BAKU: Az. Opp. party denounces arrest of Karabakh movement activists

Azeri opposition party denounces arrest of Karabakh movement activists

Turan news agency
28 Jun 04

BAKU

The Azarbaycan Milli Istiqlal Party [AMIP] has issued a statement over
the arrest of activists of the Karabakh Liberation Organization [KLO].

The party assesses the dispersal of protesters as a “crude mistake” of
the authorities, and the arrest of the KLO chairman, Akif Nagi, as an
“insult” to the Azerbaijani statehood.

The AMIP demands that the six arrested members of the KLO be
immediately released and those who took such an “irresponsible”
decision against the protesters be punished.

[The six were sentenced to two months’ imprisonment for protest
against the Armenian presence at a NATO meeting in Baku.]

Ukrainian defence minister welcomes passage of military reform bill

Ukrainian defence minister welcomes passage of military reform bill

Den, Kiev
23 Jun 04

Parliament’s vote to pass a military reform law on 22 June means that
the armed forces can move forward, Ukrainian Defence Minister Yevhen
Marchuk has said. Speaking in a newspaper interview, Marchuk said that
there is finally a realization that it is not numbers of soldiers that
are the main factor in ensuring security, but the quality of the armed
forces. Ukraine’s aim of joining NATO is now part of the country’s
official military doctrine, Marchuk said. The following is the text of
the interview Marchuk gave to journalist Oleh Ivantsov entitled “Rules
and calculation of military reform defined. At last” published in the
serious Ukrainian daily Den on 23 June; subheadings have been inserted
editorially:

Ivantsov Defence Minister Yevhen Marchuk commented on the adoption
yesterday of the “legislative package” of military reform by telephone
to Den.

What opportunities does yesterday’s 22 June parliamentary vote open
up? What should now be expected?

Marchuk The formation of a hierarchy of legal provision for military
reform has been completed. Today (yesterday – Editor) apart from the
fact that parliament voted, the president Leonid Kuchma signed the
Strategic Defence Bulletin. And this means that the defence review
has been completed. To put it more simply, Ukraine has completed
deciding what military structure exists today. It may look a bit
strange, but unfortunately that’s exactly how it is. To be sure, we
are not in a unique position here: almost all post-Soviet countries
have travelled this path. On the other hand, the adoption of these
documents precisely today – the law on numbers and the Strategic
Defence Bulletin – answers the question: what military threats is the
state facing today? And the second thing – what should the priorities
be for the armed forces in connection with this?

Apart from that, the reform process has to be well-calculated,
primarily in the interests of the servicemen themselves, to make sure
that the military do not suffer, first the people who will be
dismissed from the armed forces, and second to ensure that there will
be a substantial improvement in provision for servicemen who will be
serving in the army in future. For this, a government resolution has
confirmed forecast indicators for funding the armed forces in 2005. It
set out in detail the funding connected with armed services reform,
the budget and the growth in GDP and social payments.

How the overall average wage will increase in the state, what will be
the evolution of pensions, GDP and inflation – these are not data
“plucked from the air”. They were very painstakingly calculated: it
took three sittings of the state commission headed by the prime
minister Viktor Yanukovych to achieve the agreed indicators. The
document was signed by the prime minister, the finance minister Mykola
Azarov , the defence minister and so on.

Today the reform of the armed forces, or more accurately their
reconstruction, has a scientific basis. After all, the reform
programme was developed by scientific specialists, specialists in
military science and civilian experts. The reconstruction also has a
financial basis that was calculated fairly accurately. Third, there is
a very important document – the law on social protection – which has,
I would say, social guarantees for servicemen unparalleled in all the
years of independence. After all, servicemen had been dismissed
previously – 13,000 last year, 15,000 the year before and 45,000 in
1999. But they did not have substantial social guarantees.

Importance of military budget changes

The main thing is that all these decisions make it possible to bid
farewell to the old, very offensive structure of the military
budget. Next year our budget package in the Finance Ministry, the
government and parliament will differ substantially from this year,
because in next year’s budget there will be the possibility of
investing big funds in the development of the armed forces, the
development of new weapons, raising salaries and finally raising the
reputation of military service.

Ivantsov On the eve of the NATO summit in Istanbul, can it be claimed
that the passing of laws on army reform and the signing of the
Strategic Defence Bulletin mean that questions of military reform have
been solved before the summit?

Marchuk It can be said that the legal, organizational and financial
road has been opened for radical reconstruction of the armed
forces. Now it is all about implementation. I would not say that
reform is primarily needed for us and our armed forces before the
summit or after the summit. We are confirming that our declarations
last year about reform of the armed forces are real and fairly
concrete. It is also very important that all of this year’s budget
targets, which include articles connected with reform, were met in the
first half of the year. And the second half, in connection with
certain increases, gives a full guarantee that everything planned for
army reform in the social and financial dimension will be
fulfilled. This means that we, as firm partners, have not just made
declarations, but have done everything possible to start serious
reconstruction of the armed forces and move towards the armed forces
of the future.

Ivantsov How would you comment on the opponents of military reform, in
particular the parliamentary opposition?

Marchuk The factions that voted against last time, voted against this
time as well. In the ideological and political sense, the position of
centre-right opposition bloc Our Ukraine is surprising. Their
activists understand very well that reform of the armed forces is
connected with confirmation of our Euroatlantic integration. An
important aspect that should be noted is to remember that it was
certainly not easy to get these important documents through
parliament, the Security Council and the government. Not easy in the
sense that new realities had to be recognized. It was very difficult
for many people to abandon the idea that we cannot build or leave our
armed forces for circular defence.

Collective security

There are two collective defence systems around us, in which the
principle of “one for all and all for one” applies. It was very
difficult to give up stereotypes and the traditional understanding
that numbers define the might of the armed forces. All Eastern
European countries, even our neighbours, have outgrown that
anachronism. The recognition that in today’s world military security
for the state is provided not by the numbers, but the quality of the
armed forces of the state was very painfully taken on board. And not
only among the military, but also in society.

And the second important aspect that was also difficult to get through
in an evolutionary way concerns the fact that Ukraine, both in the
military doctrine and in the Strategic Defence Bulletin, confirmed the
fact that it is moving in the direction of joining a system of
collective defence and security, understanding that by itself it is
almost impossible in today’s world to guarantee its security, first
and foremost military. This is all in the documents; they are now
national documents, but we spent almost a year getting there in
complex discussions.

The little Czech Republic is a hundred times better defended than
Ukraine, because it is defended by a collective defence
system. Another military political bloc – the Tashkent agreement that
includes Russia, Belarus, Tajikistan, Kazakhstan and Armenia – also
has the principle of collective defence. Therefore, the change towards
realizing that we need to move towards a collective defence and
security system is a higher level of guarantee of security as a whole,
in particular military.

Ivantsov Is the aim of joining NATO written only in the Military
Doctrine?

Marchuk In the Strategic Bulletin as well. What is more, adaptation
and evolution of military organization and the armed forces to NATO
standards are defined as an aim. If the final aim has been set to join
the NATO collective defence and security system in future, then we
should approach that time as serious partners with achievements in the
military sphere, i.e. as a military organization that would be
compatible, even in language – from the linguistic and mentality point
of view. Not to mention the actual structure of the armed forces.

RFE/RL Russian Political Weekly – 06/24/2004

RADIO FREE EUROPE/RADIO LIBERTY, PRAGUE, CZECH REPUBLIC
_________________________________________ ____________________
RFE/RL Russian Political Weekly
Vol. 4, No. 24, 24 June 2004

A Weekly Review of News and Analysis of Russian Domestic Politics

************************************************************
HEADLINES:
* PUTIN CASTS HIS VOTE FOR BUSH
* ART TRIAL IN RUSSIA SEEN AS TEST OF FREE EXPRESSION
* RUSSIA’S DEFEATED LIBERALS MULL MERGING WITH PARTY
OF POWER
************************************************************

KREMLIN/WHITE HOUSE

PUTIN CASTS HIS VOTE FOR BUSH

By Robert Coalson

President Vladimir Putin caught Russian, U.S., and European
observers off guard on 18 June when he unexpectedly announced that
Russian intelligence services had repeatedly received information
that former Iraqi leader Saddam Hussein was planning terrorist
attacks against the United States and U.S. interests abroad. In the
ensuing days, Russian commentators have been energetically dissecting
the context of Putin’s statement and speculating on just what the
KGB veteran might be thinking.
Russian media reports were decidedly skeptical about the
veracity and spontaneity of Putin’s remarks. They noted that
almost as soon as the preliminary report of the U.S. commission
investigating the 11 September 2001 terrorist attacks was made
public, an anonymous “Russian intelligence source” told Interfax that
“as early as early 2002 Russian intelligence learned that the Iraqi
special services were planning terrorist attacks on the United States
and on U.S. diplomatic and military facilities abroad.”
“Kommersant-Daily” reported on 21 June that the Interfax report was
issued even before the final commission session had ended.
The statement came just as U.S. President George W. Bush was
facing harsh criticism for launching a military operation against
Hussein largely on the basis of arguments from his administration
that the Iraqi leader posed a terrorist threat to the United States.
Journalists and analysts quickly began describing Putin’s
statement as open support for Bush.
“Kommersant-Daily” and “Vremya novostei” on 21 June both
speculated that this low-level support for Bush failed to produce a
sufficient resonance in the West. Therefore, the newspapers wrote, at
a press conference in Astana, Kazakhstan, the Kremlin arranged to
have a reporter ask Putin a completely off-the-wall question about
the U.S. commission’s report. This gave Putin the opportunity to
repeat — almost word for word — the statement from the anonymous
intelligence source that Interfax had reported the previous day.
“Yes, after the events of 11 September 2001 and before the
beginning of the military operation in Iraq, the Russian special
services repeatedly received information that official organs of the
Hussein regime were preparing terrorist attacks on the territory of
the United States and on military and civilian targets outside its
borders,” Putin said. “This information really was transmitted
through cooperative channels to our American colleagues.”
Although Putin was quick to add that Russia’s opposition
to the military operation in Iraq had not changed, his remarks
clearly marked a shift toward the Bush administration’s
positions. “Does this mean that there is reason to argue that the
United States acted in self-defense?” Putin said. “I don’t know.
That is a separate topic.”
Journalists and analysts quickly began describing Putin’s
statement as open support for Bush. Moscow “is looking pragmatically
at the future — at the presidential elections in the United States.
It seems that the Kremlin has made up its mind and is backing Bush,”
“Vremya novostei” wrote. A sampling of leading Russian analysts
published by politcom.ru on 15 June found both that most of them felt
that Bush will win the 4 November election, and that Iraq will be the
most important issue.
But there was considerable skepticism about the veracity of
Putin’s declaration. The press argued that if the U.S.
administration had had such information in the run-up to the military
operation, it would have used it to convince the UN Security Council
to adopt a resolution authorizing the action. Media reports noted
that neither Bush nor Vice President Dick Cheney mentioned such
Russian reports during their testimony before the 11 September
commission. Analyst Boris Vinogradov, writing in “Novye izvestiya” on
21 June, noted that Putin’s statement put German Chancellor
Gerhard Schroeder and French President Jacques Chirac — both of whom
have heretofore enjoyed close personal relations with Putin — in an
“idiotic position,” because Putin implied that Russia did not share
this intelligence with its “allies” in the antiwar coalition.
These doubts and others reinforced the impression that the
statement was clearly intended as political support for Bush. And
although there was no shortage of theories about what might be
motivating Putin to make such a transparent gesture now, none of them
seemed entirely convincing.
“Kommersant-Daily” on 21 June noted that the Kremlin
traditionally “finds it much more convenient” to deal with Republican
U.S. administrations than Democratic ones, which “tend to harp too
much on human rights.” Bush, it noted, did not listen to a group of
U.S. congressmen who recently called on the administration to exclude
Russia from the Group of Eight (G-8) leading industrialized
countries. One of the analysts surveyed earlier by politcom.ru,
Strategic Studies Center Director Andrei Piontokovskii, noted in his
assessment of the U.S. election that Democratic challenger Senator
John Kerry has been rumored to be considering asking Republican
Senator John McCain to be his vice presidential candidate and that
McCain was one of the sponsors of the movement to exclude Russia from
the G-8.
Putin’s comments about Hussein lent added significance to
his many statements in support of Bush at the G-8 summit in the
United States earlier this month. At that time, Putin congratulated
Bush for the turnaround of the U.S. economy and said that the
Democrats “don’t have the moral right to attack George Bush for
Iraq since they themselves did the same thing [in Yugoslavia in
1999].”
“Kommersant-Daily” also attached significance to the fact
that Putin made his statement while meeting with Central Asian
leaders. Part of Putin’s message, the daily commented, was to
demonstrate that Russia is an equal partner with the United States in
the struggle against international terrorism and “to show who is the
most important in the CIS.”
“Nezavisimaya gazeta” on 22 June speculated that Putin might
be giving Bush a hand regarding “Saddam’s terror” in order “to
get Washington’s support against ‘Chechen terror.'” It
added as well that Putin’s support might enable him to bargain
for “a special role” in post-Hussein Iraq. The daily connected
Putin’s statement and his purported desire for Western
understanding regarding Chechnya with an unsubstantiated 20 June
report in the Italian daily “La Repubblica” that some 300 Chechen
fighters have appeared in Iraq to support Iraqi insurgents.
Finally, Kremlin-connected political consultant Stanislav
Belkovskii told APN on the day of Putin’s Astana comments that
Kremlin wants the United States to pressure Qatar to release the two
Russian secret-service agents currently on trial there for the
February assassination of former acting Chechen President Zelimkhan
Yandarbiev. “It is possible that Vladimir Putin’s support of U.S.
President George Bush was a condition for the Americans help in
return in solving the ‘Qatar problem,'” Belkovskii said.
Although analysts were at a loss to come up with a definitive
explanation of Putin’s comments, they were unanimous in viewing
them as an extraordinary and potentially momentous step, possibly as
important as Putin’s fabled telephone call to Bush immediately
following the 11 September 2001 attacks. In the months after those
attacks, Bush repeatedly reminded the world that Putin was the first
global leader to express his solidarity with the United States, and
those months marked the high point of U.S.-Russian relations since
Bush became president.

CIVIL SOCIETY

STATE AND CHURCH. As the trial of the curator of Moscow’s
Sakharov Museum and the organizer of an exhibition on the role of
religion in modern society continues this week (see story below), new
attention has focused on the increasingly prominent role of the
Russian Orthodox Church. However, experts on religion in Russia
suggest that while the church’s public profile was raised during
President Vladimir Putin’s first term, its already limited
political independence is diminishing even further.
On the one hand, the Russian Orthodox Church has managed to
sign a series of agreements with various state organs at the federal
and local levels over the past seven years, gaining new access to
state institutions, such as prisons and military installations.
Orthodox chapels have been opened at train stations and airports. On
the other hand, the church has not secured some key items on its
agenda. For example, a school course on the foundations of Orthodoxy
has not yet been established, although church officials first raised
the issue with the Education Ministry in 1999. The church has also
lost key battles over tax reform and the restitution of church land
and property confiscated by the Soviet regime.
In an overview of how Putin has handled cooperation with the
Patriarchate during his first term, “Vremya novostei” on 4 March
concluded that despite the fact that Putin is himself Russian
Orthodox, he has not personally supported the issues that the church
has been lobbying. The daily argued that Putin has set the right tone
for the rest of government officialdom by observing the
constitutionally established separation of church and state.
Lawrence Uzzell, president of the International Religious
Freedom Watch, takes a slightly different view. He argues that while
the state might not be serving the church’s agenda, the church —
like other civil-society institutions — is in danger of being
co-opted to the service of the state’s agenda. Writing in “First
Things: The Journal of Religion and Public Life” on 4 May, Uzzell
suggested that Putin’s regime is “reviving the old habit of
treating every social institution as if it were an extension of the
state.” He recounts how at the beginning of the year, Old Believer
priests from across the country were summoned to visit the local
headquarters of the Federal Security Service (FSB) in their regions.
FSB officials asked the priests whom they were going to support at a
February council meeting, at which a new head of the Old Believer
sect was to be elected.
Uzzell told RFE/RL that “since the leading metropolitans and
bishops were not willing to criticize [former President] Boris
Yeltsin’s war on Chechnya and other policies even when Yeltsin
was deeply unpopular, it is not likely that they will suddenly begin
to defy a president who is genuinely popular and who has tighter
control of the news media and other key institutions than any Russian
or Soviet leader since the 1980s.” He concludes that the threat to
civil society is all too real — not because the church is swallowing
the state, but vice versa.
This week, “RFE/RL Political Weekly” spoke with Uzzell and
Geraldine Fagan, the Moscow correspondent for the Forum 18 News
Service about the role of the Russian Orthodox Church under Putin.
(Julie A. Corwin)

INTERVIEW

RFE/RL: How has the role of the Russian Orthodox Church
changed under the Putin regime? The church seems to have a higher
public profile now, but is that all there is to it? Or has there been
a deepening of the church-state partnership?
FAGAN: Symbolism aside, not much has been done in favor of
the church on the federal level under Putin — the church is very
unhappy about the new Tax and Land codes, for instance. Although the
security services have been far more active in limiting the activity
of foreign missionaries than under Yeltsin, and there is a passage to
this effect in the national security doctrine, which was one of the
first things Putin signed as acting president in 2000. Strictly
speaking, this [activity] does not concern the role of the church
directly. Also, the federal authorities have been noticeably reticent
in coming out in support of the church’s main demands —
particularly the introduction of a course called the Foundations of
Orthodox Culture in state schools. However, many regional authorities
and some government ministries have continued to form their own close
links with the church — even to a degree that is clearly
anticonstitutional — but it is anyone’s guess whether this is
allowed to take place because (a) Putin actually approves of it but
doesn’t want to show it, (b) he is powerless to stop it, or (c)
he doesn’t particularly care, as it is not that important.
UZZELL: The Moscow Patriarchate actually has less political
clout now than it did in the 1990s. On 4 March, the website for
“Vremya novostei” [] published an excellent
summary by Aleksandr Morozov, who wrote that on a whole series of
issues the advocates of “clericalism” have suffered defeats or have
at least been neutralized. The Foundations of Orthodox Culture course
has not become a mandatory part of the school curriculum. The Culture
and Mass Communications Ministry has won the debate over ownership of
church valuables confiscated by the Soviet state. The Patriarchate
continues to be frustrated in its quest for the quick, massive return
of its pre-Soviet real-estate holdings. And the introduction of
military chaplains in the army is not even on the agenda.
The state’s unwillingness to enact the Moscow
Patriarchate’s agenda has not at all diminished the
Patriarchate’s willingness to serve as the state’s docile,
obedient agent. As far as one can judge from its public statements
and actions, the Patriarchate is content to accept that role — as
are the other mainstream, “traditional” religious organizations. For
example, the nature of Russia’s March 2004 presidential election
was such that calling on citizens to vote — which under other
circumstances might be seen simply as a neutral call for them to do
their civic duty — was in effect an endorsement of Putin. The Moscow
Patriarchate gladly provided that endorsement the week before the
election, with its spokesman Father Vsevolod Chaplin declaring that
“every person must remember about his responsibility for the
country’s destiny, for its choice of a correct historical path to
follow.” Similarly, from Rabbi Berl Lazar — the Putin-favored
claimant to the disputed title of Russia’s chief rabbi — came
the statement that “participation in democratic elections is not only
a man’s right, but first of all the fulfillment of God’s
commandment.” [Both quoted by RIA-Novosti, March 11, 2004.] One
cannot even imagine today’s Moscow Patriarchate challenging Putin
on moral/political issues that the latter really considers important,
such as military atrocities in Chechnya.
RFE/RL: Has the Kremlin found a potential successor for
Patriarch Aleksii II? Or do different parts of the Kremlin support
different parts of the church? Who is Archimandrite Tikhon and what
role does he play in relations between the Kremlin and Patriarchate?
FAGAN: At the moment, the issue of a potential successor for
Patriarch Aleksii is actually less clear than it ever was!
Metropolitan Kirill of Smolensk and Kaliningrad has long been the
most influential Russian Orthodox hierarch after the patriarch and
Aleksii’s obvious successor. While Kirill might turn out to be
content with just “being patriarch” if he were to succeed Aleksii,
the Kremlin would probably prefer someone more pliable, as Kirill has
so far proved unpredictable and independent-minded. I am not
convinced that anyone in the Kremlin would be so concerned by this
that they would go to great lengths to interfere though (although
there are currently a few rumors circulating to this effect),
especially as it is uncertain how long Aleksii will remain in place,
and two of the few other serious candidates, Metropolitan Mefodii and
Metropolitan Sergii, recently lost their power bases.
Archimandrite Tikhon is the energetic youngish abbot of a
Moscow monastery that has attracted many novices in the 10 years
since it was refounded. Being less Sovietized than many of the
hierarchs, Tikhon finds a natural rapport with the Russian Orthodox
Church Abroad, and has therefore been prominent in the recent
meetings with them. He was rumored to be Putin’s spiritual father
a couple of years ago, but although they are certainly well
acquainted, I am not aware of anything to substantiate any closer
tie. Tikhon’s major sponsor is the patriotic [Mezhprombank head]
Sergei Pugachev — you may want to draw some political conclusions
from that….
UZZELL: My best guess is that the Kremlin will keep its
options open and will intervene decisively when the time is ripe, in
such a way that Aleksii’s successor will feel himself deeply
beholden to the Kremlin.
I agree with Aleksandr Soldatov, who wrote in “Moskovskie
novosti” on 21 January that, “Father Tikhon is a consistent,
traditional statist who ideally would not be at all opposed if the
sovereign emperor were once again to become head of the Church.” He
has faithfully served the state’s interests by calming hysteria
among Orthodox fringe elements over being assigned tax identification
numbers (INN). Tikhon visited the influential so-called all-Russian
elder Father Ioann Krestyankin of the Pskov-Pechorskii Monastery, who
had been among those calling the INN dangerous to the soul, and
persuaded him to make a statement that the INN was not a threat. A
videotape of that statement was widely distributed in the
ultra-Orthodox subculture.
It was also telling that Tikhon, a mere archimandrite of a
monastery, rather than a high-ranking bishop such as Kirill,
accompanied Putin to New York last year for his crucial meeting with
Metropolitan Lavreof the Russian Orthodox Church Abroad. Given the
Russian Orthodox Church Abroad’s long record of criticizing the
Moscow Patriarchate for “Sergianstvo” — excessive servility to the
Soviet regime — it is ironic that Tikhon is an even franker
apologist than Aleksii or Kirill for the Patriarchate’s record
under Stalin. His monastery recently published a book glorifying
Patriarch Sergii’s role during the Stalin years and calling for
his canonization.
RFE/RL: Some analysts seem to believe that Putin has been
careful not to tie himself to church too overtly, do you agree?
FAGAN: Basically, yes. He has been careful not to tie himself
with the hierarchy by appearing at the major functions — Easter and
Christmas at the Cathedral of Christ the Savior — only occasionally.
Doing things like making a pilgrimage to the Solovetskii Monastery
and spending Christmas at an ordinary church in Suzdal — after which
he extolled its “real parish” atmosphere to the patriarch on
television speaks volumes. Putin emphasizes his personal ties with
Orthodoxy as a faith, rather than with the Moscow Patriarchate as a
structure. I also think he projects a slight awkwardness in church
situations, which should appeal to the majority of Russian citizens
who say they are Orthodox, but don’t actually know what it’s
about.
UZZELL: Yes. I think it is interesting that he so often does
his “Orthodox photo-ops” for big holidays such as Christmas and
Easter at places such as provincial monasteries rather than standing
alongside the Patriarch in Moscow. His approach seems calculated to
appeal to the majority of ethnic Russians, who in some vague sense
identify themselves as “Orthodox,” who feel instinctive affection for
and loyalty to the Church, but who want to keep it at a comfortable
distance from their lives.
RFE/RL: Why has Putin tried to mend fences between the
Russian Orthodox Church Abroad and the Moscow Patriarchate? And why
has he tried to act as peacemaker between the Patriarchate and the
Vatican?
FAGAN: Both are important symbolically. If the Russian
Orthodox Church Abroad joined with the Moscow Patriarchate, it would
suggest that modern Russia has gotten over its Soviet past. If the
Russian Orthodox Church Abroad — which has preserved a deep devotion
to the murdered royal family — openly trusts Putin and acknowledges
his leadership, this enhances his historical legitimacy as ruler. If
a papal visit to Russia ever became possible, it would demonstrate
Russia’s openness to the West, and so increase the West’s
confidence in Russia as a “normal” country, which is also desirable
from the Kremlin’s point of view.
UZZELL: I agree with Mikhail Pozdnyaev, who wrote for “Novye
izvestiya” on 16 December 2003 that “for both the Moscow Patriarchate
and the Russian Orthodox Church Abroad, and also for the president of
the Russian Federation, the main argument in favor of reunification
is that if our motherland is a super state, it should have a super
church. Just as in the 1970s, the foreign parishes of the Moscow
Patriarchate served as centers of foreign intelligence, so tomorrow
the Russian Orthodox Church Abroad could become an outpost of Russian
geopolitics. Its churches could become something of a fifth column.”
I’m not convinced that Putin is really trying to be a
“peacemaker” with the Vatican. He just wants to look like one. Putin
wants good relations with Western governments for the sake of a broad
range of political and economic goals, and the Vatican is too
important to be ignored. It helps if he can present a civilized face
to the Vatican and to the West in general while leaving faceless
bureaucrats to do the dirty work of denying visas, etc.

TIMELINE: PRESIDENT PUTIN AND THE RUSSIAN ORTHODOX CHURCH

11 June 2004: Putin presents Patriarch Aleksii with the
order For Services to the Fatherland, 1st class
23 November 2003: Putin and Aleksii meet with the religious
leaders of Georgia, Armenia, and Azerbaijan at the Novo-Ogarevo
presidential residence
5 November 2003: Putin meets with Pope John Paul II at the
Vatican
15 October 2003: Putin meets with Aleksii at the presidential
residence in Novo-Ogarevo.
25 September 2003: Putin meets with leader of Russian
Orthodox Church Abroad Metropolitan Lavre in New York
31 July 2003: Putin attends ceremony marking the 100th
anniversary of the canonization of St. Serafim in Sarov, Nizhnii
Novogorod Oblast
10 May 2003: Putin visits Aleksii at his residence at
Peredelkino
24 January 2003: Putin and Ukrainian President Leonid Kuchma
attend a Russian Orthodox Church Service in Kyiv
22 January 2003: Putin meets with Aleksii and Bulgarian
Orthodox church leader Patriarch Ignatios IV of Antioch and All the
East at the Kremlin
31 December 2002: Aleksii confers upon Putin the highest
church award for laymen — the Order of St. Prince Vladimir,
Equal-to-the-Apostles, for the president’s services to the
Fatherland and in connection with his 50th birthday
29 May 2002: Putin signs into law amendments to the Tax Code
exempting religious organizations from paying taxes on income
received while conducting worship
6 January 2002: Putin makes a short Christmas pilgrimage to
Orthodox holy places, including the Cathedral of the Transfiguration
of the Savior in Pereslavl-Zalesskii, the Cathedral of the Assumption
in Vladimir, and the Chernoostrovkii Convent in Malayaroslavets
8 May 2001: Putin meets in the Kremlin with Aleksii and
Archbishop Christodoulos of Athens and All Greece
11 April 2001: Putin decorates Metropolitan Kirill of
Smolensk and Kaliningrad, chairman of the Moscow Patriarchate’s
Department for External Church Relations, with the Order of Merit
24 November 2000: Putin and Aleksii meet in the Kremlin with
the religious leaders of Armenia and Azerbaijan
7 May 2000: Aleksii blesses Putin at the Cathedral of the
Annunciation in the Kremlin immediately after the presidential
inauguration
(Sources: , “National Catholic Reporter,”
“RFE/RL Newsline”)

ART TRIAL IN RUSSIA SEEN AS TEST OF FREE EXPRESSION. The Russian
Constitution states that Russia is a secular country, with no
state-sponsored religion. But many observers point to the
increasingly prominent role played by the Russian Orthodox Church in
public life as evidence that some would like to see this changed.
Now, a trial in Moscow is focusing the spotlight on the issue
of freedom of expression, Russian ethnicity and the role of the state
in religion and cultural matters. The case pits the
Prosecutor-General’s Office against three human rights activists
charged with inciting religious and ethnic hatred for organizing a
modern art exhibition titled “Caution, Religion.”
The exhibition, which was hosted by Moscow’s Andrei
Sakharov Museum and Social Center, featured 42 artworks by 42 artists
— some of them controversial, but all intended to provoke discussion
about the role of religion in modern society, according to the
curators. One work featured Jesus’s face drawn on a Coca-Cola
logo next to the words “This Is My Blood.”
Just four days after the exhibition opened last year, six
vandals destroyed several of the pieces, smearing graffiti on the
museum’s walls that accused museum workers of being “Orthodox
haters.” The museum sued the men, but lost the case when a Moscow
court ruled that their actions were justified because their religious
sensibilities had been offended.
Now, prosecutors have turned the tables by charging Sakharov
Center Director Yurii Samodurov, exhibition organizer Lyudmila
Vasilovskaya, and artist Anna Mikhalchuk under Article 282 of the
Russian Criminal Code. The article outlaws actions that “incite
ethnic, racial, or religious hatred.”
The prosecutor, speaking at the trial’s opening on 15
June, said the exhibition “insulted and humiliated the national
dignity of a great number of believers.” The three could face up to
five years’ imprisonment if convicted.
Democracy groups have expressed outrage over the prosecutor.
The Sakharov Center posted an open letter on the Internet that
recalls the center’s advocacy work for human rights, including
work on cases involving issues of religious freedom.
Samodurov told the court 15 June that the exhibition’s
message has been twisted and misunderstood by its detractors: “The
name of the exhibition, ‘Caution: Religion,’ has two
meanings. It is a call for people to take care of religion, to
respect it and respect believers, and also a warning sign when we are
dealing with religious fundamentalism, whether it be Islamic
fundamentalism or Orthodox fundamentalism. None of the materials
presented contained any other message, so I do not understand why we
are accused of the motives mentioned by the prosecutor.”
Others, such as activist Lev Ponomarev, head of the NGO For
Human Rights, say the trial has only served to confirm the
exhibition’s warning about the dangers of fundamentalism and of
politicizing religion. He noted that prosecutors brought the charges
against the Sakharov Center staffers after receiving thousands of
petitions collected by ultraconservative members of the Orthodox
Church. Their aim, he said, is to turn Russia into an explicitly
Orthodox country, an ambition that contradicts the constitution. That
the state is helping them further this ideology is something he finds
deeply disturbing. “This would be laughable if it weren’t so
sad,” he said. “Radical elements in the church want our state to
become Orthodox, even though our constitution forbids this.”
Defense lawyer Yurii Shmidt says he hopes the judge in the
case will be guided by Russia’s constitution and uphold the
freedom of expression it guarantees, as well as the secular nature of
the Russian state. He cautions against linking Orthodoxy with Russian
ethnicity, as the prosecution has done in the charges it has brought.
“This case concerns fundamental human rights,” Shmidt told RFE/RL. “I
have no doubt that it will turn into a huge mark of shame for Russia
if a guilty verdict is rendered.”
That is not the view of the Russian Orthodox Church
hierarchy. Father Mikhail Dudko of the church’s department for
external relations told RFE/RL that the church is not responsible for
the case, and he rejects accusations by those who see the trial as an
attempt by the Orthodox clergy to score political points. “The trial
of the museum workers has not come at our initiative,” Dudko said.
“It is the initiative of the prosecutor’s office and this cannot
be interpreted as a trial of the church versus the Sakharov Museum.
It is a trial of the state versus the Sakharov Museum.”
Nevertheless, Dudko makes no secret that the church hierarchy
does not object to the trial, having been deeply offended by the
exhibition. A guilty verdict, he implies, might not be a bad thing.
“Of course, [the exhibition] offended us and it offended us deeply,”
Dudko said. “Of course, we believe that something similar must not
occur again. But I repeat that a state that tries to promote harmony
in religious affairs, that tries to ensure that all citizens —
regardless of faith — feel comfortable, must of course take steps to
ensure this happens. In our view, the trial reflects the legal right
of the state to conduct its religious policy and it could well serve
as a lesson to those people who are fostering tensions in the
religious affairs of our country.” (Jeremy Bransten)

PARTIES

RUSSIA’S DEFEATED LIBERALS MULL MERGING WITH PARTY OF POWER. When
members of the Union of Rightist Forces (SPS) gather on 26 June for a
party congress just outside Moscow, one likely subject for discussion
is a possible merger with the right wing of the pro-Kremlin Unified
Russia party. Boris Nadezhdin, secretary of the party’s
presidium, raised the issue on 19 June at a meeting of the
party’s Moscow Oblast branch. According to Nadezhdin, Kremlin
political strategists would perhaps support the creation of an
electoral bloc composed of SPS and Unified Russia’s “right wing,”
“Gazeta” reported on 21 June.
Nadezhdin’s statement sparked considerable skepticism
within the SPS. Leonid Gozman, head of the party Creative Council,
told “Nezavisimaya gazeta” on 21 June that such a union is hardly
possible since Unified Russia’s right wing is more virtual than
real. The same day, Gozman told Ekho Moskvy that any union between
“such a monster and our party, which failed to show good results at
the elections,” would in reality be more like a “takeover” than a
marriage of equals. “I am absolutely sure that we will never do
that,” he said. Former party co-leader Boris Nemtsov told Interfax
that Unified Russia has neither a right nor a left wing and can
maintain its popularity only so long as the president’s rating
remains high.
Writing on politcom.ru on 21 June, analyst Georgii Kovalev
reported that Nadezhdin also used the 19 June meeting to launch his
own claim to leadership of the party. Nadezhdin stated at the meeting
that “[former SPS co-leader Anatolii] Chubais is not ready to head
the party and there is no other leader of his stature,” according to
politcom.ru. He added that Nemtsov and former Prime Minister Mikhail
Kasyanov are likely candidates, but if new candidates are desirable,
then he is “ready to participate in the process” himself.
Kovalev predicted that while the leadership issue will
probably not be raised at the congress, the idea of joining the
Unified Russia’s “right flank” will certainly be discussed.
According to Kovalev, Chubais is seen as the party’s informal
leader, and the majority of SPS members do not view Nadezhdin’s
ambitions positively. However, a “soft incorporation of the right
into the structure of the pro-presidential party will definitely be
on the agenda,” in part because SPS represents business interests
that “under current conditions would not find it profitable to be in
conflict with the authorities.”
So far, the response from Unified Russia to Nadezhdin’s
idea has been guardedly positive. In an interview with “Nezavisimaya
gazeta,” Deputy Duma Speaker and Unified Russia Supreme Council
member Vyacheslav Volodin called the idea “sensible.” “It is no
surprise that a section of the center-right in SPS can see a great
deal in common with itself and Unified Russia’s party platform,”
Volodin said. Last month, other members of Unified Russia’s Duma
faction — including Andrei Isaev, Gennadii Gudkov, and Oleg Morozov
— raised the issue of splitting the party into right- and left-wing
factions.
The topic of breaking up the party of power has also been the
subject of a number of articles in the Russian press. “Itogi,” No.
23, reported — citing unidentified Kremlin sources — that the
presidential administration plans to split the party up. According to
the weekly, the idea of creating a right-wing group in the Duma by
drawing some members from United Russia was seriously discussed
immediately after the December elections to compensate for the
absence of the defeated Yabloko and SPS. But party leaders reportedly
decided instead to enjoy their new dominance in the Duma and not
create different factions from their 300-plus members.
However, by the 2007 elections, “Itogi” suggested, “the
semi-disintegration of Unified Russia is dictated by several
reasons.” The main one, according to the weekly, is that by the next
elections, there might simply be no one to compete with the “ruling
party” — which “does not suit the president’s multiparty-system
agenda.” Another reason is that “many deputies elected from
single-mandate districts who have joined United Russia faction do not
feel very comfortable there because they have no real opportunities
to lobby their local interests.”
In an article on politcom.ru on 26 May, analyst Tatyana
Stanovaya suggested that Unified Russia might not be big enough to
house all of the egos and diverging ambitions of its members. She
noted that “in such a large faction that brings together extremely
diverse people, many of whom were previously independent political
figures, the problem of distributing power in such a way that these
political figures acquire fitting status and do not feel
‘downgraded’ is a timely one.” According to Stanovaya, it “is
not even a question of a struggle for power within the faction but of
seeking some kind of unique project for [former members] to head and,
in the context of which, to obtain at least a modicum of autonomy.”
Despite the obvious appeal of forming separate parties from
the point of view of individual Duma deputies, some political
analysts are skeptical that the presidential administration has any
interest in seeing the Unified Russia party or faction split into
smaller units. Sergei Markelov, director of the Mark Communications
political-consulting group, told “Izvestiya” on 27 May that the
presidential administration will not support attempts to break up
Unified Russia.
Dmitrii Orlov, head of the Political and Economic
Communications Agency, agreed. “I’m sure these statements are not
authorized by the leaders of the party,” Orlov told “Izvestiya.”
“Measures aimed at separating platforms were logical up to the
mid-1990s. Now, when power is being consolidated, this is not
necessary. Such attempts can only lead to internal fractures within
Unified Russia.” Along these same lines, “Gazeta” opined on 21 June
that while it is well known that the Kremlin is interested in having
an intellectually sound right-wing group in the Duma, it is less
clear whether it would be “happy to break up the already amorphous
Unified Russia.” “Such a merger would be beneficial for the
right-wing leaders, who would get a chance to occupy some Duma
posts,” the daily noted, “but the prospects for the party [itself]
would be [dim].” (Julie A. Corwin)

COMINGS & GOINGS

SHIFTED: Prime Minister Mikhail Fradkov signed on 16 June an order
dismissing Ivan Kamenskii and Anatolii Kotelnikov as deputy atomic
energy ministers and naming them deputy directors of the Federal
Atomic Energy Agency, RosBalt reported on 18 June and “Kommersant-
Daily” on 19 June. Fradkov also dismissed Igor Slyunyaev as first
deputy transportation minister. There are now only two deputy
transportation ministers — Sergei Aristov and Aleksandr Misharin.

POLITICAL CALENDAR

23-25 June: Six-country talks on North Korea’s
nuclear program will be held in Beijing
24 June: The cabinet will examine issue of redistributing
property rights over educational, health-care, and cultural
facilities among the federal, regional, and municipal levels of
government
24 June: Moscow Arbitration Court will hold hearing on the
compulsory liquidation of Sodbiznesbank
24 June: Norilsk Nickel will hold a shareholders meeting in
Moscow
24-25 June: Parliamentary assembly of the Russia-Belarus
Union will hold a session in Brest
25 June: Gazprom will hold a shareholders meeting
26 June: Union of Rightist Forces will hold party congress
27 June: International Atomic Energy Agency Director-General
Muhammad el-Baradei will visit Russia
29 June: Founding meeting of the Association of
Russian-Armenian Economic Cooperation will be held in Moscow
30 June: The Qatari court hearing the case of two Russians
accused of carrying out the assassination of former acting Chechen
President Zelimkhan Yandarbiev is expected to announce its verdict
30 June-2 July: Financial Action Task Force will meet in
Paris
Early July: British Foreign Secretary Jack Straw will visit
Russia
July: Russia and the United States will hold bilateral
negotiations on Russia’s possible entry into the World Trade
Organization
July: Audit Chamber will complete its checks on major oil
companies
1 July: First anniversary of the creation of Federal
Antinarcotics Agency
1-2 July: The fourth annual Volga forum on “Strategies for
Regional Development” will be held in Kirov
2 July: State Duma will consider introducing monetary
compensation for in-kind social benefits in its first reading
2 July: The Audit Chamber will hold a session examining the
results of privatization over the last 10 years
2-4 July: Foreign Minister Sergei Lavrov will visit Seoul
3 July: Communist Party congress will be held to elect new
leadership
3 July: Yabloko will hold its 12th party congress
3 July: The Motherland party headed by Dmitrii Rogozin will
hold a party congress in Moscow
4 July: Vladivostok will hold mayoral election
6 July: Armenian Foreign Minister Vartan Oskanian will visit
Moscow
6-10 July: International weapons exhibition in Nizhnii Tagil
10 July: State Duma will end its spring session
12 July: Hearing of the case against former Yukos CEO Mikhail
Khodorkovskii and Menatep Chairman Platon Lebedev to resume
21 July: Dutch Foreign Minister Bernard Bot will visit Russia
31 July: State Duma will hold a special session
1 August: Deadline for the Finance Ministry to present its
draft 2005 budget to the government
3 August: State Duma will hold a special session
26 August: Deadline for the government to submit its draft
2005 budget to the State Duma
29 August: Presidential elections will be held in Chechnya
September: St. Petersburg’s Hermitage Museum plans to
open the Hermitage Center, which will exhibit works from the
Hermitage’s collection, in the city of Kazan
15-18 September: The third International Conference of Mayors
of World Cities will be held in Moscow
20 September: The State Duma’s fall session will begin
October: President Putin will visit China
October: International forum of the Organization of the
Islamic Conference will be held in Moscow
25 October: First anniversary of Yukos head Mikhail
Khodorkovskii’s arrest at an airport in Novosibirsk
31 October: Presidential election in Ukraine
November: Gubernatorial election in Pskov Oblast
22 November: President Putin to visit Brazil
December: A draft law on toll roads will be submitted to the
Russian government, according to the Federal Highways Agency’s
Construction Department on 6 April
December: Gubernatorial elections in Bryansk, Kamchatka,
Ulyanovsk, and Ivanovo oblasts
29 December: State Duma’s fall session will come to a
close
March 2005: Gubernatorial election in Saratov Oblast

*********************************************************
Copyright (c) 2004. RFE/RL, Inc. All rights reserved.

The “RFE/RL Russian Political Weekly” is prepared by Julie A. Corwin
on the basis of a variety of sources. It is distributed every
Wednesday.

Direct comments to Julie A. Corwin at [email protected].
For information on reprints, see:

Back issues are online at

http://www.vremya.ru
http://www.rferl.org/about/content/request.asp
http://www.rferl.org/reports/rpw/
www.mospat.ru

BAKU: Appeal of Milli Majlis to int’l parliamentary organizations

Azer News, Azerbaijan State Info Agency
June 23 2004

APPEAL OF MILLI MAJLIS OF THE AZERBAIJAN REPUBLIC TO THE
INTERNATIONAL PARLIAMENTARY ORGANIZATIONS AND PARLIAMENTS OF WORLD
COUNTRIES
[June 23, 2004, 12:11:16]

In connection with plans of carrying out in August of this year in
the mountainous Karabakh area occupied by the Armed Forces of Armenia
of the Karabakh region of the Azerbaijan Republic of “elections” to
municipalities of the so-called `Nagorny Karabakh Republic ‘, the
Milli Majlis of the Azerbaijan Republic considers necessary to state
the following.

Carrying out of “elections” to this or other authorities of the
puppet regime created with the help of foreign interventionists in
the mountainous part of Karabakh, being an integral component of the
Azerbaijan Republic, and not recognized by any world state,
contradicts the standard principles and norms of international law,
the Constitution, laws of the Azerbaijan Republic, does not possess
any validity and cannot have any legal consequences. This political
provocative act roughly breaking usual civil rights of 50 thousand of
Azerbaijanis, ousted from mountainous parts of Karabakh, testifies to
intention of the Armenian separatists to prevent the efforts directed
on peace settlement of the Nagorny Karabakh problem and establishment
of stability in region.

Plans of carrying out of the mentioned so-called “elections” are one
more unsuccessful attempt to fix occupation of 20 percent of the
Azerbaijani lands, that is Nagorny Karabakh and adjoining to it 7
districts, as a result of aggression of the Republic of Armenia and
ousting from these arrears about 1 million Azerbaijanis.

As is known, in December 1999, in territory of the Azerbaijan
Republic in democratic conditions municipal elections have been
carried out, for the first time in history of our independent state
institutions of local government have been generated. At that time,
the Armenian separatists in mountainous parts of Karabakh have not
taken part in the elections. In December of this year, in our country
new municipal elections will be carried out. The Armenian separatists
and this time are playing their game in “elections”, showing
unwillingness to return to legal space of Azerbaijan. In the whole,
lawful authorities, including elected representation bodies, in the
mountainous parts of Karabakh can be created only after elimination
of consequences of aggression of the Republic Armenia against
Azerbaijan, restoration of the sovereignty of the Azerbaijan Republic
on all of its territory, returning of the Azerbaijan refugees and
IDPs to the homelands.

Milli Majlis of the Azerbaijan Republic, expressing sovereign will of
the Azerbaijani people, once again states that the Azerbaijan
Republic will never be agreed with the predatory capture and
annexation of a part of its territory and, using all available
opportunities, will achieve restoration of the territorial integrity.
The world community should know that the political tricks connected
to carrying out in the mountainous part of the Karabakh region of
Azerbaijan of illegal “elections” to institutions of local
government, renders negative influence on the course of peace talks
carried out with a view of peace settlement of the
Armenia-Azerbaijan, Nagorny Karabakh conflict.

Milli Majlis of the Azerbaijan Republic, demanding realization of the
United Nations Security Council adopted in 1993 of the Resolutions
number 822, 853, 874 both 884 on urgent and unconditional liberation
of the occupied territories of Azerbaijan, calls to settle the
Nagorny Karabakh problem on the basis of decisions and final
documents of Budapest, Lisbon and the Istanbul summits of OSCE.

Milli Majlis of the Azerbaijan Republic, once again confirming
adherence of the Azerbaijan Republic to peace settlement of the
Armenia-Azerbaijan, Nagorny Karabakh conflict, calls on the Armenian
side to hold a constructive position in peace process, to refuse the
acts preventing negotiations, conducted in the framework of the OSCE
Minsk Group.

The international community should not remain indifferent to
infringement of the sovereignty and territorial integrity of the
Azerbaijan Republic. Milli Majlis of the Azerbaijan Republic calls on
the United Nations Organization, Inter-parliamentary Union,
Parliamentary Assembly of OSCE, Parliamentary Assembly of the Council
of Europe, Parliamentary Assembly of BSEC, Parliamentary Assembly of
the Commonwealth of Independent States, Islamic Conference
Organization, the European Parliament and North Atlantic
Parliamentary Assembly, other international organizations,
parliaments and the governments of the countries of the world to
express the resolute position in connection with plans of carrying
out by a puppet regime of illegal “elections” in mountainous part of
the Karabakh region of Azerbaijan and to support the fair cause of
Azerbaijan.

(The Appeal was adopted at session of Milli Majlis of the Azerbaijan
Republic, June 22, 2004)

Tennis: Pescosolido replaces Nalbandian in Wimbledon draw (correctio

Correction: 1ST LEAD: Pescosolido replaces Nalbandian in Wimbledon draw

Deutsche Presse-Agentur
June 19, 2004, Saturday

Horna becomes 33rd seed after Nalbandian’s withdrawal = London (dpa)
– Revised men’s draw for the 17.95-million-dollar Wimbledon
Championshiops starting Monday after withdrawal of fourth seed David
Nalbandian. Men Roger Federer, 1, Switzerland v Alex Bogdanovic,
Britain Julian Knowle, Austria v Alejandro Falla, Colombia Alberto
Martin, Spain v Fabrice Santoro, France Thomas Johansson, Sweden v
Nicolas Kiefer, Germany Feliciano Lopez, Spain v Richard Bloomfield,
Britain Cyril Saulnier, France v Michael Llodra, France Gilles
Elseneer, Belgium v Arvind Parmar, Britain Ivo Karlovic, Croatia v
Paradorn Srichaphan, 13, Thailand Carlos Moya, 9, Spain v Olivier
Patience, France Alex Corretja, Spain v Radek Stepanek, Czech
Republic Sargis Sargsian, Armenia v Marc Lopez, Spain Dmitry
Tursunov, Russia v Marat Safin, Russia Mikhail Youzhny, Russia v
Goran Ivanisevic, Croatia Jaime Delgado, Britain v Filippo Volandri,
Italy Irakli Labadze, Georgia v Kristof Vliegen, Belgium Jurgen
Melzer, Austria v Lleyton Hewitt, 7, Australia Guillermo Coria, 3,
Argentina v Wesley Moodie, South Africa Florian Mayer, Germany v
Wayne Arthurs, Australia Karol Kucera, Slovakia v Oscar Hernandez,
Spain Wayne Ferreira, South Africa v Ivan Ljubicic, Croatia Jonas
Bjorkman, Sweden v Raemon Sluiter, Netherlands Jan Vacek, Czech
Republic v Lu Yen-Hsun, Taipei Arnaud Clement, France v Joachim
Johansson, Sweden Ivan Pastor, Spain v Mardy Fish, 14, U.S. Sebastien
Grosjean, 10, France v Thierry Ascione, France Olivier Rochus,
Belgium v Gregory Carraz, France Daniele Bracciale, Italy v Jan
Hernych, Czech Republic Jan-Michael Gambill, U.S. v Max Mirnyi,
Belarus Robby Ginepri, U.S. v Janko Tipsarevic, Serbia-Montenegro
Fernando Verdasco, Spain v Glenn Weiner, U.S. Stefan Koubek, Austria
v Jose Acasuso, Argentina Julien Boutter, France v Juan Carlos
Ferrero, 6, Spain Tim Henman, 5, Britain v Ruben Ramierez Hidalgo,
Spain Flavio Saretta, Brazil v Ivo Hueberger, Switzerland David
Ferrer, Spain v Victor Hanescu, Romania Andre Sa, Brazil v Hicham
Arazi, Morocco Fernando Gonzalez, Chile v Martin Vassallo Arguello,
Italy Igor Andreev, Russia v John van Lottum, Netherlands Martin
Verkerk, Netherlands v Nikolay Davydenko, Russia Christophe Rochus,
Belgium v Mark Philippoussis, 11, Australia Jiri Novak, 16, Czech
Republic v Xavier Malisse, Belgium Antony Dupuis, France v Tommy
Haas, Germany Karol Beck, Slovakia v Jonathan Marray, Britain Potito
Starace, Italy v Tommy Robredo, Spain Dominik Hrbaty, Slovakia v
David Sanchez, Spain Mark Hilton, Britain v Albert Costa, Spain
Julien Benneteau, France v Tomas Berdych, Czech Republic Mario Ancic,
Croatia v Stefano Pescosolido, Italy Rainer Schuettler, 8, Germany v
Robin Soderling, Sweden Greg Rusedski, Britain v Davide Sanguinetti,
Italy Felix Mantilla, Spain v Kristian Pless, Denmark Todd Reid,
Australia v Vincent Spadea, U.S. Juan Chela, Argentina v Lars
Burgsmueller, Germany Thomas Enqvist, Sweden v Galo Blanco, Spain
Todd Martin, U.S. v Guillermo Canas, Argentina Lee Childs, Britain v
Sjeng Schalken, 12, Netherlands Nicolas Massu, 15, Chile v Alexander
Popp, Germany Bohdan Ulihrach, Czech Republic v Albert Montanes,
Spain Kenneth Carlsen, Denmark v Richard Gasquet, France Andy Ram,
Israel v Andrei Pavel, Romania Taylor Dent, U.S. v Ramon Delgado,
Paraguay Luis Horna, Peru v Dennis van Scheppingen, Netherlands
Alexander Peya, Austria v Jeff Salzenstein, U.S. Yeu-Tzuoo Wang,
Tailei v Andy Roddick, 2, U.S. dpa bs gb

EDITOR-NOTE:
Corrects that Ancic now plays Pescosolido instead of Nalbandian.

Kansas and Armenia Partnership

Kansas and Armenia Partnership

WIBW, KS
June 18 2004

AP

State officials today are celebrating a partnership between Kansas
and the government of Armenia.

Since 2003, Kansas has been partnered with Armenia through a national
program that links states with developing nations. Though the history
of Armenia goes back thousands of years, the country has been free
for only 14 years since the collapse of the Soviet Union.

Earlier this year, members of the Kansas National Guard, including
Adjutant General Tod Bunting, traveled to Armenia to visit with
their counterparts.

In April, Governor Sebelius signed a proclamation designating today
as Kansas-Armenian Partnership Day. A ceremony was scheduled for this
morning at the State Defense Building in Topeka.

A delegation from Armenia is expected to come to Kansas in the
coming months.

ARKA News Agency – 06/17/2004

ARKA News Agency
June 17 2004

RA President receives the delegation of Armenian Assembly of Deputy
Friendship

RA President receives head of All-Russian State TV and Radio Company

Delegation of NKR Parliament to participate in sessions of Friendship
Armenian Parliamentary Assembly on June 18-19

*********************************************************************

RA PRESIDENT RECEIVES THE DELEGATION OF ARMENIAN ASSEMBLY OF DEPUTY
FRIENDSHIP

YEREVAN, June 17. /ARKA/. The RA President Robert Kocharian received
the representatives of the Armenian Assembly of Deputy Friendship,
according to the RA Resident’s Press Service Department. “We have
accumulated a considerable experience of work in countries, where
Armenian Diaspora exists, we have many friends and we are interested
in developing these relations in different directions”, said the
President, welcoming the participants of the Assembly. Kocharian
noted that such kind of initiative is unprecedented to be carried out
at parliamentary level and expressed his hope that this practice will
bear a regular character. In their turn, the Assembly representatives
highly appreciated this initiative and said that it is viewed in the
context of Armenia-Diaspora relations. According to their estimates,
despite the outcomes, the fact of the Assembly itself is very
important in terms of initiating political relations between Armenia
and the Diaspora. L.V. -0–

*********************************************************************

RA PRESIDENT RECEIVES HEAD OF ALL-RUSSIAN STATE TV AND RADIO COMPANY

YEREVAN, June 17. /ARKA/. RA President Robert Kocharian received the
Head of All-Russian State TV and Radio Company Oleg Dobrodeev, that
arrived to Armenia on occasion of translation of Culture TV Channel
in Armenia. As RA President Press Service told ARKA, Kocharian
mentioned that he applied by representatives of intelligentsia with
the request of broadcasting the channel, adding that the broadcasting
of eth channel is to give opportunity to communicate with high
spiritual values as well as the sides attached importance to this
event in respect of esthetic education.
The RA National Committee for TV and Radio Broadcasting assigned 23
decimeter frequency to the RA Ministry of Transport and Communication
for broadcasting of Culture Russian TV Channel. T.M. -0–

*********************************************************************

DELEGATION OF NKR PARLIAMENT TO PARTICIPATE IN SESSIONS OF FRIENDSHIP
ARMENIAN PARLIAMENTARY ASSEMBLY ON JUNE 18-19

STEPANAKERT, June 17. /ARKA/. The Delegation of Nagorno Karabakh
Republic Parliament headed by Speaker Oleg Yesayan is to participate
in the first session of Friendship Armenian Parliamentary Assembly
scheduled on June 18-19, 2004. As ARKA own correspondent in
Stepanakert reports, the Delegation also includes Vice-Speaker and
Chairman of Standing Commissions of NKR Parliament.
On the forthcoming session the Speaker of NKR Parliament to devote
his speech to working out of single approaches for solution of the
issues having national significance. T.M. -0–

*********************************************************************

ASBAREZ ONLINE [06-16-2004]

ASBAREZ ONLINE
TOP STORIES
06/16/2004
TO ACCESS PREVIOUS ASBAREZ ONLINE EDITIONS PLEASE VISIT OUR
WEBSITE AT <;HTTP://

1) MCA Proposal Sets Sights on Reconstruction of Rural Infrastructure
2) Armenia Remains on Tier 2 Human Trafficking Watch List
3) Georgia Demands Russian Pull out of Peacekeepers from South Ossetia
4) Armenia Takes on World, Losing by a Point
5) Armenian Opposition Halts Protest Campaign

1) MCA Proposal Sets Sights on Reconstruction of Rural Infrastructure

YEREVAN (RFE/RL)–Prime Minister Andranik Markarian said on Wednesday the
Armenian government will finalize by the end of next month its program
proposal
for funding under Washington’s Millennium Challenge Account (MCA) program.
Markarian spoke after chairing the first meeting of an ad hoc commission of
senior government officials tasked with assessing the country’s urgent needs,
discussing possible ways of meeting them with MCA funding, and submitting a
relevant plan to the US.
Under the terms of the MCA, Armenia and 15 other developing nations selected
by the US government last spring, must specify the amount of funding they
require for proposed programs. Top executives from the Millennium Challenge
Corporation (MCC), which runs the program, visited Yerevan late last month for
the first discussions on the subject with Armenian officials.
They made it clear that the aid allocation to Armenia is not a forgone
conclusion, but will depend on the quality of the proposals.
Speaking to journalists, Markarian said that the government would like to
primarily spend the MCA funds on the reconstruction of the battered
infrastructure of the country’s impoverished rural regions that have hardly
benefited from recent years’ economic growth–specifying the rebuilding of
schools, countryside roads, and irrigation networks. “All of these programs
must be in line with our [12-year] poverty reduction strategy,” he said.
Asked how much the Armenian side expects to get from the MCC, he said: “It is
too early to talk about sums. According to our preliminary estimates, however,
[the government will ask for] between $500 million and $600 million in the
next
five years.”
Finance and Economy Minister Vartan Khachatrian came up last week with an
even
more ambitious aid target: $700 million, of which $100 million should be made
available as early as this year. But he was more cautious and vague in his
comments on Wednesday. “Even [the MCC] doesn’t know what will happen,” he
said.

Khachatrian reiterated that request for proposals from Armenian
non-governmental organizations are being sought, but that only two have been
received.

2) Armenia Remains on Tier 2 Human Trafficking Watch List

YEREVAN (Armenpress)–Armenia was once again included in this year’s US State
Department report on human trafficking.
In the department’s fourth annual Trafficking of Persons Report, released
Monday, Armenia was among 42 nations listed on the Tier 2 Watch List.
Countries are classified into three categories, of which Tier 3 is the least
favorable. Armenia moved from Tier 3 to Tier 2 last year after it made a
number
of reforms. US officials have indicated that Armenia may be placed in the Tier
1 category if a sweeping crackdown is initiated.
The State Department report notes that Armenia serves as both a source and a
transit country for women and girls trafficked for sexual exploitation to the
United Arab Emirates, Turkey, Russia, Greece and other European countries. The
report also adds that the trafficking of persons to be used as labor has
become
an increasingly significant problem.
The government of Armenia does not currently comply with the minimum
standards
set for the elimination of trafficking.
It is, however, making a significant effort to do so. Cooperation between
police and NGOs have increased the number of investigations, and provided
police with a greater understanding of international and domestic sources of
trafficking. The report also touched upon the improved efforts of law
enforcement agents in assisting trafficking victims by referring them to
care-providing NGOs.
Prevention activities increased during the reporting period, and were
highlighted through the use of media. The National Police were featured in
several training films and TV shows on trafficking, and the Ministry of
Education approved anti-trafficking educational lectures for secondary and
university students. In January of 2004, the government approved an
anti-trafficking national action plan for 2004-2006. The government
contributed
the equivalent of $11,000 of its own funds to support the work of the National
Anti- Trafficking Commission, with foreign donors providing the remaining
funds. The government’s Department for Migration and Refugees conducted
extensive outreach on migration issues, which prevented a significant
number of
individuals from succumbing to trafficking, according to an independent
survey.

3) Georgia Demands Russian Pull out of Peacekeepers from South Ossetia

MOSCOW (Combined Sources)–Russia denied sending troops or military
hardware to
Georgia’s restive South Ossetia province, after Tbilisi sent a letter of
protest to Moscow on Sunday about a column of trucks and military vehicles
that
drove from Russia into the separatist Georgian region that seeks to be a part
of Russia.
Georgia’s State Minister for conflict resolution Goga Khaindrava, urged
Russia
on Tuesday, to withdraw its peacekeeping forces from the South Ossetian
conflict zone.
“We [Georgia] can freely control the situation in breakaway South Ossetia.
The
Russian peacekeepers were deployed in the conflict zone 12 years ago, but they
are no longer necessary, since they choose not to perform their functions,”
Goga Khaindrava said at a June 15 news briefing.
According to Georgian officials, the convoy of more than 15 trucks crossed
from Russia’s North Ossetia region on Friday into Georgia’s breakaway South
Ossetia. Some of the trucks were carrying troops, missile launchers, automatic
rifles, and other weapons. Russia’s Defense Ministry and South Ossetian
officials have denied any cross-border military movements, but the
president of
the breakaway region, Eduard Kokoity, said a “humanitarian column” had entered
South Ossetia, Russia’s Interfax news agency reported.
A Russian military official in North Ossetia said food, fuel, spare parts,
and
other supplies had been sent to Russian peacekeepers serving in the region.
Following Khaindrava’s allegations, the OSCE Mission in Georgia monitored the
situation in the South Ossetian conflict zone on June 12 and “found no
evidence” of any military vehicles in the Tskhinvali area.
Asked whether Tbilisi is considering the possibility of military force in
Abkhazia or South Ossetia, Georgia’s recently appointed defense Minister
Georgy
Baramidze said it would be the most undesirable option. “We will be doing
everything to avoid the military solution. There are many mechanisms
available–political, economic, and social. At the same time, we must be ready
for all kinds of “surprises,” he said.
As for the withdrawal of the Russian military bases from Batumi and
Akhalkalaki, Baramidze said though the issue is important, improved
Russian-Georgian bilateral relations are not tied to the issue.

4) Armenia Takes on World, Losing by a Point

A HEROIC COMEBACK BY THE PETROSIAN TEAM IN THE FINAL TWO ROUNDS FELL A POINT
SHORT. ANAND-KASPAROV WAS ONE OF SEVERAL SHORT DRAWS IN THE FINAL ROUND.
VAGANIAN HAD THE ONLY WIN OF THE ROUND, AN IMPRESSIVE BIND AGAINST ADAMS.
GELFAND, ONCE PETROSIAN’S STAR PUPIL, BATTLED HARD FOR THE FULL POINT AGAINST
BACROT TO NO AVAIL.

MOSCOW (Combined Sources)–In what commemorated the 75th anniversary of the
late Armenian world chess champion Tigran Petrosian, a dynamic
tournament–Armenia vs. the Rest of the World team, began on June 10 in Moscow
and ended on June 15, with the World Team defeating the Petrosian Team 18.5 to
17.5.
The tournament matched the best of Armenia against a team of international
stars. Each of the six team members played everyone on the other team for a
total of 36 games.
The best of Armenia’s powerful chess players made up the Armenian team–1999
World Championship runner-up Vladimir Akopian, feared Bundesliga warrior
Rafael
Vaganian, and experienced international Smbat Lputian. Tiny Armenia has the
second-highest number of players participating in the 2004 FIDE world
championship in Libya this month–seven. The rest of the Armenian team either
had connections to Armenia or Petrosian himself. Garry Kasparov’s mother is
Armenian and he has always been claimed by that chess-mad nation. Peter Leko
married an Armenian, named Petrosian (no relation). His wife Sofia is the
daughter of Armenian chess Grand Master Arshak Petrosian, who is also his
trainer and will be the coach of the Petrosian team in Moscow.
The World all-star team was composed of Anand, Svidler, Adams, Bacrot,
Vallejo, and van Wely.
It was a valiant effort, but the Petrosian team fell short by the thinnest
possible margin at the end. After looking overmatched in the first half, the
“friends of Armenia” squad didn’t lose a game in the final two rounds and
almost climbed back from a four-point deficit. It was a great match, and it
was
fitting that the Petrosian Memorial was a team event. Tigran Petrosian
consistently put up phenomenal scores in team events throughout his career. An
incredible six times he got the best score in the Olympiads playing for the
USSR over a 20-year span.

5) Armenian Opposition Halts Protest Campaign

YEREVAN (RFE/RL)–The Armenian opposition officially ended, with a rally late
Wednesday, its unsuccessful spring campaign for regime change.
“The first stage of the opposition movement is over,” a leader of the
Artarutyun alliance Albert Bazeyan, said during a concluding speech. He said
Artarutyun and its principal ally, the National Unity Party (AMK), need
time to
consider new methods of waging political struggle.
Other opposition leaders cited external factors such as the ongoing peace
talks on Mountainous Karabagh and the upcoming discussion of the situation in
Armenia at the Parliamentary Assembly of the Council of Europe to justify
their
decision.
Some opposition leaders admitted privately, however, that their two-month
drive for President Robert Kocharian’s resignation has lost momentum. They
said
further anti-government rallies are thus unlikely to be held in the summer
months. The AMK and Artarutyun bloc had earlier repeatedly postponed a promise
a repeat of similar “decisive” actions.

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AAA: Armenia This Week – 06/14/2004

ARMENIA THIS WEEK
June 14, 2004

ARMENIAN FOREIGN MINISTER VISITS U.S.
A delegation led by Foreign Minister Vartan Oskanian is in Washington this
week for two days of high-level meetings with U.S. Administration officials
and members of Congress. On Monday, Oskanian met with the President’s
National Security Advisor Condoleezza Rice, her deputy Stephen Hadley,
Secretary of State Colin Powell, Assistant Secretary of State Elizabeth
Jones and Assistant Secretary of Defense Mira Ricardel. The talks focused on
bilateral security cooperation and U.S. economic assistance, as well as the
ongoing Karabakh peace process and Armenia’s relations with Turkey. Meetings
with key members of the Senate and House of Representatives, including
leaders of the Congressional Caucus on Armenian Issues, are set for Tuesday.

Speaking at the Center for Strategic and International Studies, a leading
Washington-based think tank, Oskanian outlined Armenia’s priorities in three
interconnected areas: internal political stability and democratic
development, sustained economic growth and settlement of regional conflicts.
He noted that Armenia’s selection as one of only sixteen countries worldwide
eligible for additional U.S. aid in the framework of the Millennium
Challenge Account reflects approval of Armenia’s economic and political
reforms. But Oskanian stressed that Armenia’s leaders recognized that more
progress is needed in these two areas.

Last week, the Armenian National Assembly gave preliminary approval to
sending a peacekeeping unit to Iraq. The Parliament voted to ratify
Armenia’s Status of Forces agreement with Kuwait, paving the way for a
deployment of a 30-truck transportation company, military engineers and
medics, via that country to support U.S.-led stabilization operations in
Iraq. Chief of the Armenian Armed Forces’ General Staff General Mikael
Harutiunian said two weeks ago that Armenia’s commitment to contribute to
the U.S.-led effort was unaffected by continued violence in Iraq. According
to U.S. and Armenian officials, the deployment is expected by September.

Also this Wednesday, the Senate will hold hearings on the nomination of John
Evans as the next U.S. Ambassador to Armenia. Evans, a decorated veteran of
the foreign service with experience in Eastern Europe and Iran, is expected
to replace Ambassador John Ordway, who is completing his mission in Armenia
later this summer to become Ambassador to Kazakhstan. (Sources: Armenia This
Week 4-30; AAA Press Release 5-7; Federal News Service 6-7; RFE/RL Armenia
Report 6-8; R&I Report 6-14)

POSSIBLE PROGRESS ON KARABAKH SEEN DESPITE CONTINUED AZERI HOSTILITY
The Foreign Ministers of Armenia and Azerbaijan are discussing a new
approach to resolving the Karabakh conflict, both officials have confirmed.
Following high-level discussions in April and May, Vartan Oskanian and Elmar
Mamediarov are set to resume negotiations in the Czech Republic this
weekend. In an interview last Friday, Mamediarov said that talks are
focusing on developing a new plan that would include elements of the 1997
“step-by-step” proposal and “package” options discussed since then. Speaking
in Washington this Monday, Oskanian confirmed such discussions were
underway.

The 1997 plan called for Armenian withdrawal from areas adjacent to NKR in
exchange for lifting of the Azeri blockades and limited security guarantees,
with the status of Karabakh left to be determined in future talks.
Incorporation of elements of the “package” approach may imply an early Azeri
commitment to the mechanism that would determine Karabakh’s status.

Meanwhile, an almost daily barrage of militant rhetoric by Azeri officials
and media continues unabated. Last week President Ilham Aliyev again made,
by now, customary threats of a new war. The Azeri government said it
launched “criminal investigations” against the Presidents of Armenia and NKR
for their roles in defeating Azerbaijan’s military in the early 1990s. Azeri
peace activists who did not heed Aliyev’s call for an end to all
non-government contacts with ethnic Armenians were again harassed by
government-linked radicals.

More ominously, Azeri military units resumed provocations along the Line of
Contact last week leading to at least one person killed on each side – the
worst instance of a cease-fire violation since last winter. Both then and
now escalations precede preparatory events for NATO’s Cooperative Best
Effort exercises due in Baku this September. Azeri officials now claim that
they would not hinder Armenian participation in the preparatory event set
for June 21. But after similar claims in January, three Armenian officials
were denied visas and barred from boarding a Baku-bound plane.

Lack of good faith and Azerbaijan’s refusals to implement any
confidence-building measures are likely to undermine any progress in talks.
Recently, NKR President Arkady Ghoukasian urged international organizations
to focus on ending what has become known as the information “war” waged by
Azerbaijan before turning to settlement plans. (Sources: Armenia This Week
1-16, 5-21; Azad Azerbaycan 6-2; Noyan Tapan 6-5; Turan 6-10, 12; RFE/RL
6-11, 14; ANS 6-14; R&I Report 6-14)

Visit the Armenia This Week archive dating back to 1997 at

A WEEKLY NEWSLETTER PUBLISHED BY THE ARMENIAN ASSEMBLY OF AMERICA
122 C Street, N.W., Suite 350, Washington, D.C. 20001 (202) 393-3434 FAX
(202) 638-4904
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Armenian Assembly of America
Research and Information Office

ISSUE BRIEF: ARMENIA AND NATO SUMMIT IN TURKEY
June 14, 2004

BACKGROUND: President Robert Kocharian is not attending the June 28-29 NATO
Summit in Istanbul, Turkey. Instead, Foreign Minister Vartan Oskanian is
leading the Armenian delegation. This decision was prompted by continued
aggressive Turkish policies towards Armenia, and does not reflect any
Armenian concerns with NATO.

In the absence of any appreciable progress in relations between Armenia and
Turkey after years of talks, Armenia’s President decided not to attend the
NATO Summit in Turkey in order to call international attention to Turkey’s
continued hostility against Armenia.

– ARMENIA-NATO RELATIONS: In February 2004 Armenia deployed a peacekeeping
platoon to Kosovo, as part of the Greek contingent of the US-led
multinational brigade in KFOR. In Iraq, Armenia is set to deploy a
transportation company, as well as de-mining engineers and medical units. In
June 2003, Armenia hosted the NATO PfP Military Exercise “Co-operative Best
Effort 2003,” with participation of 19 states, including Turkey. Last March,
Armenia ratified the Partnership for Peace Status of Forces Agreement
(SOFA). At the same time, Armenia’s Minister of Defense announced that
Armenia would submit an official application to participate in NATO’s
Individual Partnership Action Plan, the most advanced type of engagement
short of actual membership. Armenia appointed a Military Representative to
NATO on May 1 and an Ambassador, whose sole portfolio will be NATO, will
assume office this summer. The annual meeting of the PfP Political-Military
Committee with Armenia took place at NATO HQ, in April 2004. The meeting,
which was held with all partners, covered Armenia’s participation in the
Planning and Review Process, and approved Armenia’s Partnership Goals for
2004, outlining Armenia’s tasks for the next two-year cycle. Although
neither invited, nor self-invited to join NATO, Armenia will continue to
strengthen its partnership with NATO. Senior U.S. and NATO officials have
repeatedly praised Armenia for strides it has made in the development of
closer relations with the alliance.

– TURKEY’S ARMENIA POLICY: Since Armenia regained its independence in 1991,
Turkey has steadfastly refused to establish diplomatic relations. For over
a decade Turkey has also maintained a land blockade against Armenia, defying
international treaties and U.S. law, as well as ignoring calls by the United
States and European Union to open its border. Turkey links normalization to
Armenian concessions on the Karabakh conflict. Turkey has also provided
military and diplomatic assistance uncritically championing Azerbaijan’s
views on the Karabakh conflict. By introducing the blockade against its
neighbor when it did, Turkey aimed to harm Armenia and assist Azerbaijan in
its war against Karabakh Armenians.

– INTERNATIONAL REACTION TO THE TURKISH BLOCKADE: Turkey’s blockade against
Armenia is not sanctioned by any international entity. In fact, both the
United States and the European Union (EU) have repeatedly called for its
lifting. President George W. Bush said that he looks forward to “Turkey
restoring economic, political, and cultural links with Armenia.” The
European Parliament has called for making normalization of Armenian-Turkish
relations a pre-condition for Turkey’s accession to the EU. Turkey is in
violation of the 1921 Treaty of Moscow and the Treaty of Kars, which
established the current Armenian-Turkish border. According to these
treaties, Turkey is bound to “uninterrupted communication between the two
countries” and “secure the free movement of persons and goods.”

– ARMENIA’S TURKEY POLICY: Despite Turkey’s confrontational policies and
actions, Armenia’s response has been consistent since independence – normal
relations with Turkey without preconditions. Armenia appreciates that its
most direct links to the west are via Turkey, that Turkey’s most direct
access to the southern rim of the former Soviet Union is via Armenia as well
and that an open border will dramatically enhance the economic development
of eastern Turkey and Armenia. Despite Turks’ claims to the contrary,
President Kocharian has stated that Armenia has no territorial claims
against Turkey.

– ARMENIAN-TURKISH TALKS: Direct Armenian-Turkish contacts resumed after
Armenia lifted its objections to holding the 1999 summit of the Organization
for Security and Cooperation in Europe (OSCE) in Istanbul and as several
Western governments pledged to seek moderation and engagement from Turkey in
its future relations with Armenia. Officials from the Ecevit government and
the new Turkish government elected in late 2002 and now led by Prime
Minister Tayyib Erdogan promised to re-think Turkish policies, strongly
hinting at a positive change. But more recently, they have again ruled the
lifting of preconditions as “out of the question.”

http://www.aaainc.org/ArTW/archive.php.
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Kirk’s new enterprise

Kirk’s new enterprise

Financial Times
Jun 15, 2004

Kirk Kerkorian has not lost his appetite for big rolls of the
dice. With one hand, the 87-year-old is inching towards a sale of
his Metro-Goldwyn Mayer film studio. With the other he is poised to
double up on his casino interests. MGM Mirage’s improved offer of
$71 a share – a 30 per cent premium to Mandalay Resort Group’s share
price before the approach – would catapult it to number one in the
US gaming industry.

There are regulatory concerns. MGM/ Mandalay would control 49 per
cent of hotel rooms, 44 per cent of tables and 40 per cent of slot
machines on the Las Vegas Strip. But if the market is interpreted more
broadly the combined share retreats to more reasonable levels. Any
issues are likely to be addressable through asset sales. The deal
is no knockout for Mandalay. It values the business at about 9.7
times earnings before interest, tax, depreciation and amortisation,
compared with MGM’s own rating of 8.5 times. But it would drag Mandalay
investors away from the table after a great winning streak. At $71,
its shares will have risen by 130 per cent since January last year,
compared with MGM’s 43 per cent.

MGM, meanwhile, can probably squeeze out $100m of cost savings. The
deal would broaden its portfolio with Mandalay’s lower-end resorts and
get access to more property development opportunities in the strong
Las Vegas market. MGM could probably stretch to finance the $7.9bn
transaction with debt. But with its track record on integrating deals
there is clearly a chance that it will tap shareholders for some of
the chips.