| August 2-3 |
President Arkady Gukasyan
appoints Major-General Seyran Ohanian as the new defense minister,
replacing General Samvel Babayan who now serves as the Commander of
the Army. Gukasyan also appoints Bako Sahakian as the new interior
minister. Sahakian has previously served as the representative of
the Armenian National Security and Interior Ministry in Moscow. In
a special ceremony to introduce the new defense minister to the staff
and officers of the Karabagh Defense Ministry, President Gukasyan
and Armenian Defense Minister Vagharshak Harutiunian commend Ohanian
for his experience and state that the new separation between the army
commander and the defense minister will professionalize and strengthen
the Karabagh military. The president also stresses his appreciation
for the service of Samvel Babayan, having distinguished himself as
defense minister for six years. |
| August 7 |
Vartan Barseghyan is appointed,
by presidential decree, as the new Director of the Nagorno Karabagh
Republic Public Affairs Office in the United States. Barseghyan, who
replaces Tevan Poghosyan, arrived in the U.S. only a few days prior
and will begin his duties as representative immediately. |
| August 9 |
President Robert Kocharian
and Foreign Minister Vardan Oskanian meet with visiting Iranian Foreign
Minister Kamal Kharrazi in Yerevan. The officials discuss the situation
in Nagorno Karabagh and the status of the latest peace plan proposed
by the Organization for Security and Cooperation in Europe (OSCE).
The Iranian foreign minister reiterates his government's offer to
launch its own mediation effort for the Karabagh conflict. Officials
also discuss financing plans for a $120 million natural gas pipeline
between Iran and Armenia.
President Kocharian and Foreign Minister Oskanian hold separate meetings
with a delegation of five visiting members of the U.S. Congress in
Yerevan. Talks on bilateral issues and relations are held and the
U.S. officials are briefed on the latest situation in Nagorno Karabagh,
the details of Kocharian meeting last month with Azerbaijani President
Aliyev, and the state of the peace talks underway by the OSCE. The
U.S. Congressional delegation is also scheduled to holds meetings
in Nagorno Karabagh and Azerbaijan as part of its regional tour.
|
| August 10 |
Several press reports
reveal that a "secret meeting" between Armenian Defense
Minister Vagharshak Harutiunian and Georgian Defense Minister Davit
Tevzadze was held in the Armenian-populated region of Akhalkalaki
(Javakh) to discuss the political and economic situation in the region.
The Armenian defense minister was actually born in Georgia and lived
in Akhalkalaki during his childhood.
Kocharian appoints Deputy Parliamentary Speaker Albert Bazeyan as
the new mayor of Yerevan. It is also announced that former leading
Armenian National Movement (ANM) member Eduard Yegorian has died.
Yegorian, one of the authors of the country's new constitution, left
the ANM in 1997 to form the "Hairenik" (Fatherland) bloc
in the parliament.
President Gukasyan meets with a delegation of five U.S. Members of
Congress in Stepanakert. The U.S. Congressional delegation announce
their intention to call on Azerbaijani President Geidar Aliyev to
enter into direct talks with the democratically elected Nagorno Karabagh
leadership in order to accelerate the ongoing mediation effort aimed
at achieving a negotiated solution to the Nagorno Karabagh conflict.
Nagorno Karabagh Prime Minister Anushevan Danielian expresses his
government's appreciation for the direct humanitarian aid provided
to Karabagh by the United States and adds that Karabagh is now seeking
"mutually beneficial economic cooperation" and stresses
that Karabagh has fostered "a beneficial climate for foreign
investment." |
| August 11 |
A Yerevan court announces
a postponement of the Armenian government's case against the Greek
state-owned OTE telecommunications corporation and the U.S. TransWorld
Telecom company. The Armenian government claims that both companies
owe substantial profit taxes.
Recently appointed Nagorno Karabagh Defense Minister Seyran Ohanian
announces that his appointment formally marks the end of the government's
internal crisis and stresses that his appointment was welcomed by
his predecessor, Samvel Babayan. |
| August 12 |
The Armenian government
announces that fifteen governmental council administrators of towns
and villages have been dismissed from their positions due to their
"failure to cooperate with tax revenue collectors" and for
seriously failing to meet their local budget projections. |
| August 13-14 |
President Arkady Gukasyan
convenes the first official session of his new cabinet in Stepanakert.
The few remaining open ministerial positions of new Prime Minister
Anushevan Danielian's government were filled over the past few days. |
| August 15 |
Janna Galstyan is appointed
to the position of presidential adviser. Galstyan distinguished herself
in combat during the conflict with Azerbaijan and is regarded throughout
Nagorno Karabagh as a national hero. |
| August 16 |
The leadership of the Nagorno
Karabagh branch of the Armenian Revolutionary Federation (ARF) publishes
the first issue of its new Karabagh newspaper, "Kirs." The
newspaper, edited by Karabagh ARF leader, Varoujan Pamboukdjian, covers
the recent internal changes in the Karabagh government and other political
analyses in its first issue. |
| August 17 |
Armenian Foreign Minister
Vardan Oskanian meets with Nagorno Karabagh President Gukasyan in
Stepanakert to review plans for the upcoming conference on relations
between Armenia and its Diaspora. The conference, to be held under
the auspices of the foreign ministry, is to examine the many issues
of concern to the large Armenian Diaspora throughout the world.
In line with the earlier cabinet reshuffling, Nagorno Karabagh President
Gukasyan issues a presidential decree dismissing Samvel Babayan,
Jirair Poghosyan and Robert Shaferian from their positions on the
Karabagh National Security Council. The president appoints Prime
Minister Anushevan Danielian, Defense Minister Seyran Ohanian, Interior
Minister Bako Sahakian and the head of the State Department of National
Security, David Ohanian, to the council.
Nagorno Karabagh Foreign Minister Naira Melkoumian meets with Andrzej
Kasprczik, the permanent representative of the Organization for
Security and Cooperation in Europe's (OSCE) Chairman-in-Office.
The foreign minister reviews the situation in the region and discusses
the planned visit to Karabagh by an OSCE delegation next month.
The OSCE current chairman-in-office is Norwegian Foreign Minister
Knut Vollabaek.
|
| August 18 |
In anticipation of an August
23 special session of parliament to discuss the budget, Prime Minister
Vazgen Sarkisian calls on the parliamentary Committee on Economics
to support his proposed budget cuts. The cuts were drafted after it
was determined that there would be a 33 billion dram ($61 million)
budget deficit. Sarkisian's proposal includes budget cuts in "non-essential
expenditures and programs," including reduced spending for social
and educational programs and health care, as well as tax increases
on cigarettes and gasoline. |
| August 20 |
In a statement released
to the Yerevan press, defense lawyer Garo Karapetian announces that
his client, former Education Minister and leader of the opposition
"Nor Ughi" political party Ashot Bleyan, has been assaulted
while in detention in the Nubarashen detention center. Bleyan was
arrested in May on charges of corruption and embezzlement of state
education funds. |
| August 22 |
President Kocharian meets
with Azerbaijani President Geidar Aliyev in Geneva for a second round
of bilateral talks. The presidents state their willingness to "resolve
the Nagorno Karabagh conflict using only peaceful means" and
pledge to send their defense ministers to another meeting to coordinate
the strengthening of the cease-fire. The meeting of the two heads
of state is the follows an earlier meeting in mid-July. |
| August 24 |
Foreign Minister Oskanian
meets with Chinese Prime Minister Rongji Zhu during an official visit
to Beijing. The Armenian foreign minister discusses a set of bilateral
issues with Chinese officials, including possible Chinese investment
in Armenia's energy and mining industries. Preliminary talks are underway
concerning Chinese investment in the Razdan thermal electric power
station and in the mining of Armenian copper, molybdenum and gold.
Following his visit to China, Oskanian is scheduled to visit Japan.
Armenian President Robert Kocharian meets with President Gukasyan
in Yerevan to provide a detailed briefing of the recent meeting between
Kocharian and Azerbaijani President Aliyev. The two leaders declare
their common desire to strengthen the cease-fire in effect in the
region and to resume the stalled peace talks being coordinated by
the Organization for Security and Cooperation in Europe (OSCE).
Meeting in Stepanakert with Prime Minister Danielian, the Yerevan-based
representative of the AIRSYS ATM company, Lilit Mkrtichian, conveys
the interest of the French Thompson CSF firm in the possible reconstruction
of the Stepanakert airport. According to Mkrtichian, the French state-owned
Thompson firm is particularly interested in establishing a presence
in Karabagh in coordination with its other investments in Russia and
Central Asia. The Stepanakert airport has been plagued with conflict-related
defects and damage for several years and the last passenger aircraft
to attempt a landing was shot down by Azerbaijani forces several years
ago. |
| August 25 |
The parliament formally
approves a new World Bank loan providing $19.5 million and a Japanese
loan package of $13.5. The loans will be used for the modernization
and expansion of the country's power network grid and its national
distribution network. Welcoming the loan package, Armenian first deputy
Energy Minister Garen Galstyan states that the modernization program
will save nearly $5 million annually by increasing efficiency and
reducing energy loss.
Finance Minister Levon Barkhudarian releases new government statistics
revealing that Armenia's foreign debt has surpassed $880 million,
or about 46 percent of the country's Gross National Product (GNP).
Adding to the concerns, Minister of Statistics and Analysis Stepan
Mnatsakanian adds that Armenia has become heavily dependent on external
debt and foreign markets with a distorted trade balance marked by
a serious dominance of imports over exports. |
| August 26 |
Former prime minister
Hrant Bagratian warns that the government is dangerously close to
becoming unable to meet its schedule for internal debt repayments
if it continues its practice of selling short-term , high-yield treasury
bills. These "T-bills" hold a fifty percent annual yield
and are a very expensive mechanism for the financing of government
debt.
Azerbaijani and Armenian border troops exchange fire along the southwestern
Armenian border with Nakhichevan and in the Krasnoselsk area along
the northeastern border with Azerbaijan. Although no injuries or casualties
are reported, the incidents demonstrate the fragility of the informal
cease-fire agreement in effect in the region since May 1994.
Foreign Minister Melkoumian meets with a visiting delegation from
Christian Solidarity International led by Baroness Caroline Cox, the
deputy speaker of the British House of Lords. Lady Cox, a long time
supporter of the people of Nagorno Karabagh, reviews the humanitarian
situation in the republic and pledges to continue her support for
the reconstruction of Karabagh. |
| August 27 |
Justice Ministry officials
confirm media reports that former Interior Minister and Yerevan Mayor
Vano Siradeghian will stand trial on September 9, on charges of orchestrating
a series of political murders during his 1994-1996 tenure in the Ter
Petrosian government. Presiding Justice Samvel Torosian states that
he has approved a list of 229 prospective witnesses in the trial.
Although currently serving as a member of parliament, Siradeghian's
parliamentary immunity was lifted in February.
The Armenian government dispatches emergency aid, medicine and mobile
field generators to help the earthquake relief effort in Turkey. An
earlier offer by the Armenian government to send assistance and rescue
teams immediately after the earthquake was not accepted by the Turkish
government.
A delegation led by Armenian Defense Minister Vagharshak Harutiunian
attends the defense ministers' summit of the Commonwealth of Independent
States (CIS) in the southern Russian city of Astrakhan. The CIS ministerial
summit reviews the results of the recent air force and air defense
exercises, "Combat Commonwealth-99." Armenian units participated
in the exercises with troops from Belarus, Kyrgystan and Kazakhstan.
The exercises were designed to test the CIS S-300 air defense system.
The defense ministries of Azerbaijan, Georgia, Tajikistan and Ukraine
also sent official observers.
Prime Minister Danielian presides over a cabinet meeting to review
several economic and financial proposals for the later presentation
to the Karabagh parliament. Finance Minister Spartak Tevosian reports
that a decision is made to implement tighter restrictions on the use
of state property and introduce a new program offering short-term
credit to Karabagh's state-run "joint-stock" companies.
The cabinet meeting also abolishes the Karabagh customs department
and replaces it with a new body to be under the direct control of
the Karabagh State Tax Department. |
| August 28 |
The parliament adopts the
budget cuts offered late last month by Prime Minister Sarkisian to
counter the 33 billion dram ($61 million) budget deficit. The austerity
measures include new increases in the excise taxes on gasoline and
cigarettes and reduced spending for health care, social and educational
programs, and cuts in infrastructure investments. The World Bank and
the International Monetary Fund (IMF) continue to withhold some $55
million in new loans, however, until the government addresses the
17 billion dram private sector debt owed to government owned energy
firms. |
| August 29 |
Foreign Minister Oskanian,
on his first visit to Japan, begins a three-day series of meetings
with Japanese Foreign Minister Masahiko Komura and other senior officials
in Tokyo. The foreign ministers discuss expanding bilateral trade
and the possibility of Japanese investment in the Armenian energy
sector. |
| August 30 |
The United States Department
of State announces the appointment of Carey Cavanaugh as the new U.S.
special negotiator for the Nagorno Karabagh conflict. The special
negotiator serves as the official U.S. representative to the so-called
Minsk Group of the Organization for Security and Cooperation in Europe
(OSCE), a special working group chaired by Russia, France and the
United States and specifically empowered to mediate the Karabagh conflict.
Cavanaugh, currently serving as the deputy chief of mission at the
U.S. embassy in Bern, is to assume the position immediately and replaces
outgoing official Donald Keyser. |