US embassy cable - 03YEREVAN2883

S E C R E T SECTION 01 OF 03 YEREVAN 002883 
 
SIPDIS 
 
DEPT FOR EUR/CACEN; PM FOR ABREITER 
SECDEF FOR PWATSON 
 
E.O. 12958: DECL: 12/02/2013 
TAGS: AJ, AM, GG, MARR, PARM, PGOV, PREL, PTER, TU 
SUBJECT: SEVENTH ANNUAL STRATEGIC DIALOGUE HELD IN YEREVAN 
 
 
Classified By: Ambassador John Ordway 
 
 1. (U) Classified by Ambassador John Ordway for reasons 1.4 
(b&d). 
 
2. (C) Summary.  The seventh US-Armenian Strategic Dialogue 
took place in Yerevan November 20.  The sides discussed 
regional security, defense cooperation, and cooperation on 
counter-terrorism.  The delegation heads, EUR DAS Lynn Pascoe 
and Deputy Foreign Minister Tatul Margarian t examined issues 
of regional concern and identified future areas of 
cooperation.  Though the Ministry of Defense registered 
reservations regarding a defense assessment and the 
deployment of additional forces to Iraq, the meeting was 
generally upbeat and positively assessed US-Armenian 
cooperation to date. End summary. 
 
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I. Regional Security Issues 
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Turkey: "Incremental" Progress towards Normalization 
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3. (C)  Karen Mirzoyan, Head of the MFA's Middle East 
Department, stated that relations with Turkey remained the 
most important issue in Armenia,s foreign policy.  He 
confirmed that recurring contact between the GOAM and GOT had 
taken place at the ministerial level.  Mirzoyan also reported 
some progress in efforts to open the border between the two 
countries, as the GOT had seemingly relaxed its stand on 
pre-conditions to opening the border. The GOAM supported 
incremental steps towards reconciliation even before 
establishment of diplomatic relations.  This policy included 
a recent proposal by Foreign Minister Oskanian that the GOAM 
and GOT formally announce an open border for diplomatic 
passport holders and third country nationals, and would also 
entail greater contact between Armenian and Turkish 
businessmen.  Deputy Foreign Minister Tatul Margarian said 
that economic relations with Turkey were of increasing 
importance, considering the continued instability in Georgia, 
Armenia,s prime commercial conduit.  DAS Pascoe stated that 
the senior GOT leadership had recently indicated that their 
policy towards Armenia did not make practical sense.  He 
encouraged the GOAM to engage in active public relations 
measures to undermine falsehoods in the Armenian public,s 
perceptions about Turks and Turkey. 
 
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Iran: A Strategic Partner By Default? 
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4. (C)  Mirzoyan, who is also responsible for Iran, stated 
that due in large part to Armenia's political and economic 
isolation, Iran remained an important strategic partner.  He 
said that Armenia had three aims in its policy with Iran: a 
strategic partnership that sought to balance the influence of 
Turkey in the region; energy partnerships that would lessen 
Armenia,s dependence on other suppliers; and trade and 
transportation ties that help to relieve the effects of the 
closed borders with Azerbaijan and Turkey.  Pascoe reiterated 
US concerns over Iran,s WMD programs, human rights abuses 
and support for terrorist groups. 
 
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Georgia: Stability Vital, But Lacking 
-------------------------------------- 
 
5. (C) Margarian joked that at times it seemed the GOAM was 
more interested in stability in Georgia that within its own 
borders.  He expressed concern that continued disturbances in 
Georgia after the recent parliamentary elections could have a 
large impact on Armenia,s continued economic growth.  The 
GOAM was particularly worried about the deteriorating 
situation in Ajaria, a transit area for part of Armenia,s 
trade with Europe and Russia (note. Most trade moves through 
Poti rather than Batumi.  End note.).  Margarian speculated 
that it was perhaps time for change in Georgia, but stated 
that the GOAM is prepared to work with whomever is in power 
in Tblisi (though they feared an increased role for Ajarian 
leader Aslan Abashidze).  Pascoe agreed that the situation in 
Ajaria was troubling, with Abashidze apparently making a play 
for increased political power, and urged the GOAM to take any 
steps it could to calm the situation.  (Note. The meetings 
were held in the week prior to Shevardnadze's resignation on 
November 23. End note.). 
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Azerbaijan: "Relations Close to Zero" 
------------------------------------- 
 
6. (C) Margarian acknowledged that in the past year, 
"relations with Azerbaijan were close to zero."  He said that 
the GOAM was waiting to see if newly elected Azeri President 
Aliyev would take any initiative to resolve the Karabakh 
conflict, and that Armenia was prepared to restart 
negotiations if Aliyev desired.  Pascoe expressed optimism 
that Aliyev would wanted to move forward in relations with 
Armenia, but both sides had to take substantive steps to 
prepare their respective publics for inevitable compromises 
and concessions. 
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Iraq:  No Decision on Additional Deployments 
-------------------------------------------- 
7. (S) Margarian expressed hope that the situation in Iraq in 
Iraq would soon stabilize and a thorough re-building process 
could get underway.  He noted that Armenia had a particular 
interest in a secure environment in Iraq, considering the 
long-term effects for regional stability and the difficulties 
faced by ethnic Armenians in the country.  The GOAM was 
concerned that the lack of adequate medical facilities and 
schools in Iraq would lead to the emigration of the Armenian 
population.  Margarian confirmed the GOAM,s desire to 
contribute to stability operations in Iraq, stating, "it is 
our duty to participate in this mission."  He indicated that 
Armenia and Kuwait would soon conclude a SOFA agreement, 
initiated after Armenia volunteered to deploy medical and 
demining units to Iraq.  Pascoe raised the issue of the 
recent request by the United States for Armenian deployment 
of 50 military cargo trucks and ten tractors for combat 
support operations.  Margarian acknowledged receipt of the 
request, and stated that he wished it had been made earlier. 
The GOAM hoped to have an answer to the United States soon. 
 
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II. Defense Cooperation 
----------------------- 
 
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Current Cooperation 
-------------------- 
 
8. (C) Major-General Mikhail Melkonian, Head of the Foreign 
Liaison Department at the Ministry of Defense, provided an 
overview of two years of U.S.-Armenian military cooperation. 
Melkonian stated his belief that the previous day,s meeting 
between Deputy EUCOM commander General Charles Wald had 
"strengthened and crystallized the relationship."  Melkonian 
identified four main areas of cooperation: U.S. assistance in 
military communication upgrades; U.S.-supported military 
education programs; the Humanitarian Demining Program; and 
the State Partnership Program initiated with the Kansas 
National Guard.  Melkonian welcomed Armenia's recent 
signature of the NATO PfP SOFA, though he blamed the delay in 
the signing of the document on NATO.  He further pressed the 
United States to agree to the Acquisition and Cross-Servicing 
Agreement.  According to Melkonian, the two agreements 
"provided full legal basis for our cooperation."  Pascoe 
reiterated that the US valued its partnership with Armenia, 
though the partnership had not developed as quickly as the 
United States had hoped.  Pascoe stressed the need to speed 
progress, but "at a pace that is comfortable to you." 
 
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Broadening Cooperation: Defense Assessment, Art. 98, Iraq 
--------------------------------------------- ------------ 
 
9. (C) Pascoe raised US priorities for future defense 
cooperation.  He stressed the prime importance of Armenia 
allowing a defense assessment by the United States.  Pascoe 
explained that the assessment would be of use to justify FMF 
funding requests to Congress, and assist the Armenian Armed 
Forces in identifying areas in which their forces could be 
reformed and made more efficient.  Melkonian raised strong 
objections to an assessment, questioning its necessity as the 
United States was "fully familiar" with the Armenian defense 
structure.  Melkonin asserted that defense reform could not 
even be considered until settlement of the Nagorno-Karabakh 
dispute, and that the current priority was maintaining 
existing forces.  Pascoe responded by reiterating that an 
assessment was not "an intelligence issue," and that if 
Armenia was concerned over the intrusiveness of the action, 
than third parties could be found and involved. 
10. (C) Melkonian praised ongoing U.S.-Armenian military 
education and exchange programs but added that he would 
welcome greater coordination in order to ensure that courses 
met the needs of the Armenian military.  He requested that 
Armenia be allowed to use some of its IMET funding to improve 
military education institutions in Armenia. 
 
11. (C) Joan Corbett, Special Advisor to Under Secretary 
Bolton, stressed the importance of quickly concluding an 
Article 98 agreement.  She stated that the agreements could 
take many forms, and were being sought with all countries. 
Corbett acknowledged that while Armenia is not yet party to 
the Rome Statute, conclusion of an Article 98 agreement with 
the United States would serve to broaden defense cooperation. 
 
12. (S) While discussing the future of US-Armenian defense 
cooperation, General Melkonian stated that he doubted Armenia 
could meet the U.S. request for additional combat support 
service deployment to Iraq.  He said that it would be 
"difficult at this time" to provide the number of trucks 
requested by the United States. 
 
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Future of Demining Program 
-------------------------- 
 
13. (C) Ambassador Ordway expressed his hope that the GOAM 
will focus attention on developing a "superstructure" for the 
Humanitarian Demining Program.  He identified three necessary 
developments for the program: the need to do a thorough mine 
survey in Armenia; the realization of civilian control of the 
program through the National Demining Action Committee; and, 
the creation of an effective marketing campaign to sell the 
program to the international donor community.  The Ambassador 
urged the GOAM to move forward on these issues in the 
following year, and not solely focus their demining efforts 
on continued training. 
 
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III.  Cooperation on Counter-Terrorism Issues 
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Counter- Terrorism, Non-Proliferation, and Export Control 
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14. (C) Tigran Agajarian, Head of the Counterintelligence 
Division at the National Security Service, presented 
Armenia,s counter-terrorism and non-proliferation efforts. 
He encouraged increased cooperation between the USG and GOAM 
in sharing intelligence about terrorist activities.  He noted 
the that the National Assembly had recently passed a bill 
establishing export controls for dual use goods, and 
requested U.S. assistance in training Armenian experts in 
this area. 
 
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Comment 
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15. (S) Though the delegations were in general agreement on 
the issues discussed, some fissures were evident, including 
on the Armenian side.  The Ministry of Defense and Ministry 
of Foreign Affairs appear to be at odds over the recent U.S. 
request for additional combat support forces to be deployed 
to Iraq.  While Deputy Foreign Minister Margarian promised an 
answer to the request quickly and hoped for a "positive 
response," the MOD representative dismissed the request as 
unfeasible at this time.  The MOD also seems strongly against 
any defense assessment undertaken by the United States, and 
denied that any reform of the military was necessary at this 
time. 
 
ORDWAY 
ORDWAY