Azerbaijan, 1998

Allow me first of all to sincerely congratulate

the President on his unanimous election to the presidency

of the General Assembly at its fifty-third session, and to

express confidence that under his efficient leadership the

Assembly will cope successfully with the complex issues

before it.

I would like to express our special gratitude to

Mr. Hennadiy Udovenko, whose vast experience and great

professionalism greatly contributed to the success of the

previous session, and whose work as President during the

fifty-second session epitomized the United Nations

commitment to the process of transformation aimed at

enhancing the effectiveness of the Organization.

All aspects of life in Azerbaijan are covered by the

process of radical reform directed at creating a

democratic, secular society governed by the rule of law

and based on a market economy. In spite of the current

objective difficulties caused by the consequences of

armed conflict and the problems inherent in the

transitional period, Azerbaijan does not see any alternative

to the course of democratic transformation it has taken,

and considers the strengthening of its democratic

institutions a priority of its State policy.

Respect for fundamental political and civil rights and

freedoms, the functioning of the multi-party system, the

protection of the interests of each citizen in our society

irrespective of ethnic origin, independence of the

judiciary, as well as the advancement of other elements of

democratic society, are guaranteed by the Constitution of

the Republic of Azerbaijan, which was adopted on 12

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November 1995 in a national referendum. A great deal has

been done to bring the legislative system of the country in

line with relevant international standards.

Presidential elections that are to take place in

Azerbaijan on 11 October this year will constitute a

milestone in the process of further strengthening the

democratic foundation of the society. Actions already

undertaken by the leadership of the country have laid the

foundation for genuinely free and just elections. A new law

on presidential elections in the Republic of Azerbaijan was

thoroughly examined by the Office for Democratic

Institutions and Human Rights of the Organization for

Security and Cooperation in Europe (OSCE) and the

Council of Europe and meets the most rigorous

international standards in this field.

The election process will be observed by 300

international monitors from the OSCE, the Council of

Europe and other international organizations, as well as

from institutions of individual countries, such as the

National Democratic Institute for International Affairs in

the United States. The widest possible participation of

national monitors has been provided for. The leadership of

the country has declared its commitment to conducting free

and just elections, considering it a significant event in the

history of the Azerbaijan State.

Positive developments resulting from current reforms

can also be observed in the country?s economy. At the

initial stage of its formation the young Azerbaijan State

faced internal instability, lack of a progressive legislative

basis for the market economy, disintegration of traditional

economic and trade relations, economic recession and a

huge budget deficit. These elements have created serious

obstacles to economic development. Armed aggression by

neighbouring Armenia has had the most negative impact on

the situation in Azerbaijan. It has resulted in the occupation

of one fifth of its territory, the emergence of about 1

million refugees and internally displaced persons and the

continuance of the 10-year-old blockade of the Nakhichevan

region of Azerbaijan by Armenia.

The course of building a democratic society based on

a market economy, taken by the leadership of the country,

has created the prerequisites for drastic economic reforms.

Since 1995, the Government of Azerbaijan has been

implementing a comprehensive programme of economic

stabilization. Fiscal, monetary and credit policies have been

streamlined and structural reforms to liberalize the economy

have been completed. We have achieved macroeconomic

stability, as well as stability of the national currency. In

fact, inflation rates have practically been reduced to zero,

and since 1996 steady growth in the gross domestic

product has been restored. Internal stability achieved as a

result of the leadership?s consistent policy, as well as

reforms implemented, have provided a favourable climate

for investments in the country.

Today, Azerbaijan continues with the reform of its

banking system and privatization of State-owned

enterprises. I would like to take this opportunity to thank

the International Monetary Fund and the World Bank for

their support to the stabilization programme in Azerbaijan

and for financing the structural transformations in its

economy. I would like to offer our assurances of the

irreversibility of the course of economic reforms taken by

our Government and to express the hope that these

important financial institutions will increase their

assistance to Azerbaijan.

In its economic policy, our country attaches the

highest priority to its integration into the world economy.

Situated at the junction of Eastern and Western

civilization, and having been for centuries a link between

Europe and Asia, Azerbaijan is implementing a systematic

programme aimed at its smooth integration into the world

economy, and attaches great importance to the

development of fruitful and mutually beneficial regional

cooperation based on mutual respect for the sovereignty

and interests of all States, as well as on the principle of

non-interference in internal affairs of other countries.

In this connection, the country?s leadership regards

as strategically important the concept of creating an East-

West corridor, and in particular the development of the

Europe-Caucasus-Asia transportation link. The Transport

Corridor: Europe-Caucasus-Asia (TRACECA)

programme, established by the Commission of the

European Union in 1993, is designed to promote the

development of interconnected national and regional

transportation infrastructures to enhance cooperation

between countries in Europe, the Black Sea region, the

Caucasus, the Caspian Sea region and Asia.

Implementation of this programme will provide reliable

access to the trans-European and trans-Asian

transportation systems for the landlocked countries of the

Caucasus and Central Asia. During the last five years

close interaction between the States involved in the

programme and active support by the Commission of the

European Union have contributed to substantial progress

in modernization and construction of communications, the

development of relevant laws and codes and the

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improvement of the customs and tariff policies of

participant States.

The results of five years of work were reviewed at the

International Conference on the Restoration of the Historic

Silk Route, held at the capital of Azerbaijan, the city of

Baku, on 7-8 September this year. That Conference brought

together delegations from 32 countries, including nine heads

of State, and representatives of 13 international

organizations. The major outcome of the Conference was

the signing of the Principal multilateral agreement on

international transport for development of the corridor

Europe-Caucasus-Asia, which is an important institutional

mechanism for promoting the development and regulation

of international transportation, as well as for coordinating

and harmonizing transportation policies and legal

frameworks in this field of transportation. The Baku

Conference has become a major cornerstone in terms of

strengthening and enhancing cooperation aimed at the

further development of the Europe-Caucasus-Asia

transportation corridor in the interests of the economic

progress of all the participating States.

The delegation of Azerbaijan is counting on the

support of the other Member States for this programme. We

are convinced that the restoration of the historic silk route

and the involvement of other countries and regions in this

project would provide a strong impetus to the process of

rapprochement and reciprocal enrichment of our peoples, a

strengthening of their independence and sovereignty, as

well as the successful implementation in those States of

democratic and market-oriented reforms.

Carrying out plans to deliver carbohydrate resources

produced by Azerbaijan and other countries of the Caspian

basin to world markets by means of multiple pipelines is an

integral part of the East-West concept, which is of

inestimable importance for strengthening the independence

and security of sovereign States, as well as for their

economic and other development. We expect international

financial institutions and other investors to show due

interest in these projects, which can rightly be called a

bridge to the third millennium.

Unfortunately, however, we are obliged to admit that

the model of the progressive development of sovereign

States of the region proposed by Azerbaijan is not accepted

by all. The position taken by Armenia in the region still

remains a serious obstacle to this process.

The question of a settlement of the conflict between

Armenia and Azerbaijan, which has lasted for more than 10

years now, is a key issue in Azerbaijan?s foreign policy.

Relevant resolutions of the Security Council and the

decisions of the OSCE have made it possible to create a

necessary normative legal basis for the settlement of this

conflict. In this context, it is necessary in particular to

stress the codifying role and universality of the principles

contained in the Lisbon statement made by the Chairman-

in-Office of the OSCE. These principles, namely,

recognition of the territorial integrity of Armenia and

Azerbaijan, a high level of autonomy for Nagorny

Karabakh within the Azerbaijan State and the provision of

security and safety for the entire population of Nagorny

Karabakh, are fully in keeping with the principles

enshrined in the Helsinki Final Act of 1975 and are

comprehensive in nature, which makes possible their

application with an equal degree of effectiveness not only

to the conflict between Armenia and Azerbaijan, but to all

other regional conflicts as well.

A positive balance has recently been achieved. An

institute of mediation has been created, comprising the

Minsk Group of the OSCE and its Co-Chairmen. The

parameters for the settlement process have been

established, providing for the elimination of the

consequences of the armed conflict and, on this basis, a

resolution of the political problems. As a result of

Azerbaijan?s persistence, it was possible in October 1997

to find points of contiguity with Armenia?s position, and

real opportunities for progress have emerged. The

subsequent internal political events in Armenia, however,

and the resulting drastic revision of its attitudes led to a

decline in the dynamism of the Minsk process.

A just and lasting settlement cannot be achieved by

Armenia?s military pressure on Azerbaijan, by its

continuing occupation of parts of the territory of the

Republic of Azerbaijan and by increasing its military

potential there, by putting forward preconditions for the

resumption of negotiations on the basis of the results of

Armenia?s aggression, or by imposing new procedural

frameworks on the negotiations process, in order to

perpetuate the situation resulting from the conflict.

Illegal transfers of arms from Russia to Armenia,

worth more than $1 billion, and regular joint military

exercises of those countries designed to increase the

offensive potential of the Armenia?s armed forces not

only prevent a facilitation of the settlement, but also have

a direct destabilizing impact on the situation in the region.

Azerbaijan once again states its commitment to a

peaceful resolution of the conflict and the strict

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implementation of the ceasefire regime, until an agreement

on the settlement of the armed conflict is reached, in the

hopes that the same approach will be taken by the

Armenian side. Azerbaijan calls on Armenia to accept the

proposals of the Co-Chairmen of the Minsk Conference as

a basis for negotiations within the format of the Minsk

Group. Today, as never before, it is important for the

international community to preserve its consistency,

determination and persistence in upholding its declared

position on the settlement of the conflict between Armenia

and Azerbaijan.

Nobody should be in any doubt that progressive

development of the States of the region can only be

achieved through the establishment of just and lasting peace

and stability in the southern Caucasian region on the basis

of respect for sovereignty and the territorial integrity of its

States. Azerbaijan believes that international organizations,

as well as the entire international community, should more

actively utilize their potential to further promote the

peaceful negotiation process and the achievement of a

political settlement to the conflict.

During its last session, in response to the

recommendations of the Secretary-General, the General

Assembly adopted important decisions aimed at reforming

the Organization. Azerbaijan regards the work already done

to this end as a solid basis for further adaptation of the

Organization to the quickly changing needs and imperatives

of today?s world. We stand ready to further contribute to

the implementation of these decisions intended to prepare

the world Organization better to meet the challenges of the

twenty-first century.

Undoubtedly, in this regard, the reform of the Security

Council is of special importance. In our view, it is

expedient to adopt relevant decisions on this extremely

sensitive issue on the basis of the broadest support of

Member States and in accordance Article 108 of the

Charter. Asia, Africa and Latin America should be

represented in both categories of membership of the

Security Council in a manner appropriate to current political

realities. Given the fact that the number of countries in the

Eastern European Group has doubled, we once again point

out the need to allocate to that Group an additional non-

permanent seat on the Security Council.

Addressing the question of the reform of the Security

Council and the enhancement of the efficiency of its work,

we cannot fail to draw attention to the fact that the four

Security Council resolutions on the conflict between

Armenia and Azerbaijan have still not been implemented.

We have repeatedly stressed that a review of the

personnel policy of the United Nations should be an

integral part of the Organization?s reform. We remain

extremely concerned by the fact that the Republic of

Azerbaijan is still not represented in the Secretariat.

It is unfortunate that emergencies arising from

military conflicts and acts of military aggression are still

a pressing issue today. Millions of people continue to lose

their homes, health and property, and are becoming

internally displaced persons.

The people of my country have experienced the pain

and misfortune of such a loss, having fallen victim to the

Armenian aggression of which I have spoken. Every

seventh citizen of Azerbaijan bears the burdens of the

refugee?s life, deprived of his home in his native land,

suffering from heat in summer and cold in winter in

temporary tent camps. In occupied Azerbaijani territory,

hundreds of towns and villages have been destroyed,

practically all of the houses, schools, hospitals and

industrial facilities have been burned down or plundered

and ancient cultural monuments have been razed. Coping

with the refugee emergency and the restoration of what

has been lost are two of the main concerns of the

Azerbaijan State. These problems cannot be resolved until

the occupying forces are withdrawn from Azerbaijani

territory and all the refugees and displaced persons have

been returned to the places from which they were

expelled by force.

The Azerbaijan Government is doing a great deal to

alleviate the situation. The role of the United Nations and

its agencies in this process can scarcely be overestimated.

In addition to providing direct humanitarian assistance to

refugees and internally displaced persons, at the present

time a project is under way to restore a part of the Fisuli

district, which was freed from the occupying Armenian

units. This project is being carried out by the Government

of Azerbaijan, the World Bank, the United Nations

Development Programme (UNDP), the Office of the

United Nations High Commissioner for Refugees and

other agencies and organizations. However, the emerging

trend of reduction in the volume of humanitarian

assistance to Azerbaijan cannot fail to disturb us. While

expressing our most sincere gratitude to the United

Nations, its specialized agencies and donor countries for

their support and concrete assistance, we call on them not

to decrease in the future the volume of their humanitarian

aid to the people in Azerbaijan who are suffering from

aggression and who live in the most unbearable

conditions.

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I should like to advantage of this opportunity to briefly

refer to our cooperation with UNDP, which is playing a

very positive role in the social, political and economic

development of our country. Assistance from UNDP, the

major source of subsidies necessary for carrying out

development activities, is vital to resolve a number of

serious problems in Azerbaijan that were mentioned earlier.

We welcome the system of Resident Coordinators and

highly commend the activity of the Resident Coordinator in

Azerbaijan, designated by the Secretary-General, who is

acting as the leader of the United Nations team in the

country. At the same time, given the difficult financial

constraints facing UNDP, I should like to call upon all

Member States to increase their voluntary contributions to

the budget of the Programme so that the recipient countries,

including Azerbaijan, can more effectively use its potential

to their advantage.

The consolidation of efforts of Member States with a

view to launching a decisive attack against crime, drugs and

terrorism continues to be a priority. Combating these

phenomena can be successful only if all countries truly join

forces. Azerbaijan, which has had to confront these real

threats to its sovereignty and territorial integrity, in

particular from Armenian terrorism, considers itself an

active participant in the fight against these evils.

Azerbaijan welcomes the results of the Rome

Diplomatic Conference to establish an International

Criminal Court. We are convinced that an efficient, capable,

independent and authoritative court will contribute to

strengthening international cooperation for the effective

prosecution and suppression of aggression, genocide and

military crimes, which are the most heinous crimes

constituting a threat to international peace and security. As

a State that is experiencing all the sufferings and tragedy of

aggression by Armenia, Azerbaijan is deeply interested in

the establishment and effective functioning of international

legal mechanisms for the prosecution of those responsible

for the aforementioned crimes.

There are fewer than 500 days remaining until the end

of this century, and we have no time to relax, no right to

rest on our laurels. Approaching the end of the historic

nineties, the United Nations, bringing together both the

prosperous States and those who have overcome numerous

calamities but have gained their independence and stability,

must take all necessary measures to justify the efforts

already made and to achieve the objectives that have been

set. Fulfilment of the tasks at hand and finding solutions to

the problems we face constitute the baggage that this

respected Organization and its Member States will take

with them into the twenty-first century.