BP Faces Problems Over Caspian Pipeline
International Oil Daily
26 July 2004
By Michael Ritchie
LONDON — BP said on Monday that it hopes to resume work on a section
of its crucial 1 million barrel per day Baku-Tbilisi-Ceyhan crude oil
pipeline on Aug. 2, after the former Soviet republic of Georgia called
for a temporary halt to construction because of environmental
concerns.
But diplomatic sources say the new government that took power in
Tbilisi last year, after ousting veteran Georgian leader Eduard
Shevardnadze in a bloodless revolution, could create more problems for
the $3 billion project.
The 1,768 kilometer pipeline is being backed by the US as a way of
exporting oil from fields in the Caspian Sea at the same time as
achieving strategic goals. It will reduce Russia’s grip on exports
from the region’s former Soviet states, will avoid routing exports
south through Iran, and will direct flows through Nato ally Turkey,
which stands to earn handsome transit fees from the traffic.
Georgia, for its part, is in line to bank $1 billion in transportation
tariffs from the line over the next 20 years.
But with at least 50% of the construction work completed on the 248 km
of pipeline that crosses its territory, the Georgian environment
ministry on Jul. 19 requested BP to stop work for two weeks on a 17
km section that crosses the Borjomi region.
“The new government [in Tbilisi] wants to look into the measures being
taken on the pipeline to make sure it is secure,” a BP spokesperson
told International Oil Daily.
But the delay could grow because the new Georgian authorities want to
bring in their own consultants to look at the safety measures that BP
has taken and review new documentation they have requested from the UK
major.
The section of line in question skirts, but does not cross, the
territory of the Borjomi national park, BP says.
Environmentalists have attacked the pipeline for threatening the
ecology of the park, which is a designated area of outstanding natural
beauty and the source of a mineral water famous through the former
Soviet Union.
BP claims it has already implemented special conditions for the
Borjomi stretch of line, such as installing extra valves to ensure
rapid shutdown in the event of a leak, and extra sensors to detect any
earth movements.
It says that work is continuing on the rest of the pipeline in
Georgia, adding that it remains on schedule to start pumping crude
from Baku in Azerbaijan to the Turkish Mediterranean port of Ceyhan
for export to world markets in the second half of 2005.
Diplomatic sources in the region say the new government in Tbilisi may
try to wring more cash out of BP and its partners to bolster Georgia’s
efforts to bring the breakaway region of South Ossetia back into the
fold.
“This is about money. They need money,” one Georgian politician told
International Oil Daily.
BP maintains that Georgian President Mikhail Saakashvili has in the
past said that he doesn’t want the pipeline project to be delayed.
But the diplomatic sources said that Saakashvili and two of his
closest political allies, including Prime Minister Zurab Zvania, have
Armenian roots and would sympathize with Armenia’s position of not
wanting to see arch-enemy Azerbaijan rake in huge oil earnings.
The sources point out that work on the pipeline was halted just days
before the visit to Tbilisi of Armenian Prime Minister Andranik
Margaryan for cooperation talks with his Georgian counterpart.
“These guys will try to do anything to delay the project,” the
Georgian politician said.
US engineering giant Bechtel is the contractor for the sections of the
line that cross Azerbaijan and Georgia, while Turkish pipeline concern
Botas is handling the Turkish end.
The line is being built by an international consortium headed by BP,
which has a stake of 30.1%, and includes Azeri state oil company Socar
(25%), Unocal (8.9%), Statoil (8.71%), Turkey’s TPAO (6.53%), Total
and Eni (both with 5%), Itochu (3.4%), ConocoPhillips and Inpex (both
with 2.5%), and Saudi-US venture Delta Hess (2.36%).

Azer Tag, Azerbaijan State Info Agency
July 26 2004
PRESIDENT’S PRESS SECRETARY HELD BRIEFING ON 2004 FIRST-HALF RESULTS
[July 26, 2004, 22:36:29]
Azerbaijan President’s press secretary Azar Gasymov held on 26 July a
briefing for journalists on the results of the work carried out in
the country during the first six month of 2004 in socio-economic,
cultural and other spheres.
He said, in particular, that since President of the Azerbaijan
Republic Mr. Ilham Aliyev assumed the presidency, the large-scale
work has been carried out to: reinforce the Azerbaijan statehood,
whose foundation had been laid by nationwide leader Heydar Aliyev,
ensure dynamic development of Azerbaijan in political,
socio-economic, cultural and other spheres, provide socio-political
stability, improvement of the population’s welfare and social
conditions of those people who have become refugee and internally
displaced persons, continue successful foreign policy, strengthen the
national army, successively assert the fair stance of Azerbaijan in
the international arena as for the country’s hardest problem – the
Armenia-Azerbaijan conflict over Nagorno-Karabakh.
The press-secretary has informed the audience on the decrees and
executive orders signed by Mr. Ilham Aliyev since taking over the
presidency in connection with social and economic development of
Azerbaijan and support of entrepreneurship, creating new job
opportunities in the country, development of financial and banking
system, further improvement of social conditions for refugees and
IDPs, as well as the President’s visits to regions and his
familiarization with newly launched enterprises and participation in
the events.
The President’s press secretary finally emphasized that social and
economic development of Azerbaijan and improvement of living
conditions for refugees and IDPs had been marked by the Head of State
as priority directions of his activity. One of the most important
issues is opening new jobs, and the work based on the tasks set by
the President of Azerbaijan in this sphere will be continued in
future, he said.

United States Army (press release)
July 26 2004
Major exercise underway in Baltic states
By Sgt. 1st Class Jeffrey S. Mullett
ALUKSNE, Latvia (Army News Service, July 26, 2004) — U.S. Soldiers
launched an international military exercise July 20 at an army base
in Eastern Latvia.
The RESCUER / MEDCEUR exercise will continue until the end of July in
Latvia, Estonia and Lithuania, three of NATO’s newest members.
`This is a U.S. European Command effort to familiarize partner
nations with multinational operations,’ said Lt. Col. Jon Dahms, the
exercise spokesman. `The three Baltic nations are hosting the
exercise, which is directed by U.S. Army Europe.
This exercise marks the first major military training event for the
Baltic States since becoming part of NATO in March, officials said.
The three nations also recently became part of the European Union,
said Col. Michael McDaniel, a Michigan National Guard officer who
leads the multi-national task force.
Troops from Germany, Poland, Romania, Moldova, Ukraine, Georgia,
Bulgaria, Armenia, Latvia, Estonia, Lithuania and Azerbajan will join
U.S. Soldiers in the 15-day exercise.
Soldiers from the 7th Army Reserve Command, headquartered in
Schwetzingen, Germany, and five other Army Reserve units are
supporting the exercise, officials said.
`This is a complex operation with a lot of moving parts,’ McDaniel
said in his address during the opening ceremony July 20.
>From the task force headquarters near Aluksne, the computer-driven
scenario will challenge the multi-national staff to react to manmade
disasters.
The exercise then leaps into real world training, with mass casualty
exercises in Lithuania and a diving operation in Estonia. Polish and
Estonian soldiers will also conduct a helicopter search and rescue
exercise near Tapa, Estonia.
In addition, U.S. Army Reserve Soldiers will also work with
Lithuanian Soldiers to renovate an orphanage in Klapeida and build a
trestle bridge to allow yearlong access for Klapeida’s rural
residents to cross a flood plain. U.S. Army Reserve troops from the
368th Engineer Battalion in New Hampshire are helping the Lithuanians
install new windows in the orphanage and renovate the dining hall.
The 330th Combat Support Hospital from Tennessee is also in Klapeida
working with medical personnel from 11 other nations respond to mass
casualty events as part of the exercise.
Capt. Ilmars Lesinskis, commander of the Latvian Navy, spoke to the
troops at the ceremony about the importance of training together.
`The common job that is based on a mutual understanding, respect and
trust significantly increases our ability to react to different
crisis situations in the future,’ Lesinskis said.
Behind him the flags of the 18 participating countries, plus the NATO
banner, caught the warm breeze. Rows of international troops stood
side-by-side Tuesday morning, as the Latvian Army band performed
ceremonial music and the national anthems of both the U.S. and
Latvia.
The base, about 120 miles east of Riga, is situated just outside the
town of Aluksne and is home to the Lativan Mobile Infantry Battalion.
Officials flew in from Riga by helicopter.
Dignitaries from the Latvian government attended, as did U.S. Embassy
officials and military attaches from Russia and China.
Just 15 years ago, an exercise like this would have been virtually
impossible, McDaniel said.
`Countries once considered adversaries now work as allies,’ McDaniel
said. `Our great nations are now bound together in a global effort
against terrorism.’

Baku Today, Azerbaijan
July 27 2004
Mann Supports Karabakh’s Inclusion in Talks
The US co-chairman of the Minsk group of the Organization for
Security and Cooperation in Europe (OSCE), Stephen Mann, voiced
support for the idea to include Nagorno-Karabakh Armenians in the
Azerbaijani-Armenian peace talks in an interview with Russia’s Regnum
news agency on Monday.
`Nagorno-Narabakh’s participation [in the talks] does no depend on
the co-chairs of the OSCE’s Minsk group, but on the sides of the
conflict. But in my personal opinion, it is needed to attract all the
interested sides to the talks,’ Regnum quoted Mann as saying.
The US diplomat said this would help speed up finding a settlement to
the conflict.
`However, it is the sides of the conflict that have a final say [on
the issue]. It is up to them to decide whom they are going to attract
to the peace process,’ Mann said, according to Regnum.
Baku strongly opposes to the idea of the inclusion of
Nagorno-Karabakh Armenians to the peace negotiations on the grounds
that it was Armenia, but not the ethnic-Armenian populated Azeri
region that fought the 1991-94 war against Azerbaijan.
As a result of the war, Armenian troops took control over
Nagorno-Karabakh – a western Azeri region that was home to nearly
100,000 ethnic-Armenians in late 1980s – along with seven of
Azerbaijan’s administrative districts, Lachin Kelbajar, Aghdam,
Fuzuli, Jebrail, Qubadli and Zengilan.
Nearly 20,000 Azeris were killed and 700,000 were forced to leave
their homes during the war.
A shaky armistice agreement reached between Baku and Yerevan in 1994
is frequently violated in the line of contact between the Armenian
and Azerbaijani armies.
The US co-chair of the Misk group, Mann, said his country is for a
peaceful resolution of the conflict, urging the sides to go for a
compromise.
“We will do everything to prevent a new tragedy,” Mann said, adding
that any breach of the stability in the region could jeopardize
multi-billion projects, such as Baku-Tbilisi-Ceyhan (BTC) pipeline.
From: Emil Lazarian | Ararat NewsPress

Civil Georgia, Georgia
July 27 2004
Georgia Seeks Alternative Gas Supply from Iran
/ Civil Georgia, Tbilisi / 2004-07-27 13:42:16

Georgian officials say Tbilisi considers Iran as an alternative gas
supplier for Georgia, which currently depends only the Russian giants
GazProm and Itera for its gas supply.
Officials say that the project is a long-term one and may be launched
as early as next year. Georgian President Mikheil Saakashvili
discussed this issue during his visit to Iran in early July.
`Iranian gas can serve as an alternative source of gas supply for
Georgia only in cases of emergency situations and in the case that
Russia reduces or stops the gas supply[to Georgia]. It can not be a
permanent supplier for us, as Iranian gas is more expensive,’ Teona
Doliashvili, a spokesperson for the Georgian Energy Ministry, told
Civil Georgia.
There are two potential delivery routes of gas from Iran into Georgia
– one via Azerbaijan and another through Armenia.
In Soviet times Georgia received gas from Iran via Azerbaijan;
however the Azerbaijani pipeline needs rehabilitation, which,
according to the Georgian Energy Ministry, would cost around USD 2
million.
Representatives from SakGazi, the gas distribution company in
Georgia, say that the joining of the Georgian gas system to the
Iranian-Armenian gas pipeline may prove cheaper.
`These considerations over a gas supply from Iran were launched some
three years ago, but discussions yielded no results, mainly because
of the lack of finances to rehabilitate the pipe. I think the
Armenian option will be cheaper,’ Maka Arakhamia, a spokesperson for
the SakGazi company, told Civil Georgia.
This issue was discussed during the Georgian Foreign Minister Salome
Zourabichvili’s vist to Armenia last week. Zourabichvili said that
Georgia is interested in gas being delivered from Iran.
According to the Georgian Energy Ministry, Iran is also interested in
Georgia as a transit country to export its gas to Europe.
From: Emil Lazarian | Ararat NewsPress

Zaman, Turkey
July 27 2004
US Ties up New Base Structuring in Europe
The US will begin negotiations concerning new “strategic
partnerships” that will assist the redeployment of its military
bases.
General Charles Wald, Deputy Commander for the European Command, told
a foreign policy symposium in the Senate that the US needed to change
its military settlement plan in foreign lands. Wald said that the
Ukraine, Russia, Romania, Bulgaria, the Black Sea region of Turkey,
Georgia, Azerbaijan and Armenia, in the Southern Caucuses, because of
their proximity to oil fields, drug smuggling, terrorism and
instability, were the “‘new geopolitical hot points”.
General Wald noted that the US was not looking for a permanent base
in Southern Caucasian countries, rather, “strategic partnerships.”
American troops settled in Germany could be temporarily shifted to
some countries including Turkey. Last month, an article in The New
York Times claimed that the US planned to move 72 F-16 planes from
Germany to Incirlik Base in Eastern Turkey. The story was denied. 84
percent of 120,000 American troops in Europe are in Germany.

UEFA.com
July 27 2004
Going gets tougher for hopefuls
The champions of Denmark, Hungary, Poland and Russia enter the UEFA
Champions League today when the first legs of six of the 14 second
qualifying round ties are played.
First legs
Twenty-eight teams make up the second round of qualifying, with the
first legs today and tomorrow and the second legs to follow on 4
August. Real Madrid CF, Manchester United FC and Juventus FC will be
among the opposition in the third and final qualifying round, which
will be played next month.
Balkan threat
Danish champions FC København opened the new season with a 2-2 draw
with Silkeborg IF at the weekend and will not underestimate their
Slovenian hosts NK Gorica, who were impressive 7-3 winners over
Estonia’s FC Flora in the first qualifying round. FCK coach Hans
Backe said: “Anyone who knows anything about teams from the Balkans
will know they all have good footballers and so do Gorica.”
Csaba warning
Hungary’s Ferencvárosi TC visit KF Tirana in Albania for new coach
László Csaba’s first competitive match. Ferencváros were beaten 2-1
by second division Bodajk FC in a pre-season friendly last week and
Csaba warned: “Everyone must concentrate better.”
Aldonin absent
PFC CSKA Moskva had a better preparation for their visit to
Azerbaijan to face PFC Neftchi when they beat FC Rubin Kazan 1-0 last
Friday, Ivica Olic the scorer. However, they will be missing Russia
midfield player Evgeni Aldonin, who did not travel following his
father’s death in a car crash. Neftchi coach Kazbek Tuaev, meanwhile,
welcomes back Vidadi Rzayev, one of his key players, from injury.
Shakhtar confident
Armenian champions FC Pyunik will host Ukraine’s FC Shakhtar Donetsk
at the Republican stadium in Yerevan strengthened by the return from
suspension of midfield player Karen Aleksanyan. Teenage striker Edgar
Manucharyan is doubtful, however, and after starting their league
season with three straight wins, Shakhtar coach Mircea Lucescu said:
“We only have one goal for his match and that is victory.”
Maccabi fear repeat
In Finland, HJK Helsinki host Maccabi Tel-Aviv FC. The match has been
moved from HJK’s Finnair stadium to the Pohjola stadium in nearby
Vantaa in order to meet UEFA’s regulations. HJK’s English coach Keith
Armstrong has warned his players need to be “extremely cautious”
against a Maccabi side desperate to avoid a repeat of their exit at
the same stage last season, against Slovakia’s MŠK Žilina.
Polish test
In today’s sixth and final tie, Polish champions Wisla Kraków visit
Tblisi to face FC WIT Georgia – conquerors of Faroese minnows HB
Tórshavn in the first qualifying round.

HURRIYET (LIBERAL)
July 27 2004
INCREDIBLE ESCAPE
By cutting the cell bars with iron shears, Armenian swindler Emili
Parapoziam escaped from the Istanbul Security Directorate where he
was being kept for deportation. During the count in the detention
room which is monitored 24 hours a day with surveillance cameras,
officials knew about escape of Parapoziam who cut the bars with iron
shears and jumped down an area three meters beneath and later exited
the building like a visitor. There were five Chechens in the same
room who have links to al-Qaeda. Police investigate how he managed to
escape and the iron shears was brought in.

Cyprus PIO – Turkish Cypriot Press Review
July 27 2004
Ozgur Politika stresses that Turkey will become EU member when it
withdraws its troops from Cyprus
Ozgur Politika newspaper (24.07.04) publishes a commentary by Murat
Aktas on the Turkish Prime Minister´s recent visit to France. Mr
Aktas writes, inter alia, the following: “Having conducted a
three-day official visit to France in order to seek support for
Turkey’s accession to the EU, Erdogan finalized his visit with the
purchase of 36 Airbus planes. Nonetheless, he returned to Turkey
without being able to persuade the French politicians who oppose
Turkey’s EU membership in any way whatsoever.
In addition to the purchase of the planes that will cost Turkey $3
billion, Erdogan has also given the French as a present tenders such
as the sales of certain banks and the construction of nuclear plants.
The fact that he returned from this visit as if he has won a victory
has naturally made the diplomatic circles very angry. Former diplomat
Nuzhet Kandemir compared the visit conducted by Erdogan, who
generously marketed his values, to “selling carpets in an eastern
market.” Furthermore, he firmly criticized the prime minister who
gave France the economic card in return for support in the EU.
The agreement that was signed between the AINF (Airbus Industrie No’l
Forgeard) and the Turkish Airlines at the Elysee Palace for the
purchase of five A330-200, 12 A321, and 19 A320 planes amounts to
more than $3 billion. Furthermore, in his meeting with MEDEF, French
Employers’ Federation, Erdogan also generously repeated that he is
opening the markets in Turkey, which has a population of 70 million,
to the French. Stating that in addition to the sale of certain banks,
a rapid privatization process will be initiated in the months ahead,
Erdogan gave the French the good news that certain privileges will be
given to French businessman in order to deepen the relations with
France. In his meeting with French employers, Erdogan also hinted
that Turkey will construct some nuclear plants in the period ahead.
Why did the media turn a blind eye?
Despite all this however, Erdogan was not able to persuade the
representatives of the UDF [Union of French Democracy] and the UMP
[Union for a Popular Movement], the rightist coalition parties that
oppose Turkey’s EU membership, to extend support to Turkey. UDF
Leader Francois Bayrou asserted that “Turkey does not adopt the
European culture,” while former UMP leader Alain Juppe once again
noted that Turkey will be given a conditional candidacy.
As a matter of fact, even French Socialist Party leader Francois
Hallande, who had supported Turkey’s EU membership in the past, said
to Erdogan that Turkey will become a member only if “it complies with
the Copenhagen criteria and if it officially acknowledges the
Armenian genocide.”
Despite the fact that the press featured pages and pages of reports
that noted that Jacques Chirac supports Turkey’s membership, it
failed to focus on the fact that Chirac merely extends conditional
support. Nonetheless, Chirac, who had repeated the same things over
and over again in the past, did not say anything positive during
Erdogan’s visit. In his meeting with Erdogan, Chirac once again said:
“Turkey’s integration with the EU will be desirable when it becomes
possible.” However, using a diplomatic language as usual, Chirac
avoided giving an exact date regarding when “Turkey’s membership will
become possible.” After all, he wanted to ensure that the Americans
do not snatch the tenders. Nevertheless, the French president
asserted that he extends support to the efforts made by Turkey for
becoming an EU member, rather than to Turkey’s accession to the EU
itself.
Why did Chirac, who demanded “one last effort” from Erdogan, not
understand Erdogan or why did he conceal the fact that he understood
Erdogan? Maybe Erdogan’s words were misinterpreted! And why did
Erdogan not ask Chirac the exact date for membership and the reasons
behind his remarks? Let us say that Erdogan forgot, but why did the
bourgeois media not focus on these issues and why did it applaud
Erdogan’s defeat, which was introduced as a victory?
This is because everyone very well knows that Turkey will become an
EU member when it becomes possible — in other words, when it truly
democratizes, when it acknowledges that the Kurds are the actual
founders of the republic and that they have equal rights with the
Turks, when it accepts the Armenian genocide and apologizes to the
Armenian people, and when it withdraws its troops from Cyprus.
Erdogan winked to the genocide
Meanwhile, no one is asking why in the public polls that were
conducted more than 60 percent of the French people noted that they
are against Turkey’s EU membership.
This is because 450,000 Armenians live in this country. The Turks had
massacred one and a half million Armenians and had driven the rest
away from their land. And the Armenians told and are still telling
each and every French person they live with what the Turks did to
their forefathers.
Furthermore, more than 200,000 Kurds live in France as refugees. The
Turks have been massacring the Kurds for the past two centuries. As a
matter of fact, they are still killing Kurdish youths with chemical
weapons and they are still cutting off their ears and noses. Despite
the fact that these Kurds were not able to properly explain the
nature of their problems, the French are able to follow the things
that happen to them in this age of communications. Instead of
stopping his soldiers who cut off the noses and the ears of Kurdish
youth and instead of putting Turkey in order, Erdogan is bribing the
French politicians and he is calling upon them to turn a blind eye to
all this and to extend support to Turkey. Despite the fact that they
received the tenders, the French repeated that they will not extend
support to Turkey under the current conditions.
Regardless of what anyone says, after the projects that were given to
France without even holding a tender, it is the 450,000 Armenians who
live in France and the Armenian genocide that actually sealed
Erdogan’s visit to France.
Turkey will not be able to become an EU member as long as it avoids
taking the necessary steps toward democratization, as long as it
avoids officially acknowledging the Kurdish identity and the fact
that the Kurds partners of the republic who have equal rights with
the Turks, and as long as it avoids accepting and apologizing for all
the massacres that it has conducted — from the Armenian genocide to
the Dersim genocide.”

Times of India
July 27 2004
You ain’t well? Suffer and die
SHIVANI SINGH & AMIT MUKHERJEE
TIMES NEWS NETWORK[ TUESDAY, JULY 27, 2004 08:55:08 PM ]

NEW DELHI: Here is a shocking nugget of information: in terms of
public spending on health, India ranks 171st out of 175 countries for
which data is available in Human Development Report 2004.
In contrast, it ranks an impressive 18th in terms of private spending
on health. It is hardly surprising then that the doctor ki dukan is
thriving. Nor should it be a secret any longer why the poor have not
bought the argument that reforms are about pulling public money out
of unproductive investments and deploying it in the social sector.
Public spending on health in India is a mere 0.9 per cent of the GDP.
There are only four countries – Nigeria, Indonesia, Sudan and Myanmar
— which spend less. In China, with which India is often compared,
the government spends two per cent of GDP on health and even Nepal
(1.5%) and Bangladesh (1.6%) spend more on health. Only Pakistan (1%)
in this region does almost as badly as India.
The picture is quite different when it comes to private spending on
health. Only in 17 countries does private expenditure as a percentage
of GDP exceed the 4.2 per cent figure for India. Those who spend more
than Indian include the US, Switzerland, South Africa, Brazil, Kenya,
Cambodia, El Salvador, Armenia, Bosnia and Cyprus.