June 1998 Events
June 2 Speaking at an informal press conference in Yerevan, Parliamentary Speaker Khosrov Harutiunian states that President Robert Kocharian is against calls by some political groups for early, pre-term elections for a new parliament and prefers to keep the current parliament in place through the end of its four-year term which expires in the summer of 1999. The speaker adds that Kocharian shares his view that the current parliament should only be dissolved in the event of an exceptional case of "political crisis" and that it is highly unlikely that the legislature will be able to pass a new election law anytime soon.
June 2-3  Prospects for the course of the international mediation effort of the Organization for Security and Cooperation in Europe (OSCE) to reach a negotiated solution to the Nagorno Karabagh conflict brighten following separate meetings between Armenian President Robert Kocharian and European Union Commissioner for Foreign Relations Hans van den Broek and U.S. State Department special envoy Stephen Sestanovich in Yerevan. One of the main topics discussed is the merits of a "package" solution in the negotiations which would address a majority of the issues, including political status, over the current OSCE proposal of a staged solution. These meetings follow a recent meeting in Beirut between French President Jacques Chirac and Armenian Foreign Minister Vardan Oskanian during which the French president expressed his support for the comprehensive "package" approach to the negotiations. Azerbaijani presidential adviser Vafa Guluzade is also reported to be reconsidering such an approach so long as it preserves Azerbaijan's territorial integrity.
June 5  President Kocharian joins his counterparts from Albania, Azerbaijan, Bulgaria, Georgia, Moldova, Romania, Turkey and Ukraine for a summit of the Black Sea Economic Cooperation (BSEC) organization in Yalta. The summit participants adopt a declaration and charter defining the BSEC as a regional economic organization and discuss transforming the Black Sea region into a free-trade zone to foster greater economic and trade relations between member states
June 6  President Kocharian presents a formal nine-point program on governmental reform to the recently created commission empowered to study constitutional reform. According to the terms of the president's proposals, the broad powers of the presidency would be subject to new restrictions, the government would be significantly decentralized, greater access to the country's constitutional court would be ensured, and the current law banning dual citizenship would be abolished. Kocharian states that he is seeking to cede more power to the parliament and the judiciary and will specifically restrict the president's broad power to dissolve parliament and end the current mandatory presidential endorsement necessary for new government decisions. The proposals are to be presented in a national referendum following parliamentary approval.
June 6-7 According to new government statistics released by the economics ministry, the Armenian economy grew by 6.4 percent for the first three months of the year. Industrial output expanded by 4.3 percent and foreign investment reached new record levels of $100 million. The government statistics also show inflation of 8 percent in late March before dropping by 2 percent in April, with annual inflation projected at a manageable ten percent for the year. Although exports have risen by 58 percent to a level of $56.7 million, the country is still faced with a significant trade deficit due to a burdensome level of imports cited at $201 million. The government also notes substantial improvement in tax collection as revenues have increased by 84 percent over the same period last year.
June 8  Following controversial statements made on national television by Haik Babukhanian, the editor of the Union of Constitutional Rights newspaper "Iravunk" a few days earlier, parliamentary speaker Khosrov Harutiunian files libel charges against him. Babukhanian's televised statements included condemnations of the parliament as being "95 percent criminal" and was elected in 1995 only through "illegal means." The prosecutor-general's office then summons Babukhanian to their offices for questioning in the course of the libel proceedings. Babukhanian responds by threatening to stage a strong defense by calling members of the opposition electoral commission and their allies who, he alleges, were "beaten up and intimated" during their work in the 1995 parliamentary elections. The chairman of the Union of Constitutional rights party, Hrant Khachatrian, issues a statement strongly defending Babukhanian and dismisses the libel charges as "outrageous." Former presidential candidate Khachatrian supported Kocharian for president after losing in the first round.
Nagorno Karabagh President Arkady Gukasyan announces his acceptance of the recent resignation of Prime Minister Leonard Petrosian. The president refuses to comment on rumors that he will assume the duties of prime minister himself, but states that the resignation stems from differences over economic policy and is not related to any power struggle within the Karabagh government. Defense Minister Samvel Babayan states that he would not accept the post of prime minister if it is offered to him, but insists that he will not remain indifferent to the composition of a new cabinet, warning that he will resign unless "young, experienced and skilled people" are appointed to the new cabinet. The defense minister adds that his brother Garen has resigned his post as interior minister to end rumors of an internal power struggle.
A prisoner exchange with Azerbaijan is canceled after the two sides are unable to agree on terms. Azerbaijani officials had proposed exchanging Armenian civilians for Azerbaijani POWs, but this proposal was rejected by Nagorno Karabagh officials.
June 11  Speaking on the floor of the U.S. House of Representatives, Congressman Frank Pallone urges the Minsk Group chairs to adopt a new approach to the Karabagh peace talks by rejecting failed efforts to impose Azerbaijani control over Karabagh. Pallone also expresses concern over recent reports of Turkey's delivery of NATO Howitzer artillery and F-16 fighter aircraft to Azerbaijan. Pallone is co-chairman of the Congressional Caucus on Armenian Issues and recently traveled to Armenia and Nagorno Karabagh with Congressman Patrick Kennedy (D-RI).
June 12  Armenian refugees from the Shahumian region of Nagorno Karabagh meet in Yerevan with embassy personnel of the three countries co-chairing the OSCE Minsk Group. The Armenian refugees are seeking support for repatriation to their homes that they were forced to leave in June 1991 to escape attacking Azerbaijani OMON forces.
June 13  Deputy Prime Minister Jirair Boghossian is named as Nagorno Karabagh's new Prime Minister to replace Leonard Petrosian , who resigned earlier in the month. Gukasyan announces the appointment at a news conference in Stepanakert and is joined by Parliamentary Speaker Oleg Yessayan and Defense Minister Samvel Babayan in an effort to show solidarity amongst Karabagh's political leaders.
June 17  : A delegation comprising members from several commissions of the Council of Europe arrive in Stepanakert for a two-day visit. The delegation meets with Karabagh government officials as well as representatives of non-governmental organizations. The main focus of the delegation's visit, however, will be to assess the current state of negotiations and to determine the Karabagh government's position on the peace process.
June 19  A press conference is held in Yerevan to announce the founding of a new political party, the "Rule of Law State Party." According to one of its founders, Albert Baghdasarian, the chairman of the parliamentary Committee on State and Legal Affairs committee, the new party will seek legal representation for all citizens and will work toward ensuring the rule of law. Baghdasarian adds that the development of democracy in Armenia remains hindered by a series of contradictory laws and by the general public's ignorance of their civic rights and liberties.
President Kocharian meets with visiting officials from the Council of Europe and tells them that Armenia's integration into European structures and organizations is one of his government's top priorities. The president notes that Armenia is striving to become the most stable and democratic country in the region. That same day, a demonstration of some 2500 participants is held in Yerevan to protest the planned sale of the country's brandy distillery to the French group Pernon-Ricard.
President Kocharian issues a decree establishing a new consultative body to participate in the government's formulation of policies and legislation. This new body, called a special consultative council, is to be comprised of members of all major political parties and groups, including those without representation in parliament. The council's decisions and recommendations will be non-binding, but the creation of the council fulfills a significant campaign pledge by Kocharian to introduce greater transparency to the governmental decision making and policy formulation processes.
June 20  The director of the Medzamor nuclear power plant, Suren Azatian, meets with a visiting delegation of Russian nuclear experts and technicians in Yerevan to review current bilateral efforts to ensure the plant's operational safety system. Although there have been no reported accidents or crises since the plant was reopened three years ago, Russian technical personnel continue to assist in the routine repair and waste disposal functions necessary for the operation of the Medzamor facility.
The Executive Secretary of the Commonwealth of Independent States (CIS), Boris Berezovskii, meets with Kocharian during a visit to Yerevan. The CIS official discuses the situation in Nagorno Karabagh, stating that the "oil factor" will have little influence on the course of current mediation efforts and reviews plans for greater cooperation between Armenia and the CIS and the expansion of economic and commercial relations. Berezovskii also promises to conduct a personal fact-finding mission to Nagorno Karabagh sometime later this summer.
June 22-23  Reporting on the visit of Armenian-American billionaire Kirk Kerkorian to Armenia, President Kocharian announces that Kerkorian has pledged an additional $100 million in new donations. The additional moneys will be used for the construction of a major highway from the southern Armenian Meghri district on the Iranian border to the Georgian ports of Batumi and Poti and for the rebuilding of the country's second largest city, Gyumri, in the northern earthquake-damaged area of the country. Kerkorian also reviews the status of the $100 million entrepreneurial investment fund he launched last year, which seeks to provide financial assistance to new businesses in the form of low-interest loans.
June 23  Nagorno Karabagh President Arkady Gukasyan issues a decree modifying the governmental structure of the republic into a new system of eleven ministries and four "state departments." The new structure will alter the current ministry of finance and economy into a new ministry of economic and structural reforms endowed with supervisory powers over privatization and state investment. The governmental department for tax administration and collection is also to be independent of the finance ministry. In a related decree, the president calls on newly appointed Prime Minister Jirair Poghosian to form a new government within a month. This move is seen as a serious attempt to focus on economic reform and to spur growth in Nagorno Karabagh.
June 26  Foreign Minister Vardan Oskanian responds to criticism over his recent remarks suggesting the possible unification of Nagorno Karabagh and Armenia by dismissing it as an Azerbaijani attempt to garner international support by taking the remarks out of context. The foreign minister adds that Azerbaijan refused to address his offer of establishing direct talks between Armenia, Azerbaijan and Nagorno Karabagh and states that Armenia holds no preconditions for such talks.
June 29  Finance and Economy Minister Eduard Sandoyan presents a package of draft legislation to parliament calling for an expansion of the existing set of income taxes for small businesses. Under the current law, much of the country's small businesses enjoy preferential rates of income tax in the form of a system of "fixed payments," whereby such enterprises such as open-air markets, service sector firms and kiosks are subject to a set payment depending on their size and location. The minister claims that the new legislation will improve the efficiency and scope of tax collection and enforcement and will significantly raise new revenue for the government.
In an announcement issued by the Nagorno Karabagh government, local elections are to be held throughout the republic on September 27th. The announcement is followed by a governmental directive instructing all local and municipal bodies to assist the Central Election Commission in preparations for the voting.
June 30  Argentine President Carlos Menem arrives in Yerevan for a one-day visit and meets with President Robert Kocharian. The two presidents discuss proposals for increased bilateral economic cooperation and sign an agreement on "the fundamentals of friendly relations." Additional agreements are signed covering cooperation in nuclear energy, health care, culture and education. The Argentine president also reviews the planned investment by his country's Bridas energy company in a project to construct a natural gas pipeline from Iran to Armenia. Argentina has a sizable and politically active Armenian community and President Kocharian visited Argentina during his tenure as president of Nagorno Karabagh.
Reprinted, by permission, from Armenian Assembly of AmericaArmenian International Magazine , Armenian National Committee of America , Armenian National Institute ,Groong. Armenian News Network  
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