MOSCOW
August 9 2005
RIA Novosti
CIS representatives to discuss radar identification system
10:11|09/ 08/ 2005
The CIS military cooperation coordination officials said they will gather
Tuesday to discuss a single system for radar identification of air-, sea-
and land-based facilities.
“The conference will be convened due to the need to discuss the use of the
single radar identification system to prevent accidental strikes at our
air-, sea- and land-based facilities with our own weapons,” the officials
said.
Radar identification provides air safety for the planes of states party to
the agreement on radar identification, flying over the CIS territory, and
prevents any violation of CIS air space and the accidental hitting of CIS
planes with CIS weapons.
“The problem is also important in view of aviation terrorism today,” the
officials said.
The conference agenda will also feature issues that require a single
approach in terms of interstate agreement implementation. The conference
will bring together officials from ministries, departments, organizations
and defense ministries of the countries party to the agreement, i.e.,
Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan,
Uzbekistan, and Ukraine.
The agreement on radar identification of air-, sea- and land-based
facilities equipped with aircraft identification transponders of the Parol
system was signed in June of 1992. The agreement establishes the system as
the only radar identification system for multi-based facilities.
The conference will last four days.

REPORT: NO BIG GAINS TO ARMENIA IF TURKEY LIFTS BLOCKADE
Haroutiun Khachatrian 8/09/05
August 9, 2005
Eurasianet
A controversial report by an Armenian research and consulting group
claims that reopening the Armenian-Turkish border would have a much
smaller impact on Armenias economy than commonly believed.
The report was presented July 13 by the Armenian-European Political
Legal Advice Center (AEPLAC), a prominent think tank sponsored by the
European Union. It contended that Armenia would see its economy expand
by only $20-23 million annually, or just 0.67 percent of its current
Gross Domestic Product, if Turkey decided to lift its 12-year blockade
of the Armenian border. Over the next five years, Armenias GDP would
see an additional 2.7 percent increase over the countrys level in
2004.
The gain, the report maintained, would be almost exclusively the
result of lower cargo transportation costs associated with the
reopening of the Kars-Gyumri railroad that connects the two
countries. Currently, Armenian goods can only reach trade partners via
Georgia, which charges relatively high cargo tariffs. Transportation
costs account for some 25-30 percent of Armenias trade costs,
according to the report.
The reports findings caught many Armenian academics and journalists by
surprise. A widely cited 2000 World Bank study predicted that Armenia
would see a 30-percent increase in GDP if both Turkey and Azerbaijan
lifted their economic embargos. Since then, the Armenian economy has
experienced impressive growth. [For background see the Eurasia Insight
archive]. Many observers and economists believed that lifting the
blockade would boost those numbers still higher.
Turkey closed its border with Armenia in 1993 in an act of solidarity
with Azerbaijan. At the time, Armenian and Azerbaijani forces were
battling for control of the Nagorno-Karabakh enclave. [For background
see the Eurasia Insight archive]. The blockade cause substantial
economic hardship in Armenia for much of the 1990s. In early 2004,
Turkey reportedly considered re-opening the border, but eventually
decided against it. [For background see the Eurasia Insight archive].
Turkish goods — worth an estimated $40 million per year, according to
the National Statistical Service of Armenia — manage to enter Armenia
via third countries. A general belief exists that if the border were
re-opened, Armenia would be able to export a comparable amount of
goods and services, namely electricity to its western neighbor.
Many economists have challenged the reports findings. They note that
the analysis contained in the report, which was written by a
seven-member team, largely concurs with recent statements made by
various government officials, who have downplayed the need for an open
Turkish-Armenian border. The daily Azg, for instance, commented on
July 7 that the reports argument provided strong support for Foreign
Minister Vartan Oskanians position that Armenia will not make any
political concessions to Turkey in return for the lifting of the
border blockade. “If the economic impact of lifting the blockade is
negligible, then there is no reason to open the border,” said a recent
editorial published by the Russian-language Delovoi Ekspress. “And
this is pure politics.”
Others take issue with the reports statistical analysis. Economist
Eduard Agajanov, who served as minister of statistics under former
President Levon Ter-Petrosian (1991-1998), charged that the report
underestimated the economic impact of reopening the Turkish-Armenian
border in order to provide political support for President Robert
Kocharians administration. “Its purpose is to preserve the current
oligarchic economic system in Armenia, which cannot survive if the
borders are opened and competition with Turkish goods becomes
tougher,” Agajanov said. If Armenia regains access to markets of the
Middle East via Turkey, Agajanov argued, it would stimulate a whole
range of industries that were active during the Soviet era, when the
Middle East and India were major markets.
The AEPLAC authors said they took various factors into account,
including the 2000 World Bank study and the potential re-entry of
Armenian companies into Middle Eastern markets. Ultimately, however,
they decided that Armenian producers do not presently have the
resources to meet demand in Turkey and the Middle East for goods, such
as electricity and cement. At the same time, the report suggested that
reopening the Turkish-Armenian border might stimulate economic growth
in eastern regions of Turkey, where GDP per capita is even lower than
in Armenia.
Although the authors of the AEPLAC report state that it was
commissioned by the Armenian government, Trade and Economic
Development Minister Karen Chshmaritian has denied that the government
had anything to do with the preparation of the document.
At a July 27 press conference, Chshmairtian criticized the AEPLAC
estimates as too conservative. “They have not taken into account the
effect of mutual penetration of capital from the two countries. Turkey
obviously hinders its businessmen from investing in Armenia, and when
this ban is eliminated, growth may be highly accelerated,” he
stated. To prove the point, Chshmaritian told reporters, the
government is conducting its own research into the economic impact of
Turkey lifting its border blockade. A report is due out later this
year, he said.
Editors Note: Haroutiun Khachatrian is a Yerevan-based writer
specializing in economic and political affairs.
Posted August 9, 2005 © Eurasianet

Positions of Washington and Baku on Democratic Development Concide
Completely – Azeri Official
Trend
10/08/2005 00:06
Positions of Washington and Baku on democratic institutions
development in Azerbaijan coincide completely, says spokesman of the
Azerbaijan Foreign Ministry.
Such a statement was made on 9 August by the head of the information
and press department of the Azerbaijan’s Foreign Ministry (FM) Tair
Tagizade at the news conference on the results of the visit to
Washington of the Azerbaijan’s FM head Elmar Mammedyarov, Trend
reports.
“Washington fully supports the policy of the Azerbaijan’s leadership
in the field of the country’s democracy development, in holding open
and fair elections,” the FM spokesman noted.
??gizade reported, during Mamedyarov’s visit to Washington the key
attention was focused on the discussion of the issues of the strategic
partnership between Azerbaijan and Washington. Exchange of opinions
also took place in regard of Azerbaijan’s integration into the
European structures, settlement of the
Armenian-Azerbaijani Nagorno-Karabakh conflict, terrorism fighting,
democratic transformations in the county.
Touching upon the issue of the Nagorno-Karabakh conflict settlement
Tagizade noted, the US leadership, the State Secretary Condoleezza
Rice particularly, spoke for the continuation of peaceful talks on the
conflict settlement.
“The White House attaches an important significance to top level
talks, in particular, to the forthcoming meeting of the Presidents of
Azerbaijan and Armenia in Kazan,” head of the FM department noted.
Tagizade also underlined, during the visit stationing of the US
military bases in Azerbaijan was not discussed too.
In conclusion Tagizade touched upon the preparation of Ilham
Aliyev’s visit to the USA. He noted, the issue was not discussed
during Mamedyarov’s visit to Washington.
“The Embassy of Azerbaijan carries out an active work on preparation
the visit. However, the date is not specified yet,” the FM’ spokesman
noted, indicating the issue will be coordinated with the American
side.

Azeri, Armenian foreign ministers to meet in Moscow

Baku, August 8, AssA-Irada
Azerbaijani and Armenian foreign ministers Elmar Mammadyarov and
Vardan Oskanian are scheduled to meet in Moscow on August 23 for the
next round oftalks on the Upper Garabagh conflict settlement.
Mammadyarov has told journalists that some details will be discussed
and the issues to be agreed upon will be raised at the upcoming
meeting of the two countries’ presidents in Kazan.
The ministers will report to their heads of state after the Moscow
meeting, he added.*

CBA REDUCES ANNUAL BANKING INTEREST RATE TO 17%
YEREVAN, August 9. /ARKA/. The Chairman of the Central Bank of Armenia
(CBA) decided to reduce the annual banking interest rate by one per
cent to 17% on August 18, 2005, the CBA reports. The last change in
the banking interest rate was on June 28, 2005, when it was raised
from 17% to 18%. A.A. -0–

SPIRITUAL INSPECTOR OF “NORAVANK” MONASTERY COMPLEX DIES IN TRAFFIC
ACCIDENT IN ARMENIA
YEREVAN, August 9. /ARKA/. Spiritual inspector of the “Noravank”
monastery complex, priest Zaven Hakobyan died in a traffic accident in
Armenia, the Press-Chancellery of the Holy See of Echmiadzin
reports. Hakobyan was born in Echmiadzin in 1977. He graduated from
the Gevorgyan theological seminary in 2000; in 2000-2001 he
participated in the management courses at the American University of
Armenia. He had been studying at the Department of Law, Yerevan State
University. He was consecrated into deacon in 2002 and into priest in
2004. Hakobyan was appointed spiritual inspector of “Noravank”
monastery complex on February 1, 2005 by the decision of the
Catholicos of All Armenians Garegin II. “The Catholicos of All
Armenians and the Congregation of the Holy See of Echmiadzin mournes
about the untimely death of the young, faithful and devoted priest”,
the press-release says. A.A. -0–
From: Emil Lazarian | Ararat NewsPress

SECOND ROUND OF PROGRAMMING CONTEST OF YOUNG SPECIALISTS HELD IN
YEREVAN
YEREVAN, August 9. /ARKA/. The second round of the programming contest
of young specialists was held in Yerevan, Director of the “Enterprises
Incubator” Foundation (EIF) Bagrat Yengibaryan told journalists. He
said that the most participants are the students, but the pupils also
participate in this contest. He reported that 200 participants
registered this year, including participants from Georgia and
Russia. The winners of the 1st round went to the Summer School in
Karabakh, where they were trained by the lecturers of the Yerevan
universities and higher educational institutions. 10 teams, each
including three members were formed after the training. Award ceremony
of the winners is expected to be held on August 10, 2005.
Yengibaryan said that popularity of the contest is accounted for by
the continuous growing interest to IT technologies in Armenia.
The contest is organized by the EIF, Pan-Armenian Youth International
Center and the Union of the IT Enterprises of Armenia (UITE). The
contest is sponsored by Synopsys, Unicomp and CIT companies, which
have provided additional awards for the participants.
This is the 3rd contest of young people interested in programming. The
first contest was held in Yerevan in 2002. A.A. -0–

TURKEY FUNDS RECONSTRUCTION OF ARMENIAN CHURCH
09.08.2005 05:02
/PanARMENIAN.Net/ Resulting from downpours biblical frescos at Surb
Khach church in Akhtamar Island gradually disappear. After a
century-long indifference and decades of political variance, Turkey
has decided to lend an ear to EU calls to protect national minority
rights in Turkey. This May the Turkish Government provided 2 million
Turkish liras ($1.5 million) to repair Surb Khach church. The move
gives careful hope for the warming of Armenian-Turkish relations. In
late July Armenian Patriarch of Turkey Mesrop Mutafyan met with
representatives of the construction company that is restoring the
church. Planned restoration works and participation of Armenian
architects were discussed at the meeting. «Surb Khach church is
important both to Armenians and Turks,» noted Zeydanli company
head. In his words, Patriarch Mesrop Mutafyan has advised to contact
Armenian architect Zakaria Mildauoghlu, reported RFE/RL.

Armenia: Development
Davit Lokian
Minister of Agriculture of Armenia
Dear readers,
Between July 18 and 25, 2005, you had an opportunity to address your
questions on the Yerkir’s website to DAVIT LOKIAN, Minister of
Agriculture of Armenia.
Below are the answers to your questions. See the full version of the
interview in Armenian.
Thank you for your active participation: Spartak Seyranian,
editor-in-chief of “Yerkir” Weekly.
Mrav – Dear Mr Minister. For 2 years now, thanks God, all the dams of
Armenia are full of water. Specially the Akhourian dam. But most
villagers in dry Aragatsotn do not have the water on time, and the
employees of water administration prefer to let the water go to the
Turks, rather than to giveto the peasants. Same thing was reported in
the Tchoghas dam basin recently. Why can’t we fix this existential
question? Do you have new irrigation plans for Shirak, Aragatsotn dry
lands?
Davit Lokian – Thank you for appreciating the work that has been done
in the past two years. However, there are still lands where we have
problems. Thatis why the government is directing $170 million to
fixing the irrigation system. The Aragatsotn and Shirak regions are
included in the Millennium Challenge program of the US
government. Besides, the Armenian government in cooperation with the
World Bank is implementing local projects in Gehgarkunik, Shirak,
Aragatsotn and Lori regions. I believe the irrigation problem will be
wholly resolved in Armenia in the coming 3-4 years. The water we lose
because we give it to neighbors will be much less since it is going to
stay in the reservoirs currently under construction or directed to the
irrigation system.
Eric – You worked as a Minister of Urban Development for couple of
years before being nominated as a Minister of Agriculture of
Armenia. In both cases you did not have any experience in the fields
you were/are in charge of. What if next time Dashnaktsutyun party
receives a vacant post of the Minister of Health or the Minister of
the Education? Will you agree to become a Minister in one of those
Ministries? Do not you think one should know what he/she does before
seating on a ministerial chair and expect foreign consultants to
literate them in the work they were supposed to know before agreeing
on the Ministerial posts? Do not you think that appointment of
`strangers in the fields’ as Ministers in current Government holds
back the development of Armenian economy? Unfortunately, there are
many cases of `strangers’ occupying the ministerial chairs in the
current Government, don’t you think. Anyways, I will appreciate your
honest and open answer. Thanks
Davit Lokian – Let me state first that the Ministry of Health is
headed by one of our party members; the Ministry of Education was
headed in the past by Levon Mkrtchian. I have no much of a desire to
change ministries but if there are serious problems in a ministry in
terms of governance or clarifying of general principles and when the
government and my party had deemed necessary, I have tried to work and
resolve the problems. It is the head of the country and my party
comrades that are to evaluate my performance. Eric, let me assure you
that I have no intention to head the Education or Health Ministries. I
suggest we could meet if Eric finds it possible to understand what his
criteria are when evaluating a minister’s performance, and how much he
knows about the ministers’ work.
Vazgen – Is it true that the Lebanon-based branch of the ARF has
rejected the socialist doctrine and instead endorsed capitalism? if I
am not mistaken, that’s the largest branch of the ARF and so why is
the ARF a member of the socialist international?
Davit Lokian – I am not aware, and I believe that no such thing is
possible.
See the full version of the interview in Armenian.

BOARD OF CBA DECIDES TO REDUCE ANNUAL INTEREST RATE ON REPO CONTRACTS
FROM 3.75% TO 3%
YEREVAN, June 13. /ARKA/. The Board of the Central Bank of Armenia
(CBA) decided to reduce the annual interest rate on REPO contracts
from 3.75% to 3%, the press-service of the CBA reports. The annual
interest rate on the attracted deposits was also reduced from 1.75% to
1%. The interest rates on Lombard credits were not unchanged (16%
annually). A.A. -0–