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PRESS RELEASE
November 15, 2004
Embassy of the Republic of Armenia
2225 R Street, NW, Washington, DC, 20008
Tel: 202-319-1976, x. 348; Fax: 202-319-2982
Email: [email protected]; Web: www.armeniaemb.org
Armenian Ambassador Attends Counterterrorism Conference at Virginia State
University
On November 12, 2004, Armenian Ambassador to the U.S., Dr. Arman Kirakossian
attended a conference on Terrorism and Threat Assessment: The United States
of America - The Newly Independent States' Partnership in the War Against
Terrorism, Democracy-Building and Market Reforms. The international
conference was organized by the Virginia State University and moderated by
Dr. Ceslav Ciobanu of VSU, formerly Moldova's Ambassador to the U.S.
Ambassadors from Azerbaijan, Georgia, Kyrgyzstan, and Moldova, as well as
officials from USAID, U.S. Army, CIA, and experts from the Virginia State
University, University of Virginia, James Madison University, Virginia
Commonwealth University participated in the conference and delivered
remarks. In his presentation, Armenian Ambassador Arman Kirakossian noted
Armenia's substantial contributions to the war against terrorism and
described the main directions of Armenia's foreign policy in view of
post-9/11 geopolitical environment. Ambassador Kirakossian also presented
Armenia's political and economic progress since independence and the current
state of U.S.-Armenian relations.
The text of Ambassador Kirakossian's presentation is attached.
************************************************** **
U.S. - Armenian Relations: Current Realities and Vision for Future
Address by Ambassador Arman Kirakossian at the Virginia State University
An International Conference on Terrorism and Threat Assessment: The United
States of America - The Newly Independent States' Partnership in the War
Against Terrorism, Democracy-Building and Market Reforms
November 12, 2004
Dean Hill,
Distinguished colleagues
Dear guests,
I would like to thank the Virginia State University for hosting my
counterparts and me in your beautiful campus and for the opportunity to
address the conference on a topic of great importance to modern-day
international relations.
The partnership between the United States and the Newly Independent States
is an important component in the Global War against Terrorism due to
proximity of many of these states to the zones of instability and the main
theaters of operations.
Before I address the subject, I want to put this partnership in perspective
so that you appreciate the enormous changes that have occurred in our region
and globally in the last decade and a half. Sometimes, it is easily
forgotten that only 15 years ago, there were two superpowers prepared to
annihilate each other with nuclear weapons; that the demands in Soviet
Republics to achieve independence from the Soviet Union were met with
obstruction and brute force from the Soviet authorities and patronizing
smiles abroad; that democracy and market economy were only dreams, not a
matter of sound policy in Eastern Europe and Eurasia. We have come a long
way since that, and we have much ground to cover yet.
Armenia's modern reawakening began in 1960's, and by 1988 it bubbled to the
surface in the form of national revival, environmental movement, demands for
self-determination of Nagorno-Karabakh - a product of Stalin's policy, an
Armenian enclave in Azerbaijan - and eventually, the drive for independence.
It is in this context that the current phase of U.S.-Armenian relations
began. But our nations were not strangers to each other. U.S. involvement in
Armenia began in late nineteenth century, when American missionaries, public
figures, and philanthropists formed relief societies to assist the victims
of the Armenian massacres perpetrated by the Ottoman government in
1894-1896. Hundreds of thousands of Armenians fleeing from massacres and the
1915 Genocide in the Ottoman Empire found refuge in this country in
twentieth century.
The Armenian Americans have become loyal citizens of this country, fighting
to defend its freedom and contributing to its economic, political, and
cultural development. When a terrible earthquake struck Armenia in December
1988, the United States government provided much-needed relief and
assistance to the victims of the earthquake. The commitment of the American
people and their Government to Armenia continued after the independence had
been established as well. The Armenian American community plays an important
role in this process, by fostering economic, commercial, and political
cooperation between our countries.
With so much historical and political connections, it should not come as a
surprise that Armenia's relations with the United States are excellent. They
are based on shared values and principles, like freedom, democracy,
advancement of human rights, and free enterprise. Underlying the strength of
the bilateral relations are the human links between our countries, such as
the existence of the Armenian-American community that bridges our countries.
Armenia has had very good partners in the successive U.S. administrations,
and in the United States Congress as well; the Congressional Caucus on
Armenian Issues numbers 140 members of Congress. In the successive
administrations and sessions of Congress, we have found good friends and
partners in helping to strengthen Armenia's independence, providing guidance
and assistance in implement complex democratic and economic reforms to
unlock the creative and enterprising spirit of the people of Armenia. We are
extremely proud of this partnership, and realize the responsibility it
places on us.
As I said, the dissolution of the Soviet Union created a principally new
situation in our region, the South Caucasus. The interests of many powers
often diverge openly, and Armenia's position in this context is to find
benefits in smoothing over the disagreements between the powers rather than
in playing them off against one another, and to stake its long-term
political dividends on pursuit of cooperative relations with all willing
neighbors and all economic, political, or military organizations with
interests in our region. Given Armenia's size, relative proximity to
troubled regions of the world, and the geopolitical context I have described
above, this approach to our foreign policy really has no alternative. Thus,
we pursue a complementary foreign policy.
One of the primary challenges of complementary foreign policy is maintaining
good policy with our neighbors and regional powers. Armenia is a member of
Commonwealth of Independent States which provides an important forum for
discussing economic and political issues with former Soviet states, a legacy
of 70 years of shared experience and existence within borders of one state.
Armenia is also a member of Collective Security Treaty Organization,
together with Russia, Belarus, Kazakhstan, Tajikistan, and Kyrgyzstan, which
provides for military-political cooperation with those states. At the same
time, Armenia is fully engaged in NATO's Partnership for Peace program. In
2003 Armenia hosted a NATO PfP military exercise for the first time, and we
will host another one in 2006. Armenia is working with NATO to develop its
Individual Partnership Action Plan.
One long-term goal of Armenia's foreign policy is European integration.
Armenians belong to Europe culturally, and it is only natural that the
Republic of Armenia aspires to join the common European community of
nations. Europe is entering a new period in its evolution, with
unprecedented institutional changes taking place. It is important to proceed
so that new divisions are not introduced in the new Europe, and it is
important to protect the rights of peoples, nations and individuals. Since
January 2001, Armenia has joined the Council of Europe, and we have made a
number of commitments before our new partners in regards to Armenia's
legislation and democratic practices. In June 2004, the European Union
invited Armenia, Azerbaijan, and Georgia to join its New Neighborhood
initiative, which we hope will advance democracy and economic cooperation in
our region. The face of Europe has changed dramatically, and universal
values of democracy, human rights and liberties, respect for national
freedom - values we Armenians aspire towards - have become the building
blocs of new Europe.
The benefits of a realistic, pragmatic, and complementary foreign policy
were evident in the wake of the terrorist attacks of 9/11, which have
dramatically transformed the international security environment and firmly
put the United States in the forefront of the international campaign against
terrorism. The Armenian reaction to the events of September 11 underscored
the unique and human nature of U.S.-Armenian relations. Our hearts went to
the American people during the tragic days of that fateful September.
Armenia has helped and is helping the United States-led campaign against
international terrorism in Afghanistan. In the wake of 9/11, the
U.S.-Armenian military cooperation programs have become a new component of
the Armenian security framework and are fully in compliance with Armenia's
complementary foreign policy. U.S.-Armenian security cooperation involves
periodic discussions of joint action in such areas as combating terrorism,
securing borders, and non-proliferation. The United States military is
providing much-needed assistance to Armenia in training peacekeeping
personnel and demining. Armenia's first platoon of peacekeepers was assigned
to Kosovo in March 2004, completed its duty there in September, and was
replaced by a second platoon of soldiers. Armenian Armed Forces and the
Kansas National Guard have a cooperation program that will further
strengthen the ties between our armed forces.
As part of the Greater Near East region surrounding Iraq, Armenia was and
remains concerned about the situation in Iraq. Armenia hopes that
post-conflict rehabilitation and democratization efforts will promote
stability in the region and help Iraq emerge as a modern, well-governed, and
democratic state that addressed concerns of all of Iraq's social and ethnic
groups. The primary factor guiding Armenia's policy on Iraq in the run-up to
and during implementation of Operation Iraqi Freedom was the presence of a
sizable ethnic Armenian community in Iraq. Iraq is home to approximately
30,000 Armenians, who belong to the Armenian Apostolic and Armenian Catholic
Churches, recently hit in Baghdad. This population is well-established and
highly urbanized; it is primarily engaged in commercial activities.
Recently, the Armenian Government pledged to provide up to 50 non-combat
personnel to join the coalition forces in Iraq.
The United States plays an important role in South Caucasus, in promoting
regional stability. Improving Armenian-Turkish relations is a key toward
that goal. Armenia's renewal of independence was an opportunity to begin a
new era in relations with Turkey, but Turkey's attitude towards the newly
independent Armenia was anything but friendly. Despite Armenian Government's
visionary position, Turkey refused to establish diplomatic relations with
Armenia, closed the borders with Armenia and maintains an economic blockade
of Armenia. Even when Armenia offered the use of its railway network to
transport U.S. military's cargo in the wake of 9/11, Turkey still refused to
cooperate. While Turkey is a member of the OSCE Minsk Group, which is
charged with mediating the Nagorno-Karabakh conflict, it has continuously
used its diplomatic arsenal to undermine Armenia's position vis-à-vis
Azerbaijan. The reality is, economic blockades and exclusions targeting any
country of the region undermine the economic and security potential of the
entire region. That's why Armenia is ready to continue interstate dialogue
with the Republic of Turkey and establish diplomatic relations, with no
preconditions.
An important aspect that influences Armenia's security environment is the
Nagorno Karabakh conflict. The conflict resolution is implemented through
the mediation of OSCE. The United States is a co-chair of the OSCE Minsk
group, and so is Russia and France. Thus, the three co-chairs facilitate
negotiations between parties to the conflict. Nagorno Karabakh conflict
resolution is one of the biggest issues in bilateral relations between
Armenia and the United States.
Without going into historical roots, the conflict in its current form dates
to 1988, when the Armenians of Nagorno-Karabakh - comprising 78% of the
region's population - renewed their demands for self-determination. After
the Soviet Union fell, the just demands of the Karabakh Armenians were met
with brutal force. Armed conflict ended with a cease-fire in May 1994. In
the process, Karabakh Armenians were able to establish a de-facto
independent republic. The unresolved nature of this conflict continues to
affect the regional stability in the Caucasus. The last major breakthrough
in resolution of this conflict came at the initiative of the administration
of George W Bush, in Key West, FL, when Presidents Aliyev and Kocharian came
very close to an agreement guaranteeing a durable settlement. Since then,
Azerbaijan retracted its agreement. The new president, Ilham Aliyev, Heydar's
son, has already held several meetings with Armenian President Kocharian to
try to restart and resolve the issue.
It's important to realize that the ceasefire regime in zone of conflict is
based on the goodwill of all parties, and the war rhetoric can undermine the
confidence in its ability to abide by the ceasefire regime. For its part,
Armenia remains committed to a peaceful settlement of the Nagorno Karabakh
conflict. We hope to be able to move forward with a comprehensive peace
plan, bringing a permanent peace to the people of Karabakh, Armenia, and
Azerbaijan, and securing the stability of the region.
Also in our region, Armenia and its neighbor Georgia share a border and
history, as two native Caucasus people with millennia-long tradition of
statehood, national identity, and struggle for national liberation. Georgia
is an important neighbor of Armenia, all the more so because Armenia's
primary transit route and outlet to sea lies through the Georgian territory.
Armenia enjoys friendly and firm relations with Georgia, enforced by the
presence of a large Armenian community in Georgia. The amicable
Georgian-Armenian relations are one of the pillars of the emerging South
Caucasus security framework.
Security and military cooperation and conflict resolution are by far not the
only issues in U.S.-Armenian relations. I have already said that the basis
for our relations is shared values and principles. The United States has
been a role model for Armenia as it builds a democratic system and civic
society; moreover, the United States has provided crucial assistance to help
Armenia strengthen its democratic institutions and electoral system. The
United States has also encouraged and supported the challenging economic
transition in Armenia, especially in such key areas as energy, economic
legislation, and science and technology.
The history of economic transition in Armenia is not unlike many of its
neighbors. By 1989 Armenia had developed heavy industry, including radio
electronics, defense, and chemical industries. This was a blessing in
disguise, because it allowed a high level of urban employment but made
Armenia completely dependent on the Soviet Union. Cities were built that
depended on one huge plant to provide employment, like Hrazdan,
Charentsavan, Kapan. Pollution and social problems also arose. After the
collapse of the Soviet Union, enterprises that employed thousands of people
are now idle, and the people who worked there found themselves out of job.
The problem of unemployment is especially tough for those with fewer skills.
The Armenian Government and the World Bank estimate that more 50% of
population is vulnerable while 23% live in dire poverty. The Government,
working together with its donors, has adopted a national strategy for
poverty reduction that will stress creation of economic opportunities,
training, and targeted social work to significantly reduce poverty by 2014.
Despite tremendous challenges and the blockade, Armenian economy has grown
since 1994, and we remain optimistic about its future prospects.
As always, economy and commerce are areas that affect the nations the most.
In general, Armenia's economy has posted strong growth rates: nearly 14% in
2003, and 9.6% so far in 2004. Leading Armenian growth industries are
construction, jewelry and diamond processing, and manufacturing, as well as
export-oriented industries. U.S.-Armenian bilateral trade is displaying
strong growth trend. In 2003, Armenian exports to the U.S. grew by 22% over
2002; in January-July 2004, they grew by 61% over the same period in 2003.
Leading Armenian exports to the U.S. are software and IT products, jewelry,
apparel, and processed food. The trade balance is still in favor of the
U.S., but trade, as we all know, benefits both sides. U.S. investment in
Armenia are primarily concentrated in several sectors, including mining,
construction, Information Technologies, and food procession. In fact, one of
the fastest growing sectors of Armenian economy, IT and software
manufacturing, is completely dominated by U.S.-based or U.S.-owned
companies. One of the outstanding issues in the area of trade is a bill
pending in U.S. Congress that will grant Armenia Permanent Normal Trade
Relations status, resulting from Armenia's accession to WTO.
Despite the many accomplishments, we still face numerous challenges in
Armenia, especially in the social sector. In making our dream of a strong,
stable, and prosperous Armenia come true, it is necessary to strive towards
a healthy democratic environment, coordinate our efforts, and display a
common will. In the coming year, the Armenian government will continue to
improve the business environment and reduce tax burden to allow domestic and
foreign business leaders and investors to implement business projects in
Armenia. The revitalization of the Armenian economy requires serious
investments, both domestic and foreign. The presence of foreign companies in
Armenia and creation of new jobs will help the government to finally stem
the outflow of population from Armenia and improve the living standards.
To discuss trade and commerce, as well as issues relating to economy and
U.S. assistance to Armenia, our governments have established a forum called
U.S.-Armenia Economic Task Force, which is an important mechanism of
discussing bilateral issues that affect all sectors of the Armenian economy
in a positive manner. We hope that the U.S. assistance to Armenia will
continue at the same level in the near future. In this regard, we appreciate
Armenia's selection, along with 15 other countries, as potential recipients
of Millennium Challenge Account (MCA) funds. The MCA, a foreign aid
distribution mechanism introduced by the Bush administration, will fund
programs submitted by eligible countries to promote the goals of poverty
reduction and economic development. The Armenian government plans to present
programs based on the Strategic Poverty Reduction Program it is pursuing,
which coincides with the aims of the MCA programs.
We greatly appreciate the U.S. policies aiming to foster greater regional
cooperation and economic interaction in our region, which will promote both
prosperity and security in the region. I remain optimistic about the future
of our region. The stabilization and democratization of Iraq, progress in
the Middle East peace process, peaceful settlement of the Nagorno Karabakh
conflict and Turkey's positive engagement in South Caucasus are all
plausible, not merely theoretical constructs, and they can unlock the
potential of greater cooperation between the countries of South Caucasus and
the Middle East.
Thank you.
November 15, 2004
Embassy of the Republic of Armenia
2225 R Street, NW, Washington, DC, 20008
Tel: 202-319-1976, x. 348; Fax: 202-319-2982
Email: [email protected]; Web: www.armeniaemb.org
Armenian Ambassador Attends Counterterrorism Conference at Virginia State
University
On November 12, 2004, Armenian Ambassador to the U.S., Dr. Arman Kirakossian
attended a conference on Terrorism and Threat Assessment: The United States
of America - The Newly Independent States' Partnership in the War Against
Terrorism, Democracy-Building and Market Reforms. The international
conference was organized by the Virginia State University and moderated by
Dr. Ceslav Ciobanu of VSU, formerly Moldova's Ambassador to the U.S.
Ambassadors from Azerbaijan, Georgia, Kyrgyzstan, and Moldova, as well as
officials from USAID, U.S. Army, CIA, and experts from the Virginia State
University, University of Virginia, James Madison University, Virginia
Commonwealth University participated in the conference and delivered
remarks. In his presentation, Armenian Ambassador Arman Kirakossian noted
Armenia's substantial contributions to the war against terrorism and
described the main directions of Armenia's foreign policy in view of
post-9/11 geopolitical environment. Ambassador Kirakossian also presented
Armenia's political and economic progress since independence and the current
state of U.S.-Armenian relations.
The text of Ambassador Kirakossian's presentation is attached.
************************************************** **
U.S. - Armenian Relations: Current Realities and Vision for Future
Address by Ambassador Arman Kirakossian at the Virginia State University
An International Conference on Terrorism and Threat Assessment: The United
States of America - The Newly Independent States' Partnership in the War
Against Terrorism, Democracy-Building and Market Reforms
November 12, 2004
Dean Hill,
Distinguished colleagues
Dear guests,
I would like to thank the Virginia State University for hosting my
counterparts and me in your beautiful campus and for the opportunity to
address the conference on a topic of great importance to modern-day
international relations.
The partnership between the United States and the Newly Independent States
is an important component in the Global War against Terrorism due to
proximity of many of these states to the zones of instability and the main
theaters of operations.
Before I address the subject, I want to put this partnership in perspective
so that you appreciate the enormous changes that have occurred in our region
and globally in the last decade and a half. Sometimes, it is easily
forgotten that only 15 years ago, there were two superpowers prepared to
annihilate each other with nuclear weapons; that the demands in Soviet
Republics to achieve independence from the Soviet Union were met with
obstruction and brute force from the Soviet authorities and patronizing
smiles abroad; that democracy and market economy were only dreams, not a
matter of sound policy in Eastern Europe and Eurasia. We have come a long
way since that, and we have much ground to cover yet.
Armenia's modern reawakening began in 1960's, and by 1988 it bubbled to the
surface in the form of national revival, environmental movement, demands for
self-determination of Nagorno-Karabakh - a product of Stalin's policy, an
Armenian enclave in Azerbaijan - and eventually, the drive for independence.
It is in this context that the current phase of U.S.-Armenian relations
began. But our nations were not strangers to each other. U.S. involvement in
Armenia began in late nineteenth century, when American missionaries, public
figures, and philanthropists formed relief societies to assist the victims
of the Armenian massacres perpetrated by the Ottoman government in
1894-1896. Hundreds of thousands of Armenians fleeing from massacres and the
1915 Genocide in the Ottoman Empire found refuge in this country in
twentieth century.
The Armenian Americans have become loyal citizens of this country, fighting
to defend its freedom and contributing to its economic, political, and
cultural development. When a terrible earthquake struck Armenia in December
1988, the United States government provided much-needed relief and
assistance to the victims of the earthquake. The commitment of the American
people and their Government to Armenia continued after the independence had
been established as well. The Armenian American community plays an important
role in this process, by fostering economic, commercial, and political
cooperation between our countries.
With so much historical and political connections, it should not come as a
surprise that Armenia's relations with the United States are excellent. They
are based on shared values and principles, like freedom, democracy,
advancement of human rights, and free enterprise. Underlying the strength of
the bilateral relations are the human links between our countries, such as
the existence of the Armenian-American community that bridges our countries.
Armenia has had very good partners in the successive U.S. administrations,
and in the United States Congress as well; the Congressional Caucus on
Armenian Issues numbers 140 members of Congress. In the successive
administrations and sessions of Congress, we have found good friends and
partners in helping to strengthen Armenia's independence, providing guidance
and assistance in implement complex democratic and economic reforms to
unlock the creative and enterprising spirit of the people of Armenia. We are
extremely proud of this partnership, and realize the responsibility it
places on us.
As I said, the dissolution of the Soviet Union created a principally new
situation in our region, the South Caucasus. The interests of many powers
often diverge openly, and Armenia's position in this context is to find
benefits in smoothing over the disagreements between the powers rather than
in playing them off against one another, and to stake its long-term
political dividends on pursuit of cooperative relations with all willing
neighbors and all economic, political, or military organizations with
interests in our region. Given Armenia's size, relative proximity to
troubled regions of the world, and the geopolitical context I have described
above, this approach to our foreign policy really has no alternative. Thus,
we pursue a complementary foreign policy.
One of the primary challenges of complementary foreign policy is maintaining
good policy with our neighbors and regional powers. Armenia is a member of
Commonwealth of Independent States which provides an important forum for
discussing economic and political issues with former Soviet states, a legacy
of 70 years of shared experience and existence within borders of one state.
Armenia is also a member of Collective Security Treaty Organization,
together with Russia, Belarus, Kazakhstan, Tajikistan, and Kyrgyzstan, which
provides for military-political cooperation with those states. At the same
time, Armenia is fully engaged in NATO's Partnership for Peace program. In
2003 Armenia hosted a NATO PfP military exercise for the first time, and we
will host another one in 2006. Armenia is working with NATO to develop its
Individual Partnership Action Plan.
One long-term goal of Armenia's foreign policy is European integration.
Armenians belong to Europe culturally, and it is only natural that the
Republic of Armenia aspires to join the common European community of
nations. Europe is entering a new period in its evolution, with
unprecedented institutional changes taking place. It is important to proceed
so that new divisions are not introduced in the new Europe, and it is
important to protect the rights of peoples, nations and individuals. Since
January 2001, Armenia has joined the Council of Europe, and we have made a
number of commitments before our new partners in regards to Armenia's
legislation and democratic practices. In June 2004, the European Union
invited Armenia, Azerbaijan, and Georgia to join its New Neighborhood
initiative, which we hope will advance democracy and economic cooperation in
our region. The face of Europe has changed dramatically, and universal
values of democracy, human rights and liberties, respect for national
freedom - values we Armenians aspire towards - have become the building
blocs of new Europe.
The benefits of a realistic, pragmatic, and complementary foreign policy
were evident in the wake of the terrorist attacks of 9/11, which have
dramatically transformed the international security environment and firmly
put the United States in the forefront of the international campaign against
terrorism. The Armenian reaction to the events of September 11 underscored
the unique and human nature of U.S.-Armenian relations. Our hearts went to
the American people during the tragic days of that fateful September.
Armenia has helped and is helping the United States-led campaign against
international terrorism in Afghanistan. In the wake of 9/11, the
U.S.-Armenian military cooperation programs have become a new component of
the Armenian security framework and are fully in compliance with Armenia's
complementary foreign policy. U.S.-Armenian security cooperation involves
periodic discussions of joint action in such areas as combating terrorism,
securing borders, and non-proliferation. The United States military is
providing much-needed assistance to Armenia in training peacekeeping
personnel and demining. Armenia's first platoon of peacekeepers was assigned
to Kosovo in March 2004, completed its duty there in September, and was
replaced by a second platoon of soldiers. Armenian Armed Forces and the
Kansas National Guard have a cooperation program that will further
strengthen the ties between our armed forces.
As part of the Greater Near East region surrounding Iraq, Armenia was and
remains concerned about the situation in Iraq. Armenia hopes that
post-conflict rehabilitation and democratization efforts will promote
stability in the region and help Iraq emerge as a modern, well-governed, and
democratic state that addressed concerns of all of Iraq's social and ethnic
groups. The primary factor guiding Armenia's policy on Iraq in the run-up to
and during implementation of Operation Iraqi Freedom was the presence of a
sizable ethnic Armenian community in Iraq. Iraq is home to approximately
30,000 Armenians, who belong to the Armenian Apostolic and Armenian Catholic
Churches, recently hit in Baghdad. This population is well-established and
highly urbanized; it is primarily engaged in commercial activities.
Recently, the Armenian Government pledged to provide up to 50 non-combat
personnel to join the coalition forces in Iraq.
The United States plays an important role in South Caucasus, in promoting
regional stability. Improving Armenian-Turkish relations is a key toward
that goal. Armenia's renewal of independence was an opportunity to begin a
new era in relations with Turkey, but Turkey's attitude towards the newly
independent Armenia was anything but friendly. Despite Armenian Government's
visionary position, Turkey refused to establish diplomatic relations with
Armenia, closed the borders with Armenia and maintains an economic blockade
of Armenia. Even when Armenia offered the use of its railway network to
transport U.S. military's cargo in the wake of 9/11, Turkey still refused to
cooperate. While Turkey is a member of the OSCE Minsk Group, which is
charged with mediating the Nagorno-Karabakh conflict, it has continuously
used its diplomatic arsenal to undermine Armenia's position vis-à-vis
Azerbaijan. The reality is, economic blockades and exclusions targeting any
country of the region undermine the economic and security potential of the
entire region. That's why Armenia is ready to continue interstate dialogue
with the Republic of Turkey and establish diplomatic relations, with no
preconditions.
An important aspect that influences Armenia's security environment is the
Nagorno Karabakh conflict. The conflict resolution is implemented through
the mediation of OSCE. The United States is a co-chair of the OSCE Minsk
group, and so is Russia and France. Thus, the three co-chairs facilitate
negotiations between parties to the conflict. Nagorno Karabakh conflict
resolution is one of the biggest issues in bilateral relations between
Armenia and the United States.
Without going into historical roots, the conflict in its current form dates
to 1988, when the Armenians of Nagorno-Karabakh - comprising 78% of the
region's population - renewed their demands for self-determination. After
the Soviet Union fell, the just demands of the Karabakh Armenians were met
with brutal force. Armed conflict ended with a cease-fire in May 1994. In
the process, Karabakh Armenians were able to establish a de-facto
independent republic. The unresolved nature of this conflict continues to
affect the regional stability in the Caucasus. The last major breakthrough
in resolution of this conflict came at the initiative of the administration
of George W Bush, in Key West, FL, when Presidents Aliyev and Kocharian came
very close to an agreement guaranteeing a durable settlement. Since then,
Azerbaijan retracted its agreement. The new president, Ilham Aliyev, Heydar's
son, has already held several meetings with Armenian President Kocharian to
try to restart and resolve the issue.
It's important to realize that the ceasefire regime in zone of conflict is
based on the goodwill of all parties, and the war rhetoric can undermine the
confidence in its ability to abide by the ceasefire regime. For its part,
Armenia remains committed to a peaceful settlement of the Nagorno Karabakh
conflict. We hope to be able to move forward with a comprehensive peace
plan, bringing a permanent peace to the people of Karabakh, Armenia, and
Azerbaijan, and securing the stability of the region.
Also in our region, Armenia and its neighbor Georgia share a border and
history, as two native Caucasus people with millennia-long tradition of
statehood, national identity, and struggle for national liberation. Georgia
is an important neighbor of Armenia, all the more so because Armenia's
primary transit route and outlet to sea lies through the Georgian territory.
Armenia enjoys friendly and firm relations with Georgia, enforced by the
presence of a large Armenian community in Georgia. The amicable
Georgian-Armenian relations are one of the pillars of the emerging South
Caucasus security framework.
Security and military cooperation and conflict resolution are by far not the
only issues in U.S.-Armenian relations. I have already said that the basis
for our relations is shared values and principles. The United States has
been a role model for Armenia as it builds a democratic system and civic
society; moreover, the United States has provided crucial assistance to help
Armenia strengthen its democratic institutions and electoral system. The
United States has also encouraged and supported the challenging economic
transition in Armenia, especially in such key areas as energy, economic
legislation, and science and technology.
The history of economic transition in Armenia is not unlike many of its
neighbors. By 1989 Armenia had developed heavy industry, including radio
electronics, defense, and chemical industries. This was a blessing in
disguise, because it allowed a high level of urban employment but made
Armenia completely dependent on the Soviet Union. Cities were built that
depended on one huge plant to provide employment, like Hrazdan,
Charentsavan, Kapan. Pollution and social problems also arose. After the
collapse of the Soviet Union, enterprises that employed thousands of people
are now idle, and the people who worked there found themselves out of job.
The problem of unemployment is especially tough for those with fewer skills.
The Armenian Government and the World Bank estimate that more 50% of
population is vulnerable while 23% live in dire poverty. The Government,
working together with its donors, has adopted a national strategy for
poverty reduction that will stress creation of economic opportunities,
training, and targeted social work to significantly reduce poverty by 2014.
Despite tremendous challenges and the blockade, Armenian economy has grown
since 1994, and we remain optimistic about its future prospects.
As always, economy and commerce are areas that affect the nations the most.
In general, Armenia's economy has posted strong growth rates: nearly 14% in
2003, and 9.6% so far in 2004. Leading Armenian growth industries are
construction, jewelry and diamond processing, and manufacturing, as well as
export-oriented industries. U.S.-Armenian bilateral trade is displaying
strong growth trend. In 2003, Armenian exports to the U.S. grew by 22% over
2002; in January-July 2004, they grew by 61% over the same period in 2003.
Leading Armenian exports to the U.S. are software and IT products, jewelry,
apparel, and processed food. The trade balance is still in favor of the
U.S., but trade, as we all know, benefits both sides. U.S. investment in
Armenia are primarily concentrated in several sectors, including mining,
construction, Information Technologies, and food procession. In fact, one of
the fastest growing sectors of Armenian economy, IT and software
manufacturing, is completely dominated by U.S.-based or U.S.-owned
companies. One of the outstanding issues in the area of trade is a bill
pending in U.S. Congress that will grant Armenia Permanent Normal Trade
Relations status, resulting from Armenia's accession to WTO.
Despite the many accomplishments, we still face numerous challenges in
Armenia, especially in the social sector. In making our dream of a strong,
stable, and prosperous Armenia come true, it is necessary to strive towards
a healthy democratic environment, coordinate our efforts, and display a
common will. In the coming year, the Armenian government will continue to
improve the business environment and reduce tax burden to allow domestic and
foreign business leaders and investors to implement business projects in
Armenia. The revitalization of the Armenian economy requires serious
investments, both domestic and foreign. The presence of foreign companies in
Armenia and creation of new jobs will help the government to finally stem
the outflow of population from Armenia and improve the living standards.
To discuss trade and commerce, as well as issues relating to economy and
U.S. assistance to Armenia, our governments have established a forum called
U.S.-Armenia Economic Task Force, which is an important mechanism of
discussing bilateral issues that affect all sectors of the Armenian economy
in a positive manner. We hope that the U.S. assistance to Armenia will
continue at the same level in the near future. In this regard, we appreciate
Armenia's selection, along with 15 other countries, as potential recipients
of Millennium Challenge Account (MCA) funds. The MCA, a foreign aid
distribution mechanism introduced by the Bush administration, will fund
programs submitted by eligible countries to promote the goals of poverty
reduction and economic development. The Armenian government plans to present
programs based on the Strategic Poverty Reduction Program it is pursuing,
which coincides with the aims of the MCA programs.
We greatly appreciate the U.S. policies aiming to foster greater regional
cooperation and economic interaction in our region, which will promote both
prosperity and security in the region. I remain optimistic about the future
of our region. The stabilization and democratization of Iraq, progress in
the Middle East peace process, peaceful settlement of the Nagorno Karabakh
conflict and Turkey's positive engagement in South Caucasus are all
plausible, not merely theoretical constructs, and they can unlock the
potential of greater cooperation between the countries of South Caucasus and
the Middle East.
Thank you.