Author: Varosian Antranik

Armenian general says release of Azeri captive up to security agency

Arminfo
22 Aug 05

YEREVAN

The situation on the contact line between the Armenian and Azerbaijani
armed forces is currently quiet, the chief of the General Staff and
first deputy defence minister of Armenia, Col-Gen Mikael Arutyunyan,
has told our Arminfo correspondent.

He said there are no abrupt changes on the border. “There are
sometimes minor misunderstandings, but everything is mostly stable,”
Arutyunyan said.

Asked about a captive Azerbaijani warrant officer, Arutyunyan said
Ramil Xudaverdiyev [rendered by Azeri sources as Ramin Xudaverdiyev]
had lost his way and ended up in an area under Armenian control. Asked
when the captive would be handed over to the Azerbaijani side,
Arutyunyan noted that this depends on the Armenian National Security
Service. “He is of no value for us,” he noted.

Xudaverdiyev was taken captive on 3 August 2005.

Interfax, Russia
posted Aug 22 2005

Armenian GDP up 11.7% in Jan-July

YEREVAN. Aug 19 (Interfax) – GDP in Armenia in January-July 2005
increased 11.7% year-on-year to 915.2 billion dram, a source in the
National Statistics Service told Interfax.

Industrial production in the first seven months of this year
increased 6.3% to 361.9 billion dram, with agricultural production up
14.1% to 184.5 billion dram.

Production of electricity increased 4% to 3.83 billion dram.

Construction in January-July increased 26.8% year-on-year to 56.5
billion dram.

Foreign trade increased 29.5% to $1.456 billion.

Armenian GDP increased 10.1% in 2004, with industrial production up
2.1% and agricultural production – 14.5%.

The official exchange rate on August 19 was 464.37 dram to the
dollar. [AM ASIA EUROPE EEU EMRG MCE ECI RES] rd

Cevi-Sponsorenlauf fur Armenien

Neue Zurcher Zeitung
20. August 2005

rbi. Der Cevi Zurich organisiert am 4. September zum zweiten Mal den
“Run the Hope”-Sponsorenlauf zur Unterstutzung seines
Hausbau-Projekts in Armenien.

Das Projekt hilft beim Aufbau eines neuen Kinder- und Jugendzentrums
in der Erdbebenregion von 1988. Der Stunden-Wettkampf kann zu Fuss
oder mit dem Bike absolviert werden. Die Strecken fuhren am Waldrand
von Zurich Altstetten entlang. Die Teilnehmer konnen in den
Kategorien “Sportler” und “Plausch/Familie” starten.

Azeri leader says list of ruling party candidates prepared under his supervision

Azad Azarbaycan TV, Baku
19 Aug 05

Text of report by Azerbaijani private TV station ATV on 19 August

The [ruling] New Azerbaijan Party is constantly developing, which is
the reason for changes on the party list [of members running in the
November parliamentary election], the president has told journalists.

Ilham Aliyev said the party list had been prepared under his direct
supervision. Influential members who make efforts to promote the party
will preserve their positions. But refreshing changes are also needed,
he said.

Commenting on the [forthcoming] meeting of the Azerbaijani and
Armenian presidents in Kazan, the president said it is too early to
speak about an agreement, but there is always hope. The president
said that during the talks, he would stick to previous principles,
the main principle being the country’s territorial integrity.

AzerTag, Azerbaijan
Aug 17 2005

PEOPLE OF AZERBAIJAN CAN BELIEVE ON RELIABLE PROTECTION OF STATE
BORDERS
SPEECH OF THE PRESIDENT OF AZERBAIJAN, SUPREME COMMANDER-IN-CHIEF OF
THE ARMED FORCES ILHAM ALIYEV AT THE SOLEMN CEREMONY DEDICATED TO
PRESENTATION OF BATTLE FLAGS TO THE MILITARY UNITS OF THE STATE
FRONTIER SERVICE
[August 16, 2005, 19:01:01]

Dear frontier guards,

I warmly welcome all of you. I congratulate you on the forthcoming
professional holiday, the 86th anniversary of establishment of the
Frontier Troops.

In 1919, the People’s Republic of Azerbaijan has founded frontier
service in Azerbaijan. However, as you know, the People’s Republic of
Azerbaijan could not survive longer and collapsed in 1920. And thus,
in Azerbaijan, the process of establishment of the Frontier Troops
halted. In the soviet period, Azerbaijan, of course, had no its
frontier troops. However, I should note that the process of
establishment of the frontier troops started just in those years.
Thanks to farsighted policy of the nationwide leader of Azerbaijani
people Heydar Aliyev, in 1970s, in Azerbaijan, a strong military
cadre potential started to be established. Going back to those years,
analyzing the events and adopted decisions, we once again see that in
those years, Heydar Aliyev’s activity served independent survival of
Azerbaijan in future. Just by his decision, established was a
military school after Jamshid Nakhchivansky, which had no analogue in
the Soviet Union, and there was not such school in other republics.
Today, alumni of this School worthily serve in the Azerbaijan Army,
in the Frontier Troops. Chief of the State Frontier Service Elchin
Guliyev is the alumnus of this School. Hundreds and thousands of
frontier guards, now protecting security of Azerbaijan have received
their preliminary military courses in those days.

I should note that in those years, as a result of the done works, a
strong impulse was given to establishment of the independent army of
Azerbaijan, the frontier troops.

Of course, after Azerbaijan regained its state independence,
establishment of the frontier troops was the question of day. We also
know that in early 1990, after regaining of state independence,
anarchy and chaos ruled in the country, and the arbitrariness impeded
to any development and progress, to move ahead of the establishment
process. This was watched in the frontier troops either. To say, the
country’s borders were not protected at all. The boundaries were
see-through and perhaps, this caused great problem in ensuring safety
of Azerbaijan.

In 1993, after return of Heydar Aliyev to power on demand of the
people, establishment of the frontier troops acquired systematic
character, expedient measures were taken, and today we see that the
frontier troops of Azerbaijan have reached higher level. The
nationwide leader of the Azerbaijani people Heydar Aliyev made huge
contributions in the history of Azerbaijan, including in the army
building process. He has exclusive merits in creation of military
cadre potential in Azerbaijan. He paid constant attention to the
Frontier Troops, too, and this continues day. In 2002, on decision of
Heydar Aliyev, the Frontier Troops were separated from the Ministry
of National Security and established the independent State Frontier
Service.

Strengthening of material-technical base of the frontier service was
in daily focus. Huge technique and infrastructure objects were given
to the Frontier Service disposal. Today I am delightful that this
technique is well preserved and repaired. Several years ago, the
vessels, battle machines, helicopters of the Frontier Troops were
repaired at high level and they play significant role in protection
of state borders.

As a Supreme Commander-In-Chief of the Armed Forces of the Republic
of Azerbaijan I attach daily attention to army building, development
of the Frontier Troops. My meetings in the military units show that
the State of Azerbaijan pays great attention to this field. Last
year, being at the Khudat boundary unit, I met with the staff and
once again became assured that the works done in this field are high
level. Boundaries of Azerbaijan are protected at due level, and the
undertaken steps will enable to reliably protect the borders. The
process goes ahead. And it is natural. In the Soviet period,
Azerbaijan had no its state borders. Today, the length of the borders
with Russia and Georgia totals thousand km, approximately. Our
borders with Iran average 800 km. We know that the boundary was
destroyed in early 1990. And our borders with Armenia are over 1200
km. And you also know that these borders have been violated and in a
part of it, our troops were dislocated. We have to do a lot to
protect our borders in future.

Strengthening of material-technical base of the Frontier Troops go
successfully, and I would reiterate that all the appeals, requests
and suggestions of the Chief of the State Frontier Service on
strengthening of this base are considered operatively and in time. In
coning years, we shall allot great amount to this.

Azerbaijan’s economic potential rises, and our financial
opportunities get better. Azerbaijan’s budget rises year by year.
Current year, our state budget for the first time has reached $2
billion 200 million. Next year, our budget will be more than $3
billion. Perhaps, the budget first of all envisions huge amount for
military purposes.

Azerbaijan, economically, is very attractive country. Our economy
develops in high pace, having no analogue in the world. The GDP, in
the first half of 2005, has increased by 17 percent, and this is an
unseen index in the world. Rise of the industrious production by 20
percent means strengthening of our industrious potential and creation
of new infrastructure.

In Azerbaijan, great opportunities appear in the field of economy.
Perhaps, being economically attractive, our country draws attention
of many people. We are open for our friends, and pursue open door
policy. But the forces with insidious purposes should not try to
trespass our borders, they should know – the borders of Azerbaijan
are protected in due level.

Border is a significant token that embodies sovereignty of each
state. Border means independence. The independence is not possible
without border. Azerbaijan, truly, pursues independent policy and in
this, nationwide leader of Azerbaijan has exclusive merits. Just
thanks to his farsightedness, today Azerbaijan, both in political
field, in the international relations and in carrying out economic
reforms inside the country, pursues its state policy freely and in
according to its national interests.

Today, new threats emerge in the world. Combat against international
terrorism today is the factor uniting the world counties. Azerbaijan,
on its part, makes its contribution to fighting the international
terrorism and we shall further carry out this policy. The terrorists
do not recognize borders. Terrorism is jeopardy that it is difficult
to fight it. You do not see the enemy and he insidiously bayonets
you. Therefore, the world countries should unite to successfully
combat against international terrorism. There should not be
discrimination among the terrorists.

Azerbaijan has undergone terrorism. Since early 1990, the Armenian
terrorist organizations have committed about 30 terror acts in the
territory of Azerbaijan, as a result of which over 2 thousands
innocent people were killed. But in those years, we did not see the
world’s serious reaction to this question. Azerbaijan was facing its
problems alone. Neither international community, nor the world
organizations rendered assistance.

Now, as terrorism has become more dangerous for the world, it draws
more attention. That is, I want to say that the terrorists are not
only threat and jeopardy for your country. We should think over the
terrors acts committed in other countries, too. Azerbaijan actively
takes part in the anti-terror coalition and makes its contribution to
this.

We are deeply concerned on Illegal circulation of narcotics. The item
is already in the focus of the United Nations, other influential
global organizations. On our part, we always make certain proposals
on this question.

The greatest problem in Azerbaijan is the Armenia-Azerbaijan, Nagorno
Karabakh conflict and remaining of the territories under occupation.
We aspire to resolve the question in peace way, by negotiations.
International organizations pay more and more attention to this
problem. Fair voice of Azerbaijan is heard and the decisions adopted
by world organizations reflect the justice. And along with all these,
along with the diplomatic, political successes, the problem cannot
find its resolution. Therefore, we cannot reconcile with this
situation. We shall and further make efforts to settle the problem by
negotiations, peacefully, by political means, to liberate the
occupied lands of Azerbaijan from the aggressive forces, and then
refugees return to their homelands. We shall do our utmost for this.

At the same time, we all should know if the enemy would face the
great strength, supposedly, it will be open for talks, it will go to
compromises willingly. On this purpose, great works are being done to
strengthen military force of Azerbaijan. Our military budget has
increased by 76 percent and current year makes $300 million. We have
put before the government the task to increase next year the military
budget at this pace, at least, and thus all questions Azerbaijan
faces found their solution.

Material-technical base of our Army should strengthen. New technique,
armaments should be purchased, and will be purchased. Sure, using our
political, diplomatic and military opportunities, we shall gain what
we want. And what we want base on international principles. We do not
claim to the lands of other countries. But we shall not cede a sad of
our lands. Sooner or later, the Armenian leadership should understand
it. To compete with Azerbaijan is not possible for them.
Economically, politically and from the point of integration to the
world community and from the standpoint of military potential, today,
Azerbaijan is stronger than Armenia. In several years, the abyss
between us will deepen much.

Dear friends,

In two days, we all shall marks the day of frontier guards. I
reiterate, success of the Frontier Troops pleases me much. Our
Frontier Troops, from the point of view of material-technical base
and training, meet the highest world standards. Spirit of patriotism
is high. Every time when I meet with frontier guards, I see and feel
it. Remember, I shall make my contributions to development of the
Frontier Troops, and regard this question with deep care and
attention. We all must try for development of the Frontier Troops in
Azerbaijan.

I once again warmly congratulate you on this nice holiday. I wish you
success in service to Motherland.

Thanks.

PRESS RELEASE

Fund for Armenian Relief’s Fellowship Alumni Association
29 Rubinyants Street,
Yerevan, Armenia
Contact: Armine Gasparyan,
Program Assistant
Tel: (3741) 249677, 249675
E-mail: [email protected],
[email protected]
Web:

OMI/FARFAA SATELLITE SYMPOSIUM “ANESTHESIOLOGY”

Yerevan, July 25-26, 2005

FARFAA – Salzburg Medical Seminars Program, the Open Medical Institute
(OMI) program of the American Austrian Foundation, as well as the
Armenian Society of Anesthesiology and Intensive Care and Armenia
Pain Control and Palliative Care Association organized a Satellite
Symposium on “ANESTHESIOLOGY”. The symposium was sponsored by the
American Austrian Foundation and of FAR (Fund for Armenian Relief).

It took place on July 25-26, in Yerevan. About 150 anesthesiologists,
from different hospitals of Armenia both from the capital and province
attended.

~Z~Z

The chairmen of the symposium was Professor Gagik~Z Mkhoyan, the
head of the Armenian Society of Anesthesiology and Intensive Care
.The symposium was lead~Z by Dr. Sudhir Diwan and Dr. Aarti Sharma
from Weill Medical College of Cornell University, New York, USA..

Some of the lectures during the symposium were “Opioids and Chronic
Pain”, “Neuropathic Pain: Current Concepts”, “Interventional Pain
Management” (by Dr. Sudhir Diwan), “Overview of Neonatal Physiology
and Anesthesia”, “Pediatric Airway Interventional Pain Management”,
“Management of Congenital Cardiac Problem for Non-cardiac Surgery”,
“” (by Dr. Aarti Sharma ). Several case presentations were
demonstrated on “Case of Missed Aspiration”, “Iatrogenic Injury of
Trachea” (by St G. Lusavorich MC), “Rare Complication of Difficult
Airways Management”, “Presentations of Clinical Cases” (by EMC),
“Intra-operative Extubation” (by~Z Khojalu MH), “Fatal Complication
after General Anesthesia” (by St Nerses Mets MC).

The goal of the symposium was to present the latest information on
the experience and the knowledge of the international faculty members
to Armenian doctors.

Participants positively evaluated the symposium and organizing
committee thanks to the high level of presentations, interesting
discussions and established connections.

TURKISH CITIZEN FOUND GUILTY AND RELEASED IN COURTROOM

YEREVAN, AUGUST 16, NOYAN TAPAN. The court of first instance
of Yerevan’s Malatia-Sebastia community (chaired by Judge Karen
Farkhoyan) made on August 16 a decision, according to which Ektan
Turkyilmaz, a Turkish citizen, was sentenced to two years’ conditional
imprisonment with one year’s probation without supervision. The court
ruled that material evidence containing 88 items of literature shall be
handed over to the Republic of Armenia. The court found E. Turkyilmaz
guilty of smuggling and attempted smuggling. In his indictment, the
prosecutor Koryun Piloyan asked to impose a punishment not related to
imprisonment – 1 mln drams (about 2.3 thousand dollars) in fine and
confiscation of the books as material evidence. On the contrary, the
defence took the view that the acuused must be acquited of smuggling
charge in the absence of crime. To recap, according to the indictment,
the accused, aided by his sister, smuggled Ghevond Alishan’s book
“Sisvan and Cilicia: Levon Metsagorts” out of Armenia. As regards
attempted smuggling, the defence asked the court to impose a punishment
not related to imprisonment – without confiscation of the seized
items. The Turkish citizen may appeal against the court decision to
the RA Appeal Court on Criminal and Military Cases within 15 days.

REPORT: NO BIG GAINS TO ARMENIA IF TURKEY LIFTS BLOCKADE
Haroutiun Khachatrian 8/09/05

August 9, 2005
Eurasianet

A controversial report by an Armenian research and consulting group
claims that reopening the Armenian-Turkish border would have a much
smaller impact on Armenias economy than commonly believed.

The report was presented July 13 by the Armenian-European Political
Legal Advice Center (AEPLAC), a prominent think tank sponsored by the
European Union. It contended that Armenia would see its economy expand
by only $20-23 million annually, or just 0.67 percent of its current
Gross Domestic Product, if Turkey decided to lift its 12-year blockade
of the Armenian border. Over the next five years, Armenias GDP would
see an additional 2.7 percent increase over the countrys level in
2004.

The gain, the report maintained, would be almost exclusively the
result of lower cargo transportation costs associated with the
reopening of the Kars-Gyumri railroad that connects the two
countries. Currently, Armenian goods can only reach trade partners via
Georgia, which charges relatively high cargo tariffs. Transportation
costs account for some 25-30 percent of Armenias trade costs,
according to the report.

The reports findings caught many Armenian academics and journalists by
surprise. A widely cited 2000 World Bank study predicted that Armenia
would see a 30-percent increase in GDP if both Turkey and Azerbaijan
lifted their economic embargos. Since then, the Armenian economy has
experienced impressive growth. [For background see the Eurasia Insight
archive]. Many observers and economists believed that lifting the
blockade would boost those numbers still higher.

Turkey closed its border with Armenia in 1993 in an act of solidarity
with Azerbaijan. At the time, Armenian and Azerbaijani forces were
battling for control of the Nagorno-Karabakh enclave. [For background
see the Eurasia Insight archive]. The blockade cause substantial
economic hardship in Armenia for much of the 1990s. In early 2004,
Turkey reportedly considered re-opening the border, but eventually
decided against it. [For background see the Eurasia Insight archive].

Turkish goods — worth an estimated $40 million per year, according to
the National Statistical Service of Armenia — manage to enter Armenia
via third countries. A general belief exists that if the border were
re-opened, Armenia would be able to export a comparable amount of
goods and services, namely electricity to its western neighbor.

Many economists have challenged the reports findings. They note that
the analysis contained in the report, which was written by a
seven-member team, largely concurs with recent statements made by
various government officials, who have downplayed the need for an open
Turkish-Armenian border. The daily Azg, for instance, commented on
July 7 that the reports argument provided strong support for Foreign
Minister Vartan Oskanians position that Armenia will not make any
political concessions to Turkey in return for the lifting of the
border blockade. “If the economic impact of lifting the blockade is
negligible, then there is no reason to open the border,” said a recent
editorial published by the Russian-language Delovoi Ekspress. “And
this is pure politics.”

Others take issue with the reports statistical analysis. Economist
Eduard Agajanov, who served as minister of statistics under former
President Levon Ter-Petrosian (1991-1998), charged that the report
underestimated the economic impact of reopening the Turkish-Armenian
border in order to provide political support for President Robert
Kocharians administration. “Its purpose is to preserve the current
oligarchic economic system in Armenia, which cannot survive if the
borders are opened and competition with Turkish goods becomes
tougher,” Agajanov said. If Armenia regains access to markets of the
Middle East via Turkey, Agajanov argued, it would stimulate a whole
range of industries that were active during the Soviet era, when the
Middle East and India were major markets.

The AEPLAC authors said they took various factors into account,
including the 2000 World Bank study and the potential re-entry of
Armenian companies into Middle Eastern markets. Ultimately, however,
they decided that Armenian producers do not presently have the
resources to meet demand in Turkey and the Middle East for goods, such
as electricity and cement. At the same time, the report suggested that
reopening the Turkish-Armenian border might stimulate economic growth
in eastern regions of Turkey, where GDP per capita is even lower than
in Armenia.

Although the authors of the AEPLAC report state that it was
commissioned by the Armenian government, Trade and Economic
Development Minister Karen Chshmaritian has denied that the government
had anything to do with the preparation of the document.

At a July 27 press conference, Chshmairtian criticized the AEPLAC
estimates as too conservative. “They have not taken into account the
effect of mutual penetration of capital from the two countries. Turkey
obviously hinders its businessmen from investing in Armenia, and when
this ban is eliminated, growth may be highly accelerated,” he
stated. To prove the point, Chshmaritian told reporters, the
government is conducting its own research into the economic impact of
Turkey lifting its border blockade. A report is due out later this
year, he said.

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

Posted August 9, 2005 © Eurasianet

Eurasia Daily Monitor, DC
The Jamestown Foundation
Aug 8 2005

ARMENIAN NUCLEAR PLANT TO FUNCTION FOR ANOTHER DECADE

By Emil Danielyan
Monday, August 8, 2005

Armenia appears to have decided to keep its vital nuclear power
station at Metsamor operational for another decade, despite
persisting Western concerns about the safety of the Soviet-built
facility. The authorities in Yerevan, reluctant to set a date for the
plant’s inevitable closure until recently, have deferred the decision
over the past few months.

The director general of the International Atomic Energy Agency
(IAEA), Mohamed El Baradei, ascertained their intentions during a
recent visit to Yerevan. “I think the Armenian authorities would like
to continue to operate the reactor for around ten years,” El Baradei
said after talks with President Robert Kocharian and other senior
Armenian officials on July 28.

This will hardly please the United States and especially the European
Union. They have for years been pushing for a quick decommissioning
of Metsamor, saying that it is located in a seismically active region
and that its sole operating reactor is inherently flawed. But the
United States and the EU seem to have no option other than continuing
to work with Yerevan in further boosting the plant’s safety during
its final years of operation. They are also clearly conscious of the
fact that it meets as much as 40% of Armenia’s energy needs.

Built 35 kilometers west of Yerevan in 1977, the nuclear plant was
promptly shut down by Soviet authorities following the December 1988
earthquake that devastated much of northern Armenia. Metsamor’s
closure was hardly felt until the collapse of the Soviet Union and
the outbreak of wars in Karabakh and elsewhere in the South Caucasus.
Those events plunged Armenia into a crippling energy crisis that
forced its first post-communist government to reactivate one of the
plant’s two reactors in 1995. The move, coupled with a radical reform
of the Armenian energy sector, not only ended the power shortages but
also enabled the landlocked, resource-poor country to export to some
of its neighbors.

The West opposed Metsamor’s reactivation from the outset, but
eventually had to come to terms with it. The Americans and Europeans
have each spent tens of millions of dollars on measures to improve
the plant’s operational safety over the past decade. In return for
the large-scale assistance, the administration of Armenia’s former
president Levon Ter-Petrosian reportedly promised to decommission it
in 2004. However, Kocharian never felt bound by that pledge and his
government insists that Metsamor is safe enough to continue its
operations.

Kocharian told El Baradei that his administration is committed to
further improving safety standards at Metsamor. The Vienna-based IAEA
has regularly inspected the plant and has not reported serious
violations so far. El Baradei commended the Armenian authorities for
their “good” cooperation with the UN’s nuclear watchdog.

Armenian energy officials say Metsamor’s VVER-440 light-water reactor
is more advanced than any of the RBMK-1000 reactors of the Chernobyl
nuclear station that exploded in 1986. Their European counterparts,
however, believe VVER-440 is one of the most dangerous facilities of
its kind in the world. The European Commission said in a report last
March that the closure of all Soviet-built nuclear facilities remains
“a key EU objective.”

The Armenian government may have coped with Western pressure well,
but it clearly cannot avoid setting a date for the nuclear plant’s
closure anymore. Deputy Energy Minister Areg Galstian told
journalists on June 23 that the government is already preparing for
the start of the decommissioning process, which he said would be
complete before 2016. The process promises to be very costly.
According to Galstian, its first stage alone requires $44 million
worth of expenditures. That includes the construction of a second
storage site for nuclear waste.

Yerevan hopes that Western donors will foot most of the
multimillion-dollar bill. It has contended all along that Armenia
cannot afford to halt the Metsamor reactor before developing
alternative sources of power generation. Yet it appears that the
problem is not so much the availability of those sources as their
production costs. Thermal power plants already account for 40% of
electricity production in Armenia and can substantially increase
their output at any moment. The problem is that the electricity
generated by them is much more expensive than nuclear energy.

The Armenian authorities borrowed $150 million from the Japanese
development agency last March for a complete reconstruction of an old
thermal plant in Yerevan. Its production costs are due to fall
dramatically as a result. The authorities are also looking for a
foreign investor to complete the protracted construction of a new
gas-powered plant in the central town of Hrazdan. The two facilities
are expected to be the main recipients of Iranian natural gas that
will be delivered to Armenia through a pipeline currently under
construction.

The pipeline is a key component of a 20-year energy sector
development plan that the Armenian government approved on June 23.
The plan also envisages the construction of new hydroelectric
stations across the country.

The government’s decisions on the issue are also bound to be
influenced by the fact that Metsamor’s finances are managed by
Russia’s state-owned power monopoly, Unified Energy Systems, in
accordance with a 2003 swap agreement that settled the plant’s $40
million debt to Russian nuclear fuel suppliers. The deal enabled
Metsamor to balance its books and secure fresh fuel deliveries. It
remains to be seen at what cost.

(Hayastani Hanrapetutyun, July 29; Statement by the Armenian
president’s press service, July 28; RFE/RL Armenia Report, July 28,
March 28; Haykakan Zhamanak, June 24)

The eccentric aesthete

TDN
Sunday, August 7, 2005

FEATURE

Portobello Road

The Islamic Gemstone captures within it the various controversies of science and faith, as the images speak a thousand words

ANDY MCSMITH – TDN Guest writer

In May 2004, Picasso’s “Garcon a la Pipe” went under the hammer for a
whopping $104 million to an anonymous buyer that left even the experts
flabbergasted. Prior to this, Van Gogh’s “Portrait of Dr. Gachet”
was the record holder for the most expensive painting when it was
sold in May 1990 at the princely price of $82.5 million.

Why has art been able to command such prices? Is it because, as
Stephane Le Pelletier of Opera Gallery puts it, there is a diminishing
supply of masterpieces as more famous pieces get snapped up by museums
or are donated to these public institutions for the enjoyment of the
masses? While many are unable to comprehend and find justification for
such prices, there are those who remain unfazed by the prices offered.

History determines value:

Demand and supply is a small factor of its worth and is only tangential
to the reasons behind why one is willing to offer so much. Generally,
the history behind the artifact or artist or both determines much of
its value and significance. As Tobias Meyer, Sotheby’s director of
contemporary art, once said: “A work has to have historical importance
apart from aesthetic merit. There is a direct price correlation. Of
course, there are works that are very important historically but are
aesthetically difficult, which makes them somewhat challenging to
sell.” Another factor of high prices is of course attributed to the
bidding frenzy.

In 2002, the Black Star of Queensland went up for sale at a reserve
price of $88 million.

February last year, we saw the Forbes family sell off their fabled
collection of Faberge imperial Easter eggs to Russian oil magnate
Victor Vekselberg. This was just months before they were to be sold
at auction. The price remains undisclosed; however, many estimated
it to be around $90 million, if not more.

In March of last year, the Islamic Gemstone was offered a price
of around $70 million; however, its price has continued to spiral
upwards since it was put up for sale. Today, it is valued at close to
$100 million. The sale of the gemstone is planned to conclude by the
end of this year, but many believe that it may even end up being sold
earlier like the Faberge eggs when all requirements (and expectations)
have somewhat been exceeded.

According to the Weekly Independent, experts believe that the gemstone
may eventually be sold for over $100 million as in the case of many
other highly sought after rare paintings, sculptures and artifacts. The
owner has appointed his friend, who is also the chairman and CEO of
the O&S Group, Eli Oliveiro, to oversee the entire process. “Money
is an issue, but it is not the issue. Even if someone offers $150
million tomorrow, it will not lead to an immediate conclusion of
the sale. There are other things that have to be considered. The
gemstone is exquisite and extremely rare in its own right, simply
one of a kind. It carries with it a deeper symbolic meaning, which
gives it the intrinsic value unlike the norm and we all know that. We
want to ensure that the gemstone ends up in the best possible hands,”
says Oliveiro. Among those who find the gemstone captivating include
Muhammad Hamad Al Nasr, vice chairman of the National Council for
Culture, Arts and Heritage of Qatar, who said, “It is really a
splendid one.”

Putting a price is near impossible:

Owing to the danger of fakes going around, a painting, or for that
matter any other art, will generally be sought after if it has been
well documented in the literature of its period.

The Islamic Gemstone, and other of such art, however, is an exception,
as the distinctive patterns on this gemstone cannot be imitated. This
leads to some, including the Friday Times, to conclude that perhaps
putting a price to an art piece like the Islamic Gemstone is nearly
impossible.

“Garcon a la Pipe” was considered a “minor painting” by Picasso expert
Pepe Karmel as he expressed surprise at the price at which it was
sold. Art is truly subjective, as the maxim goes, “Beauty lies in
the eye of the beholder.”

The histories of both the Black Star of Queensland and the Islamic
Gemstone are unique. For the former, legend has it that a 14-year-old
Roy Spencer was reported to have found the sapphire in 1935. After his
father dismissed the stone as worthless, it was used as a doorstop
at their back veranda. It wasn’t until almost a decade later that
the rock’s value was realized and word was put out that it was up
for sale. In 1947, Armenian-born jeweler Harry Kazanjian traveled
from his home in Los Angeles to buy the prized stone. Spencer may
have initially been a little slow on the uptake, but he managed to
obtain the stone for $18,000. When weighed, it tipped the scales past
the 1,100-carat mark. It was then cut and polished by Kazanjian, to
reveal a brilliant six point star sapphire weighing 733 carats —
dwarfing the fabled Star of India sapphire’s 563 carats. Despite
the cost, the stone brought “great luck” to the Kazanjian family,
who went on to become one of the biggest gem dealers in the world.

The Islamic Gemstone, on the other hand, captures within it the
various controversies of science and faith, as the images speak a
thousand words.

Quite unexplainably, its images depict a bearded man in a Middle
Eastern outfit and wearing an imamah (Arab turban). He seems to be
seated cross-legged and reading from a book in what looks like a
cave. Some believe the book to be holy scripture. Beside him against
the wall lies a scimitar. What remains even more of a wonder is the
unusually clear facial profile of the man.

Most extraordinarily, potential owners in this case can only be
invited, and those not invited, although having offered what is
considered a very high price, will usually not be considered. “There
are certain things that money just cannot buy,” says Oliveiro.