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.