October 2001 Events
October
 1 - 5
In the wake of the unprecedented terrorist attacks against the United States, Azerbaijan is using the situation to seek the repeal of restrictions on U.S. aid to Azerbaijan. While most regional countries rushed to offer assistance to the United States in the campaign to eliminate suspected terrorist bases in Afghanistan, some observers believe that Azerbaijan has made its cooperation with the United States conditional on the repeal of Section 907.
Section 907 of the Freedom Support Act, enacted by the U.S. Congress in 1992 and repeatedly upheld in both the U.S. Senate and House of Representatives, does not preclude American assistance from reaching Azerbaijan's needy or facilitating U.S. companies' engagement in that country. In fact, in recent years, the U.S. has provided Azerbaijan with over $250 million in various assistance. Special carve-outs to the provision allow organizations like the Export-Import Bank and Trade and Development Agency to support U.S. oil companies engaged in the Caspian energy projects.
However, Section 907 serves as an important notice to the government of Heydar Aliyev that the United States disapproves of Azerbaijan's intransigence in the Karabagh peace process and its continued effort to seek a military solution to the 13-year old conflict. Azerbaijan could overcome the restrictions placed by the U.S. law, by lifting its ongoing blockade of Armenia and Nagorno Karabagh. The Azerbaijani government has repeatedly rebuffed Armenian offers of economic collaboration and confidence building measures in the conflict area. Observers believe that a rash repeal of Section 907 could shatter the precarious regional balance established since the 1994 cease-fire in Karabagh, and can have dangerous implications for the region where the United States has important interests. For years, the Azerbaijani government curried favor with Islamic radicals, striving to win their military backing in the Karabagh conflict. This policy has allowed groups like Osama Bin Laden's Al Qaeda to establish in Azerbaijan what has been described as an international hub to run terrorist operations against American and Western interests throughout the region.
Some Azerbaijani pundits have urged their government to begin a new military campaign against Karabagh Armenians, while the world's attention is focused on Afghanistan. Azerbaijani Defense Minister Safar Abiyev said during his visit to Ankara this week that Turkey would provide Azerbaijan with "personnel and equipment" should the Azeris launch a new war against Karabagh. Azerbaijan and Turkey are expected to sign a bilateral military agreement by the end of this year that would provide Turkish assistance in modernization of the Azerbaijani armed forces. Turkey has been training Azeri officers since the early 1990s and for the past few years has been running all of Azerbaijan's military academies. Even while Turkish President Ahmet Necdet Sezer is calling for peace and stability in the Caucasus, Azerbaijan and hard-line groups in Turkey continue their efforts to draw Ankara into the Karabagh conflict.
Armenian and Nagorno Karabagh leaders have repeatedly warned Azeri officials against provoking a new war that would have detrimental effects for the region generally and Azerbaijan specifically. Ariel Cohen, area specialist at the Washington-based Heritage Foundation, told a leading local daily recently that the ongoing Azeri obsession with the new war was "a bad ideaŻ A war would not be in Azerbaijan's interest.. and would deal a serious blow to regional energy projects" he said.
October 
1 - 5
An anthology of Armenian literature recently published by the Turkish government is said to be the first book of its kind to appear in Turkey since the Armenian Genocide. Turkish Minister of Culture Istemihan Talay, who authored the book's preface, called the publication a "valuable insight into the culture and history of the Armenian literature." It is not yet known if the book includes works by Armenian writers executed by the Ottoman government in 1915. The Turkish government has also recently established an Institute for Armenian Research, which has so far focused on ways to improve Turkey's genocide denial tactics. The heightened interest in Armenian matters comes in the aftermath of discussion and affirmation of the Armenian Genocide in several parliaments of leading Western countries. At the same time, the Turkish Foreign Ministry summoned the Vatican's ambassador to again express Ankara's displeasure with Pope John Paul II's affirmation of the Genocide during his visit to Armenia last week. The Vatican also announced this week the beatification of Archbishop Ignatius Maloyan, leader of the Armenian Catholic community martyred in the 1915 genocide.
October
 1 - 5
The Nagorno Karabagh Republic (NKR) this week inaugurated two sections of a new highway constructed with funds collected by the Hayastan All-Armenian Fund in telethons held in 1999 and 2000. The 30 kilometers of roads cost $3.3 million to construct and will connect the Mardakert and Askeran and Martuni and Hadrut districts, respectively. They will eventually be linked by a 170-kilometer highway that will stretch from the north to the south of the republic's rugged terrain. Vahan Ter-Ghevondian, the Executive Director of the Fund said that tenders for the construction of an additional 33 kilometers will be held later this year. The total cost of the highway is estimated at $25 million, to be raised at future telethons.
Nagorno Karabagh President Arkady Ghoukasian underlined the importance of the road for developing the local economy. It is also a testament to NKR's desire to establish peace with Azerbaijan and eventually withdraw from the "buffer zone" it now controls. (Existing paved roads connecting most NKR districts pass through that zone.) Gagik Harutiunian, Chairman of Armenia's Constitutional Court, who is also Deputy Chairman of the Board of Trustees of the Fund, noted the importance of Diaspora participation in construction of the roads. He said some 200,000 Armenians around the world helped build the Goris- Stepanakert highway in 1995-99, which now links Armenia and Karabagh by one of the best roads in the region. He urged even greater participation in the construction of the north-south Karabagh highway.
October
 1 - 5
The American University of Armenia (AUA) this week celebrated its tenth anniversary. On September 21, 1991, the day when Armenians voted for independence in the popular referendum, AUA accepted the first class of 101 students. Since then, 902 students have completed their graduate studies at AUA in diverse fields that include international relations, law, business, information technologies and engineering. While some of the students continue their studies abroad, about 650 work in Armenia's public and private sectors. In addition to academic programs, AUA also includes several research centers and think tanks, and, according to its current President Harutiun Armenian, is becoming a regional education center. Since its establishment, AUA has been assisted by the Armenian General Benevolent Union (AGBU), a U.S.-based charity, and the University of California educational system. AUA has also received direct U.S. government assistance through a congressional earmark. This week, President Robert Kocharian awarded AGBU President Louise Simone with Armenia's highest civilian decoration, the Order of St. Mesrop Mashtots. Haroutiun Armenian and AUA's former President Mihran Agbabian were each awarded the Medal of Movses Khorenatsi, given for significant contributions in education and science.
October 
1 - 5
Armenian officials continued to insist this week that a decision by the country's communications monopoly to introduce a per-minute billing system for local phone calls was not valid. The new system was officially introduced September 1 amid widespread public dissatisfaction. Transportation and Communications Minister Andranik Manukian said that the government still hopes Armentel's decision, which he charged was made in violation of the contract, will be cancelled. He also threatened to take the company to court, should it try to enforce the per-minute billing. Ninety percent of Armentel is owned by the Hellenic Telecommunications Organization, with the rest controlled by the government.
October 
1 - 5
Main economic indices were up in August compared to previous months and solidified Armenia's economic gains this year over 2000 figures, Armenia's National Statistics Service reported last month. The Gross Domestic Product (GDP) grew by 7.7 percent in January-August of this year, when compared to the same period last year. Armenia's economic growth picked up in August and grew by 19.5 percent over July figures. A continuing surge in the construction sector (up 12.5% so far this year) and better showing in agriculture (up nearly 8%) contributed to the growth. In January-August, the negative trade balance continued to decrease, with exports up by 12 percent and imports down 3.4 percent. A modest growth in incomes, 16.7 percent in the private and 5.5 percent in the public sectors, was also reported, while consumer price index remained mostly stable.
October 2 The leader of the Armenian Democratic Liberal (ADL) party (Ramkavar-Azatakan), Ruben Mirzakhanian, pledges his party's full support for the candidacy of President Robert Kocharian in the presidential elections slated for 2003. Last month, the president announced his intention to seek a second term.
October 4 Officials close to President Kocharian confirm reports that the government has approved the "temporary use" of $4 million in proceeds from the country's privatization efforts to pay for a shipment of nuclear fuel from Russia. The government plans to repay the $4 million to the Armenian treasury with a new loan from the Commonwealth of Independent States (CIS) Interstate Bank. The payment for the nuclear fuel is essential to restart the Medzamor plant which has been shut down since July for maintenance. 
October 
5 - 12
President Robert Kocharian continued to permit the U.S. use of Armenia's airspace, which Armenia offered shortly after the September 11 terrorist attacks. According to Radio Free Europe / Radio Liberty, Azerbaijan is the only Caucasus state not to have publicly made such an offer. The U.S. needs over flight rights in the Caucasus to support the ongoing military operation against terrorist bases in Afghanistan. Defense Minister Serge Sargsian said this week that the U.S. has not yet requested the use of the Armenian airspace for strikes against targets in Afghanistan. He added "if we do receive [such a request] we will almost certainly give our permission." Having just returned from a visit to Tajikistan, Sargsian said it was unlikely that Armenian forces would directly participate in the anti-terrorist campaign, but that Armenia could provide some military aid.
Also this week, the Armenian Foreign Ministry issued a statement in support of the U.S.-led operation, noting that American officials "presented Armenia with the investigative evidenceŻ pertaining to the complicity of the Al Qaeda organization to the terrorist acts of September 11." Al Qaeda and its leader Osama Bin Laden are known to be based in Afghanistan and prior to attacks in New York and Washington have reportedly planned and executed a series of terrorist attacks against U.S. interests throughout the region. Al Qaeda and affiliated groups are known to support what they perceive as "Islamic causes" or conflicts pitting Muslim and non-Muslim peoples. They had earlier provided military assistance for Azerbaijan's war effort against Nagorno Karabagh.
October 
5 - 12
Ministers of Defense and National Security of Azerbaijan, Safar Abiyev and Namik Abbasov, have again stated that they see a need for military operations in order to gain control of Nagorno Karabagh. Azerbaijani media has stressed the urgency of launching the war now, while the international community is pre-occupied with Afghanistan. Last week, they received the blessing of the Azerbaijani Muslim leader, Sheikh-ul-Islam Allahshukur Pashazade, who told a local TV channel that if control over Karabagh cannot be gained peacefully, Armenian forces there "should be destroyed." Azerbaijani military have time and again said that all they need is an order from the President. However, when pressed for details, Abiyev's press secretary said that, since Azerbaijan believes that Karabagh is part of its territory, such an operation should be launched by the Interior Ministry and only then joined by regular military. Interior Minister Ramil Usubov has lately been one of the most restrained Azerbaijani officials in terms of militarist rhetoric. President Heydar Aliyev's son and successor Ilham commented on the confusing and contradictory comments by Azeri officials, saying that it "would be wrong to make this move in the present situation." In addition to familial responsibilities, Aliyev Jr. divides his time among three positions: first vice-president of the state oil company, deputy chairman of his father's ruling party and head of the Azeri parliament's propaganda team.
Meanwhile, some twenty Azerbaijani journalists, the largest such group to date, made a five-day visit to Armenia and the Nagorno Karabagh Republic this week, meeting with senior officials, civic and religious leaders. When asked by Armenian journalists if they were apprehensive about visiting after the public beating of a Karabagh Armenian human rights activist, during his visit to Baku earlier this month, one of the delegation members said that the "fact that we arrived means that we are certain that we are visiting civilized people here." Defense Minister Serge Sargsian, who met the group, again stressed that Armenians would never initiate new fighting. "But if it begins, then the Armenian side will be able to end it soon." All Armenian and NKR officials stressed their hope that the visit, organized by the Organization for Security and Cooperation in Europe (OSCE), will help dispel misunderstandings and facilitate mutual confidence-building.
October 
5 - 12
Member of the Turkish-Armenian Reconciliation Commission (TARC), former Armenian Foreign Minister Aleksandr Arzumanian, said in an interview this week that the fact of the Armenian Genocide cannot be negotiated. Another TARC member, Chairman of the Armenian Assembly of America Van Krikorian, told RFE/RL the sides were discussing the whole range of consequences of the Armenian Genocide. Meeting with academics, politicians and media, during their most recent meeting in Istanbul, Armenian members of TARC tried to gauge the public opinion in Turkey. "The first thing that needs to be done is to identify issues that divide us" said Krikorian. He also mentioned that the number of Armenian participants in TARC may increase by one or two by the next meeting that will take place in New York next month.
Meanwhile, Deputy Speaker of the German Parliament Antje Vollmer visited the Genocide memorial to lay a wreath "on behalf of Bundestag and all German people. We know that it was the first genocide in the modern historyŻ We never want to forget it, and we hope to build a future and new century without such violence." Also last week, the Armenian News Network Groong publicized a statement made by several dozen Jewish scholars and civic and religious leaders reaffirming the Armenian Genocide. The statement, signed both by Israelis and members of the Jewish Diaspora, noted in particular: "As Jews, we share many similarities with the Armenian people. We were both victims of genocide during the twentieth century and have survived despite those who would deny our right to exist."
October 
5 - 12
Foreign Minister Vardan Oskanian told Armenian parliamentarians this week that the Armenian Government was "seriously concerned" about the recent escalation of fighting in Abkhazia. Over the past week the fighting claimed lives of over a dozen ethnic Armenian residents in the area along the Black Sea coast that effectively broke away from Georgia following the 1992-93 war. Galust Sahakian, leader of Unity, parliament's largest faction, urged the government to "take certain steps" to ensure the security of the local Armenian population, while the head of the Armenian Revolutionary Federation (ARF) faction Aghvan Vardanian said that the parliament should consider sending a fact-finding group to the region.
Forces backing Abkhaz independence routed Georgian government troops in 1993 and have since remained outside of control of the Tbilisi authorities. Russian-led United Nations' peace-keeping forces have divided the warring sides and helped maintain relative calm in the area. Following bilateral negotiations, Abkhaz authorities allowed for a partial return of the ethnic Georgian population to Abkhazia. Since then, Georgian guerilla forces, reportedly backed by the government, have fought a low-intensity war, targeting Abkhaz forces, as well as peacekeepers and the local civilian population. Abkhazia's population remains ethnically diverse. In addition to Abkhaz, there is a large Russian, Armenian and Georgian presence. According to the 1989 census, the Armenian community in Abkhazia numbered 80,000 and was one of the largest ethnic groups in the area. Following years of fighting and economic privations, between 35-40,000 Armenians remain in Abkhazia today, according to a member of the Georgian Parliament Van Baybourtian.
The recent arrival of Chechen guerilla forces in Abkhazia dramatically escalated the fighting. Media reports suggest that a group of several hundred Chechens, who earlier retreated from Russian-controlled Chechnya into Georgia, crossed into Abkhazia and joined the local Georgian guerillas. It is in not yet clear if the Georgian government has approved of this move, but a senior member of the Georgian parliament suggested the country's powerful Interior Ministry facilitated transportation of Chechen forces. Earlier this week a combined Chechen-Georgian guerilla force entered at least two villages with large Armenian populations and brutally murdered local residents. About the same time, a helicopter carrying five UN observers was shot down in the area killing all on board. Abkhaz forces have since mobilized additional units and are said to have imprisoned some of the guerillas, including Chechens, and surrounded the rest. They also claim that in addition to Georgians and Chechens, the group includes some Azeris and Arabs.
The Georgian government said it will send forces to the area "to protect the local population" and another group of Chechen fighters are said to have arrived in recent days. Russia, whom Georgians accuse of providing air support to Abkhaz in the recent fighting, has sent troops to beef up the entire length of its border with Georgia. The Armenian government has been careful not to blame either side for the killings of Armenians, while UN officials blamed both sides for the unrest. Oskanian urged "caution and vigilance" and said that "we should not allow other interested parties to drive a wedge between Armenia and Georgia." He also said the government was in contact with both Georgian and Abkhaz officials to clarify the situation. Georgian President Eduard Shevardnadze is expected to visit Armenia later this month.
October 8 In a statement released by the Foreign Ministry, Armenia pledges its support for the previous day's launching of U.S. military operations in Afghanistan. Armenia also formally grants overflight permission to any U.S. military aircraft involved in the Afghan operations. The statement adds that Armenia stands ready to assist the United States-led campaign and stresses that the military strikes in Afghanistan are necessary to combat the threat of international terrorism. Romanian President Ion Iliescu postpones his planned visit to Armenia in the wake of the launching of the campaign, promising to visit Yerevan later in the month.
October 10 A ten-day national census is launched to provide an accurate determination of the country's population. The first census since the Soviet 1989 national census, the $3 million effort is financed largely by the international community. Armenia has suffered significant emigration as a result of the crippling economic effects of Azerbaijani and Turkish blockades.
October 11 In comments to a group of Azerbaijani journalists visiting Yerevan, Defense Minister Serge Sarkisian declares that Armenia will act as a "guarantor of security for Nagorno Karabagh." Sarkisian adds that although Armenia's annual defense budget is only $70 million, or roughly half that of Azerbaijan's, the Armenian military is highly trained and combat ready.
October 
11-12
Tavush District Governor Armen Goularian presents his agricultural cooperation proposal to a group of visiting Azerbaijani journalists. According to Goularian's proposal, Armenia and Azerbaijan would cooperate in developing 10,000 unused hectares of arable land along the 300-kilometer Tavush border area. The neighboring Armenian and Azerbaijani districts would jointly develop the land, share its water resources and establish new measures of economic and environmental cooperation. Azerbaijani officials, however, have consistently rejected such proposed cooperative initiatives, insisting that any cooperation can only follow a settlement to the Nagorno Karabagh conflict.
October 
12 - 19
Secretary of State Colin Powell Tuesday urged Members of Congress to remove the restrictions put in place by Section 907 of the Freedom Support Act in order to "reward Azerbaijan for their cooperation in the war on terrorism." In a letter sent to Chairman of the Senate Foreign Relations Committee Senator Joseph Biden (D-DE) and Ranking Member Senator Jesse Helms (R-NC), Secretary Powell said the U.S. urgently needs to help the Azeri intelligence and law enforcement agencies and work with the Azeri financial authorities to "track and disrupt assets of the terror network (Al Qaeda)." Secretary Powell told the senators that the Administration wanted help in passing legislation that would give it "a national security interest waiver" -- authority to temporarily lift the ban on aid in the interest of U.S. national security. Senator Helms favors repealing the ban on aid; Senator Biden's views on the topic have not been made public.
Armenian Assembly of America Board of Directors Chairman Van Krikorian said the organization would oppose the repeal or a blanket waiver but could be flexible and creative about eradicating terrorism in Azerbaijan. "We are opposed to a blanket waiver and we are opposed to repeal," he said. Krikorian said that Aliyev's government welcomed 1,000 Islamic fundamentalist Afghan freedom fighters into his country in 1993. They were engaged in fighting the Armenians in Nagorno Karabagh. 'There's no question that terrorists with whom the United States and others are at war operate in Azerbaijan. Since 1993, these terrorists have been fighting against Nagorno Karabagh,' he said. 'We are concerned... [that] any waiver of Section 907... not reward the same people who invited those Al Qaeda terrorists into the country, that is the existing government.'
Meanwhile, Azerbaijani reaction to the U.S. retaliation for the September 11 bombings has been mixed. While its leadership has expressed general solidarity, the Azerbaijani press reports opposition to the policy pursued by the U.S. and one leading daily wrote that some Azeris "interpret the [U.S.-led military] operations as a fight against Azerbaijan." Leader of the Azeri Muslims Sheikh-ul-Islam Allahshukhur Pashazade said last week he was opposed to "any military operations in Afghanistan," adding that the U.S. fight against terrorists is "turning into destruction of cities, villages and civilians."
Observers worry that repeal of Section 907 would embolden Azerbaijan and make its position in the Karabagh conflict even more intransigent. President Heydar Aliyev threatened again this week that Azerbaijan could pursue a military option, should it consider the outcome of peace talks unsatisfactory. There has been no progress in the peace process for months, after Azerbaijan reneged on a tentative framework agreement for settlement reached in negotiations with Armenia earlier this year. Aliyev's statement was the third such threat made by him this year and comes just days after the U.S. Ambassador in Azerbaijan Ross Wilson urged government officials to be more cautious in their rhetoric.
October 
12 - 19
In his address to the General Assembly of UNESCO this week, Foreign Minister Vardan Oskanian urged the Turkish government to cooperate in the restoration and preservation of the many Armenian monuments now located on Turkish territory. He specifically mentioned ruins of the medieval Armenian capital of Ani, near the Armenian-Turkish border, and the monastery on the island of Aghtamar, located on Lake Van. Since the 1915 Genocide, most cultural and historical monuments of Western Armenia have either been destroyed or neglected. For years, the Turkish government has tried to erase any signs of Armenian historical presence in the area and advertised popular tourist sites, such as Ani and Aghtamar, with no mention of their Armenian origin.
October 
12 - 19
Defense Minister Serge Sargsian arrived in China this week for several days of talks on military and political cooperation. Sargsian met with China's Vice-President Hu Jintao and Defense Minister Chi Haotian, and the officials agreed to expand bilateral cooperation. Armenia's late Defense Minister Vazgen Sargsian helped initiate bilateral military contacts when he visited China in October 1998. Since then, the two countries have cooperated on a limited scale in military procurement and training of Armenian personnel in the Chinese military academy. China and Armenia also cooperate in the chemical industry and recently established a joint scientific center in the Chinese province of Xinjiang. Sargsian also plans to visit Shanghai, China's largest city, to study ways to expand economic ties.
October 
12 - 19
The ITERA Corporation said this week it will "gradually" begin to reduce supplies of natural gas to Georgia and Armenia. The company has exclusive rights to supply the fuel, which is produced by Russia's monopoly Gazprom. ITERA cited growing debts for supplies as the reason for the move. The Armenian government said the new debts accumulated over the past months as Armenia has been importing twice as much gas as last year.
The government was forced to import more gas since it had also run into difficulty in purchasing fuel for its other major producer of electricity, the Metsamor nuclear power plant. Energy Minister Karen Galstian announced this week that nuclear fuel purchased in Russia has already arrived in Armenia and the plant will come back online early next month. Since its reactivation in the mid-1990s, Metsamor has provided over 40 percent of Armenia's electricity. This year's refueling of the plant has been delayed since August due to Russia's Atomic Energy Ministry's demand for a $4 million advance payment on the $13.8 million worth of deliveries.
One Armenian daily argued that the Russian companies' moves were a case of "inter-state blackmail." By threatening to halt gas supplies, ITERA was acting together with another Russian company, the state-owned electricity monopoly RAO UES, which is trying to take control of Armenia's electricity distribution networks. Western donors, such as the World Bank, had objected in the past to Russian companies' participation in networks' privatization on the grounds that they have a poor profit record. The Armenian government has been attempting to privatize the utility to stop the "huge financial losses." President Robert Kocharian last week criticized energy officials for the losses and said he would set up a special supervisory body to eradicate rampant corruption in the distribution networks.
October 
12 - 19
Abkhaz officials claimed this week that a combined Chechen-Georgian force suffered significant casualties and is now retreating towards Georgian territory following days of fighting. The group, said to number several hundred mostly Chechen fighters, entered Abkhazia two weeks ago. It briefly captured several villages, killing over a dozen residents, most of them ethnic Armenians, and shot down a UN helicopter. This week, Armenia reiterated its concern over the developments, with Foreign Minister Vardan Oskanian expressing hope that "the problem will not develop as much as to require Armenia's involvement." Abkhazia, in Soviet times an autonomous republic within Georgia, became de-facto independent following a short, but bloody, conflict with Tbilisi in 1992-93. Russian-led forces, acting under a United Nations' mandate, have since patrolled much of the area that divides rival forces.
Meanwhile, analysts pondered over reasons why Chechens joined the Abkhazia fight, which is miles away from the war-ravaged Chechnya. The same group was previously known to be based in the border areas of north-eastern Georgia. One writer suggested that following September 11 events, the Georgian government came under increased pressure from the international community to deal with the force, known to have ties with international terrorists. Officials in the Georgian capital were also reportedly exasperated with kidnappings of foreigners for ransom that have become rampant throughout the country and are widely blamed on the Chechens. Unable to disarm the group, the Georgian authorities are said to have tried to "solve the problem," by pushing the group further away from central Georgia. Chechens were also said to have been lured by potential "spoils of war" from Abkhazia's tourism earnings.
October 15 Interior Ministry departmental chief Mushegh Saghatelian is arrested by police in Yerevan and charged with perjury, using false documents, and other lesser offenses related to his efforts to fabricate evidence and testimony against President Kocharian and Defense Minister Serge Sarkisian in the October 1999 attack on the parliament. Officials allege that the Interior Ministry official attempted to coerce and bribe potential witnesses into providing false evidence to the investigator officials handling the case.
October 16 In his formal address to the Paris meeting of the UNESCO General Conference, Foreign Minister Vardan Oskanian calls on Turkey to cooperate with Armenia in the protection of historical Armenian monuments in eastern Turkey, specifically citing the Armenian churches, monuments and monasteries of the city of Ani.
October
 17-18
President Kocharian charges that Yerevan municipal authorities, led by former Mayor Albert Bazeyan, intentionally underreported revenue from the sale and rent of municipal land and facilities and pocketed the difference. According to Kocharian, reported profits from such municipal deals in 2000 were only 5 million drams (about $9100) while the profits for the first nine months of this year alone totaled more than 800 million drams, a significant discrepancy revealing the extent of the alleged corruption. Former Yerevan Mayor Bazeyan, having resigned his position in January, now heads the recently formed Hanrapetutiun (Republic) opposition political party, one of most vocal advocates for impeaching the president.
October 19 World Bank officials announce that it will release the second $15 million tranche of its loan package to Armenia within the next month. The World Bank loan covers Armenia's state budget deficit and was recently delayed by the unexpected 17 percent shortfall in tax revenue collection for the first nine months of the year. The third tranche of this loan is contingent on Armenia's successful completion of its planned privatization of the country's four energy distribution network facilities.
October 20 President Kocharian presides over a swearing in ceremony for the chairman and six remaining members of the economic arbitration court. Created earlier this year by the parliament, the court is empowered to oversee the resolution of commercial disputes involving the public and private sectors.
October 22 Prime Minister Andranik Markarian flies to France to undergo an emergency non-surgical heart procedure, confirming earlier rumors of health problems. The prime minister already underwent one major heart operation in 1999. In his absence, Industrial Infrastructure Minister David Zadoyan is handling the premier's duties.
October
 23 - 24
Arriving in Yerevan for a two-day state visit, Georgian President Eduard Shevardnadze briefs the Armenian government on the situation in the Armenian-populated villages of Abkhazia which were recently attacked by a joint Georgian-Chechen guerrilla force. According to news reports, 30-40 ethnic Armenians have been killed in the attacks. Meeting with President Kocharian, Shevardnadze also discusses Georgia's desire for the complete withdrawal of Russian forces from their base in the Armenian- populated southern Georgian region of Javakhetia. The Georgian president assures the Armenian officials that his government remains committed to earlier promises of economic development and aid for the impoverished Armenian community there and welcomes Armenian offers of assistance for Javakhetia. The Georgian president concludes his visit by signing a new bilateral treaty on friendship, mutual security and cooperation that commits both nations to refuse to enter into any alliance considered as threatening to the other country.
October
 23 - 24
Foreign Minister Vardan Oskanian meets with U.S. officials during a visit to Washington and discusses the course of relations between Armenia and Turkey, the situation in the Caucasus and the U.S. campaign against international terrorism. The foreign minister echoes concerns raised earlier in a letter by President Kocharian to President Bush that U.S. Congressional efforts to greatly weaken the ban on aid to the Government of Azerbaijan, known as Section 907 of the Freedom Support Act, will encourage Azerbaijan to resume its military campaign. Oskanian expresses his hope that the Congress will include additional precautions in the language that will provide some security guarantees for Nagorno Karabgh. Section 907 was imposed on Azerbaijan for its offensive uses of force and blockades of Armenia and Nagorno Karabagh.
October 
19 - 26
President Robert Kocharian said Thursday he was satisfied with a compromise deal reached by U.S. Senators on October 24, which gives U.S. President George W. Bush temporary power to partially change existing restrictions on American assistance to Azerbaijan in the interest of the ongoing counter-terrorist operations. U.S. Secretary of State Collin Powell requested the measure in a letter to Senate leaders last week. Kocharian, who commented on the U.S. action during a meeting with journalists from former Soviet republics, said that the waiver in its current form would not negatively affect the regional balance of forces or lessen chances for a Karabagh settlement. In a parallel measure, the Senate approved $4.6 million in military assistance to Armenia.
Prior to the Senate vote, Foreign Minister Vardan Oskanian met with Deputy Secretary of State Richard Armitage to discuss the anti-terrorist campaign and ways in which Armenia can assist in the U.S.-led effort. Armenia was one of the first countries to offer assistance to the U.S., sharing intelligence and allowing American aircraft the use of Armenia's airspace and bases for refueling. Azerbaijan, meanwhile, reportedly tied its cooperation with the U.S. to repeal of Section 907, which restricts U.S. assistance until that country ceases its blockades against Armenia and Nagorno Karabagh and takes demonstrable steps towards peace. Upon his return to Armenia, Oskanian issued a statement expressing satisfaction that the U.S. "did not cave in" to Azerbaijan's demands. He added that, most importantly, the year-long waiver takes into account the Karabagh peace process and specifically prohibits any U.S. military assistance to Azerbaijan that could be used against Armenia. Oskanian also expressed the hope that additional precautions would be built into the waiver.
Azerbaijan, which has lobbied for repeal of Section 907 for years, had a muted reaction to the Senate action. In a phone conversation with Armitage, President Heydar Aliyev reportedly expressed his dissatisfaction with the substance of the amendments. A leading Azerbaijani daily complained that the measure "essentially forces Azerbaijan to settle the Karabagh conflict by exclusively peaceful means."
Commenting on the vote, Speaker of the National Assembly Armen Khachatrian said that the fact that the U.S. Congress had to make changes to Section 907 in order to secure Azerbaijan's cooperation in the anti-terrorist campaign does not speak well of Azerbaijan's authorities. It is also an indication that the international terrorist network has become entrenched in Azerbaijan, he said. Khachatrian was alluding to Azerbaijan's long-standing cooperation with Islamic radicals, recruited by the Aliyev regime to fight against Karabagh Armenians. Most of over 1,000 Afghani fighters, hired by Azerbaijan in 1993 to fight in Karabagh, came from the Islamic Party of Afghanistan (later part of the Taliban movement).
October 
19 - 26
President Heydar Aliyev resorted to renewed war threats this week in a continued effort to gain political leverage at the expense of Armenia and Nagorno Karabagh. Azerbaijani tactics have so far led to a deadlock in negotiations, which are mediated by the Organization for Security and Cooperation in Europe (OSCE). Meeting with the Chairman of the OSCE Parliamentary Organization Adrian Severin, Aliyev lambasted the efforts of France, Russia and the United States, which lead the international mediation effort. He said that unless the OSCE delivers a peace proposal that complies with his interests, Azerbaijan "will have to start a war." The statement coincided with a warning issued by Turkish Foreign Minister Ismail Cem that some Caucasus conflicts may reignite. "Some people have the idea that this is the right moment to profit, to settle accounts," Cem told a conference in Brussels, shortly after his visit to Azerbaijan. In an unusually strong reaction to the ultimatum, Armenian Defense Minister Serge Sargsian said the next day that another military campaign initiated by Azerbaijan "would mark the beginning of Azerbaijan's final defeat." President Robert Kocharian, while stressing that Armenia only sees a peaceful solution to the conflict, endorsed Sargsian's remarks, saying the entire Armenian leadership shared this view. Nagorno Karabagh President Arkady Ghoukasian said that any renewed aggression from Azerbaijan would be met with a decisive rebuff. He also repeated that fighting cannot resolve the conflict.
Meanwhile, newly-appointed U.S. Envoy for Nagorno Karabagh Rudolf Perina made his first introductory visit to the region this week. In Azerbaijan, he surprised local journalists by confirming the existence of the "Paris principles," a framework agreement reached by Aliyev and Kocharian in negotiations held in France and the United States earlier this year. Aliyev has since reneged on this agreement and subsequently denied that it ever existed. Perina warned against any party trying to use the complicated international situation to settle old scores. He said that a new visit by OSCE mediators to the region planned for next month would give a fresh boost to the peace process.
October 
19 - 26
Georgian President Edouard Shevardnadze and his Armenian counterpart Robert Kocharian discussed bilateral relations between the two neighboring countries and signed a new comprehensive treaty on "Friendship, Cooperation and Mutual Security" during Shevardnadze's official visit to Armenia this week. Both Presidents said the new agreement opened "serious prospects" for strengthening bilateral cooperation in all areas. In particular, the treaty includes a clause that obliges both parties to refrain from joining alliances considered hostile to either country. The clause is important, because of increasing concerns that Georgia may be pressured by Turkey and Azerbaijan into joining such an alliance. Shevardnadze insisted that "no treaty signed by Georgian leaders will ever be against Armenian interests." At the same time, despite close military cooperation with Russia, Armenia has repeatedly voiced concern over some Russian moves, such as the imposition of a visa regime, that hurt Georgia. Both countries receive most of their natural gas from Russia and have been subjected to periodic pressure on that account.
Armenian officials have also expressed repeated concerns about the status of Armenian communities throughout Georgia. Earlier this month, an estimated 16 ethnic Armenian civilians were killed when fighting briefly resumed in Abkhazia. Kocharian repeated Armenia's interest in the settlement of the Abkhaz-Georgian conflict, and resumption of railway traffic through Abkhazia, in particular. Shevardnadze, in turn, pointed to what he termed "serious differences" between that conflict and the one in Nagorno Karabagh. He added that the international community recognizes these differences and proceeds accordingly. While in Armenia, Shevardnadze renewed his offer to establish a "Caucasus Security Pact." He said that Turkey would have to play an important role in any such pact and said he "looks with hope" to the activities of the Turkish-Armenian Reconciliation Commission.
Shevardnadze's visit to the Armenian Genocide Memorial in Tsitsernakaberd created a negative reaction in neighboring Azerbaijan, where commentators accused Shevardnadze of a "lack of sensitivity to Azerbaijani interests" in spite of "repeated Azerbaijani concessions on energy transportation issues."
October 
19 - 26
Armenia's Prime Minister Andranik Markarian flew to France this week for a medical examination and doctors recommended that he remain in the hospital for at least several days. Markarian, who is 50-years old and underwent a heart operation two years ago, was said to be in a good condition, but in need of "urgent treatment." Meanwhile, government spokeswoman Mary Harutiunian dismissed speculation that Markarian may resign due to his health problems. She added that he is expected back at work next week. Prior to leaving for France, Markarian appointed Minister for Industrial Infrastructure David Zadoyan as acting Prime Minister.
October 
19 - 26
Armenia's Gross Domestic Product (GDP) grew by nearly ten percent during the first three quarters of the year, the National Statistics Service reported this week and President Robert Kocharian called it the largest economic expansion since Armenia became independent a decade ago. Growth was strongest in the construction and agriculture sectors, where annual gains were at 17.4 and 11.8 percent respectively. Armenia exported 11.6 percent more products than a year ago, while imports (mostly fuel) decreased by 2.3 percent. Kocharian told a government session on Thursday that he was hopeful that the robust growth will continue in spite of the worldwide recession. He again stressed the importance of internal political stability for Armenia's economy to maintain the current progress. At the same time, Kocharian criticized energy and government revenue officials for shortfalls in collection of payments and taxes and urged them to "rectify shortcomings" in coming months.
October 
19 - 26
The Armenian government remains resolute in opposing the introduction of per-minute charges for local telephone communications, President Robert Kocharian told journalists Thursday. Transport and Communications Minister Andranik Manukian repeated on Wednesday that the policy introduced by the country's communications monopoly Armentel as of September 1 is not valid. The government, which holds a minority stake in Armentel, and the company have failed to reach an agreement on a new tariff system earlier this year. Speaking during the cabinet's weekly question and answer session in Parliament, Manukian warned that the government would consider any disconnection of telephone service due to non-payments as a "gross violation" of contract and basis for suspension of Armentel's license. The Armenian government refuses to authorize the per-minute payment system contending that the Hellenic Telecommunications Organization (OTE), which holds ninety percent of Armentel's shares, has not fulfilled its investment obligations.
October 26 In a public rally organized jointly by the opposition Hanrapetutiun (Republic) party, the People's Party of Armenia, and the National Unity Party, between 10,000 and 15,000 demonstrators demand the resignation of President Kocharian. The opposition organizers announce plans to step up their effort to gather signatures on a parliamentary petition seeking to convene impeachment proceedings.
October 30 A special cabinet meeting approves the government's draft 2002 state budget, allowing it to be presented to the parliament the next day, as required by law. The state budget sets revenues at 214.3 billion drams ($380 million), an increase form the 2001 budget's 193 billion level, and sets expenditures at 257.7 billion, roughly the same level as this year, once again reflecting a budget deficit. 
October 31 U.S. President George Bush telephones Armenian President Kocharian and conveys his appreciation for Armenian support of the international campaign against terrorism. The two presidents also discuss the status of the mediation effort seeking a resolution of the Nagorno Karabagh conflict. President Kocharian also welcomes Romanian President Ion Iliescu to Yerevan for discussions on economic and trade cooperation.
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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