Armenian leader in Shanghai to discuss economic ties with China

Public Television of Armenia, Yerevan
29 Sep 04

The Armenian delegation led by President Robert Kocharyan, who is
on an official visit to China, held a number of meetings today. The
president today flew to China’s second biggest city of Shanghai. The
Armenian delegation discussed wide-ranging issues of deepening economic
ties between the two countries.

The Armenian president will meet the mayor of Shanghai in the
afternoon. Lilit Sadrakyan has details on the Armenian delegation’s
meetings today.

[Sadrakyan on the telephone] Shanghai is the centre of China’s economic
progress. This morning Kocharyan visited one of Shanghai’s major
areas where the city’s biggest exhibition halls are located. These
exhibition halls have come up with the initiative to demonstrate
goods manufactured in Armenia. Kocharyan also visited the world’s
third tallest TV tower in Shanghai. The Armenian delegation visited
the Shanghai history museum, too. At the end of the day, the Armenian
president will be visited by the Shanghai mayor.

Armenian paper says USA not to help Azerbaijan resolve Karabakh conflict

Ayots Ashkar, Yerevan
29 Sep 04

Text of Sarkis Gevorkyan’s report by Armenian newspaper Ayots Ashkar
on 29 September headlined “‘The logic’ of a gambler”

Against the background of reports about the deployment of US
mobile forces in Azerbaijan, [Azerbaijani] President Ilham Aliyev’s
“antiterrorist” speech at the 59th session of the UN General Assembly
points to a drastic change in his country’s foreign policy.

Talks on the deployment of US mobile forces in Azerbaijan were
conducted long ago and were met by serious objections on the part of
Russia and openly hostile attitude of Iran. Let us try to understand
what calculations the Azerbaijani leader was guided by when taking
this step.

Meanwhile, we have to make clear at least two realities:

a) It will be naive to think that if they come to Azerbaijan, the
Americans will become a toy in Ilham Aliyev’s hands: their today’s
target is neither Russia nor Armenia nor Karabakh but only Iran.

b) If in exchange for Ilham’s “friendly attitude” the Americans have
promised to settle the Karabakh issue as soon as possible or at least
to ensure the return of liberated territories, a question arises:
how will this happen given that Armenia is also a partner of the USA
in the antiterror coalition and Russia’s partner with strict security
guarantees under the CIS Collective Security Treaty.

We think that Ilham Aliyev has only one expectation: the Americans
after coming to Azerbaijan will put serious pressure both on Armenia
and Moscow so that the latter forces Armenia to make compromises in the
Karabakh issue. In fact, they have a task not to persuade Russia (as it
was the case earlier), but to make it adopt pro-Azerbaijani decisions
with the help of Washington. Following the logic of the Azerbaijani
party, let us make everything clear: how much will Washington’s
“political payment” be for the deployment of its mobile forces in
Azerbaijan? And second, why should Moscow yield to Washington’s
pressure and insist that Armenia withdraw from liberated territories
opening the way not only for the USA but also for Turkey via Naxcivan?

The Azerbaijani president’s calculations may be regarded as logical
only if there is Russian-US agreement on dividing the region into
spheres of influence. But if there is such agreement, which undoubtedly
outlines the parties’ positions towards the Karabakh issue as well,
then why is Azerbaijan in a hurry to gain a new enemy in the person
of Iran?

Today’s attempt by Ilham Aliyev to invite Americans to Azerbaijan
and at the same time to accuse Armenia of terrorism from the UN’s
high rostrum is threatening to pose a serious danger in future not
to Armenia but Azerbaijan. The latter will be involved in a big game
whose participants, including the USA, in fact, are not interested in
the Karabakh issue. The superpowers, on the basis of actual borders
controlled by the countries in a certain part of the region, will
turn the Karabakh issue from the Armenian-Azerbaijani conflict into a
problem of protecting their own spheres of influence and, as a result,
create a status quo. It seems that even in this case the Karabakh issue
can be settled in Azerbaijan’s favour if the USA “settles problems”
with Iran, ousts Russia from the Caspian and the South Caucasus, that
is, becomes the only dictating force. But even in this unlikely case,
iron logic about the necessity of strengthening the “weakest link”
of the region will tip the scales of US policy in Armenia’s favour.

Thus, in fact, the only “logic” of Aliyev’s previous and today’s
actions is an unrestrained desire of a losing gambler to stake his
all. We think it is not difficult to understand what it means to put
everything at stake for a small country which once suffered defeat. So,
we have to wait for that decisive moment when the gambler Aliyev
makes his next and probably the gravest mistake.

Chinese influence may reduce Turkey’s role in Caucasus – Armenian paper

Ayots Ashkhar, Yerevan
28 Sep 04

Text of Sarkis Gevorkyan report by Armenian newspaper Ayots Ashkhar
on 28 September headlined “How can we excite China’s interest?”

If we speak about the current relations between Armenia and China
and the prospect of developing them, unreal ideas and programmes
emerge sometimes, calling into question specific and real problems
in bilateral relations. From this point of view, Armenian President
Robert Kocharyan’s visit to China could greatly promote the clarity
of these ideas by carrying out more specific and at the same time,
promising programmes.

A number of complex and often contradictory external and internal
factors have limited the possibilities of Armenian-Chinese strategic
cooperation for many years. We have only cooperated on individual
economic programmes, training specialists in the military sphere
and so on. At present, when the prospect for a serious change in the
balance of forces in the whole South Caucasus-Central Asia region is
becoming evident: the deployment of US mobile forces in Azerbaijan,
the sharp expansion of opportunities to export Kazakh and Turkmen
energy reserves via Azerbaijan to the West, blockading Iran from
the north and forming a special Turkic axis by strengthening mutual
integration between Turkey, Azerbaijan and Central Asia, the prospects
of stepping up China’s role in the region are becoming more realistic.

China’s more active involvement in the processes taking place in the
South Caucasus, as well as in Kazakhstan and Central Asia promises
to widen the directions of exporting fuel from the region, and to
noticeably reduce the capacity of the Baku-Ceyhan pipeline and thus
to reduce its economic profitability. This will directly affect the
Azerbaijani president’s plans to earn billions from Baku-Ceyhan,
because our neighbour’s own energy resources cannot ensure the
profitability of that pipeline.

The balance of forces which is taking shape in the region today is
creating pre-conditions for opening a direct corridor between Turkey,
[Azerbaijani exclave] Naxcivan and Azerbaijan and for implementing
pan-Turkic programmes. In such conditions, China cannot be indifferent
to the strengthening of the “Armenian wedge”, as it feels the danger
that the Turkic factor is being supported on its territory by external
forces. To tackle these problems, China will undoubtedly try to enter
actively into Central Asia, as well as into the South Caucasus.

There are also numerous other options for expanding China’s influence
on the processes in the South Caucasus and deepening Armenian-Chinese
cooperation. Naturally, today’s tendency towards changes in the
regional balance of forces cannot but worry China, because after the
South Caucasus, Central Asia is in fact the last obstacle in the way
to its border.

In such conditions, the problem of weakening external pressure on
Armenia and increasing our country’s ability to resist may become a
serious impetus for deepening Armenian-Chinese cooperation today. On
this basis, the two countries’ economic cooperation can be noticeably
expanded today. The potential of the Chinese market is so great that
by stimulating export and implementing joint programmes, Armenia could
achieve success in the mining and chemistry industries, as well as
in agriculture.

All this shows that today is the most convenient moment to switch
to more general and deeper mutual cooperation and to “synchronize
clocks” for the joint implementation of certain and specific strategic
programmes.

The reason is evident: any change of balance in the world, including
in our region, makes unavoidable the appearance of an opposing force
for forming a new balance.

Annual trade between Armenia, Turkey totals 40m dollars

Public Television of Armenia, Yerevan
29 Sep 04

The secretary of the Armenian-Turkish Business Forum, Ashot Sogomonyan,
believes that annual trade between Armenia and Turkey totals up to 40m dollars.
About 20,000 Armenian businessmen are doing business with Turkey.

Economists believe that if Turkey changes its policy towards Armenia and
opens borders with this country, the figures will go up immediately. Currently,
trade between Armenia and Turkey is carried out via third countries, in
particular, Georgia and Iran.

Turcologist Ruben Shafrastyan also believes that Armenia is not ready to open
the borders. Before opening the borders, Armenia should make amendments to
its legislation to protect the interests of local manufacturers.

Turkey set to “degrade” Armenia financially, presidential aide says

Mediamax news agency
29 Sep 04

Yerevan

Normalization of Armenian-Turkish relations depends entirely on
Turkey, Armenian presidential aide Seyran Avagyan told today’s
seminar in Yerevan entitled “The economic efficiency of opening the
Armenian-Turkish border and possible developments” organized by the
Centre for Public Dialogue and Development.

Avagyan said that the markets of the two countries are well aware
of businesses, commodities and potential of manufacturers of one
another. “The opening of the borders will be an economically and
mutually beneficial step, and both countries know this well,” the
presidential aide said. However, he said that Turkey’s political
principles are creating problems for improving Armenian-Turkish
relations.

“We are witnesses to blockade imposed by this country whose strategy
is to degrade Armenia financially,” Avagyan said.

Armenia puts off Karabakh talks in Prague

Turan news agency
29 Sep 04

Baku

At the request of Armenia, the next meeting between the Armenian and
Azerbaijani foreign ministers in Prague has been postponed for an
indefinite period, Azerbaijani Deputy Foreign Minister Araz Azimov
told journalists today.

He recalled that the foreign ministers of the two countries had held
four meetings in 2004. “Those meetings were useful. Their results
have been discussed at a high level,” Azimov said.

The issues discussed are directly connected with the settlement of
the Karabakh conflict, he said. “Some proposals, views and positions”
are discussed in the course of the meetings, Azimov said.

In particular, one of the aspects of the discussion is about providing
the Karabakh Armenians with a ground link with Armenia. Azerbaijan,
in turn, is interested in communications with Naxcivan [Azerbaijan’s
exclave], Azimov said.

The deputy minister also noted that Azerbaijan has guaranteed the
security of Armenians in Azerbaijan from the start. This is possible
at the level of bilateral cooperation or with the mediation of
international observers, Azimov said. Normalization of political
relations will lead to normalization of relations between the two
peoples. This is one of the requirements of integration into Europe,
he said.

From: Emil Lazarian | Ararat NewsPress

International conference in Armenia debates regional conflicts

Public Television of Armenia, Yerevan
29 Sep 04

[Presenter] An international conference entitled Integration
into international structures as a guarantee of peaceful
resolution of conflicts in the South Caucasus was held in Yerevan
today. Representatives from the three South Caucasus countries spoke
at the conference about internal and external factors that impact on
the resolution of territorial conflicts and ways of settlement.

David Berzeneshvili from the Georgian parliament said that although the
South Caucasus countries were admitted to international organizations
as equal states, however, due to various reasons, they are isolated
from one another and cannot be viewed as a single region, like the
Baltic republics. Integration between the Baltic states has reached
the highest level.

Classifying the Karabakh conflict as an exceptional territorial
conflict, the Georgian representative spoke about possible damage to
the region and to cooperation between Europe and the Caucasus in case
of the resumption of hostilities in the region.

A representative of Azerbaijan’s Institute for Peace and Democracy,
Arif Yunusov, believes that factors hindering the conflict settlement
are enemy images being created in both countries and a mythical
opinion in Azerbaijan that the issue will be settled in its favour
due to its oil reserves.

[Yunusov, speaking in Russian] When the oil contract was signed [the
Contract of the Century signed in 1994], many in Azerbaijan believed
that oil in tandem with the West’s support was the key to the Karabakh
conflict resolution and the country’s social problems. Since then 10
years have passed and we understand that this is a theory. And now
new legends are being created about NATO’s support.

Russian energy group plans expansion drive
By Stefan Wagstyl and Arkady Ostrovsky in Moscow

FT
September 29 2004

Unified Energy System, the Russian electricity monopoly, is considering
politically sensitive moves to supply power to Iran, Turkey and China
as part of an international expansion drive.

The group is planning investments in power generation and/or
distribution in the countries of the former Soviet Union on Russia’s
southern borders, including Kazakhstan, Kyrgyzstan and Tajikistan,
which would complement existing UES investments in Georgia and
Armenia. Once these are in place, UES will be in a position to build
connecting links to Iran, Turkey and China and use an existing link
between Armenia and Iran.

Anatoly Chubais, UES chairman, said the moves would make sense
commercially in spite of the political challenges involved in dealing
with several different countries lying in a politically sensitive
region. “There’s a business logic. There’s a good price for electricity
in Iran, China and Turkey,” he said.

The planned investments by the state-controlled UES might be seen
in some of the former Soviet republics as a new form of Russian
imperialism.

But Mr Chubais, a leader of Russia’s liberal Union of Right Forces
party, said UES’s plans were in tune with his programme of “liberal
imperialism” in which businesses, not governments, took the initiative,
acting out of commercial, not political, motives. Mr Chubais said the
proposed Kazakh investment was a stake in a large power station but
he declined to give details of the plans in Tajikistan and Kyrgyzstan,
as talks were at a sensitive stage.

The group’s existing investments in the region include about 20
per cent of Georgia’s generating capacity and 35 per cent of its
distribution network. In Armenia, it controls 85 per cent of generation
through its management contract for the Metsamor nuclear plant. Mr
Chubais said these investments could open doors to larger markets.

Earlier Mr Chubais told an investment conference that the company was
preparing for reform of the domestic electricity market, in spite of
the fact the government postponed key decisions this year.

Under the plan, UES would be broken into distribution, transmission
and generating companies which would mostly be privatised. But
Mikhail Fradkov, the prime minister, delayed implementation, saying
he needed more time to study the mechanism of deregulation and its
impact on households.

The government is now due to reconsider the reforms on December 2.

Mr Chubais said yesterday that UES had proposed new plans under
which prices would be liberalised only slowly – over 3 to 5 years –
to protect vulnerable consumers.

US aid ban may be reinstated if Kerry wins polls – Azeri paper

Zerkalo, Baku
29 Sep 04

If Democratic candidate John Kerry wins the forthcoming presidential
elections, he may raise the issue of restoring a currently suspended
law banning assistance to the Azerbaijani government, a source from the
US State Department has told the Azerbaijani newspaper Zerkalo. The
source added that the issue of stationing US forces in Azerbaijan
has almost been resolved. Yet, according to the source, Washington
is accusing Baku of “disrupting” NATO exercises in Azerbaijan and
undermining the USA’s international standing. The following is the
text of R. Mirqadirov report by Azerbaijani newspaper Zerkalo on 29
September headlined “Section 907 may be reinstated” and subheaded
“If John Kerry wins the presidential elections”. Subheadings have
been inserted editorially:

Washington displeased with Baku’s behaviour

If we were to believe the words of a senior US State Department
official, Washington is utterly dissatisfied with the behaviour
of official Baku, the source told a Zerkalo correspondent who has
recently returned from the USA.

There is an impression in Washington that Baku is trying to play with
both the USA and Russia. Also, the high-ranking US State Department
official said that the “temporary” stationing of US mobile forces in
Azerbaijan is practically a solved issue. He added that only usual
formalities need to be sorted out.

At the same time, however, Washington believes that by “disrupting”
NATO exercises in Azerbaijan, Baku demonstrated its loyalty to
Russia. In doing so, Baku effectively dealt a blow to Washington’s
positions in the international arena. Because the USA is the most
consistent supporter of the integration of the S outh Caucasus
countries, first of all Georgia and Azerbaijan, into the North
Atlantic bloc.

Apparently, things did not end with the State Department’s well-known
harshly-worded statement. Despite statements by Azerbaijani officials
that the disruption of the NATO exercises will not in any way affect
the country’s relations with the North Atlantic alliance and the
USA, the US State Department official said Washington had decided to
minimize official contacts with Azerbaijan.

The US State Department source noted that the developments unfolding
at the present stage both in and around Azerbaijan are not particularly
interesting to Washington.

“We have managed to fulfil three most important tasks. First, the
construction of the BTC [Baku-Tbilisi-Ceyhan] main export pipeline is
already irreversible. Second, US mobile forces will be stationed in
Azerbaijan. And third, despite the disruption of the NATO exercises
allegedly because the participation of Armenian officers in them
was impossible, we have managed to avert the threat of hostilities
resuming in Karabakh,” the US State Department official told Zerkalo.

In other words, Washington has already taken time out in its foreign
policy with regard to Azerbaijan in order to concentrate on the
forthcoming presidential elections, as the US State Department official
put it, “without taking account of the whims of Baku and Yerevan”.

The source added that domestic political processes in Azerbaijan,
unlike those in Georgia and to some extent even Armenia, are not
hugely interesting to Washington at this point.

“And not because we are pleased with the domestic political situation
in Azerbaijan. But because, unlike Georgia and Armenia, there has
been complete public apathy towards domestic political processes
in Azerbaijan since the presidential elections. The opposition is
practically inactive. We have nothing to do there. We will probably
show ourselves in the run-up to next year’s parliamentary elections.”

However, he hinted that among the opposition leaders, Washington was
giving preference to the PFAP [People’s Front of Azerbaijan Party]
chairman, Ali Karimli. But even he should not count on special support
from overseas, at least in the foreseeable future.

Kerry to focus on human rights

The situation, however, can change slightly if John Kerry comes to
power. It transpired in the discussion with the circles close to
Democratic [Party] leaders that John Kerry will put special emphasis
on issues of human rights and democratic principles in his policy
towards the post-Soviet republics.

“There will be no hypocrisy or double standards in this issue, which
today is the main principle of Bush’s policy towards the post-Soviet
republics,” said a source close to the democratic leaders. But this
does not mean that John Kerry will break off relations with all the
countries, including Azerbaijan, where, as US Democrats think, human
rights and democratic principles are being violated. In the worst-case
scenario, even if John Kerry does not put forward the initiative
to reinstate Section 907 [ban on US assistance to the Azerbaijani
government], he will at least be constantly threatening to do so,
this time stressing the violation of human rights and democratic
principles. This, however, will happen not only to Azerbaijan, but
also to all the post-Soviet states. It is probably for this reason
that practically all leading CIS countries, despite their grudges
against the current White House boss, openly support George Bush.

And here we would like to emphasize quite an important thing. During
his latest visit to the USA to attend a session of the UN General
Assembly, Azerbaijani President Ilham Aliyev drew a wave of criticism
on the part of his political opponents for failing to meet the
leaders of the world’s superpowers and meeting instead well-known
Mr George Soros who can hardly be suspected of sympathy towards the
current White House boss or towards Baku. On the contrary, Soros is
doing everything in his power to prevent Bush from winning a second
term in office. In other words, he is John Kerry’s ally. Therefore,
it would be naive to view the meeting of the Azerbaijani president
with George Soros as one of ordinary protocol.

Georgian president appoints new governors, nominates Abkhazia coordinator

Imedi TV, Tbilisi
28 Sep 04

Georgian President Mikheil Saakashvili has appointed three new regional
governors. At a news briefing held in Tbilisi on 28 September,
broadcast live by Georgian Imedi TV, Saakashvili also nominated
former deputy security minister Irakli Alasania the new head of the
Tbilisi-backed government of Abkhazia in exile. The president said that
Alasania, whose father was executed by Abkhaz separatists in 1993,
would be “Georgia’s main spokesman on the Abkhazia issue” and would
“coordinate all our activities” with respect to the breakaway region.
Asked about relations with Russia, Saakashvili said Georgia had no
secrets from the Russian secret services when it came to the fight
against terrorism. He went on to say that prospects for co-operation
on Abkhazia were good. He also touched on the controversial bill on
broadcasting, saying that no restrictions will be imposed on private
channels “as long as he is president”. The following is an excerpt
from the news briefing broadcast by Imedi TV; subheadings have been
inserted editorially:

Three new governors appointed

[Imedi TV interrupts its broadcast to go live to the president’s news
briefing held in the State Chancellery]

[Saakashvili] Greetings. I have not held this kind of news briefing
for a long time, so I think there are many topics to talk about. First
of all, I want to say that we have made several decisions with respect
to the regions of Georgia and our regional policy.

Since the [November 2003] revolution, we have managed to achieve
many positive results. Pension and salary arrears have been repaid,
for the most part. Only about 50m [lari] of pension arrears remain
outstanding. [Passage omitted]

I should say that I am not dissatisfied with the work of the governors
in Samegrelo or Imereti Regions. In Samegrelo, Leri Chitanava has
managed to neutralize almost all paramilitary groupings. You may also
remember rallies staged by refugees, associated with the Saposto Banki
[Post Bank] and injustice. These problems no longer exist, he managed
to put this system in order. Generally, he is a good man, we should
appreciate this, and we will not lose him. The same goes for [Davit]
Mumladze [in Imereti]. [Passage omitted]

Now we need new energy. We need personnel changes. These people
have accomplished their main role at the first stage, from the point
of view of stabilization. Now we need personnel changes which will
create a basis for steady economic growth. This will not be a simple
task. [Passage omitted]

We have made the decision to appoint a new governor of Samegrelo,
Gigi Ugulava, who until now has been deputy minister of security. He
acquired most substantial experience before that too, when he worked
in the Justice Ministry. I think this is a very good appointment. This
region, Samegrelo, which has a great potential and energy, should
open up. Samegrelo has suffered more than other regions during the
past few years. The new governor should be a slave of Samegrelo, so to
speak. He must do everything to revive this unique region of Georgia,
which needs extraordinary attention because it suffered the most during
the civil war. Gigi [Ugulava] received a very good education, both in
Georgia and abroad, he speaks several foreign languages. This is very
important for contacts: foreign, domestic and business contacts. He
also knows the security structures very well, which is very important
there [in Samegrelo], and I think he will be a good governor.

In Mtskheta-Mtianeti, we are appointing Giorgi Khachidze, Goga
Khachidze. We have just summoned him back from the army. During the
last few weeks, he has been staying in a camp of reservists. While some
other garrulous politicians of ours want to defend our motherland with
their tongues, Goga and his friends from the parliamentary majority,
including some senior people, have been waking up at six o’clock in the
morning, running 10 km, and training in various disciplines of which
I, as a civilian, have little knowledge. So we summoned him back and
we are appointing him the new governor of Mtskheta-Mtianeti. I think
that Goga is a good choice. He is very honest, he has an absolutely
untainted reputation, and he is an idealist, which is a necessary
quality for all our appointments made after the revolution.

In Imereti – I repeat once again that I am grateful to [Davit]
Mumladze, I believe that he has worked very well, he has resolved
many issues in the region which was almost ruined in economic
terms. [Passage omitted] However, I think that we need to start a
new stage there. Therefore, I believe that Gia Getsadze, who has been
first deputy minister of internal affairs, [Irakli] Okruashvili’s first
deputy, will be a good replacement. I selected him according to the
same criteria: He has experience of working in the law enforcement
structures, he speaks foreign languages, he has had contact with
business structures and knows how they work, and he has an absolutely
untainted reputation.

New head of exiled government nominated

You know that the main topic for me, as well as for the Georgian state,
is the topic of Abkhazia. This does not mean that we will be able to
resolve this problem tomorrow. We cannot, because the current level of
Georgia’s economic development and the current level of development
of the Georgian state, and other factors associated with the state
is not adequate – because of many years of destruction – to resolve
all our problems of territorial integrity, and the main problem, the
problem of Abkhazia. This will require years of preparation, this will
require the unity of the entire nation, not that disgusting squealing
which we can hear so often and which is aimed at sowing pessimism
and defeatism. But today the majority of the Georgian nation – and
I mean all nationalities – is united as never before and understands
that everything – the reduction in the level of corruption, economic
progress, stabilization and consolidation of the state organization –
serves one purpose, the unification of Georgia.

We need a structure that will work on the Abkhazia issue day and
night. The [Tbilisi-based] Council of Ministers of the Autonomous
Republic of Abkhazia is this kind of structure. To tell the truth, this
council has not been distinguished by its level of activity. I want
to tell you straightforwardly that some of its representatives were
distinguished by their enormous appetites and by misappropriating the
funds allocated for refugees. Now we are going to turn this structure
into a compact body. There is no need to have many staff there.
This will be a structure which will coordinate all our activities
on Abkhazia.

You know that yesterday we presented the family of Zhiuli Shartava
[Tbilisi-backed prime minister of Abkhazia executed by Abkhaz
separatists after they captured Sukhumi in September 1993] with the
order of hero of the nation. Gen Mamia Alasania, another hero, died
together with Zhiuli Shartava. This fearless man had also decided to
stay in the besieged Government House [in Sukhumi], and honourably –
and you can see this in footage which has been shown many times –
gave his life for his country. He was a prominent representative of
our law enforcement structures.

His son, Irakli Alasania, used to work in our embassy in America, and
he was a very good and competent employee. Then he worked as deputy
security minister and effectively supervised the Pankisi operation. He
carried out very important operations in Pankisi. Now he is deputy
secretary of the National Security Council. I would like to say that,
apart from personal sympathy, I have no close relationship with
Irakli. My mother is also Alasania, but you should not think that
there is some kind of [changes tack] – I am sure that some rascals
will emerge and start shouting that I am appointing my relatives to
top positions. This is not the case. There is no ministerial post
for my relatives. But every possibility is open for Irakli. We are
entrusting him with coordination of this entire direction. I think he
will coordinate both economic and diplomatic activities with respect
to Abkhazia as well as some law enforcement activities. You know that
the crime situation there is very serious.

We are reorganizing the Council of Ministers of Abkhazia. Hopefully,
the approval of this decision will not be delayed [in the
Tbilisi-backed Supreme Council of Abkhazia]. I will ask them to call an
extraordinary session tomorrow and approve Irakli Alasania. I believe
that, at this time, there is no better person than Irakli to work
on this issue. This is a person whose heart is in Abkhazia. This is
a matter of personal dignity for him. This is a matter of personal
dignity for me as well, but in his case it is more so because his
dearest family member sacrificed his life for this cause. So, this
is the main goal of his dignity, future and life. Therefore, we are
entrusting these duties to this man, and you should know that he will
be Georgia’s main spokesman on the Abkhazia issue in general.

This is what I wanted to say with respect to these personnel changes.

Tough line with BP benefits Georgian resort

I also want to speak about another issue. There has been some squeaking
recently, with several politicians saying that we have created tension
in relations [with the West] by imprudently raising the issue of
oil pipeline safety. They were alleging that our relations with our
friends deteriorated last summer because of this.

These politicians, who are not particularly smart in politics,
as always, were proved absolutely wrong. Following several months
of very tense talks, we have practically reached an agreement with
British Petroleum – details remain to be finalized – under which
Georgia will receive an additional tens of millions of dollars. We
would not have received this money without this agreement.

I have promised Borjomi residents – this is under my personal control
and mainly concerns the Borjomi valley – that we will build a very
good recreational park in Borjomi next year. It will be ready next
May and will serve the whole of Georgia. We will import very good
roundabouts and build a kind of mini-Disneyland. I will do this. I
personally promised this.

We will build hotels there and will turn Borjomi into a top-level
resort. Present-day ruins that look like bomb-sites [changes tack] –
Let people be confident. The unions have already softened following
my warning and are ready to hand over [facilities] after refusing
to do so for 12 years. They be returned to the Georgian people. We
will build a world-class resort there next year. I, like many of us,
spent my childhood in Borjomi and I want it to be the same as then,
ten times better than then, and not to be in ruins as it is today. I
want Georgians, and not only Georgians, to return there.

For the first time [in recent times], the number of tourists
in Ajaria has doubled this year, mainly thanks to Armenians and
Azerbaijanis. Armenians and Azerbaijanis have started going there
because the traffic police are no longer extorting money from them. By
the way, I am putting up posters along the road with hotline telephone
numbers and an appeal in several languages to telephone if stopped
by police. A controller will arrive there by helicopter at once,
tie up the policeman and deliver him to an appropriate place. The
groundless stopping of cars on Georgian roads is history. This has
resulted in an increase of tourists in Ajaria.

At least four times as many tourists will go to Borjomi next year
as this year. We will do this using budget resources, as well as the
proceeds from the agreement with the oil companies, which we reached
thanks to our principled position and despite the opposition of local
critics. Therefore, it has been proved once again that we were right
and they were wrong.

That’s all. Do you have any questions?

[Passage omitted; next question indistinct]

Private TV companies have nothing to fear

[Saakashvili] Georgia is proud to have independent television. Georgia
is the only country in the CIS where independent television does
exist. This is our main achievement. I brag about this when I am
abroad.

Georgia has returned to the world arena; Georgia is back on the
world map. CNN and Euronews have included Tbilisi in their weather
forecasts for the first time. It is true that it took a lot of effort
and asking, but they have finally done this. That is to say, they have
recognized us as part of the world and part of Europe. Our television
stations are our pride.

On the other hand, the public channel is absolutely irreplaceable. The
public TV channel is working on a weekly Moambe news bulletin in
the Abkhaz language. One day it will be in Abkhaz, the next day it
will be in Ossetian, the third day it will be in Azerbaijani, on the
fourth day it will be in Armenian and on the fifth day it will be in
Russian, as it has been [sentence as heard]. Which private channel
will do this? This is a commercially unprofitable project. Likewise,
there will be educational programmes. I want the Patriarchate to have
a programme speaking about Orthodox Christian issues. Perhaps there
should be similar programmes on other religions.

In this situation, it is wrong to write off the public channel. I do
not know exactly what issues are being debated, but I know one thing
that I heard on television. It was alleged that limitations were being
imposed on free television. No-one intends to impose restrictions on
television as long as I am president because this [free television]
is very good for me. It is thanks to you that I am sitting here and
speaking to my people. Therefore, I think that these issues will be
decided in parliament. There are smart people in parliament and they
will make the right decisions.

[Switches to Russian] Please. [Question in Russian; indistinct]

No secrets from Russia on terrorism issues

[Saakashvili, in Russian] First of all, I should say that for us
terrorist is not a general term. We know their names. The majority of
Chechen field commanders have the blood of ethnic Georgian residents
of Abkhazia on their hands. These people are not our friends. May God
save us from this sort of friend and we will manage to rid ourselves
of our enemies.

We are co-operating with the Russian Federation at all levels. Our
state security minister met the director of the FSB [Russian Federal
Security Service] and the director of the Foreign Intelligence
Service recently. We do not have any secrets from the Russian special
services when it comes to fighting terrorism. We are very open to
co-operation. We conduct joint flights over our borders. Joint patrols
of the border began on our initiative so that not a single armed man
can cross either from Georgia into Russia or from Russia into Georgia.
We, too, want to protect ourselves against them. Georgia is even more
vulnerable, even weaker, even less protected against terrorism than
Russia. All the more so, because these people are not our friends,
they are our common enemies. Each one of them is our enemy.

Therefore, I think that if the Russian special services have any
information they should help us as well. We are helping them in
all possible ways to get rid of all sorts of elements. The sooner
Russia establishes order on its territory, the more peaceful nights in
Georgia will be. This is for sure. This is what I can say. Therefore,
cooperation between us is getting better and I think that in this sense
[Russia] has not complained to us recently.

Counts on Russia’s cooperation on Abkhazia

[Question in Russian; indistinct]

[Saakashvili, in Russian] Let’s be direct. Let’s be direct and
say that whatever tricks are used, whatever passports are issued,
whatever steps are taken, Abkhazia is part of Georgia [reference to
Russian passports issued to residents of Abkhazia].

It has been part of Georgia for the past 2,000 years, is part of
Georgia and will be part of Georgia as long as Georgia exists. The
sooner we agree with our Abkhaz brothers on co-existence within a
single federal state in which they will have the broadest rights as
a constituent part of the federal state the better for everyone. We
do not recognize any artificial enclaves created by means of issuing
passports. We are ready to take into account the rights of all Russian
citizens in Georgia, but not those of artificially created enclaves. We
think there is great potential for cooperation on this issue between
Russia and Georgia. Let’s hope that it will be so.

[Switches to Georgian] Thank you very much for your attention.

[Question; indistinct]

[Saakashvili] [The chairman of the Tbilisi-based Supreme Council of
Abkhazia Temur] Mzhavia has nothing to do with it. I expressed my
support for Mzhavia at the previous meeting.

Thank you.

[Presenter] This was a live link up with the State Chancellery,
where the Georgian president held a special briefing.