Armenian Reporter - 5/19/2006 - front section

[Jilavian Emma]

ARMENIAN REPORTER
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May 12, 2007 -- From the front section

To see the printed version of the newspaper, complete with photographs
and additional content, visit www.reporter.am and download the pdf
files. It's free.

1. In successful election, Armenia's voters choose continuity (by
Armen Hakobyan)

2. From Washington, in brief (by Emil Sanamyan)
* U.S.: Armenia election step in right direction
* GOP congressmen urge colleagues to "join Reagan" in Genocide affirmation
* Past affirmation supporter Gephardt now employed by Turkey
* Clinton Administration official laments deterioration in
U.S.-Turkish relations
* Caucasus experts gather in Washington

3. "We know where you live"
* A threatening letter is sent to Turkey's Armenian schools

4. Gohar Gasparian, the Armenian Nightingale, is mourned
* 83-year-old renowned soprano headlined two dozen operas

5. Armenia impresses, but doesn't win, in Eurovision 2007 (by Betty
Panossian-Ter Sargssian)
* But singer Hayko has earned news fans in Armenia and Europe. The
Fins even named an island after him.

6. Market update (by Haik Papian)

7. Commentary: Local control, division of diminishing protest vote
decisive for Republican victory (by Emil Sanamyan)

8. Commentary: Consider the hazards of uranium mining and milling (by
Anne Shirinian-Orlando)

9. Editorial: A democratic Armenia

* Man in the news: See a profile of Mark Arax by Paul Chaderjian and
an essay by Mr. Arax in the Arts & Culture section of this newspaper.

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

1. In successful election, Armenia's voters choose continuity

by Armen Hakobyan

YEREVAN -- Armenian voters on May 12 handed a decisive victory to
parties allied with President Robert Kocharian in the fourth
parliamentary election since Armenia's independence in 1991. The
conduct of the elections was hailed by domestic and foreign observers
as a significant step forward for Armenia.

The Presidency of the European Union noted "with satisfaction that
the parliamentary elections held in Armenia on 12 May were, on the
whole, conducted fairly, freely, and largely in accordance with the
international commitments which Armenia had entered into."

Voter turnout was high. There were no serious incidents reported at
the polls, nor were there clashes or significant protests after the
preliminary results were announced.

* Republican victory

The Republican Party of Armenia, which is led by Prime Minister Serge
Sargsian, won 62 seats in the 131-seat National Assembly. The newly
formed Prosperous Armenia Party, led by tycoon Gagik Tsarukian, won 26
seats. In third place was the Armenian Revolutionary Federation
(Dashnaktsutiun), part of the governing coalition since the previous
elections; it won 16 seats.

Three opposition parties won seats in the National Assembly. The
Country of Laws (Orinats Yerkir) Party, led by former speaker Arthur
Baghdasarian, won 9 seats. U.S.-born activist Raffi Hovannisian's
Heritage Party won 7 seats. The Dashink (Alliance) party won a single
seat.

In addition, 10 individuals with no stated party affiliation won
seats in the National Assembly. Many of them are closely associated
with the Republican Party. One, Khachatur Sukiasian, is definitely
independent. Another, Victor Dallakian, who won a hotly contested race
in Vanadzor, is a prominent member of the opposition.

* Party mandates

Armenia has 41 electoral districts, and voters in each district send
one representative directly to the National Assembly.

Voters cast a separate ballot for the political party they prefer.
Ninety seats in the National Assembly go proportionally to parties
that win over 5 percent of the nationwide party vote.

The Republican Party won 457,032 votes or 32.8 percent of the vote,
which translated into 41 party seats. In addition 21 party members won
in district races, for the total of 62.

The Prosperous Armenia Party won 204,443 votes or 14.7 percent, for
18 seats; it won another 8 in district races. The ARF, 177,192 votes
or 12.7 percent for 16 seats. The Country of Laws Party, 95,256 votes
or 6.8 percent for 8 seats, plus one win in the district races. The
Heritage Party, 80,890 votes or 5.8 percent for 7 seats.

A quarter of the party vote went to 18 political parties that failed
to cross the 5-percent threshold for winning party mandates. In first
place among these parties, with 4.3% of the vote, was the United Labor
Party, which was part of the governing coalition. Last place went to
the Social Democratic Hunchakian Party, which garnered just over a
thousand votes.

The Central Electoral Commission reported that 1,375,733 citizens
out of 2,317,810 registered, or 59.4 percent voted. Under a recently
adopted law, citizens must be in the country on Election Day to vote.

The results put Prime Minister Serge Sargsian in a strong position
to run for president in early 2008. And he has now announced his
intention to do so. But his election is not a forgone conclusion. For
if the Republican Party won 33.8 percent of the vote in this election,
the opposition parties combined won 32.6 percent. Nor is it clear that
the parties allied with President Kocharian will coalesce around Mr.
Sargsian's candidacy.

* The observers

Well over 400 European observers were in Armenia for the elections.
Since late March, 15 experts and 29 long-term observers were in
Armenia. Another 411 short-term observers, including 100 members of
parliament were in Armenia to witness the balloting. They monitored
the elections for the OSCE Office for Democratic Institutions and
Human Rights (OSCE/ODIHR), the OSCE Parliamentary Assembly (OSCE PA),
the Council of Europe Parliamentary Assembly ( PACE), and the European
Parliament (EP).

"These elections were a clear improvement and that is good for
Armenian democracy," said Tone Tingsgaard, the special coordinator of
the short-term election observers and vice president of the OSCE PA.
"Now, more work is needed to further consolidate this young democracy.
That will require joint effort and will by all political forces. I
hope we will see that happen in the years ahead."

Leo Platvoet, the head of the PACE delegation, said: "We
congratulate the Armenian people on showing the will to hold
democratic elections. Some challenges remain, such as intertwining
between political and business interests and improvements are still
needed to the electoral complaints procedure. The Council of Europe
and its Assembly continue to stand ready to assist Armenia in this
process."

Marie Anne Isler Beguin, who headed the EP delegation, said: "With
their participation in these elections, Armenian citizens have made a
further step towards European democratic values as foreseen and
promoted by the EU Neighborhood Policy. The EU delegation encourages
the Armenian people to continue in this direction in view of
forthcoming elections."

Ambassador Boris Frlec, the Head of the OSCE/ODIHR long-term
mission, said, "Hopefully this election will contribute to restoring
the trust of voters in the election process. But the election is not
over. We will continue to follow the post-election developments; only
once they have been concluded, will we have the full picture."

See details of the International Election Observation Mission report
on www.osce.org/odihr.

* CIS observers

The Commonwealth of Independent States sent 39 long-term observers two
months before the elections. Another 239 observers arrived in time for
Election Day. The CIS observers visited 1,192 of the 1,923 polling
stations in Armenia. The executive secretary of the CIS delegation,
Vladimir Rushaylo, announced on May 13, "The CIS observers consider
the elections to have been free, fair, and transparent." He emphasized
that the government had taken definite measures to ensure that
citizens could exercise their right to vote unhindered and that a free
exchange of ideas was possible before the elections. He noted that
there were some problems which could not, however, influence the
outcome of the vote.

* Domestic observers

It's Your Choice a local organization that enjoys the support of USAID
had more than 2,200 observers across the country. The observers
witnessed various incidents. But the organization's president,
Harutiun Hambardzumian, reported that the violations and issues were
not widespread and were not of a scale to change the outcome of the
vote. Ballots were counted in a relatively calm atmosphere, he said,
adding that the police were neutral and the election rolls largely in
good shape.

* No revolution

The day after the election, the sound of explosions had some Armenians
worried that clashes were underway. But the explosions turned out to
be celebratory fireworks. When Mr. Platvoet congratulated "the
Armenian people on showing the will to hold democratic elections," he
and his fellow observers took the wind out of the sail of opposition
politicians led by the Impeachment Bloc; they had announced well in
advance of Election Day that they would be protesting the conduct of
the elections the day after.

The European observers and the United States government all agreed
that the elections were a big step forward. But they also agreed that
alleged violations had to be investigated seriously and those
suspected of involvement had to be prosecuted.

* Congratulations

On May 14, President Kocharian congratulated the Armenian people for
taking "an important step toward democracy" in elections that were
"free, fair, and transparent." He promised, "problems and violations
will be studied carefully and necessary steps will be taken to restore
legality."

The prosecutor general reports having received 26 complaints, in
response to which ten criminal investigations have been initiated. In
one case, in the city of Armavir, a citizen has been charged with
attempting to bribe three people 10,000 drams each (about $28) to vote
for a candidate and urge others to follow suit. In another, a resident
of the city of Hrazdan has been charged with paying 4,000 dram ($11)
bribes to 32 residents of a building.

President Kocharian also congratulated specific political parties.
He visited the Republican Party office to offer his congratulations to
that party. He invited the leaders of Prosperous Armenia to his office
to congratulate them. And he called the leaders of the ARF for the
same purpose. Prime Minister Sargsian also congratulated the Country
of Laws and Heritage Parties.

* "The election was lost by the opposition"

Shavarsh Kocharian, leader of the opposition National Democratic
Party, said: "This election was not won by the governing party. It was
lost by the opposition. The main reason for the defeat of the
opposition was that opposition forces were not able to offer
themselves as a true alternative to the governing group and gather
around an idea and a program."

There is now a great deal of discussion as to why the opposition was
so fractured coming into the elections. Over 20 percent of the vote
was dissipated among parties that could not surmount the 5 percent
threshold.

Meanwhile, the two parties that did surmount the threshold, the
Country of Laws and Heritage Parties, are the ones proposing to sue in
the Constitutional Court to have the results declared invalid. The
party leaders say they believe they got more votes than were
attributed to them. However, they have not yet offered evidence to
back up their claims.

The party of the prominent opposition politician Artashes Geghamian
(he came in third in the last presidential elections) won about 50,000
votes and will not return to the National Assembly. He told the daily
Aravot that if his "Crisis Management Program" did not win sufficient
votes, it means "people have preferred other approaches, and we should
not make it into a tragedy. May God grant that those other approaches
bring the country to a good place." Asked whether he would join
opposition protests, Mr. Geghamian said, "The 50,000 people who voted
for my program, those 50,000 voted for me to implement the program,
not to start a revolution or take any other approach."

Leaders of the Armenian Revolutionary Federation, which got 40,000
more votes than it had in 2003, said they did not expect to see a
coalition government. They noted that the Republican Party had won
enough seats to govern alone, making a coalition meaningless. The
party had not received a proposal to be part of a coalition and did
not expect such a proposal. Asked by the Armenian Reporter whether the
party would be part of the opposition, the leaders said the party has
an alliance with President Kocharian and will continue to work with
him and the Republican Party.

The Prosperous Armenia Party has refrained from comment in the
immediate aftermath of the election. Its showing was impressive for a
newly formed party, but since party leaders had announced that the
party had 400,000 members going into the election, garnering 200,000
votes was perceived as a defeat. Though Prosperous Armenia had
distributed a significant amount of potato roots and other farm
products, signing up party members as it did so, it found that
membership did not automatically translate into votes. By contrast,
the ARF for example has only 7,000 members and an electorate of some
180,000.

Former presidential runner-up Stepan Demirchian's party was left out
of the next parliament. Mr. Demirchian appeared at the May 13 rally
organized by the Impeachment Bloc, although the bloc leader Nikol
Pashinian had called him a sellout just a few days earlier. The rally,
cosponsored with the New Times and Republic parties, drew 3 to 4
thousand participants. Many were elderly, and more inclined to listen
than to man the barricades. The highlight of the rally was the
announcement by Mr. Pashinian that the authorities had issued 400,000
new passports to a select group of supporters who went and voted on
behalf of people who were outside the country. A couple of days later,
in an editorial in his newspaper Haykakan Zhamanak, Mr. Pashinian
revealed the source for his sensational accusation: he had thought
long and hard about how the ruling party could have gotten so many
votes and he had surmised that this is what they had done.

People are now awaiting Prime Minister Sargsian's decisions about
the composition of his cabinet.

* * *

For graphics showing the party vote in each electoral district and in
Armenia overall, see the print version of the newspaper or the pdf
version at reporter.am

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

2. From Washington, in brief

by Emil Sanamyan

* U.S.: Armenia election step in right direction

As in the past, the State Department aligned with the OSCE monitoring
mission's assessment on the Armenian election. Asked by the Reporter
for comment, Deputy Spokesperson Tom Casey said during the May 14
Department briefing that the United States "congratulate[s] the
Armenian people on their parliamentary elections and share[s] with the
international observers who were present the view that the election
infrastructure has been greatly improved and that this is a step in a
right direction towards meeting international standards."

Mr. Casey added that the U.S. hopes that the Armenian government
"aggressively investigates allegations of electoral wrongdoing" and
prosecutes any violators. "So all in all, I think this is an
improvement over past elections; though certainly if you look at what
the observers said, [...] there is still some way to go before you would
have an election that fully meets all international standards," he
said.

In last month's message to Prime Minister Serge Sargsian, President
Bush said that good electoral conduct would "serve as a serious
stimulus for developing relations between the two countries."

Also last month, Assistant Secretary of State Dan Fried, citing past
U.S. criticism of Armenian elections, said that "we don't expect to go
from deeply flawed to perfect, but we do expect to see substantial
forward progress."

Asked following the briefing why the State Department, unlike the
European Union, avoided using the terms "free" and "fair" for the
election, Mr. Casey said that the U.S. was just going by the OSCE
preliminary report, withholding final judgment until after that
organization's final report is issued.

But later that day the State Department web site www.state.gov
headlined with "U.S. Welcomes Fair Conduct of Armenia Election."

* GOP congressmen urge colleagues to "join Reagan" in Genocide affirmation

Citing a passage from the 1981 speech by President Reagan that
referred to the Ottoman Armenian experience as "genocide," Congressmen
Joe Knollenberg (R-Mich.) and George Radanovich (R-Calif.) urged their
Republican colleagues to co-sponsor the House Resolution 106 affirming
the U.S. record on the issue.

The text of the May 14 "Dear Colleague" letter circulated by the two
of the resolution's six main co-sponsors was made available by USAPAC.
At this time 53 of the resolution's 193 supporters are Republicans.
The House Democratic leadership has yet to schedule formal
consideration of the measure.

* Past affirmation supporter Gephardt now employed by Turkey

In their May 8 "Dear Colleague" Members of Congress Frank Pallone
(D-N.J.), Adam Schiff (D-Calif.) and Anna Eshoo (D-Calif.) reminded
fellow Democratic Representatives that one Turkey's main lobbyists
opposing the House Resolution was himself a supporter of the Armenian
Genocide affirmation.

The former Democratic congressional leader Richard Gephardt (D-Mo.),
who made an unsuccessful bid for presidential nomination in 2004, now
works at a DC lobbying firm DLA Piper hired by the Turkish government
to lobby the Democratic congressional majority.

As part of the effort the firm distributes Genocide denial
literature, including a book co-authored by Justin McCarthy, to
Congress members. A copy of the book, which presents the genocide as
an "Armenian rebellion," was made available to the Reporter.

But in his September 12, 2000 letter Mr. Gephardt urged the then
House Speaker Dennis Hastert (R-Ill.) to promptly schedule a vote on
an earlier congressional Genocide resolution, expressing his
"commit[ment] to obtaining official U.S. Government recognition of the
Armenian Genocide." ANCA noted in its release that the Mr. Gephardt
had repeatedly backed affirmation efforts since the 1980s.

* Clinton Administration official laments deterioration in
U.S.-Turkish relations

"The deterioration in U.S. -- Turkish relations since 2003 [Iraq war]
is deeply distressing to all of us who have worked so hard to
strengthen our friendship," said former senior Clinton Administration
official Richard Holbrooke at the May 10 Brookings Institution lecture
sponsored by Turkey's Sabanci Group, a large business conglomerate.

Amb. Holbrooke appeared to blame the Bush Administration for "not
communicating sufficiently clearly with Turkey" on Iraq issues
resulting in persistent tensions. He described Turkey as an
"indispensable front-line state against extremism" and said he
believed "in a future for Turkey as an integral part of the Western
world, its alliances and its institutions, including eventually the
EU."

While saying that "it is entirely up to the people of Turkey, acting
democratically, to decide how to proceed both internally and with
respect to the dangerous neighborhood in which Turkey lives," Amb.
Holbrooke cautioned Turkey on its recently intensified ties with
Russia and Iran. On Iran in particular, he expressed a hope that
"rumors that one hears [about Turkish-Iranian cooperation] are not
true."

Referring to Turkey's threats to invade Iraqi Kurdistan, Amb.
Holbrooke recalled that the Clinton Administration approved a
"limited" Turkish operation in 1995, but that things have changed
since then. He said that while he is not "advocating" Iraqi Kurdish
independence, it needs to be acknowledged that most of the Kurds in
northern Iraq want it.

Amb. Holbrooke also briefly alluded to Turkey's issues with Armenia,
which he said are marked by "the burden history still places upon that
ancient relationship."

While expressing a wish "not to interfere in [Turkey's] internal
political issues... at a fragile moment in [its] history," Amb.
Holbrooke emphasized that as Turkish political process should
"demonstrate conclusively that in Turkey... the rule of law is
paramount."

The Turkish military recently forced the government to hold an early
election prompting a warning from the European Union but eliciting no
reaction from the Bush Administration (see April 28 Reporter for the
relevant analysis.) The early general election is now scheduled for
July 22.

A former U.S. Ambassador to the United Nations, who in the 1990s led
the U.S. effort to deal with conflicts in the Balkans, Amb. Holbrooke
has long been seen a top pick for the Secretary of State in a
potential future Democratic Administration.

* Caucasus experts gather in Washington

On May 10-11, the Kennan Institute at the Woodrow Wilson Center for
International Scholars hosted several dozen experts from U.S., Europe
and Russia for an inter-disciplinary conference on the Caucasus
chaired by the retired U.S. Ambassador Richard Miles.

Amb. Miles, who was the first U.S. Ambassador to Azerbaijan
(1992-93) and later to Georgia (2002-05), as well as another former
U.S. government official in the audience Wayne Merry noted that there
is very little government-academia cooperation on the subject of the
Caucasus.

Discussions of the wider region, both the independent states of the
South Caucasus and the Russian North Caucasus included consideration
of politics and economics together with anthropology and sociology.
Speaking at a concluding session, Tom de Waal of the London-based
Institute for War and Peace Reporting (IWPR) described the Caucasus
with its intersection of cultures as a "post-modern region" where no
overarching theory explains particular behaviors.

Many discussants highlighted the persistence of the Soviet past in
the region. Sufian Zhemukhov from Russia's Kabardino-Balkaria argued
that the fall of the Soviet Union resulted in the "loss of future" for
many in the Caucasus, leaving a vacuum that has not been filled by
either the West or neighboring Turkey or Iran. Georgi Derluguian of
the University of Chicago suggested similarity with the French
colonial Africa, with individuals losing opportunities for social
mobility and as a result frequently turning to extremism.

De Waal noted that Russia's influence on the Caucasus, while
receding, remains unparalleled by any other power. (See the next
Reporter for an interview with de Waal about his 2001 book on the
Karabakh conflict, which he terms the region's "biggest problem" and
his view of what to do about it.)

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

3. "We know where you live"

* A threatening letter is sent to Turkey's Armenian schools

Istanbul -- Armenian schools in Turkey are receiving threatening
letters, reported the independent Turkish news agency Bianet
(www.bianet.org) in a May 16 news item.

According to the report, several major centers of Armenian eduction
-- the Esayan, Tibrevank, and Getronagan high schools, and the Levon
Vartuhyan, Karagoezyan, Dadyan, Yesilkoy, and Tarkmanchats primary
schools -- have received the threatening message, which featured the
headline "Last Warning."

The messages go on to say that the business and household addresses
of Armenians are well known to the sender, who also promised to
scrutinize the daily activities of Armenians.

"It will be obvious how many Turks and how many Armenians there are,
and you will be the ones to count the coffins," the letter read. The
author identified himself as "Temel Malatyali," or Temel from Malatya.
The name was followed by the following address: "Blacksea Quarter,
Trabzon Street No. 3/1, Avcilar (Hunters) Istanbul."

The threatened schools have reported the situation to Turkey's
security forces, to its Ministry of Education, and to the Armenian
Patriarchate. The Turkish authorities have given assurances that they
will take any necessary precautions, and that civil police officers
will be stationed around the schools.

The letter contains several references to recent events. In a
reference to the funeral of Hrant Dink -- which revealed an evident
sympathy on the part of some Turks for the Armenian minority in Turkey
-- the threatening letter said that slogans like "We are all Armenian"
and "We are all Hrant" should be considered signs of racism, and an
incitement to riot.

The message also referred to the April 27 declaration by Turkey's
military that it would actively impede and halt the election of any
presidential candidate it opposed. The e-mail said: "This is the last
declaration; there won't be another one."

The threatening message concluded with the words of Mustafa Kemal
Ataturk: "We would like to see the reaction against these separatist
groups and terror organizations as soon as possible." Mustafa Kemal
originally issued that call for action to the Armenians in Turkey,
calling on them to show their loyalty to the state by combating the
efforts of dissident factions.

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

4. Gohar Gasparian, the Armenian Nightingale, is mourned

* 83-year-old renowned soprano headlined two dozen operas

YEREVAN -- Armenian opera diva Gohar Gasparyan, who had suffered a
stroke three years ago, died Wednesday afternoon at the age of 83. The
Cairo native was a world-renowned soprano, honored as a "National
Artist of the USSR." She was a recipient of the Mesrop Mashtots Order
from the Armenian Apostolic Church. After moving to Armenia in 1948 at
the age of 24, Ms. Gasparyan starred as the lead in two dozen operas
at the National Theater of Opera and Ballet. She also taught at the
Yerevan Conservatory and was known as one of the bright stars in the
world of opera, the Armenian Nightingale. Her voice was used in many
HyeFilm studios features, including the title character of Anush in
1983.

A public farewell is scheduled for Saturday, May 19, at the Opera
House. Gohar Gasparian will be buried at the Komitas pantheon.

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

5. Armenia impresses, but doesn't win, in Eurovision 2007

* But singer Hayko has earned news fans in Armenia and Europe. The
Fins even named an island after him.

by Betty Panossian-Ter Sargssian

YEREVAN -- May 12 was the long-awaited date for the Eurovision Song
Contest 2007 finals, hosted by last year's winner, Finland, in
Helsinki. The show opened with a monstrous cry from "Lordi," the
masked victor of Eurovision 2006. It closed with a poetic prayer from
the new winner, Marija Serifovic.

The ballad titled Molitva -- "A Prayer" -- performed with
heartrending emotion by Serifovic, a young Serbian girl, beat the
other 23 entries in a competition dominated by Eastern European
countries. The classy song performed in Serbian had conquered hearts
long before the final show, and was a favorite for weeks leading up to
the contest. This was Serbia's debut performance in the competition,
and its "beginner's luck" was something of a milestone, since no
first-time entry has ever before won a Eurovision competition, since
its inception in 1956.

The Eurovision Song Contest was actually conceived in 1955 in
Monaco, inspired by a popular Italian festival, San Remo. It
officially launched in Switzerland the following year, under the title
"Eurovision Grand Prix," with only seven participating countries.

The number of participating countries has increased dramatically
since then, with a record 42 countries taking part in 2007.

This year's victor, Serbia, won with 268 points, topping the
Ukraine's 235. Russia came in third with 207 points, and Turkey fourth
with 163 points. Armenia, with its total score of 138 points, took
eighth place.

* Diaspora votes count

A noticeable trend in recent years has been "political voting" for
Eurovision contestants. With an international broadcast audience
casting its votes for the performers, the pride of diaspora
communities as well as the "native son" sentiments of neighboring
countries have a definite effect on the outcome. This year, Serbia was
awarded the competitor's maximum score of 12 by five of its eight
neighbors. Armenia itself received its two highest scores from Turkey
and Georgia -- although this might be attributable less to the good
will of neighbors as to outbursts of defiant pride from the countries'
furtive Armenian populations.

The Armenian representative in Eurovision 2007, Hayko, also received
high marks from countries with wealthy Armenian communities: France,
Belgium, Russia, and Poland each gave 10 points, while 8 points came
from Cyprus and Bulgaria, and 6 points from Greece.

Armenian voters, as expected, gave their highest scores to Russia and Belarus.

Hayko's song, "Anytime You Need," also garnered good scores from the
Czech Republic, Netherlands, Spain, and Austria. Indeed, an important
(though not the sole) factor in Armenia's final standing within the
Top 10 is the strong support it received from Europe's diaspora
communities.

"One problem in the Eurovision contest is that tastes differ in the
northeastern and southwestern European countries," said Armen
Arzoumanian, the executive director of the Armenia's National
Television, at a press conference soon after the Armenian delegation's
return from Helsinki. A contestant who found "a formula ... to unite
those two poles of Europe -- a song, a composition that could collect
all the votes" -- would win the competition, he said.

* Change of heart in the homeland

It's been a long time since Eurovision launched anyone's career or
turned someone into an international star: the last one was Celine
Dion, who won for Switzerland in 1988. But competing on Eurovision
hasn't harmed Hayko's career, either, as some in Armenia felt it
would. In fact, the choice of Hayko as Armenia's representative
generated some dissatisfaction among his countrymen.

Despite the backing of Armenia's Public Television, and his legion
of fans, Hayko was not cared for by the public at large. He is
handsome and knows how to interact with audiences; but he lacks the
dynamic charisma of last year's representative, Andre, and his vocal
abilities fall short of other Armenian pop stars.

Not the least indictment against Hayko was the fact that he had
recently been named an honored artist of Armenia by a presidential
decree. To the Armenian public, Hayko didn't need Eurovision to bring
him stardom. But the Helsinki contest could be a doorway to the larger
European audience, and indeed Hayko has already made plans for
European and American tours in the coming months.

But only after he tours Armenia first. For his showcase in Helsinki
does seem to have changed native Armenian minds about Hayko's virtues.
His emotional performance resonated through the television screens
into the hearts of his countrymen. "Right after his performance, it
was clear to me that whatever rank he occupied in the final results,
Hayko would be victorious in Armenia," said Armen Arzoumanian.

Many were impressed by Hayko's unexpected charm and confidence at
the stadium -- qualities that had gone unseen in his previous live
concerts and videos. His performance left many Armenians open-mouthed
and pleasingly shocked.

"My feelings towards Hayko and his song are definitely altered after
Eurovision," Astghik, a young viewer of the contest, told the
Armenian Reporter. Though she did not consider herself a big fan,
"Hayko's performance on Eurovision was so powerful, so beautiful, that
it took me completely over."

Her friend Nareh agreed: "I didn't think much of Hayko, either. I
couldn't imagine that one day I would love him and his song so much"

"My most important victory," said Hayko himself, "is that all this
was done for our country, for its image. And another important victory
is that Armenians living in Europe were extremely excited."

* An Armenian fairytale

"The team accompanying me to Helsinki may be the best choice I have
made in my life," Hayko said. He credits part of his successful
performance to his backup vocalists, Goga and Tigran Petrossian, who
"where fighting for first place" alongside the headliner, and for a
short time brought Armenia into the Top 5.

Appropriately, the performance that won acclaim for Armenia was
built around some native themes and images. The set for Hayko's song
included a "wishing tree" -- a traditional and distinctive Armenian
element -- decked out in red, with white "wish ribbons" hanging off
its branches. Hayko performed a sweet love ballad, "Anytime You Need"
(with lyrics by Karen Kavalerian, and music by the singer) the last
chorus of which is sung in Armenian. The song, which speaks of love,
separation, and undying devotion, is part of the soundtrack of Dou mi
vakhetsir ("Don't be afraid"), a new film about the Nagorno-Karabakh
war.

Other aspects of Hayko's showcase conveyed a more fairytale quality,
with the handsome young singer playing the role of Prince Charming,
dressed for a royal ball, his accompanists masked in red feathers and
face makeup. The drummer vaguely resembled an Indian, while the duduk
player could have passed for a snake charmer out of 1,001 Arabian
Nights. Romantic red dominated the stage, highlighting Haiko's
passionate singing, and the song concluded with red hearts and ribbons
projected on the huge background screens.

Even with all this, however, Haiko's show struck a decidedly
conservative chord compared to the some of Eurovision's other campy,
extravagant acts. And Hayko himself was composed and confident
throughout, moving his upper limbs but little else on stage -- in
contrast to the jerky unrestraint of last year's Armenian
representative, Andre.

"The moment the performance ended," said Armen Arzoumanian, "many
congratulated us, saying that Hayko's song was a breath of fresh air
amid all the musical turmoil."

* Hayko on the map

One other remarkable development emerged from Hayko's time in
Helsinki: his name has been immortalized in the very geography of
Finland. The Armenian-Finnish Union, with support from other diaspora
entities, has officially named an island after the singer. "It was
associated with the romantic theme of our song, because that island
was known to be a place for making wishes," Hayko explained.

Now, with Eurovision behind him, Hayko may have to face higher
expectations from his audience. But he appeared undaunted. "I am so
excited after Eurovision, and am full of the energy coming to me from
all of you," he told fans. "I have proclaimed this year to be an open
year for Hayko, and want to write lots of new songs -- not only for
me, but for others, too."

Of course, the very minute Eurovision 2007 ended, speculation began
as to who would represent Armenia in next year's contest.

"I just want to call on all Armenian composers to start thinking
about composing a song for the contest," Armen Arzoumanian said.
"Songs for Eurovision do not fall from the sky!"

But according to Eurovision rules, to qualify as an entry a song
cannot debut until October 1. So, to anyone reading this who thinks
they can compose or perform a song to be taken to Belgrade (the site
of Eurovision 2008), consider yourselves invited to apply. Just make
sure you don't hum your tunes in public until October.

Information on Eurovision, along with audio and video downloads, are
available online at www.eurovision.tv and www.eurovision.am

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

6. Market update

by Haik Papian

A. Rates

Yield to maturity of T-bills in Armenia shows that investors require
higher rates for higher risks that are connected with uncertainty in
the future: the yield curve looks normal and forward rates are stable
over time.

At the same time we can see a clear distinction among bills with a
maturity of less than one year, more than one year but less than seven
years (treasury notes), and more than seven years (treasury bills).
This could be explained generally by two factors: thinking inertia of
investors (they divide securities in three groups and treat and
measure them accordingly), and the relatively small market in
government securities (the amount of securities outstanding is not
large, and the number of market participants is small).

The diagram shows the exchange rate fluctuations for AMD/USD and
AMD/EUR currency pairs. The base day is May 2.

The exchange rate quotation is given in European terms, and the
percentage decrease or increase in the diagram means respectively
appreciation or depreciation of the Armenian dram.

Starting on May 2, the Armenian dram appreciated against both the US
dollar and the euro. The pace of appreciation of the dram is higher
against the euro, which can be explained by the depreciation in the
same period of the euro against the dollar in international foreign
exchange markets.

On May 12, elections for Armenia's National Assembly took place. The
trading sessions after that day show that the foreign exchange market
remained stable. There were no radical fluctuations.

On May 16 the exchange rates were:

AMD/USD 355.59

AMD/EUR 481.40

B. Corporate securities

Cascade Investments placed 250 mln AMD (approx. $700K) of Ararat Bank
CJSC one-year Armenian-dram-denominated notes at May 10. These are 2
percent quarterly coupon paying notes, which makes their effective
annual yield 8.24%. The notes were placed at par. The fixed income
securities issue was unique in the number of investors who
participated. Among 44 subscribers, 32 were physical persons and 12
were legal entities. Ararat Bank CJSC intends to establish itself as a
quality security issuer and gradually prepares for an IPO on the local
and suitable foreign markets.

C. Indexes

Cascade Business Sentiment Index (CBSI): The Cascade Business
Sentiment Index is our approach to forecasting sentiment about
Armenia's business trends. The Sentiment Index is based on a survey,
the respondents of which are a group of individuals who own or operate
stable and growing businesses in Armenia. The survey measures the
business owners' expectations for the near future by addressing to
them questions and calculating the weighted average of their replies
on a numerical scale (from 1, the most pessimistic, to 10, the most
optimistic). The Cascade Business Sentiment Index currently is 6.3, a
3.08 percent decrease over the last indicator. The decrease can be
explained by the expectations of market participants as the political
situation after the elections contains some uncertainties. On the
other hand the stabilization of exchange rates acts as a positive
signal for businesspeople.

Cascade Commodity Index (CCI): The Cascade Commodity Index is 15120.
The index, which is the average retail price in Armenia for certain
commodities, indicates a monthly increase in the last few months. This
increase is caused mostly by the increase of petroleum price from 310
to 360. Currently oil prices have stabilized. The commodities tracked
by the index are (1) petroleum (20 liters); (2) steel (100 kg); (3)
pork (10 kg); (4) flour (10 kg); (5) corn oil (10 liters).

D. Major market events

The well-known Swedish exchange operator/owner OMX Group announced its
decision to take over the Armenian Stock Exchange (Armex). It will
also acquire the Central Depository. The transaction is expected to be
completed in September of this year. This change will make
Armex-listed companies visible on the all OMX-operated platforms.
These are in Nordic countries and the Baltic states. This means, most
importantly, exposure to institutional investors in northern Europe.
Thus it will make listing on the Armex floor much more attractive for
those corporations that plan to attract foreign capital for expansion.
Also, Armex members themselves will have easier access to other
OMX-associated platforms.

* * *

Haik Papian, CFA, is CEO of Cascade Investments. He can be reached at
[email protected]. For charts, see the print version of
the newspaper or the pdf version at reporter.am

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

7. Commentary: Local control, division of diminishing protest vote
decisive for Republican victory

by Emil Sanamyan

WASHINGTON -- Discussion of the just-concluded parliamentary election
in Armenia has focused primarily on the extent of its democratic
conduct.

But while legality of the process is unquestionably important,
elections themselves at their core remain a contest between political
forces for power. And political forces come to this day with various
levers, both hard and soft.

Grassroots, money, organization, as well as powers of persuasion,
credibility, and promise are all factors that in combination bring
victory to only a select few.

* The Republican phenomenon

Armenia's ruling party began in 1989 as a small self-defense force
with a big name. The "Army of Independence" was created by members and
sympathizers of the National Self-Determination Union (AIM) then as
now led by Soviet-era dissident Paruir Hairikian.

As the first post-Soviet Armenian government began to execute the
Soviet government's order to disband the military, the "Army" morphed
into the Republican Party (HHK or RPA) led by another former
dissident, Ashot Navasardian.

The main opposition force in 1991, AIM garnered less than one
percent of the national vote in 2003 and its remnants sat out this
year's election. In the meantime, a small opposition force in the
early 1990s, HHK has grown into the largest political party in
Armenia.

What is its secret?

First, it did not abhor compromise. In 1995 parliamentary election,
it became a marginal part of the Hanrapetutiun Bloc, dominated by the
Armenian Pan-National Movement (HHSh or ANM), which swept that vote in
a more decisive and substantially less democratic fashion than HHK did
this year.

Second, while in power, HHK retained its core principles that
reflected Armenia's traditionally conservative mainstream. In 1997,
HHK together with Vazgen Sargsian's faction within HHSh left the
ruling bloc over its leaders' intention to agree to serious
compromises in Artsakh.

Finally, once in power and led in turn by Vazgen Sargsian, Andranik
Margarian, and now Serge Sargsian, HHK went about consolidating its
influence and entrenching it locally. While opposition parties talked
about nationwide revolution, HHK swept municipal elections virtually
unopposed, established a large youth wing, and recruited many of the
country's biggest business owners.

* Controlled protest

In the 1990s, in Armenia as in other post-Soviet states the economic
decline, accompanying breakdown in the rule of law and governments'
inability or unwillingness to manage these challenges resulted in the
creation of a large protest electorate. This large stratum included
people with different priorities. For many it was overcoming poverty;
for others also a credible democratic government.

In Armenia, starting in 1996, and again in 1998, 1999, and 2003, the
existence of this protest electorate helped mount strong challenges to
incumbent governments. Inevitably, these challenges were led by the
so-called counter-elites -- former Prime Minister Vazgen Manukian,
former Soviet Armenian leader Karen Demirchian, and finally the
latter's son Stepan Demirchian.

But in recent years, as economic growth began to benefit an
increasing number of Armenians, the protest electorate began to
shrink. For a growing number of people, their personal well-being
began to be connected directly or indirectly to the powers that be,
and that also affected their voting preferences.

For many of those still in poverty or otherwise at odds with their
local Republican-dominated bosses there is Prosperous Armenia (BHK or
PAP) led by the simultaneously simple, powerful, and humanitarian
Gagik Tsarukian. In a fairly brief time he was able to fill much of
the void left by Karen Demirchian.

The fact that opposition parties ran without forming electoral
alliances had at least one positive result -- it provided citizens
with more choice than ever before and probably helped the turnout. In
the end, together with the vote for Tsarukian, this also helped dilute
the still-significant protest vote. As in the last election,
one-quarter of all of votes went to parties that failed to overcome
the 5-percent threshold.

With the exception of the ARF (Dashnaktsutiun), Orinats Yerkir
(Country of Law), and Heritage, the three parties that did win seats
in parliament, as well as the doubly misnamed United Labor Party
(MAK), the other political players appeared to count not on turning
out the vote but on their residual popularity, some form of vote
falsification, or power of the streets. They lost as a result.

* Making political history

Gurgen Arsenian's MAK was one of many businessperson-established
entities to run in the 2003 parliamentary elections. But unlike
several other richer individuals, Mr. Arsenian focused on a single
goal: winning over 60,000 votes for his relatively unknown party so it
could overcome the five percent threshold and enter the parliament.
And it did.

MAK set the same goal in this year's elections and it succeeded, but
with the higher overall voter turnout this voting bloc now amounted to
only 4.2 percent of the total and Mr. Arsenian was left out of
parliament.

MAK, along with Shavarsh Kocharian's small but value-added National
Democratic Party (it received under one percent of the vote) and even
more surprisingly, Artashes Geghamian's National Unity Party (3.6
percent) made Armenian political history by publicly admitting that
they were defeated.

This admission of defeat alone made this election unlike any other.

The opposition parties that did make it into parliament (and
according to the latest reports, Dashnaktsutiun may join them as well)
are expected to be much more active doing their work -- challenging
the government on the substance of its policies rather than seeking to
remove it through street protests or "boycotting" it (in other words
doing nothing).

Most obviously, the election gave HHK, perhaps in combination with
Tsarukian's BHK a solid mandate to govern. Perhaps even a stronger one
than the Unification (Miasnutiun) alliance of Vazgen Sargsian and
Karen Demirchian received in 1999.

With the upcoming presidential elections early in 2008 very much in
mind, the Republican leader Serge Sargsian is likely to move fast to
maintain the momentum.

* * *

Emil Sanamyan is the Washington Editor of the Armenian Reporter.

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

8. Commentary: Consider the hazards of uranium mining and milling

by Anne Shirinian-Orlando

In response to recent news about the Russian government's interest in
Armenia's uranium deposits, I would like to present a different
picture of the consequences for Armenia should the intent to mine and
mill uranium become a reality. While it is not clear how much uranium
exists in Armenia (Soviet geologists had estimated it to be low),
there seems to be an active interest in mining uranium in there. The
Greens Union of Armenia opposes mining; given Armenia's small size and
its aging nuclear power station, there is no desire to add to the
possibility of the country's nuclear contamination.

Uranium mining and milling will not make Armenia a master of "the
entire cycle of the peaceful exploitation of nuclear energy," as the
head of Russia's Federal Agency on Atomic Energy (Rosatom), Sergey
Kirienko, has said. After the mining and the milling stages, there
would still be a need for subsequent uranium enrichment, in order to
make nuclear fuel for both civilian and military use. Since the
enrichment would be done outside of Armenia, Armenia would have the
radioactive contamination from mining and milling, but no nuclear fuel
for weapons or for civilian use. Armenia would still have to import
the nuclear fuel to power its nuclear power plant.

The carcinogenic and mutagenic properties of nuclear radiation are
well known. I would like to summarize here the radiation hazards
involved in uranium mining and milling.

* Uranium mining hazards

Waste products: Piles of the so-called waste rock -- generated through
both "open pit" and underground mining -- often contain elevated
concentrations of radioisotopes compared to other rock. Another waste
pile consists of ore with too low a grade for processing. All these
byproducts threaten people and the environment via the release of
radon gas and of seepage water containing radioactive and toxic
materials. To keep water out of the mine during the operation, large
amounts of contaminated water are pumped out and released to rivers
and lakes. When the pumps are shut down after closure of the mine,
there is a risk of groundwater contamination from the rising water
level.

Exposure threats to mine workers: Miners are exposed to mine dust
and radon gas via three pathways: (a) inhalation or ingestion of
radium (a decay product of uranium, an alpha-emitter with a half life
of 1,600 years), and also inhalation of radon gas and radon progeny;
(b) exposure to external radiation (gamma radiation from uranium ore,
alpha radiation from radon gas); and (c) inhalation of uranium ore
dust.

Radium is absorbed by the intestine and carried to the bone, where
it can cause leukemia or bone cancer. Uranium itself is acutely
radioactive and toxic.

Studies done elsewhere in the world indicate that exposure to
radiation in the mine and from the mill tailings (radioactive scrap --
see below) can produce an epidemic of cancer, both for the miners
themselves and for the population living near the mines and mill
tailings. Typical diseases include throat, lung, liver and bone
cancers, as well as leukemia.

The Sydney Morning Herald (Nov. 23, 2006) said: "Cancer cases among
aboriginal people living near Australia's biggest uranium mine appear
to be almost double the expected rate, a study by the Federal
Government's leading indigenous research body shows." Helen Caldicott,
in her book Nuclear Madness, writes: "Of the 1,500 Navajo men
recruited in the 1940s through the 1960s from a simple farming life to
mine uranium at Cove and Red Valley, Arizona, 1,112 miners or their
families have filed for government compensation related to lung cancer
and other radiation induced diseases."

Longterm environmental effects: Another concern is that mines have
spills, leaks, and breaches of regulations, so that miners can end up
drinking uranium-contaminated water (as happened at Australia's
Jabiluka mine).

Consider this item on the legacy of uranium mining in Tajikistan,
from a report of London's Institute for War and Peace Reporting: "Over
a decade after uranium mining ended in Tajikistan, the country is
finally facing up to its nuclear legacy. Specialists estimate that
almost 55 million tones of uranium waste lie buried across the north
of the country, posing a major ecological threat. The waste could
remain harmful for hundreds of years. Making it safe would require the
kind of technology Tajikistan just does not possess" (IWPR Central
Asia Bulletin No. 394, July 2005).

* Hazards of uranium mill tailings

Ore mined in open pit or underground mines is crushed and leached in a
uranium mill: a chemical plant designed to extract uranium from ore.
In most cases, sulfuric acid is used as the leaching agent, but
alkaline leaching can also be used. The leaching agent not only
extracts uranium from the ore, but also several other constituents
like molybdenum, vanadium, selenium, iron, lead, and arsenic; thus the
uranium needs to be separated out of the leaching solution. The final
product extracted via the mill, commonly known as "yellow cake" (U3O8
with impurities), is packed and shipped in casks. Significant amounts
of radioactive scrap -- called "tailings" -- are generated through
the process, and these have to be disposed of.

Uranium mill tailings are normally disposed of -- dumped -- as a
sludge in special ponds or piles, where they are abandoned. The amount
of sludge produced is nearly equal to the amount of ore milled. At a
typical grade of 0.1 percent uranium, 99.9 percent of the material is
left over as scrap/tailings.

Apart from the portion of uranium removed, the sludge contains all
the constituents of the ore. Because long-lived decay products such as
thorium-230 (a gamma emitter with a half-life of 80,000 years) and
radium-226 are not removed, the sludge contains 85 percent of the
initial radioactivity of the ore. Radionuclides contained in uranium
tailings emit 20 to 100 times as much gamma-radiation as natural
background levels on deposit surfaces.

The radium-226 in tailings continuously decays to the radioactive
gas radon-222, the decay products of which can cause lung cancer on
inhalation. Some of this radon escapes from the interior of the pile,
and such releases are a major hazard that continue after uranium mines
are shut down. Since radon spreads quickly with the wind, people over
a wide area can receive small additional radiation doses.

Uranium mill tailings disposed of as sludge in piles or ponds are
completely unsafe. As another IWPR report detailed: "Environmental
officials in Kyrgyzstan are warning that a spate of landslides
threatens to contaminate large parts of the Fergana valley with
radioactive waste. Landslides caused by rains occur annually. But the
downpours have been unusually heavy this year, and the mudslides they
create are made worse by the deforestation of mountain slopes that has
taken place over the last decade. Analysts now fear that toxic waste
dumped 30 years ago at a disused uranium mine near the town of
Mayluu-Suu could be washed away in a torrent of mud" (IWPR, May 5,
2003).

Due to technical limitations, all of the uranium present in the ore
cannot be extracted. Therefore, the sludge also contains 5 to 10
percent of the uranium initially present in the ore. The sludge also
contains heavy metals and other contaminants such as arsenic, as well
as chemical reagents used during the milling process. Because the
constituents inside the tailings pile exist in geochemical
disequilibrium, other reactions can result which pose additional
hazards to the environment. For example, in dry areas, salts
containing contaminants can migrate to the surface of the pile, where
they are subject to erosion. If the ore contains the mineral pyrite
(FeS2), then sulfuric acid forms inside the deposit when accessed by
precipitation and oxygen. This acid causes a continuous automatic
leaching of contaminants, including the radioisotopes. Only after
hundreds of thousands of years will the radioactivity of the tailings,
and thus its radon emanation, have decreased so that it is only
limited by the residual uranium contents.

* Conclusion

The issue of uranium mining and milling needs to be discussed in
Armenia's Parliament, where the people can have the opportunity to
debate and decide for themselves whether to proceed with mining and
milling. The consequences will be borne, after all, by the inhabitants
of the mining region (Siunik, in this case) and not by the government
ministers involved in decision-making currently. The will of the
people must play a role in making that decision.

* * *

Anne Shirinian-Orlando is New Jersey-based U.S. coordinator for the
Greens Union of Armenia, headquartered in Yerevan; the union's
president is Dr. Hagop Sanasarian. The Greens Union's Armenia offices
can be contacted via e-mail at [email protected]; Dr.
Shirinian-Orlando can be contacted at [email protected].

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

9. Editorial: A democratic Armenia

Perhaps the most important thing to come out of the elections held in
Armenia on May 12 was the renewed confidence with which the people of
Armenia can look each other in the eye and say they live in a
democracy. This confidence will help the new government as it sets out
to lead the country. It will also make for a more engaged electorate
going into the presidential elections a mere nine months away.

This engaged electorate will see a political field that has been
reshaped in some significant ways.

The Republican Party of Armenia, which needed a coalition to govern
after the 2003 election, is now in a position to do so on its own. Its
leaders have indicated a desire to cooperate with other forces, and it
remains to be seen whether they will take sole responsibility for the
state of affairs in the coming few years. This party has changed
leaders twice in the past few years, but has remained coherent.

The party nominated the owners and managers of some of Armenia's
biggest businesses as its candidates for parliament, and as such it is
heavily associated with big business. This association makes it
especially important -- and especially challenging -- for the
governing party to fight corruption, especially tax-dodging and unfair
competitive practices.

It is unlikely to come under much pressure to do so from the
Prosperous Armenia Party, which emerged from naught to capture 26
seats in the National Assembly. It too is closely associated with the
power of big money. It will, however, have a chance to differentiate
itself from the Republic Party over the term of the parliament.

Offering a social-democratic alternative to the orientation of the
first two parties is the Armenian Revolutionary Federation. Over the
past four years, the party had a chance to show some of what it could
do as a party of government and build administrative cadres
(ministers, deputy ministers). In this election, it gained the trust
of a larger number and proportion of voters than before. It now faces
decisions as to the role it will take upon itself somewhere between an
alliance with the Republican majority and opposition to it.

The Country of Laws Party came out of the 2003 elections with the
second-largest number of seats and was part of the coalition
government until early 2006; it has been part of the opposition since
then. The party is led by Artur Baghdasarian who -- as this page has
noted before -- appears overly reliant on Western powers for support.
Now in fourth place, it is the largest unequivocally opposition party
in parliament.

Raffi Hovannisian's Heritage Party made an impressive first showing,
winning 7 seats in parliament with 6 percent of the vote. The party
won a plurality of the vote in parts of Yerevan and polled reasonably
well outside the capital as well. Its great asset is its founder's
reputation for integrity. Many Armenians will be looking to the
Heritage Party to hold the governing parties accountable for their
conduct over the coming years. Among its challenges will be to
demonstrate political maturity and develop a solid rank and file.

A full quarter of the vote in this election went to parties that did
not win at least 5 percent of the vote. The purpose of the 5-percent
threshold is to encourage political consolidation. A two-party system,
such as that in the United States, may be said to give voters too few
choices. But 23 parties in an election is unwieldy, and we can expect
to see some healthy consolidation going into future elections.

* * *

As for the election process itself, foreign and domestic observers
agree that it was free and fair though not flawless. The parties and
individual candidates were able to reach voters in person and through
the mass media. Most parties offered platforms for voters to consider,
and voters were exposed to serious debates about the feasibility and
the relative merits of the various proposals. As a well-informed
electorate went to the polls, their votes were counted honestly and
the announced results corresponded to the votes actually cast.

The most prevalent credible complaint is that voters were offered
inducements to vote for certain parties. There is evidence that many
voters were not swayed by such inducements, but there is little
evidence that the prosecutor general has taken serious and systematic
steps to prevent the buying and selling of votes. All parties need to
understand that the penalties for such fraud are serious and the risk
of getting caught is dangerously high.

* * *

May, we wrote two weeks ago, is a month of victories for Armenians.
For a nation that has struggled long and hard for freedom and
independence, the conduct of the May 12 elections-- where an informed
electorate conscientiously made important choices about its future --
is a new triumph. We appreciate all who ran and all who voted. Those
who received the people's mandate this week have our best wishes for
success as they set out to fulfill their commitments.

Armenians in Armenia and throughout the world can and should proudly
support Armenia as it confronts old and new challenges in the weeks,
months, and years ahead.

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

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