LOMAIA IS SATISFIED WITH AKHALKALAKI SCHOOL UPGRADES
The Messenger, Georgia
Aug. 17, 2006
Akhali Taoba reports that Minister of Education and Science Kakha
Lomaia positively assessed the current rehabilitation works in
Akhalkalaki schools, part of a national programme.
The paper writes that during the meeting with teachers and entrants,
Lomaia confirmed that students from Akhalkalaki and Ninotsminda
[districts predominantly populated by ethnic Armenians] have achieved
much better results in the national exams than last year. While
visiting Akhalkalaki, Lomaia also visited the Javakheti branch of
the Tbilisi State University, acquainting local government with the
prospects for further development of this branch.
The minister also visited the Akhalkalaki resource centre, where
immediately after the completion of the rehabilitation works a new
resource centre will start functioning. Lomaia also met with Father
Nikolozi of Akhalkalaki and promised to support cultural and spiritual
development of the local youth.

LIVNI: WAR NOT OVER, WE ARE FIGHTING DIPLOMACY BATTLE
By Shlomo Shamir and Yoav Stern, Haaretz Staff and Agencies
Ha’aretz, Israel
Aug. 17, 2006
NEW YORK – Foreign Minister Tzipi Livni, in New York yesterday to meet
with United Nations officials, called on the international community
to help uphold the UN-brokered cease-fire agreement and to prevent
the replenishment of Hezbollah’s arms.
In opening remarks to the Conference of Presidents of Major American
Jewish Organizations, Livni said the Security Council resolution that
brought about the cease-fire is a first step toward peace, but that
“the war is not over yet.”
Livni met with UN Secretary General Kofi Annan yesterday to discuss
the importance for Israel of a speedy deployment of the 15,000-strong
UN force, her spokesman Mark Regev said. The foreign minister accused
Hezbollah of being a pawn for Iran’s larger goals for the region.
“Hezbollah, which is a terrorist organization, represents the Iranian
interest in the region, the Iranian hatred, the Iranian ideology
against the West and its values,” she said.
Calling Hezbollah weaker after the Israeli offensive, Livni underscored
the importance of enforcing the arms embargo on Hezbollah, as is
called for in the resolution.
The foreign minister also called for the closure of the Syrian and
Lebanese border, in order to hamper any aid from reaching Hezbollah.
Livni reiterated her call for the unconditional release of two Israeli
soldiers kidnapped by Hezbollah on July 12, also stipulated in the
council resolution.
“The fact that these soldiers are being kept by Hezbollah is in
violation of the Security Council resolution,” Livni said. “Before
I came here, I met the families … and I promised we are not going
to rest until these soldiers come back to their families.”
Meanwhile, the upgrading of the present peace-keeping force in Lebanon
from 2,000 to 15,000 soldiers, as called for in the UN resolution,
has been delayed. Sources at UN headquarters told Haaretz Monday that
no official agreement had yet been reached with any of the members the
UN had approached on the matter. UN spokesman Stephane Dujarric told
Haaretz that the UN is in talks with 40 countries that have expressed
willingness to take part in the force, but conceded that at present
“none of the countries have given official agreement.”
Dujarric also said that UN Secretary General Kofi Annan had spoken by
phone with European Union representatives for foreign and security
affairs, and with senior French government officials, in order to
deploy the force as quickly as possible. The French are expected to
send thousands of soldiers.
Other countries named as possible members of the force include Italy,
Germany, the Scandinavian countries, Indonesia, Malaysia and Turkey.
However with regard to the latter, Turkey’s Armenian political party
Tashnak released a statement announcing its opposition to Turkey
joining the peace-keeping force in Lebanon. The party said Turkey had
committed genocide against the Armenian people in the last century,
and that 4 percent of Lebanon’s citizens are Armenians, who the party
said have no real political power. Tashnak said its opposition also
stemmed from the fact that Turkey had military agreements with Israel.
Sources in New York said building a peace-keeping force normally takes
a few months. However this time, the sources said, the Security Council
resolution required quick deployment – meaning that some procedures
had to be detoured.

HELL ON RAILS: TBILISI-BATUMI TRAIN LIKE ‘TRAVELLING IN A SAUNA’
By Anna Arzanova
The Messenger, Georgia
Aug. 17, 2006
Contrary To Previous Announcements
Georgian holidaymakers are forced to travel to Batumi on trains
like this
As holiday season reaches its peak, travelling by train from Tbilisi
to Batumi is turning into a nightmare.
In an effort to attract more Armenian tourists, Georgian Railways
moved its recently renovated rolling stock from the Tbilisi-Batumi
service to the Yerevan-Makhinjauri (Adjara) route. Eight old,
un-refurbished carriages have made an unwelcome reappearance at
Tbilisi railway station.
The current heat wave makes travelling in these Soviet-era dinosaurs
almost unbearable, and despite the fact that there are not air
conditioners or renovated toilets, the price remains the same:
GEL 20-35.
“It was awful. I could hardly bare such conditions. We knew that
there should have been conditioners and the toilets should also
have been good, but unfortunately there was nothing. We paid GEL 20
per ticket and travelled in a sauna! How can they deceive people in
such a manner?” Maia Gagoshidze, who had just arrived from Batumi,
told The Messenger.
At the beginning of the season, Georgian Railways declared that
carriages newly refurbished in a Dneipropetrovsk factory with TV sets,
DVDs, air conditioners and high-level customer service, would ply
the Tbilisi-Batumi tourist route all summer.
Lika Menteshashvili, who will soon leave for the resort town of
Kobuleti, Adjara, complained that she bought her ticket, but does
not know in what conditions she will travel.
“I want to know why they added eight old carriages and did not warn
anybody. People should have known about this beforehand by and then
to chosen how to travel. Yes, they post up statements in front of the
ticket office but not everybody pays attention, and they also refuse
to refund tickets.” Menteshashvili stated.
Georgian Railways say that the notices were put up to protect
passengers’ rights. The notices say that Georgian Railways has been
forced to add un-modernised carriages to the overnight Tbilisi-Batumi
train, and advise passengers to take this into account before
purchasing their tickets.
“In order to avoid misunderstandings, we put up notices at the ticket
office. We warned people that these are old trains and gave them
the possibility to choose whether or not to buy a ticket,” head of
Georgian Railways Ltd., Irakli Ezugbaia, stated.
According to cashiers at the railways station however, passengers
have not been inquiring about the conciliations of the carriages,
as the most important thing for holidaymakers is to get a ticket,
and get to the beach.

OSCE CHAIR’S SPECIAL ENVOY VISITS ARMENIA AND NK IN CONNECTION WITH FIRE
Author: A.Ismayilova
TREND Information, Azerbaijan
Aug. 17, 2006
Special Envoy of OSCE Chairman-in-Office Andzey Kasprzyk, left for a
working visit to Armenia on 17 August. The Baku Office of the Special
Envoy told Trend that Kasprzyk would also visit the Nagorno-Karabakh
region.
Kasprzyk recently told Radio Liberty that it is taking into
consideration the fact that the fire intersected the border of Occupied
Areas and the situation in the Azerbaijan-Armenian border has been
made difficult.
Kasprzyk also did not rule out possible plans to monitor these areas
with the participation of international experts.

CANADA MISSES AZERBAIJAN BUSINESS BOAT
By Scott Taylor – Business Edge
Business Edge, Canada
Aug. 17, 2006
But opportunities still abound for entrepreneurs, adventurers
Since its independence was granted from the former Soviet Union in
1991, Azerbaijan has set its sights on increasing connections with
the West and divesting itself of the country’s former communist
infrastructure.
The development of lucrative new oil resources in the Caspian Sea
in conjunction with British Petroleum has helped fund that process,
but a tentative war with Armenia, domestic political instability and
rampant corruption have proven to be major speed bumps on the road
to cultural transition.
However, Azerbaijan is now enjoying an oil-fuelled economic boom
and is looking to do more business with the West, but is failing to
attract interest from Canada.
“It is regrettable that we have achieved the lowest of co-operation
from Canada among all of the world’s developed nations,” says Novruz
Mammadov, special adviser to President Ilham Aliyev. “It is frustrating
for us when we see so little interest (on the part of the Canadian
government) in something which holds so much potential.”
Photo by Scott Taylor, for Business Edge Baku is the scene of a massive
construction boom Canada is alone among the G-8 nations to have no
diplomatic representation in Baku, and the nearest consular-visa
functions are conducted either in Ankara, Turkey, or Moscow.
“In the 15 years since independence, Canada has sent just two official
delegations to visit our country,” says Mammadov. “One from your
foreign ministry in 2005 and some members of Parliament back in 2003.”
The Azeris, on the other hand, maintain a full embassy in Ottawa and
are keen to encourage Canadian trade. After years of Soviet communism
and post-collapse instability, the Azerbaijan infrastructure is in
need of just about every commodity conceivable. Add to this the vast
oil revenue and continuing development in the region and the Azeri
government is in a cash-rich position to acquire its needs.
“You have to remember that we are starting from absolute zero –
we need just about everything,” says Mammadov. “There are still
tremendous opportunities for international companies in the energy
field, telecommunications, diamonds, agricultures, electronics –
the list is endless. And we have the revenue to pay for it.”
Rodney Moore, a spokesman for Foreign Affairs and International
Trade Canada, says: “Since Azerbaijan gained its independence from
the Soviet Union in 1991, Canada did not recognize the necessity
of opening an embassy there, given the level of relations between
the two countries and the amount of available resources within the
ministry of Foreign Affairs.”
Kirk Purdy, president of Sword Energy Ltd., a private oil and gas
company located in Calgary, says: “Canada’s lack of participation
in the development of Azerbaijan’s energy industry will be costly,
both in opportunity and gross national product. We are a world
leader in energy-related extraction and processing technologies
and it’s unfortunate that we don’t have the support of our Canadian
government to share these skills with Azerbaijan’s industrial and
political community.”
Others, meanwhile, are taking advantage of business opportunities
in Azerbaijan.
“It’s getting too bloody soft around here for my liking,” says Terry,
a 46-year-old ex-British paratrooper who now runs a bar in Baku, and
who did not want to give his last name. “It used to be the case that
the sight of a foreigner in Azerbaijan was so rare that the locals
would stop and gawk at you when you walked down the street.”
Missing a front tooth and sporting a shaved head, the barrel-chested
combat veteran with a gap-toothed smile and tattooed muscular arms
would likely still create a stir in most civil societies. However,
over the past decade the renewed oil boom has brought an entire cast of
such characters into this previously isolated former Soviet Republic.
In 1994 the newly independent Azerbaijani government signed what was
termed the “deal of the century” with a number of Western companies to
develop and export the vast untapped offshore oil and gas reserves in
the Caspian Sea. British Petroleum is the key player in this region,
having already had established pipelines through Kazakhstan.
Photo by Scott Taylor, for Business Edge The wearing of the traditional
hijab The experience gained in its North Sea oil projects has given BP
a tremendous advantage in the international race to develop the Caspian
Sea reserves. As a result, Azerbaijan has kept well ahead of the
other four nations that share a border on this newly discovered wealth.
“The Russians, Iranians, Kazakhs and Turkmen have no idea how much oil
we are already pumping through (BP’s) oil rigs,” explained Terry, who
spent 10 years in the region as a BP employee before opening his pub,
The Garage, which caters strictly to foreign oil workers. “Our gap
on the competition in terms of technology would need to be measured
in light years.”
The outer-space analogy is an apt one, as a patron in The Garage
describes the ex-pat bars in Baku as being similar to the intergalactic
nightclubs depicted in the Star Wars movies, “only instead of strange
individuals from foreign planets, they are bizarre representations
from across the globe.”
The original bars and clubs were deliberately rough around the edges
to appeal to the mostly ex-military types who blazed the trail through
this heretofore non-westernized territory.
However, as the boom in the Azerbaijan economy – 25-per-cent growth
last year in GDP alone – spreads into sectors outside the oil industry,
the hospitality business has begun to cater to a much greater variety
of foreign tastes.
“First it was McDonalds, then a whole bunch of fancy restaurants,
and now we’ve even got expensive wine bars,” bemoaned The Garage owner.
“Baku will never be the same.”
This recent wave of change will not be the first time that outside
forces have left an indelible imprint on Azeri society and culture.
As descendants of central Asian Turkic tribes, the Azeris are
essentially Muslim Turkmen.
However, in 1920, the Russian Bolsheviks occupied the oil-rich
territory of the present Republic of Azerbaijan. The subsequent seven
decades of communism and Russian influence drastically diminished
the religious Islamic influence in this region.
Throughout my weeklong visit, I spotted just one Azeri woman wearing a
traditional hijab, while the vast majority dressed in Western-style,
MTV-inspired fashions. Although minarets and mosques still dot the
cityscape, unlike non-secular Islamic nations, the call to prayers
is not broadcast via loudspeakers five times a day.
In terms of architecture, the capital Baku is a bipolar hybrid of
Turkish ornate and Soviet bland, while on the extreme ends of the
spectrum there remains the presence of the ancient walled city and
an ever increasing number of modern glass and steel skyscrapers.
Culturally, the long period of Soviet control has left a continuing
legacy of authoritarianism ingrained in the public mindset.
Journalists are still escorted about the city by official handlers
wearing dark suits and driving old black Volga automobiles – once
considered a “Mercedes equivalent” in the Soviet Union.
On the plus side, many of the hosted luncheons were capped off by
the Russian tradition of exchanging elaborate toasts with over-proof
vodka. Certainly not something one would expect from a member nation
of the Organization of the Islamic Conference.
On the other hand, the Azeris align themselves closely with their
‘brothers’ in Turkey. Not only do they share a similar (albeit
distinct) dialect with the Turks, they also share an affinity to
recognize a ‘father figure’ for their newly founded nation.
Whereas the Turks have enshrined Mustafa Kemal Ataturk as the founder
of modern Turkey, in Azerbaijan it is Heydar Aliyev (the first
president at the time of independence) who carries this torch. Since
his death in 2003 Aliyev has been commemorated extensively throughout
the country.
>>From the time one arrives at Heydar Aliyev International Airport
his image can be seen on billboards and statues all across the country.
In government offices, one is more likely to see a portrait of Heydar
Aliyev than of his son Ilham who is the current president.
The impact of the sudden economic boom in Azerbaijan is clearly
illustrated by the fact that two separate currencies are in
circulation. The worn-out dirty old Manats are valued at 4,800 to
a single U.S. dollar, while the crisp new (Yeni) Manat trade in at
about $1.20 US each.
One of the initial drawbacks to foreign investment and trade
partnerships is that in the immediate post-Soviet climate, corruption
was rife. Every level of government – right down to the policeman on
the street – wanted a piece of the estimated $150-billion US windfall
that was projected in the “deal of the century.”
A display ad in a Baku English-language daily newspaper calls upon
the foreign corporations to form an investor forum to collectively
combat the corruption. “It’s not easy doing business in Azerbaijan,”
reads the headline. “Corruption? Unfair practices? Vague regulations?
Unjust courts? Monopolies? Unseen traps for investors? Together let’s
try to change things!” Another sign that the flow of new money is
having an impact is that the police are no longer as aggressive in
their encounters with foreign nationals.
“One night the local police stopped a BP employee on his way home
from the bar. When he refused to pay them the usual ‘We’ll let you
go this time’ bribe, they locked him in jail,” said Hermann Lehmann,
a six-year veteran on the Azerbaijan oil scene.
“The next day, when he informed his bosses at BP, they immediately
demanded justice and heads rolled at the police station. Believe me,
money talks in Baku.”
(Scott Taylor is the publisher/editor-in-chief of Esprit de Corps
magazine and can be reached at [email protected]) .ca/article.cfm/newsID/13240.cfm
From: Emil Lazarian | Ararat NewsPress

ARMENIA ORDERS CDMA450 NETWORK
Cellular-News, UK
Aug. 17, 2006
China’s ZTE says that it is to provide Armenia with its first CDMA450
network. Under the terms of the agreement, ZTE will provide ArmenTel
with a new network based on ZTE?s end-to-end CDMA450 WLL (Wireless
Local Loop) solution. The agreement will lead to the improvement
and expansion of the country?s nationwide fixed telecoms network
infrastructure and makes ZTE the first Chinese telecoms equipment
vendor to have experience of working in the Republic of Armenia.
“It is a priority for us to enhance fixed-line services across the
country. ZTE?s equipment will allow us to do just that by providing
reliable communications to areas which have traditionally not been
well served by the existing infrastructure. Our use of CDMA450 marks
a new chapter for our company that can invest in a cost-efficient way
and for our customers who will benefit directly from this technology
of high quality service” said Mr Smarnakis, CTO of ArmenTel.
The 450 MHz spectrum is becoming an increasingly attractive networking
option for European carriers as it represents an economic way to
deploy a large-scale wireless network telecoms infrastructure.
Crucially, the low spectrum results in larger cell sizes, therefore
requiring relatively few base stations. This means that operators
benefit from reduced infrastructure investment than would normally
be needed for deployments of a similar size.
As the largest operator in Armenia, ArmenTel owns 100% of the country?s
fixed phone customer base and over 60% of its mobile subscribers. In
1998, 90% of ArmenTel?s shares were acquired by OTE, the largest
fixed-line operator in Greece. ZTE recently worked with OTE when it
was chosen to supply vital broadband Internet access systems during
the Olympic Games in Athens.

RUSSIA RE-DEPLOYS ITS MILITARY HARDWARE FROM GEORGIA TO ARMENIA
ITAR-TASS, Russia
Aug. 17, 2006
TBILISI, August 17 (Itar-Tass) – A convoy of 13 tracked vehicles and
trucks will leave the Russian military base in Akhalkalaki, Georgia,
on Thursday and will head for a military base in Gyumri in Armenia.
This is the 12th and the last shipment of Russian military hardware
from Akhalkalaki base to be re-deployed in Armenia, the Akhalkalaki
base headquarters told Itar-Tass. Most Russian military hardware and
weapons from the Akhalkalaki base are being sent to Russia, the rest
will be delivered by truck convoys to Gyumri.
Russia plans to complete its withdrawal from Akhalkalaki before the
end of 2007 and close the base a year later in 2008.

ARMENIAN STUDIES GROUP MARKS ITS 50TH
Cambridge Chronicle, MA
Aug. 17, 2006
In celebration of its 50th anniversary, the National Association
for Armenian Studies and Research presents a banquet and symposium
Saturday, Sept. 30, at the Royal Sonesta Hotel. The event will be
the culmination of a year of observances of NAASR’s half century of
pioneering programs in Armenian studies, research and publication.
The event begins with a symposium on “Armenian-Turkish Dialogue and
the Direction of Armenian Studies, ” from 9 a.m.-1 p.m.
The banquet begins with a 5:30 p.m. reception. Following dinner
will be a keynote address, a retrospective video, music and dancing,
and surprise announcements.
NAASR banquet and symposium, Saturday, Sept. 30, Royal Sonesta
Hotel. 617-489-4610, fax 617-484-1759, [email protected] or write to NAASR,
395 Concord Ave., Belmont, 02478.
From: Emil Lazarian | Ararat NewsPress

USD 70,000 PROJECTS IMPLEMENTED IN ARMENIA UNDER US DEPARTMENT OF STATE’S SMALL RENOVATION PROGRAMS
Arka News Agency, Armenia
Aug. 17, 2006
YEREVAN, August 16. /ARKA/. Seven projects worth $70,000 have been
implemented in Armenia in 2006 under the US Department of State’s
project “Small renovation programs”, Jerry Oberndorfer, Director of
Humanitarian Programs for Europe and Eurasia, US Department of State,
told ARKA.
He reported that the programs are mostly implemented by two
organizations – International Relief and Development and Corporate
Corp.
He pointed out that the programs are aimed at improving the living
conditions of socially vulnerable sections of Armenia’s population.
This year, an outpatient’s clinic, a scout school, an old people’s
home and boarding-schools have been renovated.
Oberndorfer also added that the project in implemented in all the
CIS countries.
From: Emil Lazarian | Ararat NewsPress

TODAY’S RISE IN USD EXCHANGE RATE ON ARMEX LOGICAL END OF ITS MONTHLY FALL
Arka News Agency, Armenia
Aug. 17, 2006
YEREVAN, August 16. /ARKA/. Today’s rise in the USD exchange rate
on the Armenian Stock Exchange (ARMEX) is a logical end of its fall
during the last month, bank dealers told ARKA.
According to them, this is a normal process accounted for by bank
clients’ resumed demand for the USD.
On August 16, 2006, the average weighted USD exchange rate on
ARMEX rose by 7.83 points after a month-long fall and reached AMD
406.91/$1. During the last eight days, the exchange rate was below
AMD 400/$1.
According to experts, the Central Bank of Armenia played its role
in the exchange rate stabilization by purchasing US dollars on ARMEX
and thus maintaining the exchange rate at AMD 3999/$1.
According to the dealers, during 4-5 days the CBA purchased about
$10mln, which prevented further fall in the USD exchange rate. Still
earlier, experts forecast that the USD exchange rate would fall down
to AMD 350/$1 without the CBA’s intervention.
Experts point out that a rise in the USD market exchange rate may be
expected judging from today’s exchange rate on ARMEX.
A 9.79% USD depreciation against the AMD has been recorded in Armenia
this year.
The current exchange rate is near the one recorded 11 years ago. Ion
2005, the USD exchange rate ranged from AMD 402/$1 to AMD 406/$1,
and the average annual exchange rate in 1995 was AMD 405.8/$1.
During 13-year history of the Armenian dram, the highest exchange
rate was recorded in March 2003 – AMD 591.76/$1 (the CBA-set nominal
exchange rate). In fact, 45.76% revaluation of the Armenian national
currency has been recorded since that date. In turn, 31.39% (AMD
185.83) USD devaluation against the AMD has been recorded ($1 –
AMD 398.07).