It is a great honor for me to welcome you to Yerevan for the 11th Meeting of BSEC Foreign Ministers.

This is the first time I participate in these meetings as Foreign Minister. I wish to take this opportunity to reaffirm that progress and increased effectiveness in BSEC processes are key foreign policy commitments for Armenia.

We view the BSEC as an important element in the social and economic growth of our countries, in the reinforcement of mutual confidence and goals, in promoting good-neighborly relations in our region, in assuring stability and security, as well as integration with European structures.

The recent period has had its unique place in the six-year history of the BSEC. The preparatory activities in connection with the signing of the BSEC Charter Agreement are completed and we will preliminarily sign it today. I donղt want to repeat the essential importance of transforming the BSEC into a regional organization, but I must say that with the signing of the Charter by the members of the BSEC in Yalta in June, and with its approval by national parliaments, the Black Sea process will take a distinct qualitative step forward.

The other recent important development was the official opening of the Black Sea Trade and Development Bank - the BSEC's leading financial institution - in Thessaloniki in February this year.

Although not all members have thus far fulfilled their financial obligations, nevertheless, everything is set for the bank to operate and I believe that the preparatory stage will be completed by the end of this year.

We have often spoken about advancing effective cooperation in the energy sector. A meeting of BSEC energy ministers was held in Yerevan just two weeks ago. At that time, all countries signed the memorandum on energy-related cooperation as well as the terms of reference for planning the future integration of regional energy systems.

It is very important that a preliminary outline for such integration and the ways in which the technical and economic applications of such integration will be financed are clarified at the start. I am confident that cooperation in this arena will progress quickly and will reach its logical conclusion.

During the April 1996 session of the BSEC interior ministers here in Yerevan, there was much discussion about a united and coordinated crime prevention effort. Today, that cooperation has moved forward dynamically, as evidenced by the second meeting of interior ministers in Istanbul, and the March meeting of experts in Athens.

At the same time, I must duly note and welcome the advances which have taken place in the region in cooperation in the areas of civil emergency planning and decreasing the effects of natural and technological disasters. A multilateral agreement was signed to that end on April 16 in Sochi by the BSEC ministers whose purviews include emergency planning.

I must also stress that there is progress towards the creation of a BSEC free trade zone. During a working meeting in Yerevan in February, the BSEC Trade and Economic Development working group developed a plan of action for the creation of a free trade zone. I am certain that after further editing, that document will be presented to the BSEC Foreign Ministers for their approval at our next meeting.

It is essential to continue to focus on cooperation among the region's businessmen. That this kind of effort should be a priority is self- evident. The restructuring of the BSEC Business Council was, justifiably, the fundamental item on the BSEC Business Council Board's agenda when it met in Yerevan in April.

It is essential that better interaction be ensured between different BSEC bodies, with better coordinated rotating presidencies and more interoperability between the BSEC and PABSEC, as well as harmonization of the efforts of the Chairman-in-Office and the PERMIS.

We welcome the increasing interest by the members of the European Union in BSEC activities. France's application to join the BSEC with observer status is an excellent example of this interest. It is important that the BSEC further develops toward transcending the purely economic sphere and, given the fine line between the economic and political dimensions, facilitate the Participating Statesղ membership and integration in other multilateral forums, and firstly, the European Union. It is equally important that the BSEC assumes an appropriate and complementary role in the emerging architecture of cooperative institutions from the Atlantic to the Urals.

At the same time, we cannot help but note that the matter of BSEC expansion is one of the difficult issues affecting its development. The member states of the BSEC have differing opinions on this issue. After the Charter signing, I believe it would behoove us to hold meetings at various levels and develop a unified approach to the issue of BSEC expansion.

The dynamics of the BSEC processes should be targeted at strengthening the BSEC's position within the European and international structures, increasing its weight in the international arena, and securing a stronger political commitment by the Participating states towards these objectives. Efficient and effective cooperation among the Black Sea countries will help to consolidate the strategic economic potential inherent in this area, promote free trade, open our roads and other communications, foster the welfare of our peoples thus stimulating the peaceful settlement of existing political disputes and reinforcing the independence, and sovereignty, and democratic development of our states.

Europe has fundamentally changed, just as its new geographic and political parameters have. We strongly believe that the Black Sea area as a unique security environment should consolidate as an inseparable part of the common European security space. We call upon all the BSEC founding members to contribute to such regional consolidation by engaging themselves at three parallel levels: direct political dialogue, enhanced partnership, and efforts aimed at establishing and implementing a sound future-oriented regional cooperation agenda.

To take up this challenge, and to advance our common safety, cooperation and prosperity objectives, an active engagement on the part of all responsible members of the Black Sea community, and their cooperative effort are critically important. By combining the interests of all of us and at all levels, we will be able to enter the new 21st century on the basis of stability, security and shared fundamental values.