VZCZCXRO3417
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHYE #0344/01 1121305
ZNR UUUUU ZZH
R 211305Z APR 08
FM AMEMBASSY YEREVAN
TO RUEHC/SECSTATE WASHDC 7420
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEHNSC/NSC WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC

UNCLAS SECTION 01 OF 03 YEREVAN 000344 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR EUR/CARC, NSC FOR MARIA GERMANO 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM PREL KDEM AM
SUBJECT: GALA TV FORCED OFF THE AIR, THEN PUT BACK ON, BUT REMAINS 
ON LIFE SUPPORT 
 
REF: A) Yerevan 261, B) Yerevan 86, C) 07 Yerevan 1446, D) 07 
 
Yerevan 1362, E) 07 Yerevan 1338, F) 07 Yerevan 1335 
 
YEREVAN 00000344  001.2 OF 003 
 
 
(U) Sensitive but unclassified.  Please protect accordingly. 
 
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SUMMARY 
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¶1. (SBU) GALA TV, the regional opposition TV station that has 
weathered five months of government pressure because of its support 
of ex-President Levon Ter-Petrossian, finally had its plug pulled 
the evening of April 16 only to have its connection restored the 
following morning.  Armenian marshals who had unplugged power cables 
to GALA's transmitter as a "warning disconnection" returned the 
morning of April 17 to restore the connection, literally one hour 
after the CDA had visited GALA's owner, and minutes after CDA 
visited the regional governor, where he had expressed USG concerns 
about the authorities' pursuit of GALA.  GALA also recently received 
notice from regional tax authorities that it must pay a USD 5,500 
penalty for its late payment of USD 87,000 in allegedly evaded taxes 
that it raised in a March telethon.  Another setback was the start 
of court hearings against key GALA supporter Levon Barseghian for 
allegedly resisting police orders during an unsanctioned March 2 
rally in Gyumri.  END SUMMARY. 
 
-------------------------- 
GOING, GOING, ALMOST GONE? 
-------------------------- 
 
¶2. (SBU) As the CDA arrived for his first visit to Gyumri April 16, 
marshals from Armenia's "Service of Mandatory Implementation of 
Judicial Acts" were taking GALA TV off the air, enforcing an April 
14 Gyumri appellate court order to remove GALA's transmitter from a 
disputed Soviet-era tower.  The Charge learned about the development 
during his morning visit with GALA's owner Vahan Khachatrian April 
¶17. 
 
¶3. (SBU) Khachatrian told CDA that marshals arrived the evening 
before to remove all of GALA's equipment from the disputed tower, 
but because they had no engineering specialists who knew how to 
dismantle the various electrified components, they merely unplugged 
two cables that fed electricity and GALA's broadcast signal into its 
transmitter. 
 
¶4. (SBU) Khachatrian said he asked the marshals for ten days to 
bring his own hired specialists from Yerevan who would remove all of 
GALA's equipment.  The marshals agreed after  Khachatrian put the 
request in writing, but they still insisted that power to the 
transmitter remain disconnected. 
 
¶5. (SBU) The next morning, shortly after CDA met with Lida Nanian, 
the governor of the Shirak region whose capital is Gyumri, the 
marshals returned and restored the connection, apologizing to 
Khachatrian.  Armenian media carried a statement from the head of 
the marshal's service, Gagik Ayvazian, claiming that his marshals 
have the right to dismantle the antenna, but the officers limited 
themselves only to "a warning disconnection."  CDA had complained to 
the governor about GALA's plight, the appearance that the 
authorities were trying to shut it down because of its pro-LTP 
leanings, and the ramifications the GALA case had for freedom of 
expression in Armenia. 
 
--------------------------------------------- ----- 
FREEDOM OF EXPRESSION FELLED BY A SOVIET-ERA TOWER 
--------------------------------------------- ----- 
 
¶6. (SBU) Last November, when tax authorities unexpectedly launched 
an intrusive audit of GALA (reftels), Gyumri's municipality also 
launched a process to remove GALA's broadcasting equipment from a 
dilapidated, Soviet-era TV tower that GALA had been using free of 
charge.  The municipality finally registered the tower as its 
property on November 5, and demanded GALA's immediate eviction. 
GALA appealed the decision in a Gyumri first instance court, but the 
court ruled in favor of the municipality on February 29.  GALA then 
took the case to the court of appeals, which upheld the eviction 
decision on April 14. 
 
¶7. (SBU) Levon Barseghian, the chairperson of Gyumri's Asparez Press 
Club chairperson told us April 15 that GALA and its supporters plan 
to appeal the court decision all the way to the European Court of 
Human Rights if need be.  During the various court hearings on the 
TV tower issue, Barseghian and GALA's owner had tried to negotiate a 
financial settlement with the city to mutually agree on an 
appropriate price for the tower's lease and retroactive usage fees. 
The price that the city proposed, however (USD 650 dollars/month), 
 
YEREVAN 00000344  002.2 OF 003 
 
 
significantly exceeded the going Gyumri market rate of USD 450-500 
dollars charged to local companies for more modern TV towers. 
Barseghian and Khachatrian see the city's price gouging as one more 
example of politically-motivated retribution for its October 2007 
airing of a speech by ex-president Levon Ter-Petrossian that 
denounced the ruling regime. 
 
¶8. (SBU) According to Barseghian, an internet service provider that 
uses the same tower as GALA does not pay any rent -- at least 
officially -- and has not been asked to move or sign a lease 
agreement.  In addition, on April 7 the tower was the target of 
arson when a bike tire was set ablaze on the tower's middle platform 
that held the internet provider's antennas and cables for GALA's 
transmitter.  Barseghian suspects Armenia's National Security 
Service engineered the attack. 
 
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ANYBODY HAVE A TOWER FOR SALE - WHO WILL SELL TO ME? 
--------------------------------------------- ------- 
 
¶9. (SBU) Khachatrian told CDA he is committed to finding an 
alternative venue for his transmitter, but predicts an uphill 
battle.  GALA has already applied to use Gyumri's central TV tower, 
but expects that application to be rejected for political reasons. 
Khachatrian has also tried to buy an antenna of his own, but 
potential sellers have refused to deal with him, fearful of 
retribution by the authorities if they do.  One of the technical 
problems facing GALA is finding an area high enough to ensure a 
sufficient broadcast coverage area.  In addition, moving the 
equipment (transmitter, power generation for the transmitter, etc) 
to a different location may cost as much as USD 15,000.  Khachatrian 
says he is prepared to bankroll the costs by selling a soap factory 
he owns, but says potential buyers are afraid to enter into 
negotiations with him.  Khachatrian also confided he fears for his 
physical security once GALA goes off the air, saying the TV station 
is the only weapon he has to defend himself.  Another complication, 
mentioned to us by a local media expert, is that GALA's current 
installation is somewhat unsafe:  apparently it is low enough to the 
ground to create a radiation exposure hazard to people passing 
underneath. 
 
-------------------------------------- 
TELETHON SUCCESS PROMPTS NEW PRESSURES 
-------------------------------------- 
 
¶10. (SBU) After GALA dodged bankruptcy in late March when Barseghian 
masterminded an impromptu telethon that netted the approximately USD 
87,000 in allegedly evaded back taxes, Armenia's tax service on 
March 27 levied a late payment penalty to the tune of USD 5,500. 
The amount was calculated based on the number of days it took GALA 
to pay the taxes following the tax authorities' November 12 
decision.  Barseghian told the Embassy that GALA raised enough money 
during the telethon to pay the new fine as well, thanks largely to 
donations from Armenians overseas that hit GALA's account after the 
end of the telethon.  GALA is unhappy about having to pay the fine, 
though, grumbling that it will ultimately go into the pockets of the 
region's allegedly corrupt tax chief.  The fine deals another 
financial blow to GALA, which is being kept afloat by Khachatrian's 
personal savings that cover GALA's monthly USD 8,000 operating 
costs.  Until its cables were cut, GALA's advertising revenue was at 
rock bottom, with only two clients willing to risk ad placements 
with the station. 
 
¶11. (SBU) Barseghian has also seen his personal woes deepen.  After 
a March 21 arson attack on an Asparez car he was driving during the 
telethon, he is now in court contesting charges that he resisted 
police orders during a March 2 gathering in Gyumri.  On April 11 
Gyumri's administrative court held preliminary hearings on the 
police charges, as well as Barseghian's counter-appeal of the 
charges.  If convicted, Barseghian faces an administrative fine of 
50,000 Armenian drams (USD 160).  Barseghian says police assaulted 
and illegally detained him for six hours.  Barseghian says he is 
ready to withdraw his complaint if the police withdraw their charges 
and publicly apologize for their conduct. 
 
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COMMENT 
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¶12. (SBU) While it may be true that GALA is not completely blameless 
in its business operations, the underlying cause of its troubles 
appears to be political rather than the result of legitimate legal 
issues.  GALA's struggle to stay on the air has galvanized Armenians 
here and abroad.  In an affair that some compare to David versus 
Goliath, GALA's uncanny ability to withstand relentless government 
pressure and continue broadcasting gives the discontented a symbol 
 
YEREVAN 00000344  003.2 OF 003 
 
 
they can rally around.  GALA's eventual silencing - whether 
temporary or permanent - will constitute a major blow for these 
people.  It will remove one of the few remaining outlets where 
people can vent their frustrations with the country's leadership and 
handling of the political crisis.  GALA's impending demise will only 
deepen the resentment of the authorities held by a growing number of 
Armenians. 
 
PENNINGTON