June 2001 Events
June 2  During the second party congress of the People's Party of Armenia, the junior partner of the Republican Party in the dominant parliamentary Unity Bloc, Chairman Stepan Demirchian states that the People's Party has some serious differences with some of the
decisions adopted by its partner Republican Party.  Demirchian specifically questions the implementation of the government's privatization program and the veracity of the investigation into the events of the October 1999 attack on parliament which killed
his father, Parliamentary Chairman Garen Demirchian and several other senior government figures.  Despite recent defections, the Unity Bloc remains the largest bloc in parliament, with the People's Party holding 19 seats and the Republican Party 25
.

June 2 - 8

President Robert Kocharian embarked Tuesday on a three-day visit to Brussels, Belgium to hold a series of meetings with leading officials of the European Union and NATO in an effort to link Armenia more closely to Europe. In an interview before leaving for the Belgian capital, Kocharian noted that Armenia is "taking practical steps to move closer to European institutions" and that this was a "natural" process for the 10-year-old republic. Kocharian also emphasized that Armenia's "aims and approaches to the development and strengthening of democracy are congruent" with those of Europe.
On Wednesday, Kocharian met with North Atlantic Treaty Organization (NATO) Secretary General Lord George Robertson at NATO headquarters in Brussels. Kocharian and Robertson discussed Armenia's ongoing participation in NATO's Partnership for Peace (PfP) and ways in which Armenia can increase its activity in the program. Robertson called Armenia a valuable part of the PfP. The two also discussed issues related to regional cooperation and security. Kocharian briefed Robertson on the recent summit held in Yerevan of the six member states of the Collective Security Treaty (CST). Speaking to journalists on Tuesday, Defense Minister Serge Sargsian said Armenia's relations with CST and NATO are complementary and form the basis of Armenia's defense concept.
Also on Wednesday, Kocharian met with president of the European Commission Romano Prodi. In addition to the conflict in Nagorno Karabagh, the leaders discussed trade relations between the European Union (EU) and Armenia as well as EU aid programs. The EU is Armenia's largest trading partner, accounting for nearly 40 percent of Armenia's annual external turnover. Kocharian expressed Armenia's readiness to further "enlarge and deepen relations" with the EU and stressed the importance of the partnership in terms of economic development and reforms. A meeting of the Armenia-EU cooperation committee will convene in Yerevan on June 15 within the framework of the Cooperation and Partnership Agreement signed in 1996. While in Brussels, Kocharian was also scheduled to meet with President of the European Parliament Nicole Fontaine, EU's Commissioner for External Affairs Chris Patten, Belgian Crown Prince Phillip and ministers of the Belgian government.
June 2 - 8 Turkish Prime Minister Bulent Ecevit reportedly announced this week that Turkey will not establish bilateral relations with Armenia until Armenian forces unconditionally withdraw from Nagorno Karabagh and a security corridor is opened between Azerbaijan and Nakhichevan. The comments, made during a meeting with visiting US Defense Secretary Donald Rumsfeld, mark the first time that Turkey has publicly set the creation of a security corridor as another precondition for establishing relations with Armenia. Analysts believe it indicates a toughening of Ankara's attitude. In his meeting with the Turkish prime minister, Rumsfeld stressed the need for normalization of Turkish-Armenian relations as a prerequisite for achieving stability in the Caucasus region.
In a related story, Peter Narey, a senior consultant at the World Trade Organization (WTO), said this week that WTO rules prohibit member states from imposing economic blockades on one another and require them to guarantee free transit of cargoes through their territory. This would require Turkey to lift its nearly decade-long blockade of Armenia when the latter becomes a member of the Geneva-based organization. Senior government officials in Armenia predict that Armenia's accession to the global organization will take place by the end of this year. "It would be very difficult for Turkey to maintain a prohibition on Armenian transit," Narey stated at a seminar in Yerevan on the implications of Armenia's acceptance into the WTO. "Turkey is a member of the WTO and I don't see how it can justify such policy."
June 2 - 8 The Central Bank of Armenia inaugurated a new bank card system last week. The Armenian Card company (ArCa), a group consisting of the Central Bank and ten private banks in Armenia, hope to issue approximately 20,000 plastic cards by the end of this year according to Central Bank chairman Tigran Sargsian. In addition ArCa will oversee the installation of about 200 automatic teller machines (ATM's) in Yerevan within the next month. ArCa became a full member of the Europay International system last December and will receive an international certificate in September. Customers will be able to withdraw cash in Armenia from bank accounts in 135 countries. It will also enable ArCa member banks to issue and service Visa, MasterCard/EuroCard, and American Express credit cards. The US Agency for International Development is the project's primary sponsor. The first two cards were presented to President Robert Kocharian and US Ambassador to Armenia Michael Lemmon.
The Central Bank also issued a new 50,000 dram (approximately $91) banknote. In celebration of the 1700th anniversary of Christianity as Armenia's state religion, a picture of Holy Etchmiadzin graces the front of the banknote while images of Mt. Ararat and St. Gregory the Illuminator appear on the back. Central Bank spokesman Gevorg Tumanian stated that demand for banknotes of higher value was increasing. Until now, the banknote of the highest denomination in Armenia was 20,000 dram.
June 2 - 8 Minister of State Revenue Andranik Manukian said at a press conference last Friday that his ministry had collected 15.7 billion Armenian dram ($28.6 mln.) in taxes and custom duties for the month of May, almost 5 billion dram more than for the same period last year. The ministry had originally projected a collection of 14 billion dram for the month. In the first five months of this year, the ministry had accumulated 61.7 billion dram, 20 percent more than during the same period last year. Manukian stated that the ministry is on track to meet its six-month target of 78.2 billion dram ($142 mln.). The minister said he will continue the crackdown on the country's shadow economy. Manukian believes that if at least half of the shadow economy is incorporated into the tax field, the ministry should be able to collect 18 billion dram in monthly taxes and duties.
June 5 - 6 Armenian Minister for Privatization Davit Vartanian and a delegation of Swiss investors are forcibly prevented from entering the Ararat cement factory compound by a group of employees and guards.  The Swiss investors are interested in purchasing the
factory, one of fourteen large state-owned firms slated to be privatized this year.  Former Prime Minister Aram Sarkisian operates the Ararat factory, having assumed the position from his brother, the late Vazgen Sarkisian.  The inspection is carried out
the next day with police intervention.
June 5 - 9 During an official state visit to Belgium, President Robert Kocharian meets in Brussels with the European Union's (EU) Commissioner for Foreign and Security Policy, Javier Solano, to
discuss the planned expansion of EU-Armenian relations and to review negotiations over the Nagorno Karabagh conflict.  The EU is supporting the OSCE-led mediation process and holds a key role in the planned reconstruction and reintegration of the region once a
resolution is achieved.  Kocharian also meets with European Commission President Romano Prodi and North Atlantic Treaty Organization (NATO) Secretary-General Lord George Robertson during his visit.
June 7 - 10 Russian State Duma Speaker Gennadii Seleznev meets with President Kocharian and other senior government officials during a visit to Yerevan.  Seleznev discusses issues related to bilateral relations and reviews what he terms the "strategic partnership"
between the two countries, including the status of the Russian military bases in Armenia.  Armenian officials dismiss two Seleznev suggestions during the meetings, specifically Russia's invitation to Armenia to join the Belarus-Russian Union and that Russian be made the "second official language".
June 8 Armenian Revolutionary Federation (ARF) official Hrand Markarian issues a statement warning that the ARF will stand opposed to any concessions to Azerbaijan that it sees as "a danger to national security."  He suggests that the Nagorno Karabagh government should "declare its sovereignty" over all districts it holds outside of the Karabagh borders in order to maximize its negotiating position and should not withdraw its troops from those   areas at this time.  Markarian declares that the ARF will refrain from any action that damages political stability, but calls on the Kocharian government to make the details of the peace process public.
June 9 - 15 Azerbaijani KGB Chief Namik Abbasov said this week that Azerbaijan will begin what he termed "anti-terrorist operations on the occupied territoriesİ once domestic and international public opinion is ready for it." One of many recent calls for war by top Azerbaijani officials, Abbasov's statement was made as a Turkish military delegation was visiting Baku. Since the beginning of this year, at least ten senior Turkish defense and security officials have visited Azerbaijan. The head of the General Staff of the Turkish Armed Forces Husseyin Kivrikoglu is expected to visit Baku to sign a comprehensive bilateral military agreement in the near future. Analysts believe Azerbaijan sees Turkish military assistance as a way to make its war threats more credible and thus strengthen its position at the negotiating table.
The Turkish Ambassador in Baku Kadri Evcet Tezcan confirmed last week's reports that Prime Minister Bulent Ecevit has now added a new precondition to normalizing ties with Armenia. In addition to Armenian withdrawal from Karabagh and abandonment of the campaign for Armenian Genocide recognition, Turkey now demands that a "security corridor" be established on Armenian territory. Tezcan called the Meghri district that lies on Armenia's border with Iran "an Azerbaijani land some time ago" and said Azerbaijan and Nakhichevan should be linked together. Azerbaijan said it was encouraged by Turkish officials, who essentially presented a territorial claim to Armenia on Azerbaijan's behalf.
Armenian Foreign Minister Vardan Oskanian called Ankara's new demand "unacceptable and absurd" and stated again that normalization of relations between Armenia and Turkey should not be connected to other countries. Oskanian also expressed regret that Ankara's signals earlier this year that it would soften its policy on Armenia turned out to be a public relations move designed to prevent more Western countries from officially recognizing the Armenian Genocide.
Oskanian remained hopeful, however, that progress could still be achieved in the Karabagh peace process and said Armenia remained committed to agreements reached in negotiations with Azerbaijan earlier this year. He urged mediators from France, Russia and the United States to "eliminate newly created complications" that are hampering the talks. Some regional analysts suggested that these complications may be directly linked to the hard-line Turkish position. In this case Turkey would be directly responsible for derailing a two-year process begun by Presidents Robert Kocharian and Heydar Aliyev and presently endorsed by the US President George W. Bush and Secretary of State Colin Powell.
So far, Armenian leaders blamed only Azerbaijan for the impasse. The President of the Nagorno Karabagh Republic (NKR) Arkady Ghoukasian said during a two-day working visit to Yerevan earlier this week that Azerbaijan was at fault for reneging on agreements developed by the Armenian and Azerbaijani Presidents in Paris and Key West, Florida. Ghoukasian's political advisor Manvel Sargsian told an Armenian newspaper last week that NKR's participation is essential if talks are to resume. He said that issues connected to the withdrawal of forces and demarcation of borders must be discussed by NKR and Azerbaijan, since they would be the implementing parties to any agreement. But in Armenia and Karabagh sentiment remains strong that return of territories now controlled by NKR defense forces is unacceptable at a time when Azerbaijan and Turkey continue to present unrealistic demands instead of moving towards compromise.
Hrant Markarian, who is a senior member of the Armenian Revolutionary Federation (ARF - Dashnaktsutiun), called on NKR to declare sovereignty over territories that it now administers, but that lay outside the former Nagorno Karabagh autonomy. Another ARF member and former military commander Petros Meghrian urged Armenian leaders to make the return of Shaumian district, occupied by Azerbaijan in 1992, part of any peace deal. Markarian ruled out withdrawal from areas immediately adjacent to Armenia and NKR for security reasons, and said his party would join opposition to Kocharian, if his compromises go too far. The ARF has been an ally of Kocharian since his election as President three years ago.
Meanwhile, it is expected that President Bush and his Russian counterpart Vladimir Putin will discuss the Karabagh conflict during their summit in Ljubljana, Slovenia this weekend. French, Russian and US mediators were also expected to meet in Moscow soon, this time with the participation of an Iranian representative. Iran has indicated a desire to step up its regional role and this week invited the three South Caucasus leaders to visit Tehran this year. Iran's Ambassador to Armenia Mohammad Farhad Koleini has reportedly been appointed his country's contact person to the Karabagh talks.
June 9 - 15 A group of 137 Armenian Americans, many of them descendants of Genocide survivors, this week toured central and eastern parts of Turkey, before proceeding to Armenia. Organized by the Diocese of the Armenian Church of North America and the Armenian-Turkish Business Council, the group first flew to Istanbul and from there proceeded to Kayseri to participate in a liturgy dedicated to the 1700th anniversary of the adoption of Christianity by Armenia. It was in Kayseri (Kesaria) that St. Gregory the Illuminator, the founder of the Armenian Church, was reportedly baptized and then helped spread Christianity throughout Armenia in the 4th century. Escorted by Turkish police the group toured Kayseri, where fewer than a dozen Armenians now live, and other Anatolian towns that, prior to the Genocide, had large Armenian populations. They met with local government officials and citizens, before taking charter flights from Kars to Yerevan.
The unprecedented visit by such a large group of Diaspora Armenians was widely covered by the Turkish media. A leading Turkish journalist Mehmet Ali Birand wrote that Turks should present a warm welcome to Armenians. "We should not forget that Anatolia mothered the Armenian civilization. The traces of their forefathers can still be seen there," he wrote. Birand said that the fact that Armenians could freely visit and travel in Anatolia only adds to Turkey's prestige. Turkish businessmen hoped revenues from Diaspora Armenian tourism could bolster the local economy. Coinciding with the visit, however, were Turkish Prime Minister Bulent Ecevit's remarks accusing the Armenian Diaspora of aggravating regional problems. Also this week, thousands rallied in Ankara's central square to protest international recognition of the Armenian Genocide. The Turkish government recently established an Institute for Armenian Research presumably "to answer Armenian allegations on a scientific level," rather than through arm-twisting and blackmail tactics practiced to date.
June 9 - 15 The United Nations (UN) this week honored the 100th anniversary of the birth of a man who was the driving force behind the adoption of one of the international body's main human rights agreements fifty years ago. Raphael Lemkin (1901-1959) coined the term genocide in the 1940s to describe mass atrocities committed against racial, ethnic or religious groups and was the first to use it in reference to the massacres of Armenians by Ottoman Turks. As a teenager during WWI, Lemkin was horrified by atrocities committed against Armenians. As a young lawyer in his native Poland, Lemkin received international acclaim in the 1930s for his work in codifying crimes committed against ethnic groups, including Armenians. He fled Poland in the face of Nazi occupation in 1939. 49 members of Lemkin's family, including his parents, subsequently died in the Holocaust. Following the establishment of the United Nations, Lemkin moved to New York to advocate for an international treaty on genocide. He worked tirelessly to seal the adoption of the UN Convention on the Prevention and Punishment of the Crime of Genocide in 1948. It came into force in 1951. UN Secretary General Kofi Annan, in his address delivered at the event honoring Lemkin, described Lemkin's mission as a "lifelong campaign for every human being to live in dignity."
June 9 - 15 The economy of the Nagorno Karabagh Republic (NKR) expanded by over 10 percent in the first quarter of 2001 compared to the same period last year, NKR State Department for Statistics reported this week. Double-digit growth was registered in manufacturing, agriculture and construction, and exports grew by about 20 percent. Meanwhile, the NKR government is in a final round of talks with a Lebanese company interested in leasing Karabagh's telecommunications monopoly, Artsakhkap, in exchange for investments to upgrade the operator's outdated equipment. Arnold Abrahamian, NKR's Minister for Economic and Structural Reform, said that unlike Armenia, his government has no plans to privatize its telephone network.
June 9 - 15 US Ambassador to Armenia Michael Lemmon and Prosecutor General Aram Tamazian signed an agreement this week providing Armenia with US $1.5 million in technical assistance for local law-enforcement and clinics dealing with drug addiction. Tamazian said assistance would improve Armenia's drug interdiction capabilities.
June 13 Foreign Minister Vardan Oskanian holds a press conference in Yerevan to discuss the status of the Organization for Security   and Cooperation in Europe (OSCE) led mediation over Nagorno Karabagh.  The foreign minister reports that the peace process "is still alive" and expresses hope that the OSCE will "make active efforts to eliminate the newly created complications" for the next round of talks.  Oskanian confirms that the recent talks have reached a basis for further negotiations resting on the premise that Karabagh will not be vertically subordinate to Azerbaijan. Oskanian is also critical of a recent statement by Turkish Prime Minister Bulent Ecevit demanding the establishment of a land corridor connecting Azerbaijan and Nakhichevan as a new precondition to the lifting of its blockade of Armenia and the establishment of normal relations with Yerevan.  Turkey had previously demanded the return of all Armenian-held territory in Azerbaijan as its precondition to relations with Armenia.
June 13 The parliament votes to reject a motion by the Armenian Revolutionary Federation (ARF) that would have raised state pension payments by 30 percent in an attempt to meet the general population's worsening socio-economic situation.  Despite recent positive economic growth, the overall standard of living remains low and has been made worse by a lack of state funding for social programs aimed at helping the most vulnerable of the population. The current average pension payment stands at $10 per month.
June 14 - 15 A delegation of officials from the European Union (EU) arrives in Yerevan for the second session of the Armenian-EU partnership committee.  The officials review issues related to
bilateral cooperation and the mediation efforts to resolve the Nagorno Karabagh conflict.  Also discussed is the 1996 agreement Armenia concluded with the EU to deactivate the Medzamor nuclear power plant by 2004.  Armenian officials contend that the Medzamor
facility can remain safely operational for at least another 5-10 ears and should not be closed until an adequate alternative energy source is found.  The plant currently provides 40 percent of the country's electricity.
June 16 - 22 President Robert Kocharian has reaffirmed his government's plans to seek amendments to Armenia's Constitution. Next week, the National Assembly will discuss the Law on Public Service, a crucial element in a struggle against corruption in the government bureaucracy. At present, Armenia has no established legal procedure for appointments to government posts. The Parliament rejected an earlier version of the bill, arguing that it gave the President too much power over civil servants. The bill has since been amended and now has a better chance of passing. Kocharian last week said the bill was approved by international legal experts and criticized those who tried to obstruct its passage. Two key presidential allies in Parliament, the Republican Party and the Armenian Revolutionary Federation, endorsed the bill this week.
Among those opposing the bill is the influential head of Parliament's legal service Vladimir Nazarian, who has called it "anti-constitutional and anti-democratic." Nazarian is a member of the People's Party, which is likely to lead opposition to the bill.
Nazarian is also opposed to constitutional amendments that have been drafted by a presidential commission of legal experts and is expected to be put to a popular referendum next spring. Nazarian, who was one of the main authors of the 1995 Constitution, strongly objects to dropping a constitutional clause banning dual citizenship in Armenia. During the 1998 presidential campaign, Kocharian promised to abolish the clause and pave the way for a law that would allow greater numbers of Diasporan Armenians to become citizens. Kocharian has also argued for ceding some presidential powers to parliament, but preserving the existing "semi-presidential" form of government. Last week he told reporters that it was too early to introduce a parliamentary system, before key political and economic reforms have been completed.
The government has said it will continue privatizing the government-owned utilities and industries, such as the electricity distribution grid. Tender for the grid was foiled earlier this year, amid vocal political opposition to the deal. Under a recently approved government schedule, the grid is now expected to be privatized by November. Several Russian, European and American companies have expressed interest in bidding. Among other large enterprises that will be up for privatization shortly are Mars Electronics Plant and Ararat Cement. Both enterprises were established in the closing years of the Soviet Union and have modern equipment, but produced little as their debts mounted. Deputy State Property Minister Ashot Markosian said that "despite some snags," he hoped the government will be able to privatize the majority of these assets by the end of the year.
June 16 - 22 Aleksan Harutiunian, a foreign policy aide to Armenian President Robert Kocharian, expressed optimism this week that a Karabagh settlement can be achieved in the near future. Harutiunian told an Armenian newspaper that this agreement would be based on principles developed by Armenian and Azerbaijani Presidents earlier this year and will be in line with Armenian interests. He further denied that any territorial swap, the subject of much controversy and speculation in Armenia and abroad, will be part of a settlement.
Harutiunian's comments came just as the negotiating process appears to have come to a screeching halt. The three most recent rounds of talks between Presidents Robert Kocharian and Heydar Aliyev held in Paris and Florida and mediated jointly by France, Russia and the United States promised an imminent breakthrough. But last month, the Azerbaijani leader reportedly backtracked on agreements reached during the talks, forcing a cancellation of the highly anticipated Geneva summit with Kocharian in June.
Envoys from the three countries mediating the talks under the aegis of the Organization for Security and Cooperation in Europe (OSCE) will meet on the Mediterranean island of Malta this weekend to discuss what has been termed as 'complications' hampering further progress in negotiations. Meanwhile, Kocharian this week again briefed leaders of ten parties and groups represented in the country's Parliament on the status of talks. Artur Baghdasarian, leader of the minority Country of Law faction, told reporters following the meeting that the next round of negotiations is likely to take place in August. Vazgen Manukian, leader of the National Democratic Union, said that mediators have achieved common interests in the conflict settlement and will need to convince Azerbaijan to return to talks.
Azerbaijan's Foreign Minister Vilayat Guliyev confirmed this viewpoint. Guliyev told a local newspaper this week that Russian and US positions on a settlement remain "quite close." He also admitted that the mediators support Armenia's position on a settlement. Armenian leaders have repeatedly announced three main elements required for any settlement: Karabagh's non-subordination to Azerbaijan, a direct overland link between Armenia and Karabagh and security guarantees for the Karabagh population. Guliyev also said that while Azerbaijan is unhappy with the current direction of talks, it will not refuse OSCE mediation.
Also this week, a group of Armenian parliamentarians was in Baku for a session of the Parliamentary Assembly of the Black Sea Economic Cooperation (BSEC) group, a regional forum that includes both Armenia and Azerbaijan. Head of the Armenian delegation Viktor Dallakian stressed Armenia's desire for a peaceful resolution of the conflict that would be acceptable to both nations. Dallakian, who is from the ruling Republican Party and chairs the Committee on State and Legal Affairs also urged Azerbaijan to embrace mutual confidence-building measures, such as economic cooperation, parliamentary links and popular diplomacy. Azerbaijan remains opposed to any economic links with Armenia. Foreign Minister Guliyev this week stated that "regional cooperation cannot become a way for achieving peace." Earlier this week, Azerbaijan's Health Minister Ali Insanov also ruled out cooperation in healthcare. Armenia has an established reputation as a country with the most advanced medical facilities in the region and Azerbaijani patients are known to have undergone treatment in Armenia.
Meanwhile, Azerbaijan's Interior Minister Ramil Usubov this week became one of only a handful of senior Azerbaijani officials to visit Armenia since the Karabagh conflict began. Usubov participated in a meeting of chiefs of law-enforcement agencies from the Commonwealth of Independent States (CIS), a loose grouping of former Soviet republics, that discussed transnational crime.
June 16 - 22 The ongoing trial in the case of the assassination of eight senior Armenian officials, including Prime Minister Vazgen Sargsian and Parliament Speaker Karen Demirchian, has regained public attention in recent weeks, as the National Assembly began its own investigation.
Armenia's National Assembly voted overwhelmingly last month to set up a temporary commission to oversee the ongoing trial of a terrorist group that perpetrated a bloody attack on the National Assembly in October of 1999. The twelve-member commission consists of representatives of all parliamentary factions and groups, as well as non-partisan deputies. Vardevan Grigorian from the People's Deputy group and Gagik Kostandian, who is not a member of any faction, head the commission. The commission was set up to study allegations of defendants' mistreatment during the investigation and suspicions by three parliamentary groups that Hunanian and others were receiving what they termed "illegal counseling" during the trial.
The commission initially urged the presiding judge to transfer Hunanian from the National Security Ministry detention to a general prison run by the country's Interior Ministry. As a reason for their request, parliamentarians cited reports that Hunanian had collaborated with agents of the KGB and its successor Ministry during the democratic movement in the late 1980s and more recently, during his trip as a journalist to Turkey in 1998. This week they withdrew the request, after concluding that the Interior Ministry prison was not secure enough to hold Hunanian.
Also this week, Party of the Republic, a newly established opposition group, issued a statement, harshly criticizing authorities for granting amnesty to six individuals involved in the case. The six were released as part of a general amnesty unanimously passed by the National Assembly two weeks ago. Three of those against whom charges were dropped were police officials charged with negligence, and others who were accused of supplying weapons used in the attack. They will remain as witnesses in the case.
June 16 - 22 Veteran Armenian politician, Vazgen Manukian, who made two unsuccessful runs for the presidency in 1996 and 1998, and earlier served as Armenia's Prime Minister (1990-91) and Defense Minister (1992-93), will lead a parliamentary commission that will study the government's policy in the communications sector, and will also determine if Armenia's Greek-owned telecommunications monopoly honored the investment commitment it assumed after the 1998 takeover of the company.
June 19 President Robert Kocharian convenes a meeting with representatives of major political parties to brief them on the latest developments in the stalled negotiations over the Nagorno Karabagh conflict.  The president announces that the next round of talks with Azerbaijani President Geidar Aliyev will be convened in August, although the OSCE-led mediation effort has been halted by Azerbaijan.  The OSCE had originally planned to convene a summit meeting with Armenian and Azerbaijani delegations in Geneva this
month.
June 19 The head of the State Committee for Water Resources, Gagik Martirossian, confirms reports that a group of international donor nations have pledged a $180 million five-year low-interest loan package designed to finance upgrading Armenia's water management
and irrigation systems.  The loan package includes plans for the construction of a dam on the Arax River and water main systems for the Vayots, Tavush and Armavir districts.
June 20 - 21 After the release of six defendants initially charged with complicity in the October 1999 attack on the Armenian parliament, the recently formed Republic party sharply criticizes
the Kocharian government for obstructing efforts to solve this crime.  The six defendants, including three police officers on duty during the attack who were arrested for failing to prevent the incident, are released according to the terms of a new amnesty.
The Republic party issues a statement calling for the resignations of the president and the government of Prime Minister Andranik Markarian for their failure to "guarantee the country's security and future" and for unwillingness "to expedite justice."  The Republic Party, which was formed in March, is led by former Prime Minister Aram Sarkisian, the brother of the late premier and Defense Minister, Vazgen Sarkisian, killed in the parliament
attack.
June 20 - 21 Delegations led by the interior ministries from the twelve member nations of the Commonwealth of Independent States (CIS) meet in Yerevan for the 20th session of the CIS Internal Affairs Ministerial Council.  The participants in the Yerevan meeting include Azerbaijani Interior Minister Ramil Usubov.
June 23 - 29 President George W. Bush this week nominated America's number two diplomat in Russia to be its next Ambassador to Armenia. John Ordway, who now serves as deputy chief of mission at the US Embassy in Moscow, will replace current Ambassador Michael Lemmon following approval by the US Senate. Lemmon has served in Armenia since 1998. Prior to his current appointment, Ordway served as minister-counselor for political affairs at the Moscow embassy (1996-99) and as deputy principal advisor at the US mission to NATO (1993-96). Ordway joined the foreign service twenty-six years ago and throughout his career at the State Department and National Security Council focused on Eastern European and African affairs. Ordway is a native of California, and graduate of Stanford University and Hastings College of Law.
June 23 - 29 Envoys from France, Russia and the United States plan to return to the region during the second week of July in an attempt to convince the Azerbaijani President to resume stalled negotiations to settle the Karabagh conflict. Mediators acting under the aegis of the Organization for Security and Cooperation in Europe (OSCE) agreed on another trip during three-day consultations on the island of Malta late last week. After their visit to Azerbaijan, Nagorno Karabagh and Armenia last May, the mediating troika was forced to postpone an Armenian-Azerbaijani presidential summit planned for this month in Geneva.
Earlier this week, US officials downplayed Azerbaijan's recurrent threats to resume its aggression against Nagorno Karabagh. Speaking at a military ceremony in Baku, Azerbaijani President Heydar Aliyev and Defense Minister Safar Abiyev again boasted of Azerbaijan's ability to gain control of Karabagh by force. US Ambassador to Azerbaijan Ross Wilson told local journalists that he was certain that President Aliyev would not try to resolve the dispute militarily. Similarly, US Ambassador to Armenia Michael Lemmon doubted Azerbaijan had serious military intentions, attributing the military rhetoric to the "emotional and psychological climate" reigning in Baku.
Over the years, Azerbaijan has continued to hope that its importance as a source of raw materials and its strategic location would help draw international support for its struggle for Karabagh. Azerbaijani officials have tried to curry favor alternatively in the West, Russia and the Islamic world to gain a political and military edge in the conflict. Azerbaijani Deputy Foreign Minister Araz Azimov said this week it was "an admission of powerlessness and weakness of the Azerbaijani army if the country relies on foreign assistance." Azimov said Azerbaijan should not wait for outside help but rather build up its own potential.
So far only Turkey has provided tangible military assistance to Azerbaijan. Hundreds of Azeri officers have undergone military training in Turkey, both as air force pilots and with the security forces fighting Kurdish guerillas in that country's southeast. During the most recent of some dozen visits by Turkish military and security officials to Azerbaijan so far this year, Turkey promised the Azeris it would help set up local tank, artillery and infantry training. During 1991-94, Azerbaijan similarly relied on over one hundred Turkish officers who advised it on how to fight a war. Money from oil revenues helped pay for former Soviet army equipment and the Russia, Ukrainian and Afghan mercenaries to fight it.
June 23 - 29 Plans for tariff hikes by Armenia's monopoly telecommunications provider renewed worries that the company's policies would threaten the country's information technology sector. Armentel Chief Executive Nikos Georgioulas recently reaffirmed his company's plans to introduce a per minute payment system for telephone services this September. If the new policy takes effect, Armenia's internet users would be heavily impacted. The Armenian government is strongly opposed to the move and remains hopeful its ongoing talks with Armentel's owners will preempt the company's plans. Greece's Hellenic Telecommunications Organization (OTE), a state-owned service provider, purchased Armentel in 1998.
Andranik Aleksanian, chief manager of Armenia's largest internet provider Arminco, said that the introduction of per minute charges would put internet out of reach for most users in Armenia and force many of the approximately two dozen Armenian internet service providers (ISP's) into bankruptcy. Aleksanian added that the cost of external communication is already high in Armenia, and Armentel itself would suffer financial losses as ISP's are forced to look for alternative outlets to the outside world.
Georgioulas said the new policy is necessary to justify OTE's investments and improve Armentel's financial situation, which suffers from chronic non-payments. Georgioulas added that in accordance with a 1998 agreement, Armentel has a unilateral right to raise service fees. He also said this clause and Armentel's monopoly status can only be changed if the company is financially compensated.
Armenia's Transport and Communications Minister Yervand Zakharian said late last week that the government and OTE are now working together to review existing tariffs for fixed and mobile phones and internet connection, but that changes will be towards a reduction and not an increase. Two commissions set up by the government and the National Assembly are currently investigating Armentel's compliance with the 1998 takeover agreement. Some parliament members had earlier threatened to legally ban Armentel from raising fees and revoke its monopoly status, which they claim is unconstitutional.
June 28 Energy Minister Garen Galustian announces a new agreement with Russia on Armenian debt for supplies of Russian natural gas and nuclear fuel for the Medzamor power plant.  According to the terms of the new agreement, Russia will forgive $8.3 million of Armenian arrears, reducing the total to $88 million. Armenia repaid $20 million of this debt last month, using proceeds from its privatization program.
June 28 - 29 The Armenian-Georgian intergovernmental cooperation commission convenes in Yerevan to review several bilateral issues. Georgian officials agree to a rescheduling of the $20.5 million Georgian debt to Armenia ($4.5 million of which is for Georgian purchases of Armenian electricity) and conclude a new agreement setting transit fees at $24 for each ton of oil products and $14-17 in variable rates for each ton of other commodities for the
remainder of the year.  The transit fees are still considerably higher for Armenia than for other states, however.
June 29 The parliament adopts the government's new three-year privatization plan for the sale of the country's remaining large state-owned firms, including four strategic mining and metallurgical companies and the thermal and hydro-electric power plants.  The government's plan targets some 900 large- and medium- scale firms, but excludes several state-operated hospitals after pressure from parliamentarians.  The parliament also adopts new anti-corruption legislation which requires the disclosure of all income by officials of the executive and judicial branches.
July 13 In a move that Nobel Peace Prize laureate Elie Wiesel hailed as a "miracle," a multi-disciplinary group from Armenia, Russia, Turkey and the United States announced this week the establishment of the Turkish-Armenian Reconciliation Commission. The Commission, so far composed of four Armenians and six Turks, including former foreign ministers of both Armenia and Turkey, grew out of a series of confidential meetings at the Diplomatic Academy of Vienna, Austria. David Phillips, an American professor who teaches at the Academy, moderated the meetings. Phillips has a stellar background in conflict prevention and mediation, and has organized similar track two diplomatic initiatives between Serbs and Albanians, and Greeks and Turks. According to the "Terms of Reference", issued by the Commission, its main goal is "to promote mutual understanding and good will between Turks and Armenians and encourage improved relations between Armenia and Turkey." The Commission will both undertake activities directly and support other initiatives in fields as varied as "business, tourism, culture, education and research, environment, media, confidence building and other areas." It will also issue recommendations to concerned governments.
The United States government has repeatedly urged Turkey to normalize relations with Armenia. (Most recently the issue was raised by US Defense Secretary Donald Rumsfeld during his visit to Ankara.) The US is supporting the new Armenian-Turkish initiative, and the move has also been welcomed in Turkey and Armenia, but has caused irritation in Azerbaijan. The only English-language Turkish daily called the new development "an historic step for both Turks and Armenians", while an Armenian paper said the commission may provide unprecedented possibilities for normalization of relations between two neighbor countries. A Turkish daily referred to the Speaker of the Azerbaijani Parliament as saying that "the improvement of economic and cultural ties between Turkey and Armenia is something which frustrates Baku." 
The two countries have remained in a state of a virtual cold war since the re-establishment of Armenia's independence. In spite of repeated Armenian offers to establish normal relations without preconditions, Turkey has refused to do so and, in siding with Azerbaijan in the Karabagh conflict, instituted an economic blockade against Armenia and continues to provide military assistance to Azerbaijan. Turkey continues to condition the normalization of relations on the settlement of the Karabagh conflict on Azeri terms and Armenia's refusal to pursue international recognition of the Armenian Genocide. Earlier this year, however, after the European Parliament officially urged Turkey to recognize the Genocide and normalize relations with Armenia, sources in the Turkish government indicated readiness to open a channel for talks with Armenia. The idea at the time was welcomed by the Armenian government. This week, the spokeswoman for the Armenian Foreign Ministry said Armenia has always welcomed public initiatives aimed at improved Armenian-Turkish relations. However, she reiterated that public dialogue is still not a substitute for direct talks on the government level.
The commission includes the following members: former Ambassador to the United Nations in Geneva Gunduz Aktan, former Foreign Minister and chairman of the Armenian National Movement Alexander Arzoumanian, former President of Istanbul's Bogazici University Ustun Ergunder, retired Air Force General Sadi Erguvenc, former Ambassador to Syria and Professor at the Yerevan State University David Hovhannissian, Chairman of the Board of Directors of the Armenian Assembly of America and a New York lawyer Van Z. Krikorian, former Advisor to the President of Russia and member of the Union of Armenians of Russia Andranik Migranian, former Ambassador to the United Kingdom and head of an Istanbul think-tank Ozdem Sanberk, former Foreign Minister and columnist Ilter Turkmen, and Psychology Professor at the University of Virginia Vamik D. Volkan.
Reprinted, by permission, from Armenian Assembly of AmericaArmenian International Magazine , Armenian National Committee of America , Armenian National Institute ,Groong. Armenian News Network  
History
2001
January
February
March
April
May
June
July
August
September
Oktober
November
December
 
Back


Contact us: Armenia - Diaspora Official Web Site
Ministry of Foreign Affairs of the Republic of Armenia
Government House 2, Republic Square, Yerevan 375010, Republic of Armenia

http://www.armeniadiaspora.com/ | E-mail: info@ArmeniaDiaspora.com | Telephone: (374-1) 544041 Ext: 298, 299