US embassy cable - 04YEREVAN505

UNCLAS YEREVAN 000505 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/CACEN, EUR/ACE 
PM FOR ANN BRIETER 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, MARR, PARM, AJ, AM 
SUBJECT:  GOAM CALLS ON USG TO RECONSIDER FY 2005 FMF 
FUNDING LEVELS FOR ARMENIA, AZERBAIJAN 
 
1. (U) Sensitive but Unclassified.  Protect 
Accordingly. 
 
2. (SBU) Deputy Foreign Minister Ruben Shugarian 
demarched DCM February 26 regarding expected 
differences in FY 2005 military assistance levels for 
Azerbaijan and Armenia.  Shugarian delivered an eleven- 
point non-paper that called on the USG to reconsider 
the previously announced FMF assistance numbers.  He 
asserted that disparity of military assistance levels 
threatened GOAM's ability to maintain the current 
ceasefire with Azerbaijan.  The demarche pointed to 
"increasingly belligerent" statements made by 
Azerbaijani leaders as a result of increased USG 
military funding to Azerbaijan.  (Note:  The veiled 
reference presumably referred to comments made in the 
wake of the recent death of an Armenian soldier during 
a PFP training program in Budapest.  End Note.) 
 
3. (SBU) DCM responded by pointing out the global 
context in which the USG made decisions regarding FMF 
funds.  She highlighted USG priorities for fighting 
terrorism, maritime security and narcotics trafficking 
in the region and the relatively greater threats 
currently faced by Azerbaijan.  She said Azerbaijan's 
capacity to absorb higher levels of military funding 
also played a role in determining the FY 2005 level of 
funding.  She outlined the next steps in the budget 
request process and emphasized the role of the U.S. 
Congress. 
 
4. (SBU) Text of the non-paper follows: 
 
BEGIN TEXT 
--The Government of the Republic of Armenia is highly 
appreciative of the assistance provided by the United 
States of America to the people of Armenia through the 
years. 
--Through this assistance it has become possible to 
foster transition to a market economy, strengthen 
democratic institutions, and enforce protection of 
human rights. 
--Military assistance provided to Armenia in the last 
two years has been instrumental in enhancing the 
security of the country. 
--It was our strong belief that the US, as a co-chair 
of the Minsk Group and one of the main players in the 
Nagorno Karabagh dispute settlement, would act 
especially vigilantly not to jeopardize the fragile 
military balance presently existing in the region. 
--The military balance is the single most important 
guarantor of the existing self-monitored ceasefire. 
--The disparity between the levels of military 
assistance proposed for Armenia and Azerbaijan for FY 
2005 raises doubts about our assumption. 
--Increasingly hostile and belligerent statements from 
Azerbaijan are fueled by the belief that their military 
resources will indeed increase through various means. 
--Recent public statements by the Azerbaijani 
leadership clearly indicate that they are, at least in 
part, relying on a possible military venture in the 
future. 
--The Armenian government and the Armenian people 
relied on US assurances that a waiver of Section 907 
would not lead to a disparity in military assistance in 
the two countries. 
--The Government of Armenia is extremely concerned by 
the proposal of the US Administration and calls upon it 
to reconsider the decision, as well as to continue to 
act as an honest broker, and undertake all the 
necessary steps to ensure peace and stability in the 
region. 
--The Armenian government is prepared to discuss 
special projects that might fall within a broader 
security program, and useful in the war on terrorism. 
--Yerevan; February 27, 2004. 
END TEXT 
 
ORDWAY