THE DEBT OF ARMENIA IS BETTER THAN THAT OF OUR NEIGHBORS

A1+
[10:32 pm] 11 December, 2006

The quantity of the debt is not important: what is important is that
in case of having debts the country is in better conditions than
its neighbors. At least this is what our officials think when they
speak about the external debt of Armenia mentioning "We have the best
debt portfolio".

As for the "best" part of the debt, representative of the RA Ministry
of Finance and Economy Arshaluys Margaryan says, "Our ‘tax portfolio’
does not contain strict responsibilities, the interest is 0%, and
the term is 10 years".

At present the external debt of Armenia is 1 billion 168 million
AMD. The majority of the debt, 1 billion 95 million AMD, is that of
the Government: the debt of the Central Bank is 166 million.

The majority of the external debt, about 70%, is that of the World
Bank.

As for the internal debt, it will be 58 billion 160 million 933
thousand AMD till December 31.

THEY DEMAND TO FREE SEFILYAN IMMEDIATELY

A1+
[10:34 pm] 11 December, 2006

Today, a number of parties and organizations have made a statement
about the arrest of Zhirayr Sefilyan. It says:

"On December 10 of the current year, about 15 armed and masked people
arrested former commander of the Shushi regiment, lieutenant colonel
Zhirayr Sefilyan, coordinator of the initiative ‘Union of Armenian
Volunteers’, head of the NGO ‘Protection of Liberated Lands’, in a
public place, in the presence of his wife and friends, violating the
11th and 12th articles of the RA Criminal Code.

On the same day, member of the initiative ‘Union of Armenian
Volunteers’ Vardan Malkhasyan was arrested in his own house, regardless
of the presence of his sick mother.

On the same day about 40 citizens were arrested and their houses were
searched. Until now, the fate of some of them is unclear.

We condemn any activity reminding the year 1937 and announce officially
that they authorities which have long exhausted all the civilized
resources, will not be able to create an atmosphere of fear but will
suffer the just anger of the society.

We demand to set Zhirayr Sefilyan, Vardan Malkhasyan and their friends
free immediately.

We also demand to give Zhirayr Sefilyan citizenship of Armenia for
sacrificing his whole life for the well-being of his country".

The statement was signed by "New Times", "Fatherland and Honor",
"Republic", "Democratic Path", "Democratic Homeland", RA People’s
Party, RA Democratic Party, "National Self-Determination Union",
"Constitutional Right Union", RA Progressive party, "Orinats yerkir",
Hnchakyan party, "National Democrats’ Union", and Nzhdehyan party.

It was also signed by the aldermen of the Intellectuals’ forum,
and the Civic Disobedience Movement.

NAGORNO-KARABAKH GAINS A CONSTITUTION, BUT LITTLE CLARITY FOR FUTURE
Zoe Powell

EurasiaNet, NY
Dec 12 2006

The disputed territory of Nagorno-Karabakh, a remote, predominantly
ethnic Armenian region formerly held by Azerbaijan, gained a
constitution on December 10, but the impact of the vote remains
contentious. The international community, if it followed the referendum
at all, criticized it as a potential threat to ongoing, delicate
talks between Armenia and Azerbaijan over the territory. But for the
separatist leadership itself, the vote was no more than a natural
step in its 15-year journey toward full-fledged independence.

"The constitution is not the answer to all our problems. The
constitution is a chance," declared de facto President Arkady
Ghoukassian at a December 11 press conference following the territory’s
adoption of the constitution. "Now that we’ve adopted a constitution,
we have a much better chance to become a democratic country according
to European standards . . . A country striving for European standards
has a better chance for recognition than a totalitarian regime."

Preliminary results show the referendum passed with the support
of almost 99 percent of the 78,389 Karabakhi voters taking part –
a staggeringly positive result that did not come as a surprise for
most residents in this isolated mountain region, a six to eight-hour
drive from the Armenian capital, Yerevan.

The vote was not without controversy, however. Some observers
initially questioned the referendum’s timing – presidential elections
are scheduled in the self-declared state for the summer of 2007 –
and the relatively abbreviated time for public discussion.

For now, though, the international community has given little
sign of giving the government – or the many voters surveyed by
EurasiaNet – their desired response. Azerbaijan, the European Union,
the Council of Europe, the Organization for Security and Cooperation
in Europe (OSCE), and GUAM (a regional association including Georgia,
Ukraine, Azerbaijan and Moldova) have all refused to recognize the
referendum as valid. In a recent statement, OSCE Chairman-in-Office
and Belgian Foreign Minister Karel de Gucht commented that the vote
could undermine progress made in talks mediated by the OSCE between
Armenia and Azerbaijan over the disputed territory. [For background
see the Eurasia Insight archive].

Meanwhile, Nagorno-Karabakh government officials maintain that
they’re moving on. "We, in any case, need to organize ourselves to
be independent," commented de facto Deputy Foreign Minister Masis
Mayilian. "What, should we wait 14 years until the Azerbaijanis agree
to build our state?"

Some 54 observers, primarily from Armenia, Russia and France, monitored
the voting process. The day of the vote, the 15th anniversary of
the territory’s original independence referendum, has been declared
"Constitution Day."

Rather than cause for conflict, territorial leaders assert, the
constitution should be cause for comparison – with Azerbaijan, which
battled Armenia and Karabakh separatists for control of the territory
from 1988-1994.

The 142-article document describes the Nagorno-Karabakh Republic as
"a sovereign, democratic legal and social state" with powers in
territory currently controlled by the separatist government. It
establishes a broad range of generally defined rights, from the
direct election of the territory’s president, parliament and local
governments, to the presumption of innocence and freedom of assembly,
speech, and religion. "If Azerbaijan had such a constitution, if it
was the same democratic state, it’d be easier to talk with them,"
Ghoukassian said. "I hope that this will be considered by the
international community."

The sensitive issue of the return of ethnic Azerbaijani refugees is
not specifically addressed in the document, although the constitution
provides for a right of return for "every citizen and foreign citizen
having the right to live in the Nagorno-Karabakh Republic." The issue
of citizenship has been left undefined, pending a later law.

Karabakhis currently carry Armenian passports, but cannot vote in
Armenia’s elections. Armenian is defined as the state language, but
the constitution guarantees "the free use of other languages spread
among the population."

"Whether recognized or not, we have rights," commented Gegam
Bagdasarian, editor of the independent weekly Demo and a member of the
Nagorno-Karabakh parliament who abstained from voting on the draft
constitution, approved on November 1. "The international community
should be interested in democracy. The more democracy we have, the
easier it will be to find a common language to resolve our problems."

The military initially had a strong say in separatist
Nagorno-Karabakh’s affairs, but in the years since a 2000 assassination
attempt against Ghoukassian, and the subsequent imprisonment of
de facto Defense Minister Samvel Babaian, civilian government has
asserted itself. Representatives of the territorial leadership claim
that Nagorno-Karabakh now compares favorably with both Azerbaijan
and Armenia in terms of freedom of expression.

Newspaper editor Bagdasarian agrees. A critical article in his paper,
Demo, questioned whether the constitutional referendum was linked to a
desire by Ghoukassian for a third presidential term. The fact that the
newspaper has not faced repercussions for questioning Ghoukassian’s
motives is a sign that greater openness has indeed taken root, the
editor maintained. The Nagorno-Karabakh leader, in office since 1997,
later held a press conference in which he stated that he would not
seek a third term.

"Five to six years ago, the government reacted very negatively to
critical stories. But now, not at all," Bagdasarian said.

Nonetheless, pragmatism dictates the response, he added. "It’s not
that they don’t react because they’re so civilized, but because they
don’t see a real threat [from print media] to themselves."

Nor did hopes among many ordinary Karabakhis voting in the referendum –
routinely described as "a duty" — focus on democracy alone. Status as
a legitimate, recognized state was one goal; the economic stability
that is seen to come with the trappings of a recognized state was
another.

"We’re a hard-working people. We want factories. We want work. We
want for everyone to have a normal life," said Artur, a 45-year-old
war veteran standing outside a grocery store not far from the polling
station where de facto President Ghoukassian cast his ballot. "We
have to vote so that people know our position."

Some voters queried on their way to the polls asserted that they
had studied the constitution carefully, but others shrugged off the
question. "Why read it?" commented one elderly man en route to cast
his ballot in Stepanakert’s theater. "I’m going to vote for it and
that’s all that’s needed."

Souten Tantazian, the chairman of polling station #30 in Stepanakert,
was succinct: "This is for our future."

Editor’s Note: Zoe Powell is the pseudonym for a journalist based
in Tbilisi.

A POLITICS OF MYTH
Seda Muradyan

Open Democracy, UK
Dec 12 2006

As women in Armenia renew efforts to secure their role in politics,
Seda Muradyan examines the challenges they confront, from flowers in
place of debate, to systemic corruption.

Twenty-two parties recently signed a document making proposals for
Armenia’s electoral code, to broaden women’s access to politics. It
suggests a 25 percent quota for women in party lists, up from the
current provision of only 3 percent. But the chances of any real
change emerging may be slim, given lack of support from two of the
largest factions in government. Women make up more than 65 percent
of the literate population with higher education. Yet they face an
uphill struggle to achieve political influence.

Armenia ranks among the lowest countries in the world for women’s
representation in parliament, with a participation rate of only 5
percent. In local government, this figure is below 2 percent. Seven
of the National Assembly’s 131 members are women, while one minister
and three deputy ministers are female. So why is women’s intellectual
potential neglected in state management? Women engaged in the public
sphere divide the underlying reasons into myths and realities.

Seda Muradyan is Armenia country director for the Institute of War
and Peace Reporting (IWPR)

Myth or reality? "It is cultural: politics is a man’s business"

One of the commonest explanations for women’s exclusion says politics
is a man’s business and Armenian women more frequently see themselves
as housewives, mothers and wives.

Alvard Petrosyan, of the Armenian Revolutionary Federation (a ruling
coalition member) does not think this is a myth. "Armenian women love
ruling the country or the family from behind their husbands’ backs.

Might it be true that it is important to maintain a womanly image? I
keep this in mind even when I am at the National Assembly… I
frequently hold back and think: ‘let these men speak out here’. In
cases where I become extremely active, I don’t show it off, and the
reason is in the nature of Armenian women." However, she is confident
that for the country to develop harmoniously both sexes should be
equally represented at the National Assembly.

In contrast, Hranush Kharatyan, head of the agency for ethnic
minorities, says "frequently we become ‘cultural conservatives’,
although our culture has no traditions of opposing women’s
activities". No matter how much women in Armenia might dispute cultural
factors, the moral-psychological atmosphere dictates certain attitudes
towards women politicians.

In 2005, Gagik Beglaryan won the Kentron community local administration
election over his rival Ruzan Khachatryan, the only female candidate
for the post. Throughout the campaign Gagik Beglaryan presented his
female rival with bunches of flowers instead of holding ideological
debates with her. On 8 March 2004, some five hundred women marched
to the presidential residence to demand the ousting of the incumbent
authorities. The president claimed, "those women either have no
families or lack family warmth". (Ruzan Khachatryan disputes this
crude equation. "There are women in Armenia who are actively involved
in social and political work, but it does not keep them back from
being caring mothers and loving wives.")

Meanwhile, a 2006 Gallup survey measuring pre-election tendencies
revealed that, presented with a choice, Armenian voters would give
preference to male candidates. Only 6 percent of voters were ready
to vote for women against 64 percent support for male candidates.

Political analyst Aghasi Yenokyan believes that men’s predominance
stems from social factors, and that women’s inclusion remains a mere
cosmetic measure from parties. "Women have not traditionally been
engaged in politics in Armenia. It is not perceived as a matter of
their daily activities. They are still not formed as a social group
that could demand and get benefits."

So is there a desire and understanding for women’s participation in
politics? Khosrov Harutyunyan, chairman of the Christian-Democratic
Party of Armenia, regrets he can’t see such demand, though he strongly
believes that many things – from tolerance to corruption – would
radically change if women played a decisive political role. Yet he
is confident that women’s suppression by men is not the problem.

He too attributes women’s lack of participation to social attitudes.

But scratch the surface, and the reality may be more fluid than the
myth. Armenia’s national UNIFEM program coordinator Ilona Ter-Minasyan
refutes the idea that the Armenian mentality is an obstacle. "There
have been many other things that our mentality once lacked. But we
are already seeing change in some spheres despite the fact only a
short period of time has elapsed. We can’t say our mentality in five
hundred years will be the same as it was three hundred years ago. We
can influence our mentality, to change aspects of it, and we must
do so. We need to realise the necessity and orient ourselves to the
country’s development."

Myth: "Women are unwilling to go into politics"

That women are unwilling to go into politics is one of the most
irritating stereotypes for politically active Armenian women. Women
politicians are confident that they are "simply not allowed to come
close to politics".

Eighteen women ran for seats in the National Assembly during the 2003
parliamentary election in Armenia. Only one was elected.

"Today the deputies in the National Assembly are mostly those who
have gained property in the course of the time and their aim is to
keep that property. They will hardly make way to others. That is
why they need a myth about the unwillingness of the women to go into
politics," says Jemma Hasratyan, chair of the Association of Women
with University Education.

Some experts think that the view that women are to some extent
unready to be engaged in politics relates to women’s lack of political
experience rather than inadequate knowledge or education.

Ruzan Khachatryan is confident there is quite a big number of
politically active women, but they are not allowed to enter the field
because the opponents exploit ‘dirty political mechanisms’ like the
use of force, violence and fraud. She says this is why women do not
want to be engaged in politics, despite their suitability.

Realities

Once myths are dispensed with, the underlying realities become
clearer. The political and economic spheres are adjusted to suit male
managers, such that women are more likely to bend to the system than
to struggle against it. Women require the backing of a political
party to enter politics, and cannot take part independently. The
highest positions they can hope to achieve are head of an agency,
advisor or deputy minister – not positions that would allow them to
reform the system. "A woman moving in this milieu needs to adopt the
laws and the rules. The environment does not create the conditions
for a woman to manifest her other qualities," says Ilona Ter-Minasyan.

And the system is frequently corrupt. A recent survey by Transparency
International showed that 62.9 percent of the Armenian population
thinks corruption has grown in the last three years. Amalia Kostanyan
of Transparency International is confident that the system in Armenia
is "corrupt from top to toe".

Women politicians think a certain percentage of representation would
help them avoid obeying the rules of the game set by men, in terms
of corruption, and prevent them falling victim to the system.

Will quotas solve the problem?

International organisations promote women’s increased participation
in politics, in the hope of building democracy (a key requirement in a
recently adopted action plan for greater cooperation with the European
Union, for example). But their efforts have so far been successful only
in the non-governmental sector, where women play a major role. Analysts
believe the overall situation will remain unchanged unless women are
artificially included in politics, with steps on the state level to
promote women’s entrance into the political arena.

UN expert Dubravka Simonovich thinks the implementation of quotas is
an effective mechanism to redress the balance, while specifying that
it is not "a sign of discrimination towards men, because convention
provides for quotas to promote women’s participation in big politics".

"A parliament that does not represent the interests of the half of the
population is not representative. It’s not an aim in itself, but the
balanced representation of men and women provides the opportunity to
consider problems raised by both men and women," says Jemma Hasratyan.

Nevertheless, many believe legislation alone will not solve
the problem: attitudes also need to change. Both opposition and
pro-governmental parties accept the need for more women in the National
Assembly. Yet they agree the attempt to artificially increase their
number will not be very productive.

At the parliamentary election 2003 it was decided that 5 percent of
the party lists would be allotted to women. Because the position of
women on the lists was not specified, men immediately took advantage,
says Hermine Naghdalyan, elected on the Republican Party list. Women
were included to meet legal requirements, but their names were set
in the lowest places.

To escape such disappointment in future the introduction of quotas
needs to be accompanied by a relevant work with the political parties,
says Ilona Ter-Minasyan. Women’s names should be set in every fourth
place in the list, and women should not be included simply for
being women, but so they are engaged in the development of human
and intellectual resources. Foreign experience shows the quantity
gradually turns into a quality.

Looking ahead: election 2007

Parliamentary elections in May 2007 will be another test of Armenian
democracy. Armenia has failed its previous tests. It is too early to
forecast the results this time, but the unofficial campaigns already
launched do not inspire much hope.

The Republican Party of Armenia, the largest coalitional political
force in Armenia, has chosen to target young people by engaging them
in various events and organising concerts by Russian pop stars for
them. Gagik Tsarukyan of the Prosperous Armenia Party pays young
people’s tuition fees, distributes potatoes and seeds, and organises
activities for rural villagers. Despite the prohibition of business
activities by politicians, many members of the National Assembly
of Armenia don’t bother concealing their violations, and their
entrepreneurial endeavours enable them to spend large amounts of
money gaining voters’ hearts.

These unofficial campaigns tend to replace intellectual and
policy competition, and distort the democratic process, since such
"benevolence" – which is not within the responsibilities or the
salaries of National Assembly members – generally amounts to bribery.

Such methods add to the obstacles women face, as they are less able
to raise funds for campaigns.

So perhaps democracy itself will be the force that properly enables
women’s participation. "The artificial involvement of women in
politics will not make the country democratic. If the country becomes
democratic, women’s inclusion in politics will grow without special
efforts," says National Assembly member Shavarsh Kocharyan.

In any case, it seems the two will need to go hand in hand.

Lena Badeyan of the A1+ TV Company also contributed to this article.

esolution_1325/armenia_4176.jsp

AUTHORITIES PRESS COUP CHARGES AGAINST WAR VETERAN
By Astghik Bedevian

Radio Liberty, Czech Rep.
Dec 12 2006

Law-enforcement authorities on Tuesday pressed coup charges against
a prominent Lebanese citizen of Armenian descent who was arrested at
the weekend for allegedly plotting to overthrow Armenia’s government.

Zhirayr Sefilian, the leader of a nationalist group opposed to Armenian
concessions to Azerbaijan in the Nagorno-Karabakh conflict, appeared
to have avoided deportation from the country and looked set to stand
trial there instead.

The National Security Service (NSS) says Sefilian, a veteran of
the 1991-1994 war in Karabakh, set up a clandestine organization to
mount an armed uprising against the government during parliamentary
elections due next spring. Dozens of its alleged members were also
briefly detained over the weekend.

A court in Yerevan was considering behind the closed doors late
Tuesday the NSS’s request to keep Sefilian under arrest pending
investigation. The suspect was expected to be remanded in pre-trial
custody.

The NSS’s decision to formally charge Sefilian with publicly calling
for a "violent change of constitutional order" suggested that he will
not be deported from Armenia despite claims to the contrary made by
his friends and associates.

"I rule out his deportation," Sefilian’s Lebanese-Armenian wife,
Nanor Parseghian, told RFE/RL earlier in the day. "First of all,
because his passport’s validity period has expired and no third
country will agree to take him in and transfer to Lebanon."

The case against the decorated war veteran was condemned by more
than a dozen Armenian opposition parties. In a joint statement issued
late Monday, they accused the authorities of stifling dissent ahead
of the upcoming elections and demanded his immediate release from jail.

A similar statement was also released by 18 members of Armenia’s
parliament, most of them representing opposition factions. Three of
them also offered to pay bail on Sefilian’s behalf.

The inquiry was launched by the NSS under an article of the Armenian
Criminal Code that was invoked by state prosecutors in their
controversial criminal case against the country’s leading opposition
groups that tried unsuccessfully to topple the government with a
campaign of street protests in spring 2004.

U.S. AID TO ARMENIA LINKED WITH CLEAN POLLS
By Ruben Meloyan

Radio Liberty, Czech Rep.
Dec 12 2006

The provision of $236 million in additional U.S. economic assistance
to Armenia is conditional on proper conduct of its forthcoming
parliamentary and presidential elections, U.S. officials said on
Tuesday.

The five-year aid package is part of the U.S. administration’s
Millennium Challenge Account (MCA) program that seeks promote economic
and political reforms around the world. Armenia and neighboring
Georgia remain the only ex-Soviet states eligible for the scheme. The
Millennium Challenge Corporation, a U.S. government agency managing
it, has already disbursed the first $1.4 million installment of the
sum earmarked for Armenia.

"In order for Armenia to continue to receive this funding, the Armenian
government must maintain a high level of performance in ruling justly,
investing in people and promoting economic freedom," Anthony Godfrey,
the U.S. charge d’affaires in Yerevan, told reporters in Yerevan. "Only
by continuing to institute democratic reforms, including ensuring a
free and fair process in the run-up to the 2007 and 2008 elections,
can Armenia make sure that its people can continue to benefit from
this $236 million program."

Earlier this month, the MCC reaffirmed Armenia’s eligibility for
the program despite serious concerns about the Yerevan government’s
democracy and human rights records that were expressed by the
corporation’s chief executive, John Danilovich. In a May letter to
President Robert Kocharian, Danilovich said that a "continued negative
trend in Armenia’s policy performance would endanger the continuation
of the recently signed [MCA] Compact."

Godfrey warned that the MCC might therefore reconsider its decision
in the course of the next year. "Normally the board will review
eligibility criteria one time per year," he said. "But in the case of
a sharp drop in any of the [MCA eligibility] indicators or categories,
it can make a more abrupt decision."

"But it’s our great hope that that won’t happen," the U.S. diplomat
added.

Alex Russin, an MCC executive in charge of the compact’s
implementation, made it clear that next year’s parliamentary elections
will be a crucial test for the Armenian authorities’ stated commitment
to democracy and rule of law. "We are concerned about the upcoming
elections, and I hope that it will be a chance for the government
and the Armenian people to demonstrate greater improvement over what
happened last year," Russin said in an apparent reference to the
disputed November 2005 referendum.

The U.S. government strongly criticized the referendum and previous
Armenian elections that were marred by serious fraud reported by
local and international observers.

SENATE VOTE ON NEW U.S. ENVOY TO ARMENIA AGAIN DELAYED
By Emil Danielyan

Radio Liberty, Czech Rep.
Dec 12 2006

The U.S. Senate has again delayed the confirmation of President
George W. Bush’s choice of the new U.S. ambassador to Armenia over
his administration’s reluctance to term the mass killings of Armenians
in Ottoman Turkey a genocide.

The Senate failed to vote on the nomination of career diplomat Richard
Hoagland before going into winter recess late Monday. This means that
Bush will have to again nominate Hoagland for the vacant post or to
propose another candidate to the new, Democrat-controlled chamber
next month. He also has the option of making a so-called "recess
appointment" that does not require Senate confirmation.

The previous U.S. ambassador, John Evans, is believed to have been
recalled by the Bush administration because of his public description
of the slaughter of more than one million Ottoman Armenians as
genocide. Hoagland refused to use the politically sensitive term
with regard to the 1915-1918 massacres during confirmation hearings
at the Senate Foreign Relations Committee this summer, angering the
influential Armenian-American community and pro-Armenian members
of Congress.

The panel twice delayed a vote on the nomination before endorsing it
on September 6. Hoagland’s confirmation by the full Senate seemed a
forgone conclusion until a pro-Armenian Democratic senator, Robert
Menendez of New Jersey, put a "hold" on it a week later.

Menendez reaffirmed his opposition to Hoagland’s appointment after
securing his reelection in last month’s mid-term congressional
elections that saw both houses of Congress fall under Democrat
control. He was joined on December 1 by the new Senate Majority Leader
Harry Reid, a longtime advocate of Armenian issues, in urging Bush
to propose another nominee.

The incoming Democratic chairman of the Foreign Relations Committee,
Joseph Biden, likewise criticized the Bush administration for its
refusal to explicitly recognize the Armenian genocide, but eventually
voted for its ambassador-designate to Armenia. Armenian-American
sources say Biden is therefore unlikely to block Hoagland’s
appointment.

The Senate’s failure to fill the vacant diplomatic post was welcomed
by the Armenian National Committee of America, a lobbying organization
strongly opposed to the Hoagland nomination. "With the adjournment of
the 109th Congress, we renew our call upon the President to recognize
that — as a matter of basic morality — a genocide denier should
never represent the United States in Armenia," Ken Hachikian, the
ANCA chairman, said in a statement.

Another, less radical advocacy group, the Armenian Assembly of America,
has also expressed its solidarity with Evans but now seems reluctant
to drag out the confirmation process. Assembly leaders argue that
Hoagland has not explicitly denied the Armenian genocide.

They also believe that the absence of a U.S. ambassador in Yerevan
is damaging U.S.-Armenian ties.

TURKEY MUST RESPECT ARMENIA BEFORE ENTERING THE EU
By Aghavni Harutiunian

AZG Armenian Daily
12/12/2006

So as to become a member of the EU Turkey must fulfill its commitments
and achieve economical, political, regional and social progress. The
regional policy of Turkey is promoting difficulties and tension in
South Caucasus and harms affects hampers the progress in the Republic
of Armenia. This statement was made by head of the Armenia Support
Group, Congressman Joe Knollenberg at the Representatives’ Chamber
of the US Parliament. The Armenian Assembly of America reports that
the 13 yearlong blockade of a European Council member-state is an
intolerable fact. Therefore, before becoming an EU member, Turkey
must accept its faults and respect its neighbors, particularly Armenia.

ETHIOPIA: SHOE FACTORY REVIVED BY ITALIAN CONTRACT
Issayas Mekuria

Addis Fortune (Addis Ababa) – Ethiopia
Dec 12 2006

Anbessa Shoe Factory is ready to export shoe upper to Italian Co.
Adelchi after a contractual agreement between the companies. This
will be the most demanding order Anbessa has yet to fulfil.

The state-owned Anbessa Shoe Factory S.C signed a 104,000-dollar
contract with La Nuova Adelchi SPA, enabling it to supply the Italian
company with semi-finished shoe products.

Eniyew Zeleke, general manager of the Factory and Adelechi Sergio,
owner of the Company signed the contract on November 18, 2006; Anbessa
was to provide 13,000 pairs of shoe upper, without soles to Italy in
two phases.

"This contract is going to revive our factory from demise," a
machine operator that has worked at Anbessa for the past 32 years
told Fortune. "We are truly happy."

Anbessa Shoe Factory is the first of its kind to be established in
the country. An individual, whose identity remains unknown, founded
the Factory in 1939 and ran it for the following three years. As of
1942, Mardious Darmar, an Armenian citizen, owned it and renamed it
Darmar Shoe Factory. He managed it for 33 years until in 1975, Darmar,
which at that time had a capital of 217,000Br was nationalized by
the Derg Regime and renamed Anbessa Shoe Factory and Awash Tannery
for the next 17 years.

In 1993, Anbessa Shoe Factory was reorganized with a capital of
6.3 million Birr. This Factory, which has 16 outlets in Addis Abeba
and its regional towns, employs 650 workers and has the capacity to
manufacture 350,000 to 360,000 pairs of shoes every year.

Although Anbessa Factory had previously exported its products, such
as 5,000 bowling shoes to Canada, it has never received an order to
produce the volume of shoes as contracted with Adelchi. According to
the agreement, Anbessa Shoe Factory is to provide Adelchi with its
first supply of shoe upper in December 15, 2006.

Alemu Hailu, head of the Factory’s marketing department, told Fortune
that Anbessa has already prepared and packed 4,000 shoe uppers
readied for export. He said that as soon as the letter of credit
(LC), processed by the banks, is finalized the items would be shipped.

Adelechi first came to the country to purchase its first Ethiopian
shoe products from Peacock Shoe Factory, owned by Dire Industries Plc
in 2005. This Italian company sells over 11 million pairs of shoes
a year, in many countries in the world. It is famous for offering
moccasins for sale. It has over 1,600 workers and also has factories
in Albania as well as Bangladesh.

Upon his visit to Ethiopia in 2005, Adelchi Sergio, ordered a supply
of 27,000 dollars worth of moccasins from Peacock Shoe Factory,
which the latter is still in the process of supplying. Anbessa has
also signed a contract with Peacock to supply it with 100,000 parts
of the shoe upper.

Moreover the Italian company has also requested sandals from Ramsse
Shoe Factory Plc, located in the Addis Abeba Industrial Estate.

Zelalem Habte, general manager of Ramsse refused to comment on the
details of the terms of the agreement.

"We refrain from making any comment on the matter until we have
shipped our first export items," he said.

Ramsse, which is said to have imported new machineries from Italy
a month ago, has another factory in Addis Ketema District known as
Kuas Meda, where it supplies shoes for local consumption.

Sources from the Ministry of Trade and Industry told Fortune that after
Adelchi receives and evaluates the quality of the first batch of shoes
supplied by Anbessa, it intends to shift its shoe upper supply business
from other supply companies in Albania and award it to the state-owned
factory. According to the sources, the reason for this shift is due
to the ample supply of leather in Ethiopia and reduction in cost.

The Ministry of Trade and Industry, in 2006-2007, aim for 300 million
dollars in shoe exports.

5.html

From: Emil Lazarian | Ararat NewsPress

TURKEY TO ANNOUNCE RESULTS OF HELICOPTER TENDER ON TUESDAY
By Cihan News Agency

Zaman Online, Turkey
Dec 12 2006

Turkey is to announce the result of its helicopter tender, which has
been carefully followed by international defense industry giants.

The tender, worth at least $2 billion dollars, will top the Turkish
Defense Industry executive committee meeting headed by the prime
minister in Ankara on Tuesday.

The committee is to decide on either the Italian Mangusta2 Westland
proposal or the South African Denel ‘Rooivalk’ proposal for the attack
helicopter deal.

The South African helicopters are using French engines which may be
an obstacle because of discord over the Armenian ‘genocide’ between
the two countries.

The contract is for the purchase of 50 helicopters and then
co-production of 20 helicopters with an option for 21 more.

Turkish authorities had cancelled a previous tender in 2004 when a
deal for US Bell Textron’s King Cobra collapsed over price, technology
transfer and licensing problems.

In a June Defense Industry Executive Committee meeting, Turkey
short-listed the Italian and South African companies for the $2
billion dollar attack helicopter deal.

Eurocopter of France and Russian Kamov were eliminated in the tender.