Welcoming remarks

Throughout 1998 Armenia has taken decisive practical steps towards enhancing its relations with Europe, both at the bilateral and multilateral levels, as well as the political, economic and other levels. All our efforts have been directed to firmly securing Armenia's place in Europe and bringing it closer to the core of European integration and co-operation. Now that we have reached our year end assessment, we are happy to conclude with confidence that our relations with Europe have been mostly to our satisfaction.

Armenia's relations with the European Union, both at the level of the Commission and with its individual member states, take primary importance in our foreign policy agenda. Throughout the current year we have maintained successfully a continuous dialogue at all levels. The visit of Commissioner Hans van den Broek certainly was among the more pivotal events of the year. Similarly, the visit of the European Parliamentary delegation earlier this year contributed significantly to the active maintenance of dialogue between Armenia and the EU. For my share, my visits to Bonn, Rome, Paris and Vienna and the meetings held with my distinguished colleagues, Messrs. Klaus Kinkel, Lamberto Dini, Hubert Vedrine and Wolfgang Shossel provided valuable additional opportunities to discuss matters pertaining, not only to bilateral issues between Armenia and these particular states, but also to issues impacting our relationship with the union as a whole.

It has been extremely important for us to raise the awareness of the European business community to the business and investment opportunities in Armenia. To that end, the Prime Minister Armen Darbinian, chaired a seminar in Amsterdam last month. This was the first major governmental attempt to introduce Armenia as a potential business partner to Europeans. We intend to continue and add new impetus to such dialogue and actions in 1999.

The coming year will be significant in terms of reshaping our contractual relations with the Union. The conclusion of the ratification process of the Partnership and Co-operation Agreement will allow us to broaden our current relations into a more cooperative framework. We look forward to hearing from France about the conclusion of the PCA ratification in the very near future. We also welcome the German initiative to ensure maximum publicity to the entry into force of the Agreement. This Agreement will not only allow us to expand and diversify our relations, but will also provide firm grounds to examining new potentials for the future. We want to believe that the continuity and rigour with which we are determined to pursue our relations with the EU, will accelerate our chances to execute a Customs Union and an Association Agreement with the EU.

Meanwhile, we intend to insure that Armenia is fully prepared to commence, without delay, the co-operation with the EU within the new framework provided by the PCA. In this respect, while we are generally satisfied with the level and scope of our continuous co-operation within the Tacis programme, we should note the growing necessity to adjust any future Tacis projects to the means and objectives necessary for the successful implementation of the PCA. Furthermore, the expansion and qualitative changes in the relations between Armenia and the Commission compel us to maintaining permanent contacts on a daily basis. The upgrading and expansion of the permanent presence of the Commission in Yerevan, thus becomes an indispensable requisite for our constructive dialogue.

1998 was particularly significant in that the Commission sponsored co-operation of an inter-state nature. The Traceca programme, no doubt, provided us with the opportunity to add new substance to the meaning of confidence building and security, through co-operation of a regional scale. In many instances, such co-operation has become an effective measure facilitating the painful process to resolve political problems between states by maximizing the potential for their mutual advantages, particularly in economic relations. This the conceptual basis on which my government decided to pursue its active participation in the Traceca Summit in Baku. The seriousness and level of our commitment was made clear with the participation of the Prime Minister himself. In turn, the implementation of the Armenian proposals on mutually acceptable grounds, will best serve our objectives and our approach and will also benefit the credibility of the Traceca programme itself. We certainly welcome the mediating effort of the Commission to this issue.

With the same approach, Armenia will continue to seek active participation and integration in the framework of INOGATE, yet another inter-state programme. This is particularly important in light of our ongoing discussions regarding the diversification of Armenia's energy sources and the long term sustenance of our energy security. We believe that INOGATE includes all the necessary fundamentals and deserves to be further institutionalized in the same way as Traceca. Armenia is ready to assume the role of a regional centre to promote the effective implementation of the INOGATE programme. I would, therefore, propose that further discussions be held between Armenia and the Commission on this matter.

As for the Medzamor Nuclear Power Plant, I would like to acknowledge our continuing commitment to close it down. At the same time however, I would like to stress that ensuring Armenia's long term energy security and sustainable economic growth are matters of utmost national importance for us, as they would be for any country. I would therefore expect that the Commission share our concerns in these matters while continuing the discussion on the modalities pertaining to Medzamor.

It is very encouraging that today we intend to devote a considerable amount of time to issues related to the trade and investment climate in Armenia, as well as to Armenia's further integration into international markets, trade, and organizations for economic co-operation. My colleagues are well prepared to present to you our views and objectives on these matters, as well as our achievements and the shortcomings we have encountered. Without going into much detail, I would like to bring about an issue that is often as important as reality. That is perception. Due to a combination of natural disasters and economic difficulties encountered by Armenia in the early years of independence, it has become a truism to perceive Armenia as the worst affected former Soviet republic. With each day however, this perception becomes less and less valid as our reality continues to improve. Instead, the country is gradually reaping the benefits of its consistent reform policies. Of course, we continue to have problems to resolve, but these are of a qualitatively new nature. While survival issues dominated governmental concerns not too long ago, we are now focussed on ensuring sustainable economic development and the enhancement of an entrepreneurial environment in the country. Armenia has worked hard to deserve the support of the international community and we would like to ensure that our effective co-operation with the Commission will further this support.

We realize that we need consistency in our economic reforms and in the promotion of our democratic process. As you may appreciate, this is not always a given in a country undergoing such tremendous political, economic and social transition. We consider however that our active involvement in various cooperative frameworks will help us consolidate such consistency. Thus the importance of our inclusion and cooperation in structures such as the Council of Europe and the OSCE. We hope that the coming year will mark the completion of Armenia's accession process to the Council of Europe and thus elevate Armenia's place in the family of European nations. For this, we count on the support of the EU member states. In the meantime, and given our particular interest in the promotion of democracy throughout this region, we expect that the Commission will bring its considerable contribution to the enhancement of the Justice and Home Affairs programme.

Armenia knows very well the price of peace and conflict. The Nagorno-Karbagh conflict remains in the news headlines. We have always advocated a more flexible approach on the part of the OSCE, through the co-chairs of the Minsk group, to try to reconcile seemingly incompatible principles and claims. We have always remained opposed to one-sided orthodoxy. It is therefore with interest that Armenia and Nagorno-Karabagh received the Minsk Group Co-Chairs' draft proposal during their recent visit to the region last November. My Government, as well as the authorities of Nagorno-Karabagh, considered the Co-Chairs proposal a realistic effort in trying to address the thorny issue of status in a manner that minimizes prejudice to either of the competing claims. Unlike previous attempts, the Co-Chairs seemed to have come to the realization that old orthodoxies and inflexible formulations will not be effective in moving forward the process for a negotiated settlement. Perhaps the boldness with which the Co-Chairs have proposed to reconcile the seemingly irreconcilable principles of territorial integrity and national self-determination, grows out of their concern that the window of opportunity for a negotiated settlement is narrowing, and that cease-fires are inherently unstable. Our commitment is for a negotiated settlement which we hope can be secured with the assistance of the OSCE.

Needless to say that security in Europe is indivisible. As we are approaching the new Millennium and the end of one of the most devastating centuries in the history of Europe, the shaping of new security structures, the promotion of stability and co-operation and the expansion of the boundaries of prosperity in Europe also become indivisible objectives for all the countries of the continent. Armenia not only shares these objectives, but also actively participates in the conceptual thinking defining a new, united and secure Europe. We will continue to work closely with other members of the OSCE community, within the Partnership for Peace programme, as well as within other existing regional co-operation frameworks to ensure the effective pursuit of these goals.