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ARTSAKH NEWSLETTER
Vol. 8, no. 1
April-May, 2006

The ARTSAKH NEWSLETTER is a publication of the NKR Office in Washington,
D.C., the official representation of the Nagorno Karabakh Republic in the
United States.

In this issue...
1. NAGORNO KARABAKH PEACE PROCESS UPDATE
2. STRONG CONGRESSIONAL SUPPORT OF KARABAKH CONTINUES
3. ARMENIANS AROUND THE WORD RALLY IN SUPPORT OF ARTSAKH DEVELOPMENT
4. KARABAKH DEPUTY FM CALLS FOR NKR RECOGNITION DURING US VISIT
5. PRESIDENT GHOUKASIAN APPOINTS NEW CABINET MEMBERS
6. NKR TAKES ANOTHER STEP TOWARD STRONGER DEMOCRACY
7. KARABAKH'S STRONG ECONOMIC GROWTH CONTINUED IN 2005
8. SECOND ANNUAL CHESS TOURNAMENT IN ARTSAKH A SUCCESS
9. AZERBAIJAN'S ETHNIC CLEANSING CAMPAIGN OF 1991 REMEMBERED


1. NAGORNO KARABAKH PEACE PROCESS UPDATE

International mediation efforts continued over the past year to overcome the impasse in the Karabakh peace process. While there has been a notable increase in mediator activity, no major breakthroughs took place. More than in the past, mediators have also focused on efforts to prevent a possible armed escalation in and near Karabakh.

Full-fledged negotiations with participation of the Nagorno Karabakh Republic have yet to take place. NKR President Arkady Ghoukasian met with the OSCE Minsk Group Co-Chairs in July and again in December 2005. Ghoukasian and other Nagorno Karabakh officials reiterated their readiness to take their share of responsibility on the road to peace. Azerbaijan, however, continued to refuse direct talks with NKR.

High-Level Consultations with NKR Leadership Aim
to Advance the Peace Process

President Ghoukasian met with the OSCE Chairman-in-Office and Foreign Minister of Slovenia Dimitrij Rupel in March and September 2005, and his successor at the OSCE, Belgian Foreign Minister Karel de Gukht in January 2006 to discuss the peace process. Last March, the NKR President also met with the European Union (EU) envoy for the Caucasus, Ambassador Peter Semneby of Sweden. Semneby repeated the EU position that "efforts to establish the regional cooperation should be developed in parallel with the efforts to resolve the conflicts." While NKR and Armenia support this position, Azerbaijan continued to oppose any steps towards confidence building.

In April 2005, mediators from France, Russia and the United States, working under the OSCE umbrella, consolidated a series of discussions held by Foreign Ministers of Armenia and Azerbaijan (dubbed the "Prague Process") into what mediators described as "new proposals." Presidents Robert Kocharian and Ilham Aliyev met in Poland (May 2005), Russia (August 2005) and France (February 2006) to discuss these proposals. Although the first two meetings fueled some optimism that progress could be made, the latest summit ended in what U.S. and other officials described as a "disappointment." Despite this setback, the mediators are trying to salvage the process by injecting what they describe as "new ideas" to complement the proposals currently on the table.

Azerbaijan Refuses to Build Trust; Threatens to Launch a New War

In the meantime, Aliyev and other government officials in Baku continued to threaten war unless Azerbaijan's demands are satisfied. Aliyev diverted much of the country's growing oil revenue to military needs, doubling defense spending in 2006 to $600 million. Both Karabakh and Armenian officials, as well as international mediators, dismissed this rhetoric and reminded Azerbaijan of potentially catastrophic consequences if fighting were to resume. Twice since April of last year, mediators issued statements demanding an end to war rhetoric and calling on all sides to help prepare the public for a "balanced negotiated settlement." While both Karabakh and Armenian leaders repeatedly argued for a need to compromise, Aliyev and others in the Azerbaijani government continued their hard line approach. Since last year, the NKR Foreign Ministry has suggested a set of measures that would strengthen the nearly 12-year-old cease-fire, but Azeri officials have shown no interest in precluding occasional flare-ups along the Line of Contact.

Azerbaijan's official rhetoric and actions appear to aim at securing unilateral Armenian concessions and perpetuating the conflict rather than reaching a viable peace agreement. Azeri officials have encouraged a campaign of support for an Azeri who brutally murdered an Armenian in his sleep, whilst both were attending an English-language course in Hungary. Last December, Azeri soldiers were videotaped destroying the remnants of ancient Armenian stone-crosses (khachkars) in Nakhichevan, one of the few Armenian monuments still standing in Azeri-controlled territory at the time. That act of vandalism coincided with Aliyev's call on Azeri scientists to rig the historical record to erase references to Armenians. The Azeri government has sought to shut down nascent public diplomacy contacts with Armenians through harassment and violence, branding Azeri peace activists as traitors. At the same time, domestic critics of the Aliyev regime are labeled as Armenian agents.

Aliyev has repeatedly stated that he is in no hurry to settle the conflict and would prefer the current status quo to steps that would formalize Karabakh's existing separation from Azerbaijan, a necessary element of any viable peace deal. The international community has increasingly realized the inevitability of this approach. In August 2005, the OSCE Parliamentary Assembly heard a report from its Rapporteur on Karabakh, Goran Lennmarker of Sweden, who observed that Karabakh's unification with Armenia would be the best guarantee of its population's security. None of the twenty-four U.S. and Western European experts queried in the summer 2005 could see a possibility of Azeri jurisdiction over Karabakh. The Brussels-based International Crisis Group recommended in October 2005 that Karabakh's status should be based on a "self-determination referendum." And in March 2006, U.S. Assistant Secretary of State Daniel Fried stressed that "the will of the people of Karabakh has to be respected" as part of any settlement.

Karabakh Has the Right to Remain Free

Karabakh officials have welcomed this approach of the international community, while sharing its interest in regional stability, cooperation and peace. Nagorno Karabakh remains committed to work constructively to achieve these goals through maintaining and strengthening the 12-year-old cease-fire, building mutual confidence and reaching a peaceful settlement in the Karabakh conflict. Any viable settlement must respect the right of the Nagorno Karabakh people to determine their own future and the way of life.

2. STRONG CONGRESSIONAL SUPPORT OF KARABAKH CONTINUES

The Nagorno Karabakh Republic marked the fourteenth anniversary of its independence last year. Fifty-nine members of the U.S. House of Representatives addressed a letter to President George W. Bush, calling attention to "the important progress being made by the people of the Nagorno Karabakh Republic, Artsakh, towards freedom, peace and prosperity."

The congressional letter noted that: "A de-facto independent state, the Nagorno Karabakh Republic is a country of proud citizens committed to the values of freedom, democracy and respect for human rights. We, as Americans cherish and defend these same values at home and internationally. . . Above all, the Unites States should unequivocally support the right of the people of Nagorno Karabakh to decide their own future."

On September 28, 2005 the Office of the Nagorno Karabakh Republic together with the Embassy of the Republic of Armenia, the Armenian Assembly of America, the Armenian National Committee and the Co-Chairs of the Congressional Caucus on Armenian Issues hosted a Capitol Hill event celebrating NKR's independence.

Member of the British House of Lords Baroness Caroline Cox, who was the keynote speaker at the Capitol Hill event and had just completed her 60th humanitarian trip to Artsakh, urged the international community to respect the rights to freedom, justice, and democracy of the people of Nagorno Karabakh. Cox said that "if any people in the world today deserve the right to self-determination and the recognition of independence, it is the people of Nagorno Karabakh."

Representatives Joe Knollenberg (R-MI), Frank Pallone (D-NJ), George Radanovich (R-CA), Barney Frank (D-MA), Maurice Hinchey (D-NY) and Adam Schiff (D-CA) spoke at the event, expressing their support for the Nagorno Karabakh Republic.

Armenian Ambassador to the U.S. Dr. Tatoul Markarian noted that "any solution to the [Karabakh] conflict will be based on the fact and the right to self-determination of the people of Nagorno Karabakh."

NKR Representative Vardan Barseghian thanked the U.S. government and the American people for their humanitarian support for Artsakh and urged them "to continue to support the aspirations of the Karabakh people to live in freedom, security and prosperity."

3. ARMENIANS AROUND THE WORD RALLY IN SUPPORT
OF ARTSAKH DEVELOPMENT

Last November, NKR President Arkady Ghoukasian, Parliament Speaker Ashot Ghoulian and Artsakh Diocese's Primate Archbishop Pargev Martirosian were in the United States to participate in the Hayastan All-Armenian Fund's drive to secure support for the development of Karabakh's Mardakert region. NKR delegation, joined by Armenia's Foreign Minister Vartan Oskanian, helped the Fund raise $7.75 million throughout the Diaspora communities and in Armenia proper.

Hayastan Fund's development project, named "Revival of Artsakh," comes as its previous major undertaking, a 105-mile highway, is nearing completion. The Fund chose to focus on Mardakert, as the region had suffered the most during the 1992-94 fighting. On behalf of the people of Artsakh, President Ghoukasian thanked Armenian communities in the United States and around the world for their continued steadfast support for the Nagorno Karabakh Republic. He stressed that much has been done in Artsakh, noting, however, that many more humanitarian and development projects require the Diaspora's support.

The Hayastan Fund has raised over $100 million since the mid-1990s for development of Armenia and Nagorno Karabakh.

4. KARABAKH DEPUTY FM CALLS FOR NKR RECOGNITION DURING US VISIT

On March 22-29, NKR Deputy Foreign Minister Masis Mayilian paid a working visit to the U.S. Mayilian met with the U.S. government officials, members of Congress, state officials, and leaders of the Armenian-American community. He thanked both U.S. officials and members of the Diaspora for their continued support of NKR, both through U.S. humanitarian assistance and privately-funded projects.

Mayilian also spoke on Karabakh's priorities at the National Conference held by the Armenian Assembly of America and public lectures at the University of Connecticut and the Center for Strategic and International Studies (CSIS) in Washington, DC. At CSIS, Mayilian focused on the need to: a) strengthen the existing relative peace; b) increase the international role in solidifying NKR's achievements in democratic development; and c) take steps towards NKR's international recognition.

"The lack of [international] recognition is one of the main reasons why we hear militaristic rhetoric from Azerbaijan. The United States should take the lead in helping Azerbaijan to reject Stalin's legacy and come to terms with the democratically expressed will of the Nagorno Karabakh to remain free," said Mayilian.

(Read more on Deputy Foreign Minister's
visit at www.nkrusa.org/news/daily_news.php)

5. PRESIDENT GHOUKASIAN APPOINTS NEW CABINET MEMBERS

President Arkady Ghoukasian announced four new cabinet appointments (* appears before the position that saw change):

Prime Minister - Mr. Anoushavan Daniyelian
Vice-Prime Minister - Mr. Ararat Daniyelian**
Minister of Agriculture - Mr. Vahram Baghdassarian
Minister of Defense - Lt. Gen. Seyran Ohanian
* Minister of Education, Culture and Sports - Mr. Kamo Atayan
Minister of Finances and Economy - Mr. Spartak Tevossian
* Minister of Foreign Affairs - Georgi Petrosian
Minister of Health - Mrs. Zoya Lazarian
Minister of Justice - Mr. Robert Hayrapetian
* Minister of Social Security - Mr. Vasili Atajanian
Minister of Territorial Administration & Infrastructure Development - Mr. Armo Tsatourian
* Minister of Urban Development - Mr. Marat Hacopjianian
Chief of Staff, Minister - Mr. Suren Grigorian
Head of National Security Service - Mr. Bako Sahakyan
Head of Police - Mr. Armen Isagulov
Head of State Tax Service - Mr. Hakob Kaghramanian
President Ghoukasian also appointed a new NKR Prosecutor General, naming Mr. Armen Zalinian, his former Chief of Staff, to the post.

** not related to the Prime Minister

6. NKR TAKES ANOTHER STEP TOWARD STRONGER DEMOCRACY

On June 19, 2005 NKR held a tightly contested parliamentary poll, its fourth since the independence. Seven political parties and blocs competed for eleven seats awarded through proportional representation and 127 individual candidates ran in 22 electoral districts. Over 100 foreign observers, most of them from the United States and the European Union monitored the vote. The observers found the vote, in which 75 percent of the eligible electorate took part, to be "free and transparent" and concluded that "Nagorno Karabakh has made demonstrable progress in building democracy."

The Democratic Party of Artsakh (AZhK), which is the main political support base for the incumbent President Arkady Ghoukasian, won twelve seats in the new National Assembly (AZhK controlled 20 out of 33 seats in the former parliament). The right-of-center Free Motherland Party (AHK) led by businessmen Araik Harutiunian and Rudolf Hiusnunts, and professors Arpat Avanesian and Artur Tovmasian came in second, winning ten seats. The opposition alliance of the Armenian Revolutionary Federation (HHD) and Movement-88 party led by retired General Vitali Balasanian and journalist Gegham Baghdasarian came in third, winning just three seats. The remaining eight seats were won by candidates unaffiliated with political parties. By a majority vote, the AZhK Chairman Ashot Ghulian was elected Parliament Speaker. Ghulian previously served as Education (2004-5) and Foreign Minister (2002-4).

(Read the Report of the Independent American Election Monitoring Delegation at www.nkrusa.org/hot_topic/election_monitoring.shtml)

7. KARABAKH'S STRONG ECONOMIC GROWTH CONTINUED IN 2005

Karabakh's economy continued to expand in 2005, with the Gross Domestic Product (GDP) up 14 percent for the year to 51.4 bn. AMD ($114 million) and more than double the 2001 volume of 23.8 billion AMD ($53 million). Strong growth in capital construction (37.8%) and continued increase in the output of the Drmbon copper-gold mines helped fuel the growth.

Drmbon mines, developed with $15 million in investments since 2002, are the largest enterprise in Karabakh, employing over 900 people. As of late 2005, 36,500 people were employed in civilian jobs in the republic with a population of about 134,000. Most of the civilian workforce is engaged in agriculture (22 percent), trade (20), construction (12), industry (11) and communications (11). Overall in 2005, there was an eight percent increase in employment over 2004, with population's incomes increasing by 20 percent and monthly salaries by 24 percent.

According to the Nagorno Karabakh Foreign Ministry consular data, over 4,000 foreign citizens, most of them tourists, visited Karabakh in 2005, an increase of 30 percent over 2004. The bulk of the visitors came from U.S., Canada, Russia and France. Karabakh's foreign trade grew by 15 percent, reaching $133.1 million in 2005.

On December 12, 2005 NKR National Assembly by a vote of 26 to 3 adopted the FY2006 budget bill and on December 20, President Arkady Ghukasyan signed it into law. The budget set the 2006 revenue target at 26.1 bn. AMD ($62.47 million) and expenditures at 30.3 billion AMD ($67.36 million).

The NKR state budget has been steadily increasing for the past four years at an average annual rate of 30 percent.

8. SECOND INTERNATIONAL CHESS TOURNAMENT IN ARTSAKH A SUCCESS

In October 2005, Nagorno Karabakh hosted a ten-day international chess tournament which brought together some of the world's leading chess players. The event sponsored by the Karabakh government and the Chess Academy of Armenia involved two dozen players from 11 countries. Aram Hajian of the Chess Academy noted that "there has never been a tournament of this strength held anywhere in the Caucasus... It's one of the top chess events happening this year anywhere in the world."

The event included such players as Vassily Ivanchuk (Ukraine), Alexey Dreyev (Russia), Hikaru Nakamura (USA) and Bu Xiangzhi (China). Also present was a former chess heavyweight, Lajos Portisch of Hungary. In the end, Armenia's rising chess star Levon Aronian won the top prize, with the second and third places shared by Nakamura and an Armenian grandmaster, Ashot Anastasian.

This was the second international chess event hosted by Karabakh. The fist took place in March 2004 and was dedicated to the 75th birth anniversary of the late world champion Tigran Petrosian, and featured another former world champion Boris Spassky.

For more information about chess in Karabakh
visit www.karabakh2005.com.

9. AZERBAIJAN'S ETHNIC CLEANSING CAMPAIGN OF 1991 REMEMBERED

This month marks the fifteen anniversary of a barbaric ethnic cleansing campaign that was undertaken by the Azerbaijani government and resulted in over 100 people killed and thousands displaced. Known as Operation Ring, it was carried out with direct participation of the Soviet army units, while both Azerbaijan and Nagorno Karabakh were still part of the Soviet Union. The Operation came after Azerbaijan's Communist leadership endorsed the preservation of the Soviet Union, while Armenia and Karabakh refused to do so.

The operation marked a significant escalation for the conflict that emerged as a violent response on the part of Azerbaijani to a peaceful civic movement by Karabakh Armenians. Following the massacres and forced expulsion of hundreds of thousands of ethnic Armenians from Azerbaijan, the Azeri internal troops attacked and depopulated twenty-four Armenian villages in Karabakh in the period between April and August 1991. The inhabitants were expelled, their property looted and homes expropriated or destroyed.

The United States Congress, as well as human rights groups condemned this campaign. Azerbaijan's efforts to use Soviet troops to remove Armenians from Karabakh came to a halt when official Baku lost the support of the Soviet security establishment, whose leaders were arrested in a failed coup attempt against the Soviet President Mikhail Gorbachev in August 1991.

Having lost Moscow's support, Azerbaijan declared independence from the Soviet Union paving the way for the declaration of the Nagorno Karabakh Republic's independence on September 2, 1991. While the 1991 Operation Ring failed, it set the stage for renewed Azerbaijani aggression against Karabakh the following year. It also left Karabakh Armenians with a stark choice: to fight for their survival or be wiped out.

(To learn more about Operation Ring, please contact our office in Washington, DC or the NKR Foreign Ministry at info@mfa.nk.am)

* * *

The Office of the Nagorno Karabakh Republic in the United States is based in Washington, DC and works with the U.S. government, academia and the public representing the official policies and interests of the Nagorno Karabakh Republic.

This material is distributed by the Office of the Nagorno Karabakh Republic in the United States (NKR Office) on behalf of the government of the Nagorno Karabakh Republic. The NKR Office is registered with the U.S. government under the Foreign Agent Registration Act. Additional information is available at the Department of Justice, Washington, D.C.

 

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