VZCZCXRO0308
RR RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL RUEHSR
DE RUEHYE #0071/01 0410822
ZNY CCCCC ZZH
R 100822Z FEB 10 ZDK ALL CTG RUEWCSE #7803
FM AMEMBASSY YEREVAN
TO RUEHC/SECSTATE WASHDC 0021
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 000071 
 
SIPDIS 
 
E.O. 12958: DECL: 02/10/2020 
TAGS: PGOV PREL PBTS SOCI PHUM GG AM
SUBJECT: ARMENIA-GEORGIA RELATIONSHIP POSITIVE DESPITE 
CHALLENGES 
 
REF: 09 YEREVAN 844 
 
YEREVAN 00000071  001.2 OF 002 
 
 
Classified By: Ambassador Marie Yovanovitch. Reasons 1.4(b & d) 
 
1.(C) SUMMARY. Following a joint Armenia-Georgia Task Force 
Meeting, the Government of Armenian (GOAM) continues to seek 
resolution to a number of issues between the two countries, 
despite what the GOAM calls Georgian "intractability" on the 
demarcation of the final sections of the border, the arrest 
of Armenian citizens for allegedly illegally crossing the 
border, and the Government of Georgia's refusal to allow 
entry to certain Armenian citizens. No change was reported 
with the status of the disputed churches in Tbilisi or the 
level of transit tariffs on Armenian-bound goods. In spite of 
those ongoing challenges, the GOAM still maintains a positive 
relationship with the Georgian government, and, as an example 
of this, Armenian President Sargsian will travel to Georgia 
for an unofficial visit with Georgian President Saakashvili 
at the end of February. END SUMMARY. 
 
¶2. (C) Ambassador Yovanovitch met with Armenian Deputy 
Foreign Minister Shavarsh Kocharian on February 1 to discuss 
the Armenia-Georgia Task Force meeting that recently 
concluded in Yerevan. The Task Force tries to meet annually 
and is a forum for the discussion of economic, cultural, 
humanitarian and other issues between the Government of 
Armenian (GOAM) and the Government of Georgia (GOG). Issues 
of interest to Post that were on this year's agenda were the 
status of the disputed churches in Tbilisi, the demarcation 
of the Armenia-Georgia border and related border questions, 
the construction of the North-South Road between the two 
countries, and transit tariffs in Georgia for Armenia-bound 
goods. The Deputy Foreign Minister was forthcoming about the 
discussions with his Georgian counterparts, but stated that 
not all issues of interest to the GOAM were addressed. Most 
importantly, while references to the disputed churches in 
Tbilisi (reftel) were raised, no movement occurred and no 
mention of the churches was included in the final protocols 
of the Task Force meeting. He noted that the issue was too 
delicate to address in such a format. 
 
¶3. (C) Overall, DFM Kocharian believed it was a positive 
meeting and the atmosphere was warm and comfortable. 
Armenian President Sargsian in his February 4 meeting with 
Deputy Secretary of State James Steinberg said that enough 
progress had been made in the meetings with the Prime 
Minister for him to travel to Georgia at the end of February 
for an unofficial visit with Georgian President Saakashvili. 
 
---------------- 
Border Issues 
---------------- 
 
¶4. (C) Demarcation of the Armenian-Georgian border and 
problems related to citizens crossing the border dominated 
DFM Kocharian's recap of the meeting. While the two sides 
have reached agreement on over 160 kms of the border, 60 kms 
remain to be settled. Briefly, the border between the two 
countries was officially delineated in 1929 and again in 1934 
by Soviet authorities. Since then, the border has undergone a 
series of unofficial minor adjustments to take into account 
prior traditional use resulting in Armenia acquiring land 
that was once in Georgia and vice versa. The GOAM's position 
is that these unofficial adjustments have resulted in a net 
loss of 700 hectares of Armenian territory based on the 
earlier official maps. The GOAM does not agree with the GOG's 
alleged position that the border should be accepted "as is" 
and that the commission can negotiate equal swaps of 
territory to make additional adjustments as this would result 
in the permanent loss of the 700 claimed hectares. 
 
¶5. (C) In addition, Kocharian claimed that the GOAM and the 
GOG had an understanding that the border guards would allow 
border residents to cross the border to work on their 
traditional lands without having to comply with entry 
requirements. Kocharian alleged that over a year and a half 
ago the GOG's position changed and they began arresting 
Armenian citizens for illegally crossing the border. The GOAM 
however, to maintain good neighborly relations, still does 
not enforce its entry requirements against the Georgian 
residents of the border although they may soon be forced to 
because of the publicity surrounding the prosecution of 
Armenian citizens. 
 
¶6. (C) The entry of Armenian and Georgian citizens into each 
other's territories raised another issue. The GOAM alleges 
that the GOG is capriciously denying entry to a few Armenian 
citizens, including one member of the Armenian Parliament. 
Ambassador Yovanovitch pointed out that each country has the 
right to deny entry to foreign citizens it believes may pose 
a danger. The GOAM though believes entry is denied not 
because its citizens are dangerous but because they have 
 
YEREVAN 00000071  002.2 OF 002 
 
 
espoused views against the GOG, are ethnically Armenian and 
partial to the Georgian opposition.  Kocharian stated that 
the GOAM could employ a similar standard against Georgian 
citizens but, as with the border crossers, would prefer not 
to in the name of maintaining good relations. To show their 
seriousness about this issue, Kocharian provided the 
Ambassador with a list of 14 Georgians and their alleged 
anti-Armenian statements. However, Kocharian said the GOAM 
believes all people have the right to express their opinion 
and so will not use those statements against the Georgian 
citizens. 
 
¶7. (C) In response to the Ambassador's question of how the 
USG could help, Kocharian requested the Ambassador relay two 
messages to the GOG on behalf of the GOAM. First, that if 
each side insists on its own approach to border demarcation, 
no progress will be made. Each side must be willing to 
compromise and bring the approaches closer. Second, that the 
GOG's decision to arrest Armenian citizens for allegedly 
illegally crossing the border has caused problems for the 
GOAM and is not helpful. The GOG should follow the GOAM's 
example of allowing border residents to cross for traditional 
purposes. 
 
------ 
Trade 
------ 
 
¶8. (C) The issue of transit tariffs on goods through Georgia 
remains a sore point with the GOAM as Azerbaijan-bound goods 
receive a 50% discount off of base tariffs, while 
Armenian-bound goods receive a smaller discount, based on 
their respective bilateral agreements with Georgia. 
Kocharian reported that no progress was made on this issue. 
According to Kocharian, the GOG offered the same explanation: 
Azerbaijan transfers 10 million tons of goods annually 
through Georgia while Armenia transfers only 1 million tons. 
If Armenian-bound goods ever equal those headed to 
Azerbaijan, then Armenia can receive the same discount. The 
two governments may meet in April to discuss transit tariffs, 
but Kocharian did not sound hopeful that a new agreement 
would be more beneficial to Armenia. 
 
------------------ 
North-South Road 
------------------ 
 
¶9. (C) Kocharian expressed regret that it appears the GOG 
wants to pull out of the North-South Road agreement that 
would link Batumi, Georgia with Bavra, Armenia. Kocharian 
said that the GOG believes one segment of the road would be 
too expensive to construct and they would rather invest the 
money in other areas. Without the GOG component, the project 
would no longer be "regional," jeopardizing the overall 
funding as the Asian Development Bank is willing to 
underwrite much of the road only if it is a regional project. 
Kocharian argued that eventually the road would justify its 
cost through an increase in the number of tourists from 
Armenia, providing an economic benefit to Georgia. (NOTE: 
This road project would give Armenia much more direct access 
to Black Sea ports and - pending an opening of the 
Armenian-Turkish border - to Turkey. The road will eventually 
extend through Armenia and connect with Iran. The GOAM sees 
the road as a strategic as well as an economic priority. END 
NOTE). 
 
¶10. (C) COMMENT. Despite Armenian frustration with the lack 
of progress on these issues due to a perceived Georgian 
intransigence across the board, Deputy Foreign Minister 
Kocharian said many times that the GOAM recognizes the close, 
traditional ties of the two countries and these current 
problems will not effect the strong desire to maintain a 
friendly relationship. Negotiations on these issues will 
continue -- they just will not go as speedily or as smoothly 
as the GOAM may wish. END COMMENT. 
 
 
YOVANOVITCH