US embassy cable - 04YEREVAN2597

C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 002597 
 
SIPDIS 
 
STATE FOR EUR. DAS LAURA KENNEDY, EUR/CACEN, EUR/SNEC AND 
EUR/RPM 
DEFENSE FOR OSD/EURASIA 
 
E.O. 12958: DECL: 12/02/2014 
TAGS: PREL, PARM, MARR, MOPS, AM 
SUBJECT: ARMENIA'S CHOD TALKS ABOUT IRAQ, AZERBAIJAN AND 
CLOSER TIES WITH THE U.S. 
 
 
Classified By: Ambassador John M. Evans for reasons 1.4 (b) and (d) 
 
Summary 
------- 
 
1.  (C)  In his first meeting with the Ambassador, 
General-Colonel Mikhael Harutiunyan expressed Armenia's 
readiness to send its military contingent to Iraq once the 
government had completed the necessary review and approval. 
He commented on the budgetary challenges facing the MOD and 
the attempts of both Armenia and Azerbaijan to increase their 
military capabilities.  The Ambassador inquired about the 
apparent acceleration of an arms race in the South Caucasus.. 
Harutiunyan repeated Armenia's desire to spend all of its 
available FMF funds on modernizing its military 
communications system.  End Summary. 
 
2.  (U)  On December 1, the Ambassador paid his initial 
office call on Armenia's First Deputy Minister of Defense and 
Chief of the Main Staff, General-Colonel Mikhael Harutiunyan. 
 With Harutiunyan was General-Major Mikhael Melkonyan, Head 
of the MOD's Department of Foreign Relations and Military 
Cooperation.  DATT and ODC Chief accompanied the Ambassador. 
 
U.S. Visit Praised 
------------------ 
 
3.  (C)  Harutiunyan opened by stating his gratitude to the 
U.S. for arranging his recent counterpart visit with the 
Chairman of the Joint Chiefs of Staff and proudly showed the 
Ambassador the Legion of Merit he was awarded during the 
visit.  He commented on the importance of the visit in 
developing deeper U.S.- Armenian military relations.  He 
praised the professionalism of the U.S. generals he met, 
noting that although U.S. generals represent the most 
powerful military in the world, they are not overbearing and 
Harutiunyan felt he was treated as an equal.  He contrasted 
this with the attitude of Russian generals, whom he described 
as "rude." 
 
Court Ruling on Iraq Deployment Postponed 
----------------------------------------- 
 
4.  (C)  Harutiunyan reported that the Constitutional Court 
would begin to review the terms of the planned deployment to 
Iraq on December 8.  He added that the Armenian soldiers are 
fully trained at ready to deploy at any moment.  He mentioned 
that Armenia is discussing the possibility of its soldiers 
using the trucks left behind when Hungary pulls its 
transportation unit out of Iraq.  He seemed to favor this 
option, noting that the Hungarian trucks were newer and more 
capable than the trucks Armenia is planning to deploy. 
Harutiunyan acknowledged that many Armenians are concerned 
about the safety of Armenian communities in the Middle East 
should the deployment go forward and stated that political 
opposition will try to use this to score points against 
President Kocharian. 
 
The Military Balance 
-------------------- 
 
5.  (C)  The Ambassador asked Harutiunyan to comment on what 
could be perceived as an arms race developing between Armenia 
and Azerbaijan.  Harutiunyan acknowledged that Azerbaijan has 
superior manpower and financial resources.  Armenia is 
therefore choosing to focus its resources on maintaining a 
high degree of training and readiness in the military.  He 
emphasized that the MOD will continue to modernize its 
military hardware, such as T-72 tanks and BMP armored 
infantry fighting vehicles to make them more mobile and 
capable.  He confirmed that the MOD is in the process of 
acquiring 10 SU-25 ground attack aircraft from Slovakia. 
 
6.  (C) The Ambassador then mentioned that Defense Minister 
Sargsyan had recently called for an increase in the defense 
budget for 2005.  Harutiunyan stated that these increase were 
necessary to provide across-the-board pay increases for the 
military and to compensate for the rise in costs associated 
with the fall in the value of the dollar.  He mentioned that 
this has affected prices in Armenia in general, but singled 
out fuel as one area of particular concern. 
 
7.  (C) Harutiunyan stated that the Azerbaijani military was 
in no position to undertake offensive operations, since it 
did not have the combat power to overtake Armenian defensive 
positions that have been steadily improved over the course of 
12 years.  Because of the entrenched positions on both sides, 
he predicted that whichever side initiated offensive actions 
in would lose any conflict.  Harutiunyan added that Armenia 
would not give Azerbaijan a pretext for restarting the 
conflict, but warned that Azerbaijan would attack as soon as 
it felt confident in the possibility of victory. 
 
8.  (C) Harutiunyan voiced his concern that a relatively 
minor incident along the line of contact could start a chain 
reaction which could lead to renewed hostilities.  At this 
point he noted that Azerbaijani forces had captured three 
Armenian soldiers who got lost in the fog along the 
line-of-contact three days earlier.  He claimed that 
Azerbaijan was not responding to Armenian attempts to discuss 
the release of the soldiers.  (Note: This is not the first 
time this has occurred; in a follow-up call, MOD officials 
told us that the three Armenian soldiers are now in Baku. 
Another Armenian soldier who wandered from his post was also 
taken by Azeri forces, claims the MOD.  Armenia has one Azeri 
soldier in custody and claimed it sought to make an exchange, 
but with no success.  End note.) 
 
9.  (C) Harutiunyan claimed Baku was increasing its military 
budget for 2005 by USD 57 million and that Azerbaijan was 
receiving military support from Pakistan and Saudi Arabia. 
He alleged that Azerbaijan had already exceeded its 
CFE-imposed limits for tanks by 50 percent and artillery by 
300 percent. 
 
Continued Focus on Military Communications 
------------------------------------------ 
 
10.  (C)  Harutiunyan took the opportunity to repeat his 
desire for the U.S. to permit Armenia to focus all of its 
available FMF funding on modernizing its military 
communications system until the project is complete.  He 
criticized the suggestion that Armenia consider spending FMF 
on its peacekeeping battalion before the communications 
modernization is finished, stating that this modernization 
effort should be completed as quickly as possible due to the 
danger of maintaining two incompatible communications 
systems.  After ODC Chief noted that the FMF program was not 
designed for long-term equipment procurement, he contended 
that the U.S. agreed in principle to allow Armenia to 
implement this project when Armenia declared its intention to 
fully modernize its military communications two year ago. 
Perhaps not noting the contradiction in his request, 
Harutiunyan repeated a request for the U.S. to help the MOD 
develop a peacekeeping brigade. 
EVANS