Author: Kharatian Ani

10 TO 30MLN. USD TO BE INVESTED IN “DVIN” HOTEL

YEREVAN, JULY 23. ARMINFO. 10 to 30mln. USD are to be invested in the
Yerevan “Dvin” hotel during the first five years, the representative
of the “Caucasian Communication Group” CJSC, which purchased the hotel
this summer, Andreas Ghukasyan told a press conference.

He accounted for the difference of the cost of the investment program
by possible fluctuations of prices for building materials during this
period. Ghukasyan pointed out that a five-star hotel complex will be
constructed on the basis of the “Dvin” hotel. He pointed out that a
specialized operators will be engaged in external management of the
hotel. According to the project, 200 rooms are to be designed instead
of the current 289. The work is to get under way this year, and the
contractor will be selected as a result of a tender. Since 2001 the
hotel has not regularly worked.

Meanwhile, the confrontation between the hotel personnel and its new
owners goes on. Ghukasyan reported that by January 1, 2004, the
hotel’s debts had amounted to 417mln. AMD (about 800,000 USD), arrears
of wages totaling 138mln. AMD. However, Ghukasyan said that 70mln. AMD
of this sum are also groundlessly claimed to be arrears of wages, but
the new owners are not going to pay them. It is noteworthy that 111
hotel staff members applied to courts and most of the claims were
satisfied. According to Ghukasyan, the former management was
deliberately accumulating arrears of wages, and the new owners intend
to appeal the court verdicts. Seventy-nine staff members have already
been dismissed. Ghukasyan reported that the “Caucasian Communication
Group” CJSC is an Armenian resident and was founded by individuals who
are Russian and Armenian citizens.

BIG CHANGES EXPECTED IN EASTERN AZERBAIJANI OPERATION DIRECTION OF ARMENIAN
ARMED FORCES

YEREVAN, JULY 22. ARMINFO. Armenian President Robert Kocharyan held a
working session today with Head of the General Staff of the Armed
Forces, Deputy Defense Minister of Armenia, Lt.General Mikael
Haroutiunyan.

Talking to journalists today, Haroutiunyan said that with President
Kocharyan he discussed the situation in the region and the General
Staff’s conclusions based on its analysis, operative and tactical
preparation of the country’s Armed Forces. Besides, they discussed the
issues regarding material and technical provision of the Armed Forces
and their financing, discipline and legal order at the armed forces,
as well as the results of the Interstate Armenian-Russian Commission
on Agreement on functioniong of the 102nd Russian military base in
Armenia. President set several tasks on improvement of operative and
tactical preparation of the armed forces, especially orgnaization of
large events at one of the units of Armenia’s Armed Forces of eastern
operation (Azerbaijani ed.) direction, Haroutiunyan said.

Azerbaijan may bankrupt company printing money for breakaway Karabakh – TV

Azad Azarbaycan TV, Baku
19 Jul 04

[Presenter] The Educational Coin Company of the USA does not intend to
stop its campaign to promote the illegal money being printed for the
Karabakh separatists. In response to a query from the Azerbaijani
government, the company said that it is carrying out the promotion
campaign on the basis of a contract. All issues that cause
controversy must be resolved by the sides themselves, the company
said.

[Correspondent over archive footage, web page of Education Coin
Company] The National Bank of Azerbaijan [NBA] has received a reply to
its protest letter sent to the Educational Coin Company of the
USA. The bank protested against the printing of the money under the
name of the self-styled Nagornyy Karabakh Republic [NKR] and demanded
that the printing of the money be stopped.

The company said that Azerbaijan’s claims were true only to some
extent. The company confirmed that it promoted the money of the
separatists but said that another body is printing the money. We are
only promoting the money and in accordance with the mutual agreement
we cannot disclose who prints it or from whom we receive the 10-dram
and 20-dram banknotes presented as the currency of the NKR. This is a
secret. The Education Coin Company also said that it could not stop
its promotion campaign because of the contract with the unnamed body.

Then the NBA asked international experts to track down the company
which is printing the money for the Karabakh separatists. There are
only two companies in the world which produce money-printing
equipment. They either sell the equipment to well-known and affluent
companies or to states. Currently, the NBA and the Azerbaijani Foreign
Ministry continue their investigation into this. If the investigation
reveals the name of the company printing the money, then the
Azerbaijani government will sue it and this could result in the
bankruptcy of the company in question, the NBA said. However, if it is
revealed that the money are being printed under the aegis of a country
then this would lead to an international scandal because the currency
is considered an official attribute of a sovereign state and therefore
Azerbaijan will immediately issue a protest note. End of quote.

As for the separatists, they want to increase the amount of money in
circulation. To recap, the 10-dram and 20-dram banknotes feature the
writing “NKR” and Azerbaijan’s national ornaments and historical
monuments like the Xudafarin bridge [between Azerbaijan and Iran, in
the southwestern Cabrayil District now controlled by the Armenian
forces]. Like the national currency of Armenia, these notes are also
called drams.

Russia to investigate murder of editor
By Arkady Ostrovsky

Financial Times
Jul 19, 2004

Russian police are investigating the murder of Payl Peloyan, editor of
a magazine for the Armenian community, who was killed in Moscow on
Saturday.

Mr Peloyan was the second journalist killed in Moscow in under 10
days.

Mr Peloyan, who edited a Russian language arts and literature magazine
for the Armenian community called Armyansky Pereulok (Armenian Lane),
was found dead with knife wounds to his chest on the side of a Moscow
road. Arkady Ostrovsky, Moscow

The Times (London)
July 17, 2004, Saturday

Celebrating the first Christian nation

by Greg Watts

Greg Watts speaks to the spiritual leader of the world-wide Armenian
Church.

IF YOU happen to walk along Iverna Gardens, a quiet street in
Kensington, London, you will come across a very unusual small,
square, church built of white stone.

This is the Church of St Sarkis, home to members of the oldest
Christian nation in the world, Armenia.

Situated between the Black Sea and Caspian Sea, Armenia declared
Christianity the state religion in 301 after St Gregory the
Illuminator converted King Trdat III.

The Armenian Church split with mainstream Christendom in 451 when it
disagreed with the Council of Chalcedon’s declaration that Christ had
two natures, human and divine.

Most Armenians belong to the Armenian Apostolic Church, known as one
of the ancient churches of the East, which are distinct from the
Orthodox churches. Three of the quarters in the old city of Jerusalem
represent the great monotheistic faiths, Judaism, Christianity and
Islam. The fourth quarter is home to the Armenians.

The first Armenians to arrive in Britain settled in Manchester in the
19th century. A mixture of textile traders, small manufacturers and
retailers, in 1870 they built the first Armenian church in Britain.
Today, there are an estimated 12,000 Armenians in Britain,
concentrated mainly in London. Apart from St Sarkis, the capital’s
Armenians also worship in nearby St Yeghiche, a former Anglican
church.

Last month, Catholicos Karekin II, the spiritual head of the Armenian
Apostolic Church, visited Britain. His itinerary included meetings
with the Queen and the Archbishop of Canterbury, Dr Rowan Williams.

The ties between the Armenian Apostolic Church and the Church of
England are very close and go back more than a century, Catholicos
Karekin said. “The Archbishop of Canterbury and I spoke about the
role of the Church in the world, especially in a world of conflict
and on behalf of all people everywhere. We prayed together for better
understanding in the world.

“Also, we agreed that the Church of England and the holy see of
Etchmiadzin would set up an exchange programme whereby the Church of
England would send student clergy to Etchmiadzin. Armenian student
priests come to Britain with the help of the Church of England.”

Armenia achieved independence from the Soviet Union in 1991. After 70
years of Communist rule, he continued, the Church has to meet a
number of major challenges.

“We need Christian re-education and we must build more churches and
rehabilitate existing churches. And we need more priests. We need
about 2,000 worldwide, but we are graduating only about 50 each year.
We hope soon to double that, and towards that end we are expanding
the seminary in Sevan and we are building a new seminary in Gyumri,
north of the capital Yerevan.”

Young people, said Catholicos Karekin, are flocking to the Church. “I
am very pleased with the interest that our young people are showing
in the Church. We have set up seven youth organisations, which
attract about 5,000 young people each week. These included sports and
traditional Armenian music and folk dancing classes. Also, the
history of the Armenian Church is now being taught in all schools.”

However, he accused what he calls “born-again sects” of destroying
the traditional Armenian family. “These are mostly
American-orientated, and include the charismatics, the Jehovah’s
Witnesses and the Mormons. Because Armenia is a poor country, due to
the combination of the effects of the 1988 earthquake, the war with
Azerbaijan, and the damaging blockade by Turkey and Azerbaijan, these
wealthier sects have created a situation whereby faith is a buyable
and sellable commodity. They are offering food and materials in
exchange for abandoning the Armenian Church and becoming one of their
followers. It hurts me to say that some Armenian families realise
that their faith is saleable.”

Bishop Nathan Hovhannisian, Primate of the Armenian Apostolic Church
in Great Britain, admitted that the Armenian Church in Britain faces
the same problems as other churches in attracting young people. Thus
the K Tahta Armenian Community Sunday School in Acton, West London,
plays an important part in trying to encourage young Armenians to
value and understand both their faith and their culture.

“The school is the only place where young people can learn about
their national identity. There are classes in the catechism, Armenian
language, history and music. We are not nationalists but we love our
nation and our culture,” said Bishop Hovhannisian.

Armenians claim that 1.5 million of their people were killed and
600,000 deported in 1915 by the Ottoman Turks. They condemn the
deaths as organised genocide. But the issue remains controversial
because the Turkish Government has always denied that what happened
qualifies as genocide. It maintains that the deaths were precipitated
by the outbreak of war and were justifiable as a military reaction to
Armenian insurrection.

“The issue of the genocide is very important for Armenians. It’s a
moral issue first of all rather than a political issue. Any genocide
that is not recognised can lead to further genocides. The Armenian
genocide is important for all mankind, not just the Armenians. On
April 24 each year we commemorate all the victims. I hope that one
day all nations will recognise the genocide,” Bishop Hovhannisian
concluded.

YEREVAN PRESS CLUB WEEKLY NEWSLETTER

JULY 2-8, 2004

HIGHLIGHTS:

“MEDIA GROUP” FACING THE DANGER OF LIQUIDATION

“INVESTIGATIVE JOURNALISTS” ADDRESSED THE COURT OF APPEALS

“MEDIA GROUP” FACING THE DANGER OF LIQUIDATION

On July 7 the Chamber for Civil and Commercial Cases of the RA Court of
Cassation left the decision of the second jurisdiction on the suit of
Vanadzor (Lori region) public information organization “Media Group” versus
the State Social Security Fund unchanged.

As it has been reported, the litigation between the parties started in as
far back as 2003 when “Media Group” with the assistance of “World Learning”
international organization was implementing a project “Strengthening of
Relations between the Organizations and the Community of Vanadzor”. The
representatives of State Social Security Fund, after an audit, recognized
the “Media Group” volunteers to be paid employees and in this regard
demanded the organizations to make appropriate social security payments and
pay a fine. The last court ruling of June 3, 2004 obliged “Media Group” to
cover the debt to the State Social Security Fund, but with no fine payments
(see YPC Weekly Newsletter, June 4-10, 2004).

According to the representative of “Media Group” Edmon Marukian, now,
according to the Armenian legislation, the ruling execution is to start
against the NGO, its property will be arrested to be later sold from an
auction. As Marukian said, the organization does not have any funds to cover
the liabilities to the State Social Security Fund. This is an amount of
about 500,000 drams (about $ 1,000), including the execution costs. However,
“Media Group” will continue to protect its rights and intends to address the
European Court of Human Rights.

On July 7 the employees of Vanadzor organization held a protest action
before the building State Social Security Fund in Yerevan.

“INVESTIGATIVE JOURNALISTS” ADDRESSED THE COURT OF APPEALS

On July 6 “Investigative Journalists” public organization and its chairman
Edik Baghdasarian challenged with the RA Court of Appeals the decision of
the court of primary jurisdiction of Center and Nork-Marash communities of
Yerevan on the suit versus the Yerevan municipality. As it has been
reported, on June 21, 2004 the court of primary jurisdiction declined the
suit of “Investigative Journalists”. The plaintiff demanded that the
municipality provide the resolutions of the city administration of 1997-2003
on the construction in public green zone around the National Theater of
Opera and Ballet, necessary for a journalistic investigation. The judge
motivates her ruling saying the organization did not attempt to receive the
necessary information from other state institutions before addressing the
municipality and the inquiry was not specific enough (see YPC Weekly
Newsletter, June 18-24, 2004).

“Investigative Journalists” demand that the ruling of the primary
jurisdiction court be abolished and the actions of the municipality be
qualified as a refusal in information. Along with this, the organization
addressed a new inquiry to the municipality of Yerevan, listing all the
enterprises operating on the territory around the Theater of Opera and
Ballet and of interest to “Investigative Journalists”.

N.B. Dear readers, please note that YPC Weekly Newsletter will next be
issued in early September, 2004.

When reprinting or using the information above, reference to the Yerevan
Press Club is required.

You are welcome to send any comment and feedback about the Newsletter to:
[email protected]

Subscription for the Newsletter is free. To subscribe or unsubscribe from
this mailing list, please send a message to: [email protected]

Editor of YPC Newsletter – Elina POGHOSBEKIAN
____________________________________________
Yerevan Press Club
9B, Ghazar Parpetsi str.
375007, Yerevan, Armenia
Tel.: (+ 374 1) 53 00 67; 53 35 41; 53 76 62
Fax: (+374 1) 53 56 61
E-mail: [email protected]
Web Site:

Armenian, Egyptian officials discuss ties, fight against terrorism

Arminfo
7 Jul 04

Yerevan, 7 July: Armenian Foreign Minister Vardan Oskanyan today
received Muhammad Sha’ban, assistant minister of the Egyptian Foreign
Ministry. Sha’ban is paying a two-day visit to Yerevan in order to
conduct a political dialogue between the two countries’ foreign
ministries.

The sides said they highly value the Egyptian-Armenian political
dialogue and the countries’ cooperation within international
organizations, the Armenian Foreign Ministry’s press service has told
Arminfo news agency. It is important to intensify economic ties and
the Armenian community in Egypt is playing a significant role in this,
the sides said.

After that, they exchanged views on developing international
relations. In particular, they touched on the situation in Iraq and a
peaceful settlement to the Palestine-Israel conflict. In this
connection, the sides condemned any acts of terrorism.

Oskanyan briefed Sha’ban on Armenia’s relations with the EU and Turkey
and on the latest developments around the Nagornyy Karabakh conflict
settlement.

Sha’ban has already met Armenian Deputy Foreign Minister Ruben
Shugaryan.

Associated Press
July 6 2004

‘Ararat’ film wins top ‘Golden Apricot’

Canadian director Atom Egoyan poses before the screening of his
film “Ararat,” at the 55th International Film Festival in Cannes,
southern France on May 20, 2002. (AP Photo/Michel Euler)
YEREVAN, Armenia — Atom Egoyan’s film “Ararat” won the top prize at
the Golden Apricot Film Festival of works by ethnic Armenian
directors, officials said Monday.

The festival included 57 movies by directors from 20 countries.
Egoyan is a Canadian of Armenian heritage.

The film depicts the plight of Armenians in Ottoman Turkey. Armenians
say that a 1915-1923 campaign to force Armenians out of eastern
Turkey left 1.5 million people dead and amounted to genocide. The
title refers to the mountain that Armenians regard as their national
symbol but which now lies in Turkey.

Eurasianet Organization
June 28 2004

NEW ARMENIAN ECONOMIC PLAN TARGETS POVERTY
Haroutiun Khachatrian: 6/28/04

As Armenia’s economy continues to post record growth, the government
has announced an ambitious campaign to tackle the poverty that has
marred living conditions in the country since the collapse of the
Soviet Union. The government’s change in tactics comes as the
opposition continues to campaign for the removal of President Robert
Kocharian from office.

For the past few years, Armenia has had one of the best performing
economies in the former Soviet Union. Annual economic growth has
averaged over 10 percent. Price liberalization and privatization
programs and the accession of Armenia to the World Trade Organization
in 2003 have all contributed to the surge. Foreign direct investment
has increased by 74.5 percent since 2003, according to the National
Statistics Service, with much of that coming from the far-flung
Armenian Diaspora. Last year, the European Bank for Reconstruction
and Development cited Armenia as the most likely candidate among the
former Soviet Union for accession to the European Union.

But while Armenia’s economic reform program has won raves from
international finance institutions, the benefits have not been
equally shared. Nearly half of Armenia’s population of roughly 3.2
million people lives beneath the poverty line. A slight increase in
unemployment in 2003 gave Armenia a 10.1 percent jobless rate,
according to government data, and annual per capita income is less
than $600. Only half of Yerevan’s residents have running water 24
hours per day, and electricity and phone service are sporadic at
best. Outside the Armenian capital, infrastructure has crumbled still
further since Soviet times with barely functional roads, derelict
schools and a battered health care system.

“The government has a good national perspective. But they seem to
have problems persuading outsiders that the same kind of reforms are
needed outside Yerevan,” said the International Monetary Fund’s
Armenia representative, James McHugh.

With the announcement that the World Bank, Armenia’s largest
creditor, will focus its future assistance to the country on poverty
reduction efforts, that scenario could be set to change. The Bank is
expected to extend $250 million for work on rural schools, roads and
irrigation by November 2004, Finance and Economy Minister Vartan
Khachatrian told journalists earlier this month. The funds come on
top of an additional $35 million in Bank funds for support of
Armenia’s public utilities, agricultural sector and civil service.

Announcing the program, Kahchatrian declared that the structural
reforms necessitated by Armenia’s transition to a free market economy
were “almost complete,” prompting the government to focus instead on
a 12-year plan for slashing poverty levels. Since 1993, Armenia has
received more than $1 billion in loans from international financial
institutions and foreign governments for currency stabilization,
privatization, earthquake reconstruction projects and support for
such high-priority economic sectors as energy, agriculture and
transportation.

The government also hopes to secure additional funds from the US
Millennium Challenge Account (MCA) program for rural revitalization
schemes similar to those targeted by the World Bank. Prime Minister
Andranik Markarian told reporters on June 16 that Armenia would
present a series of proposed projects ranging from school
construction to repair of irrigation networks and roads to the MCA
for approval by the end of July. Under the MCA financing rules,
participant countries must do their own evaluations of funding needs
and detail how they would spend any received aid. Armenian government
estimates for funds to be requested have ranged from $500 million to
$700 million, with some $100 million expected for 2004. Approval for
the funds is subject to MCA countries’ progress on democratic reform
and defense of human rights.

Securing these funds could prove increasingly important for President
Robert Kocharian’s government if Armenia’s political opposition gains
broader popular support. A harsh government crackdown in mid-April on
street protests in Yerevan that called for Kocharian’s resignation
has slashed attendance at the rallies, but the opposition shows
little sign of giving up its struggle. On June 21, Viktor Dallakian,
a leader of the opposition alliance Artarutiun, told RFE/RL that the
group was considering a national petition drive for Kocharian’s
removal from office.

While the government in Yerevan has displayed little consternation at
such threats, it is quick to point out the economic successes of its
reform programs to international organizations as a counter-balance
to criticism of its human rights record.

Government forecasts put expected annual GDP growth for 2005 – 2007
at 6-7 percent. That is a significant slow-down from 2003, when
Armenia’s economy grew by 13.9 percent, but still higher than
Armenia’s neighbor – and growing competitor for international
assistance – Georgia, which registered only 5 percent economic growth
in 2003. Reflecting the slower growth rate, inflation is expected to
hold steady at around 3 percent, according to government figures.

But some representatives of international finance organizations
caution that economic reforms in Armenia are far from complete. Among
the tasks targeted by the International Monetary Fund is an overhaul
of the tax system, including the elimination of so-called presumptive
taxes, which target mostly cash-based businesses, such as consumer
services, and do not reflect the actual income of the taxpayer. “Of
course, we do not expect that due to this program Armenia will become
a really European economy with a modern tax system,” said the IMF’s
Armenia representative James McHugh, “but we are confident that it
will take a major step in the direction of eliminating ad hoc taxes.”

For now, political discussions on Armenia’s economic reform strategy
are largely limited to the government’s policy statements. The
opposition has focused on removing Robert Kocharian from office
rather than arguing for an alternative economic reform plan. Hrant
Bagratian, the former prime minister largely credited with
jumpstarting Armenia’s economic reform process in the 1990s, is among
the few people criticizing the government’s poverty reduction vision.
In a June 16 interview with the daily/weekly Noyan Tapan, Bagratian
termed premature Khachatrian’s statement that structural economic
reforms are now complete. Instead, Bagratian targeted the national
pension system, judicial system and the management of state-run
companies as among the areas still left untouched by reform.

Meanwhile, despite glowing marks for Armenia’s economic reform
programs, the country’s search for international assistance is facing
increased competition from neighbor Georgia, where an ambitious
anti-corruption campaign recently brought in $1 billion from
international donors, including the European Union. In a June 15
article, EU officials told Radio Free Europe/Radio Liberty that,
despite Armenia’s inclusion in a program designed to bolster regional
trade ties, the country’s attractiveness for additional aid programs
has been marred by its ongoing dispute with Azerbaijan over the
disputed enclave of Nagorno-Karabakh.

Editor’s Note: Haroutiun Khachatrian is a Yerevan-based writer
specializing in economic and political affairs.

Anadolu Agency
June 28 2004

Turkish President Sezer Meets With French President Chirac

ISTANBUL – Turkish President Ahmet Necdet Sezer met on Monday with
French President Jacques Chirac, who is currently in Istanbul for the
NATO Summit.

Turkish Foreign Minister and Deputy Prime Minister Abdullah Gul and
French Foreign Minister Michel Barnier also attended the meeting.

Following the meeting, President Sezer’s Foreign Policy Chief Adviser
Sermet Atacanli told reporters that Sezer focused on Turkey’s
European Union (EU) membership in his meeting with Chirac.

Atacanli said that Sezer explained once again that Turkey expected
France, which was one of leading countries in the EU, to support
Turkey’s EU membership.

Atacanli quoted Sezer as saying that Turkey fulfilled all political
criteria of EU, noting that Turkey expected to be treated as other
countries which fulfilled those criteria.

Stating that Sezer said in the meeting that he expected the report on
Turkey that would be announced by EU Commission in October to be
positive, Atacanli quoted President Sezer as saying that EU should
set a date for Turkey in December to start its membership
negotiations with the Union.

Noting that Sezer also focused on Cyprus issue in his meeting with
Chirac, Atacanli quoted Sezer as saying that new developments took
place after referenda held in Cyprus on April 24 and Turkish Cypriot
side showed its determination for solution in referendum. Atacanli
said that Sezer noted in the meeting that Greek Cypriot side did not
put forth good will on that issue.

Atacanli stated that Sezer stressed that embargoes imposed on Turkish
Republic of Northern Cyprus (TRNC) should be lifted immediately.

When asked what were the views of Chirac about Cyprus issue, Atacanli
said, ”both Chirac and French Foreign Minister, who also attended
the meeting, said that they are aware of developments in Cyprus and
welcomed the attitude of Turkish side and they noted this. Mr. Chirac
said regarding the EU issue, ‘you know my stance about EU issue. And
you also know that my stance is positive.’ Mr. Chirac said that
Turkey has started its EU trip 40 years ago and the EU has a 40 year
of commitment and this commitment concerns a vision related with the
future of Europe.”

Atacanli said that Chirac also noted that the commission report which
would be presented in October was important.

When asked whether Armenian problem was brought onto agenda during
the meeting, Atacanli said that President Sezer stressed Turkey’s
sensitivity over the so-called Armenian genocide which is
occasionally brought onto agenda of French Parliament.

Atacanli said that Sezer earlier invited Chirac to Turkey and he
repeated this invitation during the meeting. Atacanli added that this
invitation was accepted and the date would be cleared later.