August 2002 Events
August 1 Armenian President Robert Kocharian formally signs into law a recently adopted bill overturning the electoral reforms enacted in December 2000. The new law increases the number of parliamentary seats based on single-mandate constituencies from 37 to 56, and decreases from 94 to 75 the number of seats elected on a party-list, or proportional basis. The opposition harshly criticizes the law and the Armenian Revolutionary Federation (ARF) condemns it as a violation of a standing multiparty agreement. The law also alters the composition of the Central Electoral Commission, reducing its members from 13 to 9, with three members to be appointed by the president and the remainder by the six political parties represented in the parliament. 
August 1 Deputy Minister of Industry and Economic Development Tigran Davtian announces that the Armenian application to join the World Trade Organization (WTO) "has overcome the remaining major hurdles" and that he "expects to formally conclude its six-year accession talks by the end of next month." Recent talks held in Geneva reportedly reached important new compromise agreements on the outstanding issues of agricultural subsidies, customs procedures, and the protection of intellectual property. Although still subject to parliamentary ratification and review by the Armenian Constitutional Court, the agreements are seen as a significant move closer to Armenia's ascension to the 144-nation trade body. 
August 2 The Armenian Foreign Ministry issues a statement in response to a critical declaration by the European Union (EU) questioning the legitimacy of the upcoming presidential election in Nagorno Karabagh. The Foreign Ministry statement categorizes the EU criticism as "inappropriate" and defends the right of the Karabagh population to hold democratic elections "without the positive or negative assessment of any outside body." Armenia also notes that the EU position unnecessarily complicates the mediation effort of the Organization for Security and Cooperation in Europe (OSCE).

August 2
International organizations this week joined Armenians around the world to protest the Israeli government's plan to confiscate a bulk of the Baron Der property of the Armenian Church north of Bethlehem while rendering the rest virtually unusable. Following unsuccessful negotiations with the Israeli Defense Forces (IDF), the Armenian Patriarchate of Jerusalem launched an appeal in the Israeli Supreme Court earlier this week to reverse the confiscation order. A decision of the court is expected by August 12.
The New York-based National Council of the Churches of Christ, which represents 50 million Americans in 140,000 congregations, sent a letter to the Israeli Prime Minister Ariel Sharon protesting the confiscation plans and expressed concern that "this violation does not bode well for other religious minorities residing in Israel." The Special Rapporteur on Freedom of Religion and vice-president of the United Nations Human Rights Commission Abdelfattah Amor has also taken up the issue with the Israeli government. 
The 35-acre Baron Der area lies south of Jerusalem with Bethlehem's Aida Palestinian refugee camp to its south. The Jewish settlement of Gilo is to its north, and the Rachel's Tomb, one of Judaism's holy sites, to the east. It includes around 1,600 olive trees, a monastic building that serves as a religious retreat for the Armenian clergy, as well as ancient tombs and caves. The olive trees, some of them 500 years old, traditionally supply oil to holy Christian sites such as the Holy Sepulcher in Jerusalem and the Church of Nativity in Bethlehem. The Armenian Church, whose presence in the Holy Land dates back sixteen centuries, has owned Baron Der since 1641. 
According to press reports, Israeli forces entered the property last year taking over the monastic building as military headquarters and building a military road through the area, uprooting some of the olive trees. It was not until a few weeks ago that Israeli plans to build a five-meter security wall right through the middle of the property became public. Local observers suggested that Israeli actions in the Baron Der area are part of the overall objective to annex the areas around Rachel's Tomb, which is nominally in the Palestinian territory. Israelis deny this claim saying that the wall is designed to protect Jerusalem from Palestinian attacks. 
Whatever the true intention, the Baron Der area is likely to lose any practical use should the present plans for construction of the wall materialize. The Israeli authorities have promised the Armenian Foreign Ministry to hold off on construction until the Supreme Court's verdict is announced next week. But sources close to the Patriarchate were informed by their Israeli interlocutors that the confiscation order is irrevocable. 

August 2
International mediators from France, Russia and the United States said meetings between Armenian and Azerbaijani presidential envoys in the Czech Republic earlier this week were "useful and constructive." For the second time since May, Deputy Foreign Ministers Tatul Margarian and Araz Azimov met with the mediators at a hotel outside Prague and then proceeded to the Karlovy Vary resort for "unofficial discussions." Russia's representative in the talks Nikolai Gribkov said the mediators were planning to visit the region again by the end of the year. Prior to the meeting, Azerbaijani president's chief foreign policy aide Novruz Mammadov said the sides were not in a "good mood" and he expected no major result from the envoys' meeting. The "good mood" observed during talks between Presidents Robert Kocharian and Heydar Aliyev over a year ago faded after the Azerbaijani side introduced additional demands to the framework document developed in high-level talks in France and the United States, known as the Paris Principles. 
The rapport between the two Presidents, who have not see each other for close to a year, has deteriorated further after Aliyev's comments in the press that reportedly misconstrued the content of last year's talks in order to instigate internal political tensions in Armenia. Rasim Musabekov, a veteran Azerbaijani commentator, described Aliyev's recent statements on agreeing to Nagorno Karabakh's reunification with Armenia in exchange for a territorial compensation as "preparation for capitulation." But speaking late last week at a graduation at the Turkish-run Azerbaijani military academy, Aliyev once again did not rule out use of military force to gain control over what he termed are "Armenian-occupied territories." 

August 2
Ankara University Professor Hassan Koni was quoted by the Armenian press this week as predicting that "communications between the cities of Gyumri and Kars may be resumed within a year" should political forces allied with the ex-Foreign Minister Ismail Cem win in the November general elections. Koni said these forces would strive to integrate Turkey, as well as the Caucasus, into the European Union. Cem and his Armenian counterpart Vartan Oskanian held two rounds of talks earlier this year, but failed to reach a breakthrough before Cem's abrupt resignation from the government. Koni has also suggested to route the Baku-Ceyhan oil pipeline via Armenia, which would be "both politically and economically more expedient."
Koni's comments are somewhat surprising considering that as recently as last year he referred to Armenia as a "sick man of Caucasus" that has to "come out of the Cold War syndrome" and drop its national interests for the sake of normal relations with Turkey. He was further contradicted by a member of Cem's New Turkey Party Gonal Saray who insisted that Armenia should first open "a corridor between Azerbaijan and Nakhichevan." Following that step, Saray promises to put pressure on Azerbaijan to normalize relations with Armenia." An Armenian commentator Mkrtich Zardarian said last week that the upcoming elections in Turkey would have little impact on relations with Armenia, as long as there is no change in the attitudes of the Turkish military.

August 2
The number of tourists visiting Armenia this year is expected to remain close to last year's record, when Armenia marked the 1700th anniversary of the adoption of Christianity, Deputy Minister of Trade and Industry Ara Petrosian said this week. Nearly 120,000 people visited Armenia last year, up from just 45,000 in 2000. The hotel infrastructure that included just two hotels a few years ago has now grown to fifteen and more are in construction. Petrosian said that hotel owners were satisfied with the level of bookings so far this year, as many of them had to reduce their rates due to the growing competition in the sector. Armenia's nascent tourist industry has been constrained by the shortage of decent and inexpensive hotels, as well as the poor quality of the national airlines. Hovanes Yeritsian, the Head of the Civil Aviation Administration that oversees the ailing Armenian Airlines, was replaced this week by Samvel Margharian, a former pilot and deputy head of the administration. Travel agencies have also complained that recovering industrial enterprises have had a negative impact on environmental conditions in some parts of Armenia and have hurt tourism there.

August 2
Residents of at least two Georgian districts that lie along the proposed route of the Baku-Ceyhan pipeline have begun collecting signatures against the project, according to press reports. Georgian officials have long viewed the pipeline as an important source of income, and a possible solution to many of the country's economic problems. But locals in districts such as Tsalka and Borjomi in central Georgia, and in Gardabaani, on the border with Azerbaijan are not convinced the pipeline will benefit them directly. Opinion polls have shown that many Georgians believe the pipeline would only prop up the authorities, which are widely seen as corrupt and inept. Social and environmental non-government organizations have also criticized plans by the BP-led consortium to tap into billions in public funds from organizations like the World Bank. Meanwhile, Azerbaijani President Heydar Aliyev has ordered a transfer of as much as $118 million, collected from Western companies in exchange for their right to prospect for oil in Azerbaijan, to fund the Azerbaijani portion of the Baku-Ceyhan pipeline.
August 2 Improving relations between Azerbaijan and Russia have apparently forced former Azerbaijani leader Ayaz Mutalibov (1990-92) to leave Moscow for an undisclosed country, according to Russian and Azerbaijani press reports this week. Mutalibov fled to Russia following a coup against him in 1992 and he later received political asylum in the country. But this week, the Ministry of National Security (MNS) accused Mutalibov of plans to overthrow the current Azerbaijani government. Several opposition parties were also involved in the plot, said the MNS statement. In the past, such accusations resulted in widespread arrests of opposition activists, and banning of parties. Meanwhile, for the first time since its independence, Azerbaijan is taking part in joint military exercises with Russia. 
August 6 In a telephone conversation President Robert Kocharian and Azerbaijani President Geidar Aliyev agree to hold a meeting on 14 August in Sadarak, along the Armenian border with Nakhichevan. The two leaders have met a dozen times since July 1999 in a series of direct talks attempting to resolve the Nagorno Karabagh conflict. The meetings are separate from, but serve as an indirect supplement to, the mediation effort of the OSCE.
August 7 The newly reconstituted Central Electoral Commission convenes its first meeting and sets presidential elections for February 19, 2003 and parliamentary elections for May 25, 2003. The nine-member commission was revamped with new appointments the previous day and consists of six members appointed by the political parties with representation in parliament and three members directly appointed by the president.
August 9 Yerevan Police Chief Major General Ashot Gizirian is named the new head of the Interior Ministry's anti-corruption department. The appointment is controversial as Gizirian was recently accused of assaulting a parliamentarian while in detention. In addition to combating corruption, Gizirian will also head the ministry's effort to fight organized crime, narcotics smuggling and other crimes. 
August 2 - 9 For the first time, a team of U.S. observers headed to Nagorno Karabakh this week to join other international representatives monitoring the upcoming presidential elections due to take place this Sunday, August 11, 2002. The team includes former U.S. Foreign Service officials with extensive election monitoring experience. The NKR government has invited a total of one hundred independent international observers from the United States, France, Russia, Great Britain, Italy and other countries. 
Since its referendum for independence from the Soviet Union and Azerbaijan in 1990, two presidential, three parliamentary and two local government elections have been conducted in Nagorno Karabakh, all monitored by international observers. The most recent parliamentary elections (Summer 2000) were termed the most transparent, free and fair in the entire South Caucasus region.
The upcoming presidential elections, which will take place three days before a scheduled meeting between Armenian President Robert Kocharian and Azerbaijani President Heydar Aliev, have infuriated official Baku, which still considers Nagorno Karabakh part of its territory. At the behest of the Azerbaijani Foreign Ministry, the European Union (EU) called the upcoming presidential elections in Nagorno Karabakh "illegitimate". In response, the Nagorno Karabakh Foreign Ministry said that official Baku tries to conceal that Azerbaijan is lagging far behind Nagorno Karabakh in building a democratic state and thus spares no effort to hinder democratic processes in NK. Nevertheless, EU's statement said that the elections will not impact the peace process, something that Secretary General of the Council of Europe Walter Schwimmer repeated several days later. This view was echoed earlier by the U.S. State Department in reference to NK local government elections held in September 2001.
The Foreign Ministries of both Armenia and Nagorno Karabakh responded with separate statements saying EU's position on NK elections is inconsistent with its own declared fundamental democratic values. In its statement, the NKR Foreign Ministry said, "We are strongly convinced that only a government established on the basis of free elections has the authority, granted by the people, to conduct peaceful negotiations and bear the responsibility before the international community for its commitments." 
August 2 - 9 The newly formed Armenian Central Electoral Committee (CEC) announced this week that the next presidential elections will take place February 2003, followed by parliamentary elections on May 25. The CEC also voted to reelect Artak Sahradian, who was appointed to the commission by President Robert Kocharian, as its chairman. According to the latest amendments to the election code passed last month by the National Assembly and heavily criticized by the opposition, the President of Armenia appoints three out of nine members of the CEC. The other two appointees are Artur Poghossian, who previously served as the advisor to the Civil Service Council Chairman and Armen Sinanian, former Youth Affairs Department Chief of Ministry of Culture. Six other CEC members will be appointed by six major political parties currently represented in the National Assembly, namely, the Republican Party (HHK), ARF Dashnaktsutyun, Orinats Yerkir, Communist Party (HKK), National Democratic Union (AZhM) and the Right and Accord bloc. 
August 2 - 9 An Armenian television report indicated this week that the United Nations official on freedom of religion has sent a message to Israeli authorities, requesting information about the Israeli Army's occupation of the Armenian Patriarchate lands in Jerusalem and its intention regarding their future disposition. The unconfirmed report asked that Israel "adhere to international norms in this situation." Meanwhile, the American Jewish Committee wrote to the Israeli Minister of Defense on August 5, noting that the leaders of the Armenian Church "are working with us to strengthen understanding and mutual respect between our two communities," and asking that the Minister "be mindful of their concerns within the context of the compelling needs of safety for all Israelis." 
The 35-acre Baron Der property, which includes 1,600 olive trees, a monastic building and ancient tombs and caves was reported to have been occupied by Israeli forces last year with the intention of building a military road through the area. In the past few weeks, they announced plans to build a five-meter security fence through the middle of the property, citing the necessity of protecting Jerusalem from Palestinian attacks. The Azeri on-line newspaper, Echo, quoted the First Secretary of the Israeli Embassy in Baku, Olga Dolburt, as saying that the Israel Defence Force "is making a temporary use of the Patriarchate-owned agricultural lands for erecting the security fence." She added that the Israeli government is negotiating with the Patriarchate on financial compensation for temporary use of the land. Armenian Church leaders would prefer to see the fence built on the perimeter of the property while the Armenian Patriarchate in Jerusalem has taken the case to Israel's Supreme Court. An official reply from the Israeli Foreign Ministry is expected early next week. 
August 2 - 9 In Armenia, a world class international museum of contemporary art and cultural center moved one step closer to reality this week with the announcement that the Cafesjian Museum Foundation has launched the initial phase of repairs to the Cascade, a Yerevan attraction consisting of an escalator, staircase, fountains and green space linking the downtown with neighborhoods located on hills surrounding the city. At the same time, the Republic of Armenia announced the second in a series of proposed land transfers to the Foundation for the museum site located at the Cascade's upper terminus. 
The Cafesjian Museum Foundation of America, founded by Armenian American businessman and philanthropist Gerard L. Cafesjian, will contribute resources for the completion of the museum and Cascade complex, as well as its art collection. The design for the Yerevan museum is expected by late next year, with construction planned for 2004. The museum complex will include an auditorium, retail stores, a restaurant, reception areas, administrative offices, and collection storage. Among the major works to be housed in the museum are those by Georges Braque, Marc Chagall, Jim Dine, Helen Frankenthaler, Archile Gorky, Joan Miro, and Jasper Johns. Armenian artists represented include Hamalbasian, Hovespian, Papanian, Vartanian, Vartanyan, and Zadikian. Cafesjian is also a major supporter of the Armenian Genocide Museum and Memorial, to be built in Washington, DC. 
August 2 - 9 In a marathon session preparatory to upcoming elections, the Turkish Parliament has overturned a law criticized as discriminatory against Greek, Armenian, Jewish and other minorities, and passed in its stead a law, which among other aspects, allows such groups greater property rights. Deutsche Presse-Agentur reported that the new law, part of a larger human rights reform package, is considered vital for Turkey's entry into the European Union. The European Commission has stressed that the overall reform package needs to be carefully analyzed in order to fully assess its impact. It noted that its implementation would be closely monitored. 
August 13 -14 Led by the Socialist Armenia bloc and the Communist Party of Armenia, several leftist political parties conclude talks on establishing a unified coalition to participate in next year's presidential and parliamentary elections.  The new left-wing coalition, which also consists of the Republican Party, the People's Party of Armenia and the National Accord Party, will form a "shadow cabinet" to articulate their positions in opposition to the Kocharian government.  Press reports reveal that Democratic Party of Armenia leader Aram Sarkisian has been named the "foreign minister" in the new shadow cabinet. Sarkisian explains that the new leftist bloc will not compete with the existing coalition of 13 opposition political parties. 
August 14 In their first direct meeting since November 2001, the Armenian and Azerbaijani presidents meet in Sadarak, a border town between Armenia and Nakhichevan. The presidents hold talks for four hours and afterwards announce that the talks were "useful and important." However, with both leaders facing presidential elections in 2003, domestic considerations dim expectations from the talks. 
August 15 The opposition People's Party of Armenia (HZhK) issues a statement accusing the Kocharian government of planning to ensure the reelection of President Robert Kocharian through corrupt voting practices. The opposition party claims that Prime Minister Andranik Markarian's pro-government Republican Party (HHK) has prevented People's Party members from being appointed to the new electoral commissions empowered to supervise the upcoming presidential, parliamentary and local elections. According to the amended electoral laws adopted last month, the electoral commissions comprise members appointed by the president and parties represented in the parliament.
August 15 Arriving in Armenia from Nagorno Karabagh, U.S. Representative Frank Pallone (D-NJ) tells a press conference in Yerevan that "the prospects are good" for U.S. assistance to Armenia to remain at the same level as last year. The current proposal includes $90 million in U.S. economic aid and $3.7 million in military assistance to Armenia for 2003. Congressman Pallone, who serves as co-chairman of the Congressional Caucus on Armenian Issues, also states that the presidential election in Nagorno Karabagh, which he observed, was free and fair and expresses "disappointment" with the European Union's recent criticism of the election. Pallone adds that the U.S. should welcome democratic elections in Karabagh and in response to a "Yerkir" reporter's question on the recently introduced Senate bill recognizing the Armenian Genocide, affirms his support for the legislation and notes that the bill "was the best approach at this time." 
August 9 - 16 Incumbent NKR President Arkady Ghoukasian won a landslide victory in Sunday's elections, receiving 89 percent of the votes. The Central Electoral Committee (CEC) reported that 76 percent of some 90,000 eligible electors took part in the voting, which international monitors from the United States, France, Russia, Great Britain and Italy have called free and fair. The team of U.S. observers, including former senior U.S. Foreign Service officials, issued a post-election statement reporting that on the day of elections they visited 29 polling stations, two regional electoral committees and the CEC. In their statement, they said, "The elections were free and transparent. Nagorno Karabakh demonstrated significant progress in building a democracy. The government made a great effort to conduct the elections in a democratic manner. The vote proceeded in a calm atmosphere without any facts of intervention." 
U.S. Congressman Frank Pallone, Jr. (D-NJ), who along with his colleague Lloyd Doggett (D-TX) were in Nagorno Karabakh during the election, told reporters that "The elections reminded me very much of our elections in the United States. It says a lot about Karabakh and its people. It shows that the people of Karabakh are a real nation and are willing to do what's necessary to be Western and democratic." Echoing Pallone's remarks, Doggett said that the "Vote is a step in the right direction. Despite many obstacles that the Azeris put in the way of peace, I hope that this election will encourage Karabakh and Armenia to take bold steps for peace." 
Representatives of the British Helsinki Human Rights Group (BHHRG), an organization that has observed 85 elections in Europe, visited more than 20 polling stations in Nagorno Karabakh. In their report issued August 12, they said: "[The NK elections] easily surpassed the standards of the [Organization for Security and Cooperation in Europe] OSCE-organized elections in Bosnia and Kosovo, and other elections which have been approved by the OSCE and the Council of Europe." In his interview following the elections, Ghoukasian said that for him it was of secondary importance who would win the elections. "It was much more important that these elections contributed to the international recognition of Karabakh. In the coming years we shall develop further all the positive economic trends that we see today. I am sure that we will be successful." President Ghoukasian's inauguration ceremony is scheduled for September 8.
August 9 - 16 Speaking to a news conference in Yerevan this week, Congressman Frank Pallone, Jr. (D-NJ) said he expected the amount of U.S. government assistance to Armenia to remain unchanged at about $94 million in the next fiscal year. Pallone, a Co-chair of the Congressional Caucus on Armenian Issues, was visiting Armenia following his trip to NKR. He said that he hoped the House of Representatives would follow the Senate lead, where the Appropriations Committee has already approved a package calling for $90 million in economic assistance and $3.7 million for military support. Addressing the NKR peace process, Pallone said that while he welcomed the latest Armenian-Azerbaijani peace talks, many U.S. lawmakers disagree with the White House's unwavering support of Azerbaijan's territorial integrity. "There are many of us in Congress, including myself, who feel that, practically speaking, Nagorno Karabakh is a state, and that we would like to see Nagorno Karabakh either being an independent state that is recognized by the U.S. or be part of Armenia." Referring to Armenia's new de-mining program, to be financed by the U.S. State Department and the Pentagon and launched this September, Pallone said a similar program is already underway in Karabakh and noted that five percent of the mined areas have already been cleared.
August 9 - 16 Armenian President Robert Kocharian met this week with his Azerbaijani counterpart President Heydar Aliyev for bilateral talks. Both presidents expressed satisfaction with the meeting. It was their first since November 2001 and took place on the border of Armenia and the Azeri exclave Nakhichevan. However, observers do not expect real progress in the resolution of the Nagorno Karabakh conflict before the presidential elections in Armenia and Azerbaijan due in 2003.
"Our mood is good and we are on the whole satisfied with the course of the meeting... We hope that this meeting will push forward the process, which slowed down recently, and that we will be able to move forward," said Kocharian after the talk. He did not discuss the details of the meeting. 
Aliyev also indicated that the meeting was useful, saying that they "looked into many variants of the settlement." He told reporters, "We have analyzed the results of our previous meeting and agreed that the negotiating potential have not been exhausted." 
NKR President Arkady Ghoukasian indicated that he did not expect any serious results from the meeting. He said that he has lost faith in Aliyev. "I think that Aliyev is no longer capable of adopting a constructive position and fostering the conflict's settlement. I think he exhausted himself," Ghoukasian said. 
The meeting was an apparent attempt to revive the negotiations process, which came to a halt after significant progress was reportedly made in Paris and later on in Key West last year. It was during those meetings that the two sides were said to have settled on the main principals of the final agreement, what has become known as the "Paris principles." Even further progress was expected to come out of a proposed follow-up Geneva meeting, but it did not take place. 
Unexpectedly, official Baku backtracked on the previously reached agreements and set additional preconditions, denying the existence of the Paris principles. In a side development, Aliyev recently told reporters that he had sought to "change the demography" of Karabakh by bringing in an Azeri workforce from surrounding regions during his years as the First Secretary of the Communist Party of Azerbaijan before the collapse of the Soviet Union. 
August 9 - 16 Ten Armenian companies will introduce Armenian goods to French and other European consumers during an international trade fair in Marseilles this September. The Armenian products were selected on the basis of French market demand. They include office furniture, agricultural products and beverages. French Ambassador to Armenia Andrew Cuny said that all products included in the fair are required to meet French and European standards. A total of 20 countries have been invited to participate in the 10-day exhibition. 
August 9 - 16 A team of experts from the German telecommunications firm Siemens AG has arrived in Yerevan to help install some $15 million worth of mobile telephone equipment, a move that will increase both coverage and customers. The ArmenTel communications monopoly announced this week that the first phase of the project will begin shortly and will allow the company to serve 100,000 customers. ArmenTel currently provides service to 50,000 cell phone users. Additional antennas to improve reception quality will be installed in Gyumri, Vanadzor and Sevan.
Earlier this week, ArmenTel cut the Internet communication links of one of Armenia's largest Internet service providers, Arminco, accusing the company of illegal practices. Scores of Armenian Web sites were inaccessible to Internet users. Arminco, which is the oldest Internet firm in Armenia, has denied the allegations. The dispute is the latest in a series involving ArmenTel's controversial legal monopoly of Armenia's telecom services. 
August 17 A delegation of several dozen Turkish businessmen meets in Yerevan with the Armenian Union of Industrialists and Businessmen. The Turkish and Armenian business leaders discuss avenues for expanding bilateral trade and commerce and criticize the blockade of Armenia imposed by successive Turkish governments as a major obstacle to trade.
August 21 National Security Ministry officials confirm reports that four Armenian citizens have been charged with treason following their arrest earlier in the month on suspicion of spying for Azerbaijan. The four suspects are members of a Russian-Ukrainian family who resettled in Armenia after being forced from Azerbaijan as refugees in the late 1980s. The suspects have reportedly admitted to proving information on Armenian military positions in southern Armenia in exchange for money from the Azerbaijani Interior and Defense Ministries.
August 16 - 23 The largest delegation of Turkish businessmen to visit Armenia in recent years wrapped up its meetings there this week, calling for the shared border to be re-opened, despite ongoing political differences between the two countries. The group's spokesperson, a chairman of a regional chamber of commerce, said, "Our aim is to establish economic and trade links with Armenia so it is indispensable to open the frontier between the two countries." However, Turkey's Minister of State Resat Dogru reacted negatively to the initiative, saying that, "No international organization, including the European Union, can force Turkey to open its borders with Armenia." Dogru admitted that some private Turkish businessmen were trading with Armenia but said that there were "no contacts on a state level."
Turkey blockades Armenia and has said it will not lift it until Armenia resolves its dispute with Azerbaijan over Nagorno Karabakh. 
Armenian-Turkish Business Council member Ashot Sogomonyan said bilateral trade could reach $400 million if all restrictions were lifted and border crossings were opened. Official figures indicate that Armenia currently imports roughly $45 million in building materials, foodstuffs and clothing from Turkey annually, while Turkey buys about $1.5 million in Armenian-made leather goods and metals. 
More than 30 members of the Turkish delegation traveled to Yerevan via neighboring Georgia, a circuitous route that took a day versus the two hours directly across the frontier with Armenia.
August 16 - 23 The U.S. military attachn Armenia this week described Armenia's contribution to the U.S.' war on terror in an exclusive interview with Radio Free Europe/Radio Liberty (RFE/RL). Lieutenant-Colonel Eric von Tersch said that Yerevan not only opened its airspace to U.S. warplanes but also offered its airfields for emergency landings. Opening Armenian airspace allowed U.S. warplanes to avoid dangerous mid-air refueling on their way back to neighboring Turkey from Afghanistan, he said. "They could fly to Afghanistan, drop their loads and fly back directly without having to do the dangerous refueling in the air. If they didn't fly over Armenia, they would have had to go over Georgia, which would have required the refueling in the high altitude," said von Tersch. He also said that the Armenian Government's decision in September 2001 allowed U.S. military aircraft to carry out emergency landings in Armenia and provide American servicemen with medical treatment. Von Tersch said, "If a plane got shot up on its way back from Afghanistan, it could land in Armenian airfields without clearance and questions. We also had an understanding that if any of those planes went down in Armenia, the Armenians would provide security and medical care for the pilots." Von Tersch added that after the terror attacks of September 11, close to 360 Armenian private citizens had volunteered to fight in Afghanistan alongside the U.S. troops. 
August 16 - 23 Armenian aviation sources told RFE/RL this week that the country's main state-run carrier, Armenian Airlines, is on the brink of bankruptcy. Plagued with falling revenues and allegations of corruption, sources expect the airline to file for bankruptcy "in the very near future." The company currently faces debt exceeding $20 million, but aviation experts say bankruptcy proceedings can protect the airline from foreign lawsuits. RFE/RL says the carrier's demise could lead to the privatization of the industry. 
August 16 - 23 U.S. Ambassador John Ordway joined a team of international volunteers and Habitat for Humanity Armenia (HFHA) Tuesday in building a new home for an Oshakan village family. HFHA is affiliated with the internationally-known charitable organization which helps needy families build or renovate selected homes in over 80 countries around the world. Volunteers, community members and the media joined the Ambassador in pouring cement, assembling a roof and performing masonry tasks. HFHA has led to the completion of over 20 homes in Armenia and plans to complete another 30 by the end of the year.
August 16 - 23 Two rapporteurs from the Council of Europe's Parliamentary Assembly (PACE), Irena Bielohorska (Slovakia) and Jerzy Jaskernia (Poland) traveled to Armenia this week to assess progress in fulfilling its membership obligations. Armenia joined the Council of Europe in January 2001. 
During their visit Bielohorska and Jaskernia met with President Robert Kocharian, National Assembly Speaker Armen Khachatrian and other senior officials. They also met with representatives of opposition political parties, non-traditional religious groups, NGOs and media. President Kocharian reassured the officials that, "Armenia chose Europe's model of development and will continue to pursue this policy." 
One of the main sticking points between the Armenian Government and the Council of Europe is Parliament's insistence on exempting the perpetrators of the 1999 parliamentary massacre from the provisions of the recently-adopted new Criminal Code that officially abolished the death penalty in Armenia. Rapporteurs discussed this issue with the Chairman of the Parliaments' State and Legal Committee Victor Dallakian and relatives of government officials killed in the shooting. 
They also met with representatives of the independent A+ television station that lost a bid in an air frequency tender in April and was forced off the air. The opposition harshly criticized the decision of the National Commission on TV and Radio, calling it arbitrary. Since then, President Robert Kocharian and other top officials have assured the Council of Europe that A1+ will stand a good chance of resuming its broadcasts if it bids for another air frequency this fall. 
Regarding military service, Chairman of the Armenian National Assembly's Committee on Defense and Security Vahan Hovanisian told the officials that two versions of the bill on alternative military service would be debated in the National Assembly. Under the current compulsory conscription laws for Armenian armed forces, members of groups such as Jehovah Witnesses who refuse to serve in the army, are prosecuted. 
During his visit to Armenia last month, PACE Secretary General Walter Schwimmer said that the country is making steady progress in meeting the organization's democratic standards, but indicated that more needs to be done. The rapporteurs will present their findings in a report on the fulfillment of Armenia's Council of Europe obligations next month. 
August 24 - 26 In the third attempt by the government to sell the country's low-voltage national power distribution network, a UK-registered company offers $37.15 million for an 81.1 percent controlling share. The company, the offshore-based Midland Resources Holding group, is the only bidder in the controversial tender, but has no experience in the energy sector. With strong support from President Kocharian, the Armenian government formally endorses the bid two days later despite serious reservations by officials of the International Monetary Fund (IMF) and the World Bank. The energy distribution network is notoriously inefficient and corrupt, and incurred more than $60 million in losses last year. The World Bank has been withholding a $20 million loan package to bridge half of the Armenian government's budget deficit until completion of the sale, although World Bank officials suggest that extension of the loan may still be suspended. Although the European Bank for Reconstruction and Development (EBRD) was expected to acquire the remaining minority share in the energy network, officials state that it is no longer interested. According to the terms of the deal, the Midland Resources Holding group's bid will be reduced by the network's $25 million of debt, meaning it will have to pay only $12.15 million for the 81.1 percent controlling share of the national network. This is substantially less than the Armenian Energy Ministry's original $250 million estimated value of the distribution network. 
August 26 - 29 Prominent leaders from sixteen of the country's main opposition political parties hold three days of private meetings in an attempt to coordinate plans to oppose incumbent President Kocharian in the February 2003 election. According to Albert Bazeyan, a leading member of the Republican Party, the opposition is preparing to release a joint declaration, but has still not resolved its differences on selecting a sole candidate to oppose the president. Former Prime Minister Aram Sarkisian is actively seeking the opposition's endorsement as their candidate, but other opposition figures are also seeking to run. 
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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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