Author: Tashjian Arbi

KERKORIAN DRIVES BIG DEALS THAT DRAW BIG CRITICISM
By John Gallagher

Detroit Free Press, MI
July 1 2006

Some say his only vision is of more profits for himself

Is he a visionary or a villain?

Kirk Kerkorian’s latest bold move, his attempt to arrange a shotgun
wedding between the Renault-Nissan alliance and General Motors,
has all the earmarks of his controversial career.

Like Captain Kirk of the Starship Enterprise, Kerkorian boldly
goes where no one has gone before. But he also goes where no one
particularly wants him to go.

Peter Morici, a professor of business at the University of Maryland,
says Kerkorian’s unorthodox moves are a distraction that takes
management away from the problems at hand.

"He’s not a Warren Buffett," Morici said Friday, referring to the
so-called Oracle of Omaha who built a legendary career on patiently
searching for and nurturing good companies. "He’s not a problem
solver. He sees opportunities for value, but he doesn’t leave the
companies better off for his adventures."

It may be that, unlike Buffett, Kerkorian lacks the patience for
anything but the quick score. If so, he developed the taste for it
early in his career.

The son of Armenian immigrants who ran a produce business in Fresno,
Calif., Kerkorian quit school as a teenager to work. He spent a year in
the Depression-era Civilian Conservation Corps, served as a military
pilot during World War II, and after the war ran a small air-charter
service to ferry gamblers between Los Angeles and Las Vegas.

Kerkorian paid $60,000 for the charter service in 1947, when he was
30. In 1968, he sold it to Trans-america Corp. for a little more than
$100 million.

"Kirk realized then that everything was in the timing," a banker
friend, Walter Sharp, said in 1995. "He became fascinated with the
idea of making deals."

And deals there were. For a man so intensely private, he showed a
remarkable taste for splashy investments, mostly in Las Vegas.

With the proceeds of his airline sale, he acquired the Flamingo
Hotel in 1969, the first of several casino-hotels he would buy,
sell or build in the decades since.

Although nowhere near as reclusive as Howard Hughes, Kerkorian runs
a low-key operation. Angered by a reporter’s questions years ago,
Kerkorian very rarely gives interviews. Shy and unpretentious, he has
been known to stand in line even for movies his own studio produced.

His Las Vegas-based company, Tracinda Corp., is named for two
daughters, Tracy and Linda. His personal life has had a tabloid
flavor: Kerkorian has been married at least three times, including
a 1999 union with tennis pro Lisa Bonder that lasted one month.

It was a meeting with former Chrysler boss Lee Iacocca that sparked
Kerkorian’s interest in Detroit. Meeting the automotive executive at
a Florida racetrack, Kerkorian agreed in 1990 to invest in Chrysler.

Five years later, he mounted a takeover bid when the company didn’t
perform as he’d hoped. That bid ended when Kerkorian couldn’t stitch
together a workable deal.

Later, he supported the deal that saw Daimler-Benz AG merge with
Chrysler in 1998. But pleasure turned to anger when Kerkorian came to
believe the merger was really an ill-disguised takeover that devalued
his shares.

He sued DaimlerChrysler in a bitter and protracted battle that
ultimately he lost.

MESSAGE TO EU: OPENING TURKISH PORTS TO GREEKS CYPRUS WILL BRING THE GOVERNMENT DOWN

Zaman Online, Turkey
July 2 2006

The European Union (EU) Council Enlargement Collaboration Group
discussed Turkey’s membership process during a visit to the Turkish
Parliament (TBMM).

Greek representatives in the delegation brought up the issue of opening
Turkish ports to Greeks and the extension of Greece’s territorial
waters in the Aegean Sea, which they regard as "act of war."

Gathering with the EU Accordance Commission members on Friday, one
of the Greek representatives revealed they expected Turkey to open
it ports to Greeks and Southern Cyprus demands the establishing air
service between Larnaka and Istanbul.

Chairman of the Turkish Parliament EU Accordance Commission Yasar Yakis
firmly responded, saying that Turkey will never open its ports to Greek
vessels as long as commercial isolation of Turkish Cyprus continues.

Onur Ovmen, member of the main opposition CHP, said, "No government
can open Turkish ports for Greeks; if it did, it would dissolve in
an hour."

Ovmen reproaching the Greeks remarked it is injustice for Turkey
to continuously bring to the agenda the Cyprus, Aegean and Armenian
issues in an effort to hinder Turkey’s membership.

He also underlined no government in Turkey will recognize the
unilateral Greek governments in Cyprus.

Surprised by Ovmen’s statement, the Greeks then brought the "act of
war" issue into the agenda.

Yakis first responded to the Greeks, declaring that Greece extended
the limit of its territorial waters 12 miles including Turkey’s ports
violating international law, and reminded, "If we were to accept it,
our harbors in Aegean Sea would have to be included within Greek
territorial waters."

EVERYONE MUST UNDERSTAND THEIR ROLE AT PRESENT AND RESPONSIBILITY FOR FUTURE

Lragir.am
1 July 06

Recent there has been a lot of consideration that the NKR president is
likely to run a third term. It is interesting and distressing that
these are based on rumors about the wish of a definite person. `Ask
anyone in the street.

The majority would like to be president.’ I understand the comparison
is not successful. Nevertheless, there is something in common in
terms of wishes.It should be noted that besides the wish, which is
common for both cases, there is also the reality, which is supposed to
regulate such wishes. The point is what the reality is. Let us not go
deeper into it now, helping the political scientists, who work for
definite people and receive a salary (or money inan envelope). Let us
dwell on the reasons, which seem to be forceful arguments against the
idea of a third term, independent of the wishes of the candidate.

1. Since 1988 all our steps and decisions have seriously and carefully
complied with the rules and logic of a democratic society. Their
implementation sometimes acquired a certain shade, like the actions of
the government during one election or another. But these shades have
never really trespassed the usual frame of democracy. A violation of
the law on the president would first of all cause suspicions whether
our intention to build a democratic society is genuine, which has been
commended by the entire civilized world so far, placing us superior to
Azerbaijan in this context. They cannot cheat us like in the election
of governors in Russia several years ago, when some laws were annulled
on adoption of others. The effort to name an unimportant figure, who
would resign in a couple of months, enabling the former president to
be named again is also impractical. I would like to repeat that we
must display our commitment to real democracy rather than the skills
of pro-governmental lawyers to the world.

2. We must keep in mind that in 1994 our parliament, which later
elected the first president, disagreed about the introduction of this
type of governance. The participants of this event know how this law
was adopted.

Now we are told that time showed that this type of governance is not
effective. We are told by people who used to uphold it, or `enjoy’ it,
if we may say so. And they decline to explain the mistake, whether it
was corrected or not, who is to blame and for what, and so on. It
makes think about the Soviet years, when hazy formulations `persuaded
people’ about thenecessity to adopt it. I very much hope that those
times are over. But as they say, time will show.

Now let us return to the change of the system of governance, offered
in the draft constitution (by the way, it merely a draft, and the
confidence of some people that it will be adopted does not allow the
author to say that this type of governance is already an adopted
decision). And it (the draft) is said to provide for a
semi-presidential governance. It is clear without going into detail
that the powers of the president will be restricted. And immediately
the `worm of suspicion’ stirs: isn’t this intendedto pass the real
power to a definite person, who will be occupying another post? If our
`worm’ is mistaken, we are happy, and if not, again the skills of
lawyers are noticed (certainly, not so original). In other words, the
government may try to name a president, who does not have real
political power, and the country will be ruled from another post,
which would be empowered by the new Constitution.By the way, a similar
situation may occur in Armenia as well. So, we have to repeat that
this approach is not related to the tenets of democracy we dream of
establishing in our homeland.

I think we will have time to discuss these serious problems again and
again. It would be much better if the intellectual political
potential of Karabakh worked for the welfare of the society rather
than the definite interests of certain people. Everyone who is able to
perceive the essence of what happened, and especially those who have
influence on it, must keep in their mind what sacrifices it took to
achieve what we have now. Everyone must realize their role at present
and their responsibility for the future. And let God help us.

SERGEY KALANTARYAN

ITAR-TASS, Russia
June 30 2006

Karabakh settlement should meet Azerbaijan’s interests – Aliyev

UDZHARY, Azerbaijan, June 29 (Itar-Tass) – Azerbaijani President
Ilkham Aliyev said the country’s leadership would not agree on any
peaceful deal in the Karabakh settlement that did not meet
Azerbaijan’s national interests.

Addressing the public on Thursday, Aliyev said, `Our position is open
and clear: Azerbaijan’s territorial integrity cannot be a subject for
discussions.’

He stressed that the international community recognized
Nagorno-Karabakh as an inalienable part of Azerbaijan. `This is an
excellent legal base for the peaceful solution to the problem.
Azerbaijan will not step back,’ he said.

Commenting on the 10-year-long talks, Aliyev said no results yielded.
He stressed, `Azerbaijan seeks to settle the conflict by peaceful
means, but it never agrees to lose its territories.’

JUSTICE FACTION CONCERNED ABOUT LATEST STATEMENT OF OSCE MINSK GROUP CHAIRMEN

Noyan Tapan
Jun 29 2006

YEREVAN, JUNE 29, NOYAN TAPAN. The latest statement of the Co-Chairmen
of the OSCE Minsk Group is extremely worrying. Grigor Harutyunian,
member of the NA Justice faction, member of the People’s Party of
Armenia, stated this at the June 29 meeting with reporters.

According to him, it is directly stated in the document about the
return of 5 liberated regions, a special approach regarding Kelbajar
and Lachin, and holding a referendum or a general voting on Karabakh
status without indication of a particular date. The deputy considered
it especially unacceptable that the document envisages the opportunity
to hold a referendum in the territory of Azerbaijan.

According to Harutyunian, the statement that the co-chairmen exhausted
their proposals makes one assume that either the format of negotiations
will change, or a military solution of the problem is possible.

According to the speaker, the moment of publishing the statement of
the Minsk Group co-chairmen was not chosen by accident and was directly
related to a meeting of G8 scheduled for July in Saint Petersburg.

G. Harutyunian said that the published document does not envisage
compromises, and in fact Armenia is obliged to make unilateral
concessions. The deputy reminded that in 1998 when Robert Kocharian was
the NKR President, the NKR authorities viewed the problem’s solution in
the context of establishing an independent state having a connection
to Armenia in the territory of 8 thousand sq.m. In today’s proposals
of the Minsk Group, which are mainly agreed on with the leaders of
the two countries, the matter does not concern any more 8 thousand
square meters.

Harutyunian said that today Armenia needs legitimate authorities more
than ever in order to cope with outside and domestic pressures. At
the same time, he noted that the people has lost its resistibility
and readiness to struggle as a result of the wrong policy of the
authorities. This explains the people’s indifference to the published
Karabakh settlement version.

As regards the response of political forces, in the words of
Harutyunian, the Justice faction presents its assessments: "But
if you think that we are going to hold demonstrations and protests
outside the embasies of the co-chair states, I should remind that it
is clearly said in the statement that this is a version mostly agreed
on with the presidents of the two countries."

Harutyunian noted that a change of power according to the 1998 scenario
is not ruled out in Armenia in connection with further developments
in the Karabakh conflict settlement process, because the resignation
of the Armenian or Azerbaijani president may provide a basis for a
new stage in negotiations.

OPPOSITION IS ACTIVELY WORKING

Panorama.am
14:04 29/06/06

"We lead everyday active work with the representatives of our
regional units," Armenian People’s Party Political Board member,
NA deputy Grigor Harutunyan told a news conference today promising
to strengthen the efforts in fall.

Naturally, they will put much effort since the parliamentary
elections are coming. At this moment, Grigor Harutunyan cannot say
whether they will go to elections on their own or unified with some
other party. Though he thinks that APP can go to election without any
other union, he said "they had a problem of consolidation that time,"
referring to the establishment of Justice block in 2003.

RECURRENT SITTING OF THE CIS ECONOMIC COUNCIL TO BE HELD IN MOSCOW

ArmRadio.am
30.06.2006 11:55

June 30 the recurrent sitting of the CIS Economic Council will be
held in Moscow. The agenda of the sitting includes 15 questions. The
Council will discuss different draft projects, particularly the draft
agreement on establishment of favorable legal and economic conditions
for expansion of leasing activity, the draft convention on boundary
cooperation between CIS member states, and others, Press Service of
the CIS Executive Committee informs.

GEORGIA AND ARMENIA DISCUSS POSSIBLE FULL-FLEDGED OPERATION OF TRANSPORT ROUTES IN REGIONS

Daily Georgian Times, Georgia
June 28 2006

The Georgian and Armenian foreign minister discussed the outlooks
for full-fledged operation of transport routes of the region at the
meeting in Tbilisi on Wednesday.

Vardan Oskanian, Armenian Foreign Minister said that a set of economic
issues have certain political implication and need to be addressed
in particular way.

According to him, start of operation of the Karsi-Gyumr-Tbilisi railway
route will contribute to increasing of bilateral cargo turnover and
enable all South Caucasian countries to use regional transit capacity
at its best.

Gela Bezhuashvili, Georgian Foreign Minister said that the Georgian
party is fully aware of its role of regional junction and will continue
work for elaboration of more advantageous transit routes.

"Georgia is interesting in diversification of transport routes that
will facilitate development of all countries in the region in the
future", he added.

CONSUMER ASSOCIATIONS AGAIN FAIL TO SOLVE CONCRETE ISSUES IN WATER MANAGEMENT

Panorama.am
15:14 27/06/06

Public organizations protecting consumer rights have been expressing
their discontent with the recent rise of water fee saying it is
illegal. They continue messaging their dissatisfaction up to today
but it is too late to change anything since the public regulatory
committee has already approved the fee without any estimates based
on only contract obligations. The decision of the committee may be
appealed only 6 months after the decision is made.

Today also Consumer Association has called a discussion inviting
organizations in the field of water management – public services
regulatory committee, General Dez O, water committee and public
organizations. According to association chairman Armen Poghosyan,
the main topics of the discussion are water supply schedules and water
safety. He mentioned that about 20% of population does not receive the
minimal 4 hour supply of water and that victims of low quality water
who suffered in 2003 have not been compensated until today. "We are
not so interested who is to be blamed but how protected consumers are
from similar situations," the head of association said. They have sent
an open letter to the prime minister on the issues mentioned above.

However Poghosyan was gladly accepting the "rosy" statements made by
water supply organizations saying that water system is undergoing
unprecedented reforms based on contract obligations. They said all
the issues raised have been involved in the contract and will be
viewed as priorities in the coming ten years.

Once against the Consumer Association failed to take up concrete
steps in improving the situation.

Moreover, the representatives of power structure managed to win this
"advocacy" war.

Who knows, may be that was the aim of this discussion?

UAE FIRMS IN BID FOR OTE STAKE IN ARMENIAN TELECOM FIRM

Asia Pulse
June 26, 2006 Monday 4:17 PM EST

ABU DHABI June 26

A group including firms from the United Arab Emirates (UAE)’s has been
shortlised by the Greek telecom provider OTE for the sale of its 90
per cent stake in Armenian telecom firm Armentel, according to reports.

The group includes UAE firms Emirates Telecommunications Corporation
(Etisalat), Istithmar and Emergent Telecom Ventures (ETV).

The group is among four shortlisted bidders, said the Sharjah-based
Gulf Today.

Russia’s Mobile TeleSystems (MTS) and Vimpelcom, VTEL Holdings and
Knightsbridge Associates are the other bidders, it said.