was legal.”

ACCORDING TO PANORAMA.AM, ARMENTEL SOLD TO RUSSIAN COMPANY VYMPELCOM
YEREVAN, NOVEMBER 3, NOYAN TAPAN. According to the website panorama.am,
ArmenTel company has been sold to the Russian company Vympelcom. The
website informs its visitors that Vympelcom was the first Russian
company whose shares were listed on the New York stock exchange (since
1997). Most of its shares are owned by the Norwegian company Telenor,
one of the world’s telecommunication leaders. Besides, shares are owned
by the following companes: Egerton Capital Ltd, Charlemagne Capital,
Fidelity Internation, DWS Invest Bric Plus, Fidelity Fundseur, Deutsche
Bank AG, Jp Morgan Chase & Go, Brinson Partners, Merill Lynch Invest,
Axa, Pictet Asset Managem, Capital International, Thames River Capital,
Baring Eastern Europe, Raiffeisenosteuropa, Barclays Clobal Inve,
Credit Suisse Asset, and the Russian companies: Telenor East Inv,
Eco Telecom, Tehspetsmonthazh, Rapit LLC, Mitsar LLC, Veltex LLC,
Varkedge LTD, Occidental MGMT, Karino Trading L, Ravenscroft Hold,
Songo LLC and Express Times Ltd.
There have been no official reports to confirm this information. To
recap, a few weeks ago there were reports in the press that ArmenTel
was sold to an Arab company but this information was later refuted.

FREEDOM HOUSE CALLS ON MILLENNIUM CHALLENGE CORPORATION TO DISCONTINUE
ASSISTANCE TO ARMENIA
YEREVAN, NOVEMBER 3, NOYAN TAPAN. Freedom House organization called
on the Millennium Challenge Corporation (MCC) to discontinue its
assistance to several countries, inluding Armenia, for the reason that
protection of political rights and civil freedoms are not ensured in
these countries, Radio Liberty reported. The MCC Board of Directors
on November 8 will select the governments eligible for applying for
assistance in 2007. Freedom House urges the MCC not to select “the
countries having low scores of political rights and civil freedoms,
although by these indices they meet the standards for participation in
this year’s selection process. These countries are Armenia, Bhutan,
Egypt, Jordan, Maldives, Tunisia and Vietnam,” the November 3 press
release of Freedom House reads. Frredom House appeals to the MCC to
keep attention on countries like Armenia, which signed the agreements
but do not secure the standards promised in the field of democratic
governance. “Armenia did not keep its promise to the MCC to improve
its institutional commitments to democracy and tolerance towards the
opposition. Despite the appeal of the MCC Chief Executive Ambassador
Danilovich, the violations committed at the constitutional referendum
in November 2005 have not been investigated. The implementaion of
timid reforms approved by the referendum was stopped in 2006, and in
the opposition’s opinion, violations will again be committed at the
upcoming elections. Many antidemocratic methods are being used to keep
power. The judicial branch is subjected to political pressure of the
executive branch. Despite the fact that a new legislation was passed
to secure freedom of the mass media, the atmosphere of tension has
not improved, and attacks on journalists with the use of violence
continue,” Freedom House’s press release says. To recap, under the
Millennium Challenge Program, the US will allocate 235 mln USD to
Armenia in the next 5 years for the development of rural settlements.
From: Emil Lazarian | Ararat NewsPress

David Babayan: Adoption of the Constitution somewhat resembles baptism
04.11.2006 14:54
Marlena Hovsepyan
“Radiolur”
December 10 Constitutional Referendum will be held in Nagorno Karabakh.
Yesterday NKR President Arkady Ghukasyan signed a corresponding
decree. It is characteristic that the referendum will be held just on
December 10. To remind, 15 years ago on the same day the Referendum
on Independence was held in Nagorno Karabakh, and 99.9 % of the
participants voted for independence of the Nagorno Karabakh Republic.
NKR is actively preparing for the important event to be held in a
month. Up to now discussions have been held in the political field. The
public sector did not stay apart, either. November will also be rich
in discussions and roundtables, political scientist David Babayan told
“Radiolur.”
“Adoption of the Constitution somewhat resembles baptism. Some people
are baptized immediately after birth; others are christened in a more
mature age, when they start realizing what they are doing. During 15
years Nagorno Karabakh has really passed a long way. It has passed
through referendums, war, post-war reconstruction and economic
development. We look at our past and see evaluate it. We have an
exact view of the future,” says the political scientist.
Are there any similarities with the Armenian Constitution? In response
to the question, David Babayan noted that there are some similarities,
but certain differences also exist. “Although we are one nation with
common culture, but the peculiarities should be taken into account,”
he said.
The political scientist calls on the people of Karabakh to play
an active role in the adoption of the Mail Law of the country –
the Constitution.

Maxim Poghosyan wounded by an Azeri sniper
ArmRadio.am
04.11.2006 11:37
November 3 resident of Aygepar village Maxim Poghosyan, born in 1978,
was wounded by an Azeri sniper on Aygepar-Movses road.
Poghosysn was taken to the medical center of Berd, Press Service of
RA Ministry of Defense reports
From: Emil Lazarian | Ararat NewsPress

Turkish Police tried to arrest Armenian MP Gegham Manukyan
ArmRadio.am
04.11.2006 13:34
Turkish Police tried yesterday to arrest RA National Assembly Deputy
Gegham Manukyan, when the latter spoke about the Armenian Genocide
during an international forum in Istanbul.
During the Newsxchange conference Turkish Prime Minister Rejeb Tayyib
Erdogan reconfirmed the position of Ankara that there was no Armenian
Genocide.
Member f the Armenian Revolutionary Federation Gegham Manukyan
emphasized the fact that member of the Turkish Parliament Grigor
Zohrap was caught and murdered. He noted also the Istanbul is the city
where on April 24, 1915 the Genocide started with mass detention of
Armenian intellectuals. Gegham Manukyan called on the Turkish society
to start investigating “the dark pages of own history and acknowledge
the fact of the Genocide.” “Recognition will allow the two states
to take the path of peaceful coexistence,” said the Deputy. Gegham
Manukyan raised a poster reading, “Turkey must have the courage to
recognize the Armenian Genocide.”
Following the speech, the Police surrounded Gegham Manukyan, trying
to take him out of the conference hall and arrest. However, the
journalists did not allow this.
Organizers of the forum declared they would join the Armenian
parliamentarian in case he is arrested.

United Armenian Fund donates $4.5 million to all 28 Armenian schools in
Lebanon
ArmRadio.am
04.11.2006 15:40
The United Armenian Fund, through a generous grant from the Lincy
Foundation, is donating a total of $4.5 million to all 28 Armenian
schools throughout Lebanon.
This contribution is prompted by the economic crisis of the
past few years, which was aggravated by the devastating attack on
Lebanon last summer. Thousands of needy Armenian families could no
longer afford the tuition for the Armenian schools their children
attended. Consequently, most of these schools were in no position to
pay the salaries of their teachers and staff.
The UAF funds contributed to these schools are designated for three
specific purposes: $3.2 million to pay full or partial tuition for
5,092 needy Armenian students, which constitutes close to 75% of the
7,029 students enrolled in all 28 schools during the 2006-07 academic
year; $757,000 to cover the salaries owed by most of the schools to
536 teachers and staff for the past academic year; a total of $513,000
for the general operating expenses of these schools.
Harut Sassounian, the President of the United Armenian Fund, is
currently in Lebanon to visit all 28 Armenian schools, meet with their
principals and educational councils, and deliver the earmarked sums
to each school.
“The UAF’s contribution will be allocated to all Armenian schools in
Lebanon, without exception,” Sassounian said.

Armenian, Turkish communities battle in textbook lawsuit
Both groups want their historical accounts heard.
By Michael Doyle
Fresno Bee
Bee Washington Bureau
11/04/06
WASHINGTON – A textbook battle is pitting Americans of Armenian
and Turkish descent against one another in a federal courtroom.
The winner will write history.
And though the fight may seem far away, it’s captivating California’s
politically vocal Armenian-American community.
“Most people who are interested in Armenian politics know about
it,” said Hygo Ohannessian, chairwoman of the Fresno-based Central
California chapter of the Armenian National Committee of America.
Ohannessian and her allies are waiting on U.S. District Judge Mark Wolf
in Boston. For the past year, Wolf has overseen a lawsuit challenging
the way Massachusetts high school study guides handle the horrific
events of 1915-23.
Genocide, Armenians and many historians call it. By some counts, upward
of 1.5 million Armenians died at the hands of the Ottoman Empire. Turks
and Armenians have disputed how to characterize the tragic events.
“If the Turks win this, they are going to challenge textbooks in
other states,” predicted Ohannes Boghossian, chairman of the Armenian
National Committee’s Sacramento chapter.
But in its lawsuit filed last October, the Assembly of Turkish American
Associations claims Massachusetts capitulated to Armenian-American
pressure and “purged” the state’s study guides of any material
challenging Armenian claims.
“This case is not about whether there was or was not an Armenian
genocide,” attorney Harvey Silverglate said in an interview this
week, “but rather, about whether teachers and students are going to
be able to study and discuss the question without undue political
interference.”
Undeniably, Armenian-Americans wield political clout, particularly
in areas such as the San Joaquin Valley, with large ethnic populations.
The leading Republican author of a commemorative Armenian genocide
resolution offered this Congress is Rep. George Radanovich, R-Mariposa.
But Turkey, too, flexes political muscle. While Radanovich’s
current Armenian genocide resolution has 159 House co-sponsors,
similar resolutions have been consistently blocked by presidents of
both parties.
With lifetime tenure and 21 years on the federal bench, Wolf is
shielded from overt pressure. Still, his next decision remains closely
watched, as he considers whether to dismiss the lawsuit filed by
Silverglate on behalf of the Turkish American associations.
In 1999, an initial version of the Massachusetts study guide cited
reference materials that reflected Turkish views challenging the
genocide argument. These were optional references, not required to
be taught.
“These viewpoints contend … that the fate of the Ottoman Armenians
was the result of a number of factors, including the Ottoman
government’s response to an Armenian revolt in alliance with Russia,
a tragically flawed deportation policy and mutual wartime massacres,
which brought great suffering and death to both Ottoman Armenians
and Muslims,” the lawsuit argues.
But after a Massachusetts state senator complained and the
Armenian-American community mobilized, the state’s education
commissioner changed course. The state subsequently deleted study
guide references to Turkish sites, including Georgetown University’s
Institute of Turkish Studies.
“It’s fine for governments to help make history, but not to write
it,” Silverglate said. “The First Amendment is meant to provide a
free marketplace of ideas to determine truth, and history.”
The Armenian National Committee and the Los Angeles-based Armenian
Bar Association have both urged Wolf in an amicus brief to toss out
the case. They argue that Massachusetts acted reasonably in omitting
the Turkish perspective.
“It would be like having the Nazi Party coming in and forcing its
views of the Holocaust,” Ohannessian said Tuesday.
The Armenian-Americans have strong U.S. Supreme Court precedent on
their side, which may fatally undercut Silverglate’s lawsuit. The court
has ruled repeatedly, as the Armenian groups put it, that “the First
Amendment places no restraints” on the messages a government conveys
“Courts,” Massachusetts added in its own legal filing, “have no
authority either to control government speech or to second-guess
curriculum decisions made by the responsible public officials.”
Armenian-Americans cite, as well, the 37 states – including California
– whose legislatures have recognized the Armenian genocide. The study
guide, the groups say, should be appreciated “in the context of this
widespread official acknowledgment” of the tragedy.
In California, Ohannessian noted, textbooks refer to the Armenian
genocide – but she and other Armenian-American activists enhance
this with yearly seminars offered to Fresno and Clovis high school
students seeking extra credit.
The reporter can be reached at [email protected] or (202)
383-0006.
y/11188.html

A double salvo from Klaas Jan Huntelaar helped AFC
Huntelaar adds to Austria’s woes
Thursday, 2 November 2006
Ajax start their UEFA Cup Group F campaign with a 3-0
win against FK Austria Wien.
Uphill task
A goal in each half from Dutch international
Huntelaar, sandwiching a strike from Armenian
substitute Edgar Manucharyan, gave the Amsterdam side
a comfortable victory and inflicted a second heavy
group-stage defeat on Austria. They had lost 4-1 at
home against SV Zulte Waregem on Matchday 1 and
newly-appointed coach Georg Zellhofer now faces an
uphill task in their remaining games.
Aggressive start
Any doubts over whether Ajax would have the stomach
for the competition after being denied a UEFA
Champions League place by FC København in the third
qualifying round were dispelled as they went on the
offensive at the Amsterdam ArenA. Huntelaar and Wesley
Sneijder both shot wide, before each threatened again
with a header and a free-kick respectively.
Manucharyan scores
Huntelaar finally broke the deadlock after 35 minutes,
latching on to Hedwiges Maduro’s flick-on from a
Kenneth Perez set-piece. They continued to dominate
after the break and Austria’s Hungarian goalkeeper
Szabolcs Safar had to punch away a Perez effort before
Manucharyan – on for Maduro – doubled Ajax’s
advantage, converting a Sneijder cross with his right
foot after 65 minutes.
Late flourish
Huntelaar completed the rout three minutes later,
diverting Perez’s free-kick into the net with his
head. Markus Kiesenebner had a rare attempt for
Austria which whistled wide but it remained largely
one-way traffic. Safar did well to deny Huntelaar a
hat-trick after good work from Urby Emanuelson and
Zdenĕk Grygera then hit the bar as Ajax kept
pushing forward.
uefa.com 1998-2006.
–Boundary_(ID_uQT4BdkXnhYczwywDqqMAg) —