CLEAN POLL ‘KEY TO CLOSER TIES WITH U.S.’
By Emil Danielyan

Radio Liberty, Czech Rep.
Dec 5 2006

The further development of U.S.-Armenian relations hinges on the
freedom and fairness of Armenia’s upcoming parliamentary elections,
a senior U.S. administration official was reported to tell Foreign
Minister Vartan Oskanian on Tuesday.

Daniel Fried, the U.S. assistant secretary of state for European and
Eurasian affairs, spoke with Oskanian in Brussels on the sidelines
of an annual ministerial conference of the Organization for Security
and Cooperation in Europe.

The Armenian Foreign Ministry said the meeting discussed "issues
relating to the development of democracy and the forthcoming elections
in Armenia." "The parties agreed that the proper conduct of the
parliamentary elections would contribute to the strengthening of
cooperation between Armenia and the USA and the implementation of
bilateral programs," read a ministry statement.

Julie Finley, the U.S. ambassador to the OSCE headquarters in Vienna,
also attended the meeting along with Fried’s deputy Matthew Bryza.

Finley visited Yerevan in October to discuss with senior Armenian
officials preparations for the elections slated for next spring. She
expressed concern about the Armenian authorities’ failure so far to
formally ask the OSCE to monitor the entire electoral process.

President Robert Kocharian assured European diplomats afterwards
that his administration will extend such an invitation in time for
the polls.

OSCE observers have strongly criticized just about every national
election held in Armenia over the past decade. Oskanian, who has had
to personally deal with the international fallout from those polls,
has warned that a repeat of serious vote irregularities would have
extremely negative consequences for Armenia.

U.S. officials have made it clear, in particular, that a clean vote is
a necessary condition for the release of $236.5 million in additional
economic assistance to Armenia promised by the Bush administration
under its Millennium Challenge Account program.

IBERIAN RESOURCES POURS FIRST GOLD AT LICHKVAZ, ARMENIA

Australian Stock Exchange
December 6, 2006 Wednesday

Iberian Resources Ltd says first gold has been poured from its 80
percent owned Lichkvaz gold project in southern Armenia.

The company said this was a further step in its stage 1 project.

Other progress in stage 1 to date includes recruiting a management
team, commencing commissioning of the full gravity circuit, installing
additional milling capacity, installing a floatation circuit,
commencing and increasing production at the Terterasar underground
mine, commencing open cut mining at the Lichvaz-Tey deposit and
commencing an additional mine at Lichvaz-Tey.

The company expects the full gravity circuit to be commissioned in
three months.

Progress to date in stage 2 of the project includes commencing a
study into mechanised mining, commencing CIL plant design, early
test work indicating that 97 percent of gold reports to cyanide,
finalising site selection, commencing land acquisition, commencing
a hydrological study and setting the future production target at
between 100,000 and 150,000 ounces per anum.

Iberian Resources said it was in a strong financial position, had
more than 1.7 million ounces of gold resources and was positioned to
grow rapidly.

STOCK DASHBOARD: DECEMBER 5, 2006

IBERIAN RESOURCES

Closing Price: 74.5c

Price change from previous trading day: +2.05%

Relative Strength (6 months percentile rank): 65.6

Market capitalisation: $53.27 million

Turnover volume: 76,317

Volume Index (1 is average): 0.4

Turnover value: $56,423

Turnover period: 387 days

Value of $1,000 invested 1 year ago: $1,656

Source:

PREVENTIVE PUNISHMENT TOWARDS DEFENDANT ON CASE OF SHAHEN HOVASAPIAN’S MURDER CHANGED

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. Arrest chosen as a preventive
punishment towards Gurgen Virabian, defendant on the case of murder
of Shahen Hovasapian, Head of the Investigation Department of State
Tax Service, was changed to signature on not leaving the country. As
Noyan Tapan correspondent was informed from RA Prosecutor General’s
Office, this decision was made in consideration of the defendant’s
health condition and the circumstance that his being in freedom cannot
hamper objective examination of the criminal case any longer.

At the same time, it was mentioned that the volume of the accusation
brought to G.Virabian has remained unchanged.

ARMENIA’S GROSS AGRICULTURAL OUTPUT GROWS BY 0.1% IN JANUARY-OCTOBER 2006 ON SAME PERIOD OF LAST YEAR

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. In January-October 2006, the gross
agricultural output of Armenia made 465.5 bln drams (about 1,23
bln USD), exceeding by 0.1% the index of the same period of last
year. According to the RA National Statistical Service, the gross
agricultural output grew by 6.1% in October on September 2006. In the
first ten months of 2006, the livestock farming production amounted to
156,495.8 mln drams, exceeding by 8.6% the respective index of last
year, while the plant growing production made 309,024.2 mln drams,
declining by 3.7%. Production of main foodstuffs of livestock farming,
except for eggs, increased. Production of meat and poultry exceeded
by 16.3% or 12.3 thousand tons the index of the same months of 2005,
milk production – by 5.3% or 29.7 thousand tons. In the indicated
period, fish production made 2,008.4 mln drams, which exceeds by 58.3%
the respective index of last year.

"APPROACHING THE LAST PHASE OF THE TALKS"
by Tamara Ovnatanjan

Source: Novoye Vremya (Yerevan), November 30, 2006, EV
Agency WPS
DEFENSE and SECURITY (Russia)
December 6, 2006 Wednesday

RESULTS OF THE TALKS BETWEEN PRESIDENTS OF ARMENIA AND AZERBAIJAN: A
VIEW FROM YEREVAN; The Azerbaijani-Armenian talks: no progress is made.

The meeting between presidents Robert Kocharjan (Armenia) and Ilham
Aliyev (Azerbaijan) took place within the framework of the CIS summit
in Minsk. The meeting did not differ from the two previous earlier
this year in terms of information on the talks. It is only possible
to make guesses over what transpired at the meeting on two comments –
by Armenian Foreign Minister Vardan Oskanyan and Aliyev himself. What
their comments revealed inevitably leads to the conclusion that could
be drawn even before the meeting, the conclusion that the third round
of the talks failed to produce any breakthroughs.

Oskanyan appraised the outcome of the negotiations as "positive".

"Agenda of the talks was centered around the issues that have defied
a solution so far," the Armenian diplomat said referring to some
document the president had allegedly discussed. Asked to comment on
the future of the talks, Oskanyan made a reference to the forthcoming
elections (in 2007 in Armenia and 2008 in both countries). Oskanyan
said he didn’t think that the elections would disrupt the talks. "I’m
convinced that the negotiations will continue," he said.

Oskanyan’s vague optimism was supplemented by Aliyev’s unexpected
openness with the Azerbaijani media.

"Some serious talks took place. We discussed moot points. A whole
number of issues were settled. There are, however, some principal
matters on which our opinions differ, and we discussed them at the
latest meeting," Aliyev said.

The president added that negotiations within the framework of the
Prague Process had been under way for more than three years. A lot
of meetings took place. "We are approaching the final phase of the
talks," Aliyev said.

"We want the problem solved with territorial integrity of Azerbaijan
honored," Aliyev summed up Azerbaijanis’ stand. "UN resolutions must
be observed. Azerbaijan lands have to be freed from occupiers for the
return of more than 1 million Azerbaijanis. We are pleased with the
latest activities of international organizations. They also insist
on observation of the territorial integrity principle."

If anything is to be concluded from the comment, it is that
Azerbaijan’s stand has not changed. And since it is so, why the
Azerbaijani president believes that the "final phase" is approaching
is anybody’s guess. Final phases stipulate a compromise, at the
very least.

Contours of the probable compromise may be glimpsed in the latest
statement of American negotiations, Matthew Bryza, to the effect that
the negotiations are currently centered around two problems: return
of the territories forming the security belt and Nagorno-Karabakh’s
status. It is logical to assume that even if Armenia agrees to make
a concession in the matter of land, it will only do so in return for
the status concessions from Azerbaijan. What the Azerbaijani president
said, however, does not imply readiness for compromises.

"Territorial integrity should be restored, and Nagorno-Karabakh will
enjoy broad powers of an autonomy," Illarionov firmly said.

Kocharjan explained Armenia’s position during a visit to Germany a
week ago. "Try as we might, we cannot recall a single precedent where
a nation would abandon sovereignty after 15 years of enjoying it.

Nobody intends to do so in Karabakh’s case. We are talking
irreversibility of changes in people’s conscience," he said addressing
the Bertelsmann Foundation.

In any case, the negotiations in Minsk were entirely a waste of time
and effort. This time, the Azerbaijani side did without military
rhetoric always deployed both before and after previous meetings
within the framework of the Prague Process.

The mediator countries’ and particularly America’s stand on the matter
might have played its part. All these countries are convinced that the
conflict in question cannot be solved by military means. On the other
hand, other factors including economic ones could also persuade the
Azerbaijani leadership to change the concept. The Baku-based newspaper
Zerkalo even published a not exactly pro-Azerbaijani speech of Wayne
Mery at the John Hopkins University.

This expert and prominent diplomat put it bluntly: Azerbaijan couldn’t
hope to win a war launched to settle the conflict.

In any case, Official Baku decided to abandon military rhetoric for
the time being and turn to Russia. Its reasoning is apparently the
following, "If President Vladimir Putin puts Kocharjan under pressure,
then Aliyev may play ball and meet the demands from Moscow not to
help Georgia with gas and electric power." In fact, this hypothesis is
promoted by the daily Kommersant that makes references to its sources
in Azerbaijan. Kommersant even maintains that Kocharjan and Ilham
Aliyev may meet soon again in early December, in Moscow. Armenian
sources do not confirm it.

ESTONIAN, TURKISH MINISTERS VIEW EU DECISION TO SUSPEND TALKS

Anatolia News Agency, Turkey
Dec 6 2006

Tallinn, 6 December: "Decision of the EU Commission to partially
suspend talks with Turkey under eight chapter headings is excessive.

Only three of them are related to Customs Union," said Estonian
Foreign Minister Urmas Paet on Wednesday [6 December].

The Turkish state minister and chief negotiator for EU talks,
Ali Babacan, and Estonian Foreign Minister Paet held a joint news
conference following their meeting in Tallinn.

Replying to a question, Paet said Estonia advocated Turkey’s EU
membership bid and indicated that "commission’s decision to link
provisional closing of other negotiating chapters to Cyprus is not
right. This will have a negative impact on relations with Turkey."

Indicating that EU’s enlargement should include Turkey, Paet
underscored that "this will add a cultural richness to us".

On the other hand, Babacan emphasized that Estonia supported Turkey’s
membership to the EU and indicated that Turkey and NATO member Estonia
were allies.

Responding to a question about Cyprus, Babacan said Cyprus question
should not hinder Turkish-EU relations. He said although Turkish
Cypriot party accepted the UN plan, it was again the Turkish Cypriot
party that is punished.

Babacan underscored that the EU did not fulfil its commitment to end
the isolation of the Turkish Cypriot party, adding that unilateral step
would not be taken on resolution of the Cyprus question. He said Turkey
could accept opening of ports in parallel to removal of the blockade.

[Passage omitted]

Asked about the so-called Armenian genocide, Babacan said it was the
duty of the historians to investigate the matter, indicating that
Turkey was ready for any research that would be carried out.

"Turkey has asked Armenian administration to establish a
joint commission to investigate the so-called Armenian genocide
allegations. Researchers that will be assigned by the UN and the EU
could also take place in this research," he noted.

KARABAKH CONFLICT PROBLEM MAINLY DISCUSSED AT VARTAN OSKANIAN’S MEETINGS IN BRUSSELS

Noyan Tapan
Dec 06 2006

BRUSSELS, DECEMBER 6, NOYAN TAPAN. RA Minister of Foreign Affairs
Vartan Oskanian, participating in the OSCE Foreign Ministers’ Council
sitting in Brussels had a number of bilateral meetings on December 4
and 5. At the meeting with Daniel Fried, the U.S. Assistant Secretary
of State, the interlocutors discussed a wide circle of issues on
bilateral cooperation. Issues relating to development of democracy
in Armenia, the coming elections were also discussed.

The sides agreed that proper organization and holding of
the parliamentary elections will support deepening of the
Armenia-U.S. cooperation and implementation of bilateral programs. At
the meeting in which Matthew Bryza, the Deputy Assistant of State
took part, it was separately spoken about the recent developments of
the negotiations on the Nagorno Karabakh conflict settlement. The
interlocutors also touched upon the regional issues, possibilities
of settlement of the Armenian-Turkish relations. Jean Asselborn,
the Foreign Minister of Luxemburg was the RA Foreign Minister’s next
interlocutor. At the latter’s request, Minister Oskanian presented
results of the Armenian and Azerbaijani Presidents’ meeting taken
lace in Minsk, emphasizing the side’s readiness to continue the
negotiations at the Foreign Ministers’ level. The interlocutors
emphasized activization of the bilateral cooperation within the
framework of the Armenia-EU Actions Plan. It was mentioned that
the latter gives wide possibility for promoting mutually beneficial
cooperation in different spheres.

The European theme was the pivotal one during the conversation with
Urmas Paet, the Foreign Minister of Estonia. The Ministers agreed
to touch upon practical steps of the bilateral cooperation during
the Armenian Foreign Minister’s official visit to be paid to Tallinn
which will be scheduled for the first quarter of 2007. Possibilities
of bilateral visits were spoken about during the meeting with Noel
Treacy, the Ireland State Minister for European Issues.

Relations with Armenia with Ireland, the leader of democracy on the
European continent are still at the embryonic stage and agreements
to widen the legal-contractual field and assists business contacts
reached during the conversation are addressed to its change. By the
Ireland Foreign Minister’s invitation, Armenia Foreign Minister’s
visit is scheduled for the first quarter of 2007.

Bilateral relations and initiatives to be moved forward during the
Spain chairmanship were touched upon at the meeting with Bernardo Leon,
the Spain State Secretary for Foreign Affairs, undertaking the OSCE
chairmanship in 2007.

The State Secretary expressed his country’s readiness to assist as
much as possible peaceful settlement of conflicts existing in the
region, particularly, in the direction of making additional efforts
in the Nagorno Karabakh issue.

For this purpose, the Spanish Foreign Minister’s visit to the region is
scheduled for February of the next year. Minister Oskanian presented
in his turn the recent developments and existing possibilities to fix
progress in the NKR peaceful process. The Spanish side stated about
its intention to open the Embassy in Armenia. The EU chairmanship will
pass from Germany to Portugal in the second half of 2007. Prospects
of development of the cooperation and bilateral relations of Armenia
with the EU within the framework of the EU New Neighbourhood Policy
were discussed at the meeting with Manuel Lobo Antunes, the State
Minister for European Issues of Portugal. Issues relating to the
OSCE reforms and Nagorno Karabakh problem were discussed at the
meeting of Vartan Oskanian and OSCE Secretary General Marc Perrin de
Brichambeau. At the end of the day, the Armenian Foreign Minister
met with the OSCE Minsk Group Co-Chairmen. The state created after
the RA and Azerbaijani Presidents’ last meeting was estimated, coming
events were discussed. The text of the statement on Nagorno Karabakh
adopted on December 5 by the OSCE Foreign Ministers’ Council was also
worked out and given its final appearance at the meeting. As Noyan
Tapan was informed by the RA Foreign Ministry’s Press and Information
Department, Minister Oskanian met on December 5 with Dr.Kinga Goncz,
the Foreign Minister of Hungary. The sides appreciated the bilateral
relations, agreeing to implement concrete programs for their future
development. The Foreign Minister of Hungary emphasized its country’s
readiness to support efforts of Germany undertaking the EU chairmanship
to activize the EU cooperation with the South Caucasian countries. He
expressed intention to visit Armenia in future. At the meeting with
Goran Lennmarker, the OSCE Parliamentary Assembly Speaker, opinions
were exchanged concerning prospects of the Nagorno Karabakh conflict
settlement. Minister Oskanian’s last meeting was with Christian
Strohal, the OSCE Office for Democratic Institutions and Human Rights
(ODIHR). The interlocutors discussed organization issues relating to
the coming elections in Armenia as well Mr.Strohal’s coming visit to
Armenia and possibilities of cooperation with Armenia of the structure
headed by him. In the second half of the day the RA Foreign Minister
left for Antwerp where Minister Oskanian’s speech at the Antwerp
Lessius University is envisaged. The delegation headed by Minister
Oskanian was to leave for Strasbourg late in the evening where meetings
with Terry Davis, the Secretary General of the Council of Europe,
Mateo Sorinas, the Secretary General of the Parliamentary Assembly
of the Council of Europe, and the members of the group (Ago’s group)
observing implementation of Armenia’s obligations of the Council of
Europe Ministers’ Council.

ADDITIONS AND AMENDMENTS ENVISAGED IN 2006-2007 PROGRAM ON STATE PROPERTY PRIVATIZATION

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. The RA National Assembly on December
6 passed in first reading the government’s draft law which envisages
additions and amendments to the RA Law on the 2006-2007 Program on
State Property Privatization. Particularly, the government proposes
adding another 5 companies, including 3 companies and the Hrazdan
Sports Complex under the jurisdiction of the RA Defence Ministry, to
the list of companies with a state share to be privatized. Besides,
it is proposed that about 10 companies, most of which are cultural
facilities, should be taken off the program’s list. The opposition
factions – Justice, Orinats Yerkir and National Unity – and some
independent deputies were against adoption of the draft law.

ARMENIA REFUSES TO WITHDRAW FROM OCCUPIED LANDS
by Nurani

Source: Ekho (Baku) December 1, 2006, EV
Agency WPS
DEFENSE and SECURITY (Russia)
December 6, 2006 Wednesday

"Armenian refugees from Azerbaijan" are playing their part in the
PR campaign

A VIEW FROM BAKU: ARMENIA IS NOT GOING TO WITHDRAW ITS TROOPS FROM
AZERBAIJANI LANDS; Official Baku is convinced it is no use waiting
for Armenia to let go of the occupied lands.

The Prague Process intensifying, official Yerevan keeps making
statements implying that there is no use waiting for any concessions
from Armenia. The accord on the return to Azerbaijan of territories
controlled by the Karabakh army is unlikely, Defense Minister Serj
Sarkisjan told journalists in Yerevan. (Along with everything else,
Sarkisjan is regarded as President Robert Kocharjan’s potential
successor.) Sarkisjan said, however, that he had no information on
existence of accords on the return of the lands. Commenting on the
possibility that Armenia could also agree to return Kjalbajar to
Azerbaijan in the negotiations, Sarkisjan said that he had never
spoken of specific territories and that he did not want to discuss
the matter now. In other words, Armenia will never withdraw from the
occupied territories if it can help it. And since nobody seems to be
prepared to put Armenia under pressure over it, expediency of future
talks is at least questionable.

There is one other nuance to be mentioned as well. The so-called "civil
network" specializing in "promotion of Armenian refugees’ interests"
drew attention to itself in Yerevan practically simultaneously
with Sarkisjan’s statement. Its activists released a statement to
remind the negotiating parties that stability and lasting peace were
impossible without putting on the agenda the issue of "deportation of
Armenian refugees from the Soviet Azerbaijan and Nakhichevan". That
"Nakhichevan" is not mentioned as a part of "Soviet Azerbaijan"
is symbolic. Armenia aspires for these lands too.

Even more thought-provoking is the phrase that "it should be
clear to everyone that Armenian refugees would never return to
any Azerbaijan-controlled territory where their very lives will be
forfeit. Anti-Armenian bias in Azerbaijan is worsening. We maintain
that Armenian refugees have the right to move to the former Agdam and
Fizuli, Kashatag (Lachin – editorial office) and Karvachar (Kjalbajar –
editorial office), to all territories that are known as the security
zone. It is the Armenian authorities’ duty to help them."

Activists promise to forward to the "parliament" of the self-proclaimed
"Republic of Nagorno-Karabakh" a new draft law on citizenship. The
document will grant Nagorno-Karabakh citizenship to all Azerbaijani
Armenians.

Official Yerevan hasn’t supported the "civil initiative" so far. On
the other hand, initiatives like that never appear without an
encouraging nod from the authorities, particularly initiatives put
forth by self-proclaimed "political technologists". Firstly, all this
screaming on "promotion of Armenian refugees’ rights" is but a PR
trick, an excuse to refuse to withdraw the troops from the Azerbaijani
territories. Secondly, papers of "citizens of Nagorno-Karabakh" that
will be issued to all Armenians are but an element of preparations
for a referendum the political establishment of both countries is
actively discussing these days. The lack of official support is not
the reason for taking the "initiative" lightly.

From: Emil Lazarian | Ararat NewsPress

NON-COMBAT LOSSES; … ARE SUBSTANTIAL
R. Orujev

Source: Ekho (Baku), December 1, 2006, EV
Agency WPS
DEFENSE and SECURITY (Russia)
December 6, 2006 Wednesday

SITUATION IN THE AREAS WHERE AZERBAIJANI AND ARMENIAN TROOPS FACE
EACH OTHER REMAINS TRICKY; Update on the situation in the areas where
Azerbaijani and Armenian regular armies face each other.

Another episode of the cease-fire regime violation is reported.

Azerbaijani positions came under automatic rifle fire from the
territory of the settlement of Bash Gervend in the Agdam district
occupied by the Armenians. It began at approximately 2315 hours on
November 29. No information on casualties is available.

It is common knowledge that violations of this kind occur regularly,
at least once a week.

Ramiz Melikov of the Press Service of the Defense Ministry told Ekho
that the Armenians kept violating the cease-fire regime. "I do not
see any improvement from past years," Melikov said.

According to Melikov, the Defense Ministry is not counting loss of
life in provocations engineered by the Armenians. "We do not reveal
this information," he said. "As for the losses, they are quite frequent
on both sides."

"Some tranquility in areas in question always follows the coming of
cold," independent military expert Uzeir Jafarov told this newspaper.

"By late December, however, we will probably see mass violations of
the cease-fire regime. It happens every year. Generally speaking,
the situation there is not any better than it was these last 3-5 years.

Skirmishes continue all along the front. They are sometimes mass,
sometimes episodic… They usually happen when replacement of the
troops is carried out. Young soldiers right from boot camp want to
see how their weapons work. With commanders’ permission of course. It
is usually true of sharpshooters. I’m under the impression that the
Armenian side will try to escalate tension now that the latest round
of the Karabakh talks is over. The cease-fire regime will be frequently
violated now."

"Our Organization of Retired Officers monitor the state of affairs
with Azerbaijani losses when the cease-fire regime is in effect,"
Jafarov said. "We draw our conclusions from what is published in
the media and what our comrades-in-arms tell us. The Armed Forces
of Azerbaijan lost 50 servicemen this year. Discounting the wounded
and those who triggered landmines. Most men were lost to Armenian
sharpshooters. The 2005 figures were more or less similar. We’ve been
compiling this information since 1994. The Defense Ministry classified
these figures, but I’m telling you right here and now that we lost
several thousands men. They are the so-called non-combat losses."

From: Emil Lazarian | Ararat NewsPress