Ambassador Arman Kirakossian's New Year 2003 Address to the
Armenian-American Community

Dear compatriots,

On the happy occasion of the New Year and Armenian Christmas, I am delighted to extend to you my best wishes for happiness, every success and
well-being in 2003.

At the dawn of the new year, it is important to look back at the achievements and successes, and ponder the challenges our nation has faced in 2002. The year 2002 was a year of economic growth in Armenia, with 12.5% GDP growth rate, 50% rise in exports, 16% growth of industrial production, and a 42% growth in construction. A significant part of the new construction activities was financed by the Lincy Foundation of Armenian American
Kirk Kirkorian. Jewelry production grew by 200% while 53 diamond-polishing companies exported $150 million worth of diamonds from Armenia. The foreign investment in Armenia grew by 12%.Major privatization projects were inaugurated in Armenia in 2002, including the electricity distribution network, which is now managed by the well-established international firm Daewoo Engineering. Leasing the Zvartnots International Airport and the "property for debt" deal with the Russian Government were other successful examples of engaging foreign businesses in the Armenian economy .Armenia's accession to the World Trade Organization was perhaps one of the most important events for the Armenian economy in the recent decade.
Armenia's integration into the global market is a top priority, and the WTO accession came as a result of arduous and consistent efforts by the successive Armenian governments. The accession is important not only for bringing Armenia closer to the global trading patterns or for its symbolic value for Armenia's political and economic image, but also for augmenting the Armenian economic legislation and thus improving the business climate in the Republic.

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.

Further development of Homeland-Diaspora relations is of utmost importance to the implementation of the strategic objectives of the Armenian people, which are to build a strong, economically successful, stable, and democratic homeland where justice and progress rule supreme and to strengthen the Armenian identity and culture in the Diaspora. The Second Armenia-Diaspora Conference that was held in 2002 stood out for the number of participants and practical substance of the discussions. We hope that the Second Conference will deepen the cooperation and collaboration between the Homeland and the Diaspora.

The year 2002 was a year of stability in Armenia's domestic politics, which is the guarantee of the Homeland's general development. As we hold the presidential and parliamentary elections in 2003, let us all hope that the electoral process will be distinguished by its peaceful and democratic conduct and will further strengthen the domestic stability in Armenia.

U.S.-Armenian relations progressed normally in 2002, and as before, can be characterized by mutual respect and understanding. U.S.-Armenian cooperation in political, economic, and military fields continued to develop.

Armenian Foreign Minister, Foreign Ministry officials visited the United States to conduct bilateral political and security dialogue with the Administration officials. Significant and qualitative upgrade in U.S.-Armenian military cooperation was marked by the visit of Armenian Defense Minister to the United States last March and the $4.3 million military assistance program extended to Armenia by the United States Congress. 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.

Armenia continued to contribute effectively to and cooperate in the international fight against terrorism by opening its airspace to the U.S. and coalition aircraft, sharing intelligence and providing other tangible assistance. The United States Government has expressed its gratitude to Armenia for provided assistance and cooperation on numerous occasions.

While no real progress has been made in Nagorno Karabakh conflict settlement in 2002, the United States, in its capacity as co-chair of the OSCE Minsk Group, continued its positive engagement in the negotiations between the parties to the conflict to secure a compromise solution to this problem.

Meanwhile, the construction of the North-South highway in Artsakh continued with great speed, as the telethon held in Los Angeles with participation of the newly-reelected President Arkadi Ghukasian raised more than $5 million for this strategically important road.

U.S.-Armenian Economic Task Force (USATF) held two sessions in 2002, with its agenda including a range of issues such as Armenia's accession to the WTO, bilateral economic cooperation, Armenia's macroeconomic stability and fiscal policy, Armenian government's efforts to stem corruption, coordination of U.S. humanitarian and technical assistance to Armenia,
earthquake zone development, and other subjects of mutual interest. USATF 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.

The United States, including the State of California, are an important market for the Armenian products; in fact, the U.S. is Armenia's fifth largest trading partner. Armenian exports to the U.S. equaled $25.5 million in January-October 2002, an impressive statistics for Armenia, yet we continue to work to improve the trade regime for Armenian products. The Armenian American Chamber of Commerce organized another exhibit of the Armenian products in Glendale, CA in September 2002, under the auspices of the Armenian Consulate General, with more than 70 participants representing a range of industries from Armenia. The number of participants nearly doubled compared to the first exhibit in 2001. The State of California passed a legislative decision to open a California Regional Trade Office in Yerevan, and we hope that it will be opened in the near future.

The Armenian American community, as one of the most politically active, influential, and patriotic segment of the Diaspora continued to play an important role in supporting the homeland and advancing the Armenian agenda in 2002. On this occasion, I would like to thank the Armenian American political, lobbyist, charity, and cultural organizations and associations,
the Armenian Apostolic Church of America, other Armenian religious groups and denominations, business leaders, media, individual benefactors and community members for their invaluable support in strengthening U.S.-Armenian relations, defending the interests and dignity of our Homeland Hayastan, humanitarian and pro-Armenian work, as well as for the
constant support of and assistance to the Armenian diplomatic missions in the United States.

On behalf of the Embassy and my family, I wish you a Merry Christmas and a healthy, prosperous, peaceful and happy New Year.