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Remarks by Ambassador Arman Kirakossian

REGIONAL STABILITY AND PIPELINE SECURITY

CSIS Forum
Washington, DC

December 6, 2000

First of all, I would like to thank the CSIS for organizing this important forum on the South Caucasus region. Armenia welcomes this meeting, as another opportunity for the representatives of the Caucasus countries, as well as those of our partners that are directly involved in our region, to meet and discuss issues of mutual interest.

I am privileged to represent the official position of Armenia on the political and economic development in South Caucasus, regional integration and security affairs, and stability of the larger Caucasus region.

Ten years ago, the citizens of Armenia made a deliberate choice by voting for establishment of a democratic independent state. Armenia stands committed to building a stable, open, economically prosperous, and socially progressive society, and implementing the necessary yet challenging democratic, economic, and legal reforms. These goals are not solely commitments or ideological beliefs. I believe it is also a very pragmatic approach because, unlike its neighbors, Armenia lacks significant natural resources and has to pursue liberal trade policies. In the past decade, Armenia has shown a remarkable national cohesion and a sense of direction. Even under the most trying circumstances, in the aftermath of the terrorist act in the Armenian parliament, when the Prime Minister and the Speaker of the Parliament perished, the Armenian society did not disintegrate and the situation eventually stabilized.

Following the collapse of the Soviet Union, Armenia entered the world stage with a set of geopolitical realities and challenges stemming from the changing nature of the world politics, specific problems and constraints of the Caucasus region, as well as certain historical events. We acknowledge that the responsibility for the political, economic, and security affairs in the South Caucasus region lies primarily with Armenia, Azerbaijan, and Georgia. At the same time, the regional powers also have legitimate concerns and interests in the region, with the varying degree to which the region directly affects the national interest of those powers. It is clear that the immediate neighbors of the South Caucasus countries, Russia, Turkey, and Iran, as well as the United States have a stake in ensuring stability and long-term development of the region, and development of its economic resources. We also acknowledge that the European Union views this region as the political if not cultural extension of the European region. Armenia, Azerbaijan, Georgia, as well as Turkey and Russia aspire to join the European institutions. The interactions between the regional powers and countries of the region, the ever-competing and interdependent nature of many of such interactions, and the complex history of the region are the foundation on which the security of the South Caucasus region resides now.

Regional conflicts present a threat to stability and economic development of the whole region. Nagorno Karabakh conflict is perhaps the most complex and unresolved issue in the South Caucasus, and certainly the oldest, at thirteen years and counting. The cease-fire has been in effect since May 1994, and the parties have been in search of a peaceful settlement ever since. Armenia is committed to a peaceful solution of the conflict, which will guarantee security and well being of the people of Nagorno Karabakh. We realize that the settlement will have to involve serious compromises by all parties.

We welcome the leading role of the OSCE Minsk Group Co-chairs in helping the parties negotiate such a settlement. The most recent proposal that the Minsk group submitted to the parties was the so-called "common state" proposal in November 1998. This was a carefully crafted and very complex compromise between the principles of territorial integrity and self-determination. Unfortunately, it was rejected by Azerbaijan, which failed to meet halfway the concessions that Armenia and Nagorno Karabakh were prepared to make.

The only positive dynamic since then is a series of meetings between the Presidents of Armenia and Azerbaijan. Presidents Kocharian and Aliyev last met on December 3, in Minsk, during a CIS Heads of State Summit. We believe that this dialog is important as it reiterates on the highest level the commitment of the leadership of both countries to a peaceful settlement of the conflict. Armenia welcomes and supports the efforts of international mediators to resolve this conflict, but we realize that parties to the conflict must make the ultimate decision.

Another impediment to the establishment of a sound security system in the South Caucasus region is the unresolved nature of the Armenian-Turkish relations. This asymmetry is unique because no other two countries in this region have such an antagonistic relation with neighboring powers. Russia has diplomatic relations and embassies in all three South Caucasus countries. Indeed, President Putin will soon visit Baku with an official visit, the first presidential visit by a Russian head of state to this region. The United States enjoys good relations with Armenia, Azerbaijan, and Georgia, and so does Iran. Turkey is the only country that has refused to establish diplomatic relations with Armenia, and has not attempted to even pretend to be even-handed. It closed its border with Armenia since 1993. Most recently, they tightened the visa issuance requirements for the Armenian citizens.

This is unfortunate because the re-establishment of an independent Armenia in 1991 presented a fresh opportunity to smoothen the historical antagonism between the Armenian people and Turkey. Armenia has on numerous occasions offered to establish normal relations with its neighbor Turkey without any preconditions. These overtures have been turned down on many occasions. This is not a question of who needs whom more. As long as the last section of the Iron Curtain, the Turkish-Armenian border, remains closed, this will impede development of the Caucasus region, will introduce a constant element of instability, and will prevent the integration of all countries of the region into the European institutions. We also look forward to the positive role the United States can play in helping Armenia and Turkey find common ground for a dialog. We also hope that Turkey, as a responsible member of the OSCE, will honor its own commitments under the Helsinki Final Act and the Istanbul Document for Common and Comprehensive Europe for XXI Century, and will demonstrate adequate political will to help remove obstacles to regional integration in the Caucasus, just as they expect others to act similarly.

Armenia, as any other sovereign nation, is free to determine its national security priorities, its defense arrangement, and mode of cooperation with other nations, as long as its security is not augmented at the expense of any other nation. In this regard, Armenia has a defense cooperation with Russia, including a Russian military presence, which, of course, is not aimed against any third country. This cooperation is based on shared interests of both countries, and is fully consistent with geopolitical and humanitarian standards of the Caucasus. There is no exclusivity in the Russian-Armenian military cooperation, and there is no single reason to explain it. Rather, it is the prevailing security environment in the absence of any other viable alternatives that strongly suggests such cooperation. Such cooperation is consistent with and respectful of the principles and provisions of all existing arms control and verification agreements that Armenia has signed, including the cornerstone of the European security - the CFE Treaty.

We are also engaged in partnership activities with the NATO through its PfP program. We appreciate our relations with NATO and we will continue to work to expand them, as well as pursue our cooperation with individual NATO members to develop serious cooperation in security- and defense-related matters, in such a manner that best serves our interests. NATO has been our neighbor for the past 50 years, and its critical role in helping maintain responsible security relationships is hard to discount. In general, European security arrangements define Armenia's broad security priorities. Yet that framework does not constitute an exclusive browser through which the overall security environment can be explored in our region.

Another phenomenon for our region is Iran. Iran has its own gravity and potential, from which the Caucasus countries cannot be objectively exempt. Iran has demonstrated a responsible policy on the South Caucasus countries. Iran has legitimate interests in our region and has pursued them in a responsible way, with utmost respect for internal affairs of each country. Armenia shares a common border with Iran, and has good economic and commercial links with that country.

Armenia enjoys friendly and firm relations with Georgia, enforced by the presence of a large and well-established Armenian community in Georgia. The amicable Georgian-Armenian relations will be one of the pillars of the emerging South Caucasus security framework.

Now, let me acknowledge the title of today's forum and the address the issue of pipelines. I have described a few of the security problems that beset the long-term stability of the Caucasus. Once these obstacles disappear or their impeding value is reduced, the Caspian Sea oil and gas resources are bound to benefit all countries and peoples of the region. Although Armenia is not an oil producer and its chances for participation in any of the current Caspian Sea oil and gas transit schemes are dormant, we can clearly see how the diversified oil and natural gas supply routes can benefit the entire region. Armenia is also trying to diversify its energy sector, including the natural gas supply routes, to address its energy security concerns. The countries of the South Caucasus region have a common stake in the development of the energy resources in the Caspian Sea region. Azerbaijan is potentially a major oil and gas producer, Georgia is a transit country, while Armenia is a net regional exporter of electricity. There is a huge potential for development should the obstacles to regional integration and cooperation be overcome. We believe that the physical location of the pipeline is not as important as the infrastructure and the opportunities it creates for all countries of the region, including Armenia. Without commercial viability, no pipeline will be easy to construct, and Armenia is certainly not excluding itself from the benefits of commercial access to these natural resources.

In the end, let me sum up the points I have made. Armenia sees development of an open, free market democracy based on rule of law and liberal trade policy as major priorities. We want the South Caucasus region to have the stability and the regional cooperation necessary for its political and economic development. We acknowledge that without effective involvement of our immediate neighbors - Russia, Turkey, Iran, as well as the the United States and the European Union, the prospects for realizing our region's potential will be limited. We advocate and encourage active participation of our partners and friends in helping us propel our region into the community of prosperous and secure societies. The materialization of this vision is the only viable guarantee of peace and stability in the Caucasus and the surrounding region.

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