Bush visit to Georgia increases tensions with Putin government

Bush visit to Georgia increases tensions with Putin government
By Simon Whelan

World Socialist Web Site, MI
May 18 2005

Speaking in Tbilisi on May 10, President George W. Bush quipped that
he was in the neighbourhood and “thought we’d swing by.” However,
his visit to the capital of Georgia was anything but casual. Amidst
the self-satisfied bonhomie, Bush and Georgian President Mikhail
Saakashvili discussed issues with potentially explosive ramifications
for the struggle between Russia and America for dominance over the
Caucasus and all the territories that once made up the Soviet Union.

Saakashvili publicly protested that Bush’s visit was not about “an
oil pipeline or any kind of military cooperation.” But that is what
was undoubtedly discussed, along with the question of reducing Russian
influence in Abkhazia and South Ossetia and the continuing deployment
of Georgian troops in Iraq and Afghanistan.

The Baku-Tbilisi-Ceyhan oil pipeline is set to open on May 25. The
$3.6 billion conduit will take five months just to fill with oil. It
runs close to the disputed border between Georgia and South Ossetia
and is vulnerable to attack. Saakashvili will also have been keen
to discuss the Millennium Challenge money that Washington is paying
Georgia to beef up its military.

The meeting came after Bush’s attendance at the Victory in Europe
commemorations in Moscow, which Saakashvili refused to attend.
Discussions have recently broken down between Moscow and Tbilisi
concerning the withdrawal of Russian troops from two bases on
Georgian soil.

Through considerable financial and military assistance, Georgia has
practically become a client state by which Washington pursues its
economic, political and military ambitions in Eurasia.

State and private media extolled the public to come out and welcome
the US president. Tbilisi was festooned with posters of Bush for weeks
prior to his arrival, so that his arrival together with a 700-strong
entourage took on the appearance of a visit to a colonial possession.

Saakashvili told Bush: “We welcome you as a freedom fighter.” Just 500
miles south of Tbilisi is the Iraqi capital of Baghdad, where Bush
would not receive quite the same reception but where 800 Georgian
troops are currently stationed. A further 200 Georgian troops are
currently serving in Afghanistan. The Georgian president named Bush
as the first recipient of the Order of Saint George, named after the
country’s patron saint, for his supposed “promotion of freedom in
the world.”

Saakashvili came to power in October 2003 in a US-backed ousting of
Eduard Shevardnadze. Georgia occupies a crucial strategic position
in the south Caucasus between the Black Sea and the Caspian Sea. It
was the first example of a now well-rehearsed strategy of replacing
governments amenable to Moscow with aggressively anti-Russian and
Western-orientated governments. Saakashvili is pushing hard for Georgia
to join both the European Union and NATO and misses no opportunity
to rile Moscow.

Bush’s speech to the Georgian people was the usual hokum about peace
and freedom. He called Georgia a “beacon of liberty” and congratulated
Saakashvili on his “Rose Revolution.” But his speech was littered
with barely veiled threats towards Russia. “We are living in historic
times when freedom is advancing, from the Black Sea to the Caspian,
and to the Persian Gulf and beyond,” declared Bush.

Speaking to reporters, Bush denied that his government would militarily
assist Tbilisi in its conflict with breakaway regions Abkhazia and
South Ossetia. In April the American ambassador to Georgia, Richard
Miles, together with Caspian energy trouble-shooter Steven Mann,
visited the Abkhazian capital of Sukhumi in a fruitless attempt to
reach a compromise with Tbilisi.

Bush did say that he would be happy to make a few phone calls to
Sukhumi and the South Ossetian capital of Tskhinvali on behalf of
Georgia. After Saakashvili took power it was reported that Bush spoke
by telephone to threaten Aslan Abashidze shortly before he fled to
Moscow and Georgian troops took back control of the autonomous and
pro-Russian republic of Ajaria.

During his visit Bush indicated that resolving the issue of the
breakaway republics was essential for Georgia’s entry into NATO. He
directly warned the Kremlin to drop their support for the breakaway
republics, insisting, “The territorial integrity and sovereignty of
Georgia must be respected by all nations.”

Bush devoted just 45 minutes to speak to representatives from the
two breakaway republics and representatives from Georgia’s ethnic
minorities. The sizeable ethnic Armenian minority in Georgia are
particularly concerned about the withdrawal of Russian troops from
Georgia because they see them as protection against the threat from
neighbouring Turkey.

Tbilisi was treated to a sustained period of maintenance prior to the
Bush visit. The run-down Georgian capital has witnessed a frantic last
few weeks while hundreds of workers sought to patch up its decrepit
infrastructure. The historic centre received its first coat of paint
since then Russian President Leonid Brezhnev visited in the early
1980s, and the potholed roads were resurfaced.

Preparations for the visit spawned numerous puns, with locals
joking that Bush should come more often and the state would have
no alternative but to rebuild the entire country. But no amount of
whitewash and tarmac can hide Georgian society’s deeper malaise.
Despite Bush’s hailing of Saakashvili as a democrat, the Georgian
leader is a political bully, an avowed free marketeer and entirely
ruthless in his political aims.

On April 12, Human Rights Watch issued a report, “Georgia-Uncertain
Torture Reform,” which asserted that Saakashvili’s administration
had failed to fulfil its pledge to improve the nation’s atrocious
civil rights record. HRW have catalogued the regular use of torture
by police and security forces, as well as condemning a plea-bargaining
system that allows wealthy defendants to pay the state to avoid trial.

On the very same day that HRW released their findings, the European
Court of Human Rights ruled that Georgia together with Russia
had violated the rights of 13 Chechens. Two of the Chechens were
effectively disappeared and landed up back in Russia as prisoners.

Since the ousting of Shevardnadze, “Absolutely nothing has changed
at all,” says Ucha Nanuashvili, the executive director of the Human
Rights Information and Documentation Centre.

The Council of Europe has previously warned that too much political
power has become centralised around Saakashvili and that the country
risks drifting into one-party rule or even a one-man dictatorship.
Since the mysterious death of then Prime Minister Zhurab Zhavia last
February, Saakashvili has sidelined the third member of the Rose
Revolution triumvirate, Nino Burjanadze. She was not even initially
invited to the first anniversary celebrations of the deposing of
Aslan Abashidze from Ajaria until the last minute.

Approval ratings for Saakashvili amongst the Georgian people have
slipped 25 percent since his elevation to power. He retains approval
ratings of just 38 percent. Street protests over continuing
shortages of essential services like electricity and water,
arbitrary anti-corruption measures and a general dissatisfaction
with Saakashvili’s arrogance have recently prompted talk that the
American trained lawyer might go the same way as his one time mentor,
Shevardnadze.

Writing for Transistions On-line, Jaba Devdarani warned, “This is the
very same wave of social discontent that propelled the Rose Revolution
and brought down Shevardnadze…. The government should worry lest
the unrest turn into an explosion.”

Some media commentators warned against any cheap triumphalism in
Washington or Tbilisi surrounding Bush’s visit. A New York Times
editorial lamented the antagonising of Russia by Bush’s provocative
visits to Latvia and Georgia sandwiching the one to Moscow and
urged efforts to win the support of Moscow to rein in Iran’s nuclear
ambitions.

The Times of London was equally unimpressed with Bush’s clumsy
approach. Their editorial sought to remind Washington of Georgia’s
fragility as a functioning nation state. “Georgia is almost wholly
dependent on Russia for energy supplies…. Its economy would collapse
if more than a million Georgians now living in Russia did not send
back remittances,” it stated.

The Times reminded its readers that the populations of both Abkhazia
and South Ossetia have repeatedly expressed a clear preference for
alliance with Moscow, not Tbilisi.

Inside Washington cautionary voices have been raised against the Bush
administration putting all its eggs into one basket with its support
for Saakashvili. Charles King, an expert on US-Georgian relations
at Georgetown University, cautioned the Republican administration
that continually blaming the Russians for Georgia’s woes was
counterproductive.

Speaking to the Guardian newspaper, he lamented, “In time even
Georgia’s friends may come to wonder whether a country with fictitious
borders and no plan for making them real is a country worth helping.”

Baku accuses Armenia and Russia of destabilization in South Caucasus

BAKU ACCUSES ARMENIA AND RUSSIA OF DESTABILIZATION IN SOUTH CAUCASUS

Pan Armenian News
20.05.2005 07:54

/PanARMENIAN.Net/ “Armenia is the source of destabilization in the
South Caucasus”, Azerbaijani Deputy Foreign Minister Araz Azimov stated
at Security and Stability in the South Caucasus NATO international
conference that opened Friday in Baku. “While Azerbaijan is making a
great contribution to the development of the region exporting energy
sources and Georgia is providing transit possibilities, Armenia is
engaged in exporting instability”, Azimov stated. The Deputy Minister
noted that with its aggressive policy towards the neighbor states
Armenia has isolated itself from the global regional processes and
the attitude of the Euroatlantic organizations towards Armenia should
differ from the policy towards Azerbaijan and Georgia. He also noted
that Russia’s policy in the South Caucasus “does not always have a
positive influence upon the regional situation”. “I think that the
consolidation of the NATO-Russia relations can lead to geopolitical
changes in the region”, the diplomat said. To note, experts from the
US, Romania, Georgia, Russia and other states are taking part in the
NATO conference.

RA Foreign Minister Mentions Extension Of Armenian-Italian Cooperati

RA FOREIGN MINISTER MENTIONS EXTENSION OF ARMENIAN-ITALIAN COOPERATION IN ALL DIRECTIONS

YEREVAN, MAY 18, NOYAN TAPAN. Mr. Enrico La Loggia, Italian Minister
of Territorial Issues, is in Armenia on a 2-day official visit. On
May 18, Vartan Oskanian, RA Foreign Minister, received him. According
to RA Foreign Ministry’s Press and Information Department, Minister
Oskanian mentioned extension of Armenian-Italian cooperation in
all directions. Attaching importance to the positive tendencies of
development, especially after RA President’s official visit to Italy in
early 2005, the interlocutors emphasized extension of mutual interest
in separate spheres. In this respect, the parties, in particular,
mentioned the prospective directions of SMEs, tourism and sport,
preservation of cultural values, activization of cooperation at
regional level and other directions. Then the sides touched upon
issues relating to cooperation within the framework of international
structures. The Ministers, in particular, exchanged thoughts about
UN reforms.

“Karabakh – part of Azerbaijan”

“KARABAKH – PART OF AZERBAIJAN”

A1Plus

| 17:35:21 | 17-05-2005 | Politics | COE SUMMIT |

“The Council of Europe supports the territorial integrity of the CoE
member-states”, Secretary General Terry Davis stated during a press
conference today bringing the following example, “Karabakh is a part
of Azerbaijan”.

When responding A1+ reporter’s question whether the problem can be
settled taking into account Armenia’s disagreement with such state of
things, the Secretary General said, “This problem should be settled
by the Presidents of Armenia and Azerbaijan. But at the same time
Azerbaijan has entered the CoE as a country with Nagorno Karabakh
as a part of it. I have publicly encouraged President Aliyev to talk
directly to the people of NK. And I was very pleased yesterday to hear
the Armenian Foreign Minister encourage the President of Azerbaijan
to talk directly to the Karabakh people. I think it is a very positive
statement by the Armenian FM.”

Garegin II received Georgian Prosecutor General

GAREGIN II RECEIVED GEORGIAN PROSECUTOR GENERAL

A1plus
| 19:47:01 | 17-05-2005 | Official |

Today Catholicos of All Armenians Garegin II received Georgia~Rs
Prosecutor General Zurab Adeishvili accompanied by RA Prosecutor
General Aghvan Hovsepyan.

During the meeting the parties discussed the issues referring to
the status of the Armenian Apostolic Church in Georgia. His Holiness
expressed hope that the problems available will be settled with the
help of the Georgian authorities.

Situation dictates neutrality

Situation dictates neutrality

Hayots Ashkarh, Yerevan
14 May 05

by Vardan Grigoryan

Tensions in Russian-Georgian relations observed for the past several
years have reached breaking point, when inevitable developments can
happen as a result of the withdrawal of Russian military bases from
Georgia.

Today, the main “discovery” of [US President] George Bush’s visit to
Tbilisi, i.e. the fact that having got rid of Russian troops Georgia
is unlikely to become a neutral and demilitarized country, has been
added to the reality of the talks which are about to be deadlocked.

George Bush’s statement that he will support Georgia in its effort to
join NATO has actually ruined the basis for seeking a mutual
compromise in the withdrawal of Russian military bases from Georgia.
Russia’s earlier reservations concerning the terms of the pull-out
were more of a propaganda nature.

The real problem is that two military and political blocs cannot exist
in the South Caucasus. In other words, if Russians quickly withdraw
their bases from Batumi and Akhalkalaki, a part of their troops and
ammunition will be moved to Armenia, and if Georgia joins NATO, the
Russian military bases deployed in Armenia will not only lose a
foothold but also the opportunity to transport military cargo via
Georgia.

Therefore, if Georgia does not agree to stay militarily and
politically neutral after the Russians’ departure, it means that the
Russian base deployed in Armenia will soon find itself in a blockade
and face the risk of losing its strategic importance to Russia. A
question arises: why has the Georgian side become so unbending of
late?

We think the main “mission” of the “rose revolution” lurks just here –
it is [Georgian President Mikheil] Saakashvili’s desire to spread this
experience to the neighbouring countries. In other words, the USA
targets not only Georgia but also the whole region. Washington is
trying to solve this problem by means of the Georgian leadership’s
uncompromising position.

And for that to happen, it is necessary to speed up the process of
Georgia’s joining the military and political structures of the West,
which will be tantamount to neutralizing Russia’s military presence
almost in the whole region. After that, neither Armenia nor Russia
will be left with any choice. There is a situation in which Russia
itself is facing the dilemma: either to withdraw its bases not only
from Georgia but also from the whole region or to keep them.

It is obvious that at present Russia is not capable of solving such a
complex and multi-faceted problem. The opposite side does not have the
opportunity of choice either. Tbilisi threatens that if no arrangements
are made on the terms of withdrawal from Batumi and Akhalkalaki before
15 May, it will stop issuing visas to Russian servicemen. It is
obvious that no arrangements will be made before 15 May and an
unpredictable situation will take shape.

It is also clear that all this may affect certain parts of Georgia and
the Georgian-Abkhaz and Georgian-Ossetian conflicts. In this sense, we
are concerned about the situation in Javakhk [Georgia’s Armenian-
populated Javakheti region], as the local population will find itself
caught in the crossfire. For this reason, it is not ruled out that the
already noticeable tension may grow even more. Does the Armenian
leadership have an alternative view on the withdrawal of Russian
military bases from Akhalkalaki apart from the known position that
Yerevan considers it to be Georgia’s internal affair?

[Passage omitted: repetition]

Kocharyan to meet Aliev

A1plus

| 16:03:32 | 13-05-2005 | Official |

KOCHARYAN TO MEET ALIEV

On May 15 Robert Kocharyan will leave for Warsaw to take part in the COE
third Summit. In Warsaw he will meet heads of several countries.

Within the framework of the summit by the initiative of the Minsk group
co-heads a meeting is envisaged between Kocharyan and Aliev. The delegation
headed by the President will return to Yerevan on May 17.

Armenia set to open border with Turkey by end of 2005

Armenia set to open border with Turkey by end of 2005

Arminfo
12 May 05

YEREVAN

Armenia will use diplomatic channels to open its borders with Turkey
by the end of 2005, Armenian Prime Minister Andranik Markaryan said at
a press conference today.

He said that the opening of the border would not result in a Turkish
expansion on the Armenian market. A similar concern was expressed when
direct trade was launched with Iran. The prime minister believes that
Armenian goods are quite competitive in comparison with Iranian and
Turkish goods.

He added that at present Armenia is trading with Turkey indirectly
through Georgia and Azerbaijan. Meanwhile, Markaryan abstained from
the assessment of trade between the countries. He said that Armenian
goods also entered the Turkish market via third countries.

TOL: The Damn Dram

Transitions on Line, Czech Republic
May 12 2005

The Damn Dram

by Emil Danielyan
12 May 2005

Armenian government under fire over continuing currency appreciation.
>From EurasiaNet.

What’s good for Armenia’s currency, the dram, means tougher times for
perhaps a majority of Armenians. The rapid rise of the dram’s value
against major global currencies, especially the US dollar and
European Union euro, has hit a large part of Armenia’s population
hard, and threatens to stifle the country’s exports.

The dram’s mysterious rise began 16 months ago and gained fresh
momentum in mid-April. One US dollar is now worth roughly 440 drams –
a 30 percent rise in the Armenian currency’s value since the start of
2004. The dram has appreciated against the euro at approximately the
same rate.

Authorities attribute the phenomenon to a drastic increase in the
amount of cash remittances that are regularly sent home by hundreds
of thousands of Armenians working abroad. The Central Bank of Armenia
estimates that about 40 percent of the country’s households receive
such aid.

Predictably, the dram’s rise has emerged as a contentious domestic
political issue. Politicians and economists critical of the
government dismiss the official explanation, alleging instead that
authorities themselves have engineered the exchange rate changes to
siphon off part of the hard currency and benefit government-connected
importers. Such allegations resurfaced after the dram strengthened
>From 450 to 420 drams to the dollar in a matter of days before
stabilizing at the current level.

Central Bank officials strongly deny any involvement in currency
manipulation. They insist that the dollar remittances coming through
banks and wire-transfer services, mostly from Russia and the United
States, jumped by 50 percent to $760 million in 2004. The actual
amount of foreign cash entering Armenia may have been twice the
officially declared figure, government officials believe.

Given the relatively small size of Armenia’s monetary base – with
only about 117 billion drams (roughly $268 million) in circulation –
the large volume of remittances from abroad would appear capable of
causing currency-market volatility. “There are just too many dollars
in circulation in Armenia,” Smbat Nasibian, chairman of Converse
Bank, a major commercial bank, argued on 27 April.

Authorities also cite the dollar’s overall weakness in international
currency markets as a factor in Armenia’s exchange-rate woes. “All
complaints should be addressed to the US government,” Armenian
President Robert Kocharian told university students in Yerevan during
an early April address.

Critics counter that the dollar has continued to depreciate against
the dram since January, despite a greenback rally against the euro
and other major currencies. They also question the credibility of
official data on remittances, which have long served to offset
Armenia’s huge trade and current account deficits. “Armenians living
in Russia or the United States could not have gotten 50 percent
wealthier within a year,” argued Eduard Aghajanov, the former head of
the National Statistical Service.

Whatever the reason, the dram’s appreciation has fueled anger among
Armenians reliant upon money sent by family members working abroad.
During the post-Soviet era, lagging economic conditions have prompted
up to 900,000 Armenians to go abroad in search of work, with Russia
being the primary destination for labor emigrants. In 2004, the
number of immigrants to Armenia outnumbered those leaving the country
for the first time since 1996, according to official statistics. Even
so, a significant number of Armenians remain dependent on
remittances.

Nearly half of some 1,000 people randomly polled in January by the
Armenian-European Policy and Legal Advice Center, a research agency
funded by the European Union, said they have lost from the dram’s
appreciation. Only 27.6 percent claimed to have been better off as a
result.

Armenian authorities downplay the extent of popular dependence on the
remittances. Vache Gabrielian, a member of the Central Bank board,
claimed on a TV talk show on 28 April that remittances make up only a
quarter of the aggregate individual income in Armenia. Gabrielian
also argued against strong Central Bank intervention in the currency
market, saying the bank’s main task is to ensure low inflation. The
Central Bank has generally succeeded in this area, he added.

However, consumer price inflation in Armenia is clearly on the rise.
Official figures put the inflation rate at 7 percent in 2004. The
prices of basic food products, which account for the biggest share of
household expenditures, were 11 percent up from the 2003 level. Food
prices soared by another 8 percent last January, casting doubt on the
authorities’ pledge to keep the annual inflation rate within a 3
percent limit in 2005.

Many Armenians would say that the rise in the cost of living has been
even higher than indicated by official statistics. Suspicion has been
stoked by the fact that virtually no imported goods have become
cheaper in the Armenian market since 2003. “I think the main reason
for that is a very small number of importers,” admitted Nasibian, the
Converse bank chief. “Each of them seems to have monopolized a
particular field, making disproportionate profits.”

This only gives weight to conspiracy theories about the dram’s
appreciation. They are further reinforced by a lack of transparency
in inter-bank currency trading which is supposed to set exchange
rates in Armenia.

According to the most popular of those theories, Kocharian’s
administration has artificially boosted the national currency to let
large-scale importers (virtually all of them having strong ties to
the incumbent administration) make additional profits. The retail
price of gasoline, for example, has barely gone up in Armenia over
the past year despite the worldwide surge in oil prices. Wholesale
gasoline traders have also cashed in on the fact that fuel import
duties are set in dollar equivalents. The Armenian government only
last month moved to fix them in drams.

Importers’ gains contrast sharply with losses incurred by Armenian
exporters. The latter are beginning to openly express concern about
the dram’s appreciation. A Yerevan-based factory that produces
electrical lamps has reportedly suspended its manufacturing
operations after discovering that its production is now too expensive
in Georgia and other ex-Soviet states that formed its main market.

Meanwhile, there are signs that authorities are starting to worry
about consequences of the strong dram. The Central Bank was reported
late last month to purchase $25 million in hard currency from local
banks in a bid to shore up the dollar. The intervention appears to
have stabilized the exchange rate. It remains to be seen for how long.

Armenia ready to continue Karabakh peace talks

Pan Armenian News

ARMENIA READY TO CONTINUE KARABAKH PEACE TALKS

12.05.2005 03:30

/PanARMENIAN.Net/ Armenian Parliament Speaker Artur Baghdasarian received
rapporteurs of the PACE Monitoring Committee Jerzy Jaskiernia and Georges
Colombier, reported the Press Service of the National Assembly of Armenia.
In the course of the meeting the parties discussed matters referring to
Armenia’s meeting its commitments to the PACE. Artur Baghdasarian informed
the interlocutors that the Armenian Parliament had adopted the bill on
constitutional reforms, which includes numerous proposals of the Venetian
Commission. At the same time he noted that everything possible is being done
for the bill to comply with the requirements within the period of the second
and third reading. He also added that before being submitted for the second
reading the bill will again be considered by EU experts in Yerevan. Within
the context of the terms of holding the referendum, the Speaker noted the
expedience of holding a referendum in the beginning of autumn this year. In
his words, it will allow familiarization with the bill being proposed for
referendum within July-August. The parties also noted the importance of
passing the Electoral Code of Armenia, which also takes into account all
proposals of the Venetian Commission. As noted by A. Baghdasarian, the
passing of the Law on the order of holding rallies, meetings, processions
and demonstrations is already on the agenda. In the course of the meeting
the parties also discussed issues of intensification of democratic reforms
in Armenia. When commenting on the Nagorno Karabakh conflict, A.
Baghdasarian noted that Armenia has a constructive posture over the issue,
accepts the need for mutual compromise and is ready to continue the peace
talks.