TURKISH, ARMENIAN BUSINESSES DEMAND BORDER OPENING
By Hasmik Lazarian

Reuters, UK
Jan 16 2007

YEREVAN (Reuters) – The border between Turkey and Armenia has been
shut for 14 years because of a dispute rooted in the centuries-old
suspicions between Muslims and Christians in this remote part of
the world.

But the business communities in both countries pay heed to a different
imperative — making money — and they are telling their political
leaders to put the past behind them.

"I want the borders opened," Turkish businessman Kaan Soyak told
Reuters on the sidelines of a conference in Armenia’s capital at the
weekend that brought together business leaders and officials from
both countries.

"The first problem is the lack of trust. Turks don’t know Armenians
and Armenians don’t know Turks because there is no connection. … We
need more dialogue, more visits."

Turkey and Armenia share a 355-km (220 mile) frontier that snakes
through the Caucasus mountains.

Ankara closed all border crossings and cut diplomatic ties in 1993 to
protest at the seizure by Armenian forces of territory in ex-Soviet
Azerbaijan, Turkey’s historical ally that at the time was fighting
a war with Armenia.

Lurking in the backdrop are Armenian accusations that Turkey carried
out a genocide of 1.5 million Armenians during the last days of the
Ottoman Empire.

Turkey denies there was a genocide, a stance that has complicated
its bid to join the European Union.

These though are not the most immediate concerns for businesses
struggling to operate in this isolated corner.

For Turkey, the closed border means building materials and textiles it
exports to the booming Russian market have to go by road via Georgia
to the north, instead of using the cheaper but now rusting railway
route through Armenia.

Armenia, under virtual blockade because its border with Azerbaijan
to the east is also closed, has to import goods from Turkey by air or
through third countries. And Armenian exports have to go around Turkey.

MOUNTING PRESSURE

"There are two aspects: (opening the border) will make trade with
Turkey cheaper and on the other hand it will open up transit routes
for Armenia to the Mediterranean," said Arsen Kazaryan, an Armenian
businessman.

With no sign of any diplomatic thaw soon between Yerevan and Ankara,
business groups are trying to ratchet up the pressure for the border
to be re-opened.

The conference, at Yerevan’s plushest hotel, was organized by a
U.S.-based think tank and attracted several hundred entrepreneurs,
economists, researchers and officials.

It was supported by the U.S. government. All speakers were in favor
of re-opening the border.

A cross-border business lobby, the Turkish-Armenian Business
Development Council, is spearheading the campaign.

Mayors and regional bosses near the border with Armenia in eastern
Turkey — one of the poorest parts of the country and the area that
would gain most from free trade links — are also pressing Ankara on
the issue.

Soyak, co-chair of the Business Development Council, said opening
the border would mean a flood of Armenian tourists visiting historic
sites in eastern Turkey like Ani, once the capital of a medieval
Armenian kingdom.

"That would mean $100 per day (from each visitor)," he said. "The
eastern part of Turkey doesn’t have that sort of money.

"Unfortunately, the central government in Turkey does not take into
consideration the problems of the eastern part."

In the meantime, people in Turkey and Armenia are not waiting for
the politicians.

Charter flights regularly take Armenian tourists to Turkish holiday
resorts and Turkish businessmen can be seeing cutting deals in hotel
lobbies in Yerevan.