Armenian Reporter - 1/20/2007

[Ekmekjian Janet]

ARMENIAN REPORTER
PO Box 129
Paramus, New Jersey 07652
Tel: 1-201-226-1995
Fax: 1-201-226-1660
Web: http://www.armenianreporteronline.com
Email: [email protected]

January 20, 2006

1. Armenia in top fifth of world economic freedom rating

2. Armenia Fund USA welcomes new chairperson Raffi Festekjian

3. Human Rights Watch notes worldwide violations

4. Conference report: Armenian-Turkish relations begin and end in "if"

5. Conference report: If the Armenia-Turkey border is opened . . .

6. Nominee for U.S. ambassador to Armenia faces another hold in the Senate

7. Lights! Camera! Cue the Dead Guy...! Gor Kirakosian presents an
Armenian comedy of errors in his new film, "Big Story in a Small City"

8. Hye Rock III Draws Large Crowds in L.A.

9. Editorial: President Bush's Shocking Misstep

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1. Armenia in top fifth of world economic freedom rating

WASHINGTON -- Armenia's economy is the world's 32d freest, according
to the annual Index of Economic Freedom released on January 16, 2007.
The widely cited rating prepared by the Washington-based Heritage
Foundation and the "Wall Street Journal" ranked 160 countries and
concluded that "for a post-Soviet country, Armenia shows an impressive
amount of freedom."

The index is one of the key indicators used by the U.S. Millennium
Challenge Corporation to determine countries' eligibility for its
assistance programs. Armenia received the first tranche of MCC
assistance last month.

Armenia's 2007 score is 69.4, down from 74.5 in 2006 -- a slip
attributed to changes in index preparation methodology. But Armenia's
performance is still above the European average, just behind the Czech
Republic (31st) and ahead of Georgia (35th).

Overall, Armenia's scores are above the world average in the
categories of business, trade, fiscal, monetary, investment, financial
and labor freedoms, as well as freedom from the government; Armenia is
below the world average in the property rights and freedom from
corruption categories.

Rankings for Armenia's other neighbors include Turkey at 83d,
Azerbaijan at 107th, Russia at 120th and Iran at 150th. The rating is
topped by Hong Kong, Singapore, and Australia, with Libya, Cuba, and
North Korea ranked as least free. For the complete Index, visit
www.heritage.org/research/ features/index/index.cfm. -- E.S.

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For tables, go to www.armenianreporteronline.com

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2. Armenia Fund USA welcomes new chairperson Raffi Festekjian

NEW YORK -- On January 17, 2007, Armenia Fund USA announced that Raffi
Festekjian, the cofounder and CEO of PCi Corporation and a member of
the Armenia Fund USA Board of Directors, will succeed Kevork Toroyan
as chairperson of the organization, beginning this month.

Unanimously elected by the Board of Directors, Mr. Festekjian is a
successful and visionary businessman who is already very active in
outreach to Armenia. He will be taking the leadership of the fund at a
busy and important time, as Armenia Fund and its 20 international
affiliates mark the anniversary of the organization's presence in
Armenia and Karabakh.

In an exclusive interview with the "Armenian Reporter," Mr. Festekjian
gave an enthusiastic sketch of his objectives as leader of Armenia
Fund USA, and outlined some strengths and past successes of the
organization. The 43-year-old father of three sons said that as a
diaspora Armenian, he was keenly attracted to Armenia Fund's
connection to the life and destiny of the Republic of Armenia -- a
characteristic he sees as a key to the future success of diaspora
organizations in general.

He said he was eager to reach out to others who are looking for a way
to connect with Armenia, and help it become a prosperous and advanced
country. Armenia Fund and its affiliates have already contributed
mightily to this project, Mr. Festekjian said, and other diaspora
organizations have done important work in Armenia. In this regard, one
objective he would like to realize in the short term is to create,
through Armenia Fund USA, a web-based database of projects going on in
Armenia, where people could log on to find an area that interests
them.

Mr. Festekjian emphasized that however one chooses to support Armenia,
"It's not just about the project itself, but about the enrichment of
communities." He made clear that this enrichment works both ways: in
Karabakh's Hadrut region, for example, where Armenia Fund has achieved
phenomenal success, the enrichment comes in the form of greater
organizational and economic power for the local farmers.

For diaspora supporters, enrichment arises not only from the
satisfaction of making a positive difference, but also in sustaining
the life and viability of the diaspora itself, by linking its
aspirations to the those of the homeland.

In general, Mr. Festekjian would like to broaden the base of Armenia
Fund USA's support, tap into the energy and expertise of the next
generation of Armenian leaders, and create opportunities for what he
called "venture philanthropy": strategic investments in Armenia's
infrastructure that would promote long-term growth and prosperity.

As co-founder and CEO of PCi, a leading provider of compliance
solutions to the financial services industry, Mr. Festekjian is
responsible for the overall strategic direction of the company. Under
his leadership, PCi has become one of the country's largest IT
corporations, with over 2,500 clients. Prior to cofounding PCi, Mr.
Festekjian was a consultant and investment banker at Kellett Ventures
Management and Private Capital Investments, where he aided
capital-deficient community banks through operations consulting and
recapitalizing on sale of the institution. Mr. Festekjian received a
B.S. in engineering from the American University of Beirut, and an
M.B.A. with distinction from the J.L. Kellogg Graduate School of
Management.

Mr. Festekjian's support for Armenia and Karabakh is present in his
professional as well as personal endeavors. In addition to his
professional activities, he is also engaged with several nonprofit
organizations that are focused on building the future of Armenia. In
2004, he cofounded Yerazart, an organization that assists talented
young Armenian artists in Armenia. He is also the chairperson of the
Board of Trustees of Boston's St. Stephen's Armenian School, a board
member of Armenia 2020 and VEM Radio, and a trustee of the Armenian
Assembly of America.

Armenia Fund's outgoing chairperson Kevork Toroyan said: "After seven
years of involvement in the fund, with the last four years as
chairman, I am convinced that it is time to pass the torch to younger
leadership, who, I am convinced, will take the fund's mission to new
horizons." Mr. Toroyan noted that the change in leadership will not
distance, but rather strengthen his devotion to the organization, and
pledged his professional commitment and oversight to the fund's
agricultural development project launched in the spring of 2005, which
helps rural communities in Karabakh.

Information on Armenia Fund USA is available on its website,
www.ArmeniaFundUSA.org.

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3. Human Rights Watch notes worldwide violations

WASHINGTON -- America's largest human rights organization, Human
Rights Watch (HRW), urged the European Union "to fill the void" as an
international champion of human rights. HRW has for years criticized
the U.S. government's use of detention without trial and torture and
argues in its "World Report 2007," released on January 11, 2007, that
"Washington's potentially powerful voice no longer resonates" on
matters of human rights protection.

The report is a record of human rights violations in 75 countries
during the course of 2006. HRW writes that Armenia's government "has
done little to address serious human rights violations." HRW
specifically lists threats to media freedom (both through
government-initiated legal actions and, in three cases, violence
against journalists or damage to their property), torture and ill
treatment in custody (three cases are cited), and violation of
property rights (numerous cases as part of Yerevan's development).

HRW also cites Azerbaijan's "poor human rights record," including
dozens of recent politically motivated arrests, at least two deaths in
police custody due to reported "inhuman treatment," and other
violations. On Turkey, HRW writes that in 2006 its government "failed
. . . to consolidate the human rights progress of the past years,"
citing disproportionate use of lethal force, torture, and
ill-treatment in custody, restrictions on minority rights and freedom
of expression. On the latter, the report specifically cites the
prosecution of the Turkish-Armenian journalist Hrant Dink for
allegedly "insulting Turkishness."

The report also notes the Georgian government's "uneven human rights
record," including restrictions on freedom of expression, dependence
of the judiciary, and torture and ill-treatment in custody. Visit
www.hrw.org to access the complete "World Report." -- E.S.

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4. Conference report: Armenian-Turkish relations begin and end in "if"
If the border is opened, the volume of Armenian exports to Turkey
"will grow 17-fold," a European center suggests

by Tatul Hakobyan
Special to the "Armenian Reporter"

EDITOR'S NOTE: What follows is the first of two reports on the AIPRG
conference examining the economic and social consequences of opening
the Armenia-Turkey border. We commissioned two reports on the
conference in order to give our readers a fuller picture of the
conference and some of the influential opinions surrounding the
critical border issue. The second report appears as #5 below.

YEREVAN -- The businessperson and Turkish cochair of the
Turkish-Armenian Business Development Council (TABDC), Kaan Soyak, is
hopeful and expects that the Turkish-Armenian border will open one
day, and he is confident that this development will be to the benefit
of both Armenia and Turkey. He says he has two flags at home, one
Turkish, one Armenian.

"I want my kid to grow up with two flags," he says. "So in his
mentality he sees the two flags as brothers' flags. Turks and
Armenians, Turkey and Armenia, have a really big economic future in
many different sectors. Tourism is important. There are many Armenian
historical sites in Turkey, especially in the eastern part of Turkey,
and the restoration of the important historical places started from
Aghtamar Church. The Turkish Ministry of Culture will continue to
restore other historical sites."

Mr. Soyak and 10 other Turkish, Armenian, and other former officials,
members of parliament, businesspeople, political analysts, and
economists gathered on January 13 and 14, 2007, in Yerevan under the
auspices of the Armenian International Policy Research Group (AIPRG).
The resulting conference was called, "The Economic and Social
Consequences of Opening the Armenia-Turkey Border." The conference
enjoyed the financial support of the United States Agency for
International Development, the Eurasia Foundation, and the Embassy of
the United Kingdom in Armenia.

The Armenia-Turkey border was shut down by a decision of the Turkish
government 14 years ago. Ankara closed the border with Armenia -- the
two crossings, at Kars-Gyumri and Alijan-Margara, and the Kars-Gyumri
railroad, which had operated even during the Cold War -- in the spring
of 1993, when Karabakh forces occupied the strategically very
significant Kelbajar region, which fell between Armenia and
Nagorno-Karabakh and was administratively part of Azerbaijan.

Dr. Burcu Gultekin of the Center for European Studies at Turkey's
Middle East Technical University believes that opening the border
would launch a confidence-building process. "Turkey suspects that
Armenia has territorial claims and does not respect Turkey's
territorial integrity. Nonetheless, Armenia is afraid of a Turkish
offensive. In fact, the Treaty of Kars draws a border that both sides
are eager to preserve. In this respect, the opening of the border and
its recognition would increase the sense of security on both sides,"
she said, adding that intense cross-border interactions would
contribute to the stability of the Turkey-Armenia border and security
on both sides.

"In an irony of fate, the end of the Cold War led to the closure of
the official border" between NATO and the USSR, "located between
Armenia and Turkey," Dr. Gultekin noted.

The Turkish side has been setting a series of preconditions for
reopening the border and establishing diplomatic relations with
Armenia. Among those are (a) the withdrawal of Armenian forces from
the territories adjacent to Nagorno-Karabakh, (b) the recognition by
Armenia of Turkey's current-day boundaries, and (c) the withdrawal of
Armenia from the process of seeking international condemnation of the
Armenian Genocide.

Mr. Soyak says the Armenian Genocide issue is very important for
Turkey. The Turkish businessperson believes that the inclusion of the
Genocide issue in Armenia's foreign policy agenda complicated the
prospects for the improvement of Turkish-Armenian relations.

On the other hand, he emphasizes, the main obstacle in Yerevan-Ankara
relations is the Karabakh question. The Genocide issue "affects
Turkish public opinion and helps Azeris in their lobbying in Turkey.
Unless there is progress in the Karabakh conflict solution, I have not
seen any green light from the Turkish side," Mr. Soyak said.

Armenia's deputy foreign minister Arman Kirakossian welcomed all
initiatives that would contribute to Armenian-Turkish dialogue and an
improvement in relations. In an opening statement to the conference,
he said: "Armenia has repeatedly said that it sets no preconditions
for establishing diplomatic relations with Turkey and is in favor of
the positive involvement of Turkey in the Caucasus region."

"For the development of stability, security, and broad cooperation in
the region, it is indispensable for Turkey to have neutral relations
and the same level of relations with all the states of the south
Caucasus, and to abandon its policy of excluding Armenia from regional
programs, including economic ones," Mr. Kirakossian said.

"But Turkey raises a number of preconditions for establishing
diplomatic relations with Armenia and opening the border. The main one
is the final resolution of the Karabakh conflict. In this way, Turkey
violates international legal norms and also the 1921 Kars Treaty;
under article 17 of the treaty, the sides must take 'all the measures
necessary to maintain and develop as quickly as possible railway,
telegraphic, and other communications, as well as to assure free
transit of persons and commodities without any hindrance.'"

Anthony Godfrey, the interim chargé d'affaires at the U.S. Embassy, in
his own opening speech repeated a point he had made in an interview on
the eve of the conference. He said: "The purpose of this conference is
not to address all the political questions that relate to the
Armenian-Turkish relationship. These questions must be addressed in
other places, and most of all bilaterally between the two governments,
and we welcome the initiatives of the Armenian government in this
regard. This conference is to focus on facts and data. We thought that
it would be a motivating factor for the sides to find out the costs of
the closed borders."

"We believe that the peoples on both sides of the boundary would
benefit from increased opportunities for normal trade and human
interaction that an open border would bring," Mr. Godfrey continued.
"We also believe that such increased trade and economic opportunities
in turn bring economic integration, and thereby improve regional
stability and security."

COSTS AND BENEFITS OF OPEN BORDERS
The organizers of the conference took every opportunity to emphasize
that their purpose was not to evaluate the political desirability of
Armenian-Turkish relations and identify guilty parties, but to
present, through economic calculations, how profitable an end to the
Turkish blockade would be for Armenia, for Turkey, and indeed, for all
the states in the region.

But though they forecast a bright future for the region if the opening
of the Armenian-Turkish border comes to pass, the obstacle remains
that word "if."

Arsen Kazarian is the Armenian cochair of the TABDC. He argued that
Turkey could become another opening to the world for Armenia. "At the
moment, we use transportation links in Georgia and Iran which are
expensive. If the border is opened, we could use the Mediterranean
ports to reach international markets, which would cost us less," Mr.
Kazarian said.

Karine Torosyan, who holds a Ph.D. from the Tbilisi State University
International School of Economics, figures that Georgia is the only
country that would lose, at least in the short run, if the
Armenian-Turkish border were to be opened. "With the border closed,
Georgia has an effective monopoly on freight transportation in and out
of Armenia," Dr. Torosyan said. It charges transit fees for the
freight going in and out of Armenia.

In addition, all freight between the West and Azerbaijan, including
freight that is transiting through Azerbaijan to Central Asia, goes
through Georgian roads and railways. "After the opening of the border,
Turkish rail lines and Black Sea ships will provide strong competition
to serve Armenia's export and import needs," she said.

By economist Sergey Sargsyan's calculations, because of the closed
border, Armenia's transportation costs are more than twice as high as
the international average, and are the highest in the region. If the
border were opened, Armenian importers and exporters could save about
10 percent on transportation costs, and by going through Turkey goods
would save the two days in transit time (those days are currently
occupied in transit through Georgian territory).

"The numbers testify that having the Armenian-Turkish border under
lock and key significantly reduced the volume of goods being exported
to Turkey and elsewhere. The volume of exports from Armenia to Turkey
is low, whereas the volume of imports from Turkey over Georgia is
high. It is clear that the closed border hurts Armenian exports and is
a serious obstacle to the socioeconomic development of Turkey's
eastern regions," Mr. Sargsyan added.

The calculations of AEPLAC -- Armenian-European Policy and Legal
Advice Centre -- suggest that if the border is opened, transportation
costs will go down not only because Armenia will prefer Turkish
routes, but also because Georgian firms will have to lower their
prices to remain competitive. In the short term, over the course of a
year, transportation costs will fall by more than 4 percent, as a
result of which imports from Turkey will grow by 5 percent and exports
from Armenia by 6 percent, the AEPLAC study found. Over five years,
Armenian exports to Turkey would grow 17-fold, and Armenian imports
from Turkey would double.

FIRST STEPS LIE WITH TURKEY
Ten reports were presented over the course of the two-day conference.
Numerous opinions were voiced, and there were vigorous disagreements
and debates.

All of this was certainly useful; but it will not bring about the
normalization of Armenian-Turkish relations, the opening of borders,
and the establishment of diplomatic relations as long as the "if"
remains. That is, as long as official Yerevan and official Ankara are
unwilling to show the political will and take bold steps. The first
step must be taken by Turkey, as IT closed the border and IT refuses
to establish diplomatic relations with Armenia.

"Turkey evidently prefers to maintain its smooth relations with
Azerbaijan over the necessity of establishing regional cooperation and
an atmosphere of mutual trust," Mr. Kirakossian of the Foreign
Ministry said. "The reopening of the Armenian-Turkish border is
important for the Armenian authorities because it would be
economically good for both countries, allowing the transport of goods
without middlemen, the development of areas close to the border, and
the creation of new markets in the two countries; but also because it
would have a positive influence on regional cooperation in the south
Caucasus."

The Turkish participants in the conference were not in full agreement
with this view. Nor was former prime minister Hrant Bagratian. Mr.
Bagratian believes that the political elite in Armenia is silently
opposed to the opening of the border. He figures that the closed
border helps some families maintain business monopolies they would
lose if the border were open.

Contacts between Armenia and Turkey at present are primarily achieved
through nongovernmental channels. "While these endeavors can
contribute to fostering relations between the two countries they
cannot take the place of bilateral talks," Mr. Kirakossian said. In
that regard, he went on to say, "It is imperative to transfer the
dialogue to a governmental level, which Armenia is prepared to do
without any preconditions. In April 2005, in a letter to Prime
Minister Erdogan, President Robert Kocharian suggested establishing an
intergovernmental commission to create a useful dialogue. There has
been no response to this suggestion to date."

Washington-based analyst Richard Giragosian believes that the key
issues in Armenian-Turkish relations -- the border, diplomatic
relations, Genocide recognition -- are "dependent on Turkey and are
dependent on identity transformation in Turkey. Armenian-Turkish
relations depend on the outcome of what is going on in Turkey today."

"Regarding the exchange of letters between the Turkish Prime Minister
and the Armenian President -- if we look at the Armenian Genocide
within the diplomatic context here -- it seems apparent that there is
a stalemate, and one possible innovation in addition to Turkey opening
the border with Armenia, in addition to economic activity and promise
for the future, is possibly the establishment of the Armenian
president's intergovernmental commission in conjunction with the
Turkish Prime Minister's proposal [to create a committee of historians
to consider the events of 1915], perhaps as both an intergovernmental
and historic commission, to overcome the stalemate. But let's be
honest: We see that Turkey in many ways is hostage to its relationship
with Baku, and perhaps the future of Turkish-Armenian relations lies
as much in Baku as it does in Ankara," Mr. Giragosian said.

Gary Hufbauer, the Reginald Jones Senior Fellow at the Peterson
Institute for International Economics, concluded: "It is very unlikely
in this part of the world that Turkey and Azerbaijan, which both have
closed borders with Armenia, will achieve their political goals
through economic sanctions. Nevertheless, they can damage themselves
and they can damage Armenia by closing the borders in economic terms,
both by limiting trade and by limiting foreign investment. With
normalization, there is the possibility of tremendous growth in trade
in this country. Also with normalization, there is the possibility of
a very, very large surge in foreign investment."

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5. Conference report: If the Armenia-Turkey border is opened . . .

By our special correspondent

YEREVAN -- The Armenian International Policy Research Group held a two
day conference here on January 13-14, 2007, titled, "The Economic and
Social Consequences of Opening the Armenia-Turkey Border."

The conference, which according to inside sources came with a high
price tag, was funded by USAID, the Eurasia Foundation, and the UK
Embassy in Armenia.

According to organizers the objective of the conference was to provide
a forum where researchers, policymakers, and international
organizations could come together to examine the prospective benefits
and costs of opening the border and normalizing relations between
Armenia and Turkey.

AIPRG says there has been increased pressure in recent years, to open
the border and normalize bilateral relations. Turkey unilaterally
imposed an air and land blockade on Armenia in 1993 in retaliation for
the Armenian offensive to establish a second land corridor between
Armenia and Karabagh in the town of Kelbajar, north of Lachin. It was
only in 1996 that the air corridor over Turkey was opened.

The conference presented findings from six commissioned studies and
nine other papers by a group of scholars and researchers hailing from
around the world including Turkey.

The keynote speaker of the conference was Dr. Gary Hufbauer, Reginald
Jones Senior Fellow at the Institute of International Economics. Among
the distinguished list of participants were Hrant Bagratyan, former
prime minister of Armenia, and Gagik Minasyan, chair of the Standing
Committee on Finance, Budget, and Economic Issues, Parliament of
Armenia. The conference also included a roundtable discussion on
border opening with the participation of the private sector from
Armenia. The co-chairs for the round table discussion were Arsen
Ghazaryan and Kaan Soyak, cochairs of the Turkish-Armenian Business
Development Council.

The current impasse between Armenia and Turkey, clearly political in
nature, was a theme that AIPRG was at pains to avoid.

Vahram Ghushichyan, representing AIPRG's board and conference
organizing team, in his welcoming remarks stressed that the mandate of
the conference was to study the economic and social impacts of border
opening and any references to political implications would not be
considered acceptable. These comments set the tone for the duration
of the conference.

This sentiment was also expressed by Anthony Godfrey, acting head of
mission at the U.S. embassy, in his opening remarks. Mr. Godfrey
noted that the U.S. government has long supported the opening of the
border as trade and economic opportunities would invariably increase
economic integration, which would lead to regional stability and
security. He stated that any political discussion or debate on the
question of opening the Armenia-Turkey border would be outside the
scope of the conference. He went on to say that political debate on
this issue must be conducted bilaterally between the two governments.

Arman Kirakossian, deputy minister of foreign affairs of Armenia in
his welcoming remarks stressed that the position of the government of
Armenia has always been to open the border without any preconditions.
However Turkey's refusal to establish diplomatic relations with
Armenia and their continued blockade is conditional upon a solution to
the Karabagh issue which construes concessions on the part of Armenia.
This current stance by the Turkish government not only goes against
international norms but is also in direct violation of the Kars Treaty
of 1921.

Mr. Kirakossian commented that interaction with Turkey has been
achieved only through nongovernmental bodies, in the format of debates
or conferences. "While these endeavors can contribute to fostering
relations between the two countries they cannot take the place of
bilateral talks." In that regard, he went on to say, "It is
imperative to transfer the dialogue to a governmental level which
Armenia is prepared to do without any preconditions."

The papers presented at the conference exclusively dealt with the
economic and social impacts of border opening.

They covered topics from trade flows and transportation costs to the
potential expansion of labor-market opportunities through increased
migration. The different economic sectors in Armenia which might win
or lose because of border opening were discussed as well as estimates
of how border opening would impact trade and GDP. The findings were
varied from conservative estimates (AEPLAC study 18% and 2.7% in
exports and GDP respectively) to promising (Bryan Roberts AIPRG
Summary 6%-17% increase of GDP).

Another theme that was discussed was how opening of the border would
affect Armenia's relationship with all its neighbors. Armenia has the
potential to become a crossroads country by being at the centre of not
only trade flows but the centre of the relations between
civilizations. For a crossroads country, the economic damage from
closed borders which sever trade with neighboring nations is severe.
Factors affecting public opinion in Armenia were also discussed
through findings from public surveys.

According to one of the Turkish participants, Dr. Burcu Gultekin, from
the Center for European Studies, Middle East Technical University, the
opening of the border would contribute to stability and security on
both sides. "The perception of a potential threat stemming from the
border will vanish with emerging trade ties and human interactions."

Another Turkish scholar, Sema Kalaycioglu, Professor of Economics at
Isik University, stated that unless border opening is accompanied by
improved bilateral economic relations, the viability of the relations
is not likely to be promising. In other words, if the ending of border
closure only serves the purpose of transit trade, the full potential
of border opening will not be felt. "Opening of the Turkish border
must be expected to prepare greater opportunity for Armenian exports
and facilitate imports to nourish the growing need of the Armenian
economy. The only question is whether ending of the border closure
would generate trade between Armenia and Turkey or not." She went on
to state that open borders do not necessarily mean free trade or
international trade.

With border opening, one likely scenario would be a fall in Armenia's
external conflict risk, which would increase foreign direct investment
(FDI) in the country. A study conducted by King Banaian and Bryan
Roberts found that as "FDI is highly sensitive to perceived external
conflict risk and even a relatively small fall in perceived conflict
risk produces a significant impact on FDI." In their statistical
analysis they found that such a fall in external conflict risk could
increase FDI by about 50%, which would result in an increase of real
GDP by 3-4%.

Gary Kilmer of Development Alternatives, Inc., of Armenia stated it
best: Whether the Armenian economy will benefit by an increase in GDP
of 5% or 25%, everything depends upon the buyer-seller relationship.
The overriding majority of the studies are based on assumptions, and
as data and perimeters in this area are limited, no one will really
know the full implications until the border is actually open.

Mr. Kilmer stated that knowing the Armenian business sector as he
does, he believed that with the minimum amount of resources available
the private sector will try and maximize their profit, and it is the
job of the government to be ready.

Erkut Emcioglu, editor of the "Turkish Policy Quarterly," wished to
remind conference participants that the closure of the border was a
punishment inflicted on Armenia by Turkey. He asked, "Can Turkey
afford to lose Azeribaijani friendship to be friends with Armenia?"

In Mr. Emcioglus's own estimation, the answer is probably no. He also
touched upon the premise that most of the presenters had been assuming
that opening the border will invariably contribute to the economic
development of Eastern Turkey. He gave the examples of Artvin and
Van, both of which border countries with which Turkey has open
borders, Georgia and Iran respectively and which, today remain
underdeveloped. He was skeptical that opening the border with Armenia
would help in the development of Kars, especially when Armenian
exports amounted to approximately 1 billion USD and the prospects of
any export increases are minimal with Armenia's existing resources.

During the roundtable discussion, Arsen Ghazarian, president of the
Union of Manufacturers & Businessmen Association, stated that this
conference should send a message to the Turkish administration, as
they were the ones who placed the embargo. "On the one hand there is
an embargo and yet on the other hand there are 2 buses daily, 3
flights a week to Istanbul from Armenia, Turkish imports flowing into
Armenia, and 75,000 Armenian laborers in Turkey." He went on to say
that Armenia has not closed the borders and in all of its political
statements, Armenia has said that it wants the borders open, "Should
unilateral concessions be incumbent upon Armenia exclusively?"

"There are lessons to be learned from sanctions history for Turkey and
Armenia," Gary Hufbauer said. "The likelihood that Turkey will
achieve its political goals with economic sanctions against Armenia is
small. The likelihood that Azerbaijan will achieve its political
goals by economic sanctions against Armenia is nonexistent."

Ara Khanjian, professor of economics at Ventura College, in his
conclusion found that when Turkey opens its border with Armenia,
consumers and certain sectors would benefit, while other sectors would
suffer. "Trade liberalization wouldn't guarantee higher economic
growth and it could cause both poverty and higher inequality."
Nonetheless it is apparent that the positive impacts of opening the
border are greater than the risks.

In one of the final panels over the two-day period of the conference,
Richard Giragossian of AIPRG, a discussant, stated that there was a
misapplication and that somehow the burden or onus is on Armenia to
open the border. This blockade should not only be seen as a trade
impediment, but a political one. The bottom line is that this
blockade can be seen as an act of war

In the closing remarks of the conference, the organizers acknowledged
that although they tried very hard to steer away from any political
discourse and confine discussion to the socioeconomic, economic
sphere, it was unavoidable. Their hope was that a similar conference
should take place in Turkey to serve the same purpose. Whatever the
case is, the Armenian government and the private sector have to be
ready for the day the borders are opened and if conferences like this
one organized by AIPRG can contribute to that end, then it served its
purpose

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6. Nominee for U.S. ambassador to Armenia faces another hold in the Senate

by Emil Sanamyan
Special to the "Armenian Reporter"

WASHINGTON -- Senator Robert Menendez (D-N.J.) has placed a new hold
on the nomination of Richard Hoagland as U.S. ambassador to Armenia.
The full Senate will not consider the candidacy unless the hold is
lifted.

No imminent Senate action was pending as of January 17, 2007, however.
The reason, according to a Senate Foreign Relations Committee staffer
familiar with the process, is that Hoagland's nomination has not yet
been formally submitted to the Senate. According to the staffer, it
normally takes some time between a White House announcement and the
actual submission of a candidacy.

Hoagland was first nominated last year to replace Ambassador John
Evans, whose term was cut short; he left Armenia on September 10,
2006. Mr. Evans formally left the State Department late last year and
has since confirmed to the "Los Angeles Times" that his remarks
affirming the Armenian Genocide made in February 2005 caused
displeasure at the State Department, resulting in his early departure.

During hearings on the nomination held last summer, Mr. Hoagland
appeared to question the applicability of the term genocide to the
Armenian case, but his comments were later withdrawn by the State
Department. Sen. Menendez said in his January 11 statement that "given
the circumstances and controversy surrounding Mr. Hoagland's
nomination, I believe that the best way to move forward would be for
the President to nominate a new candidate for this ambassadorship."

Last month, Sen. Menendez and Sen. Harry Reid (D-Nev.), who was set to
become the new majority leader, wrote to Secretary of State
Condoleezza Rice urging her to withdraw Mr. Hoagland's nomination and
nominate another candidate. But last week, the Bush Administration
said it would renominate Mr. Hoagland.

According to a January 11 article in "The Hill" newspaper, which
monitors congressional developments, Mr. Hoagland is among at least
eight administration nominees whose candidacies were held up in the
Senate last year, but would be renominated by President Bush.

Asked about Senate concerns regarding the nomination, a State
Department official told the "Armenian Reporter" that it is within the
purview of the White House to nominate whomever it wishes, but it is
up to the Senate to grant approval.

A spokesperson for the White House told the "Armenian Reporter" that
"Ambassador Hoagland is a talented diplomat who possesses the
expertise and experience necessary to serve in this important
position. The President is encouraging the Senate to confirm
Ambassador Hoagland as soon as possible."

The White House would not speculate on whether the President would
appoint Mr. Hoagland during the Senate recess in February to sidestep
the confirmation process, however.

Sen. Menendez stressed in his statement that "if there is any
sincerity behind the Bush administration's rhetoric about 'liberty on
the march' -- if 'never again' is to be more than a bumper sticker
slogan -- then American diplomacy should consist of nothing less than
unvarnished honesty with our friends and enemies alike. And we must
call genocide by its name."

In addition to the hold, the Hoagland nomination would have to face
another vote in the Senate Foreign Relations Committee, of which Sen.
Menendez is now a member. With Democrats in control, the Committee is
now chaired by Sen. Joseph Biden (D-Del.), a supporter of Genocide
affirmation who nevertheless joined the majority in a 13 to 5 vote to
advance the Hoagland candidacy to the full Senate last September. (See
the accompanying table.)

A former Senate staff member familiar with Foreign Relations Committee
procedures told this writer that the committee chair has great
discretion as to what is going to happen with the nomination next.
Sen. Biden could theoretically delay consideration indefinitely, as
was the case with the failed nomination of John Bolton to be permanent
representative to the United Nations. Alternatively, the former Senate
staffer said, Sen. Biden could either proceed directly to a new vote
or schedule a new hearing on the nominee.

***

For table, go to www.armenianreporteronline.com

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7. Lights! Camera! Cue the Dead Guy...! Gor Kirakosian presents an
Armenian comedy of errors in his new film, "Big Story in a Small City"

by Paul Chaderjian
Special to the "Armenian Reporter"

GLENDALE, Calif. -- Like all filmmakers, Gor Kirakosian has to control
the choreography inside each frame. And at 30 frames per second, the
discipline of controlling every detail captured with the lens of a
high-definition camera sometimes spills out of the frame, and into
real life.

At one of Glendale's most popular Armenian hangouts -- the
all-American Conrad's Diner, where we meet for our second interview --
Kirakosian tells the aging Thai waitress that he wants a green salad,
finely chopped and evenly tossed with ranch dressing. "You really know
what you want," she says, and she's right; Kirakosian wants to make
people laugh.

How a salad is tossed to please the palate of a comedy filmmaker may
seem like a trivial detail to ponder, but making his first feature,
"Big Story in a Small City," Kirakosian has had to think about the
most hard-to-please audiences by being precise about everything,
including directing the waitress during an interview to publicize the
movie.

"'Big Story in a Small City' is about our city, the city of Yerevan,"
say the 25-year-old director. "It's about the people who live in the
city and how they relate to each other. But there is a tragic
storyline in the movie about a funeral, and how people come together
and try to solve an unexpected problem."

Kirakosian's Armenian-language movie, which will be screened at the
Glendale Public Library's Central Branch Auditorium beginning February
23, 2007, is based on a true story. Call it a comedy of errors, a
"Harold-and-Maude" moment of musical coffins, but the story made such
an impression on the young Kirakosian that he and his father sat down
to write a script about it. "This family's uncle died in real life,"
he says, "and when they brought the body home for a viewing, they
found out that they had brought the wrong corpse."

Casting a corpse can be a problem. And lying down for the job, in the
most professional horizontal and sometimes vertical positions inside a
coffin, is the comedic genius and Armenia Fund Telethon host Hrant
Tokhatyan. The award-winning actor has been a staple of mainstream
Armenian and diasporan stage, television, and movies, and he outdoes
himself playing a dead guy. His role as Grigor, the talkative neighbor
who is crushed to death by a falling piano, takes on a life of its own
after ivory and strings do him in.

In two different caskets (one expensive and one average), in two
different suits (one European chic, the other most likely mass
produced in Turkey or Thailand), the corpses belong to two very
different families. The only telltale sign of the mistake is that one
corpse is tattooed and scarred, and the second one is neither. How to
tear away the open caskets from the living rooms of the respective
families in mourning long enough for a body switch is the punch line
of this black comedy.

"We shot the whole film in 28 days in Yerevan," says Kirakosian, "but
the whole process of the film took three years. When we finished the
script, we worked hard to make sure we had a polished script; then we
did six months of preproduction before we shot the film. Me and my art
director, we had this big book with the whole storyboard," he said,
referring to a series of sequential drawings of each shot in the
movie, like a comic strip.

Kirakosian finished editing the film last summer and held its premier
on June 8, 2006, at the Alex Theatre in Glendale. The film then opened
for public viewing on September 15 at the Cinema Moscow in Yerevan,
where it was expected to play for a maximum of two weeks. The two
weeks turned into 35 continuous days of three daily screenings. More
than 20 thousand film fans saw the film, breaking records at the
Cinema Moscow for being the longest running Armenian film.

To make the movie a popular draw, Executive Producer Vic Grigorian
relied on Kirakosian's polished script, word-of-mouth publicity, and
star power. Headlining the movie is a "Who's Who" of Armenia's popular
actors. Vahagn Simonyan, better known as Poncho, landed the role of
the aspiring Shakespearian thespian, Uncle Hamlet, who asks, "To be or
not to be, is that a question?" Other players include Khoren Levonian,
the grandson of actor Khoren Abrahamian, honored as a USSR's People's
Artist. Even Armenia TV's children's "Yo Yo Show" host and star Levon
Harutyunyan is in the film, playing a clumsy and goofy police officer
named Saroyan.

Nune, Madonna's Reaction, and the Festival Circuit

Kirakosian made a name for himself a few years ago when singer Nune
gave him a shot at making a few of her music videos from her
"International Album." His father Garo, a choreographer and dance
instructor, had helped produce Nune's concert at the Kodak Theatre in
2002. The relationship and trust between Nune and Kirakosian's father
gave him a shot at making videos for the singer's Russian, French, and
Persian songs. He also directed Sara Babayan's "Adana" music video and
his young brother Mihran's "Just Like That" debut rap video.

"My dad was the creator of the Arayee Dance Show," says Gor during our
first interview on the set of "Hotline," a show broadcast on Dish
Network channel 905 on the "Armenian Reporter"'s affiliate television
station, Armenia TV. "My dad worked in the Armenian Dramatic Theatre
as a movement director. In 1992, we decided to move to the U.S. After
that he had a dance group called the Garo Dance Show. When we grew up
and started doing stuff, he stopped doing choreography and dancing and
started working with us, and we started doing the Demq television show
and my brother started doing his stuff."

Empowered by their father's talent, passion for the arts, and years of
experience, 25-year-old Gor and his 21-year-old brother have done more
to date than most artists dream of doing in their entire careers.
Mihran's agility, talent to move, uncanny ability to learn and create
choreography, handsome features, and magnetic charisma have put him on
some of the biggest stages in the world. As a teenager, he danced with
Nune in 2002, and has spent the past three years touring the world
with Madonna. Mihran is also a regular presence in the Queen of Pop's
music videos, and has danced with the biggest acts in the world,
including Britney Spears, Kylie Minogue, and Ricky Martin.

On live television, I ask him if his brother's relationship with the
Material Girl will mean that Madonna would make an appearance in his
future projects. "One day, maybe," he says. "But first I have to prove
myself. I have to prove to them that I can do something great when
they give me a chance. My brother is friends with them and works with
them, but he does not have that kind of power."

Mihran's influence with Madonna was able to get the Royal Madge
(Madonna's British nickname) and her filmmaker husband Guy Ritchie to
watch "Big Story in a Small City." What did she think? I ask. She said
it was very funny, he says. "Me and Guy Ritchie talked about the film.
The most interesting thing that he said was he said, 'I really liked
it, and there was a lot of things that I would like to steal from it.'
I said, you should, because all the things that you see, I stole it
from you. He said, 'Everything you stole from me, I probably stole it
from somebody else.'"

Whom else do you dream of working with one day, I ask. He says he
dreams of working with Angelina Jolie. "One of my dreams is to make a
film and then go to a theater in a city I've never been and watch that
movie." That shot may come in the months ahead, since Kirakosian has
submitted his film, now with English subtitles, to 40 different film
festivals in cities like Nashville, Miami, and Phoenix.

"I got into the Nazareth International Film Festival in Israel a few
months ago," says Kirakosian. "We got into that, didn't win anything,
but participated." The biggest coup would be being accepted to Robert
Redford's Sundance Film Festival in Park City, Utah. "When a film wins
awards at festivals," says Kirakosian, "the price of the film becomes
higher. Now, I believe, the film will command the lowest price
possible, so the goal is trying to find a distributor and find that
door to put an Armenian film into the foreign section of Blockbuster."

First takes and family support

"I hear stories about filmmakers saying they were eight and their
father gave them an 8-millimeter camera," says Kirakosian, but that is
not how he got started. "I was like 16, in high school, and there was
a telecommunications class that I took accidentally. We were shooting
15-minute campus news. By doing that, I learned editing, camera, and
telling stories."

Kirakosian says he found news production tedious and not creative
enough. While still in high school, he signed up for film production
classes at Los Angeles City College. When he graduated high school, he
finished the film program at LACC and transferred to the prestigious
Art Center College of Design in Pasadena, where he finished his
undergraduate program last May. "Big Story in a Small City" was his
senior project.

"When I was 18 years old," says Kirakosian, "me and my friends decided
to do a TV show. We got a chance to use cameras and editing equipment,
so we decided to do a comedy show." The show, called "Tu Demq Ess"
(translated loosely, "You're Really Somethin'") premiered on New
Year's Day 2001. After a few shows, the name of the program changed to
"The Demq Show." Made up of comedic sketches and stand-up comedy, the
cast parodied Armenian life and was awarded "Best Entertainment Show"
at the annual Armenian Music Awards. "After that," says Kirakosian,
"we decided to make the TV show into a stage shows. We sold out the
Alex Theatre in Glendale for seven nights."

The first Demq stage show was called "The Armenian Demq Awards," and
it was a parody of Armenian music awards. There were no sacred cows,
no holds barred, no punches held back -- and the audience loved it.
"The second show was called Demq TV," says Kirakosian, and this one
parodied that inexhaustible cache, the smelly cesspool of Armenian
shows filling airtime on several cable channels in Glendale.

Coming attractions and gratitude

And the laughs will continue when Kirakosian and his team take on
Armenian telethons. "We are doing another show in April or May called
the Demq Telethon, where we do a parody of the Armenian Telethon.
There will be kids coming in to present their checks, singers
lip-synching, old people talking endlessly. We'll do a show. When we
are sold out, we'll do another show."

Kirakosian attributes his success to his family and close friends, who
support him and work with him at any cost. "I'm very thankful that I
have a family that's next to me all the time," he says, "like my
father, who pushes me to do big things, great things. You have to have
somebody like that. One of the most important things is to have a team
behind you, to help you, to believe in you. It's like my dad, my art
director, my composer, cowriter. When they hear I am trying to do
something, everybody gets together and helps me to do it without
thinking about money or getting paid."

Film projects take several years to complete and having a tribe of
people behind him who understand the importance of the work is key to
the filmmaker. "It's very hard to work on one project for a long
time," says Kirakosian. "You have to push yourself and understand that
what you're making is something important. When you finish it, you
understand that it's something that came out of you. Like for me, when
they say, Is your movie good? I cannot say if my movie is good or bad.
For me it's good, because it's like my child. Your child cannot be
bad. That's the whole idea."

Kirakosian's next two children will be bilingual films, half-Armenian
and half-English. He plans to shoot the films in Armenia again,
because he says it's 20 times cheaper to shoot there than in the U.S.
"The first story is about an American teenager who accidentally finds
himself in one of the villages in Armenia, and the villagers think
he's a Turkish spy." Kirakosian calls this new project a comedy and a
love story, because the American teen falls in love with an Armenian
villager.

Kirakosian's second project in development is scheduled to shoot in
early 2008. "It's about three characters who work in a circus. They
decide to rob a casino in Armenia to get the money they need to keep
the circus from closing down."

Sounds like a lot of fun, a lot to control, and films that will surely
make audiences (and the Madge herself) laugh out loud.

(The End. Roll credits...)

************************************* **************************************

8. Hye Rock III Draws Large Crowds in L.A.

by Paul Chaderjian
Special to the "Armenian Reporter"

LOS ANGELES -- Hundreds turned out for the annual Artists for Kids
Foundation fundraiser called "HyeRock III." The concert at the
renowned El Rey auditorium in Los Angeles featured the bands Visa,
Gor, the Dirty Diamond, Tallulah Sound Experiment, Fish Circus, and
Telegenetics.

"Artists for Kids was created a few years ago to primarily help and
support young artists who don't have the tools to do their art," says
singer Gor Mkhitarian. Gor drummer Jirayr Habeshian came up with the
idea of the HyeRock fundraisers. "Funds raised through these
charitable events helps the organization hand out grants," says
Mkhitarian.

The annual HyeRock concerts allow up-and-coming performers and
unsigned bands like his to share their music and support not only art
organizations like the Ashtarak Art School and the Diabetic Children's
Fund in Armenia, the Sushi Music School Society, and the UNICEF Fund
for Tsunami Victims.

"I saw two of the bands performing at the Derby and recommended them,"
says Mkhitarian. "Fish Circus had a great stage performance and an
interesting sound. Their lead singer, who is Armenian, was singing in
a very unconventional style."

The second band Mkhitarian recommended was the Dirty Diamond, a rock
and roll band with a large following.

The other bands featured in the concert were chosen by the Hye Rock
committee. Information about the organization may be found on the
website www.artistsforkids.us.

************************** *************************************************

9. Editorial: President Bush's Shocking Misstep

President George W. Bush has once again nominated Richard Hoagland to
be the next United States ambassador to Armenia. The President's
decision is surprising and disappointing. It is also not in the best
interests of the United States or of the United States-Armenia
relationship.

When he was running for president in 1999, Mr. Bush pledged to
acknowledge the Armenian Genocide. Every year since, he has issued a
statement remembering the events of 1915-17, but he has studiously
avoided calling them "genocide." When the U.S. ambassador to Armenia,
John M. Evans, took Mr. Bush's statements to their logical conclusion
and used the word genocide, Mr. Bush made him take it back. As if that
wasn't enough, he then fired the ambassador.

The president first nominated Mr. Hoagland last May. When Mr. Hoagland
was interviewed by the Senate Foreign Relations Committee, he knew
that his bosses wanted him to dance around the senators' questions
about the Armenian Genocide. But in his zeal, Mr. Hoagland addressed
the questions he was to avoid, and took the absurd view that the
Armenian case does not qualify as a genocide. He had to take back the
worst of his comments when he and the State Department saw that his
nomination was likely to be rejected by the committee. Ultimately, Mr.
Hoagland's nomination was blocked by Senator Bob Menedez, Democrat of
New Jersey, and the 109th Congress retired without approving Mr.
Hoagland's nomination.

On December 1, Senator Harry Reid of Nevada, leader of the newly
elected Senate majority, and Senator Menendez gave President Bush some
good advice. In a letter addressed to the Secretary of State, they
wrote: "We believe the best way to move this process forward is for
the President to withdraw his nomination of Richard Hoagland as U.S.
Ambassador to Armenia and to propose a new candidate to serve in this
important position."

The president chose to ignore this advice. Why?

Why did the president break his campaign pledge? Why does the
administration refuse to fully acknowledge the Genocide? Why, when
serious allegations have been made by Sibel Edmonds and others that
implicate former House Speaker Dennis Hastert, Turkey, and the Turkish
lobby, do the allegations go uninvestigated?

Is it because Turkey threatens to punish the United States if the
president tells the truth about the Armenian Genocide? If so, what an
amazing, shocking, demeaning position for the president of the United
States: to be afraid of Turkey, to allow the United States to be held
hostage to Turkey's blackmail. Such a position clearly is not in the
best interests of the United States. This must come to an end.

The Armenian-American community is fully united in opposition to the
administration's policy of denial.

It is up to Congress to correct the administration's mistakes. The
Senate should continue to withhold its consent from the appointment as
ambassador to Armenia of Mr. Hoagland -- or of ANY nominee who refuses
to recognize the Armenian Genocide. The Senate and the House should
adopt a resolution reaffirming the Genocide.

The choices Mr. Hoagland has made do not speak well of him. But it is
a mistake to focus on Mr. Hoagland as an individual. Our issue is not
with him; our issue is with the administration's disingenuous position
with regard to the Armenian Genocide. ANY nominee for the position
must be allowed to acknowledge the truth of the Armenian Genocide.

One could certainly argue that having an ambassador is much better
than having no U.S. ambassador in Yerevan. The U.S.-Armenia
relationship is very important for Armenia, and Armenia would
certainly want to have a fully accredited ambassador at the head of
the United States mission in Yerevan. However, an ambassador with
visible disdain for the history and sensitivities of the country to
which he or she is accredited can hardly be effective or command
authority or respect.

Discussing the Armenian case last summer, Senator Norm Coleman,
Republican of Minnesota explained: "As someone of the Jewish faith, I
bring a heightened sensitivity to the reality of genocide and mass
murder, and the importance of recognizing it for what it is. I was
brought up believing you never forget the Holocaust, never forget what
happened. And I could not imagine how our ambassador to Israel could
have any effectiveness if he couldn't recognize the Holocaust."

In their letter to the secretary of state, Senators Reid and Menendez
put it this way: "The circumstances related to the Hoagland nomination
have been the subject of questions raised by more than half of the
Senate Foreign Relations Committee and over sixty members of the U.S.
House of Representatives. The controversy surrounding his nomination
has been widely covered in the international press, and his nomination
is opposed by the Armenian-American community and the Armenian
diaspora. It would serve neither our national interests nor the
U.S.-Armenia relationship to expect Ambassador-designate Hoagland to
carry out his duties under these highly contentious and profoundly
troubling circumstances."

As this page has noted before, "the administration must now face
Armenian and American history squarely. The State Department was wrong
to punish Ambassador Evans for calling the Armenian Genocide by its
proper name; a line has been crossed and it is no longer possible for
the United States ambassador to Armenia to be effective without using
the G word."

To his credit, President Bush did not make a recess appointment before
the new Congress convened last week. But he must know that the
Hoagland nomination will languish in the coming months. In making this
nomination and sticking to his indefensible position, the president is
not doing the United States, Armenia, or indeed Mr. Hoagland any
favors. It is time for the administration to change its policy and
fully acknowledge the Armenian Genocide.

We call on our readers to contact their members of Congress. Ask your
senator to oppose ANY nominee who does not fully acknowledge the
Armenian Genocide. Ask your representative to sign on to the Armenian
Genocide resolution.

In addition, please contact Senator Menendez and Senate Majority
Leader Reid and thank them for their leadership and principled stand
in the nomination issue.

Finally, we urge our readers to contact the White House and let the
president know that they want the United States to speak the truth
about the Armenian Genocide.

* * *

CONTACT INFORMATION

The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Comments: (202) 456-1111
Switchboard: (202) 456-1414
Fax: (202) 456-2461
[email protected]

* * *

Name of Senator
United States Senate
Washington, DC 20510

Switchboard: (202) 224-3121
To find your senator or direct contact information, visit www.senate.gov

Name of Representative
United States House of Representatives
Washington, DC 20515

Switchboard: (202) 225-3121
To find your representative or direct contact information, visit www.house.gov

* * *

Senator Bob Menendez
502 Senate Hart Office Building
Washington, DC 20510

Phone: (202) 224-4744
Fax: (202) 228-2197

Senator Harry Reid
528 Hart Senate Office Bldg
Washington, DC 20510

Phone: (202) 224-3542
Fax: (202) 224-7327

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Direct your inquiries to [email protected]
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