Pressure group condemns Azeri speaker’s remarks on Armenian MPs’ planned visit
Assa-Irada
9 Nov 04
Baku, 8 November: The Karabakh Liberation Organization (KLO) has made
a statement on Azerbaijani Speaker Murtuz Alasgarov’s comments about
Armenian MPs’ planned visit to Baku [to attend the NATO Parliamentary
Assembly’s Rose-Roth seminar on 26-28 November]. The KLO statement
alleges that Alasgarov is betraying Azerbaijan’s national interests
as he wants to see Armenian MPs in Baku this month.
“One of the main Armenian foreign policy goals is to make sure that
its aggression is forgotten. So, Armenia is trying to build relations
with Azerbaijan in every field. The speaker’s behaviour is making
contributions to the interests of the aggressor,” the statement reads.
In its end, the statement condemns the speaker for his attempts to
cooperate with aggressor Armenia and his desire to see the Armenian
legislators in Baku.

Azerbaijani president says peace treaty on Nagorno-Karabakh only possible
after seized territory is freed
AP Worldstream
Nov 09, 2004
Azerbaijani President Ilham Aliev said Tuesday that ethnic Armenian
forces in Nagorno-Karabakh must withdraw before a peace agreement
can be signed.
“We demand with justification that the seized territory be freed and
the occupation forces withdraw,” Aliev said during a visit to Astara,
about 315 kilometers (about 195 miles) south of the capital, Baku.
Armenian forces drove the Azerbaijani army out of Nagorno-Karabakh,
an ethnic Armenian enclave within Azerbaijan, in the 1990s and took
control of several areas outside the enclave as well. Since a 1994
cease-fire, the sides have been separated by the so-called “line of
control,” a demilitarized buffer zone, but occasional shooting breaks
out and each side accuses the other of mounting small incursions.
Negotiators under the auspices of the Organization for Security
and Cooperation in Europe are trying to work out an agreement on
Nagorno-Karabakh’s final status, but no visible progress has been made
in recent years and Azerbaijani President Ilham Aliev has repeatedly
raised the prospect of military action if no negotiated solution
is reached.
“It is possible to sign a peace agreement only after the occupied
land is freed,” Aliev said.
Aliev also announced that this ex-Soviet republic would boost defense
spending next year. Finance Minister Avez Alekperov said it would
increase by about 33.5 percent from the 732 billion manat (US$149
million, Aâ~B¬115 million) allocated on defense this year.
–Boundary_(ID_GjpHpI7yWVRqmnXNiEqScg)–

Karabakh leader calls for talks with Azerbaijan
Public Television of Armenia, Yerevan
8 Nov 04
[Presenter] Azerbaijan is not ready for negotiations, the Artsakh
[Nagornyy Karabakh] president [Arkadiy Gukasyan] has said in an
interview with “Aylur” programme [of Armenian Public TV]. He added
that the Karabakh side was ready to discuss any issue in any format.
Arkadiy Gukasyan described as a propaganda the Azerbaijani authorities’
clamour over visits of international organizations to Artsakh.
[Arkadiy Gukasyan, captioned] We are ready to negotiate with Azerbaijan
in any format, with and without Armenia. I must say that our position
is very constructive. We are ready to discuss with Azerbaijan any
issues, starting from the issues of the status [of Nagornyy Karabakh],
refugees and [occupied] territories. It is a different matter that
Azerbaijan is not ready today to negotiate with Karabakh and, in fact,
Azerbaijan’s current position is an ultimatum.
I consider that the world community and the co-chairmen of the OSCE
Minsk Group can draw a conclusion from these approaches and report on
Azerbaijan’s current position [at talks] today. As for discussing this
or another issue out of a package, I think that this is illogical. I
reiterate, we are ready to discuss any issues, but we consider that
these issues must be discussed in the general context.

ARMENIAN PRESIDENT APPOINTED NEW NATIONAL SECURITY SERVICE HEAD
08.11.2004 19:02
/PanARMENIAN.Net/ Today Armenian President Robert Kocharian signed
a decree on appointing Gorik Hakobian Director of National Security
Service under the Government of Armenia. As reported by the Press
Serivice of the President, the same day R. Kocharian intorduced the
newly appointed director to the Council leaders. It should be noted
that G. Hakobian has been working in the national security system
since 1970 and took various top offices there.

A1 Plus | 16:03:26 | 09-11-2004 | Social |
AYB-FE NEWS AGENCY DENIED ACCESS TO NEWS CONFERENCE
A news conference focused on the isolated case of the masterminds of
October 27 terrorist act committed in 1999 in the Armenian parliament
is to be held on Tuesday in the Armenian Prosecutor General’s Office.
However, not every journalist will given access to the event, despite
this contradicts Armenian law.
Chief of the office’s unit on public relations Gurgen Ambaryan
empowered himself to decide personally which media outlet to be given
entry and which not.
Ayb-Fe news agency correspondent was denied entry “because of lack
of space in the hall”.
Despite that, information about the news conference will be placed
on our site today.

Naira Melkumian: Let’s Pass Victorious Path Together
Azg
9 Nov 04
$12,5 Million More Needed to Strengthen Artsakh
On November 25, “Hayastan” Pan-Armenian Fund will hold a TV marathon
in Armenia, Artsakh and Diaspora. The sums accumulated through the
marathon will be assigned for the construction of “North-South”
road that is considered a key one in Artsakh. During the recent 4
years 57,2 km of the road has been constructed, while $12,5 million
are needed for the construction of the 31,5 km left. We talked with
Naira Melkumian, executive director, about the envisaged TV marathon
and the issues connected with the Fund’s activities.
– Mrs. Melkumian, are there any innovations in this year’s marathon
that can help accumulate money?
– TV marathons are being organized since 1996. We consider this
year’s marathon as not only a mere means of accumulating money, but
also a means that contributes to the communication of the Armenians
throughout the world and see the development of Armenia and Artsakh. We
also consider TV marathon as a patriotic arrangement that can unite
the nation. Millions of Armenians who love their motherland watch the
marathon. And we want to give them an opportunity to see Armenia as
it is. We aim to tell about the best sons of our nation during the TV
marathon. We have already unfolded large-scale propaganda that includes
some stories about Armenian philanthropist. We called the program
“Golden Book” and Nerses Catholicos’ life opens this series. “Never
refuse to pay your debts to your motherland,” words said by Alexander
Mantashiants, great Armenian philanthropist, became a slogan for
us. He addressed these words to the Armenian businessmen long ago.
– After being appointed an executive director, you have visited
a number of Armenian communities. What do you expect from this
year’s marathon?
– We hope that we will manage to gather sufficient money to complete
the construction of this road. We need $12,5 million more for the
construction of “North-South” road. We hope that our philanthropists
will be more active, they are always generous. But there is one issue
that they put forward in front of our nation: they are ready to hand
out huge sums for Armenia and the developments of the recent years
testify to that. But they want each Armenian to participate in these
activities. The activities of “Hayastan” Pan-Armenian Fund are based on
the idea that each Armenian should contribute to the strengthening of
his motherland. One may give millions of dollars, some other – just a
dollar. It is very important for the establishment of the fund. This
fund contributes to the maintenance of the state, of Artsakh and
it is not accidental that we direct our main activities to Artsakh
during the recent years. Artsakh is the part of our homeland that
receives no international aid and which is considered a risky zone for
investments. But we see that our efforts are not in vain, Artsakh is
developing. If each of us understands that in order to hold Artsakh in
our hands we need to develop it economically. In that case we can say
that Artsakh is an inseparable part of Armenia and the Armenian nation.
– We are through with the 50 per cent of road construction. What did
this road give Artsakh from the economic viewpoint?
– Roads and telecommunications are the guarantee for every state’s
development. The road indeed has great impact on Artsakh’s development.
There is a new hotel at the road section leading to Gandzasar. Drmbon
mine is already operating. This road will secure Martakert region’s
development. Besides being an agricultural region Martakert has
industrial potential. Plants of agricultural good processing spring
up at the paved sections of the road. There were 70 per cent more
tourists visiting Artsakh this year. The spheres of agriculture and
tourism are directly connected with roads. Artsakh should not lag
behind Armenia because if we want more people to settle there then we
should create conditions where people will feel as real citizens. The
Fund has created 1000 work places this year.
– Previous marathons showed that the Russian-Armenians stood aloof
of the money accumulation. What will you do this year to include
Russian-Armenians in the marathon?
– Firstly, Russia’s great Armenian community has to be objectively
evaluated. There are lot of wealthy Armenians there. But we should not
forget that this is a young community and that it has close ties with
Armenia. Russian-Armenians are rather generous at handing money out
and we should not try to drag more money out. I think the numbers are
not that important in this case. We must take into consideration that
Armenians invest in Russia and help their families here in Armenia.
– Travelers often share their good impressions of Stepanakert. But
Shushi leaves a sad impression on visitors. Do you have projects for
rebuilding the town?
– Shushi’s reconstruction is a great challenge that Armenians
should take. As soon as we are able to say that there is enough
money for the road, we may turn to Artsakh regions. I think Shushi
will be a priority in that case. The Board of the Trustees takes
our projects of strategic importance into consideration and I hope
that we’ll look forward to new programs from May. We are already
carrying out few projects in Shushi. There are donors who have started
reconstruction works. Shushi’s reconstruction has a personal meaning
for me. I adore Shushi and think that it should become a cultural
center for the Armenian nation. Shushi and Gyumri played a huge role
in the cultural life of Armenians and they both should gain their
former role in our lives.
By Tatoul Hakobian

PRESS RELEASE
November 5, 2004
Embassy of the Republic of Armenia
2225 R Street, NW, Washington, DC, 20008
Tel: 202-319-1976, x. 348; Fax: 202-319-2982
Email: [email protected]; Web:
Pan-Armenian Games World Committee Solicits Information from Armenian
Communities
The World Committee of the Pan-Armenian Games has requested that the
Armenian communities preparing to send teams for the 4th Pan-Armenian
Games to submit information on the sports categories in which they
would like and are able to participate.
In view of the fact that at least two new kinds of sports are being
added to the Program of every Pan-Armenian Games, the World Committee
has so far received suggestions that boxing, wrestling, horse-race
and fencing be included in the Program of the 4th Pan-Armenian
Games. Please note that only Olympic kinds of sports can be included
into the Program of the Pan-Armenian Games.
For information and detailed inquiries, please contact the Secretary
General of the World Committee, Armen Grigoryan, at Government House 2,
Yerevan, 375010, Armenia, or by telephone/fax: (+374-1) 526802.
Attached is the press release on the results of the 10th session of
the General Assembly of the World Committee of the Pan-Armenian Games,
submitted by the WCPAG.
******************************
WORLD COMMITTEE OF THE PAN-ARMENIAN GAMES (WCPAG)
Results of the 10th session of the General Assembly
(Yerevan, October 3, 2004)
The 10th session of the General Assembly of the WCPAG was held on
October 3, 2004, in Ararat Hotel, Yerevan. More than 30 members of the
WCPAG and PAG City Committees (Commissions) from over 20 cities of the
world participated in the session. Vartan Oskanian, the President of
the WCPAG (Yerevan), opened the session and greeted the participants
of the General Assembly.
After the adoption of the Agenda the WCPAG President Vartan Oskanian
presented his two-year report, noting the problems of the World Committee.
The Secretary General Armen Grigoryan (Yerevan) also greeted the
participants, presented his report, in which he mentioned the drawbacks that
took place during the Third Pan-Armenian Games and stated that new kinds of
sports should be included into the program of the Games. The participants of
the General Assembly agreed that new kinds of sports should be added to the
program and it was decided that it would be better if participants of the
Games would define the kinds of sports themselves. In this regard a letter
will be sent to the PAG City Committees (Commissions), so that they mention
all kinds of sports the Armenian Community of their city wishes and is able
to participate in. Among suggested kinds of sports were boxing, wrestling,
horse-race and fencing.
The president of the Auditing Committee of the WCPAG Berdj Halajian
(Alexandria) presented the report of the financial activity of the World
Committee. He noted that not all City Committees (Commissions) of the
Pan-Armenian Games pay their membership fees in time and that the WCPAG
needs to find new sources of financing. In this regards President V.Oskanian
charged the members of the WCPAG to follow that City Committees
(Commissions) of the Pan-Armenian Games of their regions fulfill their
financial obligations in the dates prescribed by the Charter. The president
also noted the necessity of finding new sources of financing and informed
that in case of success, the budget of the WCPAG will be included into the
state budget of the RA beginning from 2005. The Vice-President of the WCPAG
Roland Sharoyan (Yerevan) presented the new edition of the Charter of the
World Committee which was unanimously adopted by the participants of the
General Assembly.
The issue of the changing the logo of the WCPAG was also discussed at the
meeting. The participants discussed new variants of the logo, but new ideas
were born and it was decided that all those who wish will send their
variants in 15 days and the Vice-president R.Sharoyan and the Secretary
General A.Grigoryan, authorized by the President, will follow the process of
choosing new logo. It was repeatedly noted that many cities that have large
Armenian communities do not have City Committees (Commissions) of the
Pan-Armenian Games and that corresponding measures should be taken.
Organizational issues of the First Pan-Armenian Basketball Championship and
the First World Pan-Armenian Sports Congress were discussed. The
participants of the General Assembly decided that the Sports Congress will
take place on August 20, 2005 and the Opening ceremony of the basketball
championship will take place in the evening of August 21, 2005. The deadline
for the preliminary application forms is January 30, 2005, and the deadline
for the team application forms – April 30. The representatives of Vanadzor
and Stepanakert suggested that some of the competitions take place in their
cities and expressed their readiness to accept the participants and provide
them with everything they need. In this regard Mr. Oskanian said that these
issues can have a more detailed discussion after the appropriate
examination.
The Vice-President R.Sharoyan presented the new order of paying membership
fees elaborated together with the Auditing Commission of the WCPAG. The new
order runs as follows: “Participant-cities are obliged to cover all expenses
connected with the banking transfer and to clearly mention the name of the
city and the date of the transfer.”
One of the last points of the Agenda were the elections of the President,
three Vice-presidents, Secretary General, members of the Executive and the
Auditing Committee. All these persons were unanimously elected. Two new
members were elected into the World Committee – Andre Kisajikian (San Paulo)
and Zohrab Malek (Roma). The Vice-President Stepan Derbedrossian (Beirut)
informed the participants that Harout Haroutyunyan (Yerevan) is appointed
the representative of HOMENETMEN in the WCPAG instead of Harout Cezar
Chekijian (Beirut). At the end V.Oskanian thanked the participants of the
General Assembly for cooperation and fruitful work.
The same day the participants of the General Assembly watched “Anush” opera
at the Yerevan State Theatre of Opera and Ballet. The next day the
participants of the General Assembly of the WCPAG met with the Prime
Minister of the Republic of Armenia, Andranik Margarian. During the meeting
the Prime-minister noted the importance of the work of the WCPAG in the
sphere of strengthening Armenia-Diaspora relations and expressed hope that
the work of the World Committee will continue to be successful. The Prime
Minister also promised to assist in the process of finding place for the
House of the World Committee of the Pan-Armenian Games.

ARMENIA THIS WEEK
Monday, November 8, 2004
NATO HEAD SEES GROWING PARTNERSHIP WITH ARMENIA
NATO Secretary General Jaap de Hoop Scheffer was in Armenia last week for
talks with Armenia’s President Robert Kocharian and other officials. De Hoop
Scheffer’s visit comes following a recent appointment of a NATO envoy for
the Caucasus and Central Asia. While in Yerevan, De Hoop Scheffer noted that
“the relationship between Armenia and NATO is developing very well indeed,”
pointing in particular to Armenia’s decision to launch an Individual
Partnership Action Plan (IPAP), a most extensive NATO cooperation program
short of membership, and Armenia’s role in Kosovo peacekeeping. Kocharian,
in turn, expressed a desire to be more actively involved in NATO programs.
Also last week, the NATO Secretary General urged Azerbaijan “to turn a page”
in relations with Armenia amid continuing Azeri threats over the unresolved
Karabakh conflict. Two months ago, NATO commanders were forced to cancel
peacekeeping exercises, due to take place in Baku, over its last-moment
refusal to allow Armenian participants to enter the country. Armenian MPs
are due to attend a seminar organized in Baku later this month by the NATO
Parliamentary Assembly, and radical groups linked to the Azeri government
have already expressed their opposition. In an interview last week, U.S.
Ambassador to Azerbaijan Reno Harnish recalled that in accordance to NATO
charter all partners are welcome to Alliance events and that Baku should
make a firm decision in that regard. (Sources: Armenia This Week 7-12, 9-13;
AzerNews 11-4; Haykakan Zhamanak 11-4; Zerkalo 11-4; AFP 11-5; Arminfo 11-5;
RFE/RL Arm. Report 11-5)
ARMENIA’S ECONOMY GROWING DESPITE SHORTFALL IN LEADING INDUSTRY
Armenia’s economy continues to grow robustly, despite a 25 percent fall in
diamond processing over the period, the country’s flagship industry in
recent years. In a report covering the first three quarters of 2004, the
National Statistics Service reported that the overall Gross Domestic Product
(GDP), the main economic indicator, has grown by over 10 percent.
Even though Armenia’s economy is estimated to be close to recovery from the
post-Soviet slump, few Armenians appear to be satisfied. A recent poll of
nine countries by ROMIR Monitoring, one of Russia’s leading public opinion
agencies, found that only eight percent of Armenians gave a positive
assessment to the state of the country’s economy, just ahead of Ukraine (6
percent) and Bulgaria (4), but behind Kazakhstan (32) and Moldova (22).
Last week Armenia’s government unveiled a draft budget for 2005 that calls
for a 30 percent increase in social spending and overall government spending
is due to increase by 18 percent to total $702 million. Deputy Finance
Minister Pavel Safarian anticipated continued growth in revenue based on
estimated eight percent GDP growth and improvements in tax collection next
year. Social Affairs Minister Aghvan Vartanian argued recently that 300,000
Armenians underreport their incomes and 130,000 others have jobs, but are
not officially registered at all.
Armenia is also set to receive additional low-interest loans from
international financial institutions to cover budget deficits. The World
Bank’s South Caucasus Director Donna Dowsett-Coirolo confirmed that
additional funds would be forthcoming noting that “independent evaluators
overall found that Armenia was one of the best users of [World Bank] credit
resources.”
Official reports also indicate continued stabilization of Armenia’s
population, which declined significantly throughout the 1990s. According to
this data, Armenia’s population grew slightly year-on-year to over 3.2
million. Real estate prices continued to skyrocket in Yerevan (33 percent)
and grow significantly in smaller towns (11 percent).
In January-September 2004, Armenia saw its exports growing by 1.3 percent to
$511 million and imports by 4 percent to $975 million. Dependence on outside
supplies of energy and fuel continued to keep the trade deficit large. The
European Union (EU) countries remained Armenia’s top trade partners –
accounting for 37 percent of the total turnover. The list of Armenia’s top
trading partners continued to be topped by Belgium (17 percent of all
exports and 9 percent of imports), Israel (12 and 8), Russia (11 and 13),
and the United States (10 and 8).
Armenia’s trade with Russia continued to decline, making up just over $152
million in the first three quarters of 2004. A decline in Armenian purchases
of Russian rough diamonds, modernization at Armenia’s Russian-owned aluminum
processing plant and a nearly two-month closure of the Russian-Georgian land
border largely accounted for the decline. Armenia currently has the smallest
trade turnover with Russia of all former Soviet republics. Over the same
period, Russia’s trade with neighboring Georgia and Azerbaijan amounted to
$224 and $475 million respectively. (Sources: Armenia This Week 8-2, 9-27;
RFE/RL Armenia Report 10-15, 29; Arminfo 10-20, 30, 11-1, 2, 5)
A WEEKLY NEWSLETTER PUBLISHED BY THE ARMENIAN ASSEMBLY OF AMERICA
122 C Street, N.W., Suite 350, Washington, D.C. 20001 (202) 393-3434 FAX
(202) 638-4904
E-Mail [email protected] WEB
[AAA Note: For your information below is a letter from the Co-Chairs of the
Congressional Caucus on Armenian issues.]
Congress of the United States
Washington, DC 20515
November 7, 2004
The Honorable Colin Powell
Secretary of State
Department of State
2201 C Street, NW
Washington, D.C. 20520-0001
Dear Mr. Secretary:
We are writing to share with you our alarm over the prospect that
Azerbaijan’s continued efforts at the United Nations to manipulate the
Nagorno Karabakh conflict will, if unchecked, undermine our clearly
articulated national interest in the stability of the Caucasus.
We refer, of course, to Azerbaijan’s recent introduction of an ill-advised
resolution on the “situation in the occupied territories of Azerbaijan.”
This intentionally disruptive resolution threatens the principles and
procedures of the Organization for Security and Co-operation in Europe
(OSCE) as well as the Minsk Group mediation effort, co-chaired by the United
States, France and Russia, to resolve the Karabakh conflict. Azerbaijan’s
proposal represents a hostile declaration against the entire peace process,
aimed only at fostering increased divisiveness. Its consideration can only
set back the cause of peace.
We are deeply concerned that the OSCE Minsk process cannot survive
Azerbaijan’s destabilizing tactics. Continued tampering with this process
will inevitably produce a chain reaction resulting in its demise. We cannot
afford to allow Azerbaijan to continue to disrupt the work of the OSCE,
which, as you know, has been recognized by the UN itself as the lead arbiter
in this conflict.
We value the special role the United States plays as an honest broker in the
Nagorno Karabakh peace process. In this capacity, given our desire to keep
the parties talking and moving forward, we need to act forcefully against
destabilizing steps that will unravel the peace process. Our interests are
best served by the continuation of dialogue on the outstanding issues
related to Nagorno Karabakh within the OSCE framework, not by the
fragmentation of this orderly process.
Efforts to reinforce stability and reduce the risk of conflict are in the
best interests of the U.S. and the South Caucasus region. To this end, we
urge that the United States forcefully renounce this proposal, secure its
retraction, and impress upon the Azerbaijani government that it should drop
such counter-productive tactics in favor of a serious and lasting commitment
to the OSCE Minsk Group process.
Thank you for your consideration of our views. We stand ready, of course,
to assist you in addressing this matter in the interest of the American
people.
Sincerely,
/s/ /s/
Joe Knollenberg Frank
Pallone, Jr.
Member of Congress Member of
Congress

Armenian National Committee of America
888 17th St., NW, Suite 904
Washington, DC 20006
Tel: (202) 775-1918
Fax: (202) 775-5648
E-mail: [email protected]
Internet:
PRESS RELEASE
FOR IMMEDIATE RELEASE
November 8, 2004
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918
CONGRESSIONAL ARMENIAN CAUCUS CO-CHAIRS OPPOSE AZERBAIJANI EFFORT
AT UN TO DISRUPT KARABAGH PEACE PROCESS
— Urge Secretary Powell to “Renounce” and “Secure Retraction” of
Proposed UN Initiative
WASHINGTON, DC — Congressional Armenian Caucus Co-Chairs Frank
Pallone (D-NJ) and Joe Knollenberg (R-MI) have urged Secretary of
State Colin Powell to take decisive action against a UN
resolution, introduced by Azerbaijan, which could seriously
undermine the Nagorno Karabagh peace process, reported the Armenian
National Committee of America (ANCA).
In a November 7th letter to the Secretary of State, the Caucus Co-
Chairs expressed concern about the “ill-advised” resolution on the
“situation in the occupied territories of Azerbaijan,” stating
that:
“This intentionally disruptive resolution threatens the principles
and procedures of the Organization for Security and Cooperation in
Europe (OSCE) as well as the Minsk group mediation effort, co-
chaired by the United States, France and Russia, to resolve the
Karabakh conflict.”
The letter from the Armenian Caucus Co-Chairs goes on to state
that: “Efforts to reinforce stability and reduce the risk of
conflict are in the best interests of the U.S. and the South
Caucasus region. To this end, we urge that the United States
forcefully renounce this proposal, secure its retraction, and
impress upon the Azerbaijani government that it should drop such
counter-productive tactics in favor of a serious and lasting
commitment to the OSCE Minsk Group process.”
“We want to thank the Co-Chairmen of the Armenian Issues Caucus –
Frank Pallone and Joe Knollenberg – from drawing the urgent
attention of Secretary Powell to the threat that Azerbaijan’s
efforts at the United Nations to manipulate the Nagorno Karabagh
issue pose to U.S. interests in the stability of the Caucasus
region,” said ANCA Executive Director Aram Hamparian. “We share
the concerns they raised in their letter and are also urging the
State Department to take decision action against destructive
measures, such as this, that only foster greater divisiveness and
set back the cause of peace in this important part of the world.”
On October 14th, the Azerbaijani Ambassador to the UN, Yashar
Aliyev, submitted a letter requesting that a resolution, which
would restrict the repatriation of Armenians to their homes in
Nagorno Karabagh, be included on UN General Assembly agenda.
Prior to its consideration by the international panel, Rep. Frank
Pallone (D-NJ) urged U.S. Ambassador to the UN John Danforth to
oppose the measure, citing the negative ramifications on the
Karabagh Peace process. The OSCE Minsk Group Cochairs issued a
statement on October 27th, noting that “introducing this issue to
the United Nations General Assembly may have two negative
consequences. In light of the situation we have outlined, this
will be detrimental to the efforts to find a just and lasting
settlement of the issue, particularly at this time. Secondly, it
will fail to achieve consensus, a situation that will not be
helpful. We advise avoiding this situation.” Despite these
efforts, on October 29th, the UN General Assembly voted in support
of the request during their regular session.
The complete text of the Knollenberg/Pallone letter to Secretary
Powell is provided below:
November 7, 2004
The Honorable Colin Powell
Secretary of State
Department of State
2201 C Street, NW
Washington, D.C. 20520-0001
Dear Mr. Secretary:
We are writing to share with you our alarm over the prospect that
Azerbaijan’s continued efforts at the United Nations to manipulate
the Nagorno Karabakh conflict will, if unchecked, undermine our
clearly articulated national interest in the stability of the
Caucasus.
We refer, of course, to Azerbaijan’s recent introduction of an ill-
advised resolution on the “situation in the occupied territories of
Azerbaijan.” This intentionally disruptive resolution threatens
the principles and procedures of the Organization for Security and
Cooperation in Europe (OSCE) as well as the Minsk group mediation
effort, co-chaired by the United States, France and Russia, to
resolve the Karabakh conflict. Azerbaijan’s proposal represents a
hostile declaration against the entire peace process, aimed only at
fostering increased divisiveness. Its consideration can only set
back the cause of peace.
We are deeply concerned that the OSCE Minsk process cannot survive
Azerbaijan’s destabilizing tactics. Continued tampering with this
process will inevitably produce a chain reaction resulting in its
demise. We cannot afford to allow Azerbaijan to continue to
disrupt the work of the OSCE, which, as you know, has been
recognized by the UN itself as the lead arbiter in this conflict.
We value the vital role the United States plays as an honest broker
in the Nagorno Karabakh peace process. In this capacity, given our
commitment to keep the parties talking and moving forward, it is
necessary for the United States to act forcefully against
destabilizing steps that will unravel the peace process. Our
interests are best served by the continuation of dialogue on the
outstanding issues related to Nagorno Karabakh within the OSCE
framework, not by the fragmentation of this orderly process.
Efforts to reinforce stability and reduce the risk of conflict are
in the best interests of the U.S. and the South Caucasus region.
To this end, we urge that the United States forcefully renounce
this proposal, secure its retraction, and impress upon the
Azerbaijani government that it should drop such counter-productive
tactics in favor of a serious and lasting commitment to the OSCE
Minsk Group process.
Thank you for your consideration of our views. We stand ready, of
course, to assist you in addressing this matter in the interest of
the American people.
Sincerely,
Joe Knollenberg Frank Pallone, Jr.
Member of Congress Member of Congress
#####

CENN – NOVEMBER 8, 2004 DAILY DIGEST
Table of Contents:
1. Development of Local Capacities and Public Awareness for Better
Energy Governance
2. EBRD, SOCAR Agree Shah Deniz Credit Terms
3. Rural-tourism to Promote Georgia’s Provinces
4. Armenian Company Leads Talks on Chemical Giant’s Future
5. USAID Allocates $600,000 For Implementation of Heating Program at 15
Schools in Armenia
6. Contest in Armenia to Honor Special Reports on Georgia
7. Noubarashen School #11 To Receive Orchard from HSBC Bank Armenia and
Armenia Tree Project
8. Personal Business Poisoning the Society
9. Those Having Dollars Can Cut Trees
10. A Bio-Energy Superpower
1. DEVELOPMENT OF LOCAL CAPACITIES AND PUBLIC AWARENESS FOR BETTER
ENERGY GOVERNANCE
>>From November 2003 the Project ”Development of Local Capacities and
Public Awareness for Better Energy Governance”, is being implemented by
NGO Coalition led by Caucasus Environmental NGO Network (CENN), along
with partner NGOs – Green Alternative and Eco-Vision. The project is
implemented with the financial assistance of the United States Agency
for International Development (USAID).
The project aims to increase the transparency and efficiency of
performance and consumption in the energy sector, through community
mobilization, confidence building, increasing public awareness and
citizens’ responsibilities over the resources’ use, creation of ESCAs
(Energy Services Consumers’ Association), increasing public
participation in the decision-making processes at all levels and
launching a nation-wide constructive dialog between all stakeholders on
energy sector governance.
Painting actions in schools
In October 12-15, 2004 in the framework of this project were conducted
Painting Actions in six schools of the six pilot districts in which the
project team is working. About 200 pupils participated in this action
the age of the participants of the paining action was from 10 to 16. The
subject of the action was: “Winter in our Houses”. The exhibition of the
paintings will take place in November 19, 2004 in “Children’s Gallery”
in Tbilisi.
The ESCA leaders with the support of the project team conducted the
action. The action had the following objectives: i) to give confidence
to ECSA leaders and involving them in education campaign; ii) to
advertise the project idea via the pens, t-shirts, booklets distributed
after the action, also via the exhibition; iii) to get the idea how the
children are looking on energy crises.
As the result, more than 300 pictures were painted. The view of children
on winter and energy was quite interesting and different among the
pupils of different ages. The paintings will be soon available on the
following address:
Training of ESCA’s leaders
In September 23-24, 2004 in the framework of this project was held the
training for the ESCA’s leaders. The training had two key objectives:
ž Providing the information on Georgian power sector that included: i)
Technical and institutional structure of the sector; ii) Rights and
obligations of the institutions involved in the power sector; iii)
Service conditions and legal framework for Telasi and customers;
ž Elaboration of the operational plans for ESCA. Setting the targets and
defining the ways for the problems solution.
The representatives of ESCA’s, the whole project team and the legal
expert as well as the representatives of the Liberty Institute
participated in the training. During the training were distributed the
Electricity Services Consumers’ Guide for Tbilisi that was developed in
the framework of this project and the handouts of the presentations on
Georgian power sector and electricity service conditions in Tbilisi.
The first day of the training was entirely devoted to the first
objective of the training also during the first day was held the
presentation of the Electricity Services Consumers’ Guide for Tbilisi.
The second day of the training was dedicated to the discussion of the
problems existing in these six districts and the possible ways for their
solution. In addition, the discussion was followed by the elaboration of
ESCA’ work plans. The second day was facilitated by the professional
trainers from the Center for Training and Consultation (CTC).
The final stage of the workshop was identifying the problems, which are
common for all districts. These problems were discussed during the
roundtable conducted in October 29, 2004 with the participation of all
the stakeholders in the power sector. (In the next issues of our
publications we will inform our audience about this roundtable.)
The following important and common problems had been identified:
ž Old debts
ž Flat rates
ž Theft
ž The bad communication between Telasi and consumers
ž Seasonal tariffs
ž Installation of new electric meters
At the end of training was conducted the evaluation of the training.
We will provide you the information on the project on the regularly
bases.
Prepared By CENN
Nino Tevzadze
2. EBRD, SOCAR AGREE SHAH DENIZ CREDIT TERMS
Source :Interfax, November 5, 2004
The State Oil Company of the Azerbaijani Republic (SOCAR) and the
European Bank for Reconstruction and Development have initialed all
documents for a credit of $170 million to finance the SOCAR share in the
Shah-Deniz project, SOCAR President Natik Aliyev said.
“We agreed all the documents for the credit. The credit agreement will
be signed in December, in London,” Aliyev said after talks with bank
representatives.
Aliyev said earlier that if necessary the EBRD might provide a credit
for more than $170 million.
Of this total, $110 will be used to finance the SOCAR share in the
development of the Shah Deniz field, and $60 million – on building the
Baku-Tbilisi-Erzurum pipeline.
Shah-Deniz holds an estimated 625 billion cubic meters of gas and 101
million tonnes of condensate. Stage-1 development includes the
production of 178 billion cubic meters of gas and 34 million tonnes of
condensate. During peak production under Stage-1 the field will produce
8.4 billion cubic meters of gas and 2 million tonnes of condensate a
year. Gas will be produced from 15 wells at the TPG-500 platform at sea
depths of 105 meters. Production will increase to 16 billion cubic
meters a year in the later stages of the project.
Participants in the Shah Deniz project include SOCAR – 10%, BP – 25.5%,
Statoil – 25.5%, TotalFinaElf – 10%, LukAgip – 10% OIEC (Iran) – 10% and
TPAO (Turkey) – 9%.
3. RURAL-TOURISM TO PROMOTE GEORGIA’S PROVINCES
Source: Messenger, November 5, 2004
Georgian economists believe that the country has excellent prospects in
the sphere of eco-tourism, particularly wine tourism and could generate
income for both the government and farmers.
According to official statistics there are approximately 400, 000
farmers in Georgia, but despite the country’s potential in agriculture,
farmers face numerous problems, such as difficulties in cultivating
their lands that result from the lack of technology, fertilizers and
infrastructure necessary to transport those products. As a result,
newspaper Khvalindeli Dge reports, cash incomes in villages are very low
and many farmers are in effect subsistence farmers, consuming most of
their products themselves.
As a result, it has become necessary for small farmers to grow a little
of everything, rather than to concrete on particular crops as farmers
growing crops for sale do. In the wine industry, for example, in many
villages that previously grew just grapes, farmers today are forced to
plant wheat and other agricultural products because they can no longer
rely on selling grapes to bring in the money needed to buy what they
need. This has inevitably damaged both the county’s economy and
eco-system.
In this particular situation, the development of eco-tourism would
provide a boost for villages, enabling farmers to increase their money
incomes.
The idea of eco-tourism that rests on the premise that many people dream
of rest and relaxation in peaceful villages with dining tables groaning
with natural food products was first developed in France in the 1970s.
Italy and Spain were quick to follow, with special legislation
elaborated to develop tourism, and today Georgia also hopes to offer
“peasants hospitality” and to welcome foreign tourists to Georgian
villages.
24 Saati reports that specific theme holidays have been suggested,
including experiencing the wine vintage in Kakheti, making of wool
products in Tusheti and singing Georgian fold songs ling the
Kriamanchuli in Guria, although the most popular may well be related to
the wine industry, which has a long history. Wine tourism aims to
attract foreigners to the places where the grapes are grown and the
wines made. There are many of these in Georgia but for wine tourism to
take off, the government needs to actively support its development, as
do businessmen who are interested in wine.
4. ARMENIAN COMPANY LEADS TALKS ON CHEMICAL GIANT’S FUTURE
Source: Mediamax news agency, November 5, 2004
The Armenian company Flash will from now on conduct talks with Russian
investors on the sale of chemical giant Nairit, Armenian Central Bank
Chairman Tigran Sarkisyan told a briefing in Yerevan today.
Tigran Sarkisyan recalled that Nairit’s shares belong 100 per cent to
Haykapbank [Armenian communications bank] and the Flash Company is
carrying out the programme to revive the bank, Mediamax reports. The
programme to revive the bank is supervised by the IMF, which is
demanding that the process be finished by the end of this year.
Mediamax news agency recalls that on 16 April this year an agreement was
signed at the Armenian Central Bank on the sale of 100 per cent of
Haykapbank’s shares to Russia’s Volgaburmash holding company. Addressing
a briefing after the signing of the agreement, Volgaburmash
representative Mikhail Zavertyayev said that the restoration of Nairit’s
position on the Russian synthetic rubber market was the priority for the
holding company. For reasons of commercial confidentiality Zavertyayev
refused to disclose the cost of the deal to acquire Nairit’s shares. He
said that Volgaburmash had worked out a draft project on the
reconstruction of the enterprise, aimed at resuming the production of bu
tadiene at Nairit. Mikhail Zavertyayev said that since 2003 Volgaburmash
had invested 3.5m dollars in Nairit.
Tigran Sarkisyan said today that the Russian holding company had
demanded that the revival programme for Haykapbank be prolonged for four
months, but, taking into account the commitments before the IMF, the
Armenian side had not given its consent to this and had “decided to
implement the revival programme with another investor, the Armenian
Flash company”.
The Central Bank chairman said that Flash had invested more than 1m
dollars in the bank and had finished the revival process. Tigran
Sarkisyan said that Flash was now conducting talks directly with the
Russian side on Nairit’s fate.
He said that for four months the Russian side would be studying Nairit’s
technical possibilities and would make a corresponding decision. Tigran
Sarkisyan said that the 100 per cent of shares in Nairit were reflected
in Haykapbank’s balance sheet at the nominal price of 14.2m dollars. The
bank has to realize these assets in the next six months, according to
current Armenian legislation.
5. USAID ALLOCATES $600,000 FOR IMPLEMENTATION OF HEATING PROGRAM AT 15
SCHOOLS IN ARMENIA
Source: Arminfo, November 5, 2004
USAID has allocated $600,000 for implementation of a program on heating
at 15 schools in Armenia, Head of USAID Office in Armenia Robin Phillips
said during his meeting with Armenian Town Building Minister Aram
Haroutiunyan, Friday.
The press-service of the Town Building Ministry told ARMINFO that the
sides discussed the program’s implemented at 15 republican schools,
which are currently constructed and repaired on the state budgetary
funds for 2004. In conformity with the agreement reached in the course
of the meeting, within the c oming days specialists of the ministry and
USAID intend to discuss the list of schools to be included in the
heating program, to approve the schedule of the works. A relevant
document will be signed in the middle of November, 2004. Phill ips
expressed readiness to organize heating at another 15 schools in Armenia
in case of successful implementation of the given program.
6. CONTEST IN ARMENIA TO HONOR SPECIAL REPORTS ON GEORGIA
Source: International Journalist’s Network, November 5, 2004
Television stations and companies in Armenia can enter a competition
aimed at producing a series of special reports about Georgia.
Internews-Armenia is organizing the competition, sponsored by the U.S.
Agency for International Development. The application deadline is
November 20, 2004.
The contest aims to offer the public better information on the social
and political processes in Georgia. Internews encourages a creative
approach to the reports, which could focus on the economy, culture,
environment, politics, social problems or international relations, among
other topics.
Candidates should submit a completed application form; two
Russian-language copies of a detailed script proposal; the production
schedule, to be completed by January 15; the curriculum vitae of the
director/producer and main participants; detailed production expenses; a
videotape of the applicant’s past work; and a letter from the TV company
agreeing to air the reports.
Internews will select the proposal based on the best likelihood of
carrying out the project and the professionalism of the bid, among other
criteria.
Detailed requirements and forms are available at:
For more information, contact Internews-Armenia
E-mail: [email protected],
Telephone +374 1 583 620
7. NOUBARASHEN SCHOOL #11 TO RECEIVE ORCHARD FROM HSBC BANK ARMENIA AND
ARMENIA TREE PROJECT
65 Main Sreet, Watertown, MA 02472
Tel: 617-926-TREE (8733)
email: [email protected]
2004-11-06
ARMENIA TREE PROJECT
YEREVAN–.This Sunday, November 7, 2004, the children of the Noubarashen
School #11 for the mentally disabled had the opportunity to beautify
their school grounds with the help of their friends from HSBC bank and
the Armenia Tree Project. This is planting initiated by HSBC Bank as a
part of their community outreach. A total of one hundred trees,
including 30 apricot, 5 quince, 30 apple, 20 peach, and 15 cherry trees
will be planted at the event, scheduled to begin at 11.00 a.m. The
Republic of Armenia’s Ministry of Science and Education oversees the
Noubarashen School #11, a school that provides accommodations and
nutrition for 125 students, 110 of whom are permanent residents.
Over the past five years, HSBC and the Armenia Tree Project have
successfully collaborated on similar tree planting projects. Together,
they provided the Noragyugh Rehabilitation Center with a total of four
hundred trees in 2000, 2001 and 2002 years. To date, these seedlings
are thriving, with an above average survival rate of 72%. Since its
first Armenian branch opened in March of 1996, the HSBC group has shown
support for both education and the environment.
Sunday’s event at the Noubarashen School #11 served as a forum for the
integration of these two ideals.
HSBC Bank Armenia:
The HSBC Group opened for business in March 1996 as Midland Bank cjsc
and was renamed to HSBC Bank Armenia cjsc in 1999, as a part of global
re-branding exercise. Nowadays HSBC has two full service branches
operating in Yerevan. Now HSBC is Armenia’s leading bank by market share
and profitability. The Group also maintains branches in other CIS
countries including Russia and Kazakhstan. The bank offers a full range
of products and services to both commercial and personal customers
resident in Armenia and overseas. Since its establishment, HSBC has
focused its community support on areas of education and theenvironment.
The Bank has been involved in sponsoring the Noubarashen orphanage,
Vardashen special educational centre, Armenian Society for the
preservation of Historical Monuments, Armenian Philharmonic Orchestra,
Isabel centre of the Talented Children’s Concert, a Health walk in
coordination with the Armenian Mammography centre, the children’s
international play ground, as well as a tree planting project in the
Children’s Rehabilitation Centre. HSBC staff are true community citizens
and give fully, and freely, of their time and energy in supporting the
many worthwhile causes in Armenia that need our support in both
financial and humane ways.
For information please contact:
HSBC Bank Armenia cjsc
9 V. Sarkissian Street, Yerevan, Armenia
Tel. 58 70 88
HSBC Bank Armenia cjsc
3 Komitas Avenue, Yerevan, Armenia
Tel. 22 25 96, 22 87 57
E-mail: [email protected]
Web:
Armenia Tree Project (ATP):
Armenia Tree Project was founded in 1994 during Armenia’s darkest and
coldest years with the vision of securing Armenia’s future by protecting
Armenia’s environment. Funded by contributions from diasporan
Armenians, ATP has by now planted and rejuvenated 538,000 trees at more
than 450 sites ranging from Gyumri to Goris.
[email protected]
Web:
8. PERSONAL BUSINESS POISONING THE SOCIETY
Source: A1 Plus, November 8, 2004
Yerevan Municipality Monitoring Group for Conservancy studied activity
of 35 managing subjects in Yerevan and fixed: there are no sewer outlet
networks in 26 of them. As a result the industrial waste of the
establishments – chemical, food and sewerage, are thrown into Getar and
Hrazdan River. 7 out of 26 are located in Hrazdan Canyon.
Romik Kosemyan, head of Municipality Department on Conservancy, has
informed today that the owners of the subjects have been fined.
According to Kosemyan, Municipality has worked out a project, under
which all the managing subjects running in Yerevan will be brought to
the legislative field beginning from 2005.
9. THOSE HAVING DOLLARS CAN CUT TREES
Source: A1 Plus, November 8, 2004
Irrigation line 135 kilometers at length was drawn for preservation of
the green zones and protection of them from fires. Romik Kosemyan, head
of Municipality Department on Conservancy, assures the action will
enable to take care of the green zone of about 600 hectares.
In case of illegal cutting of the trees registered in “The Red Book”
Municipality will apply a new price for damage compensation – $1000 for
each tree cut. For the time being the old punishment is still valid – a
fine of up to 100,000 drams in case of causing damages
10. A BIO-ENERGY SUPERPOWER
RIO DE JANEIRO, Nov 4 (Tierram Erica) – Rising oil prices and the
upcoming implementation of the Kyoto Protocol on greenhouse gases,
following the recent ratification by Russia, are accelerating the
process of turning Brazil into a world leader in ”bio-energy”.
Exports of alcohol made from sugarcane are expected to increase from 800
million litres last year to two billion litres this year — this
expansion trend continues independent of rising world oil prices.
There are many countries, like Japan, that are moving to blend ethanol
with gasoline, or increase the alcohol additives in fuel, as a means
towards curbing air pollution.
It augurs for renewable energy sources having a strong global impulse
with the implementation of the Kyoto Protocol, which sets goals for
reducing emissions of greenhouse gases, responsible for climate change.
The Russian Senate announced its ratification of the global treaty Oct.
27. Once it is enacted by the Russian president, the Kyoto Protocol will
enter into force, as it has finally achieved the required threshold of
countries: a total that produces at least 55 percent of the world’s
greenhouse gases.
In Brazil, renewable fuel is recuperating the popularity it had in the
1980s, and not just because of the lower price. There is a growing
demand for ”bi-fuel” automobiles that can use gasoline, fuel alcohol
or any mix of the two. These cars were put on the market last year.
In 1985 and 1986, alcohol-fuelled vehicles had achieved the incredible
proportion of 76 percent of all of Brazil’s car production. But supply
and price problems eroded the Proalcohol programme for fuel substitution
that had been launched during petroleum crisis of 1973.
Output of alcohol-driven cars hit bottom in 1997 — just 0.06 percent of
total car production, according to Brazil’s National Association of
Automotive Manufacturers.
Since then there has been a gradual recovery, which was particularly
notable last year, with 84,173 alcohol-fuelled cars, including the
bi-fuel vehicles, represented 4.6 of automotive production. This year
that portion is expected to be five times as big, as 253,817 such cars
were produced from January through September.
The possibility of using one fuel or another, along with the reasonable
price, contributes to public confidence in alcohol as a fuel in general.
It reduces the risk of shortages or sudden price hikes at service
stations.
In addition, all gasoline in Brazil contains 20 to 25 percent anhydrous
alcohol, which reduces petroleum dependence and pollution. And work is
beginning on manufacturing crop spraying aircraft that run on ethanol.
The subsidised development of Proalcohol cost some 40 billion dollars,
but the country has ”already recovered those expenses” and is now
seeing its fruits, including the continued development of related
technology, Osvaldo Stella Martins, an expert with the National Centre
for Biomass Research, told Tierram Erica.
The sugarcane needed to make Brazil the world leader in sugar and
alcohol production also generates enormous quantities of waste pulp, a
source of energy that feeds the electricity market as well as running
the sugar mills and distilleries.
Now the new biodiesel programme is motivating researchers and business
leaders. The government announced that it will authorise its addition to
regular diesel fuel in November, in a proportion of two percent and
increasing to five percent over the next few years.
Beyond reducing the need to import fuel and curbing environmentally
harmful emissions, the programme is intended to be socially inclusive,
generating hundreds of thousands of jobs and promoting family farming in
impoverished areas, says Science and Technology Minister Eduardo Campos.
It is also a government priority to promote production of fuel using the
castorbean (Ricinus communis) in the Brazilian northeast, the country’s
poorest region. But biodiesel made from castorbeans must be more heavily
subsidised, as it costs three times more than petroleum, said Stella, a
mechanical engineer who holds a doctorate in ecology and natural
resources.
Castor oil, the raw material for hundreds of chemical, medicinal and
cosmetic products, has great unsatisfied global demand, and it would be
more logical to promote its production as an industrial input, instead
of using it for biodiesel and burdening society with the cost of
subsidies in order to ”resolve a problem for Petrobras,” the giant
state-run oil company, he said.
The problem is that Petrobras must produce diesel without sulphur, for
environmental protection reasons, and it would be better to substitute
that lubricant with biodiesel, transferring costs to society, explained
the expert.
Studies are under way for producing biodiesel using other plant sources,
and even from the vegetable oil waste in cities, such as from food
processing and restaurant cooking.
The alternative that most excites Stella and forestry engineer Laercio
Couto, president of the National Network for Biomass Energy, is to make
use of agricultural and forestry waste.
Lumber production uses 45 percent of the tree, leaving ”incredible”
biomass sources, Couto told Tierram Erica
The lumber waste is packed into cylinders to reduce volume and humidity,
and to facilitate transport, and is exports to Europe are beginning. But
last year just 40,000 tons were sold, while the demand reaches two
million tons, the engineer added.
Brazil, with its land, sun, and water resources, is a major producer of
biomass, and the process of photosynthesis makes the South American
country an energy superpower, according to Jos Bautista Vidal, the
”father” of Proalcohol.
However, the great distances and insufficient infrastructure that make
transportation expensive continue to create obstacles in the energy
business beyond local production and use, Couto said.
–Boundary_(ID_KBFoJL8LWUW6yV0P3TkelA)–