Azerbaijani TV Channel One, Azerbaijan
Dec 31 2006

AZERI LEADER SETS KEY PRIORITIES FOR 2007

Azerbaijani President Ilham Aliyev has given priority to further
strengthening of the army building, liberating occupied lands and
improving living standards of people in his New Year address. The
president praised economic development in 2006 and commended the
commissioning of the Baku-Tbilisi-Ceyhan oil pipeline for improving
economic situation. Aliyev reiterated that the breakaway Karabakh
will never be independent and that Azerbaijan is always ready to
liberate occupied lands by any means. The president also applauded
the country’s role in securing Europe’s energy security. The
following is the text of President Ilham Aliyev’s New Year address to
the nation broadcast by Azerbaijani TV on 31 December; subheadings
have been inserted editorially:

Dear ladies and gentlemen! Dear compatriots!

I congratulate you heartily on the New Year. The year 2006 is over.
Last year was entirely very successful for Azerbaijan. Our country
strengthened and further reinforced its positions worldwide. We have
very perfect public and political atmosphere in the country. In 2006
Azerbaijan economically managed to maintain very successful
development pace. For the second year, our country is No 1 world
state for the economic development pace. Undoubtedly, it is a
dazzling achievement to be in the first place in the world,
especially for the significant indicator of economy, i.e. the growth
of GDP is no doubt is a splendid achievement. Our economy showed the
growth rate of 26 per cent in 2006, and 35 per cent in 2007, and
certainly this indicator played a significant role for Azerbaijan’s
comprehensive development.

Social policy priorities

We have been doing a lot of work for the elimination of unemployment
in the country for over the last three years. A total of 500,000 new
jobs have been created. When I was elected to the post of president,
I declared that I would create 600,000 new jobs in Azerbaijan, and
500,000 of them have already been created. The level of poverty has
been reducing quickly in Azerbaijan, the social and economic
development of the regions are continuing at great speed and the
regions are being modernized and renewed, new infrastructure projects
are being implemented. At the same time, the social policy is very
strong in Azerbaijan and attention to social issues should always be
on our agenda, and this is one of directions of my policy. Pensions
and wages rise every year and the minimum wages and pensions will
rise from 1 January.

Of course, we are not fully satisfied with the amount of wages and
pensions. Nevertheless, the growth dynamics is very strong and the
living standards of the people will further improve following the
quick reduction in poverty level and the eradication of joblessness.
This is our main task. Everything for people, everything for the
people of Azerbaijan. The people of Azerbaijan should live well and
for this to happen, both economic and political reforms should go
ahead and a viable social policy should be pursued for the
comprehensive development of our country.

The outgoing year also saw great construction and renovation work,
hundreds of new schools were built, most up-to-date hospitals meeting
world standards were commissioned, new roads, highways are being
built. Huge construction and renovation projects are being
implemented for tackling Baku’s transport problems as well as rural
road problems. We have been doing all these to provide more
comfortable life for people and in all, for strengthening the
country’s infrastructure and pushing forward our development.

Baku-Tbilisi-Ceyhan oil pipeline of geopolitical importance

The year 2006 is also of historical importance for us because in 2006
two historical events occurred in Azerbaijan. The Heydar Aliyev
Baku-Tbilisi-Ceyhan oil pipeline was put into operation and we
managed to get first gas from Sah Daniz deposit. These two historical
events will determine Azerbaijan’s long-term development strategy,
will strengthen Azerbaijan economically and certainly contribute to
the consolidation of its worldwide positions. The Baku-Tbilisi-Ceyhan
is a historical achievement for Azerbaijan, this is not an ordinary
oil pipeline, this is not an ordinary infrastructure project that
carries Azerbaijan’s oil to world markets, this is of great
geopolitical significance. With commissioning of this project,
Azerbaijan is already yielding its excellent results. The Azerbaijani
Oil Fund has billions of dollars, our currency reserves have exceeded
4bn dollars, the budget revenues have grown fourfold over the last
three years. Azerbaijan’s budget was about 1.5bn dollars in 2003, in
2007 this will amount to 6.5bn dollars. The key reason for all these
is the execution of the Contract of the Century which was signed at
the initiative of great leader Heydar Aliyev in 1994. We are reaping
the fruit of this and will further reap. Azerbaijan’s economic
potential is growing, Azerbaijan’s political weight is increasing,
our international positions are strengthening and no doubt Azerbaijan
is becoming an important country worldwide.

In particular, now when the world and the West are more preoccupied
with energy security issues, the exploitation of Azerbaijan’s oil and
gas deposits and importing them to world markets are of great
significance. From this point of view, gas from Sah Daniz deposit and
its expected transportation through the Southern Caucasus gas
pipeline certainly makes Azerbaijan’s political positions stronger.
This gladdens my heart, I feel pride that Azerbaijan implemented
these big and transnational and very difficult projects successfully
and did not change its position under difficult situation,
demonstrated its will and as a result of the will of the people, the
authorities and the pursue of independent policy, we succeeded in
these historical achievements. From now on, Azerbaijan will see no
economic problem. We have a well-thought-out conception, we are
resolute to continue economic and political reforms, we are doing it
and will do. Therefore, the role of these two events in the history
of Azerbaijan is immense. The contemporary Azerbaijani history has
not seen a similar event.

Azerbaijan’s territorial integrity out of the question

We certainly pay great attention to the resolution of international
issues. Both domestic, economic and foreign policy issues of
Azerbaijan were very successful in 2006. We managed to resolve all
tasks with dignity in combination of these policies. In 2006
Azerbaijan reinforced its international positions. We cooperate
efficiently and in a businesslike atmosphere with all our neighbours
and pursue an open policy. Azerbaijan’s ability to conduct an
independent policy takes its strength from our will, our economic
might and Azerbaijan’s future will undoubtedly depend on our
independent policy. Therefore, what we are doing is to strengthen
Azerbaijan’s positions. At the same time, our cooperation with
international organizations is very successful and cooperation with
important international organizations entered a new stage in 2006. In
particular, the European Neighbourhood Policy action plan signed with
Azerbaijan will create favourable conditions for the continuation of
both economic and political conditions in the next five years.

At the same time, the memorandum on strategic cooperation in the
energy section with the EU is making Azerbaijan a gas transporting
country for consumers in Europe and certainly, its economic and
political significance is obvious. Our international activities are
worthwhile and all efforts of Azerbaijan in international
organizations are directed at a resolution of a single issue, i.e.
the Armenian-Azerbaijan- Nagornyy Karabakh conflict. Our position
remains unchanged, Azerbaijan’s territorial integrity must be
restored, Azerbaijan’s territorial integrity is not a topic of the
negotiations, Azerbaijan’s will never let Karabakh be independent.
Our policy is based on the norms and principles of international law
and Karabakh can be granted greater autonomy opportunities within
Azerbaijan on condition that Azerbaijan’s territorial integrity is
secured. This is our constructive position and beyond this no
negotiations were held and will not be held in future. The most
gratifying case is that the OSCE Minsk Group co-chairs, the Minsk
Group, international organizations support Azerbaijan’s position. The
territorial integrity will never be a topic of discussions. The
recent self-styled referendum in Nagornyy Karabakh once again proved
how strong and fair our positions are. The whole world condemned the
referendum and expressed their negative attitude towards the
referendum conducted by the illegal and criminal regime. The
negotiations are under way and I hope that the opposite side will
demonstrate constructive position and thus Azerbaijani lands will be
liberated from the occupiers.

Army building tops the agenda

At the same time, the army building process is being paid great
attention to. Two years ago, I declared and pledged that Azerbaijan’s
military budget must be equal to Armenia’s whole budget, and in 2007
we succeeded in this target. Azerbaijan’s military spending is equal
to Armenia’s whole spending and this will be bigger in the years to
come. On the one hand, this shows that all the promises are honoured,
on the other hand, we have to reinforce our army. We are at talks but
the enemy should know that Azerbaijan can liberate native lands by
any means at any time and we shall liberate it. From now on, the army
will be paid much attention, this is our policy and I am glad to see
that the people support this policy which is very important for me.

In all, processes in Azerbaijan continue positively, I try and will
further try to justify hopes placed on me by the people. I try to
resolve duties vested in me with dignity. My sole aim is to serve the
people of Azerbaijan, to strengthen Azerbaijan, reinforce our
country’s positions worldwide, carry out our activities for the
improvement of welfare of the Azerbaijani people. I want to
strengthen the country with implementing wide-ranging projects and
transforming Azerbaijan into a modern and strong country.

I can state that over the last three years there remained no
unresolved issues for us. All the issues have been resolved,
Azerbaijan develops very dynamically, our policy is flexible,
expedient and is being conducted on the basis of well-thought-out
programmes and I am sure that this policy will further bring
successes to Azerbaijan.

Solidarity of Azerbaijanis key issue

Dear compatriots!

Today we also mark Id al-Adha, dear for every Azerbaijani people. I
congratulate you heartily on this splendid holiday. We are loyal to
our national traditions and this loyalty united the people of
Azerbaijan for many years even before Azerbaijan gained its
independence. Our loyalty to national and spiritual values, our
respects for them should without fail continue and we mark this
splendid holiday together and will do the same from now on.

At the same time, I congratulate you heartily on the Day of
Solidarity of world Azerbaijanis. The solidarity of world
Azerbaijanis is very significant and important for all of us. In 2006
the second congress of world Azerbaijanis was held splendidly, with
full of enthusiasm and almost the second congress of world
Azerbaijanis was a triumph of ideology of Azerbaijanism. I wish world
Azerbaijanis peace and tranquillity. They should know that Azerbaijan
is their single country.

Dear sisters and brothers! Esteemed ladies and gentlemen! I once
again congratulate you on the New Year, I wish you family happiness
and good health. Thank you!