Ladies and Gentlemen,

Our gathering here today marks a new qualitative beginning for our countries. We can now extend our co-operation with the European Union into new areas. I am confident that the cooperation council to be established under the provisions of the Agreement, will ensure the successful development of our partnership.

Armenia does not stand in the heart of Europe, however, belonging to Europe is not simply a matter of geography, rather a matter of subscription to a set of shared values. In Armenia, we are determined, both as a state and a people, to remain firmly engaged in the architecture of the new Europe, to take part in its evolution, to contribute to the progression of European civilization.

It was due to the vision and political foresight of the founding fathers of the European Union that the post-war, devastated Europe was transformed into a common area of shared co-operation, prosperity and sustainable peace. It is this vision and political will that today inspire us as we hope to succeed in our region as well. As the post- war period was for Western Europe, so is the post-soviet period for us -- a time to rethink our past, the role of our region and our links to the larger European structures and institutions.

To that end, we will continue our efforts to transform our society into a full-fledged democracy and we hope Europe will inspire and support us in our efforts. The benefits of regionalism and integration should not be lessened to those of us who are at the borders of Europe. We should avoid falling back to divisive or exclusionary thinking.

Otherwise, such divisive thinking will bring us back to the notions of balance of power and spheres of interest. We believe in basing our policy on the complementarity of interests so as to provide a framework for maintaining peace and stability in our region, and further strengthening the bases of our independence. Regional and sub-regional engagements are especially valuable in our part of Europe. With the proper political will and skilful application, regional thinking can enable us to surpass the very essence of our existing problems and identify areas of mutual interest. Co-operation on issues of regional concern can create confidence, which can help us transcend our conflict. With all these in mind, I am confident that our future relations with Europe will be based on our joint commitment, multiple partnerships and regional links to reinforce our common objectives. Armenia stands ready for such a co-operation.

The EU sponsored TRACECA and INOGATE projects are examples that can promote such co-operation, in case they are applied equally and all the countries in the region actively participate in them. Equilateral and sustainable development of all the countries in the Caucasus are the major elements of regional security and a guarantee of independence for each of them. Any attempt to isolate any of the countries in the Caucasus will inflict damage to all of them, in the first place, in terms of their security.

Armenia's efforts to promote democratic and market reforms have been an ongoing process since independence, despite the social, economic and political costs. Mutual confidence and cooperation in our region are largely dependent on the extent to which our societies are open, our policies are predictable and our economies interdependent. While we create areas of co-operation, we should, at the same time, address the conflicts and actively work towards their resolution.

In Europe, economic integration and interdependence have led the way to forms of political co-operation which might have seemed inconceivable in the pre-war period. To get there however, the nations of Europe went through centuries of war in the name of sovereignty and independence. We should not forget that it is relatively recently that they have opted for political structures integrating their sovereignties and strengthening their security in regional arrangements based on the notion of interdependence.

The conflicts in Kosovo and Nagorno-Karabakh have shown that new states, including those in Europe, are not immune to intolerance vis a vis their minorities. Instead of letting war take its course, as it did in the history for so long, we hope that the model of the existing Europe will help the formulation of new notions of sovereignty. This will help us accept new definitions of self-determination and security, as well as ensure the support of major powers to make these notions viable. It has also become apparent for us that the principle of territorial integrity cannot be regarded as an absolute category, especially for countries with underdeveloped democracy where it becomes an excuse for mass crimes.

The changes in Europe have blurred the traditional lines of state jurisdiction and have challenged Western European leaders to think in new ways to define the role of the state in relation to the larger European community and its institutions. We hope that considerations of integration and interdependence will encourage new thinking. We also hope that these considerations encourage a wider acceptance of the new realities in which the notion of sovereignty may be complemented and reinforced with additional associative arrangements, both within previously known national borders and in the larger regional context. It is with these considerations in mind that we recognized the advantages of the recent proposal of the Co-chairmen of the Minsk Group.

In conclusion, I take this opportunity to thank the European Commission and all EU member states for their support and contribution to Armenia's future. We look forward for broader cooperation, hoping that at some point in the future, a new Strategy Paper for Europe will recognize the Caucasus as a legitimate applicant area for EU expansion.

Thank you.