ITAR-TASS, Russia
June 25 2005

Azerbaijan increases defence budget

BAKU, June 25 (Itar-Tass) — Azerbaijani President Ilkham Aliyev said
his country has increased the defence budget because Russia is moving
military hardware from its base in Georgia to Armenia.

`It is true that this hardware is not handed over to Armenia but
remains at the disposal of the Russian base. But still it will be
transferred to Armenia, and this required us to take proper steps,
which we did by increasing defence expenditures in the budget,’ the
president said on Saturday as he addressed the graduates of the
Azerbaijani Higher Military School named after his father.

Aliyev said the increase in defence capabilities is necessary in
order to `resolve the Karabakh conflict’.

`We will use all diplomatic and political methods, but the adversary
must know that the Azerbaijani army can mobilise at any moment and
liberate the occupied territories,’ he said.

`We will not step aside from our position even by an inch,’ Aliyev
said, adding, ‘The biggest compromise Azerbaijan has made in the
resolution of the Karabakh conflict is that the country remains
committed to a peaceful settlement.’