December 2001 Events
December
 3 - 7
An Armenian member of the Turkish-Armenian Reconciliation Commission, former Armenian Ambassador to Syria David Hovhannissian, told journalists in Yerevan this week that the recent TARC meeting in New York produced serious results, noting in particular that the Commissioners have asked the International Center of Transitional Justice to evaluate the applicability of the 1948 United Nations Convention on Genocide to the Armenian Genocide of 1915.
Hovhannissian said, "The raising of this problem is a serious result... and the settlement of Armenian-Turkish relations is one of the most important factors of Armenia's security." He added that TARC would continue its work as long as positive results could be expected. The TARC statement, published following the New York meeting, also said its recommendations regarding simplifying the visa regime, opening roads and development of trade and economic relations would eventually be presented as proposals to the Armenian and Turkish governments. The next meeting of the Commission is scheduled for January 21, also in New York.
December
 3 - 7
Armenia marks the 13th anniversary of the earthquake which killed some 25,000 people and left over half a million homeless. President Robert Kocharian visited Gyumri to lay a wreath in memory of victims. Speaking earlier this week, Construction Minister David Lokian promised that rebuilding in the devastated regions will be completed before the end of next year. Lokian told a news conference in Yerevan that despite the need to find additional funding, a three-year government plan to reconstruct houses and public infrastructure in the Lori and Shirak provinces is proceeding on schedule.
The rebuilding program, worth $150 million channeled primarily from external sources and employing some 6,000 local workers, was launched in 2000. An additional $60 million will be needed in order to complete housing for the remaining 14,000 families who are still without their own homes. Lokian said that almost 2,000 families were settled in houses and apartments this year. Over half of them, living in the northern cities of Gyumri and Vanadzor, acquired new apartments under a USAID-funded housing scheme worth $15 million. Not all the living spaces are new: under the USAID program, families are issued certificates giving them the right to purchase existing space and many are provided grants to complete construction or repairs. American billionaire Kirk Kerkorian's Lincy Foundation is financing a major portion of the construction work. Other major contributions come from the U.S. Huntsman Corporation, the All-Armenian Fund Hayastan and World Bank's Social Investment Fund.
December
 3 - 7
A U.S. District Court judge in California ruled this week in favor of a previous judgment allowing heirs of Armenian Genocide victims to move forward in their class action suit against the New York Life Insurance Company. The 1999 class action suit was filed on behalf of Armenians living in the state who have attempted to collect life insurance payments from the company. New York Life had argued that the case should be heard in Europe, not California. Martin Marootian, the lead plaintiff in the case, was "thrilled" about the decision. "After nearly 100 years, things are going in the right direction," he said. The Armenian Assembly recognized Marootian earlier this year for his courage and perseverance as the lead plaintiff.
December
 3 - 7
The President of the Nagorno Karabagh Republic Arkady Ghoukasian has asked the Chairman-in-Office of the Organization for Security and Cooperation in Europe (OSCE) for an OSCE-mandated fact-finding mission to visit Karabagh. Ghoukasian's request comes in response to ongoing Azerbaijani efforts to discredit Armenia and Nagorno Karabagh, by accusing both of support for terrorism and organized crime, damaging the environment and other serious allegations. Azerbaijani officials of all ranks have repeatedly leveled unsubstantiated accusations at Armenians, but its propaganda campaign has intensified recently at international forums like the United Nations and Council of Europe. Ghoukasian noted that Azerbaijan's posture hampers the Karabagh peace process, and indicated he hoped that an OSCE study would end Azerbaijan's disinformation campaign.
Speaking at the OSCE Ministerial meeting earlier this week, Foreign Minister Vardan Oskanian said that no "amount of ambiguous diplomatic language" by Azerbaijan can obscure the fact that NKR has earned the independence it now has. He also called Azerbaijan's claim on Nagorno Karabagh "baseless" and said that its independence was established in a legal manner. In his turn, Chairman of the OSCE Parliamentary Assembly Adrian Severin renewed the proposal to establish a special commission on Karabagh. He said similar commissions helped improve the environment for negotiations in other regional conflicts. Azerbaijan's Foreign Ministry reacted to the NKR President's proposal by saying that Baku would have to agree to the composition and agenda of any OSCE mission.
December
 3 - 7
The number two person in Azerbaijan's state hierarchy and loyal ally of President Heydar Aliyev, Parliament Speaker Murtuz Aleskerov this week criticized proponents of a new war against Karabagh. He said that the "enemy is strong" and Azerbaijan is "not ready" for a new confrontation. Azerbaijani commentators said the statement was the result of international pressure on Azerbaijan to stop its military rhetoric, as well as a reflection of the real state of affairs. Shifting focus, Aliyev allies unleashed a barrage of criticism against the opposition. Heydar Aliyev's brother Jalal, who is a member of Parliament, called opposition political parties and press "enemies of Azerbaijan" and claimed that they "support the Armenians." He said that since the opposition press is Azerbaijan's enemy, "just like Armenians," it should be "annihilated." Parliamentarians then turned to a discussion of amendments that would limit the "anarchy in press."
December
 3 - 7
Armenia's National Assembly has established a temporary commission to review separate constitutional reform packages prepared by President Robert Kocharian and opposition deputies earlier this year. The commission, chaired by Deputy Speaker Tigran Torosian of the governing Republican Party, includes representatives from all political parties and groups represented in parliament. The presidential proposal was prepared by Justice Minister David Harutiunian and a group of experts and is in line with Kocharian's pledge made during the 1998 presidential elections. The proposal, approved by the Council of Europe last June, has been termed a "new edition" of Armenia's 1995 Constitution that provides for a "semi-presidential" form of government. If approved by parliament and popular referendum, it will strengthen the power of Armenia's judiciary, legislature and cabinet, and will also lift the controversial ban on dual citizenship.
Meanwhile, one of the main authors of the current Constitution, parliament's former top legal expert and now a senior member of the opposition People's Party argued last month that the "semi-presidential" form of government has failed in Armenia. Vladimir Nazarian, previously a strong proponent of the concept that provides for executive responsibilities to be shared by the president and prime minister, now believes that Armenia should have either a presidential or parliamentary form of government. Shavarsh Kocharian of the National Democratic Party and Frunze Kharatian of the Communist Party (both are members of the constitutional commission) are championing the latter option. This week they received tentative backing from several other opposition groups and will now strive for parliamentary approval for their joint proposal to be put to popular referendum along with the President's.
December
 3 - 7
President Robert Kocharian ordered the dismissal of Energy Minister Karen Galstian this week after the deadline set for collection of outstanding electricity bills expired. Galstian was a veteran official at the Energy Ministry, having led the department since May of last year. Earlier, he served as Deputy Energy Minister for eight years. Armen Movsisian, previously the deputy head of the State Committee for Water Resources and, earlier, Deputy Minister of Energy, will replace Galstian. Movsisian pledged to overhaul Armenia's energy sector to stop the drain on Armenia's budget and reduce financial losses. Kocharian had earlier called for establishing "law and order" in the corruption-plagued sector.
December
 3 - 7
Television remains the most popular source of news in Armenia, according to a recent poll conducted by the government's Department of Information and Press. News programs of the Armenian Public Television and privately-owned Prometevs TV, the only two channels that can be viewed nationally, are the most popular. TV viewers in Yerevan and adjacent areas have a choice of some dozen local and foreign channels. Only a quarter of the respondents consider newspapers an important information source. Among daily newspapers, privately-owned Aravot is most popular, followed by centrist Azg, official Hayastani Hanrapetutiun and nationalist Hayots Ashkhar and Yerkir.
December
 7 - 14
Turkish members of the Turkish-Armenian Reconciliation Commission undercut the initiative this week with a directive to the International Center for Transitional Justice to halt its study regarding the applicability of the 1948 UN Genocide Convention to the Armenian Genocide. Viewed as the last straw, the four Armenian Commissioners immediately informed TARC moderator David Phillips that TARC "would not proceed." Congressional Caucus on Armenian Issues Co-Chairs Joe Knollenberg (R-MI) and Frank Pallone Jr. (D-NJ) echoed the Armenian Assembly's disappointment. The two Congressmen said, "Unfortunately, the Turkish Commissioners by their actions and the Turkish government by its inaction have probably doomed TARC."
The Turkish Commissioners' action, which breached fundamental TARC agreements, was only the latest effort to undermine the Commission in what is widely viewed as a Turkish Government-led campaign. Despite calls from within TARC to normalize relations, a move widely reinforced by the U.S. and other governments, Turkish leaders reiterated their hard-line approach that Turkish-Armenian dialogue would only follow after Armenia "returned" Karabagh to Azerbaijan. In December, the Turkish Government refused to participate in a NATO exercise in Armenia "unless Armenia withdrew from the occupied territories (of Azerbaijan)." Only last week, following Secretary Colin Powell's visit during which he was reported to have raised the issue of current Turkish-Armenian relations, Turkish Prime Minister Bulent Ecevit told the Russian-language daily Ekho that diplomatic relations between Armenia and Turkey will resume "after Armenia ends the occupation of Azerbaijani territory...."
Alexander Arzoumanian, Armenia's former foreign minister and a TARC Commissioner told a Radio Liberty / Radio Free Europe interviewer later this week that "mutual trust and respect for agreements" comprises the main principles on which an undertaking such as TARC is based. He said Turkish members violated these principles and their Armenian counterparts were forced to stop their participation in the Commission.
December
 7 - 14
Hundreds of Armenians gathered in one of Yerevan's central squares to remember the victims of the September 11 terrorist attacks in the United States. At 6:46 PM (9:46 AM U.S. ET) last Tuesday, exactly three months from the moment when the first hijacked plane flew into New York City's World Trade Center, Armenians with candles lit and heads bowed joined people around the world for a moment of silence, followed by the Armenian and American anthems. The recently appointed U.S. Ambassador to Armenia John Ordway thanked the Armenian people for the expression of sympathy and noted that the terrorist attacks were aimed not just at the U.S., but the entire world.
Meanwhile, U.S. Secretary of Defense Donald Rumsfeld is expected to visit Armenia, Azerbaijan and Georgia to express gratitude to the three countries for their assistance in the U.S. military campaign in Afghanistan. All three countries granted U.S. planes over flight rights en route to the area of operations in Central Asia. During his stop-over in Armenia, Rumsfeld will meet with President Robert Kocharian and Defense Minister Serge Sargsian to discuss future cooperation. Foreign Minister Vartan Oskanian said the visit will be "important" for bilateral relations. Rumsfeld will become the most senior U.S. official to visit Armenia in recent years.
December
 7 - 14
U.S. investments in Armenia doubled this year, Chairman of the American Chamber of Commerce in Armenia Tom Samuelian told a conference in Yerevan. He said the total investments amounted to $20.6 million, including $14.9 million in foreign direct investments (FDI). According to Armenian government's data, total foreign investments in the first three quarters of the year amounted to $88.4 million, including $63.3 in FDI, a substantial decrease from 1998-2000. Russian and Greek companies continue to top the list of largest investors.
U.S. Ambassador John Ordway noted failure to enforce legal acts and contracts as the main obstacles for potential investors. Samuelian suggested placing all business-related legislative acts and regulations on the Internet as a partial solution to the problem. Deputy Minister of Industry and Trade Armen Grigorian, who participated in the seminar, extended the government's support for the idea, but added that implementation may take a few years.
The overall decrease in investments this year is largely accounted for by privatization failures. The government, in particular, did not succeed in privatizing the electricity distribution networks, as well as Armenia's largest cement factory, while the takeover of major chemical and electronics plants has been postponed.
Armenia registered a considerable increase in its exports to the United States. Armenian goods, mostly jewelry and clothes worth $24.6 million, had been exported to the U.S. in January-September of this year, a more than 40 percent increase over last year's figures. Armenia's exports to the U.S. compare favorably with Azerbaijan's ($18.4 million) and Georgia's ($18.9 million) over the same period.
December
 7 - 14
Speaker of the Georgian Parliament Nino Burjanadze urged a further expanded bilateral relationship during a two-day visit to Yerevan this week. Meeting with President Robert Kocharian, Burjanadze pledged that Georgia "would never take a single step that would damage Armenia's interests." She added that Georgia will use its good relations with Azerbaijan and Turkey "for the welfare of Armenia, just like Armenia can facilitate the improvement of our relations" with Russia. Moscow has an uneasy relationship with the government in Tbilisi, which it accuses of harboring rebel Chechen forces on its territory. Azerbaijan and Turkey seek to isolate Armenia politically and economically. The Georgian speaker promised to facilitate Armenia's participation in all regional projects. Burjanadze also praised Armenia's position on Javakhk, an Armenian-populated region within Georgia.
Talks between Armenian and Georgian leaders focused on reactivation of the Georgian-Russian railroad through Abkhazia. The Georgian government had previously refused to reopen the railroad until the conflict with Abkhazia is settled, but recently indicated a change in its position. The route would give a boost to Armenia's trade with Russia and Europe. Currently, Armenian companies are forced to bypass Abkhazia using more expensive shipping options across the Black Sea. Burjanadze told reporters that Georgia would be willing to open the railroad, should Russia and Armenia successfully influence Abkhaz authorities to allow more Georgian refugees to return to the area. Burjanadze also pledged to improve the Georgian transit regime for goods originating in Armenia and thanked Armenian leaders for their patience in Georgia's re-payment of a $19.6 million debt to Armenia. The re-payment was re-scheduled earlier this year due to Georgia's inability to pay.
This was Burjanadze's first trip abroad since her election last month following a political crisis in Tbilisi, which led to resignation of her predecessor Zurab Zhvania and the entire Georgian cabinet.
December
 7 - 14
Over 40,000 new jobs were created in Armenia so far this year, President Robert Kocharian told a press conference this week. Kocharian pledged creation of at least 40,000 jobs at his address to the nation late last year. Kocharian and Industry and Trade Minister Karen Chshmaritian said that the figure does not include temporary or seasonal jobs. They said expansion at re-activated enterprises and establishment of new ones, mostly in manufacturing and construction sectors, made the increase in jobs possible. According to official statistics, growth of the Gross Domestic Product (GDP) in the ten months of the year reached 9.6 percent. Speaking late last week, the President's chief economic advisor Vahram Nercissiantz argued that much of the growth so far mainly benefited Armenia's rich, who in turn are "dodging their state responsibilities by evading taxes." In his report to parliament earlier this week, Chairman of the Central Bank Tigran Sargsian confirmed that more than 40 percent of business activity in Armenia continues to be unreported. The government hopes to do a better a job of clamping down on tax evasion to make the planned increase of government revenue possible. Parliamentarians voted today to increase fines on companies that underreport their profits.
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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