US embassy cable - 04YEREVAN1972

C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 001972 
 
SIPDIS 
 
STATE FOR EUR/CACEN AND EUR/SNEC 
DEPT PLEASE PASS TO USAID 
 
E.O. 12958: DECL: 09/08/2014 
TAGS: PREL, EAID, KMCA, ECON, AM 
SUBJECT: AMBASSADOR PRESENTS CREDENTIALS TO PRESIDENT 
KOCHARIAN 
 
Classified By: Ambassador John Evans for reasons 1.4 (b/d). 
 
Summary 
------- 
 
1. (C) On September 4, 2004, Ambassador Evans presented his 
letters of credence to President Robert Kocharian.  The 
Ambassador conveyed warm best wishes from President Bush, and 
explained how U.S. goals for the South Caucasus -- enhancing 
security and stability, strengthening democratic institutions 
and fostering broad-based, market-oriented economic growth -- 
supported Armenia's own aspirations.  He thanked Armenia for 
its contributions to the war on terror and said that recent 
events in Russia made it doubly clear that all civilized 
nations should be fighting this war together.  Kocharian used 
the opportunity to thank the U.S. for its steadfast support 
for Armenia over the years and pledged to continue the close 
working relationship between his Government and the Embassy. 
He urged the U.S. --  the only country which had both the 
trust of all three governments and the power and influence to 
achieve results -- to continue to use its power and influence 
to find solutions to regional issues in the South Caucasus. 
End Summary. 
 
Presentation of Credentials 
--------------------------- 
 
2. (C) In an elegant, but relatively simple ceremony in the 
rotunda of Armenia's Presidential Palace, Ambassador Evans 
presented his credentials to President Robert Kocharian on 
September 4.  The event was well-covered by the Armenian 
press, and the Ambassador's formal remarks (forwarded in 
advance to EUR/CACEN) were positively received.  The 
President's office issued a press statement after the event 
that expressed appreciation for USG economic assistance, and 
particularly for support in developing Armenia's democratic 
institutions.  President Kocharian met with the Ambassador 
for nearly an hour after the presentation, accompanied by FM 
Oskanian and other senior advisers.  President Kocharian 
asked that the Ambassador relay his warm greetings to 
President Bush. 
 
Terrorism: We Are At War 
------------------------ 
 
3. (C) The terrorist attack in North Ossetia dominated the 
early part of the discussion.  "Our two countries are at 
war," the Ambassador said, and Beslan reminded us of how 
urgent our work is.  Kocharian pledged his continued support 
to global efforts against terrorism and noted how important 
Armenia's cooperation with the U.S. on intelligence sharing 
was to this effort.  We face a common enemy, Kocharian 
underscored, and we must make a cooperative effort to defeat 
them. 
 
Armenia Grateful for U.S. Assistance 
------------------------------------ 
 
4. (C) Kocharian thanked the USG for its steadfast support 
for Armenia's transition over the years, and particularly for 
its generous and essential assistance programs.  He said his 
government was working hard on its proposals for the 
Millennium Challenge Account (MCA) and asked whether any new 
information would be available soon.  The Ambassador said the 
U.S. Government was fortunate to have significant resources 
available for its programs of assistance, but that we could 
not expect such resources to be available indefinitely.  Both 
sides should take full advantage of this window of 
opportunity to produce results. The Ambassador said he had 
met with top MCA officials in Washington just before 
departing for Yerevan; new information for Armenia should be 
available soon, perhaps in time for meetings on the margins 
of the upcoming U.S. - Armenia Task Force in early October. 
 
We Appreciate Your Embassy's Dynamism 
------------------------------------- 
 
5. (C) Kocharian praised the work of Ambassador Ordway and 
said the two had enjoyed an active relationship.  He asked 
the Ambassador to continue the Embassy's dynamic approach to 
its work and to continue the practice of spending so much 
time and energy outside of Yerevan.  Kocharian was pleased 
the Ambassador had already reached out to the 
Armenian-American community; ties to the Diaspora are 
particularly important for Armenia.  The Ambassador said he 
planned to build on the strong record of Ambassador Ordway 
and his predecessors, and noted that he would continue the 
practice of regular outreach to the Armenian-American 
community. 
 
Resolving Conflicts in the South Caucasus 
----------------------------------------- 
6. (C) Kocharian thanked the Ambassador for the USG's drive 
to resolve regional conflicts and to enhance security in the 
South Caucasus.  He urged the U.S. to take on a still greater 
role on these issues as "the only country which had both the 
trust of all three governments and the power and influence to 
achieve results on security issues."  He asked the Embassy to 
continue to be in close touch with the Foreign Ministry on 
issues related to Nagorno-Karabakh.  The Ambassador said that 
the U.S. remained committed to supporting the countries of 
the South Caucasus as they resolve their conflicts and build 
stronger relationships, but stressed that the countries 
themselves must do all in their power to devise solutions. 
"We want Armenia and its neighbors to succeed."  The 
Ambassador said the Embassy would continue to support the 
work of the Minsk Group, but made it clear that Ambassador 
Mann, and not he, would be in the lead on all issues related 
to N-K. 
 
Resolving Conflicts Will Grow Armenia's Economy 
--------------------------------------------- -- 
 
7. (C) President Kocharian spoke at length about the 
importance of USG assistance in reforming Armenia's economy. 
We are beginning to see real results, Kocharian said, and the 
share of GDP produced by small and medium-sized enterprises 
continues to grow.  He agreed with the Ambassador that the 
fastest way to grow Armenia's economy would be to resolve the 
conflicts which limit trade with Armenia's neighbors.  The 
high cost of transport brought about by closed borders has 
clearly affected Armenia's development, Kocharian lamented, 
while noting that a certain amount of enforced import 
substitution had not been a bad thing for Armenia's 
producers.  He said the challenge for Armenia was now to help 
its small and medium-sized producers develop new export 
markets.  The Ambassador outlined how U.S. assistance 
programs were helping producers learn to market their 
products abroad.  Kocharian expressed appreciation for this 
assistance and for any help the USG could provide to 
encourage Turkey to open its border with Armenia. 
 
Defense Cooperation 
------------------- 
 
8. (C) President Kocharian noted the growing defense 
relationship.  He said that Armenia's transportation unit was 
nearly ready for deployment to Iraq; this unit's integration 
into the Polish-led force there would be a topic of his 
September 5-7 trip to  Poland.  He said his government was 
committed to completing a EUCOM-led Defense Assessment, but 
remained highly sensitive to any intrusion into defense 
issues related to Nagorno-Karabakh.  Kocharian pledged 
increased focus on issues related to NATO and PFP.  The 
Ambassador welcomed Armenia's assent to conducting a defense 
assessment and said that the USG understood Armenia's 
sensitivities.  He made it clear that the USG saw no inherent 
contradiction between U.S. and Russian interests in Armenia. 
Asked if he had any questions, the Ambassador said "no," and 
the conversation ended on a positive note. 
EVANS