NKR President Calls For Regional Peace, Expansion of Relations

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PRESS RELEASE
November 21, 2006

NAGORNO KARABAKH PRESIDENT ARKADY GHOUKASIAN CALLS FOR REGIONAL
PEACE, EXPANSION OF RELATIONS WITH INTERNATIONAL COMMUNITY

Los Angeles, CA – On November 16, 2006 H.E. Arkady Ghoukasian,
President of the Nagorno Karabakh Republic, Artsakh, addressed the
Los Angeles World Affairs Council (LAWAC). Speaking to an audience
of about 200 people, President Ghoukasian discussed the most recent
developments in the Nagorno Karabakh peace process, as well as
democratic and economic progress in Artsakh. (See below the full
text of remarks.)

President Ghoukasian called on the United States and other leading
international players to take additional steps to prevent Azerbaijan
from potentially undermining regional stability. He added that in
this regard `an international embargo on weapons supplies to
Azerbaijan’ should be considered. The President also suggested the
initiation and signing `of a separate memorandum between the parties
to the conflict that would state their commitment to resolve the
existing disagreements through peaceful negotiations.’

The President also thanked the U.S. Government and the American
people for the ongoing U.S. humanitarian assistance and called for
increased American and international role in Nagorno Karabakh’s
democratic and economic development.

President Ghoukasian is in California as part of his working visit
to the United States. On November 23, he will take part in the
Armenia Fund’s 9th International Telethon to help raise funds for
infrastructure and development programs in Hadrut Region of Artsakh.

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Remarks by President of the Nagorno Karabakh Republic H.E. Arkady
Ghoukasian
at the Los Angeles World Affairs Council
November 16, 2006

Dear Ladies and Gentlemen,

It has been seven years since my last appearance at this
prestigious Center in 1999. In this time, the world, the United
States and Karabakh have experienced significant events. I
certainly cannot fail to mention the September 11, 2001 terrorist
act nor the destructive consequences of Hurricane Katrina last
year. Trust me that we were shaken by these events as well.
Instability persists in a number of the regions of the world, and
unfortunately there is a danger that this instability could spread
to neighboring regions. We remain hopeful, however, that people
will find in themselves the power and the wisdom to solve pressing
problems without violence.

As far as the Nagorno Karabakh Republic (NKR) is concerned, the only
sphere where there has practically been no progress in the past
seven years is the Karabakh peace process. Rest assured this is not
something of our doing. Unfortunately, the Azerbaijani leadership
still prefers to act contrary to the logic of historical
development, which does not contribute to conflict resolution and
only adds to serious obstacles on the road to viable peace and
stability in our region. The Azerbaijani leadership had the same
illusory sense of superiority when it introduced a total blockade of
NKR and unleashed a full-scale war against us. That illusion of
superiority, as well as Azerbaijan’s refusals to end the fighting,
which was at the time repeatedly confirmed by international
mediators, ultimately resulted in the defeat of the Azerbaijani
armed forces, and the complete or partial loss of the seven
districts around NKR. In other words, the current status quo is a
natural and logical result of Azerbaijan’s failed aggression.

Today, official Baku is trying to intimidate us by pouring oil
revenue into its military budget. This approach of the Azerbaijani
government has absolutely no prospect for success. There is no
military solution to the Karabakh issue. A war would only bring
great losses and suffering to the peoples of both nations. The
Azerbaijani leadership must give up these foolish and suicidal hopes
for revenge and resolve all issues, no matter how complex, at the
negotiating table with the equal participation of Nagorno Karabakh
as a full-fledged party to this conflict. Azerbaijani calls for a
military solution of the Karabakh question only reflect the absence
there of democratic traditions of civilized dialogue with political
opponents, when the other side’s interests must also be taken into
account.

A peaceful settlement of the conflict with Azerbaijani tops NKR’s
foreign policy agenda. Conceptually, our approach to conflict
resolution is based on the understanding of the new rules in
international relations, which, when strictly followed, provide all
nations and states with an equal opportunity to safeguard their
interests. It is this tendency that gives us hope for a political
settlement of the Karabakh conflict. At the same time, any peace
agreement cannot undermine the historical choice made by the people
of NKR in favor of independent, democratic development.

Our preference for a peaceful settlement should not be construed as
a sign of weakness. We will be able to defend our homeland in case
of war. Should Azerbaijan choose to once again resort to military
action, it will receive a deserving counterblow from NKR’s proven
Defense Army, which is capable of successfully dealing with the most
difficult problems when it comes to security of the Nagorno Karabakh
Republic and its people. But to reiterate, the conflict cannot be
resolved through war, and to rely on increased military spending, to
hope for revenge – would be a terrible, I would say suicidal
miscalculation.

When it comes to settlement scenarios, any option that would
undermine our security or put in doubt Nagorno Karabakh’s
independence from Azerbaijan would be completely unacceptable. I am
certain that any effort to address the issues of territories and
refugees in isolation from the most fundamental issue of Nagorno
Karabakh’s status would be a fruitless one. There are no taboo
subjects for us, but this does not mean that we are ready to make
unilateral concessions. The extent of our compromises depends
directly on the extent of compromises made by the Azerbaijani side.

We chose the way of independence to be able to realize our natural
rights and freedoms, which were crudely abused by Azerbaijan’s
leaders. Time has shown that we chose the right path. Take a look
at the Azerbaijani government’s behavior towards Nagorno Karabakh.
They are threatening to annihilate us, if we refuse to become part
of Azerbaijan. Is this a serious approach? Can civilized leaders
win over their neighbors to live together through threats or
blackmail? This is simply illogical. The people of Nagorno Karabakh
harbor no animosity towards the Azerbaijani people. The situation
in Azerbaijan is fundamentally different. There, hatred towards
ethnic Armenians is cultivated on the state level. One of the
reflections of this is that in Azerbaijan the Nagorno Karabakh
conflict is presented as an ethnic Armenian-Azerbaijani conflict,
which in itself creates a serious obstacle to resolving one of the
central issues of this conflict – establishment of historical
reconciliation between the two nations.

The Nagorno Karabakh Republic is a reality recognized by many in the
world. We were able to defend our independence in the war forced on
us by Azerbaijan. Moreover, in a relatively brief period of time we
were able to overcome the war’s consequences and build a state,
which according to many criteria is ahead of many recognized states.
It is my conviction that our republic’s accomplishments are
fundamentally based on a conscious choice that we made in favor of
democracy and a civil society. This path was not without its trials
and tribulations. The turning point in the history of our democracy
came in 2000, when our republic overcame the last vestiges of the
post-war syndrome, and firmly established itself on the path of
democratic development.

Elections serve as one of the benchmarks for any democracy. And in
this case too we have something to be proud of. Elections in
Karabakh, and this is confirmed by all international observers
including those from the United States, are conducted on a high
level and without major violations. Some of the polls are won by
the political opposition. This was the case during the 2004
municipal elections, when an opposition candidate was elected mayor
of the Karabakh capital. Over the last several years, our electoral
laws have undergone substantial changes towards democratization and
transparency. Next year, there will be presidential elections in
Karabakh. Although I will not participate as a candidate, I will use
the established institutions to do everything I can so that the
positive democratic trends in our country continue and deepen.

In the last several months we in Karabakh have been discussing a
draft of our future Constitution. This process involves political
parties as well as non-government entities. The product of this
discussion will be a document that reflects the fundamental values
of our people and a social consensus about the administration of our
state. Our citizens will judge the constitutional proposal at a
referendum set for December 10, 2006.

I would note, that while these, and other, democratic processes are
welcomed by our international partners, NKR remains an
internationally unrecognized state. In practice, this means that we
are denied the opportunity to receive aid from the international
community, such as loans and financial assistance from international
organizations: this, in a context where our people have lived
through war that caused so much damage to Nagorno Karabakh. Even
the refugees resident in NKR have been denied help from
international organizations. These refugees are left outside their
purview. But can these people be blamed for living in a state that
is not internationally recognized? This is a case when political
considerations ought not to trump basic humanitarian needs. I am
happy to welcome the United States’ leadership in this matter, and
specifically the continuing program of U.S. humanitarian assistance
to the war-ravaged people of Karabakh. I extend to the American
people and its government our most sincere appreciation for this
vital assistance.

In spite of the lack of assistance from international organizations,
life in our republic continues to dynamically develop. Our economic
development also gives us something to be proud of. We have enjoyed
sustained economic growth in the last several years. Structural
reforms continue to improve conditions for a market economy and
entrepreneurship. We pay particular attention and provide state
support to small and medium businesses. Over the past decade, the
average annual increase in our Gross Domestic Product (GDP) has been
about 10 percent. Thanks to our liberal tax laws there has been an
increase in private investments in NKR’s economy. In the last seven
years, such investments have totaled 80 million U.S. dollars. These
investments come primarily from our compatriots in the United
States, France, Russia, Australia, Switzerland, Lebanon, Canada and
other countries. Local entrepreneurs are also increasing their
business activity, and a share of domestic investments is increasing
daily. Today, Nagorno Karabakh exports its products to Armenia, the
United States, Russia and countries of the European Union. Compared
to 1999, our export volumes have increased 16 times.

Just recently, at the beginning of October of this year, 77 members
of the U.S. Congress wrote to President George W. Bush to stress the
need to expand the United States’ relations with Nagorno Karabakh.
Using this opportunity, I would like to share our vision of our
relations with the United States and other countries. First, it is
difficult to overestimate the U.S. role as a mediator in the peace
process. In my view, the United States and other leading
international players interested in maintaining stability in our
region, should actively prevent Azerbaijan’s campaign to again
militarize the Karabakh conflict. In this regard, several steps
could be envisioned, including an international embargo on weapons
supplies to Azerbaijan, particularly keeping in mind that this
country is already in violation of its commitments under the
Conventional Forces in Europe (CFE) Treaty.

I would also call on the mediator-countries to initiate the signing
of a separate memorandum between the parties to the conflict that
would state their commitment to resolve the existing disagreements
through peaceful negotiations and reject military means. Such a step
could serve as a clear demonstration by the parties of their
commitment to civilized solutions to problems, while the document
itself could serve as the basis for future regional security
arrangements.

Second, the level of relations between NKR and the world cannot and
must not be determined by Azerbaijan. Believe me that were it up to
Azerbaijan there would be no democratic or economic development in
Karabakh. Moreover, since we are dealing with a totalitarian, an
extremely aggressive and dangerous regime, Azerbaijan could well try
to deliver on its threats to completely wipe out our homeland.
Certainly, such a regime cannot be permitted a veto in matters of
Karabakh’s development.

Therefore, we would like to see a much more active U.S. and
international role in Nagorno Karabakh’s democratic and economic
development. While we have our accomplishments, there are plenty of
unresolved issues, where we need the help of the international
community, and we certainly still have a lot to learn.

In conclusion, let me say that Nagorno Karabakh is one of the most
beautiful corners of the world. This is a country of kind, wonderful
people, unique cultural heritage, and natural settings of
astonishing beauty. Today, Karabakh has the necessary
infrastructure both for doing business, as well as for recreation
and tourism. I would like to invite you to Karabakh, please come and
see it with your own eyes.

Thank you for your attention!

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This material is distributed by the Office of the Nagorno Karabakh
Republic in the USA on behalf of the Government of the Nagorno
Karabakh Republic. The NKR Office is registered with the U.S.
Government under the Foreign Agent Registration Act. Additional
information is available at the Department of Justice, Washington,
D.C.

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