HASTERT’S FALL PAVES WAY FOR PELOSI SPEAKERSHIP
Public Radio. Armenia
Nov 9 2006
The Democratic takeover of the House of Representatives yesterday
ended Speaker Hastert’s Congressional reign, opening the door to the
Speakership of Rep. Nancy Pelosi (D- CA), a twenty year supporter of
Armenian American issues, including Armenian Genocide recognition,
reported the Armenian National Committee of America (ANCA).
Rep. Pelosi issued a statement last week pledging support for
Armenian Genocide legislation during the 110th Congress. With
the Senate majority too close to call, the victory of New Jersey
Senator Bob Menendez (D NJ), returns him to the Senate, where he has
distinguished himself by blocking the appointment of Armenian Genocide
denier Richard Hoagland as US Ambassador to Armenia.
“We are tremendously proud of the vital and energetic role that
Armenian Americans played this election season – a watershed transition
of Congressional power that holds great meaning for our community’s
legislative agenda,” said ANCA Executive Director Aram Hamparian. “On
the House side, we certainly welcome the fall from power of Dennis
Hastert – who, as Speaker, prevented a bipartisan majority of his
colleagues from voting for U.S. recognition of the Armenian Genocide –
and his expected replacement by Nancy Pelosi, who has a strong record
in support of Armenian American issues. On the Senate side, even as
we await the final outcome, we are very gratified by the victory in
New Jersey of Senator Bob Menendez – our top electoral priority this
election season. Inspired by his principled stand against the Hoagland
nomination, Armenian Americans throughout the Garden State – led by
the ANC of New Jersey – truly came through for the Menendez campaign,
delivering volunteers, campaign contributions, and, most importantly,
tens of thousands of votes in support of his electoral victory,”
added Hamparian.
ANCA endorsed candidates won overwhelmingly in the House, with 184 of
198 endorsed candidates securing decisive wins and three races still
too close to call. Of the 159 members of the Congressional Armenian
Caucus, 140 members won re-election, including Congressional Armenian
Caucus Co-Chairs Frank Pallone (D-NJ) and Joe Knollenberg (R-MI).
Amongst those who lost their re-election bid was Armenian American
Congressman John Sweeney (R-NY), who, with the support of ANC-NY,
battled in one of the tightest races in the country. Armenian American
Congresswoman Anna Eshoo (D-CA) won her reelection bid with 71%
of the vote.
In the Senate, 13 of 15 ANCA endorsed candidates won their election
bids. Winners included Armenian Genocide Resolution lead sponsor
John Ensign (R- NV), Dianne Feinstein (D-CA) and House members
Ben Cardin and Sherrod Brown who won Senate seats in Maryland and
Ohio, respectively. Pennsylvania Senator, Rick Santorum (R-PA),
lead cosponsor of the Caucasus Railroad Bypass bill, lost his
Senate reelection bid to Democrat Ed Casey. Perennial opponent of
Armenian American concerns, West Virginia Senator Robert Byrd won
his re-election bid as well.

ARMENIAN GOVERNMENT RENOUNCES ITS RIGHT TO BUY 90% OF ARMENTEL’S SHARES
ArmInfo News Agency, Armenia
Nov 9 2006
The Armenian Government has renounced its right to buy 90% of
the shares of the ArmenTel telecom company (169,539,381 shares)
for 341,888,105 EUR sold by the present owner of the company, OTE
(Greece), to Russian Vympelcom.
The press service of the Armenian Government, the Government had this
right according to ArmenTel’s regulations, the law on JSCs and the
contract with OTE. The government has instructed Finance and Economy
Minister Vardan Khachatryan and Chief of Tax Service Felix Tsolakyan
to amicably settle all tax disputes with ArmenTel.

ARMENIA AND IRAN AGREED ON CONSTRUCTION OF ARAKS RIVER HPS
ArmInfo News Agency, Armenia
Nov 9 2006
Armenian Government signed an agreement with Iran on construction and
exploitation of Hydro Power Station (HPS) on Araks River, statement
of Armenian Government says.
Armen Movsesyan, Minister of Power, said that the construction of the
Meghri HPS is 140 mln USD worth due to the technical-economic issues.
As for its features, there is no competitor to the Meghri HPS in
South Caucasian region. Its planned production capacity will make up
140 MW at the annual power production of 850 mln kilowatt-hour.
Armenian and Iranian experts have worked out a special financing
scheme for the project. According to it, HPS construction works
will be maintained by Iran, whereas Armenia is responsible for the
power supplies.

ARMENIAN FOREIGN MINISTER RECEIVED CO-CHAIRMAN OF ARMENIAN-AMERICAN WORKING GROUP ON ECONOMIC COOPERATION
ArmInfo News Agency, Armenia
Nov 9 2006
The press-service of the Armenian Foreign Ministry told the ArmInfo
news agency that Armenian Foreign Minister Vardan Oskanyan received
Thomas Adams, the Co-chairman of the Armenian-American working group
on economic cooperation, the Acting Coordinator of US assistance to
Europe and Eurasia, Thursday.
The sides discussed the development of bilateral cooperation and
the prospects of implementation of the worked out programs. Special
attention was paid to the joint programs of Armenia and the Millennium
Challenge Corporation, particularly, the issue of implementation of
the obligations assumed by Armenia. Thomas Adams assured that the US
Government will contribute to the deepening of democratic processes in
Armenia, and stressed the importance of free and fair elections. The
sides also touched upon regional issues, particularly, the Karabakh
peace process, hoping for the efficiency of the forthcoming meeting
of the Armenian and Azeri Foreign Ministers on November 14.

GEORGIA REJECTS GAZPROM’S COMPROMISE GAS PRICE OFFER, READY FOR ROW
MosNews, Russia
Nov 9 2006
On Wednesday, Nov. 8, Georgia rejected a compromise deal with the
Russian state-controlled gas monopoly Gazprom. The deal offered
by Gazprom would see Georgia hand over control of its domestic gas
distribution network to Russia. Now Georgia is left with the prospect
of either paying twice the current price or having supplies cut off.
Georgia is currently paying $110 per 1,000 cubic meters of Russian
gas and Gazprom already announced that in 2007 it wants Georgia
to pay $230, which is the average price that the Russian monopoly
charges its European customers. Gazprom has already warned that if
no contract is signed, supplies will be cut on Jan. 1, 2007.
Gazprom offered to soften the increase if Tbilisi handed over control
of its domestic gas distribution network to Russia. The same scheme was
used with Russia-friendly Armenia that will continue to pay $110 price
until the end of 2008 in exchange for its energy distribution assets.
Unlike his Armenian colleague, the Georgian Prime Minister Zurab
Nogaideli rejected that offer. “I want to repeat once again — we are
not going to bow to blackmail,” he was quoting by Reuters as telling
a cabinet meeting.
Energy Minister Nika Gilauri, asked by reporters if Georgia might
cede energy infrastructure to Gazprom, replied: “Never.”
Russia supplies almost all of Georgia’s gas needs. The Georgian
government is seeking alternative suppliers in Azerbaijan and Iran,
but they are not ready to replace Russian gas in full.
Tbilisi says Moscow is using gas as a political tool to punish it
for its pro-Western policies. Gazprom says the increase is purely
commercial.
If the price stays at $230, Georgia — where the average monthly
income is just over $100 a month — would pay the same for its gas
as rich countries such as Germany and Italy.
Alarmed at the prospect of a gas cutoff, a leading Georgian opposition
figure urged Nogaideli to seek a compromise.
“The prime minister should explain if his statement means Georgia
will be left without gas this winter because for now there is no real
alternative to Russian gas,” Interfax news agency quoted lawmaker
David Berdzenishvili as saying.

NO ONE WANTS THIS TO HAPPEN
Lragir, Armenia
Nov 9 2006
The President of the Republic of Armenia – Mr. Robert Kocharian
The President of the Mountainous Republic of Karabakh – Mr. Arkady
Ghoukassian
We would like to draw your attention to a recent series of reports
that have appeared in both the Armenian and diasporan press focusing
on the worsening socio-economic situation in the Kashatagh region. As
a result, Armenians are leaving this vitally strategic area in
increasing numbers.
When the Karabagh war ended, Armenians the world over heaved a
collective sigh of relief and jubilation. After years of struggle and
much sacrifice, Artsakh was once again delivered into the hands of
its rightful owners. So too had Kashatagh (Lachin), the lands once
artificially separating Armenia from Artsakh, been liberated.
But Kashatagh needed an influx of Armenians to make the land flourish
once again. Therefore, in 1994, Armenia initiated a much-heralded
policy of repopulating Kashatagh and its environs. Primarily,
Armenian refugees from Azerbaijan and other indigent families
from Armenia were encouraged to move to Kashatagh with promises of
generous financial and material assistance. Many did heed the call and
moved to Kashatagh. Given the fact that Armenia itself was in dire
financial straits at the time, this initiative was both commendable
and noble. According to various sources, Kashatagh’s repopulation
reached a peak of about 20,000 in the late 1990s. Today, however,
the remaining population has dipped below 10,000. Some say it has
reached a low of 7,000. In the last few years, authorities of the
NKR have taken over the governance of Kashatagh from Armenia, and
yet the situation has continued to deteriorate.
Armenians who initially were encouraged to move there now feel a sense
of neglect and isolation. Surprisingly, some news reports cite the
fact that many local officials agree that the situation in Kashatagh
needs immediate attention. We fear that if conditions do not improve,
we soon might be facing an area of land devoid of Armenians. No one
wants this to happen.
We the undersigned find it troubling that the responsible authorities
in Armenia and Karabakh seem to be indifferent to the unfolding tragedy
in Kashatagh. Therefore, we ask that your respective governments
analyze the situation and take the necessary measures to ameliorate
the conditions faced by the residents of Kashatagh and thus reverse
the present exodus from the region.
We also ask that your governments clarify their positions regarding
the resettlement policy in Kashatagh. Unfortunately, many Armenians
there believe they have been betrayed and are to be used as pawns in
future political negotiations. The Armenians of Kashatagh deserve to
know where they stand.
As Armenians concerned with the plight of our compatriots in
Kashatagh we can no longer remain silent when faced with the inaction,
mismanagement, and dare we say, corruption, that is the hallmark of
many local officials in Kashatagh. “Business as usual” should not be
tolerated and we urge you to take appropriate and quick action.
Respectfully,
Coalition in Support of Kashatagh.
From: Baghdasarian

ON NOVEMBER 7, A BUSINESSMAN MIKHAIL BAGDASAROV CONFIRMED HIS INTENTION TO SELL 30% OF SHARES OF VTB-ARMENIA,
A SUBSIDIARY BANK OF VNESHTORGBANK
Agency WPS
Banking and Stock Exchange, Finance, Economics (Russia)
November 9, 2006 Thursday
Reference: RIA RBC, “VBT-Armenia Is About to Lose a Shareholder”,
RBC daily, November 8, 2006, p.9.
The businessman disagrees with the policy being followed by the bank’s
management. For example, he is discontented that the bank intends to
wind up 40 branches by reason of their unprofitability.
Mikhail Bagdasarov is sure that these branches may start to yield a
profit under a good management. Russian Vneshtorgbank controls 70%
of VTB-Armenia’s shares.

WHAT’S SAAKASHVILI GOT TO DO WITH IT?
by Pavel Zarifullin
Translated by Elena Leonova
Agency WPS
Source: Russkii Kurier, November 6, 2006, p. 7
What the Papers Say Part A (Russia)
November 9, 2006 Thursday
The Caucasus becomes a field for Russian-US confrontation
Russia, the United States, and the geopolitical chessboard of Eurasia;
For some people, the break-up of the Soviet Union was like a physical
pain. These days, Russia – as a living, youthful organism – wants
to breathe deep, arrange itself comfortably, regain what belongs to
it. Well, why not?
BODY:
South Ossetia will hold an independence referendum on November 12. A
similar referendum took place 15 years ago. Back then, the South
Ossetians voted in favor of independence. They’ll vote the same way
now; no doubt of that.
For some people, the break-up of the Soviet Union was like a physical
pain. These days, Russia – as a living, youthful organism – wants to
breathe deep, arrange itself comfortably, regain what belongs to it.
Well, why not?
Look at Turkey, for example. It came into existence as a geopolitical
formation in the course of Kemal Ataturk’s reforms. It feels naturally
comfortable within certain borders. Besides its state borders, there
is also Northern Cyprus, a de facto part of Turkey.
Until recently, the Turks themselves and everyone else accepted this
“living” Turkey. These days, some are seeking to “squeeze” Turkey.
Through various political machinations, they want to take Northern
Cyprus away from Turkey and draw it into the European Union; they want
to take away south-eastern Turkey – Turkish Kurdistan – in favor of
the pro-American Iraqi Kurdistan, de facto established already.
Armenia hasn’t expressed any territorial claims as yet, but current
developments are quite enough for the Turks. The Turkish leadership
– the military in power – is sounding the alarm. It has started
seeking strategic partners in the east, working on relations with
Russia and China. There is talk of Turkey joining the Shanghai
Cooperation Organization, or even withdrawing from NATO. In recent
years, Turkey has stopped providing any real support to Turkic
nationalist organizations in Russia and China – organizations
originally established by Turkish and American intelligence agencies
for specific purposes.
Why is Turkey doing all this? Because the West is trying to take
away what the Turks see as inalienably theirs. They know that if
they surrender Northern Cyprus, the entire complex Turkish system
established by Kemal Ataturk will crumble.
And Turkey’s neighbors would ask for more: Syria wanting Arab Antakya,
Bulgaria and Greece wanting Edirne, the Armenians wanting Kars,
Trabzon, and Van. Soon there would be nothing left of Turkey.
Now, based on Turkey’s experience, let’s look at the current situation
in Georgia, South Ossetia, and the Russian Federation.
Russia is recovering from the knockout blow dealt by perestroika,
and as it wakes up, it’s naturally asking where it is (the search for
a national ideology) and exactly what it is in geographical terms (a
map showing what is or is not part of Russia). De facto, South Ossetia
and Abkhazia have been part of Russia for 15 years, whatever anyone
might say. De facto, Georgia is not part of Russia. That’s understood.
But the point is that besides Russia, there is also a power which
is even stronger (thus far): the United States, which is building an
empire of its own on the Eurasian continent – an empire known as the
Greater Middle East. And the United States has its own notions and its
own map. That map shows a United Kurdistan, for example, and Georgia
– including South Ossetia and Abkhazia. Two maps are superimposed;
two giant states are gradually returning to Cold War policies; two
empires are butting heads in the Caucasus for “Lebensraum,” each of
them pulling Caspian Sea oil towards itself via its pipelines.
That is the grim truth, in contrast to the fairy tales told to the
media by official Foreign Ministry spokespersons or courtier political
consultants from the Kremlin and the Cabinet. Eurasia has long since
become a giant chessboard: Moscow moves a piece called Yanukovych,
America responds by moving Saakashvili, the Kremlin surrenders Adjaria,
America plays Limonov.
According to the logic of this game of civilizations, the people
of South Ossetia will vote for independence in their referendum –
just as the people of Montenegro did, according to the logic of a
similar game. America took Montenegro, although it had no right to
it; but Russia will take what belongs to it by right – South Ossetia,
Abkhazia, Trans-Dniester (Pridnestrovie), and later on, perhaps, most
of Ukraine. And there’s no need to fear that this will complicate
relations with the West. The Cold War is already underway. And
Saakashvili is completely beside the point here. On the geopolitical
chessboard, he’s nothing but a pawn; he may be protected, or he may
be sacrificed.

ILKHAM ALIYEV CHANGES ROUTES
Dmitry Butrin
RusData Dialine – Russian Press Digest
November 9, 2006 Thursday
Azeri President to hold talks with Vladimir Putin
Today Russian President Vladimir Putin will suggest to Azerbaijani
President Ilkham Aliyev, who is visiting Moscow after a trip to
Brussels to meet with European Commission President Jose Manuel
Barroso, that he decide whether Azerbaijan intends to continue with its
“strategic partnership” with Russia. If Azerbaijan responds positively,
Moscow will request Baku’s cooperation in Russia’s struggle with
Georgia and will offer Russian arms and investment by UES Russia and
RusAl in return.
President Aliyev’s visit to Europe unnerved the Kremlin chiefly
because of Azerbaijan’s projected defense spending for 2007: the
country will spend $1 billion on the military next year, up from $600
million currently. Russia fears that this could be a preliminary step
towards membership in NATO. If Azerbaijan joins neighboring Georgia
in a NATO bid, the ex-Soviet Caucasus could end up hosting NATO and
American military bases as the West seeks to control Iran.
In an effort to forestall the possibility of NATO bases near its
southern border, Russia is attempting to lure Azerbaijan back to its
own camp with promises of increased sales of cut-rate Russian-made
weapons. Russia has been curtailing its arms trade with Azerbaijan,
fearing to fan the flames of Azerbaijan’s long-standing feud with
neighboring Armenia.
Russia is also focusing on Azerbaijan in an attempt to create a
unified front within the CIS against the Kremlin’s latest enemy,
Georgia. Moscow is seeking to impose an energy blockade on Georgia
in the winter of 2006-2007, while Azerbaijan last winter stepped
in with emergency supplies of electrical energy and gas when Russia
interrupted deliveries to Georgia. In 2007, Gazprom is threatening
to raise the price of gas for Georgia from $110 to $230 per thousand
cubic meters. According to unofficial sources, the same proposal
has been made for Azerbaijan as well, angering President Aliyev. The
country currently pays $95-100 per thousand cubic meters for the 1.5
billion cubic meters of gas that it imports from Russia annually.
Other proposals from the Kremlin are more palatable: according to
Kommersant’s sources, Vladimir Putin will offer President Aliyev
investment by the company RusAl to the tune of a $1 billion aluminum
plant in Azerbaijan. Mr. Putin will also mention interest on the
part of the Russian company UES Energy in investing in Azerbaijan’s
energy sector.

CYPRUS IS HURDLE TO TURKISH EU HOPES
by Rory Watson in Brussels and Suna Erdem in Istanbul
The Times (London)
November 9, 2006, Thursday
Turkey was told yesterday to open its ports and airports to Cypriot
traffic within the next month or face the suspension of talks to join
the European Union.
The ultimatum from the European Commission -the first delivered to a
potential EU country -solicited a promise to speed up domestic reforms,
but the Turkish Prime Minister insisted that the Cyprus issue could
be solved only by Greece and Greek Cypriots. “Don’t expect us to open
our ports and airports until the isolation of the Turkish Cypriot
state is lifted,” Recep Tayyip Erdogan said.
Suspension of accession talks would damage relations between Turkey
and the EU.
Opposition to Turkish membership in Germany and France would make
restarting the process difficult if stalled.
It could also fuel hostility towards the EU within Turkey, where the
polls show a strong majority of Turks believing that their country
is being treated unfairly by Brussels.
The Commission report on the progress Ankara is making to prepare for
membership said that Turkey is discriminating against an EU member
state, Cyprus, by refusing to recognise it and failing to remove
obstacles to the free movement of goods and transport.
Jose Manuel Barroso, the Commission President, called on Turkey to
focus on breaking the deadlock “in the coming weeks”. If it failed
to do so, he said the Commission would present recommendations to EU
leaders before they meet in Brussels for their summit in the middle
of next month.
Finland, the current EU president, will use the next four weeks to
try to broker a deal. But after the collapse of attempts to organise
a meeting with Turkish negotiators last weekend, the prospects of a
breakthrough are slim.
Neither Mr Barroso, nor Olli Rehn, the Enlargement Commissioner,
who presented the report, would spell out what the recommendations
might be. But with pressure growing for a tougher response to Ankara,
especially from France, Cyprus and Greece, temporary suspension of
the negotiations is a likely option.
However, Turkish commentators predicted that EU leaders might decide
to put off any decision into next year. Such a move would allow the
Turkish Government a clear run for re-election against a rising tide
of nationalism. Only once re-elected would the Government be likely to
make concessions on Cyprus. Election victory might herald another round
of reforms from Mr Erdogan, but in the meantime he is shying away from
the pro-EU stance that characterised the early days of his Government.
The veteran commentator Hasan Cemal said: “All sides have an interest
in the talks continuing, even Cyprus, who would lose their leverage
to demand concessions if Turkey were no longer in talks with the EU.”
The Commission noted political and economic reforms in Turkey but
said that their pace had slowed. It singled out freedom of expression
and treatment of the Kurds as areas where improvements are still
required. With Romania and Bulgaria set to join the EU on January 1,
the Commission’s policy is that no further countries should be allowed
to enter before the EU has overhauled its decision-making structures
to cater for more than 27 members.
Such a settlement is highly unlikely before 2009. As a result, Croatia,
next in the membership queue, will have to wait at least three years.
OBSTACLES TO MEMBERSHIP
1999
Turkey becomes official EU candidate
October 2005
Austria and Croatia withdraw objections. Among 35 negotiating issues
are reforms of military and judiciary and improvement of situation
in Kurdish areas
June 2006
Talks on first of 35 negotiation “chapters”
September 2006
Turkey told to open ports to Greek Cypriot traffic. It refuses unless
EU ends restrictions on northern Cyprus
October 2006
French make it a crime to deny Turkish responsibility for Armenian
genocide in First World War.