December 1998 Events
December 2  A summit of the Organization for Security and Cooperation in Europe's (OSCE) foreign ministers convenes in Oslo to review the OSCE's latest peace plan seeking a resolution to the Nagorno Karabagh conflict. Armenian Foreign Minister Vardan Oskanian meets with the head of the U.S. OSCE delegation, Stephen Sestanovich, and briefs the Italian and Spanish foreign ministers on Armenia's position regarding the OSCE draft peace plan. The peace plan calls for the formation of a "common state" comprising Azerbaijan and Nagorno Karabagh with a degree of vague autonomy for Karabagh and is accepted by Armenia and Nagorno Karabagh despite some reservations. Azerbaijani Foreign Minister Tofik Zulfugarov, in an address to the summit, formally rejects the peace plan and criticizes the draft document for "violating Azerbaijan's sovereignty."
December 3  Speaking at the OSCE foreign ministers' Oslo summit, OSCE Chairman-in-Office Bronislaw Geremek calls for the speedy resumption of talks over the Nagorno Karabagh conflict and calls on all parties to demonstrate the political resolve and willingness to consider all legitimate interests and concerns. Having formally rejected the OSCE's draft peace plan offering the formation of a "common state" featuring Karabagh within Azerbaijan proper, Azerbaijani Foreign Minister Tofik Zulfugarov reiterates his government's preference for granting Karabagh "a high degree of self-rule."
December 8  Armenian Foreign Minister Vardan Oskanian calls on Azerbaijan to reconsider its position on resuming talks over the Nagorno Karabagh conflict despite Baku's rejection of the OSCE's "compromise variant" suggesting a "common state" reflected in its latest draft peace plan. The Armenian foreign minister is attending the regular meeting of the North Atlantic Treaty Organization's (NATO) Euro-Atlantic Partnership Council in Brussels.
December 10 Deputy Defense Minister Colonel Vahram Khorkhoruni, a close ally of Defense Minister Vazgen Sarkisian, is fatally shot outside of his home by unknown assailants. A special prosecution team is formed to launch a special investigation and a $100,000 reward is offered for information leading to a conviction in the case.
A group of leading Armenian clergymen and members of the "Nakhichevan Union," representing ethnic Armenians from the Azerbaijani enclave, issues an appeal to the United Nations calling on the UN to halt the destruction of historic Armenian religious and cultural monuments in Nakhichevan. The Armenian government contends that Azerbaijani residents have destroyed Armenian gravestones and monuments in the Old Djuga cemetery near the Arax River along the Nakhichevan-Iran border.
December 11 Following an agreement signed in Moscow calling for a new Russian loan of $20.24 million to finance the safety and fuel supply of the Armenian Medzamor nuclear power plant, a shipment of much needed nuclear fuel arrives in Yerevan. Armenian firms currently owe over $40 million in outstanding arrears for electricity supplies from the Medzamor plant.
Opposition National Democratic Union (NDU) leader Vazgen Manukian, a former prime minister and failed presidential candidate, addresses his party's tenth congress and alleges that the Armenian and Nagorno Karabagh economies are under the direct control of a small elite group led by President Robert Kocharian
December 16 The Council of Europe's Parliamentary Assembly convenes a special hearing on the Nagorno Karabagh conflict in Paris after being postponed for a month after Azerbaijan's objection to the invitation extended to a separate delegation of Karabagh officials. The Armenian government sends a delegation led by parliamentary speaker Khosrov Harutiunian, but Azerbaijan's parliamentary speaker Murtuz Aleskerov announces that his government is boycotting the hearing.
December 17 Foreign Minister Vardan Oskanian, in comments at the closing meeting of the annual European Union (EU)-Armenia commission meeting in Yerevan, states that Armenia will abide by its commitment to close the Medzamor nuclear power plant by the year 2004 as long as the EU assists in developing alternative energy sources. The Medzamor plant, which was reopened in 1995, currently supplies the country with 35 percent of its electricity needs. The Medzamor plant was reactivated with the assistance of the European Bank for Reconstruction and Development (EBRD), which provided financing of $10 million on the condition that the plant be shut down by the year 2004. EU officials announce a new ECU 50 million ($58.8 million) loan and grant package, bringing total EU aid to Armenia to over ECU 250 million since 1991.
December 18-19 Commenting on the latest peace plan presented by the Organization for Security and Cooperation in Europe (OSCE), Armenian Foreign Minister Vardan Oskanian states that the plan represents a "big step forward" in seeking to reach a negotiated resolution to the conflict and "is substantially different" from the OSCE's previous peace plan. The foreign minister's comments are directed at previous statements by Armenian opposition figures, including former Foreign Minister Alexander Arzoumanian and parliamentary Foreign Affairs Committee Chairman Hovannes Igitian, condemning the peace plan as being unacceptable since it contains no significant changes or improvements compared to earlier OSCE plans. The criticism of the two opposition figures, both of the "Hayrenik" bloc, allied with the former ruling Armenian National Movement (ANM) of the Ter Petrosian government, is also echoed by former parliamentary speaker Babken Ararktsian. All claim to have seen the latest plan although none of the document's details have yet been released. Armenian press reports suggest that the details of the draft plan have been leaked to the opposition by deputy Foreign Minister Shahen Karamanukian, a former loyalist of Ter Petrosian.
December 20 Former Armenian Communist party leader Garen Demirchian addresses the founding congress of a local branch of his newly-created "People's Party" in Yerevan. Demirchian criticizes the Kocharian government for "tampering" with the results of the March 1998 presidential election, in which he lost to Kocharian, and blames the current government's cuts in subsidies to the country's industrial and agricultural sectors. The People's Party calls itself a modern social-democratic party which offers a new alternative to rebuild the country by promising to "restore democracy." Demirchian was Armenian Communist party First Secretary from 1974 to 1988.
December 21 A group of opposition parliamentarians criticize the recent announcement by the national telecommunications monopoly ArmenTel that it will soon introduce significant price hikes for local telephone service. ArmenTel was sold to the Greek OTE telecommunications firm for $150 million with an additional $300 million in investment pledges in 1997 and, according to the terms of the sale, retains the right of unilateral rate increases. Opposition deputies also state that the government's planned price increases for electricity, public transportation, and bread, to be introduced next month, will hurt the neediest of the population.
Nagorno Karabagh Defense Minister Samvel Babayan addresses students at the Yerevan State University and states that the new mediation attempt by the OSCE's is a promising sign that real negotiations may now be possible. Specifically, the defense minister commends the OSCE's draft peace plan for granting "the principles of people's self-determination and territorial integrity" equal consideration. Admitting a fundamental difference with Armenia over the peace plan, however, Babayan states that the Armenian government does not have a clear position regarding the plan and complains that Karabagh "does not get a clear answer from the Armenian authorities." Commenting on the peace process and the subsequent concessions Stepanakert will be bound to make, the defense minister adds that he is personally opposed to returning Kelbajar and Lachin, two key districts captured in 1992 and 1993 which comprise the strategic land corridor connecting Armenia to Nagorno Karabagh.
December 22 The International Monetary Fund (IMF) and the World Bank announce a new $124 million loan package for assisting the Armenian government with continued economic reforms and to aid the energy sector which will fully phase out all state subsidies in the coming months. The aid is to also help minimize "spillover" effects from the Russian financial crisis and to help finance the state's budget deficit.
Nagorno Karabagh President Arkady Gukasyan meets with Armenian President Robert Kocharian in Yerevan to brief him on the recent hearing on the Karabagh conflict convened by the Council of Europe's Parliamentary Assembly in Paris. The hearing, featuring delegations from Armenia and Karabagh, but not from the boycotting Azerbaijan, reviewed the mediation efforts of the Organization for Security and Cooperation in Europe (OSCE) and stressed the need to continue the peace talks among the parties.
December 23 Armenia, Bulgaria and Georgia conclude a commercial transportation agreement which will allow goods to be transferred from the Georgian ports of Poti and Batumi by ferry to the Bulgarian port of Varna on the Black Sea. Armenian Transport Minister Yervand Zakharian states that the new ferry link will enable Armenia's cargo exports to rise by 20-30 percent in the coming year. Iranian officials, present at the signing ceremony, add that Iran is also interested in joining the tripartite agreement at some later point. A similar ferry route is to be operational between the Georgian ports and the Ukrainian Black Sea port of Ilichevsk later this month.
December 24 Presidential Press Secretary Vahe Gabrielian announces that the Kocharian government is planning to convene a major conference on diaspora relations in September 1999. President Kocharian appoints Defense Minister Vazgen Sarkisian, Foreign Minister Vardan Oskanian, and presidential adviser and Armenian Revolutionary Federation (ARF) leader Vahan Hovanessian to a newly-formed governmental commission empowered to prepare the logistics for the conference.
December 25 Newly appointed Health Minister Haik Nikoghosian promises to reform the country's health care system, improving its services and affordability. Currently, Armenian health care is faced with challenges of a lack of any system of mandatory medical insurance, an 80 percent level of health services requiring payment, and low living standards and declining income combining to make health care virtually unaffordable to most citizens.
The California-based Armenian Technology Group (ATG) accelerates its project to assist the local honey industry of Nagorno Karabagh with the dispatch of technical advisers to rebuild the region's apiary sector. According to ATG Executive Director Varoujan Der Simonian, the project is to be completed by March and is funded by grants of $1 million, mostly from the Save the Children Federation and the U.S. Agency for International Development (AID). Nearly three hundred farming households are to be targeted for special technical assistance and ten percent of the output will be donated to hospitals, charitable organizations and the neediest of the population throughout Nagorno Karabagh.
December 26 Long time Armenian Revolutionary Federation (ARF) leader Hrair Maroukhian is buried in Yerevan following his death in Athens after suffering a long incapacitating illness in 1995. President Kocharian and other senior government officials join ARF leaders in honoring Maroukhian at his funeral. The ARF leader was banned from Armenia by former President Levon Ter Petrosian in June 1992 which was followed by an outright ban on the ARF in late 1994 and lifted by Kocharian earlier this year.
December 28 Foreign Minister Vardan Oskanian holds a series of meetings with Russian officials during a visit to Moscow. Meeting with Russian Foreign Minister Igor Ivanov and first deputy Prime Minister Vadim Gustov, Oskanian agrees to consider a new avenue of "direct talks" on the Nagorno Karabagh conflict with "the assistance of the Organization for Security and Cooperation in Europe (OSCE) and with Russia's participation."
The Armenian parliament passes legislation increasing the salaries of high-level government officials and requiring an annual declaration of personal property and income by officials. The roughly four-fold salary increase, raising the monthly salary to an average of 187,500 drams, about $370, applies to the president, prime minister, ministers (full and deputy), department heads and the parliamentary leadership.
December 29 Former Yerevan Mayor and Interior Minister under the Ter Petrosian government, Vano Siradeghian, states in a televised interview that Armenia's top political leadership manipulated the vote count of the September 1996 presidential election. Siradeghian states the a decision was made in the days prior to the election to actively ensure the election of incumbent President Levon Ter Petrosian and to prevent a run-off election with opposition challenger Vazgen Manukian. Siradeghian, the head of the former ruling Armenian National Movement (ANM), adds that similar voting manipulation was carried out by supporters of current President Robert Kocharian during his election in March 1998.
The parliament formally adopts the government's proposed budget for 1999, which includes forecasts of economic growth of four to six percent and a continuation of single-digit inflation. The state budget comprises spending of 248.3 billion drams (roughly $477.5 million) and expected revenues of 191.7 billion drams. The budget contains a deficit of 57 billion drams, representing 5.3 percent of the Gross Domestic Product (GDP), to be wholly financed with foreign loans. Defense spending continues to receive the most significant share of state funding, at 40 billion drams, followed by social spending at 29.8 billion drams, education with 25.9 billion drams and health care with 20.5 billion drams.
Armenian government officials attend the opening of a new 13.6 kilometer water canal supplying drinking water from the village of Artashavan to the town of Ashtarak in the Aragatsotn district. The five month project is funded with a government grant of 600 million drams, or about $1.2 million.
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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