PUNISHMENT FOR A NUMBER OF ECONOMIC CRIMES REVISED IN RA CRIMINAL CODE
Noyan Tapan
Jun 16 2006
YEREVAN, JUNE 16, NOYAN TAPAN. At the June 15 special session,
the RA National Assembly passed in second reading the draft law on
amendments and additions to the RA Criminal Code. The draft revises
punshment for a number of economic crimes. Particularly, punishment
is envisaged for deliberate tax or state duty evasion or evasion of
other compulsory payments in large and especially large amounts.
Unlike the draft passed in first reading on the same day, the final
version increased the size of large and especially large amounts. In
the preliminary version, a sum not exceeding 1,000-10,000 minimal
salaries (1 mln – 10 mln drams) at the time of a crime was considered
a large amount, while the final vesrion set it at 2,000 – 15,000
minimal salaries (2-15 mln dram). The preliminary version considered
a sum exceeding 10,000 minimal salaries as especially large amount,
the final version stipulates a sum exceeding 15,000 minimal salaries
(15 mln drams).

ARMENIAN A-320 DISINTEGRATED AFTER HITTING BLACK SEA – PROBE
RIA Novosti, Russia
June 19 2006
MOSCOW, June 19 (RIA Novosti) – An Armenian airliner that crashed
into the Black Sea off Russia’s coast early last month disintegrated
after hitting the water, the Transportation Ministry said Monday.
The Airbus came down in stormy weather on May 3 with the loss of all
113 passengers and crew.
“The flight recorders from the Armavia Airlines A-320 have shown that
the plane did not disintegrate in the air,” a ministry’s statement
said. “The engines were operating until the plane hit the water.”
“The plane had enough fuel to complete the flight safely and the
autopilot was off in the last minute,” the ministry said.
The emergency commission has started decoding and analyzing flight
data recorders, which include modeling the flight on an A-320 trainer.
The commission will conclude on the reasons behind the crash and make
flight safety recommendations, the ministry said.

INTERNATIONAL WORKING GROUP HELD MEETINGS IN STEPANAKERT
DeFacto Agency, Armenia
June 19 2006
The International Working Group (IWG) on the Search for the Missing
People, Hostages and POWs in the Karabakh conflict zone arrived in
Nagorno Karabakh on a two-day working visit.
June 19 the IWG members met with the NKR Foreign Minister Georgy
Petrosyan, the leadership of the NKR State Committee on Missing People
and Hostages, heads of the Stepanakert Office of the International
Committee of the Red Cross, as well as with former hostages. In the
course of the meeting the issues referring to activation of search
for the missing and burial places were discussed. The requests of the
state commissions on missing persons and hostages of Nagorno Karabakh,
Armenia and Azerbaijan were considered as well.
From: Emil Lazarian | Ararat NewsPress

LAWMAKERS FOCUS ON FOREIGN TRADE
By Judy Lin
Sacramento Bee
Monterey County Herald, CA
June 19 2006
SACRAMENTO – California’s foreign trade offices — taxpayer-funded
enterprises disbanded three years ago amid scandal and budget woes
— are staging a comeback despite lingering questions about their
usefulness.
Gov. Arnold Schwarzenegger and some legislators are once again
trumpeting the value of trade promotion for the sixth-largest economy
in the world. In recent months, the governor has established an
undersecretary for international trade, while lawmakers have proposed
resurrecting outposts in Seoul, South Korea, and Johannesburg,
South Africa.
In coming weeks, the Legislature is expected to take up bills that
call for developing a comprehensive trade strategy and moving the
state back into the business of operating trade offices.
Such a move has raised eyebrows among trade experts who believe former
state offices were mismanaged. Some have questioned whether the state
should even have trade offices.
“Historically, they have not been very successful. In fact,
they have been somewhat disastrous,” said trade consultant Jock
O’Connell. “There’s this feeling in the state Capitol that California
needs to be represented by the state. The real California is superbly
well represented in the form of 57,000 exporting companies.”
California’s 12 trade offices were shut down in 2003 — along with the
rest of the Technology, Trade and Commerce Agency — after critical
news reports and damaging audits appeared.
At the time the state had more than 90 workers spanning the globe,
from Hong Kong to London. Their charge was simple: Help California
businesses sell their products abroad while luring foreign investment
to the state. Last year, the state exported $116.8 billion worth
of goods.
But the legislative analyst’s office and the state auditor’s office
questioned the effectiveness of such offices.
The offices were accused of taking credit regardless of how much
involvement they had in facilitating a deal.
“For instance, an office may only have provided a list of foreign
companies potentially interested in a product developed by a California
business. However, the agency counted the total value of a subsequent
export agreement,” according to one legislative analyst report.
The Orange County Register quantified the overstated benefits at
$44.2 million for one year.
In the end, only one trade office survived. The California Armenia
Trade Office was subsequently transferred to the authority of the
Business, Housing and Transportation Agency, where it remains today.
Sen. Jack Scott, D-Pasadena, salvaged the trade office by requiring
that it thrive on private donations. Scott’s district is home to the
largest Armenian community in America.
Scott considers the Armenia office a pilot project that could, perhaps,
become a model for future trade offices. Unlike its predecessors,
the office is funded through $75,000 in private donations, must
file evaluation reports, and will automatically close in 2008 unless
reauthorized by the Legislature.
“We’re learning from mistakes of the past,” Scott said.
But experts say accepting private donations is bad public policy.
Jeffrey Gersick, former managing director of the state’s trade offices
in London, Frankfurt, Johannesburg and Jerusalem, said the state’s
priorities can be muddled by those who “pay to play.”
Rather than putting offices where there’s growth potential, Gersick
and others say the practice could hold the state hostage to special
interests looking to leverage the state’s seal for their own cause,
creating a case of “country du jour.”
The director of the Armenian Trade Office, Arthur Khachatryan,
said he reports to the Foundation for Economic Development, a
non-profit Armenian group based in Glendale, Calif., handling the
state contract. However, the trade office keeps the state abreast of
its work through biweekly phone calls and progress reports.
“The ultimate responsibility rests with the state,” Khachatryan
said. “But on day-to-day questions, of course, we work with the
foundation.”
Sen. Kevin Murray, D-Culver City, said he believes private donations
are the way to go. He is carrying two bills to install trade offices
in Seoul and Johannesburg, both of which are modeled after the Armenia
trade office.
Murray and Scott argue that the private-funding model deserves a
chance before being tossed out.
“If you can generate far more business than the cost of the trade
office, I can’t see how you’d lose,” Scott said.
Lawmakers are now trying to consolidate all trade office bills,
and they hope to develop an overall trade strategy for the state.
Assemblyman Juan Arambula, D-Fresno, chair of the jobs committee,
has written a bill that would give Schwarzenegger’s Business
Transportation and Housing Agency $140,000 to develop an overall
state policy on trade. Assembly Bill 2601 is being supported by
the Republican governor after another bill to give the agency legal
control of trade offices failed.
Concerned that there won’t be enough oversight, Sen. Gloria Romero,
D-Los Angeles, has written a bill that would also develop a strategy
for the state. However, Senate Bill 1513 allows the Legislature to
decide where to put trade offices and requires them to be funded with
through private donations.
Both bills require public disclosure of donations but Romero’s requires
them to be posted on the Internet.
Business, Transportation and Housing Secretary Sunne Wright McPeak
said the governor has made trade promotion a priority, citing his
trade missions to Baja California, Japan and China. However, she said
the agency would be reluctant to spend taxpayer dollars.
Instead, McPeak said the agency has begun coordinating with trade
associations and the U.S. Commerce Department as a cost-effective
approach to trade promotion.
Agency officials say that even if the Legislature fails to pass a bill,
the administration intends to develop a trade strategy for the state.
Howard Shatz, a research fellow at the Public Policy Institute of
California, a non-partisan think tank, said lawmakers will have to
be careful in formulating a plan with reliable performance measures.
Trade experts say the state should take advantage of existing resources
like the Commerce Department, look to countries with the most growth
potential, and assign trade offices clear mandates, then measure
their achievements accordingly.
“It needs to be done right because they are going to be scrutinized
given the history of trade offices,” Shatz said. “The last thing you
want is another scandal.”

TENTH TRAINLOAD OF RUSSIAN MILITARY HARDWARE PREPARED TO LEAVE GEORGIA
Interfax, Russia
June 19 2006
MOSCOW. June 19 (Interfax-AVN) – One more trainload of military
hardware from the Russian military bases, being removed from Georgia,
is prepared to leave the railway station Tsalka, a spokesman for
the Russian Military Force in the Transcaucasus told Interfax-AVN by
phone on Monday.
“The train carrying 47 pieces of anti-aircraft hardware from the 62nd
military base in Akhalkalaki is to depart from the station early
on Tuesday,” the spokesman said, adding that “it will be the tenth
trainload of Russian military hardware to leave Georgia in Russian
military pullout.”
Six trainloads of military hardware from Russia’s 62nd military base
stationed in Akhalkalaki and 12th base in Batumi, traveled to Russia
through Azerbaijan. Three more trainloads were dispatched to Armenia
to and assigned to the 102nd Russian military base in Gyumri.
All Russian military bases located in Georgia are to have been removed
from that country during 2008.
For details, see the Interfax Military News Agency wire.

INTERNATIONAL WORKING GROUP VISITS AZERBAIJANI OCCUPIED TERRITORIES TO INVESTIGATE ISSUE ON AZERBAIJANI POWS
Azeri Press Agency, Azerbaijan
June 19 2006
Co-chairs of the International Working Group to search for prisoners of
war, missing and hostages, Pata Zakharashvili and Bernard Klazen have
paid a two-day visit to the Azerbaijan’s territories under Armenian
occupation (APA).
The working group intends to meet the authorities of the International
Committee of the Red Cross Office in Khankendi and former prisoners
of war.
In today’s talks with the authorities of the separatist regime in
Khankendi, the group co-chairs stressed the importance of improving
the finding of the missing persons during the Nagorno Garabagh war
and their graves.
The working group will also make investigations on the basis of
appeals from the Azerbaijani citizens.

FOREIGN MINISTERS OF MUSLIM COUNTRIES MEET IN BAKU
By Cihan News Agency
Zaman, Turkey
June 19 2006
The 33rd Foreign Ministers meeting of the Organization of Islamic
Conference kicked off in the Azeri capital Baku on Monday.
The foreign ministers of 57 member countries, including Turkish Cyprus,
will take up regional problems including Israel-Palestine, Iraq and
Sudan and will discuss the reconstruction of the organization for
the coming ten years.
The Armenian occupation of Azerbaijani lands and the Cyprus problem
are likely to be taken up during the three days of meetings.
Russian Foreign Minister Sergey Lavrov, whose country is attending
the meeting as an observer, is also among the participants.
For further information please visit

AZERBAIJAN TAKES OVER OIC CHAIRMANSHIP FROM YEMEN
Azeri Press Agency, Azerbaijan
June 19 2006
Azerbaijan took over the chairmanship of the Organization of the
Islamic Conference (OIC) from the Republic of Yemen at the 33rd
session of the Islamic Conference of Foreign Ministers in Baku (APA).
The session has brought together 51 of the OIC 57 member states as
well as delegates from 90 states as observers.
Yemen’s Foreign Minister AbuBaker AlQribi in his speech touched
on the caricature event in the Western media assessing this as an
attack on Islam. He said Muslim countries have demonstrated the
will of struggling against the happenings. Mr. AlQribi also said the
problems should be approached carefully, and contradictions should be
solved diplomatically. He said Israel is committing violence against
Palestinians stressing the importance of its joining the international
treaty on non-proliferation of nuclear weapons.
OIC Secretary-General Ekmeleddin Ihsanoglu addressing the
session regretted that Azerbaijan’s lands are still under Armenian
occupation. Mr.Ihsanoglu called on the international organizations
to pay attention to this issue and assist Azerbaijani refugees.
The 33rd session will be over on 21 June.

EU PANS TURKEY IN DRAFT PROGRESS REPORT, SAYS PAPER
Gulf Times, Qatar
June 19 2006
ISTANBUL: The EU criticises the Turkish military’s role in politics,
a lack of reform and minority rights and relations with Cyprus in
the draft of a progress report due later this year, a newspaper
reported yesterday.
The European Union is due to publish a progress report on
Ankara’s entry bid in October or November, a year after the start
of negotiations, which turned frosty on Friday when Prime Minister
Recep Tayyip Erdogan said that he would sooner see talks suspended
than make concessions over Cyprus.
Turkey’s Cumhuriyet newspaper cited EU sources yesterday as saying the
first draft criticised Turkey’s refusal to open its ports to Cyprus,
as the EU demands, before the bloc lifts trade restrictions on Turkish
Cypriots in breakaway northern Cyprus.
The paper said the draft also notes a slowdown in political reform,
the military’s continuing influence over political institutions and
calls for more work for judicial independence and rights for women
and minorities.
It says conditions in the poor, mainly Kurdish southeast, where
security forces are fighting separatist guerrillas, have deteriorated
and criticises relations with traditional enemies and neighbours
Greece and Armenia.
The European Commission’s enlargement spokeswoman, Krisztina Nagy,
said the report was still a long way off.
“I don’t think a consolidated draft report exists at this stage. In
any case it is much too early to speculate on its content,” she said.
The newspaper said the draft would be amended, but the sources did
not expect many fundamental changes.
“This is standard EU criticism of Turkey,” said an official in Brussels
who asked not to be named. “It was present in last year’s report and
it is likely to be in this year’s report.”
EU leaders at a summit in Brussels on Friday replied to Erdogan’s
Cyprus comments by calling on Turkey to let shipping from the tiny
Mediterranean island use Turkish ports this year.
Last week Luxembourg Prime Minister Jean-Claude Juncker was quoted
as saying membership talks should be frozen if Turkey does not open
its ports this year.
EU Enlargement Commissioner Olli Rehn has said Turkey, which is not
expected to join the wealthy bloc until 2015 at the earliest, could
be heading for a “train crash” in its accession process and has urged
Ankara to step up reforms.

AZERBAIJAN HOSTS 33RD SESSION OF OIC FOREIGN MINISTERS TODAY
Azeri Press Agency, Azerbaijan
June 19 2006
The 33rd session of the Organization of the Islamic Conference Foreign
Ministers started in Azerbaijan today. Azerbaijan’s President Ilham
Aliyev made an opening speech at the session (APA).
Mr.Aliyev said Azerbaijan is taking an active part in the ongoing
processes in the world as well as in regional projects.
“The session will also focus on the issues Azerbaijan are concerned
about. We are concerned about the processes ongoing in the world.
Thus, Islam is made the same with terror by Western media and some
political circles. We cannot consent to this. Islam is the religious
of prosperity and peace. Islam cannot possibly be regarded as the same
with terror. Azerbaijan is the victim of terror. Armenians committed at
least 30 terrorist acts in Azerbaijan killing over 2,000 people. Terror
has neither a religion nor a nation,” the Azerbaijani President said.
Aliyev attached great importance to civilizations, interreligious
dialogue. Stating that Azerbaijan is speedily joining the democratic
processes, the head of state noted that any national and religious
discrimination is unacceptable.
“We’ll express our stance and clarify this issue as a result of the
efforts by the Organization of the Islamic Conference,” he said.
Highly appreciating holding of such a distinguished event in Baku,
President Aliyev spoke about the background of Azerbaijan.
“Azerbaijan has gained its independence for 15 years. There exists
civil solidarity, economical and political stability in Azerbaijan.
The Gross Domestic Product increased by 26 percent in the country
last year. This figure reached to 40% in the past five months of this
year. In addition, poverty reducing programs are being implemented
in Azerbaijan. However, there are some problems that Azerbaijan
cannot solve it by its own. It is in great need of support by the
Organization of the Islamic Conference member states. One of these
problems is Armenia’s aggression against Azerbaijan which resulted in
at least one million people becoming refugees and internally displaced
persons. Armenians keep on destroying historical and cultural heritage
in the occupied Azerbaijani territories. This is the act of vandalism
by Armenians.
We support peaceful solution of this problem. However, we cannot
consent to this reality. Azerbaijan’s territorial integrity has
been recognized by the entire world. Despite the UN Resolutions on
the solution of the Nagorno Garabagh problem they lack mechanism
of implementation. Azerbaijan has never accepted the violation of
its territorial integrity. Armenians came to our lands in the 19th
century. Nagorno Garabagh is ancient Azerbaijani territory,” President
Aliyev underlined.