ARKA News Agency
Dec 9 2004

Foreign ministers of Armenia and Azerbaijan agree to continue
negotiations on Karabakh settlement in format of `Prague meetings’

RA Government offers the President to call a special session of the
RA Parliament on December 13

Excise stamps with `2005′ marking for local alcohol production to be
put in circulation on December 10

RA Minister of Defense: the Armenian authorities do their best for
the trial over the murderer of the Armenian officer to be objective
and the murderer be punished adequately

Seminar on SME funds providing issues to be held in Yerevan on
December 11

*********************************************************************

FOREIGN MINISTERS OF ARMENIA AND AZERBAIJAN AGREE TO CONTINUE
NEGOTIATIONS ON KARABAKH SETTLEMENT IN FORMAT OF `PRAGUE MEETINGS’

YEREVAN, December 9. /ARKA/. Foreign ministers of Armenia and
Azerbaijan agree to continue negotiations on Karabakh settlement in
format of `Prague meetings’, RA MFA told ARKA. The ministers met
today in Brussels, exchanged views on problems appeared at given
stage of conflict settlement.
Today RA Foreign Minister Vardan Oskanian returned to Yerevan. L.D.
–0–

*********************************************************************

RA GOVERNMENT OFFERS THE PRESIDENT TO CALL A SPECIAL SESSION OF THE
RA PARLIAMENT ON DECEMBER 13

YEREVAN, December 9. /ARKA/. RA Government offers the President to
call a special session of the RA Parliament on December 13. According
to the Public Relations and Press Department of RA Government, the
special session will be called to adopt a number of draft laws
approved by the Government. L.V. – 0–

*********************************************************************

EXCISE STAMPS WITH `2005′ MARKING FOR LOCAL ALCOHOL PRODUCTION TO BE
PUT IN CIRCULATION ON DECEMBER 10

YEREVAN, December 9. /ARKA/. Excise marks with `2005′ marking for
local alcohol production to be put in circulation on December 10 in
Armenia. According information provided to ARKA agency by the Public
relations and Press Department of RA Government the excise stamps of
2004 will remain in circulation. About AMD 403,4 mln will be spent on
excise stamps `2004’for tobacco production and `2005’for alcohol
beverages.
To mention, 6 tobacco production enterprises are currently registered
in Armenia. At that, according to the tax service, the supposed
volume of marketing of local production under excise in Armenia makes
AMD 14 bln per annum. ($1 – AMD 478). L.V. -0–

*********************************************************************

RA MINISTER OF DEFENSE: THE ARMENIAN AUTHORITIES DO THEIR BEST FOR
THE TRIAL OVER THE MURDERER OF THE ARMENIAN OFFICER TO BE OBJECTIVE
AND THE MURDERER BE PUNISHED ADEQUATELY

YEREVAN, December 9. /ARKA/. The Armenian authorities do their best
for the trial over the murderer of the Armenian officer to be
objective and the murderer be punished adequately, as stated RA
Minister of Defense, Secretary of the National Security Council Serge
Sargsyan answering the questions of `Hot Line’ of Golos Armenii
newspaper. Speaking of the possibility of extradition of the
murderer, Ramil Safarov, to Azerbaijan the Minister noted that he
cannot speak on behalf of Hungarian authorities and guarantee that
Safarov will not be extradited to his motherland. `Though there is no
law on extradition between Hungary and Azerbaijan’, he said.
To remind, on Feb 19, 2004, at 5:30 a.m. the Lieutenant of RA Armed
Forces Gourgen Margaryan who was in Budapest on business trip to
study English in the context of NATO program on Partnership for
Peace, was cruelly murdered with an axe by an Azerbaijani officer,
who participated in the same program. A.H. –0–

*********************************************************************

SEMINAR ON SME FUNDS PROVIDING ISSUES TO BE HELD IN YEREVAN ON
DECEMBER 11

YEREVAN, December 9. /ARKA/. Seminar dedicated to issues of providing
funds to Armenian small and medium enterprises (SME) will be held in
Yerevan on December 11, as USAID Enterprise Development Initiative –
MEDI program told ARKA. The main purpose of the seminar is assisting
the relevant Armenian institutions in introducing of the best
experience of crediting thru estimation of credibility and credit
risk level. The seminar will be productive from the point of view of
forming closer relations between the bank employees and the
entrepreneurs that in its turn will promote the permanent development
of the business environment.
MEDI is targeted at forming of favorable working climate for Armenian
SME. Thru close cooperation with the concerned sides the program will
form strong and sustainable SMEs that will a real source for creation
of jobs in Armenia. T.M. -0–

ARKA News Agency
Dec 9 2004

ON DEC 1-9 NOMINAL EXCHANGE RATE OF ARMENIAN DRAM STRENGTHENED IN
RESPECT TO ALL FOREIGN CURRENCIES

YEREVAN, December 9. /ARKA/. On Dec 1-9 nominal exchange rate of
Armenian dram strengthened in respect to all foreign currencies,
quotes on which are set by CBA. According to analysis of ARKA News
Agency, Canadian dollar lost its positions compared to Armenian dram,
its rate decreased by 6.27% in Dec 1-9 (395.53 AMD). Australian
dollar goes next – by 5.82%, to 366.1 AMD, Argentinean peso – by
5.21% to 161.08 AMD.
Currencies, most important to participants of financial market of
Arenia, i.e. USD and Euro, weakened their positions during such a
short period of time. Thus, exchange nominal rate of AMD to USD made
478 per $1, i.e. by 22.05 AMD or 4.41% more than on Dec 1, 2004. Note
a year earlier, on Dec 9, 2003 $1 was equal to 566.53 AMD. Exchange
rate of AMD to Euro since the beginning of the month strengthened by
4.37% or by 29.08 AMD and today it costs 635.74 AMD. A year ago 1
Euro cost 692.19 AMD.
The fact of strengthening of Armenian dram to Russian ruble is also
interesting. Since the beginning of December ruble in Armenia
weakened by 3.77%, to 17.09 AMD per ruble, while as of Dec 9, 2004, 1
ruble cost 19.17 AMD.
Analysis of foreign exchange market sale-purchase rates by the banks
gives more surprising picture: pretty serious margin between purchase
rate and sale rate of foreign exchange. Today it achieves 25 AMD
during trade of USD and sometimes even more in trade with Euros. Such
a serious margin usually took place in the country in more serious
variation of rates in conditions of not created foreign exchange
markets in the beginning of transition period. In `normal’
conditions, namely in the beginning of 2004, margin in trade with USD
ranged between 2-7 AMD. On request of ARKA to explain the reason to
such a big difference between sale and purchase rates, the dealers of
some commercial banks said that they go for this because average rate
really makes 460 AMD per $1, at the exchange rate of CBA in 478 AMD.
That is why the banks had to increase the margin to minimize currency
risks and receive income from foreign exchange operations in account
of rate difference. Otherwise the banks would have losses.
Thus, most of the dealers, though do not exclude future strengthening
of AMD in the beginning of the next year, do not give the forecasts
in short-term perspective. No one of them gives any comments,
explaining it that existing situation `does not have any logics, and
it is outside of all economic laws’. Everything depends on what will
take place at international financial markets, what moods and trends
will be created there, what inflation and what macroindicators will
be created in USA and European countries. It is also noted that not
the last role in rate trends was played by not so much by exporters,
but large investments in Armenia. Nevertheless, part of the dealers
expressed opinion that fast decrease of USD rate in last days and in
the future more than likely won’t take place. At this, dealers note
serious volumes of sale-purchase deals at foreign exchange market of
Armenia. Along with that on the threshold of holidays Armenia
continues receive large private transfers and mostly in USD. At this,
received assets immediately turn to drams for making purchases.
Note that in the beginning of Aug 2004, when ARKA News Agency
conducted poll among commercial banks, the banks forecasted that by
the end of 2004 the rate of national currency in the country will
stabilize around 530-550 AMD per USD. Besides, Armenian banks did not
exclude that in result of the year, inflation can make 8%. At the
moment, in 11 months of 2004 deflation in Armenia made 0.3%.
According to ARKA News Agency data, 26.94% of profit accrued by
commercial banks of Armenia in Jan-Sep 2004 was provided in account
of net income from foreign exchange operations (1995.3 million AMD on
19 banks). With consideration of Armsvyazbank, net income from
currency operations of banking system made2448.1 million AMD.
Compared to the same period of 2003, income on foreign exchange
operations of 19 banks grew by 816.1 million AMD, or by 69.2%. ($1 –
478 AMD). L.D. –0–

From: Emil Lazarian | Ararat NewsPress

PanArmenian News
Dec 9 2004

ARMENIAN CONSTITUTIONAL COURT APPROVED OF SENDING CONTINGENT TO IRAQ:
IT IS THE PARLIAMENT’S TURN

09.12.2004 17:10

/PanARMENIAN.Net/ The Constitutional Court of Armenia has recognized
the joining of the republic to the Memorandum on regulation of the
command of the multinational division within the coalition forces in
Iraq as corresponding to the Constitution. According to the
Memorandum, in case the National Assembly passes a respective
decision, Armenia will send a contingent to Iraq. Addressing the
Constitutional Court sitting Armenian Defense Minister Serge Sargsian
noted, “Armenia has chosen a way of humanitarian inclusion in Iraq,
especially since it is consonant to the UN Security Council
Resolution on Iraq ¹1546 of June 8.” The Minister emphasized that
Armenia will take exclusively humanitarian part in the stabilization
in Iraq and will send sappers, physicians and drivers. He reminded
that 94 countries take part in the humanitarian activities in Iraq.
It should be noted that after the Constitutional Court making the
decision the sending of the Armenian contingent to Iraq will depend
on the Parliament resolution.

Reuters
Dec 9 2004

Armenia hopes Turkey in EU will reopen border
09 Dec 2004 19:34:46 GMT

Source: Reuters

By Sebastian Alison

BRUSSELS, Dec 9 (Reuters) – Turkish accession to the EU should lead
to a more open society which would open its border with Armenia and
recognise a genocide of Armenians early last century, Armenia’s
foreign minister said on Thursday.

Vardan Oskanyan told Reuters in an interview that the European Union
should press Turkey “aggressively” to reopen the border. EU leaders
decide next week whether to start accession negotiations with Turkey.

“Certainly if Turkey becomes an EU member and implements all the
requirements, meets the criteria, that would mean Turkey would be a
much more open society,” he said.

“Armenia would like to see the open border issue… be raised by the
European Union more assertively, more loudly, even more aggressively,
because this is an important issue also for the European Union,”
Oskanyan added.

Armenia says 1.5 million of its people died between 1915 and 1923 in
a systematic genocide and says the decision to carry it out was taken
by the political party then in power in the Ottoman Empire, popularly
known as the Young Turks.

Turkey denies genocide and relations with Armenia have been tense
ever since. Their border is closed because of Armenia’s occupation of
part of Azerbaijan including the ethnic Armenian enclave of
Nagorno-Karabakh.

Oskanyan said recognition of the genocide was still on Yerevan’s
foreign policy agenda, and he hoped Turkish accession to the EU would
help achieve it.

“In the case of EU accession we hope it will lead to much freer
discourse within the country which eventually may lead to
recognition.”

Oskanyan said if EU membership forced Turkey to open the border, it
would facilitate trade and boost the economy in poor eastern regions
of Turkey as well as in Armenia.

“Turkey’s foreign policy should be in line with Brussels,” he said.
“That means Turkey cannot have closed borders with its neighbours.”

NEW NEIGHBOURS

He added that Armenia had lost an estimated $1 billion in trade over
the last 10 to 15 years because of the closure, and the EU needed to
push for its reopening.

“After all Armenia, along with the other two Caucasus countries
(Azerbaijan and Georgia) is a member of the European Neighbourhood
Policy,” he said, referring to a new EU initiative to boost ties with
its closest neighbours.

“We have no border with any other EU or prospective EU member state,
Turkey is the only one. If they do not take that obligation, do not
rise to the occasion, the whole new neighbourhood policy will be
rendered obsolete, at least for Armenia.”

Armenia is also in dispute with its neighbour Azerbaijan over the
Nagorno-Karabakh region, wholly within Azerbaijan, populated mainly
by Christian ethnic Armenians, and which broke away from Azeri rule
as the Soviet Union collapsed. The two went to war over it following
the break up of the Soviet Union in 1991.

Oskanyan said he was cautiously optimistic on progress towards peace
with Azerbaijan, after a difficult period when veteran Azeri leader
Haydar Aliyev died at the end of 2003 and was replaced by his son,
Ilham.

“The start was very difficult with the Azeris after the change of
players,” he said. “I guess both sides are beginning to warm up to
each other and that gives us some hope that we will be able to make
some progress.”

PanArmenian News
Dec 9 2004

ARMENIAN DEFENSE MINISTER HAS NOT “THOUGHT OF POSSIBLE PARTICIPATION
IN PRESIDENTIAL ELECTION IN 2008”

09.12.2004 14:29

/PanARMENIAN.Net/ Armenian Defense Minister Serge Sargsian stated in
an interview with the Golos Armenii newspaper that speaking about his
possible participation in the presidential election in 2008 “is too
early”. Of course one can understand people’s interest towards the
matter, however, I have not even thought about it yet, S. Sargsian
said.

From: Emil Lazarian | Ararat NewsPress

Armenian Assembly of America
122 C Street, NW, Suite 350
Washington, DC 20001
Phone: 202-393-3434
Fax: 202-638-4904
Email: [email protected]
Web:

PRESS RELEASE
December 9, 2004
CONTACT: Christine Kojoian
Email: [email protected]

PRESIDENT BUSH SIGNS OMNIBUS SPENDING BILL
Reinstates Military Aid Parity between Armenia and Azerbaijan

Washington, DC – The Armenian Assembly hailed yesterday’s enactment of
the Fiscal Year 2005 Omnibus Spending Bill, reinstating security aid
parity to Armenia and Azerbaijan by allocating $8.75 million in
military financing to both countries. This action foils the
Administration’s attempt at the beginning of the year to provide Baku
with a $6 million increase over Yerevan.

“The Assembly welcomes the enactment of this measure which puts
Armenia and Azerbaijan on equal footing,” said Board of Directors
Chairman Anthony Barsamian. “The Administration’s budget request to
Congress could have weakened U.S. credibility as an impartial and
leading mediator in the Karabakh peace process and could have resulted
in a resumption of hostilities, with potentially dire consequences for
U.S. economic and national security interests.”

“We are therefore pleased by this action and salute our network of
grassroots activists who worked side-by-side with the Assembly in
urging Congress to reaffirm military aid parity and to maintain the
highest levels of funding for Armenia and Karabakh.”

The legislation also allocates “not less than” $75 million in economic
aid to Armenia and $3 million in humanitarian aid to Nagorno Karabakh.
The U.S. continues to be the only nation in the world to provide aid
to Karabakh.

The House and Senate foreign operations expenditures were combined in
a final conference report which was included in the Omnibus Spending
Bill and passed by both Chambers before being enacted by President
Bush.

The Armenian Assembly of America is the largest Washington-based
nationwide organization promoting public understanding and awareness
of Armenian issues. It is a 501 (c) (3) tax-exempt membership
organization.

###

NR#2004-105

PRESS RELEASE
Fund for Armenian Relief
630 Second Avenue, New York, NY 10016
Contact: Edina N. Bobelian
Tel: (212) 889-5150; Fax: (212) 889-4849
E-mail: [email protected]
Website:

December 9, 2004
____________________

HAGOP KOUYOUMDJIAN AND RANDY SAPAH-GULIAN JOIN THE FAR BOARD OF DIRECTORS

The Fund for Armenian Relief (FAR) added Hagop Kouyoumdjian and Randy
Sapah-Gulian to its Board of Directors this fall, raising the total
number of members to 13.

Mr. Kouyoumdjian is the owner and President of SASCO Supplies and
Services LLC, an import-export business based in New Jersey. He was
born in Bucharest, Romania and received his education at the American
University of Beirut in Mechanical Engineering.

A venerable member of the Armenian community, Mr. Kouyoumdjian has
supported organizations promoting Armenia and its culture for several
decades. A long-time donor to FAR, Mr. Kouyoumdjian has served on
various Executive bodies of the Armenian Church, has been a Trustee of
the Hovnanian School (1980-1994) and an Associate Trustee of the
Armenian Assembly of America since 1990. Between 1995 and 2003, he
served as the Chairman of the Board of Directors of Armenia Fund USA.
He is very active in his local parish and was recognized as a Pillar of
the Prelacy in 2004. Mr. Kouyoumdjian was also recognized in 2004 for
providing assistance to the St. Nersess Armenian Seminary in Westchester
for the construction of the His Holiness Karekin I Theological Center
and the St. Hagop Church.

Mr. Sapah-Gulian is the founder of InSearch Corporation, where he
currently serves as President and Chief Executive Officer. He has 25
years of executive search experience dealing with senior management
across a broad range of industries. During FAR’s search for a new
Executive Director after Simon Y. Balian’s departure, Mr. Sapah-Gulian
volunteered his firm’s services. Prior to his entry into the executive
search field, he worked in the publishing industry. Mr. Sapah-Gulian
holds a B.A. in Business Administration from Rutgers College and has
been a speaker at industry conferences.

Mr. Sapah-Gulian has been very active in the Armenian community dating
back to 1969. His involvement with AGBU’s Antranig Dance Ensemble began
first as a performer and then as the Artistic Director and
Choreographer, a role he maintained until 1986. Mr. Sapah-Gulian has
studied in Armenia as a guest of the School of Dance Choreography and
the Armenian State Dance Ensemble. He was subsequently elected to the
Central Committee of America, the AGBU’s U.S. Board of Directors. He is
active in his local parish as well as the Diocese, notably extending his
support to the Ararat Youth and Conference Center.

“I am delighted to be a part of this vibrant organization with a rich
history of helping Armenians in Armenia and Karabagh,” said Mr.
Sapah-Gulian. “FAR makes a real difference in the lives of all
Armenians today – unleashing its great potential will help to achieve
the dreams of our ancestors to build a free and democratic Homeland.”

On behalf of the FAR Board of Directors, Chairman Kevork Hovnanian
expressed “a warm welcome to Mr. Kouyoumdjian and Mr. Sapah-Gulian, good
friends to FAR and to Armenia.” The FAR Directors are pleased to have
them join the organization and are looking forward to working with these
accomplished leaders to move FAR onto new paths.

FAR is a 501(c)(3) nonprofit organization headquartered in New York,
with offices in Yerevan, Gyumri, and Stepanakert. For 15 years, FAR has
implemented various relief, development, social, educational, and
cultural projects valued at more than $250 million. It is the
preeminent relief and development organization operating there. For
more information on FAR, contact us at 630 Second Avenue, New York, NY
10016; telephone (212) 889-5150, fax (212) 889-4849; ,
[email protected].

— 12/9/04

E-mail photo available upon request.

CAPTION: Mr. Kevork Hovnanian, Chairman of the FAR Board of Directors
(center), extended a warm welcome to Mr. Hagop Kouyoumdjian (left) and
Mr. Randy Sapah-Gulian (right) who joined the FAR Board this fall.

From: Emil Lazarian | Ararat NewsPress

NUMBER OF TOURISTS VISITING KARABAKH INCREASED BY 31 PERCENT

Azg/arm
10 Dec 04

The number of tourists visiting Nagorno Karabakh increased by 31
percent compared with last year’s figures, Mediamax news agency quoted
YuriZakharian, official at the Foreign Ministry of Nagorno Karabakh,
as saying. Zakharian also added that this tendency was observed during
the last 4 years.

Nagorno Karabakh hosted representatives of 70 countries of the world,
mainly citizens of Russian, America, France, Canada, Germany,
Australia, Great Britain, Syria, Israel and Japan. 70 percent of the
visitors were tourists.

Yuri Zakharian noted that the number of business visits to the region
has also increased. He thinks that Karabakh’s attractiveness for
investments is the reason for this. Newly built roads and hotels also
explain the growth in tourists’ flow to the region. There are at
present 15 hotels in therepublic belonging not only to Armenians but
foreign citizens as well.

ARMENIAN SCIENTISTS WIN IN CONTEST OF U.S. DEPARTMENT OF AGRICULTURE

Azg/arm
10 Dec 04

USDA MAP (Marketing Assistance Program) informs that a group of
Armenian scientists from plants’ genetic resource laboratory at the
Agricultural Academy won a grant of US Department of Agriculture. The
money is going to be put in the project of “Preserving and using
wheat’s wild ancestors in Armenia”.

Prof. Mikhail Gyulkhasian, head of the scientists’, group told
journalists that the project will set to collect and preserve the gene
pool of wheatâ=80=99s wild ancestors which will be salvation for this
unique species and added that the wild wheat and rye were collected
from the regions of Ararat, Vayots Dzor and Erebuni resort. They will
serve as resources for breeding new species more enduring to cold,
drought and insects.

Prof. Gyulkhasian’s project together with two other projects
becamewinner within the US Agriculture Department’s program of
International Cooperation of Agricultural Research in the Central
Asia-Caucasus region among 125 other projects.

BY Ara Martirosian

Armenian ombudsman might meet pilots jailed in Equatorial Guinea

Noyan Tapan news agency
9 Dec 04

YEREVAN

The Amnesty International organization has expressed its readiness to
assist the Armenian human rights commissioner in meeting the
authorities in Equatorial Guinea over the fate of Armenian pilots,
Armenian ombudsman Larisa Alaverdyan told a news conference today.

Alaverdyan said she was currently preparing a report on the human
rights situation in the country, which will be published in March. It
cannot be ruled out that it will contain the names of several
government officials.

Since starting work on 1 March 2004, the ombudsman’s office has
received 1,590 complaints, of which 680 were filed from the
countryside. A total of 275 complaints concern local government
bodies, 178 courts, 164 the Ministry of Social Security, 124 the
police, 76 the State Committee for the Registration of State Property
and 65 the Ministry of Justice.