Heydar Aliyev

AZERRAIIAN OIL IN THE WORLD POLICY

- w- AZERBAIJAN PUBLISHING HOUSE BAKU - Roopubllkooi Prtzldentinin If lor idarooi PREZlDENT KlTABXANASI

The oil of Azerbaijan will serve mankind, peace and prosperity in future, too. 2 Heydar Aliyev President of the Republic of Azerbaijan Compilers: Ilham Aliyev, Akif Muradverdiyev

TO THE READERS

he Present Book offered to the readers deals with the oil policy of Heydar Aliyev, President of the Republic of Azerbaijan in 1997. “The successful implementa tion into life of “the Contract of the Century”, which has played a vital importance in the life of the Azerbaijan people in the recent years and in fact has been speeding the develop ment of oil industry, is a real step towards the XXI century. Extraction of early oil in the “Chirag-1” deposit in the Azerbaijani sector of the Caspian Sea is the successful result of the foresighted state policy of President Heydar Aliyev. He was just when he said in his speech in the Republican Palace in the Solemn Ceremony on November 12, 1997: “The cele brations of today, the achievements gained by us are only due to the independence of Azerbaijan. Today we are witnessing the fruits of the state sovereignty of Azerbaijan”. Extraction of early oil in the platform “Chirag-1” is an event of great significance not only in the political, social and economic life of Azerbaijan, but it is also an event of world wide importance. This book, which is introduced to the readers, deals with the tireless efforts of President Heydar Aliyev for obtaining these achievements, with his negotiations during his visits to the USA, Russia and Italy, with meetings headed by him with the

HEYDAR ALIYEV Azerbaijan oil in the world policy presidents of the leading oil companies of the world and the signed contracts. Now, when getting acquainted with the documents of those visits we frequently come across the words “historical”, “tri umph”, “for the first time”, etc. It is really like that. The President of the sovereign Republic of Azerbaijan was on an official visit to the USA. During these visits he met the heads of the biggest world oil companies and held negotiations on the issues concerning the economy of Azerbaijan, particularly the development of the oil industry which is the main wealth of the republic. The meetings of Heydar Aliyev, a world-wide known politician, with foreign businessmen and representa tives of mass media can be described only by using the word “triumph”. The importance of these visits for the fate of Azerbaijan is very important. We think that the meetings of President Heydar Aliyev with heads of states, businessmen, his negotiations during these visits are the logical continuation and result of the process which have been going on in the politi cal, socio-economic and spiritual life of Azerbaijan in the recent four years. The visits of Heydar Aliyev this year are not only historical visits in essence, but factors which will have a great impact on the life of the Azerbaijan people though they cover only a short period of human life. The history draws the politicians to its flow very quickly at the time in which we live. At present ideas help man to choose a right direction, a right way consciously in extreme situations, in conditions full of sharp conflicts. Our people had already to make its choice when in the hard days of 1993 the nation faced an inevitable tragedy. The Azerbaijan people made a right choice with its soul, con sciousness, intellect and historical memory. And in the October of 1993 when our people celebrated solemnly the

7 с* fourth year anniversary of the election of its outstanding son to the post of president it once more proved the rightfulness and timeliness of its choice. It must be noted that the foundations of these visits, which are of exceptional significance for Azerbaijan, were laid just in 1993. “Since 1993 up to present we have tried to regulate our relations with the USA”, noted President of the Republic of Azerbaijan, “we have desired to improve and develop them ... we have gained great achievements in this sphere”. It is also important to note that, if we take into account the history of these relations, the personal relations of the presi dents of the USA and the Republic of Azerbaijan, the devel opment and strengthening of these relations fully coincide with those of the two countries. Their first meeting was in 1994 in New-York. Heydar Aliyev said that just at that time their personal relations were established and good foundations were laid for the regulation and development of relations between our peoples and countries. In the preceding years these meetings became regular and later became traditional: Budapest and Moscow, London and Paris, other meetings in other world countries... The geography of the meetings widened, the content of talks became deeper and more open, mutual personal relations grew stronger. Thus, the meeting of the two presidents during Heydar Aliyev’s visit to the USA in 1997 became a kind of turning point in strengthening the per sonal friendly relations of these two statesmen and also a start ing point in the development of these relations. When esti mating the joint statement on the USA - Azerbaijan relations the President of Azerbaijan noted that the aforesaid statement was not the product of one day, or an hour, its foundations were laid by the work carried out jointly since 1993.

8 HEYDAR ALIYEV Azerbaijan oil in the world policy c*

Therefore, it is not surprising that these two interlocutors had talks for nearly four hours, much longer than planned by the White House. All this is quite natural and logical in the world of policy and human relations. Heydar Aliyev’s ideas serve great aspirations and missions, but all this is not understood and accepted by everybody in the same way. For majority they become a principle of behaviour and highest goal of life. For others they are only externally important, they never object against these ideas, but do not become accomplices in conviction fully as well. Not men tioning our opponents and open enemies, these people try to bring to nil the struggle of our countrymen for new life, to wipe this struggle out of memories of the nation. Nevertheless, these four years have been the years of remarkable events, meetings, visits, talks, elaboration of important documents. These four years have witnessed the Lisbon summit which resulted in adoption of concrete deci sions also necessary for every politician and diplomat serv ing the role of a university. In fact, any man, who wants to get rid off the ideological captivity of the past, who desires to have a look at himself from a distance, who wishes to listen to his own feelings, must experience the political school of Heydar Aliyev. If we approach all the aforesaid from this point of view, is it possi ble to accept the visits of delegations of our Republic to super states of the world as not having any relations with our histo ry, with our foundations, with the history of Azerbaijan, with the history of the Azerbaijan oil and with our present life? To understand the reasons of why the President of the Republic of Azerbaijan is so highly received by the heads of states we must not forget the fact that until recently we have

9 с* been living in a quiet, unnoticed, remotest corner of the world where the contradictions between the interests of the majority of population and the so-called “highest interests of the state” have led the country to disaster, the concept of “people, nation” was substituted by the word “population”. Even the men, who are unaware of the American traditions, of their historical idiosyncrasies and national psychology, understand that these visits and decisions adopted as a result of them could have been throughly an absurdity until 1993, though the factor of oil, and the oil itself existed before that as well. Many people abroad in comparison to some men in the Republic comprehended it at once and more quickly that Heydar Aliyev created the world of state power in Azerbaijan, established the concept of historical self - estimation in the memory of people, he proved that a true and right policy is an important chance for men’s and country’s freedom. He made it evident that our weakness may create conditions for some body’s gaining strength, he displayed by his own example that the Fortune’s Wheel may change the direction of its rotation and also how the knots of the past and future are tied togeth er; he explained that each social process has its own dynam ics and logic. In more broader and more objective sense it means that Heydar Aliyev was not confused in the most complicated instance of history, he estimated the ongoing events and processes in Azerbaijan not from a local point of view, but from that of the mankind. Such an ability is inherent only to a man who possesses a very wide political world outlook. Just because of this, it was quite natural that such a personality appeared on the political stage instead of temporary figures

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Could the West, or the very East, support Azerbaijan moral ly and materially in that period? No, because some people stood waiting for something carefully and gazing around, some people hid themselves under their office tables, a third group marched to Baku. Therefore, those days full of heat were unordinary days in the life of the state and in the personal lives of citizens. Heydar Aliyev’s steps sounded harmoniously with those of the nation by whose demand and challenge he returned to the cap ital from Nakhchivan. As improvisations were of great signif icance the first days and as it was necessary to begin every thing from nil, a number of problems were solved immediate ly and without preparation, and therefore, all this required great creative intellect. The main quality of the President in those days displayed itself in his ability to accept the people and the existing situation as a reality. To understand the essence of ongoing events and processes was equal to half of the victory. This quality also became manifest in directing the Republic towards the world market, including the oil mar ket of the world. Unfortunately, many people were involved in politics in those days. Only the policy, which aims at serving great his torical goals, is able to display the methodology of moral and spiritual actions without mistakes. Therefore, almost every thing had to begin from the nil. The ideas and challenges of Heydar Aliyev concerning the construction work in the sover eign Azerbaijan entered the history as a declaration of a new world. The declaration made from his platform was heard in the remotest corners of the world, each time he declared things which were quite a surprise, by hearing them both our enemies and friends understood clearly that fundamental changes were taking place in Azerbaijan on new grounds. This platform

12 HEYDAR ALIYEV Azerbaijan oil in the world policy c* enabled the Azerbaijan people to see the start of its new tasks, the routes for transporting its oil, including determination of principally new oil routes. Politics is the art of winning. He has studied the history of Azerbaijan oil, which ages for many centuries, and he under stands the role of oil played in the history of Azerbaijan in the past and present quite well. Once C.A.Helvetius said: “... Each epoch has its geniuses, if there are no geniuses there, they are invented”. Some figures have also been invented in the histor ical epoch in which we live. But Azerbaijan was the cease point for all such invented political figures, because they were blind in politics, therefore weak in strength. But the life prospect of Heydar Aliyev is very convincing and clear, because his broad and foresighted policy is based on practice, on various forms of development, on the forces raised for action, therefore all this soon or later had to give its fruits. One of the actions taken by Heydar Aliyev was his visit to the USA. The scope of his personality covers Washington and Paris, Teheran and Ankara, Berlin and London, Rome and Warsaw, Kiev and Tbilisi, Moscow and Yerevan, enabling him to har ness the nerves of political ties which stretch to Baku. It is like what the outstanding philosopher of the ancient Greece Epicurus said: “Only one life is also enough for a wise man but a fool will never know what to do if he is given even an eternity”. How profound is the sense of this sentence. John Kennedy, who was one of the elite leaders of the world, once noted like this: “You must not ask what has America done for you, but ask what have you done for America?” “Do not shed tears and lament for the occupied Azerbaijan territories. But ask yourself what can you personally do for their liberation?” These words do not belong to Heydar Aliyev,

HEYDAR ALIYEV Azerbaijan oil in the world policy c* one of the outstanding and influential leaders of the world, but all his life activity is aimed at the implementation of the com mon desire of our people into reality. Thus, the USA ... Heydar Aliyev spoke of the great impor tance of relations of Azerbaijan with the USA immediately after his election to the post of president. The essence of his statements concerning these relations included the study and use of achievements gained in the sphere of the Western democracy and culture, economy and politics, public and social relations. According to him, the application of the expe rience of the USA in the construction of the sovereign Azerbaijan acquires great significance: “... From this point of view the USA occupies a special place. I think that the appli cation of the experience of the USA, the Western technology, principles and achievements of their economy in Azerbaijan are very important for our future development”. First of all, let us try to examine the common features of dozens and hundreds of meetings, talks, speeches and negoti ations held during these visits. We think that this idea has been fully expressed by President Bill Clinton who spoke with emphasis of the great work done by Heydar Aliyev in the recent hard four years, of political stability in the society as a result of it, of his achieve ments in the first stage of the revival of economy, his suc cesses in the sphere of privatisation and reforms. The USA president noted that all this is decisively important for the future development of Azerbaijan. While speaking on the aforesaid, President Bill Clinton noted directly the necessity of taking all measures in order to repeal Section 907 which prevents the USA to render an all-embracing assistance to Azerbaijan.

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Heydar Aliyev aimed at provision of integrity and inviolabili ty of borders, democratic development have become very close and understandable notions for the Americans. The words of Bill Clinton “The sovereign Azerbaijan most of all must rely on itself’ are an expression of his great respect to our Republic. The types of models in the sphere of realiza tion of ideas of integration of the Azerbaijan economy to the world economy got their proper estimation in the USA as well. Much was also spoken on the strategic location of Azerbaijan, on the perspectives of its transformation to the base of economic relations and international trade route. Charlie Wilson, one of presidents of “John Wing and Charlie Wing” Company, said like this: “Many people in the USA have just begun to understand the strategic importance of Azerbaijan.” These words coincide with the estimations given to the results of President Heydar Aliyev’s meetings in the USA. In all the cities visited by our delegation - in New-York, Washington, Houston and Chicago - the representatives of the state institutions, parliament, mass media, public, influential statesmen and businessmen took an active part in the meetings with our delegation. Their talks with President Heydar Aliyev, most of all, his speeches and presentations led to a new discovery of Azerbaijan by the USA. Heydar Aliyev stated that up to now we have tried to acquaint the USA with Azerbaijan, but these days we have gained a much higher level. Not long has passed since those days. And now the afore said words by the head of the Republic of Azerbaijan are shared and supported by the men of common sense both in our country and the USA. The Lisbon summit was not once appreciated as a striking achievement of—Azerbffijmr'And the complex.) of issues con- I Awrbeycan Respubllki— “—“— г|Цвг nected with the oil “Contract of the Century” in the field of economy became the topic of hot discussions participated by any people. For instance, Albert Gore, vice-president of the USA, called the signature of documents with the oil compa nies of America during the visit the victory of both parties. When getting acquainted with the documents mentioned in the present book the reader witnesses the coincidence of inter ests not only in the discussed issues, but also in issues con cerning other spheres. By the coincidence of interests we mean the results of talks between the presidents of the two countries which found their reflection in the joint communique on the USA - Azerbaijan relations and in the intergovernmental agreement on mutual defence and approval of investments. Many identical documents envisaged the defence and military relations of the two countries, the concepts on the creation of a dialogue between the partners on the issue of development of energetics. This visit also resulted in the signature of a gen eral agreement between the government of the Republic of Azerbaijan and its National Bank on one side, and the Import - Export Bank of the USA, on the other side. The essence of that historical visit has found its expression in the joint - communique signed by the presidents Bill Clinton and Heydar Aliyev who laid foundations of bilateral relations between our countries and approved the normalisation of these relations. “The well - aimed, consistent and arguemented pol icy of our administration removed the incofidence and vigi lance inherent to relations which existed between our countries at the initial stage of independence of Azerbaijan”, this is what the press centre of the Ministry of Foreign Affairs of the Republic of Azerbaijan informed. A new stage of these relations, founded during this visit, must find their expression in the dynamic expansion of long -

18 HEYDAR ALIYEV Azerbaijan oil in the world policy term partnership relations. It envisages cooperation in the sphere of policy, security, economy and commerce. If we analyse the sense and significance of documents adopted and signed in the USA we must acknowledge their global and strategic nature when we appreciate the level and importance of the intended cooperation. For instance, the joint commu nique says that the USA understands the objectives of the Republic of Azerbaijan in the sphere of national security and supports fully the active integration of Azerbaijan to the newly created structures of the European security. The speeches made by the two presidents are also docu ments as signed and approved by them. For example, the USA President declared directly that he supported the indepen dence, sovereignty and territorial integrity of Azerbaijan, the democratic, legal, secular way of state construction and transi tion to the market economy. The President of our country also appreciated his first offi cial visit to the USA as an event of great importance. He noted that the visit was of historical significance due to its content, the signed documents and owing to its results entirely, it is really an event of historical importance for the people of Azerbaijan, for the nation, for the independent Azerbaijan. He made a special emphasis on the further development of coop eration in the solution of the Armenian - Azerbaijan conflict, in the production of oil in the Caspian Sea and its transporta tion. President Heydar Aliyev noted it repeatedly in the USA that we discovered these oil deposits 50 years ago and have done much in this sphere since. Now, in the recent years we have introduced the rich oil reserves of the Caspian Sea to the world. These are the merits of Azerbaijan before the world public, because these oil deposits of the Caspian Sea attract

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Aliyev noted that each of these contracts taken separately is of great economic importance, they will have great economic benefits both for the USA and Azerbaijan, but taken together, these four contracts have such a great importance that they have already thrilled the whole world. Let v.s now again return to the nearest past and note that the summer apotheosis of 1994 began in the autumn of 1997, especially after the signature of the contracts with the big oil companies of the USA. Well, it is necessary to know and remember the history, it can never be forgotten... All this forms the main topic of this book. The documents displayed in this book demonstrate the tireless efforts of the heads of the world - famous big American oil companies for the participation in the speedily developing oil industry of our republic, in the developments of rich energy resources of the Caspian Sea. The meetings of the President of Azerbaijan with the heads of such companies like “Amoco”, “Shell”, “Mobil”, “Pennzoil”, “Unocal”, “Exxon”, “Chevron”, “Haliburton”, “Frontera Resources”, “John Wing”, “Conoco”, “BP- America”, “Texaco”, “Arco”, “FMC”, “Caterpillar”, “Motorola” are evidences of the great interest displayed for joint actions. It is well known that credit is the engine of economy. In connection with it the meetings of Heydar Aliyev with the heads of the World Bank, as well as with the heads and rep resentatives of the USA banks like “J-P Morgan”, “Morgan Stanley”, “Lazard Freres”, “Credit Swiss First Boston”, “Goldman Sux”, “Chase Manhattan”, “Citycorp”, “Society General” and others played a positive and important role in the solution of the issues connected with the increase of the amount of credits for Azerbaijan.

22 HEYDAR ALIYEV Azerbaijan oil in the world policy

All this and a number of other problems discussed during the visit attach a special sense to the sentence “We have paved the way for you” said by our President. If we think on the sense of this simple sentence a little more we shall see that it contains so many reminiscences, historical facts, comparisons, finally, human feelings and emotions ! To pave the way to Azerbaijan ... Who has not tried to pave this way to Azerbaijan forcibly since the antiquity, in the early and late Middle Ages and in the present century? They arrived, left their traces and with drew. The richness of the core of the earth and nature of Azerbaijan, its favourable geographical location were the sources of misfortune for our people. These misfortunes turned to real tragedies after the discovery and extraction of oil, if we express more exactly, after the exploitation of oil fields. “If oil is the queen, Baku is her crown” - these words belong to one of representatives of the old generation of owners of oil indus try of America. Struggles have always been waged to own the crown of the queen throughout the history. The popular German writer E.Remark said: “If a man who has once expe rienced the stroke of lightning it is not necessary to explain to him what the electricity is”. We have experienced not once the oil lightning in Azerbaijan. In the past the geopolicy and geostrategy were determined by the dark colour of the crude oil, and the colour of the road which led to oil was redder than blood. In the real meaning of the word “dark gold” was extracted from our soils, instead of it we were given ideas which were strange and inapplicable. By breaking the long - established imaginations on the concept of life and fortune the people was taught a new mode of think ing and behaviour. We can not say that all of them were absolutely unacceptable, but everything which is done, or realised forcibly, soon, or later, is resisted. 23

HEYDAR ALIYEV Azerbaijan oil in the world policy c*

The answer of the history to all this questions will be pro found and comprehensive. But our answer will be very brief: the leaders of the Azerbaijan Democratic Republic were great experimentators, the leader of the Republic of Azerbaijan is a great reformer. After the visit of Heydar Aliyev to the USA there is no need to prove it to anybody. And we shall not try to do it, we shall mention another topic. As we said before, the meetings in the USA were arranged in connection with a huge number of facts and situations of these recent four years. But there is also one thing. Before the visit to the USA, there was a visit to Moscow. Before speaking on documents and commenting them from the point of view of a commenta tor we must remind our readers that in February - March of 1997 the Russian mass media published exposing speeches of parliamentarians of the Russian Duma (lower chamber of the parliament) connected with the illegal sale of arms to Armenia. It is natural that our mass media was also involved in this topic and is still publishing articles on that topic. Despite the scandal, in fact nothing was done in connection with it and nobody was necessarily punished and the statement of the Azerbaijan side, which was full of concrete facts and proofs, have been left unanswered up today. Instead, the newspaper publications in Armenia and Russia say that today it is not only Armenia which is in need of Russia, but Russia also needs Armenia, Russia has a reliable alley in the Transcaucasus and in the whole Middle East in the person of Armenia. As if they have forgotten how well the Armenian diaspora live and function in the USA, instead of 100 million dollar support which this diaspora grants to Armenia each year they call the USA “the world gendarme”. One may hope that one day Russia will give a good and worthy appreciation of its

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“sole alley”, and the politicians of the USA will approach more attentively to the behaviour of the representatives of the Armenian diaspora who address the USA government with thousands of letters in order to exert pressure on the USA gov ernment to bar the visit of the Azerbaijan President to the USA in July - August. Thus, the Armenians called the country “gendarme” instead of the shelter given to them, but the President of Azerbaijan did not do it against the country which sends arms to Armenia which in its turn threatens Azerbaijan with destruction These are documents, this is what they say. The visit of the Azerbaijan President to Russia at the begin ning of July of this year was mostly aimed at the joint solu tion of organisational - business and financial - economic issues. The level of the discussion and their nature told of a partnership of equal parties. It is not a simple problem as it seems at the first sight. The participants of the meeting and discussion which included the heads of the biggest oil companies and the high officials of many institutions also told of this. Boris Nemtsov, first deputy - prime minister of the Russian Federation, was completely right when he called the signature of the contract on oil developments in the Azerbaijani sector of the Caspian Sea on July 3 quite matchless. According to the estimation of specialists this documents overstep the boundaries of a con tract in some sphere. Here we mean the new stage of economic relations between our countries which were noted by the heads of both states. For example, when speaking on the huge economic and industrial potentials of Russia and on the degree of making use of them in the process of reforms, Heydar Aliyev noted that this work have been more successfully implemented into life

С* в-в___иц from our observations. The first lesson: Heydar Aliyev fre quently speaks of the coming century, but he behaves as if he is already living in that century. He has left behind the time, it is worth for those who does not understand it. When they spoke about the great Azerbaijani composer Gara Garayev they said that the sounds of his music came from the XXI century. For Heydar Aliyev we say today that his present policy is echoing in the future. This policy, which has been elaborated by taking into account all the details, is being made on the forwarder of the world oil policy in the sphere of energy resources. The former State Secretary of the USA Zbigniew Brzezinski, who never hides his sympathy with our president, said on this occasion like this: “... the main goal of our policy is to open the doors of the countries of this region wider for the countries of the world community. Therefore, the export of rich natural resources through multi-branch pipelines to the world market must be purposefully supported”. After the return from the USA the active, dynamic policy turned its face to a new address in the “oil” map of the world, i.e. to Italy. The Mediterranean countries may become the main route of oil pipeline. In this regard, display of interest in Italy, in one of the mighty countries of the world, is not acci dental. The Italian “Agip” oil company has an international status and it is in the composition of “Eni” corporation. “Agip” is one of the first companies which put oil deposits into exploitation (Its share together with the Russian “Lukoil” com pany in the exploration and development of the “Garabag” perspective structure is 45 per cent). In general, the President of Azerbaijan appreciated the negotiations in Italy as noteworthy and effective. He said that the Italian side tries to establish and regulate friendly relations

HEYDAR ALIYEV Azerbaijan oil in the world policy c* and to broaden economic cooperation with Azerbaijan. For example, while in Naples Heydar Aliyev declared that he had discussed the issue of the routes of transportation of the Caspian oil to the Mediterranean region with the Italian President Skalfaro. The leader of Azerbaijan noted that Italy with its huge seaports may play an important role in the real isation of this design. The contracts signed by the State Oil Company of Azer baijan in 1994 - 1997 with oil companies of twelve advanced countries of the world on joint oil developments in the Azerbaijani sector of the Caspian Sea have a great historical importance in strengthening of the state and economic inde pendence of Azerbaijan, in drawing foreign investment into the country, in the revival of economy and in improvement of the welfare of population. Taking all this into regard, the President of the Republic of Azerbaijan issued an instruction on October 27, 1997, on the celebration of the extraction of the early oil on November 12 in the Azerbaijani sector of the Caspian Sea by the Azerbaijan International Operating Company. The guests invited from many countries to take part in this celebration stressed the unique role of, the wise leader of the Azerbaijan people Heydar Aliyev in the signature of these contracts and in the organisation of the implementation into life of the programs provided by these contracts. The first deputy prime minister of the Russian Federation Boris Nemtsov regarded the extraction of early oil on the plat form “Chirag-1” as a great economic and political achievement not only for Azerbaijan, but also for Russia. The Minister of Energy of the USA Federico Pena, who called the day of the extraction of the early oil as a historical day of the Azerbaijan people and the day of election of Heydar

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Aliyev to the post of president , noted that in this remarkable day Azerbaijan opens the door of the era of progress and inter national cooperation, and this era is very important for the future of Azerbaijan, as well as for that of the region. He also emphasised the idea that “Azerbaijan, as well as this region are very important for the future of the world”. Celebration of extraction of the early oil in Azerbaijan is really an important event and a symbol of future. The special role of President Heydar Aliyev in the further development of the energy resources of Azerbaijan, in the recognition of our country in the international arena must be particularly noted. Of course, it is a little difficult for me to write these words, but in my relations and attitude to him the feelings of the son towards his father, and also those towards the head of the state, towards the president who has devoted himself to the progress and development of an independent state mix and mingle. As the first vice-president of the State Oil Company of Azerbaijan I have been witnessing the intensive, hard work of President Heydar Aliyev and the successful results of his hard efforts and labour.

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eydar Aliyev, President of the Republic of Azerbaijan, who made his first official visit to the USA at the invitation of the USA President Bill Clinton, was received in the capital of this mightiest state of the world with a great sympathy and respect, he held very use ful meetings, carried out negotiations and signed important documents. The head of our state Heydar Aliyev was met at the Andrew military - air base by high officials of the State Department of the USA. Taking the personal helicopter of Bill Clinton President Heydar Aliyev flew to the memorial complex of the first USA President George Washington, then he started for his residence at the Blair House intended for the highest guests of the USA. 41 с*

The Blair House is near the White House and has a long history. All the influential statesmen who come on an official visit stay there. Today the banner of our independent state is decorating proudly the roof of the “Blair House”. The whole house has been put at the disposal of Mr. Heydar Aliyev, an outstanding statesman and political figure of our epoch. Of course, it is the expression of a great respect to the personali ty of President Heydar Aliyev, who within a very brief period of time led the independent Azerbaijan state to the broad road of development and provided a worthy place for it in the world community. At the peak of his first official visit to the USA, that is, on August 1, President Heydar Aliyev came to the White House. The guard of honour was lined in front of the White House in honour of the head of our state. Numerous representatives of local and foreign mass media, who displayed great interest in the official visit of President Heydar Aliyev to the USA, par ticularly to his meeting with Bill Clinton, President of the USA, and the results of this meeting, who wanted to inform their readers and spectators very briskly, were in front of this building which is famous throughout the world. Bill Clinton, President of the USA, Albert Gore, vice - pres ident of the USA, Madleine Albright, State Secretary and other high officials of the USA met President Heydar Aliyev with a great respect and reverence. President Heydar Aliyev wrote down his best desires in the book for honorary guests of the White House: “I regard my first official visit to the USA as a historical event in the USA - Azerbaijan relations. I greet the people of

42 HEYDAR ALIYEV Azerbaijan oil in the world policy c* the USA on behalf the Azerbaijan people”.

Heydar Aliyev President of the Republic of Azerbaijan

August 1, 1997.

PRESIDENT HEYDAR ALIYEV’S TETE-A-TETE MEETING WITH THE USA PRESIDENT BILL CLINTON

After the solemn reception ceremony of the head of our state there was a tete-a-tete meeting of the USA President Bill Clinton with the Azerbaijan President Heydar Aliyev. President Bill Clinton gave a friendly welcome to President Heydar Aliyev. Mr. Clinton said that he had been waiting impatiently for the official visit of the President of the Republic of Azerbaijan Mr. Heydar Aliyev to the USA and appreciated the visit as a historical event. During the meeting they talked about ongoing democratic processes in our republic, on the undertaken measures for the protection of the independence of Azerbaijan. President Bill Clinton stressed the intensive activity and matchless services of the head of our state in this sphere and that the principal position of Mr. Heydar Aliyev has caused a feeling of pro- 43

с* said that there will be intensive talks in the autumn of this year. He added that there is an obstacle, a stone on the road which leads to progress and development in inter - country relations. It is the Armenian - Azerbaijan conflict, this obsta cle must me removed. President Clinton also emphasised the achievements of President Heydar Aliyev in the foreign policy of Azerbaijan and appreciated them highly. He also expressed his satisfaction once more that President Heydar Aliyev had accepted his invi tation and visited the USA. President Heydar Aliyev expressed his great satisfaction in regard with his official visit to the USA and thanked President Clinton for his invitation. He said that the Azerbaijan people greatly respect the personality of the USA President and regard him to be a friend of our country. Speaking on the current social - political processes in the Republic of Azerbaijan President Heydar Aliyev mentioned the development of democracy, market economy, protection of human rights and realisation of great economic and other reforms. He noted that the implemented reforms are giving their positive fruits, all this is our strategic course and we shall pursue this course. Expressing his gratitude to Mr. Bill Clinton for his high appreciation of the ongoing positive processes in our country President Heydar Aliyev spoke of the recent steps undertaken to solve the Upper Garabag conflict peacefully, particularly those which have been undertaken in the frames of the Minsk group of OSCE. President Heydar Aliyev said that all the aforesaid efforts give hope that this year all conditions will be

48 HEYDAR ALIYEV Azerbaijan oil in the world policy c* created for the peaceful solution of the conflict. He disclosed the position of Azerbaijan in connection with the peaceful solution of the Upper Garabag conflict and did not exclude the possibility of solution of the problem in two stages. The first stage provides the liberation of the six occupied districts, restoration of destructed communications, return of refugees to their native homes, the second stage envisages the return of the districts of Lachin and Shusha and solution of the status of the Upper Garabag. President Heydar Aliyev highly appreciated the home and foreign policy pursued by the USA President Bill Clinton and thought that it was praiseworthy that for the first time in the recent 30 years the USA fulfilled its budget without deficit, particularly President Bill Clinton’s merit in enabling the cre ation of ten million of jobs in the USA. The tete-a-tete meeting of the two presidents also touched such issues as the balance of forces and problems in the Transcaucasean region, extension of NATO towards the East, convention on ordinary weapons and others. The meeting was held in the atmosphere of friendship, sin cerity and frankness. Both of the parties met the text of the joint communique on the USA - Azerbaijan relations with sympathy. During the meeting the Azerbaijani President Heydar Aliyev invited officially the President of the USA Bill Clinton to visit the Republic of Azerbaijan.

HEYDAR ALIYEV Azerbaijan oil in the world policy c* such a successful transition to the economy based on the rela tions of market economy is laid by Azerbaijan’s devotion to deepen the program of economic reforms, as well by its recently adopted decision to expand and speed the privatisa tion, including by its cooperation with the World Bank and International Monetary Fund. Both of the presidents agreed that democracy, economic reforms and protection of humane rights may play an important role in supporting long - term stability in Azerbaijan. President Clinton met with satisfaction the devotion of President Aliyev to the market economy, com mand law, political pluralism and free and fair elections. Both of presidents support the expanding economic and commercial relations, including expansion of bilateral trade, increase of capital investment. Both of presidents stressed the importance of the rapid development of the energy resources of the Caspian Sea and noted the wide participation of the USA companies in the production and transportation of oil and gas resources of Azerbaijan. These have already made their contribution to the nourishment of bilateral trade relations. The presidents welcomed the beginning of the official dialogue on the issues of energy and trade policy. They also came into consent on the vital importance of the European - Asian trans port corridor for the economy of Azerbaijan and as well as for that of the whole region. Both of presidents welcomed the sig nature of contracts on bilateral investments between the USA and Azerbaijan and the agreement on the propagation of pro jects with “Eximbank”. The USA propagates the integration of Azerbaijan to the world economy, including its membership to the world trade organisation within the frames of conditions of commerce applied to the new members. The USA recognised the difficulties which Azerbaijan faces in providing its national security and fully supports the inte-

HEYDAR ALIYEV Azerbaijan oil in the world policy c* the importance of the joint USA - Azerbaijan statement. They also welcomed the main principles of the convention on ordi nary weapons in Europe adopted in Viena on July 23, 1997, and agreed that the adoption of the convention on ordinary armed forces must strengthen the security of each participant country. The two presidents discussed such issues as international terrorism, smuggling of drugs, international crime and spread of weapons of mass destruction which create danger for peace. They agreed to try to expand cooperation in the sphere of security, including the bilateral dialogue on security begun in March of 1997. In order to strengthen the USA and Azerbaijan relations the two presidents agreed to support exchange of parliamentary delegations, exchange of delegations in the sphere of culture, science and education, including the personal relations among separate citizens.

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NEGOTIATIONS BETWEEN THE DELEGATION OF AZERBAIJAN AND THE USA

On August 1 negotiations were held between the delega tions of Azerbaijan and the USA headed by President Heydar Aliyev and President Bill Clinton. President Bill Clinton welcomed the head of our state Heydar Aliyev and the Azerbaijan delegation friendly and sin cerely and spoke with great satisfaction of the present state of the USA - Azerbaijan relations and highly appreciated the undertaken steps for further strengthening and development of bilateral relations. President Bill Clinton stressed the future perspectives of relations between the USA and Azerbaijan in the sphere of politics, security, economy and trade and said that the USA displays great interest in the development of cooperation with Azerbaijan which has an important strategic location in the region. President Bill Clinton emphasised the fact that the USA supports and follows intently the ongoing processes in Azerbaijan in the sphere of construction of a democratic legal state, successful implementation of reforms into life, protection of human rights, pluralism of ideas and said that the USA attaches great importance to the partnership with Azerbaijan. 56

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Caspian Sea, he made a special emphasis on the implementa tion into life of “the Contract of the Century” signed in September of 1994 and also dealt with problems connected with the transportation of oil to the world market. President Heydar Aliyev stressed his discussions with Mr. Clinton by telephone and in personal meetings connected with the determination of the routes of oil pipelines and again stopped on them in detail and spoke of future projects on the construction of a big oil pipeline. The head of our Republic said that Azerbaijan occupies a very favourable strategic location in the region and therefore can play an important role in the intensification of relations of the Central Asian countries with the world market, he added that the oil produced in the deposit “Tengiz” of Kazakhstan by the USA company “Chevron” is transported to Baku through the Caspian Sea which then follows to the world market. President Aliyev also spoke of the intended works for the better organisation of this process and of the oil pipeline which will be laid on the bed of the Caspian Sea. President Heydar Aliyev mentioned the new contracts to be signed on that day between the USA companies “Chevron”, “Exxon”, “Mobil”, “Amoco” and the State Oil Company of Azerbaijan and said that these contracts will give a new incen tive to the strengthening of the Azerbaijan - USA economic cooperation and play an important role in the improvement of relations of our countries. President Heydar Aliyev said that his personal friendly rela tions with Mr. Bill Clinton has laid solid foundations for the further development of the Azerbaijan - USA relations, he also

61 mentioned the personal initiatives of Mr. Clinton in strength ening of cooperation between our countries and highly appre ciated them. President Aliyev said: “Mr. President, you are doing many and great things in this sphere, and I always feel your help and support”. President Heydar Aliyev spoke in detail of the negotiations in the frames of the Minsk group in order to settle the Armenian - Azerbaijan conflict peacefully, he stopped on the three principles adopted by the heads of the OSCE member countries in Lisbon summit for the solution of this conflict and mentioned the support of the government of the USA in the adoption of these principles with great satisfaction. President Heydar Aliyev laid a special emphasis on the joint statement signed in Denver by co-chairmen of the Minsk con ference, presidents of the three influential countries Bill Clinton, Boris Yeltsin and Jacques Chirac, on the importance of this statement and highly appreciated the efforts of these three presidents for the immediate solution of the Armenian - Azerbaijan conflict. He said that our country accepts the pro posals of the co-chairmen of the Minsk group as a basis for the solution of this conflict. He added that we are waiting for Armenia to disclose its position on these proposals. President Aliyev said that he cherishes great hopes to the solution of this conflict soon and is convinced that over a mil lion Azerbaijani refugees and displaced persons will soon return to their own lands. The head of our Republic expressed his assurance that the co-chairmen of the Minsk group will help to solve the conflict on the principles of the Lisbon sum-

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Then speaking of Azerbaijan’s membership in the agree ment on the restriction of ordinary weapons in Europe President Heydar Aliyev stopped in detail on the undertaken measures to protect the sovereignty, security and independence of our country. He said that the independence of Azerbaijan is for ever, irreversible and eternal. There are no troops and mil itary bases of any foreign states in Azerbaijan now and there will not be any in future there. Along with them the head of the Republic of Azerbaijan expressed his anxiety with the transfer of a US$ billion worth of modern weapons by the Russian Federation to Armenia which creates danger for the regional security. President Heydar Aliyev said that Azerbaijan considers the USA as its close friend and partner. He spoke of the existing socio - political situation, of reforms carried out in order to build the economy of the republic on market relations, on the development of democracy and on the undertaken steps in the sphere of protection of human rights. President Heydar Aliyev emphasised the fact that the achievements of the USA and personally those of President Bill Clinton in the sphere of home and foreign policy, as well as successes in the social sphere of the USA are met with great sympathy in Azerbaijan. At the end of the meeting President Heydar Aliyev invited the USA President Bill Clinton and vice - president Albert Gore to pay official visits to Azerbaijan. The invitation was accepted with great satisfaction.

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THE CEREMONY OF SIGNATURE OF THE JOINT-STATEMENT ON THE USA - AZERBAIJAN RELATIONS AND THE CONTRACT ON BILATERAL INVESTMENTS

On August 1 there was held the ceremony of signature of the joint - statement on the USA - Azerbaijan relations and the contract on bilateral investments between the USA and the Republic of Azerbaijan. The documents were signed by President Bill Clinton and President Heydar Aliyev. After the signature of the joint - statement and the contract the heads of the two countries made statements. The USA President Bill Clinton took the floor first.

THE STATEMENT OF THE USA PRESIDENT BILL CLINTON

I am very pleased to welcome President Aliyev and the delegation accompanying him in the White House. The present visit of President Aliyev paves a new stage in the development of relations between our countries. The USA fully supports the efforts undertaken to build a mighty, independent state in Azerbaijan. The achievements and successes of your country

65 с* coincide with our interests completely. Azerbaijan is located in the strategical space where Europe, Asia and the Middle East intersect. Azerbaijan is the entrance door to the Central Asia, it is a country rich in natural resources. Only Azerbaijan, a country which relies on its own opportunities, is able to pro vide stability in the whole region, which is full of conflicts, the security of trade routes between the West and East and implement into life the secure transportation of its energy resources to the world market. Under the leadership of President Heydar Aliyev Azerbaijan has made an important progress connected with the duties of its independence. The USA desires that Azerbaijan will con tinue this progress. The key to the achievement of this goal is in the peaceful and immediate solution of the tragical Upper Garabag conflict. For the fair and sustainable solution of the conflict we make efforts in the frames of the Minsk group of OSCE together with Russia and France. But for the sake of peace the most difficult decisions must be taken by the con flicting parties. The Caucasian states may fully realise their potentials only in conditions of peace. These potentials, including the rich energy resources of Azerbaijan, are well - known. The bed of the Caspian Sea is of vital importance for the implementation into life of new oil and gas projects. The decisions adopted recently in connection with the exploitation of the energy resources will give their fruits for future generations. While participating in the exploitation of energy resources of the Caspian Sea together with Azerbaijan we do not only help the nourishment of Azerbaijan, but also assist to provide our own country with energy products in various ways and the strength ening of the security of our state.

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I am very pleased that today I signed very important docu ments on the Azerbaijan - USA relations with you, the President of the United States of America. You may be sure that we shall fulfil our obligations provided by these docu ments and be devoted to them. Highly esteemed Mr. President, the valuable thoughts that now you expressed concerning our relations, Azerbaijan, our region in general, are very important for us. I fully share your thoughts and support them, and I think that the thoughts told by You now will greatly assist the development of the USA - Azerbaijan relations. The documents signed today, particularly the joint USA - Azerbaijan statement and the words told here by you about Azerbaijan inspire us and give great opportunities to us for the further strengthening of the independence of Azerbaijan. Azerbaijan regards its state independence as a great historical achievement and considers the protection of this independence its honourable duty. Our people is devoted to the state inde pendence and national liberation and will remain devoted to them in future as well. For this purpose it is very important for us to cooperate with the USA, to establish partnership rela tions and expand them further. We consider the USA as our great friend and we think that it is an honour for us to devel op partnership relations with it. Highly esteemed Mr. President, your words concerning the achievement of peace in our region are very important for which I thank you. We desire peace and want to solve the Armenian - Azerbaijan, the Upper Garabag conflict peaceful ly. We shall safeguard our efforts for the peaceful solution of

69 lhe Upper Garabag conflict on the basis and in the frames of principles adopted in the Lisbon summit of the OSCE member countries. The USA's being one of the co-chairpersons in the Minsk group of OSCE is very important. We applaud it and cherish great hopes to the activities of the USA in this sphere. We have accepted the recent proposals of the Minsk group as a basis for prolonging of negotiations. If these proposals are implemented into life, that is, if the six administrative districts occupied by the Armenian armed forces are liberated in the first stage and the internally displaced persons return to their lands, this will be a great and serious step and then it will be possible to restore communications between Armenia and Azerbaijan entirely. We are for prolonging of intensive negotiations in the frames of the Minsk group of the OSCE. These negotiations are participated by the representatives of Armenia, Azerbaijan and the Armenian ethnicity of the Upper Garabag. We are ready to continue this form in future as well. Mr. President, I assure you that we want peace entirely. For three years there is no fire there, we have been keeping the cease-fire regime. But the achievement of a complete peace will open new and great opportunities for both Azerbaijan and Armenia, and for the whole Caucasian region. We understand that Azerbaijan can only in the conditions of peace cooperate with its neighbours effectively and as a partner having equal rights. All the nations and countries of the Caucasus can gain prosperity and happiness only in conditions of peace. Mr. President, I hope that the United States of America, you per sonally will further help to establish fair peace in the

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Caucasus, between Azerbaijan and Armenia, to restore the ter ritorial integrity of Azerbaijan. The USA - Azerbaijan cooperation in the sphere of utiliza tion of the energy resources in the Azerbaijani sector of the Caspian Sea has been a success. We continue and shall con tinue this cooperation. The four contracts signed here today in this hall are good proofs of it. Construction of many oil pipelines, including from the Middle and Central Asia through the Caspian seabed to the West for the transportation of oil to the West, to the world market, is one of the urgent tasks fac ing us in the nearest future. We shall always cooperate with you in this sphere. Mr. President, I want to hope that Section 907 which obsta cles the USA - Azerbaijan economic relations will soon be repealed in the nearest future due to your personal efforts. The United States of America is a big and mighty state. The United States of America have gained great successes in the sphere of democracy, state construction and protection of human rights. All of them are good examples for us, for Azerbaijan which gained its independence not long ago, we shall always make use of your experience. Today when we are here in the White House, in the Roosevelt Room, we honour the memory of great Franklin Roosevelt with a sense of gratitude and we know how many great things he has done. Mr. Clinton, as the President of the USA you do a lot for its development and nourishment. Under your leadership and on your initiative the foreign policy of the USA has gained great successes recently. You have great achievements in the home policy of the USA and in the solu

71 с* tion of social problems. Opening of jobs for ten million of people, elimination of the budget deficit and other things are met with great sympathy not only in the USA, but in all the corners of the world. The great history of the USA, its present state, mode of life, its achievements are good examples for all the nations, particularly for the Azerbaijan people. Mr. President, I congratulate you on these achievements. I wish happiness to the people of the USA, I thank you once more for these matchless meetings, for this visit, for the signed doc uments. Mr. Clinton, I wish you and your family happiness and suc cesses in all your work. Thank you !

*** After the ceremony of the signature of documents President Bill Clinton shook hands and said good - bye to President Heydar Aliyev once more.

DOCUMENTS AIMED AT DEVELOPMENT OF OUR ECONOMIC RELATIONS

On August 1, after the negotiation of delegations there was held a ceremony of the signature of documents in the Roosevelt Room of the White House with the participa tion of Albert Gore, vice - president of the USA, and Heydar Aliyev, President of the Republic of Azerbaijan. The ceremony was opened by Albert Gore.

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THE SPEECH OF ALBERT GORE, VICE-PRESIDENT OF THE USA

I am very pleased to be present in this historical ceremony. Taking the chance I welcome President Heydar Aliyev and the delegation which accompanies him, in the White House once more. Just a little ago President Aliyev and President Clinton had very fruitful discussions first in the oval office, then in Mr. Clinton’s study. Just after this ceremony the discussions will be continued at the dinner party organised by President Bill Clinton in honour of President Heydar Aliyev. Then the presidents will take part in another signature cer emony. Today here in the Roosevelt Room we shall lay the foun dations of the official energy dialogue between our govern ments. We shall also be witnesses in the ceremony of signa ture of four big oil contracts. The energy dialogue reveals how seriously we approach the utilisation of the natural resources of the Caspian Sea. These commercial projects are the result of long and intensive talks between the companies “Amoco”, “Chevron”, Exxon”, “Mobil” and the State Oil Company of Azerbaijan. I would have never imagined that I would have so much information on these contracts. I know that all these ini tiatives have been built on the idea to benefit the citizens of both countries, to have mutually beneficial results which are 73

HEYDAR ALIYEV Azerbaijan oil in the world policy ыцшмшшм^ ...... IP presence, tell of the beginning of a new stage for the whole Caspian region. This day will remain in the memory of all countries of your region as a remarkable day, as a part of his tory of the sustainable efforts aimed at creating and keeping commercial relations with each other and with the whole world. Azerbaijan and your neighbours must liberate them selves from the vices of the past, their peoples must live in conditions of justice and peace and continue their efforts in the direction of building of legal states and finish this process vic toriously. Mr. President, now I give the floor to you and at the end of my speech 1 convey my congratulations to you.

SPEECH OF PRESIDENT HEYDAR ALIYEV

Highly esteemed vice - President ! Esteemed ministers, dear friends ! Today a historical event is taking place in the USA - Azerbaijan relations. The President of the Republic of Azerbaijan for the first time is paying an official visit to the USA. We had very useful talks and today since the morning we had very useful negotiations with Mr. Bill Clinton and his officials in a very friendly atmosphere. In these talks we also discussed the further expansion of the USA - Azerbaijan eco nomic relations. We have great opportunities in this sphere and it is necessary to make an effective use of these opportunities.

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We have been creating these opportunities up to the present day, because we signed the biggest contract, the contract known as “the Contract of the Century” in September of 1994. I declare it with a sense of pleasure that this contract is being implemented into life constructively and as a result of activ ities of the oil consortium the early oil will be produced in September of this year. Two oil pipelines are being constructed for the export of oil to the West, to the world market. The construction of the third and the biggest oil pipeline will begin soon. Today here, in Washington, in the White House I declare with a sense of pride that the oil workers of Azerbaijan dis covered and began the first off - shore oil productions fifty years ago. At the end of the XX century Azerbaijan is putting the rich and big oil deposits of the Caspian Sea at the dispos al of the world. I am pleased to say today that the big oil com panies of the USA are taking an active part in this process. We understand that the arrival of foreign investments in Azerbaijan, integration of our economy with that of the world, particularly establishment of strong economic relations with the USA serve the future of the Azerbaijan people. At the same time, these economic relations, functioning of the big oil companies of the United States of America and other world companies in Azerbaijan help the expansion and development of the USA - Azerbaijan relations in all the spheres. I want to note with a sense of pleasure that the USA President Mr. Bill Clinton attaches a special importance to these problems and does much and takes serious actions to solve them. We are cooperating with Mr. Albert Gore in these issues very closely and he has great merits in the implementation of these into life.

HEYDAR ALIYEV Azerbaijan oil in the world policy the development of energetics between the USA and the Republic of Azerbaijan. The first vice - president of the State oil Company of Azerbaijan Ilham Aliyev and the first vice - president of the USA “Chevron” company Richard Matzke signed a contract on the exploration, joint developments and production sharing in the “Apsheron” perspective deposit of the Azerbaijani sec tor of the Caspian Sea between the State Oil Company of Azerbaijan and “Chevron” company of the USA. The first vice - president of the State Oil Company of Azerbaijan Ilham Aliyev and president of “Exxon” company of the USA Terry Koonce signed a contract on the exploration, joint oil developments and production sharing in the perspec tive field of “Nakhcivan” in the Azerbaijani sector of the Caspian Sea. President of the State Oil Company of Azerbaijan Natig Aliyev and president of “Mobil” company of the USA Bill Scoggings signed a contract on the exploration, joint oil devel opments and production sharing in the perspective “Oguz” field in the Azerbaijani sector of the Caspian Sea. The fourth contract was concluded between the State Oil Company of Azerbaijan and “Amoco” company of the USA. This contract of cooperation signed by the president of the Azerbaijan State Oil Company Natig Aliyev and the president of “Amoco” company Chuck Pitman grants exclusive rights to “Amoco” to carry out negotiations in connection with the per spective structure “Inam” in the Azerbaijani sector of the Caspian Sea.

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MEETINGS WITH THE STEERING BODY OF “BP - AMERICA” COMPANY

On July 28, in New York, President of the Republic of Azerbaijan Heydar Aliyev met the representatives of “BP - America” company Stiff Persey, Edward Whitehead and Michael Townshat in his residence. The businessmen were pleased to meet the head of our state and appreciated the official visit of President Heydar Aliyev to the USA very highly. They expressed their assurance that the visit will be a success and said the whole USA was waiting for President Heydar Aliyev impatiently. Speaking of the established good relations between our countries the businessmen stressed the fact that the further expansion of cooperation will be very useful for both of par ties. The representatives of “BP - America” spoke of the oil theme which is very close to them and said that the investment to the oil industry of Azerbaijan by the big oil companies of the USA will not only contribute to the development of coop eration, but also positively influence the support and protec tion of all interests of Azerbaijan in America. They noted that the company “BP - America” will not remain as an outsider in these issues and defend the political interests of Azerbaijan. The businessmen informed President Heydar Aliyev on the state of affairs in companies represented by them and said that

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“BP - America” is involved mainly in producing oil from the deepest layers of the sea and has accumulated a good deal of experience in this sphere. They said that “BP - America” is going to use this experience in oil developments of the Caspian Sea and like many other oil companies of the USA is ready for a long - term cooperation with Azerbaijan. The representatives of “BP - America” stressed the fact that they are aware of Section 907 and said that they will do their best and render an all-round assistance to our country to repeal this Section. President of the Republic of Azerbaijan Heydar Aliyev expressed his satisfaction with the information given by the businessmen, with the kind words addressed to our country and their intention to cooperate with our republic. He said that we have created all conditions for joint ventures with compa nies of various countries of the world and as well as for the companies of the USA, including the companies involved in oil developments. Protection of foreign investments in our country has found its expression in the legislation, Azerbaijan is building its economy on the principles of market relations and has opened its doors to the world. The natural resources of our country do not consist only of oil and gas. Azerbaijan has many other natural resources and a strong economic poten tial, and we are making an effective use of these natural resources for strengthening of our state and improvement of the welfare of our people.

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MEETING WITH THE PRESIDENT OF “FRONTERA RESOURCES” COMPANY

President of the Republic of Azerbaijan Heydar Aliyev met Bill White, president of “Frontera Resources” company, in his residence in Houston on August 2. President Heydar Aliyev greeted Mr. White, the representa tives of his company and other guests sincerely and expressed his satisfaction with the development of relations between the USA companies and Azerbaijan. Mr. White thanked President Heydar Aliyev for giving him the chance to meet him and said that he was honoured by the reception. He said: “Mr. President, you are building a mighty and independent state, and in order to achieve this goal you make use of the chances of the world policy wisely. I think that the meetings you held during the visit to the USA, your successful negotiations here are one of important stages of your long - term programme. I am sure that due to your wise, well - thought policy Azerbaijan soon will become one of the most advanced and developed countries and your people will live a happy life and in abundance”. President Heydar Aliyev appreciated his official visit to the USA as a historical event and said: “My meetings with President Bill Clinton in the White House, various negotiations and the signed documents pave a new era in the Azerbaijan 82

с* equipments, as our partner to act jointly, and today Mr. Luckins, President of “Baker Hughes” is here with me to meet you. They have consented to take part in the exploitation of two on-shore oil deposits”. President Heydar Aliyev said that he was pleased with the fact that “Baker Hughes” displayed interest in Azerbaijan and added that we attach a special importance to expand the scope of our relations. Mr. White emphasised the importance of the exchange of information between our countries and said: “Mr. President, during your meeting with Mr. Clinton in the White House you felt how attentively he listened to the information on the devel opment of events in the region, and he said that he benefited from your analysis of events”. Then Mr. White spoke with great satisfaction of the stabil ity established in the country due to the measures taken under the leadership of President Heydar Aliyev and said that they will do their best to help the solution of problems facing our republic, particularly in the peaceful solution of the Armenian - Azerbaijan conflict, to repeal Section 907 to “Freedom Support Act” adopted by the USA Congress. During the talks a wide exchange of views was held on the intensification of relations between Azerbaijan and “Frontera Resources” company.

White House and that he followed with great interest the offi cial visit of our president to the USA and read the numerous articles in newspapers devoted to this visit. President Heydar Aliyev thanked him for his kind words and congratulated him on the occasion of the signature of the contract between “Chevron” and the Azerbaijan State Oil Company. Mr. Richard Matzke said that he was in the White House for the first time and it was the first time that he was wit nessing the signature of such a contract in the White House, and for all of this he thanked President Heydar Aliyev. He pre sented President Heydar Aliyev with the photo of him and President Bill Clinton taken during their meeting in the White House. Mr. Richard Matzke appreciated President Heydar Aliyev as one of the greatest statesman of the world and said that due to his merits the contracts between the State Oil Company of Azerbaijan and the USA companies were signed in the White House and that this event will remain in memories as a his torical event. President Heydar Aliyev expressed his satisfaction with his words and said: “Yes, I took you to the White House”. The ceremony of signature of contracts was participated by Mr. Albert Gore, vice - president of the USA, Ms. Albright, State Secretary of the USA, Mr. Pena, Minister of Energy of the USA, Mr. Daly, Minister of Trade of the USA and other high officials. President Heydar Aliyev said that he had a wide discussion on the transportation to the world market of oil produced in the deposit of “Tengiz” of Khazakhstan by “Chevron” compa ny of the USA by tankers to Baku through the Caspian Sea and added: “I said to Mr. Clinton that in June of this year dur-

с* tion had interested Mr. Clinton greatly. The head of our repub lic told the president of “Chevron” company that it is neces sary to speed the construction of the pipeline through the bed of the Caspian Sea. The representatives of “Chevron” informed President Heydar Aliyev on activities aimed at the construction of this pipeline. In his turn President Heydar Aliyev gave necessary instructions to Natig Aliyev, president of the State Oil Company of Azerbaijan, in connection with the construction of the pipeline. Mr. Richard Matzke, president of “Chevron” company, assured the head of our state that attentions will be increased to the construction of the pipeline and all necessary measures will be taken for the completion of the construction as soon as possible. Mr. Richard Matzke said that due to the reforms carried out under the leadership of President Heydar Aliyev Azerbaijan has occupied a special place in the world community, he expressed his assurance that owing to the intensive activities and efforts of President Heydar Aliyev, a popular world states man, who has won the image of a reformer, the Republic of Azerbaijan will soon become one of the most developed coun tries of the world. Mr. Richard Matzke spoke of close and necessary partici pation of the USA companies in the solution of problems fac ing Azerbaijan, of efforts undertaken by “Chevron” to repeal Section 907 adopted by the USA Congress in the past and added that they will multiply their efforts for the removal of the said Section. He appreciated highly the project proposed by Congressman Peter King for the removal of Section 907 and said that his company will assist constructively for the implementation of this project into life. President Heydar Aliyev thanked the president of

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“Chevron” company for the aforesaid efforts and reminded that the active participation of the USA companies in the new stage of relations between our countries, the foundation of which is laid by his official visit acquires a great importance. President Heydar Aliyev noted that there are great opportu nities for a close cooperation with our country, which has cho sen the road of market relations, and we attach great impor tance to the further development of relations with all the busi ness circles of foreign countries, we are sure that the invest ments into the Azerbaijan economy will be mutually benefi cial. During the talks a wide range of discussions were held on the implementation of provisions of the newly signed contract with “Chevron” and also on issues concerning the existing cooperation opportunities in other spheres.

MEETING OF PRESIDENT HEYDAR ALIYEV WITH PRESIDENTS OF “JOHN WING AND CHARLIE WILSON” COMPANY

President of the Republic of Azerbaijan Heydar Aliyev met the presidents of “John Wing and Charlie Wilson” company of the USA John Wing and Charlie Wilson in his residence in Houston on August 2. The presidents of “John Wing and Charlie Wilson” greeted President Heydar Aliyev sincerely and congratulated him on the occasion of his successful official visit to the USA.

HEYDAR ALIYEV Azerbaijan oil in the world policy ■мшммммС* мииииииииии^^и sown seeds have given sprouts today due to efforts of Ambassador Hafiz Pashayev and my scanty assistance”. President Heydar Aliyev thanked Mr. Wilson for his kind words and said: “I am very glad that the number of our friends in the USA is growing day by day, month by month, year by year. Both the government and the public of the USA know Azerbaijan better and understand the reality of our country now. You have your special place among our friends here. I appreciate your merits very highly. You are a very just and brave man. Therefore you made a daring step in the Congress and supported Azerbaijan. We shall never forget it. We regard you the closest friend of Azerbaijan. I suppose our friendship will be for ever”. President Heydar Aliyev expressed his satisfaction with the meetings and negotiations which he had held during his offi cial visit to the USA and said: “In all this meetings I have tried to present Azerbaijan as a fair and peaceful country, and the USA public believe that is true. Azerbaijan wants to coop erate with the USA closely. 1 am very happy that our desire and the wishes of the US X fully coincided. President Clinton and I signed a document of historical importance between Azerbaijan and the USA in the White House yesterday. We signed other documents as well, but the joint - statement on the partnership of our countries signed by us is of special sig nificance, President Clinton made a very impressive and valu able speech at the signature ceremony of this document. This document also envisages the issue for which you were fight ing, i.e., the removal of Section 907, and obligations of President Bill Clinton on the same problem”. Emphasising the similarities of the USA and Azerbaijan people Mr. Wilson said that the representatives of a number of 91 с* the USA newspapers, socio - political movements and other circles have only now understood that Azerbaijan is strategi cally an important country in the region. President Heydar Aliyev shared the opinion of Mr. Wilson and appreciated the performed works in this sphere positively and spoke of the importance of developing them in future. The head of our republic said that there is a great need to convey the just cause of Azerbaijan to the world public and to achieve their support. In his last meeting with the presidents of “John Wing and Charlie Wilson” there was held an exchange of views on deep ening of cooperation with the company. The presidents of the company informed the president of the Republic of Azerbaijan in detail on their new proposals. These proposals, which are connected with the reconstruction of the sphere of energetics, were met by the head of our republic with great satisfaction and he said that their realisation will play an important role in the development of the economy of Azerbaijan. President Heydar Aliyev once more stressed the fact that Azerbaijan has chosen the road of market relations, its doors are open for the businessmen of foreign countries, and estab lishment of broad relations with the company “John Wing and Charlie Wilson” in many spheres will be beneficial for both parties. The head of our state mentioned the Armenian - Azerbaijan conflict, which is very aggravating for our country, and spoke of the present state of negotiations within the frames of the Minsk group of the OSCE for the peaceful solution of the con flict, he stressed the necessity of an active participation of the USA companies, which cooperate with Azerbaijan, to support the just cause of our republic. 92

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He said that they were waiting impatiently for the official visit of our president and spoke with satisfaction of very suc cessful meetings and negotiations which President Heydar Aliyev had with Mr. Bill Clinton. President Heydar Aliyev reminded that really he had very successful meetings and negotiations with President Bill Clinton and they had signed a number of very important and valuable documents in political, economic spheres and in the sphere of security between our states, including a joint state ment on partnership relations between Azerbaijan and the USA. Pie said: “We signed many documents in the White House. But the most important document that we have ever signed with President Clinton is the joint statement on the development of the USA - Azerbaijan relations. I took sever al presidents of the USA oil companies to the White House, we signed new oil contracts there. They were in the White House for the first time. Before you I met the president of “Chevron” company, he said that he had never been to the White House, that I had taken them there”. Mr. James Pate, president of “Pennzoil” company, stressed that he supported heartily the measures undertaken by the administration of Azerbaijan. He said: “Mr. President, I well remember that during one of my visits to Baku you said that many people from foreign countries come to you and promise lots of things to do for Azerbaijan. But you know more than all who does what and in what way. We work in very close cooperation with Hafiz Pashayev, Ambassador of your coun try here. The first USA company to come to Azerbaijan and to invest in gas industry was “Pennzoil” company. Besides, we are functioning in the composition of AIOC created within the

95 с* frames of the “Contract of the Century”. Besides, “Pennzoil” has signed a contract on joint developments in “Garabag” deposit and this week we are beginning to drill the first well in that gas deposit”. Mr. James Pate informed President Heydar Aliyev on nego tiations carried out between “Pennzoil” and the State Oil Company of Azerbaijan on joint oil developments in other deposits and asked the President’s permission to continue their efforts. President Heydar Aliyev expressed his satisfaction with the relations between “Pennzoil” and Azerbaijan and said: “’’Pennzoil” is one of the first foreign oil companies which came to Azerbaijan. I highly appreciate the merits of “Pennzoil” in the construction of gas compressor stations and in the increase of gas production in Azerbaijan. “Pennzoil” has its share in “the Contract of the Century”. Your company is playing the leading role in the realisation of the contract on joint oil developments in “Garabag” deposit. I know that your company does much to present and propagate the interests of Azerbaijan in the USA. I am aware of that. I suppose that we must continue our cooperation. For this purpose it is necessary to speed the developments in “Garabag” deposit, because we signed the contract on that deposit in 1995”. Mr. James Pate made several proposals to intensify the rela tions between “Pennzoil” and Azerbaijan. President Heydar Aliyev met the proposals of “Pennzoil” with great satisfaction and gave necessary instructions to high officials of SOCAR in connection with them. Mr. James Pate said that “Pennzoil” will continue its efforts in future to defend the just cause of Azerbaijan, he also added

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Speaking of the hospitality shown to him during his official visit to the USA with great satisfaction he said: “I feel your hospitality everywhere. I appreciate very highly the attention, care and hospitality shown to me by Mr. Bill Clinton, in par ticular”. President Heydar Aliyev thanked the officials of “Pennzoil” for their efforts aimed at repealing of Section 907 adopted by the USA Congress. He spoke of his meeting with general Scowcroft and other popular politicians of the USA in his residence at the “Blair House” in detail. President Heydar Aliyev spoke of his broad exchange of views with Mr. Bill Clinton on steps undertaken to repeal Section 907 adopted by the USA Congress. He said: “Mr. Clinton declared during my meeting in the White House and it has also found its expression in the document signed by us that the President of the USA Bill Clinton will make efforts to repeal Section 907. I had more than fourty meetings in the par liament. I met congressmen, senators, chairman of the Committee of International Relations Mr. Gilman, speaker of the House of Representatives Mr. Gringrich. You know that congressman Mr. King has submitted a very good bill for repealing Section 907. They promised me in the Congress that they will try to solve this problem in September. 1 think we shall manage to solve all this with joint efforts”. Mr. James Pate assured President Heydar Aliyev that they will do their best for the solution of this problem. He also mentioned the fact that Ambassador Hafiz Pashayev represents Azerbaijan in America very well and reminded some of his efforts in the Capitol for the defence of realities of Azerbaijan and expressed such a conviction that Section

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907 will be repealed namely in the autumn of this year, he said that Mr. Scowcroft, senator Baker and Mr. Brown want to visit Azerbaijan again and to witness the changes and progress which have taken place in the republic in the recent years. President Heydar Aliyev asked Mr. Pate to convey his greetings to Mr. Scowcroft, senator Baker and Mr. Brown and invited them to visit Azerbaijan. Mr. Pate said that the former USA president George Bush wishes to meet Mr. Heydar Aliyev very much and he added that he was very sorry that Mr. Heydar Aliyev’s schedule was very tense and had no time to meet Mr. Bush. President Heydar Aliyev said that he had received Mr. Bush’s letter and he was very eager to meet him, but unfortu nately Mr. Bush lived very far, therefore he could not arrange a meeting with him. He said: “It was very necessary for me to come to Houston. I thought that Mr. Bush will be there and we shall meet. But we could not meet each other. Please, con vey my best regards to him and tell him that I invite him to Azerbaijan. If he is able to come we shall meet there. If he is unable, then in my next visit to the USA we shall meet by all means”. Mr. Pate once more reminded Mr. Bush’s desire to meet President Heydar Aliyev and suggested that Mr. Bush and gen eral Scowcroft to visit Baku by “Pennzoil’s” plane. President Heydar Aliyev accepted the proposal with great satisfaction. Mr. Pate also spoke of the competition of “Pennzoil” with other USA companies in detail. Then he said: “Mr. President, we are proud with your leadership, we highly appreciate the resistance that you exert upon the outside forces against your country. We are amazed at you for all this”.

HEYDAR ALIYEV Azerbaijan oil in the world policy c* event and congratulated him on successes achieved during this visit. He introduced Mr. John Mareska, once an Ambassador, now an employee of “Unocal”, to Mr. Heydar Aliyev. President Heydar Aliyev reminded that Mr. John Mareska was an experienced valuable man who knew the Caucasian region well and said: “Mr. Mareska was once dealing with the political affairs of our region, but as he is involved in econo my, he can help our republic a lot. The problems that he was once dealing with have not yet settled, but we are making steps towards their solution gradually”. The head of our state said that there are favourable condi tions to repeal Section 907 adopted by the USA Congress and that he had met more than 40 members of the Congress on the Capitol. He reminded that he had discussions on this issue with the speaker of the House of Representatives Mr. Gringrich and the chairman of the International Relations Committee Mr. Gilman. He said: “Mr. Gringrich and Mr. Gilman told me that they will make very serious steps to repel Section 907”. President Heydar Aliyev highly appreciated the bill submit ted by Congressman Mr. King for the removal of Section 907. The Azerbaijani President Heydar Aliyev stressed the fact that he had discussed this problem with Mr. Bill Clinton dur ing their meeting in the Vv hite House and that Mr. Bill Clinton had not once expressed his opinion on the necessity of removal of Section 907 in the past. But at the meeting in the White House he disclosed his full determination in connection with this problem. The joint statement on the USA - Azerbaijan relations signed by President Bill Clinton and me also says Mr. Bill Clinton will take decisive steps to repeal Section 907.

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* reached a positive stage and it is necessary that “Unocal” shall support our country in the solution of this issue as well. Mr. Imle said that the company headed by him supports and will further support all what is progressive in Azerbaijan. Mr. Imle emphasized the fact that “Unocal” has always dis played interest towards Azerbaijan and congratulated President Heydar Aliyev on the occasion of signature of oil contracts between the USA companies and the State Oil Company of Azerbaijan in the White House. He expressed his confidence that such a document will soon be signed between “Unocal” and the Republic of Azerbaijan in the nearest future. President Heydar Aliyev appreciated the signature of oil contracts in the White House as a historical event and said: “For instance, the contract between Kazakhstan and “Chevron” company of the USA on joint oil developments in the deposit of “Tengiz” was signed in the “Blair House””. Only one ambassador on the side of the USA took part in the ceremo ny. But our contracts were signed in the White House when we had negotiations with President Bill Clinton. Vice - presi dent Albert Gore made a speech at the signature ceremony, Ms. Albright, the State Secretary, Ministers Mr. Pena and Mr. Daly and other high officials of the USA government took part in the ceremony. They say that it is the first ceremony of this kind in the history of the White House. We added a new page to the history of the White House”. Then President Heydar Aliyev reminded that Azerbaijan is ready to sign such a contract with “Unocal” in future and said that it is important to take necessary measures in connection with this contract.

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Mr. Imle said that “Unocal” displays interest in the devel opment of two deposits in the Azerbaijani sector of the Caspian Sea and disclosed his proposals to the head of our state. President Heydar Aliyev said that he was very positive to “Unocal” and stressed the role of “Unocal” in the establish ment of the Azerbaijan - USA cooperation and also spoke of his thoughts concerning “Unocal” during his talks with President Bill Clinton. Mr. Imle thanked President Heydar Aliyev and proposed to build houses for the Azerbaijani refugees in districts of their temporary settlement. He also said that “Unocal” will do its best to help the peaceful solution of the Armenian - Azerbaijan conflict. Mr. Imle said that Azerbaijan was like home for them and thanked the head of our republic for conditions created for the representatives of his company. During the talks they also exchanged a wide opinion and views on the route of oil pipelines for the transportation of the Azerbaijan oil to the world market.

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MEETING WITH THE PRESIDENT OF “CONOCO” COMPANY

On August 2 President of the Republic of Azerbaijan Heydar Aliyev met Mr. Dunham, President of “Conoco” com pany of the USA in his residence in Houston. Mr. Dunham greeted President Heydar Aliyev heartily and said that he was honoured to meet Mr. Heydar Aliyev, an out standing politician and congratulated him on the occasion of his historical visit to the USA. Mr. Dunham said that “Conoco” attaches special impor tance to the expansion of cooperation with Azerbaijan and that “Conoco” possesses a good experience in producing gas and oil from the deepest layers of the sea. He added that as a result of the foresighted policy of President Heydar Aliyev the rela tions of Azerbaijan with the world community have grown and many influential and big foreign companies have begun to dis play interest in the republic. Mr. Dunham expressed his satisfaction with the rapid devel opment of the Azerbaijan - USA relations and spoke with great pleasure of the new stage of relations between our partner countries. Mr. Dunham stressed the fact the USA companies which closely cooperate with Azerbaijan are obliged to assist the solution of problems which Azerbaijan is facing, especially the peaceful solution of the Armenian - Azerbaijan conflict and

105 the repeal of Section 907 to the “Freedom Support Act” adopt ed by the USA Congress in 1992, he promised President Heydar Aliyev to revive the undertaken steps in this direction together with other USA companies functioning in Azerbaijan. President Heydar Aliyev thanked Mr. Dunham for his kind words and intentions and expressed his great satisfaction with the successful visit to the USA, the most influential world country. He said that he regards his negotiations in the White House with President Bill Clinton and the signature of histor ical documents which play a special role in the Azerbaijan - USA relations as the peak of the official visit. He expressed his confidence that these relations will increase rapidly in the new stage build on solid foundations for the development of cooperation between our countries. President Heydar Aliyev said that Azerbaijan has chosen the road of market relations, is building a legal, democratic state and carrying out reforms and privatisation successfully. He also mentioned that many big companies of influential foreign countries are displaying interest in Azerbaijan and are eager to invest capital to our economy. He expressed his satisfaction with the present state of relations of Azerbaijan with the USA companies. The Azerbaijani President met the proposals of the presi dent of “Conoco” company with great interest and said that there are great opportunities in our republic for coopreation with “Conoco” in many spheres. During the talks they exchanged views on a number of issues necessary for the revival of relations and considered the perspectives of mutually beneficial cooperation.

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President is continuing successfully, and that the businessmen, who have invested capital in Azerbaijan, are pleased with such a progress of the visit. Addressing President Heydar Aliyev Mr. Terry Koonce said: “You have been elected the honorary citizen of Texas today, and I was born in Texas, therefore I consider that we are a kind of relatives now. You have a grandson born now, I congratulate you. I have a grandchild of about two weeks old, too”. Mr. Terry Koonce reminded that a contract had been signed in Washington between SOCAR and “Exxon” on oil develop ments in “Nakhchivan” deposit for which he thanked President Heydar Aliyev once more. He said: “It is due to you that we have managed to participate in the “Contract of the Century” and we appreciate it very highly. But the contract signed in Washington is the first contract which we have signed with SOCAR alone. We attach a great significance to it, because it creates conditions for a close and direct cooperation with the State Oil Company of Azerbaijan”. Mr. Terry Koonce presented President Heydar Aliyev with a small effigy of an eagle in memory of the signature of the contract on “Nakhchivan” deposit and said: “It is not the first eagle which you get during your visit to the USA. We think that eagle is the symbol of a number of things. First of all, when you look at the map of Azerbaijan you see that it reminds of an eagle. In the USA eagle has always been the symbol of freedom and independence. Azerbaijan has also chosen the road of freedom and independence. We thought the symbol of the eagle will be a good present to memorize always the contract signed by us with the State Oil Company of Azerbaijan”. President Heydar Aliyev thanked him for the present and said: “This is a present which 1 really like. You are quite right. Azerbaijan really resembles a big eagle. Our nation has waged

108 HEYDAR ALIYEV Azerbaijan oil in the world policy c* struggles for freedom for a long time, for many decades, for many centuries. We managed to gain independence because our nation possess features inherent to the eagle. I know that eagle is the symbol of the USA’s freedom. One of the pictures of these eagle, a reflection of the eagle on the state emblem of the USA was presented to me by the President of the USA Mr. Bill Clinton on the fifth day of my visit. It is a great gift given to me by Mr. Bill Clinton. I accept your present with a great pleasure, too”. President Heydar Aliyev said that he was greatly pleased with the signature of the contract between SOCAR and “Exxon” on the perspective “Nakhchivan” structure and that this company has been paid a special attention since its arrival in Azerbaijan. Addressing the president of “Exxon” company Mr. Heydar Aliyev said: “Distribution of a small share left after the signature of the “Contract of the Century” in 1994 created great difficulties. I think you remember that many big companies like you wanted to have this share. There were companies from your country, from Europe and also from our neighbours there. You know them, I know them, I do not want now to name them, it is already the fact of the past. At that time it was difficult to adopt decisions for me, too, because all these companies were very reliable and big like yours, and all of them wanted to establish good relations with us. I thought a lot and at last made up my final decision which created conditions for “Exxon” to join the contract after the signature of the “Contract of the Century”. And later we had several meetings with you and I wanted you to work alone in one deposit, separately, independently. Thank God, at last it became possible. The name of the deposit is “Nakhchivan”, the name of my birthplace. Therefore the responsibilities to work on this deposit is greater than on the others”.

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When Mr. Terry Koonce said that they were proud of it, President Heydar Aliyev stressed such an idea and said: “’’Exxon” must strive to build its works in the deposit so that to be distinguished from other companies, especially while producing oil there. I love my birthplace not only because it is my birthplace. I love it also for the fact that in 1990 when I lived in Moscow my life was in great danger, I was perse cuted and I was facing great deprivations, I returned to Azerbaijan, and as it was impossible for me to live in Baku I left for Nakhchivan, to my home town. I had very difficult and hard days there, but Nakhchivan embraced me, accepted me into its bosom. And I gave them life. Had not I gone there per haps they would have been exposed to a much greater dan ger. Therefore I love my birthplace, my motherland. It stretched me its hand in my hard days, I appreciate it very highly”. Speaking of the activities connected with the work of “Exxon” company in “Nakhchivan” deposit President Heydar Aliyev said: “I think that you will begin you works constructively. I know that “Exxon” is the biggest oil compa ny of the USA. But I do not know whether you have ever signed a contract in the White House ? Mr. Koonce said that it was the first time. Now you see, we did not only manage to sign a contract with you, at the same time we managed to sign it in the White House. I have met you in Baku not once, I have met you in the USA, as well. But now we signed a contract in the White House, with the participation of high officials of your government, it is a great historical event, it is also impor tant that it was you who signed the contract”. Mr. Koonce reminded that his company together with SOCAR are working in the block called В-9 in the Caspian Sea and that perspective structure is located in the deepest part of

110 HEYDAR ALIYEV Azerbaijan oil in the world policy c* the sea. According to him, it will also be good to sign a con tract on this structure as soon as possible. It will give chance to them and to SOCAR to penetrate into the deepest parts of the Caspian Sea and extract oil. Going on in his speech Mr. Terry Koonce said that it will be better that you give a name to this deposit, because B-9 does not mean anything. Answering to this remark of Mr. Koonce President Heydar Aliyev said: “It is a temporary name, and the deposit will have its name when a contract is signed on it. I shall instruct Natig Aliyev to inform me on it”. Mr. Terry Koonce said: “We want to take part in the devel opment of big structures located in the depth of the Caspian Sea and soon we shall submit our proposals to SOCAR. I think that there are great oil reserves in the deep layers of deposits in the Azerbaijani sector of the Caspian Sea. The experience and possibilities of “Exxon” give me reason to say that we can develop effectively these deposits jointly with SOCAR". Taking the chance Mr. Terry Koonce mentioned one thing else. He said: “Mr. President, we already spoke on this issue in June of this year. It is connected with the exploitation of a gas deposit in the Caspian Sea. In June we said that we shall prepare our proposals on the reserves of gas in these deposits, on the production of gas in these deposits and on its trans portation together with the State Oil Company of Azerbaijan. Now these proposals are ready and we think that our vice - president and Mr. Natig Aliyev will consider them and for mulate them as final proposals in the nearest weeks. To my mind, it is necessary to be quite flexible in the matters con nected with the exploitation of gas deposits, because, pur chasers of this product differ from those of oil, that is, here there is a high competition and need for gas. If we take into account the closeness of distance, the best market for the

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Azerbaijan gas is Turkey. Your Northern neighbour “Gasprom'’ of the Russian Federation has already signed a number of contracts with Turkey, but there is still a demand for gas in Turkey. Therefore, in order not to loose this market it is necessary to speed the researches”. In connection with Mr. Terry Koonce’s proposals President Heydar Aliyev said: “If everything is ready, then I shall instruct Natig Aliyev to carry out negotiations and submit the final project. I accept what you say. There is a great demand for gas in our region, as well as in Turkey and other countries. Therefore it will be better if we begin this work as soon as possible. The president of “Amoco” company said they work quite in the deepest layers. As I have heard they have even signed a contract to work in the depth of three thousand metres”. At the end of the meeting President Heydar Aliyev said: “Our friendship is very reliable and we shall consider all your proposals. I fully share your ideas concerning the proposal to speed the development of gas deposits. The meeting was held in the atmosphere of friendship and sincerity.

MEETING WITH THE PRESIDENT OF “ARCO” COMPANY

On August 3, President of the Republic of the Azerbaijan Heydar Aliyev met Mr. Mike Boblin, president of “Arco” company of the USA, in his residence in Houston. Mr. Mike Boblin greeted President Heydar Aliyev warmly and said that his first official visit to the USA has created a 112 HEYDAR ALIYEV Azerbaijan oil in the world policy c* great resonance and the public of the country display great interest in this visit and he has amazed him. He said: “Mr. President, we are amazed by your negotiations with Mr. Bill Clinton and other high officials of the USA government”. President Heydar Aliyev thanked Mr. Mike Boblin and spoke with great satisfaction of his official visit to the USA which continued very successfully. Mr. Mike Boblin, president of “Arco” company congratulated Mr. Heydar Aliyev on the birth of his grandson heartily. He presented Mr. Heydar Aliyev with a China vase with the imprint of the oldest world map on it. Mr. Mike Boblin said that in ancient times Azerbaijan occu pied an important place in the world map like now. Mr. Mike Boblin also stressed that the meeting of President Heydar Aliyev at the Conference of Presidents of Jewish Organizations in the USA had been met with great sympathy. President Heydar Aliyev noted the importance of that meet ing and said that he was very pleased with that meeting. He said: “They paid me great attention and close friendly rela tions have been established between us”. Mr. Mike Boblin said that he intends to intensify the rela tions of “Arco” with Azerbaijan and made some proposals in order to revive these relations. He said: “’’Arco” company sup ports all the undertaken measures due to the wise policy of Mr. Heydar Aliyev and will help the peaceful solution of the Armenian - Azerbaijan conflict which Azerbaijan is facing now and do its best to assist the repeal of Section 907 adopted by the USA Congress in 1992”. President Heydar Aliyev thanked him for all this and said that Azerbaijan has chosen the road of market relations and is

113 с* building a legal, democratic state, paying a special attention to strengthening of relations with the businessmen of foreign countries and also displaying a great interest in cooperation with “Arco” company. There was held an exchange of views on a number of issues connected with the establishment of cooperation, other con crete proposals were also discussed during the meeting.

MEETING OF PRESIDENT HEYDAR ALIYEV WITH THE EXECUTIVE DIRECTOR OF “SHELL” COMPANY

On August 3, President of the Republic of Azerbaijan Heydar Aliyev met Mr. Philip Bats, executive director of “Shell” company, in his residence in Houston. Mr. Philip Bats greeted President Heydar Aliyev warmly and said that he was greatly honoured by the meeting. He noted that President Heydar Aliyev’s official visit to the USA is met by the public with great sympathy and appreciated it very highly. Then he said: “Mr. President, your meetings with the pres ident of the USA, your negotiations and the signed documents have created a great interest among the USA public. Everybody is amazed at the closeness of your work schedule here, at the fact how you represent Azerbaijan, how high you

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■яяиишииС* IMMBMHi ence in off-shore oil deposits and that they want to build long term relations with Azerbaijan and invest a big ammount of capital to our economy. He said: “Mr. President, we have achievements in the formation of infrastructures, construction of oil and gas pipelines. Construction of pipelines is very expensive and requires special efforts. “Shell” is a company always ready to carry out such projects”. He gave a comprehensive information on the proposals of “Shell” to President Heydar Aliyev. Then he said that they will do their best to defend the just cause of Azerbaijan, to assist the solution of problems facing our country. President Heydar Aliyev listened to the proposals attentive ly and reminded that “Shell” had sponsored the arrangement of a conference of UNICEF held in Baku not long ago and said that the establishment of close relations between this com pany and Azerbaijan will be mutually beneficial for both of parties. President Aliyev appreciated particularly the proposals of “Shell” to create new jobs in Azerbaijan, to help the devel opment of culture, education. During the talks there was held an exchange of views and a broad discussion on the further strengthening of cooperation between Azerbaijan and “Shell” company, as well as on other issues.

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MEETING OF PRESIDENT HEYDAR ALIYEV WITH THE PRESIDENT OF “MOBIL” COMPANY

Mr. Heydar Aliyev, President of the Republic of Azerbaijan, met Mr. Bill Scoggins, president of “Mobil” com pany of the USA, on August 3, in his residence in Houston. Mr. Bill Scoggins said that he was pleased with the meet ing and congratulated warmly Mr. Heydar Aliyev on his suc cessful official visit to the USA. He conveyed the greetings and best regards of Mr. Noton, chairman of the Broad of Directors of “Mobil”, adding that Mr. Noton was absent for being abroad at the time. President Heydar Aliyev reminded his meetings with Mr. Noton with great satisfaction and spoke with pleasure of the present development of relations between Azerbaijan and “Mobil” and highly appreciated the significance of the contract signed in the White House. He said: “You know, in the past we organized consortiums and signed contracts with several companies. But now the State Oil Company of Azerbaijan and “Mobil” has signed a bilateral contract on joint oil develop ments in one of the deposits. Its great significance lies also in the fact that the contract has been signed in the White House, in Washington. I know that “Mobil” is a big company, it does 117 ■нммммС* вмиияиви work in many countries of the world. But I suppose that you have never signed such a contract in the White House”. Mr. Scoggins confirmed that really “Mobil” has never had a contract signed in the White House in its 150 year history, he also informed that the geophysical works in “Oguz” deposit has already been completed. President Heydar Aliyev stressed the importance of imple mentation of the signed contract into life in the nearest future and reminded that its results will be very useful for both con tracting parties. Mr. Scoggins assured President Heydar Aliyev that they will soon begin drilling works in the deposit “Oguz”. Speaking of the great opportunities of “Mobil” President Heydar Aliyev said: “We have passed the first stage, the con tract was signed, the White House gave its blessings to it. Vice-president of the USA Mr. Albert Gore and I made speeches at the signature ceremony. We have paved the road for you, now it is your turn to begin the work. If your works go on well with the contract, the scope of your activities may expand”. A number of concrete proposals were considered at the meeting in order to strengthen the cooperation further, there was also held an exchange of views on the intensification of relations of “Mobil” with our country. They also noted the efforts of the most influential oil com panies of the world in the solution of problems facing our republic, especially the peaceful solution of the Armenian - Azerbaijan conflict, repeal of unjust Section 907 adopted be the USA Congress.

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Mr. Robert Black greeted President Heydar Aliyev warmly and said that they had been waiting for his arrival in the USA impatiently and was very pleased that the first official visit of the Azerbaijani President to the USA was a great success. Mr. Robert Black introduced to President Heydar Aliyev representatives of his company who were present at the meet ing and speaking about himself he said that he was the head of international operations carried out by the company. He said that “Texaco” is displaying a great interest in Azerbaijan, in the basin of the Caspian Sea. President Heydar Aliyev thanked Mr. Robert Black for his kind words and said that he was pleased with the meeting par ticipated by him and other officials of the company. Mr. Robert Black said that he was greatly honoured to be present at the dinner party of President Heydar Aliyev and added that perhaps President Heydar Aliyev had already got acquainted with the hospitality of Texas. President Heydar Aliyev confirmed his words and said that really it was amazing. Then the president of “Texaco” said his company was founded 195 years ago and it has been implementing into life various projects in different countries of the world for about 80 years and added: “But we are late in coming to Azerbaijan. Several years ago the Board of Directors of our company adopted a decision not to come to the Caspian Sea basin and now I feel very sorry for that decision. As many world com panies we have also made mistakes”. In reply to him President Heydar Aliyev said that if any one says that he never makes mistakes, he lies. The most impor tant is to understand one’s mistakes, to confess them and to agree that you have committed them. 120

HEYDAR ALIYEV Azerbaijan oil in the world policy deposits in the Azerbaijani sector of the Caspian Sea with the USA companies, including with “Amoco”, were signed in the White House with the participation of President Heydar Aliyev and high officials of the USA administration. Mr. Fuller said the USA met with sympathy the achieve ments of the recent years of Azerbaijan in the sphere of con struction of a legal democratic state and in the field of reali sation of political and economic reforms under the wise lead ership of President Heydar Aliyev and “Amoco” corporation felt very proud of them. He expressed such a confidence that the young independent country, which “Amoco” is close ly cooperating with, will soon become one of the most devel oped countries of the world. Mr. Fuller said that Azerbaijan has gained a good reputa tion in the world community due to the great sympathy towards the personality of Heydar Aliyev, and that the inde pendent Republic of Azerbaijan has numerous friends in the USA. He said that “Amoco” is undertaking special efforts to remove the problems facing Azerbaijan and will increase these efforts further. Mr. Fuller expressed his confidence that due to the fore sighted policy of Mr. Heydar Aliyev the Armenian - Azerbaijan conflict will soon be settled. He also spoke with great satisfaction of the determination of the USA President Bill Clinton to solve the conflict in 1997. He also expressed his confidence that Section 907 to “the Freedom Support Act “ adopted in 1992 also will be repealed. Mr. Fuller reminded that “Amoco” corporation is a close friend of Azerbaijan and said that they will pay attention to the development of cooperation with our republic not only in the sphere of economy, but also in the field of science, culture and education. He informed President Heydar Aliyev on the works carried out by “Amoco” in this sphere. 123 с*

President Heydar Aliyev said that he was pleased to meet Mr. Fuller and other Board members of “Amoco” and said that he was satisfied with the fact that “Amoco” paid a constant attention to the intensification of relations and cooperation with Azerbaijan. The Azerbaijani President highly appreciated the merits of Mr. Don Stasey, former president of “Amoco”, and expressed his confidence that the newly appointed president of “Amoco” Mr. Chuck Pitman will do his best for the further development of our relations which have been built on a firm foundation. President Heydar Aliyev spoke with great satisfaction of the work done in the republic by “Amoco” for which it has won a good reputation, and of close assistance rendered by “Amoco” to Azerbaijan in many spheres. He also spoke of the importance of efforts of “Amoco” for the propagation of the just cause of Azerbaijan in the interna tional arena and for the solution of problems facing our repub lic, he particularly stressed the importance of removal of Section 907 to the “Freedom Support Act” adopted by the USA Congress in 1992. He reminded that his meetings with the USA President Bill Clinton during his official visit in Washington, the talks he car ried out, the signed interstate documents have played an impor tant role in raising the USA - Azerbaijan cooperation to the level of partnership. He characterized the signature of contracts on joint oil developments in the Azerbaijani sector of the Caspian Sea by the USA companies “Chevron”, “Exxon”, “Mobil” and “Amoco” with the State Oil Company of Azerbaijan as a historical event. President Heydar Aliyev noted that there are all conditions for “Amoco” to expand the coop eration further in all spheres in Azerbaijan and that we display

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с* had unparalleled merits in the history of the USA, as a gift and said: "Mr. President, I think you know that had it not been for President Lincoln the USA would have consisted of two parts now. Mr President, I feel greatly honoured by presenting the statue of President Lincoln to your, and I know that your ser vices for the Azerbaijan people are also matchless. The Azerbaijani President Heydar Aliyev highly appreciat ed the merits of President Lincoln in the history of the USA and said that because of his merits the American people never forget him. The head of our state accepted the statue as a pre cious gift with great satisfaction.

MEETING OF PRESIDENT HEYDAR ALIYEV WITH THE VICE-PRESIDENT OF "FMC" OF THE USA

The President of the Republic of Azerbaijan Heydar Aliyev met. Mr. Mcklung, vice-president of "FMC" of the USA, in the huge office building of "Amoco" corporation in Chicago on August 4. Mr. Mclung greeted the head of our state warmly and sin cerely and expressed his regret that the president of their Company Mr.Robert Byrd could not take part in the meeting for being in Washington. Mr. McKlung congratulated the leader of our republic on the occasion of his successful official visit and stressed that the public of the USA and the official circles met with great inter-

126 HEYDAR ALIYEV Azerbaijan oil in the world policy c* est the first official visit of President Heydar Aliyev to the USA, his meetings with the USA President Bill Clinton in the White House and with other top officials of the USA govern ment. He spoke with great satisfaction of articles published in the USA newspapers devoted to the visit. He said that "FMC" attaches a particular attention to its relations with Azerbaijan and informed President Heydar Aliyev in detail on the company which he presented. He stressed that "FMC" mostly supplied with technological equipment the companies engaged in oil developments in the deepest parts of the sea. He added that his company also pro duced machinery, chemical products for agriculture and avion ics. Mr McKlung made several new proposals for the intensifi cation of relations of "FMC" with our republic and said that his company would do its best for the solution of problems facing Azerbaijan, especially for the solution of the Armenian - Azerbaijan conflict peacefully and repeal of Section 907 to the "Freedom Support Act" adopted by the USA Congress in 1992 as soon as possible. Then President Heydar Aliyev thanked Mr. McKlung for his kind words and said Azerbaijan attaches great importance to the intensification of relations with the world community and wishes to strengthen cooperation in many spheres with all businessmen of foreign countries, including with “FMC” com pany. The Azerbaijani President stressed that there are great opportunities and legal bases for broad activities of foreign investors and met the proposals of the vice-president of “FMC” company with satisfaction. President Heydar Aliyev said that in 1970-1980 our repub lic had great achievements in the field of engineering and other

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MEETING OF PRESIDENT HEYDAR ALIYEV WITH THE HIGH OFFICIALS OF “CATERPILLAR” AND “MOTOROLA” COMPANIES

On August 4 President Heydar Aliyev met in Chicago Mr. Donald Fites, chairman of the Board of Directors of “Caterpillar” and Mr. Robert Gelvin, former chairman of the Board of Directors of “Motorola” of the USA. Mr. Gelvin is one of big investors in Motorola”. Mr. Fites said that he felt honoured to meet the outstanding statesman Heydar Aliyev and congratulated him with his suc cessful official visit to the USA. Mr. Gelvin said that the USA public displays great interest in the achievements of Azerbaijan in the sphere of construc tion of a democratic, legal state, in the successful implemen tation of reforms into life under the leadership of President Heydar Aliyev and supports all his initiatives. Mr. Gelvin said: “Mr. President, we are sure that only due to your wise policy Azerbaijan will soon become one the most developed countries of the world”. Mr. Gelvin highly appreciated the undertaken steps of Azerbaijan in the sphere of intensification of relations with the world community and said that he was aware that Azerbaijan has chosen the road of market relations and is successfully cooperating with the financial institutions of the world. Mr. Fites and Mr. Gelvin said that “Caterpillar” and “Motorola” companies will do their best to help the solution of problems facing Azerbaijan, particularly in the peaceful

130 the USA companies “Amoco”, “Motorola”, “Caterpillar”, “FMC”, scientists, men of culture and representatives of mass media of the USA. The reception ceremony was opened by Mr. McKlung, vice - president of “FMC” company.

SPEECH OF Mr. McKLUNG, VICE-PRESIDENT OF “FMS” COMPANY

Highly esteemed President Heydar Aliyev ! Ladies and gentlemen ! Our honoured guest Mr. Heydar Aliyev is very popular with his wisdom and foresightedness. He has done lots of things for his country. He has led the Republic of Azerbaijan to eco nomic and political independence. Ladies and gentlemen ! I ask you to stand and raise toasts in honour of President Heydar Aliyev on behalf of the government of the state of Illinois, the city of Chicago, citizens and business circles. Mr. President, you are welcome to Chicago !

SPEECH OF THOMAS MINER, CHAIRMAN OF THE MID-AMERICAN COMMITEE

Highly esteemed President Heydar Aliyev ! Dear members of the Azerbaijan delegation ! I thank the sponsors of this official reception arranged on behalf of the Mid - American Committee on International

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Business Cooperation and the Chamber of Commerce of America - Europe - Asia. “Amoco” is the first sponsor. The companies “Caterpillar”, “Motorola” and “FMC” have also taken part in the sponsor ship. I thank them for their participation in this historical event once more.

SPEECH OF Mr. DONALD FITES, CHAIRMAN OF THE BOARD OF DIRECTORS OF “CATERPILLAR” COMPANY

Mr. President ! I welcome you on behalf of “Caterpillar”, “Amoco”, “Motorola” and the American - European - Asian Chamber of Commerce and Mid - American Committee ! I want to introduce to you the members of the delegation of Mr. President. Mr. Hasan Hasanov, Minister of Foreign Affairs of the Republic of Azerbaijan, Fikret Yusifov, Minister of Finance, Hafiz Pashayev, Ambassador of the Republic of Azerbaijan to the USA, Eldar Guliyev, representative of Azerbaijan in the Organization of United Nations. Mr. President, you are one of the rare statesmen of the world. You headed the Republic of Azerbaijan in the years of the Soviet power and you were also one of the leaders of the USSR. Mr. President, you have transformed your republic from the old system to a democratic state with free market relations. Your leadership qualities, natural resources of your republic and qualified manpower have played an important role in the transformation of Azerbaijan to a democratic country. Everybody is well aware of the present day achievements of

135 Azerbaijan which find their expression in the great interest dis played by the world public in your country. This year 872 million USA dollars have been invested into the economy of Azerbaijan. In 1993 it was only 15 million. 70 per cent of investors are the USA company. One of them is “Caterpillar”. We are greatly pleased to help the development of the economy of your country. We supply your economy with machinery and installations. They are widely used in the oil industry, in agriculture, in the construction of pipelines. We are taking a close participation in the establishment of infra structure of your country. In the present peculiar history of Azerbaijan your republic is making important steps on the road of economic indepen dence. “Caterpillar” will be with you in future, too, and help you. Mr. President, we feel greatly honoured for being here today with you.

SPEECH OF Mr. LAWRENCE FULLER, CHAIRMAN OF THE BOARD OF DIRECTORS OF “AMOCO” CORPORATION

Dear President Heydar Aliyev ! I feel a great honour to welcome you. It is a very important event that you have become a grand father again after your arrival in the USA. I congratulate you on this occasion of all my heart. Mr. President, I know that the spheres in which you are interested are politics and architecture. Both of them you may encounter in Chicago.

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Mr. President, you know that Baku and Chicago are popu lar as cities of winds. Both of them are located on the sea shore. Chicago is the first city in the USA famous with its sky scrapers, it is one of economic and technological centres of the USA. As one of writers once has said, Chicago houses the might and authority of the USA. They are evident in the sky scrapers of Chicago. As you know, there was a big fire in Chicago in 1871. Later Chicago was completely reconstructed. Therefore the historians call Chicago the city of the XX cen tury. Now Chicago is again reviving, it is like the revival process of your Baku. At the beginning of this century Baku was the centre of the oil industry and commerce. Baku left behind many events, sur vived, beame strong and healthy. Azerbaijan has experienced a great revival process since. At present your country is in the stage of economic prosperity. Mr. President, all this is due to your leadership. Mr. President, you are having in Chicago the last days of your official visit to the USA. We are very pleased that your best and most sincere feelings are emerging in the last days of your visit. We are very glad that you signed contracts with several USA companies in the White House. These documents will play an important role in the development of oil and gas indus try of our countries. I congratulate you heartily. You know that most of the investors in Azerbaijan are the USA companies. We have done lots of things to achieve this result. We are very pleased of our present cooperation with Azerbaijan. Mr. President, perhaps you will speak about what has been done in Azerbaijan. I want to say only one thing that when the historians write about the new fame of Baku they believe that

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Baku will be one of the biggest cities of the XXI century. All this has become possible owing to the leadership of President Heydar Aliyev. Allow me now to give the floor to Mr. Heydar Aliyev, President of the Republic of Azerbaijan.

SPEECH OF HEYDAR ALIYEV, PRESIDENT OF THE REPUBLIC OF AZERBAIJAN

Mr. Lawrence Fuller, chairman of the Board of Directors of “Amoco” corporation ! Mr. Donald Fites, chairman of the Board of Directors of “Caterpillar” company ! Mr. McKlung, vice - president of “FMC” company ! Mr. President of “Motorola” company ! I am very pleased to meet all of you here. Chicago is one of the biggest cities of the world, one of the biggest industri al, financial and cultural centres of the USA. When we make an excursion to the grand and huge history of the USA we see that Chicago and the state of Illinois acquire a special place in it. The whole world displays great interest in your city. Chicago exerts interest in the world. Lots of people from all corners of the world want to come to your city and they come, they visit Chicago as guests. Everyone, who visits Chicago and gets acquainted with the nature, architecture, climate, especially with the business atmosphere of your city, finds something precious, something

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* first democratic republic was established. But unfortunately it lived only 23 months. Then the Soviet power was established in Azerbaijan. This power lived for 70 years. By the end of 1991 the Union of Soviets collapsed and as a result of it Azerbaijan gained its independence. The USA was one of the first states which recognized the independence of Azerbaijan. We are always thankful for it. In the recent years Azerbaijan has established relations, as well as diplomatic relations with many countries of the world, cooperates with them on mutually beneficial bases. Azerbaijan is the member of all international organizations. And finally, Azerbaijan occupies a worthy place in the world community. After gaining independence Azerbaijan has adopted a deci sion to build a legal, democratic and secular state. We imple ment into life this decision consistently. This is our strategic goal. It is true that to safeguard the independence of Azerbaijan has not been very easy. We came face to face with many dif ficulties. Foreign interferences, various pressures, ongoing socio - political processes in the country, struggles of various armed groups for the state power created great strains in the republic. But the most difficult, the hardest of all this is the armed aggression of Armenia against Azerbaijan. Nine years ago, when Azerbaijan and Armenia were still in the composition of the USSR Armenia committed an armed aggression against Azerbaijan. Armenia is aiming at tearing away the Upper Garabag province from Azerbaijan and join it to Armenia. It resulted in this big conflict. A war has been waged and people have been killed. Azerbaijan has given mar tyrs, tens of thousands people have been murdered. Being sup ported by some countries, some states because of various rea sons the armed forces of Armenia have occupied 20 per cent

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Armenian state. Therefore Armenia must accept the compro mise. We have accepted many compromises. Acception of the principles of the Lisbon summit by us is one of our compro mises. Now one thing that gives us much hope is that after the Lisbon summit the new co-chairpersons for the Minsk group of the OSCE, in the person of the USA, the Russian Federation and France, have been appointed for the solution of the Armenian - Azerbaijan conflict. The USA’s being a co-chair person in the Minsk group is gladdening us and we cherish great hopes to that. The presidents of the United States, Russian Federation and France Mr. Bill Clinton, Boris Yeltsin and Jacques Chirac made a statement on June 20, in the city of Denver, on the peaceful solution of the Armenian - Azerbaijan conflict. It gives grounds to hope for better. The Minsk group of the OSCE has recently introduced constructive proposals to us for the solution of the conflict. We have accepted them as a basis for the intensification of nego tiations. They all give us great hopes. These hopes have grown even stronger during my visit to the USA. You know that it is my first official visit to the USA as the president of the Republic of Azerbaijan. I want you to know everywhere here in the USA, everyday, every hour we have been surrounded with great care, attention and hospitality. I thank everybody for them. On August 1 1 met the USA President Mr. Bill Clinton in the White House. It was a very contentful, important meeting of great historical significance. We discussed with Mr. Bill Clinton all the interesting us issues, we had a very open, frank and independent talk. Our meeting, our negotiations were held in the atmosphere of sincerity, kindness and friendship. It

145 gladdens me very much, gladdens all of us very greatly. We expressed unanimity of opinions in many issues during the talks. I repeat it once more, we particularly discussed the prob lem of the peaceful solution of the Armenian - Azerbaijan con flict comprehensively, in detail. The talks give hope for better. Mr. Bill Clinton is personally dealing with this problem and he promised and declared that he will continue his efforts in future as well. As a result of these talks, negotiations we signed in the White House a number of significant documents of historical importance which will contribute to the development of rela tions between the USA and Azerbaijan. The most striking fea ture of these documents is that our cooperation bears a friend ly nature, it is the relation of two partners. This idea and many other similar ideas which determine the essence of our inter state relations have found their expression in the joint state ment signed by the USA President Mr. Bill Clinton and me. I signed a very important agreement with President Bill Clinton on the protection of investments. We also signed a contract in the White House on cooperation in the sphere of energy resources. I had meetings at the Defence Department. We also signed an agreement on cooperation between the USA Defence Department and Azerbaijan. A number of other documents have been signed during my visit to the USA. Along with all this, on August 1, very important contracts were signed between Azerbaijan and the USA oil companies. These contracts were signed between the State Oil Company of Azerbaijan and the USA companies “Chevron”, “Exxon”, “Mobil”, “Amoco”. These contracts are connected with devel opments of the USA companies in new oil and gas deposits of Azerbaijan. The signature ceremony of these contracts was

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As I noted, we are building a legal, democratic and secular state in Azerbaijan. It is not an easy task to be implemented into life in our country. It is a very difficult problem for a country, which has lived under the totalitarian regime for many years, to follow the road of democracy and market econ omy, to carry out reforms, to change the economy. We have been facing great difficulties. But today I declare to you, it is our strategic road and we shall follow it. The documents signed by President Bill Clinton and me reflect the support of the USA of the state independence, sov ereignty and territorial integrity of Azerbaijan. I want to declare to you today that Azerbaijan regards its state indepen dence a historical event. It is our historical achievement. We are defending this independence and will continue defending it further. We shall never give up our state independence. The state independence of Azerbaijan is for ever, eternal and invin cible. You know that there are various forces exerting pressure on us from various directions and do not want us to be inde pendent. They are great forces. But everybody must know we shall defend and protect our state independence at any cost. We shall never allow anybody to own our country any more, or deprive us from our national freedom. We shall never allow it. We are building a democratic republic, a democratic state, we are establishing market relations in the country, imple menting into life economic reforms. I want to say that we have achievements in all this spheres. The rate of inflation in Azerbaijan in 1994 was 1600 per cent, it was 84 per cent in 1995, but in 1996 it fall to 6 per cent. In the first half of this year its rate is nil.

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* invests capital in Azerbaijan may work on conditions when capital was invested for ten years irrespective of changes in laws which follow. We have also adopted a law on repatriation of incomes of foreign investors. We have adopted a number of other laws as well. All this has created great opportunities for initiatives, free entrepreneurship, liberalized the economy in Azerbaijan, on one hand, created favourable conditions for the attraction of foreign investments, on the other. We have implemented into life great economic reforms in the agrarian sector. The livestock in the agrarian sector has completely been privatised. We are privatising the land now. Last year we adopted a very radical law on the transfer of lands to the private ownership. I want to say that it is the most radical law on land among those adopted by the Commonwealth of Independent States (CIS). Some CIS mem bers - states even do not dare to adopt a law on the transfer of land to the private ownership. But we have done it, land is given to the private ownership in our republic. Each land owner has the right to sell his portion of land, or give it to somebody. Privatization is carried out in full scope. Foreign companies, citizens of foreign states have equal rights with local citizens and companies for taking part in privatization. A good number of joint ventures have been created in the republic with the par ticipation of foreign businessmen. The number of these joint - ventures is really great. Among these joint - ventures and eco nomic relations the USA occupies a special place. In 1994 we signed the biggest oil contract for the first time. It got the name of “the Contract of the Century”. It was signed for 30 years, but it seems that its term will be prolonged not once.

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This contract is participated by 5 oil companies of the USA. One of the founders and initiator of this contract is “Amoco” of the USA. Our cooperation with “Amoco” is of great his torical importance. 1 am very glad to be in the office of “Amoco”, to meet its high officials. I must note that it was the first contract. It was followed by the signature of several other contracts, in all of them the USA companies possess big shares. On August 1 we signed four big contracts, all within one day. They were signed in the capital of the USA Washington, in the White House, which is an important place in the whole world. It is a historical event both for us and for the USA com panies. Now, when speaking to you I declare that Azerbaijan will pursue the road of market economy, market relations in future, too. No other form of economy can be restored in Azerbaijan. You know that there appear ideas in Russia and other CIS countries to restore the former USSR, to return to the social ist system. You are to know what processes are going on in the space of the former Soviet Union. But I declare to you that in Azerbaijan there is no road back for Azerbaijan. We shall never allow the restoration of the socialist political and social system. Our political road is the road of democratic state building. Political pluralism, protection of human rights and basic liberties, freedom of consciousness, freedom of word and press and many others have been established in Azerbaijan and they will be consolidated further. From the point of view of development of the economy of our republic our aim is to create a market economy and fol low it, to give freedom of action and independence to people. In general, we give freedom and independence to people and

152 HEYDAR ALIYEV Azerbaijan oil in the world policy c* we shall expand granting of them in future as well. In order to revive and develop our economy we try to apply to it the principles of the market economy, and to achieve it undoubt edly we strive to attract foreign investment to Azerbaijan. Fortunately, we are already witnessing the benefits. As it was said here today, the investment of the USA com panies in Azerbaijan soon will reach to one billion dollars. But in conformity with the signed contracts the total ammount of investments of the USA companies should be about 10 billion dollars. It is not intended for the development of oil deposits, but also covers the output of oil. You must also know that the Caspian Sea is a basin rich in oil and gas reserves, its oil and gas reserves continue to be explored day by day, year by year. The countries of the Caucasus, Central Asia and those which encircle the Caspian Sea must cooperate in all spheres. We are for cooperation. We have also opened a transport cor ridor which passes from the central Asia - the Caspian Sea - Azerbaijan - the Black Sea which then will follow to Europe. This transport corridor is already functioning. It is the restora tion of the ancient “Silk road”. Through this corridor cargo is transported from the Central Asia to the remotest countries of Europe and back from Europe to the Central Asia. We have done lots of things in this sphere. We shall develop and expand this transport corridor further. We also take steps to transport the oil produced in the basin of the Caspian Sea. Decisions have been adopted on the con struction of two oil pipelines. One of them is already func tioning, it lies from Baku through the territory of the Russian Federation to the port of Novorossiysk on the Black Sea. The second pipeline is being built from Azerbaijan through the ter ritory of Georgia to the port of Supsa. Both of these pipelines are for the transportation of the early oil. At present we are

153 с* facing the construction of the main pipeline. As a result of realization of all the contracts Azerbaijan must export 60 mil lion tons of oil in some years. Therefore construction of the route which is to lie from Azerbaijan to Turkey, then through the Mediterranean to the Turkish port of Jeyhan. There are other routes, too. But we prefer this one. We are opening a corridor in Azerbaijan for the transporta tion of oil produced in Kazakhstan by the company “Chevron - Tengiz”. 1350 tons of oil has already been transported from Kazakhstan to Baku by tankers which is delivered to the Black Sea by railway. As there is a big reserve of oil in “Tengiz” deposit Kazakhstan and Azerbaijan signed an agree ment which provides transportation of oil by a pipeline to be constructed on the bed of the Caspian Sea. The shortest and most effective pipeline in future is also the one which may lie through the Caspian Sea and Azerbaijan transporting the oil from the Central Asia to the West, to Europe. We are for the development of this transport route in future and take neces sary steps for it. Many other USA companies together with the oil compa nies of the USA are cooperating with us. “Caterpillar”s presi dent spoke of it here. They are doing a lot of work in Azerbaijan now and are determined to continue their efforts as well. Or the president of “Motorola” company is here. “Motorola” occupies a special place in Azerbaijan. The com pany will further expand the scope of its activities in Azerbaijan. Other companies have joined the realization process of all this contracts. You know that any oil company is followed by tens of other companies in order to realize the signed contracts. Many USA companies may work in Azerbaijan. It is bene ficial both for the USA and Azerbaijan. It will also expand our inter - country economic relations and develop them. 154 HEYDAR ALIYEV Azerbaijan oil in the world policy

But there are factors which bar our effective cooperation. The main one of these factors is Section 907 adopted by the USA Congress against Azerbaijan in 1992. It is already for five years that Azerbaijan has been deprived of any kind of assistance of the USA on the state level. You know that the USA renders financial and other forms of assistance to many countries, including the republics of the former Soviet Union. Our neighbours Armenia, Georgia, the republics of the Central Asia get 100 million dollars, or perhaps more than that finan cial aid from the USA. But Azerbaijan is deprived of this aid. It is a very serious paradox. We brought the USA to Azerbaijan, to the Caspian Sea. Because of this some of our neighbours have got offended and now they accuse us why we have brought the USA com panies to the Caspian Sea, Azerbaijan, the Caucasus. On the other hand, the Congress of the USA have imposed an embar go upon all kinds of assistance to Azerbaijan. In the recent years we have dealt with this problem. And I am happy that finally these days an opinion has been formed in the USA pub lic, in the government circles, in the parliament, in the Congress that Section 907 is groundless and unjust against Azerbaijan. Some congressmen say that they do not know how, in what way the Section has been adopted in the Congress, who has included it into the agenda of the Congress, and they have voted for it without understanding the essence of the matter. We have heard all this. But let bygones be bygones. We have lived under deprivations for five years, tol erated such a discrimination. But we can not endure further. During my stay in the USA I had meetings with more than 40 congressmen. I met the speaker of the House of Representatives Mr. Gringrich. I had comprehensive talks with

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Mr. Gilman, chairman of the Committee of International Relations. I had talks with several influential senators. They all told me that they will try to repeal this Section. President Bill Clinton has said it before and also declared it on August 1 that Section 907 must be repealed, and this idea has also found its expression in the document signed by us. Congressman from New - York Mr. King has submitted a good bill for the removal of the Section. I suppose that the Congress, the USA government and other forces will join their efforts and try to repeal this Section in September. This Amendment is not only a discrimination against Azerbaijan, it obstacles the development of the USA - Azerbaijan economic relations. Therefore the USA companies, businessmen and the USA investors in Azerbaijan must try to repeal this Section. And finally I want to speak of one thing else. We have gained our independence, we are a sovereign state. We need peace in order to live and develop as an independent state. Therefore the peaceful solution of the Armenian - Azerbaijan conflict is a basic problem for us. Unfortunately, there are forces who bar it. It became evident at the beginning of this year that some high officials of the Ministry of Defence of the Russian Federation have sold a great ammount of modern, dangerous arms and ammunition to Armenia illegally which are worth of US$ 2 billion. Of course, all this contradicts the peace negoti ations of the three recent years, to the peace process, in gen eral. This fact has been confessed by the Ministry of Defence of the Russian Federation and by other government circles of Russia. We declared our protest as we became aware of the fact. I have asked the Russian president to demand back the arms from Armenia. 156 HEYDAR ALIYEV Azerbaijan oil in the world policy c*

You know that there are military bases, military detach ments of Russia in Armenia. There are such military bases and detachments of Russia in the Caucasus, in Georgia as well. But in Azerbaijan there are no such bases and military units, and there shall never be. We are completely independent and shall defend our sovereignty by all means. But transfer of such an ammount of dangerous weapons to our region has caused a great anxiety. The Senate of the USA has also considered this problem and adopted a corresponding decision. I suppose that the Senate of the USA will continue its work, its initiative and make efforts for the solution of this problem. All this is nec essary and very important to establish peace in the Caucasus, to solve the Armenian - Azerbaijan conflict peacefully. We want the liberation of all the occupied territories, return of refugees and displaced persons to their native lands, restora tion of the territorial integrity of Azerbaijan and a long - term, reliable peace with Armenia, in one word, we want to live in conditions of peace. I think that if such a peace is gained it will open great opportunities both for Armenia and Azerbaijan. I am sure that such a peace can be achieved between Azerbaijan and Armenia. And it will create strong foundations for the establishment of peace in our region, in the Caucasus. I am sure that Mr. Bill Clinton, the USA president, and the USA government will do their best for the solution of this problem. I want to express my pleasure with this meeting, with you here, today once more. I express my respect and appreciation to you. I invite you and all the businessmen of the USA com panies to come to Azerbaijan, to start their business. Azerbaijan has a beautiful landscape. Chicago is also beau tiful. The same is Baku. There are many sightseeings in Azerbaijan. To see them, to enjoy them will be a pleasure for

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USA would have gone into pieces. Splitting of the country is very dangerous. In his time Lincoln saved the USA from split ting. Now we are trying to escape the danger of split. Like President Lincoln we try to save Azerbaijan from split, to maintain the territorial integrity of Azerbaijan. Therefore, this gift is very precious to me, therefore I thank for it. Now I want to make a present to “Amoco”. That is a paint ing of a famous Azerbaijani artist. It is a very contentful and interesting drawing. You know that Azerbaijan is an ancient oil country. Gas and oil were discovered in Azerbaijan hun dreds of years ago. The first oil well gushed in Azerbaijan in 1848. But it gushed in the USA, in Pensylvania, in 1852 or 1855. We are ahead of you. At that time oil was extracted with such a great difficulty. We must not forget it. If people had not produced oil in such hard conditions, with great difficulty, now Azerbaijan would have not been an oil country. Therefore, I present this picture to “Amoco” as a symbol of relations in the sphere of oil industry between Azerbaijan and the USA oil companies. I think that this picture will occupy a worthy place in your company. You see, we began to extract oil by the way described in this picture. The oilmen of Azerbaijan had the first oil gush 50 years ago in the Caspian Sea, in the Oil Rocks. They discov ered oil deposits in the Caspian Sea. We were pioneers in it, too. Now, at the end of the XX century it is Azerbaijan, the very Azerbaijan that introduces the rich oil deposits of the Caspian Sea to the world. In the past 50 years all the oil deposits of the Caspian Sea were explored and discovered by the oil workers of Azerbaijan. Now, many oil companies of the world, including those of the USA, are involved in joint oil developments. All these are factors which closely connect our countries. I wish the rela tions of our countries grew further. 159 I greet you once more and wish you happiness. I toast to the USA, to the American people, to the big oil companies of the USA, to the USA government, to President of the USA Mr. Bill Clinton, my friend, to all of you. Thank you. Lawrence Fuller: Mr. President, I have been sent many questions to ask you. Many of them found their answers in your speech. I ask you, if possible answer the followings. Question: Mr. President, can you share with us your impressions connected with your visit to the USA, to Washington, New York, Houston, Chicago. What do you think, was this visit a success ? What novelties would you like to see during your next visit to the USA ? Answer: I want to say that it is my first official visit to the USA. The members of my delegation and I are fully satisfied with the visit. My assistants have counted that up to this day, to this minute, I had 75 meetings with different people in var ious places. My meetings will still continue today and tomor row. It is a great achievement for me, because each meeting is businesslike in character, all of them have been devoted to the development of the USA - Azerbaijan relations, each meeting follows the purpose to tell the truth about Azerbaijan in the USA. We are greatly pleased with all the days since July 27. We felt great hospitality, care and attention everywhere. All my meetings were held in the atmosphere of friendship and sincerity. I think that a friendliness, a sincerity have emerged in the Azerbaijan - USA relations. We signed a document with President Bill Clinton on the pertnership of our countries. I think that it is the best result of my official visit. I thank Mr. Bill Clinton and all persons with whom I had meetings, for the rendered to us hospitality and attention. I think that all these days, all these meetings, all the meetings

160 HEYDAR ALIYEV Azerbaijan oil in the world policy c* held by us have created new opportunities for the development of relations between our countries. Our objectives in Azerbaijan, my own goal are to make an effective use of these opportunities. We are determined to do it. I think that our relations will improve and rise to the high est level till I visit the USA next time. Then we shall be able to make bigger steps. I believe it. All relations between the USA and Azerbaijan in all spheres are based on long - term bases. We regard these relations necessary and very important. Thank you. Lawrence Fuller: Mr. President, I congratulate you on the occasion of your official visit to the USA, on the great achievement which you have gained during this visit. I thank you for your visit to the state of Illinois, to Chicago and for the meeting that you have arranged for us. Mr. President, we are grateful to you for the care and atten tion which you pay to the USA companies working in Azerbaijan. Heydar Aliyev: The most important page of my official visit to the USA is that while here a grandson was born to me on August 2. It is a great happiness for me. I thank you for your congratulations and I shall give this vase to my grand son as a present from you. After the official reception the popular politicians of the USA, the members of the administration of the state of Illinois and Chicago, high officials of the USA companies, men of sci ence and culture, newspaper and television reporters shook hands with President Heydar Aliyev sincerely once more. They expressed their assurance that due to the wise policy of President Heydar Aliyev Azerbaijan will soon become one of the developed countries of the world.

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INTERVIEW OF LAWRENCE FULLER, CHAIRMAN OF THE BOARD OF DIRECTORS OF “AMOCO” CORPORATION

After the official reception arranged by the American - European - Asian Chamber of Commerce and “Mid American Committee” in honour of the President of the Republic of Azerbaijan Heydar Aliyev Lawrence Fuller, chairman of the Board of Directors of “Amoco” corporation, gave an interview to the correspondents of mass media of Azerbaijan. He said: “President of the Republic of Azerbaijan Mr. Heydar Aliyev is a very outstanding and foresighted politician. Under his leadership a prosperous life will be established in your won derful country, Azerbaijan will turn to one of the developed countries of the world. We felt greatly honoured by the contentful speech of President Heydar Aliyev here. He paid a special attention to the issue of peace, to maintenance of stability in the region. I think that the solution of this problem will positively assist to the rapid development of Azerbaijan and of the whole region. I believe that owing to the efforts and foresightedness of President Heydar Aliyev the Azerbaijan - Armenian conflict will soon be peacefully solved. Of course, the support of the international organizations, influential world countries in the solution of this problem is necessary”. Answering to the question on the perspectives of coopera tion between “Amoco” and Azerbaijan Mr. Fuller said: “’’Amoco” is one of the pioneer foreign companies thich

162 HEYDAR ALIYEV Azerbaijan oil in the world policy c* arrived in Azerbaijan. We are pleased with the activities of “Amoco” in Azerbaijan. I beleive that our work in Azerbaijan will benefit both the Azerbaijan people and us. I am sure that the business relations of “Amoco” and Azerbaijan will last long.

MEETING OF PRESIDENT HEYDAR ALIYEV WITH THE HIGH OFFICIALS OF “CATERPILLAR” COMPANY

On August 5, President Heydar Aliyev met in his residence in Chicago the high officials of “Caterpillar” company. “Caterpillar” is considered to be one of the biggest compa nies of the USA, as well as of the world. The USA companies “Borsuan Makinan” and “Solar Turbines” work together with “Caterpillar”. The meeting was participated by El Rossi, vice - president of “Caterpillar”, Hans During, executive director of this com pany on former USSR countries, Ekrem Genj Aslan, sales dealer of this company, Warry Stabs, executive director of “Borsuan Makinan” company, John Porter, vice - president of “Solar Turbines” company, Dan Dogramachi, engineer of this company, Terry Golf, head of energy and oil department of “Caterpillar” company, Ronald Kolgan, official in charge of relations of the company with the government in Washington. The meeting was opened by El Rossi, vice - president of “Caterpillar” company: “Your Excellency President Heydar Aliyev ! I express our gratitude once more to you for sparing your time to meet us. We feel greatly honoured to welcome and greet you in Chicago, in the state of Illinois.

163 с* Mr. President, we want very much that you visit one of the enterprises of our “Caterpillar” company. We know that you have a very tense schedule. If you and members of your del egation visit one of our enterprises we shall be greatly hon oured”. Heydar Aliyev: “I would like very much to visit to one of your enterprises. But you see that I have not a single minute of free time. I suppose that our cooperation will continue, in my next visit to the USA I shall fulfil your request by all means”. El Rossi: “Thank you, Mr. President ! Mr. President, today our meeting here is participated by representatives of the subsidiary companies which cover dif ferent spheres of “Caterpillar” company. We work in various spheres of economy. We also produce building materials and use them both in the process of construction and reconstruc tion. Agricultural equipments and facilities produced by us help to increase productivity. Drilling installations manufac tured by our enterprises for extraction of natural resources are distinguished by their high quality. “Caterpillar” has won world popularity in the sphere of production of engines. These engines have great importance for the reception and distribu tion of gas and oil. Mr. President, in these days we met the signature of con tracts between the State Oil Company of Azerbaijan and the USA companies “Chevron”, “Exxon”, “Mobil” and “Amoco” in the White House with great interest. “Caterpillar” is close ly cooperating with these companies. Mr. President, we invited you to one of our factories, to “Aurora” in order to demonstrate to you that “Caterpillar” is a leading, mighty company in the world. The products manu factured by our enterprises and services rendered by us are dis-

164 HEYDAR ALIYEV Azerbaijan oil in the world policy c* tinguished by their high quality. We have done reconstruction and updating work in our plants and factories worth of US$ 1,8 billion. A week ago when your Ambassador Mr. Hafiz Pashayev was in the factory “Aurora” he saw everything him self. The reconstruction works performed by us allows to improve the quality of manufactured products and satisfy the demands of our purchasers. We pay a special attention to replace manpower by technics in our enterprises which has resulted in the reduction of addi tional costs greatly. Our enterprises have been completely computerized. All operations in them have been automatized, all processes are fulfilled with the help of robots. All this is an evidence to “Caterpillar’s being a leading company in the sphere of industry. They all have helped to increase the eco nomic capacity of our company, to satisfy the demands of our customers in time and qualitatively. The might of “Caterpillar” lies also in the fact that we have a lot of distributors and good contacts with many companies. They support the activities of “Caterpillar” and at the same time take a close participation in the sale of our products. We have distributors in 192 countries of the world. The network of this distributors is bigger than “Caterpillar” itself. This net work forms the spinal column of “Caterpillar”. We have our representation in Azerbaijan which is mainly fulfilled by “Borsuan Makinan” company. The executive direc tor of that company Mr. Warry Stabs is here. He will speak himself. The dealer of our company Ekrem Genj Aslan is our representative in Azerbaijan. Now I give the floor to Mr. Hans During, executive director of our company in the Commonwealth of Independent States. Hans During: Mr. Rossi noted quite rightly that our net work of distributors in the world is the basis of achievements

165 of “Caterpillar”. We are intending now to create such a net work in countries of the former USSR. We want this network cover a wide territory from Sakhalin, Magadan, the Ukraine up to Azerbaijan. I am from Switzerland, a small country. Therefore to control such a large territory seems very difficult to me. We already know that if we want to be successful it is necessary to use local people, to make a good use of their capacity comprehensively. We are speaking now of rich natural resources hidden under the earth. Proceeding from my own experience I can say that there are rich resources on the earth, as well, they are the peo ple. There are many well-educated and qualified specialists in the Commonwealth of Independent States. We pay a special attention to the improvement of qualifications of these spe cialists, because local people know well the local clients. We think that we shall have great successes in this region. Warry Stabs: Mr. President, I feel greatly honoured to be present here. “Caterpillar” differs from its rivals by the fact that it renders services in supporting its clients. What is to be a dealer ? Dealer takes part in the elaboration of the policy of export, taxation, customs and in the sale of products. But according to the rules established by “Caterpillar” for its distributors the dealers supply spare parts to the client after the sale of products, in cases of necessity organise services for clients by its technical personnel, render additional assistance to them. Nearly 65-70 per cent of the work of the dealers of “Caterpillar” consist of rendering of additional services to the customers. If I speak of what we have done in Baku I can say that we are at the initial stage of our work there. We have sent three of our experienced specialists to that region. One of them is Mr. Genj Aslan. Up to present we have employed eight

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Azerbaijanis. By the end of the year we shall employ another 20 persons. In 1998 we shall employ additionally 60 local Azerbaijanis. We are planning to invest US$ 4 million in Azerbaijan by the end of 1998. We don’t consider Azerbaijan to be a had market. We have organized the same services and additional assistance to our clients in Azerbaijan which we do for our customers in Turkey where we have 13 thousand equipments and facilities, 7 thousand engines working there. We supply these engines with spare parts through our ware houses located in Turkey. We shall do all this in Azerbaijan as well. We have already begun training of the Azerbaijani special ists. Several Azerbaijani specialists are being trained at present in Istanbul by our specialists. Our company does not intend to bring foreign specialists in Azerbaijan, we want to perform all work by using the local manpower. We have a 1500 square metre floor in Baku. But we lack there two things: the first is that we have few clients. Mr. President, we know that you can not help us in this matter. But in the second thing you can help us. We have not held the opening ceremony of our representa tive office yet. Therefore we ask you if you have time at the end of October, please come and take part in the opening cer emony of the representative office of “Caterpillar”. Your par ticipation in the opening ceremony will be a great honour to us. Mr. President you said in you speech yesterday that you are very happy and feel greatly proud that a grandson was born to you. When you were presented with a vase at that meeting you said that you will present it to your grandson. But we have decided to make a present to your grandson which will be use ful to him in the first years of his life. Now I want to present it to you. I ask you to accept it. This gift consists of a bull dozer and two caps.

167 с* Heydar Aliyev: Thank you very much. El Rossi: As I said, “Caterpillar” uses various distributors. Therefore I give the floor to Mr. John Porter, vice - president of “Solar Turbines” company. They are involved in the sale of engines produced by our company. John Porter: Highly esteemed Mr. President, I feel greatly honoured to be at your reception. “Solar Turbines” is proud to be a member of the family of “Caterpillar”. We deal with the sale of products produced by “Caterpillar”. Our representative here Mr. Dan Dogramachi runs our sales operations in Azerbaijan. You know that “Caterpillar” is he most leading world com pany in the sphere of production and sale of gas turbines and engines. 70 percent of demands of oil and gas producing coun tries for equipments and machinery are satisfied by our com pany. We have very close relations with such big and well- known USA companies like “Chevron”, “Mobil”, “Amoco”, “Exxon”. Our good and broad relations with these companies have been achieved due to high quality of services rendered to them by our company. We are also glad that we shall be able to offer our services to the State Oil Company of Azerbaijan. At present we are involved in oil and gas developments in the deposit “May 28”. The gas turbines and compressors used there have been sup plied by us. We have also supplied the Azerbaijan Interna tional Operating Company (AIOC) with electric generator sta tions and gas turbines. In conformity with the contract signed between the company “Itochu” of Japan and the State Oil Company of Azerbaijan we shall deliver a lot of equipments and machinery to your repub lic. We shall also send a power station to the Oil Rocks and gas turbines and a compressor station to the deposit “Bahar”.

168 HEYDAR ALIYEV Azerbaijan oil in the world policy c* We always pay a special attention to the protection of the image of our company, therefore we shall supply such machin ery and equipments to your republic that will serve as exam ples of best quality for all observers. We want the work per formed with the participation of our company assist the rapid development of the oil industry of Azerbaijan and also make the machinery supplied by us serve as models of modern and sofisticated technology. At present we are holding negotiations with the State Oil Company of Azerbaijan and the Azerbaijan International Operating Company to use new devices and methodology in the exploitation of oil and gas deposits in Azerbaijan. We are also interested in the improvement of electric system of Azerbaijan and looking for the ways to supply this sphere with necessary equipments. Mr. President, we thank you once more for receiving us. Mr. President, you say that Chicago is a beautiful city, but the city of San-Diego is more beautiful than Chicago. With a great pleasure I would like to see you there, too. We are look ing forward impatiently to see you in San-Diego. Thank you. El Rossi: I do not intend to argue with Mr. Porter. San- Diego is really a beautiful city. Mr. President, I hope that our information here enabled you to have a certain imagination on our companies and enterpris es. “Caterpillar” and “Borsuan Makinan” companies will work long in Azerbaijan. I express my gratitude to you on behalf of Mr. Fites, president of “Caterpillar”. As a token of your offi cial visit to the USA and meeting of the representatives of “Caterpillar” I want to present you with this small gift. I would like you to put this small generator on your writing - desk and always remember the importantance of the generator for the supply of electric equipments in Azerbaijan.

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HEYDAR ALIYEV Azerbaijan oil in the world policy

Now I am the President of the Republic of Azerbaijan. Now 1 am thinking about the interests of the independent Republic of Azerbaijan. I consider our cooperation with your company as having a great importance. Irrespective our desire you have already joined this cooperation. Your information here today shows that the contracts signed by us with the oil companies of the USA and other companies since 1994 have created conditions for many USA companies and companies of other countries to take a constructive part in the implementation of these contracts into life. Many people thought at that time that if we sign contracts with such com panies like “Amoco”, “Chevron”, “Pennzoil”, “Unocal”, “Mobil”, “Exxon”, “McDermott” and others we should coop erate only with these companies. But as I know and as it is evident from your information here today, each contract has attracted many various companies, mostly USA companies, and they are realizing the signed contracts collectively. It is quite natural. We think that there is no other way to carry out the contracts, because a single company is not able to do everything connected with the realization of this or that con tract. Thus, the companies of foreign countries are coming and will come to Azerbaijan. Our duty is to create all necessary conditions for their functioning. Your information today testi fies that Azerbaijan really has opened its doors widely for the world companies. There are favourable conditions in Azerbaijan for business and cooperation. An independent economy is being formed in Azerbaijan, any company comes and occupies its own place there. I knew that “Caterpillar” was doing business in Azerbaijan. But perhaps I knew only five per cent of the information which you supplied now, the other 95 per cent I learned from

171 с* you. For example, you said that you have a big office in Baku, the floor of which is 1500 square metres, and your represen tative Genj Aslan is working in our republic. But I do not know where your office is. I simply want to say that we have such a freedom, such an independence that it is easy for for eign companies to came to our country and join different com panies and organizations and do their work. We never apply any restriction to activities of any company, we never apply control on their activities as in the past times. I think that it must be as it is. Yesterday in my speech I noted that there is a freedom of activities in Azerbaijan. Your activities in Azerbaijan are visu al proofs of what I said. Your information today gladdened me very much. I met the president of your company yesterday. He also made a speech at the reception. But only today and here I understood exact ly what is the present state of “Caterpillar” in Azerbaijan and what is the future of its cooperation in Azerbaijan. You have paved your way to Azerbaijan yourself. I support it. If in future you need my assistance I am ready to render it. Construction of gas - compressor stations is very important for us. I am well aware of it. I control this process. But I did not know that “Caterpillar” was taking part in it. Of course, “Caterpillar” is a big family. The companies in its composition are involved in various spheres of work. It is very nice. I con gratulate you. I tell it once more that I fully support your com pany. I believe that you will do a lot of work in Azerbaijan in future as well. You know that we have signed 9 contracts with the oil com panies of foreign companies. We signed the first contract in 1994. Two years and a half have passed since, I say again, the number of contracts has reached to nine. Our activities are not

172 HEYDAR ALIYEV Azerbaijan oil in the world policy c* restricted only with oil developments, oil industry. We have many things to do in other spheres, too. I hope that you will and must do many things in other spheres, as well. Therefore, our partnership is a long term partnership. You are our part ner. We shall create all necessary conditions for the work of your company in our republic. I think that as a partner of Azerbaijan your duty is to prop agate Azerbaijan in the United States of America more and more. You see, you witness the scope of freedom in Azerbaijan. You must propagate this information in the USA very widely. Where ever it is possible do it. Of course, I do not urge you to go to “CNN” and speak on that channel, though it is also possible. You know that one of the problems that we are facing is the elimination of Section 907 to the “Freedom Support Act” adopted by the USA Congress. Yesterday I spoke to you about it in detail. You know our condition. You know that our great est problem is the peaceful solution of the Armenian - Azerbaijan conflict. Azerbaijan can not be blamed in anything connected with this conflict. We have not attacked Armenia. We have not territorial claims to Armenia. Armenia claims to our territory. Armenia has made an attempt to annex the Upper Garabag province which is an integral part of Azerbaijan, therefore Armenia has waged a war against Azerbaijan. The duty of each country is to defend its territory, the motherland. We do the same. That is why we can not be blamed in this conflict. I said it yesterday, because of some reasons and due to the assistance of a number of states to Armenia the armed forces of the latter have occupied 20 per cent of the Azerbaijan territory. One million population of the occupied territories have become refugees and displaced per sons, they live in tent camps in very hard conditions. Now you

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see, what kind of injustice was done to Azerbaijan in 1992: we have been subjected to armed aggression and we have been punished by the Congress of the USA. Have you ever wit nessed such an injustice ? Of course, it has reasons. We know that there is a strong, influential Armenian lobby in the USA. In 1992 when Section 907 was adopted not everybody knew Azerbaijan in the USA well. Through propagation the Armenian lobby managed to make the Congress adopt such an unjust decision. For several years we have been trying to repeal this Section. We want to prove the USA that we are its friend. The USA has great economic interests in Azerbaijan. We fully satisfy these interests. The USA has also great political interests in the Caucasus, including Azerbaijan, as well. In such a case is it just, is it fair to commit such an injustice against Azerbaijan ? I am in the USA on an official visit already for 10 days. 1 had many meetings, held many negotiations. I am very pleased that all my meetings, negotiations had a positive effect. In my meetings in the White House and in the Congress, and in other circles I became convinced once more that the people here already know the truth. The mass media also knows the truth. You know that Congressman Mr. King has submitted a bill to the Congress for the elimination of Section 907. Now it is necessary that the Congress vote for it. If a large group of Congressmen sign the bill, support it before it is discussed at the Congress this problem may be solved in the nearest fol lowing months. We have been given promises by many peo ple. And now my request of you is to join your efforts fully for the solution of this problem. “Caterpillar” has many great friends in the Congress. You have close relations with many Congressmen. You must make

174 HEYDAR ALIYEV Azerbaijan oil in the world policy c* them understand that they are to act fairly. We do not want to force anyone, we simply want everything to be just. If this problem is approached fairly, objectively, disinterestedly Section 907 may soon be repealed. I invite you to cooperate with us in this issue. It is necessary to put an end to the Armenian - Azerbaijan conflict, to solve it peacefully. I call you to cooperate with us in this issue, as well. I ask you to make use of all your oppor tunities. Because we shall make a long - term cooperation with you in the XXI century. For this it is necessary to establish peace between Armenia and Azerbaijan. There must be peace and stability in Azerbaijan, and in the region wholly. Measures must be taken to prevent the beginning of the war again. This is our aim. Thank you. Thank you ever so much.

El Rossi: Mr. President, we know that you have chosen quite a right road. We congratulate you because you have done all this things due to your leadership in Azerbaijan. In order to convince the high USA government officials to the truth fulness of your cause you create close contacts with the busi ness circles of the USA. It is the most correct and true road. All whom I know and whom I met want to settle the Armenian - Azerbaijan conflict peacefully. I assure you that we shall act in conformity with the scheme designed by you and do our best for the progress of Azerbaijan. Mr. President, I thank you once more for your kind words about “Caterpillar” and “Borsuan Makinan” companies. Mr. President, thank you for this meeting. We assure you that we shall remain devoted to our cooperation.

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MEETING OF PRESIDENT HEYDAR ALIYEV WITH THE OFFICIALS OF FINANCIAL INSTITUTIONS AND BANKS

On August 5 Heydar Aliyev, President of the Republic of Azerbaijan, met the high officials of the most influential finan cial institutions and banks of the USA in the “Chicago club” which ages 100 years. The meeting was participated by John Koi, vice - president of “Amoco” on finances, May Mallow, vice-president of the bank “Society General”, Peter Lind, exec utive director of “Chase Manhattan” bank, John Gilpertson, executive director of the bank “Goldman Sux”, John Greeney, executive director of “Citybank”, high officials of banks “Morgan Stanley”, “Lazard Frerers”, “Credit Swiss Osten” and “Bank of America”. The participants of the meeting greeted President Heydar Aliyev warmly and with great sympathy. Mr. John Koi thanked the head of our state for receiving them despite a tense schedule, adding that they were greatly honoured by the meeting. He appreciated the successful offi cial visit of President Heydar Aliyev to the USA as a histori cal event. Mr. John Koi said that the meetings which President Heydar Aliyev had with President Bill Clinton and high officials of his administration in the White House, with congressmen, sena tors, Mr. Gringrich, speaker of the House of Representatives, Mr. Gilman, chairman of the Committee of International Relations in the Congress in the Capitol, and his negotiations

176 HEYDAR ALIYEV Azerbaijan oil in the world policy c* have been met with great interest by the USA public and busi ness circles and evoked a warm and wide response. In their speeches Peter Lind, executive director of “Chase Manhattan” bank, John Gilpertson, executive director of “Goldman Sux” bank, May Mallow, vice-president of the bank “Society General”, highly appreciated the construction of a legal, democratic state and successful implementation into life of economic reforms in Azerbaijan under the leadership of President Heydar Aliyev, an outstanding statesman, reformer and well-known democrat. They expressed their satisfaction with the meeting of President Heydar Aliyev. President Heydar Aliyev thanked the participants of the meeting for their kind words and spoke with great pleasure of his successful official visit to the USA, of the USA - Azerbaijan relations which have risen to the level of partner ship. The head of the Republic of Azerbaijan Heydar Aliyev stressed that his meetings in the White House with the USA President Bill Clinton and other high officials of his adminis tration, the negotiations carried out by him and the signed doc uments acquire a historical importance. He said that Azerbaijan has chosen the road of market rela tions, is building a legal, democratic state, giving a wide space to pluralism of thought, protecting human rights. He noted that the independent Republic of Azerbaijan is facing many prob lems, one of them being the Armenian - Azerbaijan conflict which he wants to solve peacefully. He mentioned the negoti ations held for this purpose, the joint statement signed in Denver by the co-chairpersons of the Minsk group of the OSCE, presidents of three big states - the USA, France and Russia, Bill Clinton, Boris Yeltsin and Jacques Chirac. He added that we want to settle this conflict on the basis of prin ciples adopted at the Lisbon summit of the OSCE member

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HEYDAR ALIYEV Azerbaijan oil in the world policy ES^SS—SS

Khazakhstan to Baku, the legal status of the Caspian Sea and other issues. President Heydar Aliyev related about the measures imple mented into life in the sphere of development of economy of Azerbaijan, the obtained results, about the close relations of Azerbaijan with foreign investors, the wide and favourable conditions created for their functioning, the relations of Azerbaijan with the most influential banks and financial insti tutions of the world. He stressed the fact that realization of contracts signed with a number influential companies of foreign countries on joint developments in the Azerbaijani sector of the Caspian Sea and once more highly appreciated the contracts signed on August 1 in the White House between the State Oil Company of Azerbaijan and the USA companies “Chevron”, “Exxon”, “Mobil” and “Amoco”. He said that we pay a special attention to the intensification of relations of Azerbaijan with the world community. He also emphasized the fact that Azerbaijan is the first among the countries of the Commonwealth of Independent States which began to transfer the land to the private ownership, implement into life privatisation successfully, to reduce the rate of infla tion to nil, to increase the solvency of the national currency (manat). President Heydar Aliyev said that he was pleased with the meeting of the high officials of influential banks and financial institutions of the USA and invited them to visit Azerbaijan. They accepted the invitation with gratitude and thanked President Heydar Aliyev once more for the reception on August 6. Heydar Aliyev, President of the Republic of Azerbaijan, ended his official visit to the USA successfully. He was seen off by high officials of the state of Illinois and

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* partnership. In all meetings held in the USA the participants highly appreciated the wisdom and- foresightedness of President Heydar Aliyev. Such an appreciation filled the hearts of the members of the Azerbaijan delegation with a sense of joy and pride. President Heydar Aliyev’s meeting with the USA President Bill Clinon in the White House in Washington for more than four hours, the effective negotiations carried out by him, the signed documents, the official reception held in honour of the head of our state were striking examples of deep respect and confidence on the part of the USA, on the part of the admin istration of President Bill Clinton and the USA public towards the young independent Republic of Azerbaijan, towards its world - famous leader Heydar Aliyev. The meetings of President Heydar Aliyev during this offi cial visit to the USA in the White House, Capitol, State Defence Department and other high level meetings clearly proved that the USA displays a keen interest in Azerbaijan. The USA President Bill Clinton, the high officials of the USA government highly appreciated the development of democracy, protection of human rights, realization of economic reforms into life in Azerbaijan successfully and they openly declared that they supported the independence, sovereignty, territorial integrity and democratic development of Azerbaijan. President Bill Clinton noted that Section, 907 to the “Freedom Support Act” adopted by the USA Congress in 1992 obstacles the cooperation between our countries and took the obligation to help the elimination of this Section as soon as possible. Only owing to the wise and decisive position of President Heydar Aliyev, the government of the USA and the USA President Bill Clinton confirmed once more that they support

183 с* the principles of peaceful solution of the Armenian - Azerbaijan conflict adopted by the OSCE member states at the Lisbon summit in December of the last year, at the same time they noted that they will take necessary steps for the solution of this conflict in 1997. It is quite evident that the joint statement on the USA - Azerbaijan relations, the other historically important docu ments signed in the days of the official visit will play a very significant role in the consolidation of the state independence, provision of the security and social - economic development of Azerbaijan. Heydar Aliyev’s first official visit to the USA as the President of the Republic of Azerbaijan was a striking event in the history of our independent republic. It is doubtless that the present and future generations will study the speeches of Heydar Aliyev, the wise statesman of our country, which he made during his first official visit to the USA, the contents of his negotiations, the signed documents with a sense gratitude, the truthfulness of them will be confirmed and their matchless importance for our people and country will find their eternal reflection in the history.

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HEYDAR ALIYEV Azerbaijan oil in the world policy OUR RELATIONS WITH RUSSIA MUST DEVELOP AND EXPAND FURTHER

n July 3, 1997, President of the Republic of Azerbaijan Heydar Aliyev met Boris Yeltsin, President of the Russian Federation, in Moscow, in the Kremlin while paying an official visit to the Russian Federation. Mr. Boris Yeltsin said that he was pleased to welcome Mr. Heydar Aliyev, President of the Republic of Azerbaijan, in Moscow and appreciated President Heydar Aliyev’s first offi cial visit to the Russian Federation as a new stage in friendly historical relations of our countries and peoples. President Heydar Aliyev thanked Mr. Boris Yeltsin for his kind words, for his invitation for the official visit and hospi tality and expressed his assurance that his meetings, negotia tions and the documents signed in Moscow will play an impor tant role in the development and consolidation of mutually beneficial relations between Azerbaijan and Russia.

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* documents on cooperation in the sphere of currency and con trol on the export, on cooperation and mutual assistance, on avoiding double taxation, on inadmissibility of escaping of payment of income taxes, on non-visa entry for the Russian citizens to Azerbaijan and vice-versa. The two presidents expressed their satisfaction with the close participation of the Russian “Lukoil” company in the contracts signed by our republic on the oil developments in the Azerbaijani sector of the Caspian Sea together with many influential and big oil companies of the world and in the work of the created consortiums. They said that a new document which is going to be signed between the State Oil Company of Azerbaijan and “Lukoil” will be a new and important step in the sphere of cooperation in the field of oil industry. The presidents discussed the ways of solution of the Armenian - Azerbaijan conflict in detail and said that the prin ciples adopted by the Lisbon Summit of the OSCE - member states in 1996 must play an important role in the peaceful solu tion of this conflict. The presidents noted that the co-chairper sons of the Minsk conference - the USA, France and Russia must multiply their efforts to solve this conflict which has been continuing since 1988. They also spoke with satisfaction of the statement signed in Denver of the USA by the three presidents on the solution of the Armenian - Azerbaijan conflict. They also appreciated positively the intensive development of the Azerbaijan - Russian relations in the recent years and stressed the importance of strengthening and intensification of cooperation in the frames of the Commonwealth of Independent States. The parties exchanged broad opinion of views on the legal status of the Caspian Sea, securing of peace and stability in the Caucasus, restoration of railway and water transport commu-

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с* At the end of the meeting the presidents noted once more that the first official visit of the Azerbaijani President to the Russian Federation acquires a great importance in the devel opment of relations between our countries. They stressed such a confidence that the documents which are going to be signed will be a good incentive to the further intensification of coop eration between our countries. During the talks which were held in the atmosphere of sin cerity and friendship the parties exchanged opinions on a num ber of other issues in which the both sides were interested.

THE CEREMONY OF SIGNATURE OF BILATERAL RUSSIAN - AZERBAIJAN DOCUMENTS

After the termination of negotiations there was held the cer emony of signature of the bilateral Russian - Azerbaijan doc uments in the Vladimir hall of the Kremlin. The parties signed agreements on cooperation in the sphere of currency, control on export and on mutual assistance, on avoiding double taxation, on preventing the cases of non - pay ment of income taxes, on regulations of mutual financial claims, on the exploration, development and production shar ing of the perspective D - 222 block in the Azerbaijani sector of the Caspian Sea, on non-visa entry of the citizens of

192 HEYDAR ALIYEV Azerbaijan oil in the world policy ■ммммяммм c* Azerbaijan and the Russian Federation to Azerbaijan and the Russian Federation. The signature ceremony of bilateral docu ments was participated by the presidents of both countries. President of the Republic of Azerbaijan Heydar Aliyev and President of the Russian Federation Boris Yeltsin signed the treaty between the Republic of Azerbaijan and the Russian Federation on friendship, cooperation and mutual security. Besides, during the official visit the parties signed an agree ment on the regulation of the process of mobility of displaced persons and protection of their rights, a protocol on coopera tion in the military sphere between Azerbaijan and the Russian Federation, on the provisions of the agreement on main com mercial principles and on the exploration, development and production sharing of the sea block in the deposit “Kepez” in the Azerbaijani sector of the Caspian Sea.

JOINT PRESS CONFERENCE OF PRESIDENT HEYDAR ALIYEV AND PRESIDENT BORIS YELTSIN

After the signature ceremony of bilateral documents the presidents of Azerbaijan and the Russian Federation held a joint press conference. Before the beginning of the press con ference the Russian President Boris Yeltsin and the Azerbaijani President Heydar Aliyev made statements for the press.

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* to keep to these notions in the sphere of politics, economy, culture, social, humanitarian and other spheres, too. I am sure that deepening of cooperation and development of close rela tions between our countries will benefit the peoples of Russia and Azerbaijan. Today along with the treaty we signed a package of new documents concerning the most important directions of our mutual activities. Now the most significant point is to make these newly obtained agreements function. Russia and Azerbaijan are connected with each other with a long history, very rich traditions and various relations. We can not break these relations. This is the desire of the two presidents, this is the desire of the two peoples. Today we must prove it with our constructive work. Dear friends, I congratulate all of you on the occasion of the signature of the treaty. Mr. Heydar Aliyev, to tell frankly, I am very glad that the first official visit of the President of the Republic of Azerbaijan is a success.

STATEMENT OF HEYDAR ALIYEV, PRESIDENT OF THE REPUBLIC OF AZERBAIJAN

Dear Boris Nikolayevich ! Dear ladies and gentlemen ! Boris Nikolayevich, 1 congratulate you and all who are pre sent here on the occasion of this remarkable event, on the occasion of the signature of the treaty between the Russian Federation and the Republic of Azerbaijan on friendship, coop eration and mutual security.

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* future. We shall pursue this road irreversibly. I want to make you know that our joint efforts in the recent years (1996 - 1997) have led to great positive changes in the sphere of development of our economic relations, increase of the volume of turnover of commodities. This is the first official visit of the Azerbaijani President to the Russian Federation. Boris Nikolayevich, thank you for the invitation, thank you for the friendly atmosphere which you have created and which we feel since yesterday. I am very pleased with my tete-a-tete talks with Boris Yeltsin and nego tiations between our delegations, and I hope that the issues mentioned by us and in which we came to a common consent will enable to develop and deepen our relations further. Boris Nikolayevich, I thank you again for the invitation and for our joint work today, for the sincerity and for the friendly atmosphere which have been created here for the realization of my official visit. Thank you very much.

Question: It was promised at the summit of CIS that the results of investigation of the illegal delivery of arms to Armenia will be announced in the June of this year. What can you say about it and what will be the fate of this illegally delivered arms? Boris Yeltsin: We now came to an agreement to create a trilateral commission with the participation of Russia, Armenia and Azerbaijan. This commission will investigate all problems connected with arms in Azerbaijan and Armenia. Question: This meeting coincides with the anniversary of your presidential election. In what spirit, in what mood do you meet this anniversary ? Boris Yeltsin: In an ordinary spirit and ordinary mood, as

197 every day. I began working in the early morning as usual. Of course, my family members have already congratulated me. This year has been very hard and serious. Even I can say that I am changed, as if I am not the same age, or the age is not the same, but I feel that I have changed, and changed for the better. Question: Did you discuss the issue of the Caspian oil ? Heydar Aliyev: Yes, we discussed the issue of the Caspian oil, and we exchanged a broad opinion on it with Boris Nokolayevich. We have successes in oil developments in the deposits in the Azerbaijani sector of the Caspian Sea. The Russian company “Lukoil” participated in three con tracts signed by the State Oil Company of Azerbaijan with supernational companies, and today “Lukoil” and the State Oil Company of Azerbaijan signed the fourth contract with the participation of the presidents of the Russian Federation and the Republic of Azerbaijan. But what concerns the transporta tion of oil we came to such an agreement that in January of 1996 the Russian Prime Minister Victor Chernomyrdin and I signed an agreement on the transportation of oil through the Northern route. This year the Azerbaijan oil will be transport ed through the Noethern route. There was a delay in it due to some reasons. Now we have found a solution to this problem, and Boris Nikolayevich says that no later than the autumn of this year the transportation of oil via the Northern route will be provided. Question: What do think ? On what principles must the Upper Garabag conflict be removed ? What steps will Russia take for the solution of this conflict? Boris Yeltsin: I have already made up my mind and I have told Heydar Aliyevich today. We shall deal with this problem as we have done with the “Russia - NATO' problem. The

198 HEYDAR ALIYEV Azerbaijan oil in the world policy c* Minister of Foreign Affairs of the Russian Federation will begin each of his working day with this problem. I have agreed with Mr. Bill Clinton and Mr. Jacques Chirac to invite the presidents of Armenia and Azerbaijan to sit at the table of negotiations and we, the three states, will finally find a deter mination in ourselves to put an end to his grave page of the history of these two nations. It is a difficult process, but now it well be sped. We shall deal with it regularly. When appre ciating our activities as mediators we must confess that we have not worked well up to present. We must estimate our actions objectively. Heydar Aliyev: We have discussed this problem with Boris Nikolayevich. All what he says is in consistency with our desire. We want the solution of this conflict as soon as possi ble, we do not want the beginning of military operations again. It is over three years that we have been keeping the cease-fire regime. This conflict must be solved only on the basis of the principles of the Lisbon summit, that is by providing the ter ritorial integrity of the Republic of Azerbaijan, granting a high degree self - government right to the Upper Garabag in the composition of the Republic of Azerbaijan and guaranteeing the security of all population of the Upper Garabag. I think that the conflict may be settled on these principles.

199 с*

BILATERAL AZERBAIJAN - RUSSIAN NEGOTIATIONS

After the tete-a-tete meeting of the two presidents the Azerbaijan - Russian negotiations began in the Catherine Hall of the Kremlin. It was participated by a large number of gov ernment officials from both of the sides which formed the del egations of the two countries. Boris Yeltsin, President of the Russian Federation, greeted Heydar Aliyev, President of the Republic of Azerbaijan, in Moscow, in the Kremlin, on the occasion of his first official visit to the Russian Federation. President Boris Yeltsin said that during the tete-a-tete meeting with President Heydar Aliyev they had a long conversation, which covered many issues, in the spirit of mutual respect existing between our peo ples. He stressed the fact that they had considered several problems and adopted final decisions. If it is possible to say there is no problem, or unsolved issue between the Russian Federation and Azerbaijan, he said. Since 1996 our coopera tion has expanded and we must continue keeping the dynam ics of the development of our relations further. We have many problems, especially the railway communication, the Caspian oil pipeline route, which need special attention and elaboration of both parties. Today we shall consider them and sign many documents. The head of the Russian Federation spoke of the days of Moscow and Russia in Azerbaijan, which were a success, and

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с* Azerbaijan on friendship, cooperation and mutual security. He also reminded that our inter - state relations have begun to develop more intensively in the recent years. The Russian oil company “Lukoil” takes part in three of the five signed oil contracts of Azerbaijan. President Heydar Aliyev paid a special attention in his speech to the aggression of Armenia as a result of which 20 per cent of the Azerbaijani territory has been occupied and over a million Azerbaijani citizens have turned to refugees and displaced persons in their own country, all this, according to the Azerbaijani President, has created great difficulties for the republic. He stressed the fact that Russia as one of co-chairpersons of the Minsk conference of the OSCE can play an important role in the peaceful solution of the Upper Garabag conflict. He said that he was pleased with the statement of the three co-chairpersons of the Minsk conference of the OSCE - Russia, France and the USA - on the solution of the Upper Garabag conflict signed in Denver. A number of other problems were discussed during the talks.

PRESIDENT HEYDAR ALIYEV’S MEETING WITH THE REPRESENTATIVES OF THE FINANCIAL AND BUSINESS CIRCLES OF RUSSIA

On July 4 in the morning President of the Republic of Azerbaijan Heydar Aliyev met in Moscow the representatives of the financial and business circles of Russia. The first deputy Prime Minister of the Russian Federation Boris Nemtsov opened the meeting and introduced the partic-

202 HEYDAR ALIYEV Azerbaijan oil in the world policy c* ipants to President Heydar Aliyev. Among the participants were high officials of big oil companies of Russia. Boris Nemtsov appreciated the signature of the contract on the oil developments in the deposits in the Azerbaijani sector of the Caspian Sea with the participation of the Azerbaijani President Heydar Aliyev and the Russian President Boris Yeltsin on July 3 as an unparalleled event in the economic life of the two countries. According to him, the signature of this contract is an evidence that the leaders of Azerbaijan and Russia pay great attention to the development of economic relations of our countries. After the exchange of views the Azerbaijani President Heydar Aliyev made a speech.

SPEECH OF HEYDAR ALIYEV, PRESIDENT OF THE REPUBLIC OF AZERBAIJAN

Dear Boris Yefimovich ! Dear friends, I am very glad to meet you. Our meeting today is of special importance, because it touches the leading sphere of economy which is very sig nificant both for Azerbaijan and Russia. Of course, Russia is a large country, it has an enormous economy, including a big economic potential, it is well-known to everybody. But now when making a transition to a new sys tem, when the process of economic reforms is going on, we see that the fuel - energy complex and in the first place the oil industry occupy an important place in the economy of Russia. Oil industry in Azerbaijan has been a leading sphere of econ omy from the ancient times. Azerbajan was known in the world in the past as an oil country, as the land of fires. If for

203 с* such a big country as Russia with its multi - branch industry the oil industry has become a leading sphere, then the impor tance of oil industry for Azerbaijan is exclusively significant. Therefore holding of such a meeting with such a large num ber of representatives of the oil companies, financial institu tions and structures of Russia acquires a special importance. I want to say that since Azerbaijan has chosen the road of mar ket economy, the road of mutually beneficial cooperation, the road of being open to foreign investment we have never cre ated obstacles for anyone to invest in Azerbaijan and never invited anyone especially. But if we take into account the long coexistence of Russia and Azerbaijan, development of our economy in unision, especially the development of the oil industry in close cooperation, undoubtedly the Russian com panies and the fuel-energy complex of Russia must occupy a special place in them. I must say that from this point of view “Lukoil” company has been the first initiator. As Vahid Alekperov said here we had very active negotiations and meetings since 1993, and therefore it was not accidental that in the first signed contract in 1994, which was not met in Russia friendly, the share of “Lukoil” was great. When we signed that contract there was only Vahid Alekperov and a high official from the Ministry of Fuel and Energetics of the Russian Federation. I said it to Boris Nokolayevich yesterday, we signed the second contract only with “Lukoil”. “Lukoil” functions as an operator, and it drew the Italian “Agip” to this contract. Yesterday Vahid Alekperov said to Boris Nokolayevich that he possesses 50 per cent of the shares in the contract, he is the owner of that deposit. I must say that he is a brave man, he knows what to do and what he is longing for. Thus, it has become evident that the deposit on which we signed the con-

204 HEYDAR ALIYEV Azerbaijan oil in the world policy tract possesses more reserves than the expected and is more promising. Therefore, “Lukoil” company has its own place in the Azerbaijan economy. It has shares also in the third contract together with “British Petroleum”, “Statoil” and an Iranian company. Finally, Boris Yefimovich, you were right yesterday when you said that we have signed a very important contract. It is your initiative, you have paved the way to these contracts. It is to the point to say that you displayed a great confidence in them. In general we elaborate such contracts within a long time, but in the preparation of these contracts I mobilized my specialists and the concerned persons, and you did the same, mobilized your men and within a very brief period of time we both managed to complete everything. We had never prepared such a contract within such a short time. Now negotiations are being carried out on that deposit and other preparatory work is being done. And when the date of my official visit was determined the problem of the contract was raised and we agreed to sign it in Moscow. Now, “Lukoil” is the sharehold er in four contracts in Azerbaijan. I tell all this, because here, in Russia, unfortunately in some state circles rumours are heard that Azerbaijan is gradually breaking links with Russia, expanding and strengthening rela tions with the Western companies. The evil - wishers of our republic want to create an unhealthy situation out of nothing, publish all kinds of slanders, various groundless views in the press. I must confess frankly that we do not like such a run of events, because we work together. I know Mr. Chernyayev well and long ago. We have worked together with him. He is a very experienced person. In general, I am very glad that there are still experienced specialists who assist the develop ment of the economy. Or just let us take Mr. Muravlenko. I

205 с* know his father very well. He has great merits in Tumen. He is a legendary man. I am glad that his son continues the work of his father. I knew Muravlenko in Azerbaijan, then I con tinued to know him in Moscow. I repeat it once more, he is a legendary man, a legendary personality. He worked together with Farman Salmanov, our countryman, who was the head geologist, Muravlenko was the chief of the whole department. They discovered the deposits in Tumen and gradually marched towards the North Sea. They did a great work. His son was in Baku lately. Unfortunately we could not meet each other. But both Ilham and Natig told me that you had a good conversa tion. Or let us take Mr. Putilov. He also used to come to me, we met and talked. I never sent them to somebody. I received them myself and instructed. Understand me correctly, I just want to say here that our conversation touches Russia, the Russian companies. We want them take part in our contracts. I got your letter on the deposit “Kepez” with great satisfaction and I am glad that this project is being implemented into life. Now they will sign this project here at our presence. In one word, I want to say as a friend of Russia that I am glad that the fuel and energy complex of Russia is headed by the first deputy-Prime Minister of the Russian Federation Boris Nemtsov, a very active man, a reformer in spirit. He is popu lar not only in Nizhni-Novgorod for his good work, but also in Azerbaijan and in the whole world. When we were work ing on the land reform law and other reforms I sent to you a big parliamentary delegation. We feel that you are doing great works, therefore I sent the delegation to learn your experience. I also sent a delegation to the province of Oryol, to Yegor Semyonovich Stroyev. I tell all this because we benefit from the experience of Russia, therefore we cooperate and shall

206 HEYDAR ALIYEV Azerbaijan oil in the world policy c* cooperate with Russia. I hope that after our talk which we had yesterday, the day before yesterday and which we are having now in Moscow you will outroot all this unhealthy talks, which existed up today, or which may arise tomorrow, because the ill-wishers are not few, put an end to them and not allow them to arise, or to appear in the press in Moscow. Boris Nemtsov: It is to the point to say that our press has not published anything negative about your official visit. Heydar Aliyev: I make such a conclusion from this meet ing first of all that there are companies which work with us and which desire to work with us. For example, “Transneft” is working with us. I say that the oil produced in the Azerbaijani sector of the Caspian Sea will be transported and everything will be carried out on time determined in advance. Now “Lukoil”, “Rosneft” and the State Oil Company of Azerbaijan will sign a document on the deposit “Kepez”. Well, Muravlenko has been to Baku, we told him to continue con tacts with us. “Sidanko”, please, give your proposals. Who else remained ? Is there anybody not mentioned ? Bank “Rossiysky Credit” ? After my return to Baku come and we shall talk, we shall continue our talk by all means and we shall find a prop er form for the development and work of “Rossiysky Credit” in Azerbaijan. “Mostbank” is functioning quite normally in Azerbaijan. We wish successes to it. As I said yesterday all the channels of the Russian television are broadcasted in Azerbaijan. Mr. Yuri Mikhailovich Luzhkov asks to translate the Moscow channel, too. If it is necessary, of course we shall translate it, too. What else is there ? Well, this not just we pro duce only oil. We have a big oil machinery industry, too. You know well that 70 per cent of oil machinery was sent to Siberia, Tatarstan, Bashkordstan by us. But now our relations

207 с* have been cut, violated, our oil engineering plants experience great difficulties. But is not also the main thing. We shall somehow overcome the difficulties. The thing is that if there is an adjusted and ready plant why not to produce machinery? I was in Kazakhstan not long ago. We signed a special agree ment with Kazakhstan on oil machinery in order enable them to make use of our oil machinery plants. Therefore I say, let us cooperate in this sphere, too. You know that we have a big chemical complex in Baku and Sumgait. It had relations with chemical complexes of Russia. It is necessary to continue these relations, to establish new relations and expand them. In our meeting mainly the oil producing sphere is repre sented. But we may cooperate in other spheres as well. The foreign companies, with which we have signed oil contracts, hold tenders, attract many other world companies to work in Azerbaijan. I know that there are still no such companies in Russia. But can you imagine that the companies of such a small country like Norway have over 60 offices in Baku ? The thing is that if Norway’s “Statoil” company takes part in oil developments, it attracts many other service companies, too. The companies of the USA, Great Britain have also about the same number offices in Baku. But it is necessary that the Russian companies also should come to Azerbaijan. But they do not come. They do not display interest, activity and initia tive. You know that we have liberalized the foreign trade, we grant many privileges to foreign investors, even we have applied an immunity to their incomes. Why do the foreign companies so willingly stream to Azerbaijan ? They do it because they have the right to use their incomes as they like. We have the lowest rate of income tax for foreign investors in our republic. We have done all this, therefore the Western

208 HEYDAR ALIYEV Azerbaijan oil in the world policy ■жиммС* MMMMH companies willingly come to us, and not only come, but are very active in coming.

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The meeting passed in a businesslike atmosphere and was participated from the Azerbaijani side by Natig Aliyev, presi dent of the State Oil Company of Azerbaijan, Vahid Akhundov, state adviser, Namig Nasrullayev, Minister of Economy, Fikret Sadikhov, president of the State Company “Azerchemistry”. They spoke about the relations with the oil companies and enterprises producing oil machinery in Russia and of the achievements of Azerbaijan obtained in this sphere in the recent years. Then the representatives of the State Oil Company of the Republic of Azerbaijan and the Russsian companies “Lukoil” and “Rosneft” signed a contract on the principles and provi sions of the exploration, developments and production sharing in the Azerbaijani block which includes the oil deposit “Kepez” in the Caspian Sea. The signature ceremony of the contract was attended by the Azerbaijani President Heydar Aliyev, the first deputy-Prime Minister of the Russian Federation Boris Nemtsov. After the signature of the contract Vahid Alekperov, presi dent of “Lukoil” company, made a speech in which he stressed that he was pleased that President Heydar Aliyev, the repre sentatives of the Azerbaijan and Russian government have approved this contract which has a good perspective and according to initial estimations the deposit possesses tens of million, tons of oil reserves.

209 Then the Azerbaijani President Heydar Aliyev and the first deputy-Prime Minister of the Russian Federation Boris Nemtsov answered the questions of reporters. Question: What necessiates the signature of this contract between Russia and Azerbaijan? Boris Nemtsov: A very strange question. Oil means gold, money, the welfare of the Azerbaijan people, the development of the Russian business, entry of taxes to the budget. I would appreciate it like a rhetoric question. Oil has always brought big incomes to its investors, though it is a sphere which requires big capital investment and great efforts. But as there have been created favourable conditions in Azerbaijan for the attraction of foreign investors, I mean the tax environment and also the existing production sharing legislation. The oilmen of Baku have a good experience in oil developments in off-shore deposits of the Caspian Sea. All this creates favourable condi tions for the capital investment in that region. I think that the oil business of Russia must not stay outside in this process. It would be better that the Russian oil companies, today here are present the representatives of all the big Russian oil compa nies, must not remaind as passive observers, because there is a great competition to get the right for oil developments in the new deposits. This competition is participated by numerous USA companies. I have heard that Heydar Aliyevich is going to pay a visit to the USA, this theme will be discussed there. To my mind, with our close historical, cultural relations with Azerbaijan we have no right neither from the ethic point of view, nor from economic stand point to remain outside of such big economic projects on the assimilation of the off-shore deposits. Question: Will the main oil be transported through Russia? Has this issue been settled ?

210 HEYDAR ALIYEV Azerbaijan oil in the world policy c*

Boris Nemtsov: We have discussed this issue with Heydar Aliyevich today once more. Now we speak only of the trans portation of the early oil. I hope that when the present trans portation gets stabilized the transportation of the future oil will be settled by itself. I hope in any case the oil will be trans ported through the Russian territory. Question: Do these contracts provide that ? Boris Nemtsov: It is necessary to wait for a certain time for the extraction of oil on these contracts. But, to my mind, when the first oil wells gush the transportation issue will be settled by all means. Undoubtedly, the advantages of the Northern route are so conspicuous that the oil producing countries will have no other way to choose. Question: When and on what conditions will the tri-lateral contract with the oil companies of Azerbaijan, Chechenstan and Russia be signed ? Boris Nemtsov: The thing is like this, there is a political agreement between Russia and Azerbaijan, it is the basis for the realization of transportation of oil, but now I would say that it is necessary to sign a pure commercial, a pure techni cal contract. First of all we must restore, reconstruct, repair the pipeline which lies through the territory of Chechenstan, it is to the point to say that it will take 20 days. After the signa ture of this contract, as Heydar Aliyevich said today, the oil pipeline must function in a month. When will the tri-lateral contract be signed ? In principle, we are ready to sign it, but today the representatives of Chechenstan are not here, there fore we could not sign it. Question: Heydar Aliyevich, how do you appreciate the present Russian government which consists of young people? Heydar Aliyev: First of all, 1 want to add something to what Boris Yefimovich has already said. We have already

211 с* come to such a decision that the tri-lateral commercial contract among the oil companies of Russia, the Chechen Republic of Ichkeriya and Azerbaijan will be signed. As Boris Yefimovich said, they will assemble and today, or tomorrow, or the day after tomorrow sign this contract, it is just the problem of time. The main thing is that a decision has been adopted to sign it. But when I come to the issue of appreciation of the Russian government which consists of young people I am positive about it, and I think that Russia cherishes great hopes in them. As a friend of Russia we wish the economic and political reforms, democratisation in Russia went more successfully and we also cherish great hopes to the young members of the Russian government. Question: What can you say about the restrictions applied to Azerbaijan for making use of waterways of Russia ? Boris Nemtsov: You know that half of an hour after the landing of the plane of President Heydar Aliyev we discussed just these problems at the meeting held with Victor Stepanovich. All restrictions from the Russian side have been removed, that is to say, the ships of Azerbaijan may sail along the Volga. The chairman of the Russian government began with this problem. Question: Is it temporary, or for ever ? Boris Nemtsov: Very often what is regarded as temporary turns into something permanent. But this decision is for ever. Question: Whom do you give preference in economic rela tions? Boris Nemtsov: It is a very amazing question. I consider the policy “Separate and then rule” to be a big foolishness in general and including in the Caucasus, as well. We must have normal economic and human relations with all peoples who live in the Caucasus. If we give preference to one, or the other,

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RECEPTION OF THE DELEGATION OF THE RUSSIAN FEDERATION BY PRESIDENT HEYDAR ALIYEV

On July 11, 1997, in the Presidential Palace in Baku President of the Republic of Azerbaijan Heydar Aliyev received the delegation of the Russian Federation headed by Boris Nemtsov, first deputy-Prime Minister of the Russian Federation. The delegation of the Russian Federation included the deputies of the Security Secretary of Russia Boris Berezovsky and Boris Agapov and deputy-Prime Minister of the Ichkeriya Chechen Republic Ahmad Zakayev. President Heydar Aliyev greeted the guests warmly and said that their visit to Azerbaijan is an expression of growing and strengthening friendship and cooperation between Russia and Azerbaijan, as well as between Azerbaijan and the Ichkeriya Chechen Republic. He reminded that the head of the Ichkeriya Chechen Republic was in Baku not long ago. The head of the Azerbaijan state said that the Azerbaijani side will do its best to fulfil all the obligations provided by the treaty on friend ship, cooperation and mutual security between Azerbaijan and Russia signed in Moscow during his official visit to the Russian Federation. The Azerbaijani President thinks that it is necessary to maintain relations with the Ichkeriya Chechen Republic. Then he noted that at present they are talking about the joint agreement on the transportation of the early oil through the Northern route. And this is very important and in

214 HEYDAR ALIYEV Azerbaijan oil in the world policy the interests of Russia, Chechenstan and Azerbaijan. And sec ondly, the oil does not belong only to Azerbaijan, but also to transnational companies which compose the consortium. This consortium has been doing oil developments in the Azerbaijani sector of the Caspian Sea since 1994. According to Boris Nemtsov, the main thing is that it has become possible to move the problem of the transportation of the early Azerbaijan oil from the dead point during the meet ing of the Russian President Boris Yeltsin and Azerbaijani President Heydar Aliyev in Moscow. He said that he came to Baku himself to speed the solution of this problem. It was noted that the main principles of the project elaborated by the Russian and Chechen parties have been discussed in Moscow and this project continues the development of the previously obtained agreement. Boris Nemtsov thought that the signature of the document will speed the implementation of the project into life, enable the transportation of the early Azerbaijan oil in time and the development of the economic potential of Russia and Chechenstan. President Heydar Aliyev confirmed that the problem has been discussed in Moscow and he had also discussed it with the President of the Chechenstan Republic Aslan Mashadov who was in Azerbaijan before his visit to Moscow. Then he added that his meeting with Aslan Mashadov enabled him to know the position of Chechenstan and that position was sup ported by the Russian President Boris Yeltsin and Prime- Minister Victor Chernomyrdin, as a result there was obtained a unanimous opinion on the signature of the tri-lateral agree ment among the oil companies of Azerbaijan, Russia and Chechenstan. President Heydar Aliyev thought that it was nec essary to sign this agreement, because the Chechen President Aslan Mashadov was also urging to sign it, and the presidents

215 с* of Russia and Azerbaijan had also agreed upon it. Therefore, there was no differences in opinions among the parties. The Azerbaijani President Heydar Aliyev reminded that Azerbaijan signed an agreement with Russia on the construc tion of the oil pipeline through the Russian territory at the beginning of 1996. The Azerbaijani party has fulfilled its obligations, but the Russian company “Rosneft” has not suc ceeded in doing that. And it has led to the delay of trans portation of the Azerbaijani oil. He said that Azerbaijan is to begin the production of the early oil in August and if Russia does not provide its transportation through its territory then Azerbaijan will he obliged to transport oil through the Western route oil pipeline which is being constructed through the Georgian territory and transport it to the shore of the Mediterranean through Turkey. Therefore, according to Heydar Aliyev, it is necessary to sign the tri-lateral agreement, because it is in conformity with the interests of Russia and Chechenstan to which Azerbaijan has no any objection.

SIGNATURE OF THE TRI-LATERAL AGREEMENT

Then an agreement was signed by the State Oil Company of Azerbaijan, the Ministry of Fuel and Energy of the Russian Federation and the Southern Oil Company of the Ichkeriya Chechenstan Republic on the transportation of the Azerbaijani oil through Baku - Grozny - Tikhoretsk - Novorossiysk. The signature ceremony was attended by the Azerbaijani President Heydar Aliyev. The agreement was signed by Natig Aliyev, President of the State Oil Company of Azerbaijan, Boris

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Azerbaijan. Не added that such a position of the head of the Azerbaijan state enabled to remove in Baku all arising latest difficulties connected with the signature of this document. Boris Nemtsov thanked the representatives of the Republic of Chechenstan and the Republic of Azerbaijan, particularly to President Heydar Aliyev and said that only due to the efforts of the Azerbaijani President it became possible to solve of the existing problems. Speaking at the ceremony the representative of the Republic of Chechenstan Khojahmed Yarikhanov said that the signature of the agreement on the equal participation of Chechenstan in the transportation of the Azerbaijani oil puts an end to all kinds of talks and rumours that Chechenstan will obstacle the transportation of oil.

SPEECH OF THE AZERBAIJANI PRESIDENT HEYDAR ALIYEV

Ladies and gentlemen, I think that now we are doing a very important thing. As you know, Azerbaijan has come to an agreement with Russia to transport the oil produced by the republic and the consortium of transnational companies through the Northern route to the Black Sea port Novorossiysk. This route lies through the territory of the Ichkeriya Chechenstan Republic. In connection with it we have held negotiations recently. Mr. Aslan Mashadov, President of Ichkeriya Chechenstan Republic, was in Baku. We discussed this problem with him. On the same problem I had talks with the Russian President Boris Yeltsin and other statesmen and government officials of this country. In order to begin the real-

218 HEYDAR ALIYEV Azerbaijan oil in the world policy вмиминС* ИЕМИИИИН ization of the obtained agreement on the transportation of oil we came to such a consent that it is necessary to sign a tri-lat eral agreement with the participation of Russia, Azerbaijan and the Ichkeriya Chechenstan Republic. Today, finally, this idea turned into a reality. It is true that we came to this moment after long negotiations, you witnessed it when you were here. But 1 am very glad that everything has already been left behind, the agreement has been signed. I con gratulate everyone who is here, especially the representatives of the Ichkeriya Chechenstan Republic, the Russian Federation and of course the State Oil Company of Azerbaijan. I hope that we shall have no obstacles in the future, the Russian com pany “Rosneft” will begin the restoration, repair and recon struction of the pipeline in the territory of Chechenstan at once, and as they declared themselves, they will complete all this work within 20 days. Only then we can transport the oil. As you know, the Azerbaijani pipeline which lies up to the Russian territory is ready and it has been pumped with oil. We are ready to transport oil ’■ у this pipeline any time, just tomor row. I hope that everything will be ready and we shall be able to transport oil in a monti . I congratulate all of you.

After the signature of documents the reporters asked Boris Nemtsov to acquaint them with the provisions of the signed documents. This documents provide the security of the trans portation of the Azerbaijani oil from Baku - Grozny - Tikhoretsk - Novorossiysk through the territory of Chechenstan by the Southern Oil Company of the Republic of Chechenstan. The Oil Company of Chechenstan and its subdi visions take part in the contract rights of the present agreement

219 с* and in the contract rights of the company “Transneft” and its subdivisions. The parties confirm responsibility for the secure, stable and reliable transportation of the Azerbaijani oil as pro vided by the signed contracts. Answering the question of the reporter of the Azerbaijan Information Agency (Azertaj) the representative of Chechenstan Khojahmed Yarikhanov said that the government of Chechenstan has taken the obligation to provide the securi ty of the oil pipeline in its territory. The reception and the signature ceremony were attended by the prime Minister of Azerbaijan Artur Rasi-zade, deputy - Prime Minister Abbas Abbasov and the state advisor Vefa Gulu-zade.

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HEYDAR ALIYEV Azerbaijan oil in the world policy

z A1JAN - ITAL COOPERATIO IS STRENGTHEN!!

Jn September 25, 1997, President of the Republic of Azerbaijan Heydar Aliyev met with President of Italy Oscar Luiji Skalfaro in the palace of “Kuirinal” in Rome. Mr. Oscar Luiji Skalfaro welcomed the Azerbaijani President in the “Kuirinal” palace which ages six centuries and said that he appreciated the visit of President Heydar Aliyev as a sign of strengthening of friendship between our countries. He continued that Italy had always desired to establish direct useful relations with Azerbaijan. Appointment of the Italian ambassador to Azerbaijan is a striking expression of that desire. It means that Italy at present has direct relations with Azerbaijan. The Italian President noted that he follows with great atten tion the ongoing processes of democratization and transition to market relations in Azerbaijan. He was sure that Azerbaijan can play the role of a bridge between the West and East.

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HEYDAR ALIYEV Azerbaijan oil in the world policy being established between our countries and we want to inten sify this process further. The Italian President stressed the fact that the problem which has emerged in the basin of the Caspian region is very delicate and it exerts influence not only on the policy of that region. When we approach the problem from this point of view Italy wants take an active position in the solution of the problems of the region. In connection with it Mr. Skalfaro said that the Italian corporations, which occupy a special place in the life of the country, display great interest in cooperation with Azerbaijan. He also said that Italy pays great attention to cultural relations and though economic cooperation is of great importance, still the roots of cultural relations are much deep er. Mr. Skalfaro greeted President Heydar Aliyev and in his person the Azerbaijan people on behalf of the Italian people and wished further consolidation of relations between our countries. The Azerbaijani President Heydar Aliyev thanked the President of Italy for his invitation to pay an official visit to Italy and said that he accepted the invitation with great satis faction and has come to Italy to establish personal and inter state relations between Azerbaijan and Italy. President Heydar Aliyev expressed his gratitude to Mr. Skalfaro for his kind words about our country and for his attaching a great significance to the further development of the Italian - Azerbaijan relations and said that after the collapse of the USSR in 1991 Azerbaijan restored its independence again. Taking the chance he thanked the Italian President for Italy’s immediate recognition of the independence of Azerbaijan, for appointing an ambassador to our country. He said that open ing of the Italian embassy in Azerbaijan is an expression of the attention attached to the development of relations between

225 с* our countries. He also added that in the nearest future we also shall appoint our ambassador to Italy. The Azerbaijani President Heydar Aliyev said: “We attach great importance to our relations with Italy. We look upon Italy as a big European state, a democratic country with devel oped economy and a good partner for cooperation. I thank you for the attention which you pay to the ongoing processes in our country, for your having a good imagination about the development of the state independence and its consolidation. As you know, despite difficulties, foreign or domestic in nature, we do our best to strengthen the state independence of our country and try to do it irreversible. We are building a democratic, legal, secular state in Azerbaijan. We rebuild our economy on the principles of the market economy and inte gration to the world economy. The Azerbaijani President noted that the above-mentioned processes are going on successfully in our country. Addressing the Italian President he said: “You are right when you said that in the first years of our state independence the domestic polit ical situation in our country was unstable. We had difficulties, in 1993, even there was a civil war. We could remove all this. The domestic situation in Azerbaijan in the recent three-four years is stable, it is also irreversible in nature. We have all conditions for political pluralism and democratic commence ments. There are many functioning political parties, many newspapers are being published in the country. We have par ties in opposition with their own newspapers which are reflec tions of the reality of Azerbaijan”. President Heydar Aliyev said that at the end of 1995 the country adopted its first democratic constitution and held democratic elections to the parliament on the basis of multi party system. President Heydar Aliyev also spoke of ongoing economic reforms in the country and noted that these reforms, including

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с* solution of the Upper Garabag conflict: recognition of the ter ritorial integrity of Armenia and Azerbaijan, granting of the self-government right to the Upper Garabag in the composition of the Republic of Azerbaijan and provision of the security of the Armenian and Azerbaijani populaion of the Upper Garabag. Before the beginning of the conflict 70 per cent of the population in the Upper Garabag were Armenians, 30 per cent Azerbaijanis. All the Azerbaijani population have been forcibly driven out of the Upper Garabag. Now it is populat ed only by the Armenians, about 80-100 thousand people. In connection with the question of the Italian president the Azerbaijani President Heydar Aliyev said that before the start of the conflict there lived 300 thousand Azerbaijanis in Armenia. They were forcibly driven away from Armenia and they are all living in Azerbaijan at present. As an answer to the action of Armenia the Armenians living in the territory of Azerbaijan were driven away. The difference is that the major ity of them moved not to Armenia, but to Russia, Europe, America and other countries. Speaking of reasons why the conflict is not solved the Azerbaijani President Heydar Aliyev said that at the Lisbon summit of the OSCE member countries the three principles of peaceful solution of the conflict defined by them were voted by 53 states for with one state (Armenia) against. Armenia tries to get the status of an independent state for the Upper Garabag. Undoubtedly, Azerbaijan can not agree with it. We can not agree with the creation of a second Armenian state in the territory of Azerbaijan. In connection with it Mr. Skalfaro said that perhaps they intend to join the Upper Garabag to Armenia. In reply to it President Heydar Aliyev said that according to the provisions of the international law they can not join the Upper Garabag to Armenia, they think that the Upper Garabag

232 HEYDAR ALIYEV Azerbaijan oil in the world policy

MEETING WITH ULIELMO MOSCOTA, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE CORPORATION “ENI”

On September 26, the Azerbaijani President Heydar Aliyev met Ulielmo Moscota, chairman of the Board of Directors of the corporation “Eni” in its residence in Rome. The meeting was also participated by the leaders of other companies which form the corporation. “Eni” is one of the biggest corporations of Italy working not only in the sphere of oil, but in many other fields of industry as well. Mr. Uliemo Moscota greeted the Azerbaijani President Heydar Aliyev warmly and thanked him for sparing his time to meet them and said that the official visit of President Heydar Aliyev will be an incentive for the development and expansion of relations, especially of economic relations between our countries. He noted that due to the efforts of Heydar Aliyev, an outstanding statesman, the foreign econom ic relations of Azerbaijan have grown, contracts on joint oil developments with numerous leading world companies in the Azerbaijani sector of the Caspian Sea have been signed, it has helped the growing reputation of Azerbaijan in the interna tional arena, all this will give its fruits while the independent Republic of Azerbaijan is marching on the road of progress. He expressed such a hope that the Italian - Azerbaijan relations which have begun with the arrival of the Italian company “Agip”, a part of the corporation “Eni”, will expand further. Later Mr. Uliemo Moscota spoke of issues that they were interested in, including the transportation of oil from the

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Caspian basin, and mentioned the humanitarian assistance which they rendered to Azerbaijan. Azerbaijani President Heydar Aliyev expressed his satisfac tion with the meeting and said that the cooperation of “Eni”s “Agip” company with our country bears a permanent and long - term nature. He said: “For the first time you came to Azerbaijan in November of 1995 and entered the consortium on the oil developments in the deposit “Garabag”, but the doc uments which you signed yesterday on oil developments in the deposit “Kurdashi” expands our cooperation further. Therefore I think that we shall cooperate in future for many decades”. President Heydar Aliyev thanked for the humanitarian relief rendered by the corporation and said that the expansion and development of relations between the two countries will be accompanied by the increase of humanitarian assistance as well. The Azerbaijani President noted that he had instructed the president of the State Oil Company of Azerbaijan to determine the participants of the future consortium on oil developments in the deposit “Kurdashi” and added that many companies dis play great interest in this deposit, therefore it is necessary to speed the solution of respective problems and begin the intend ed work. Speaking on the transportation of oil from the Caspian Sea basin President Heydar Aliyev said: “Another nine contracts have been added to the first contract signed by us. Therefore we attach a serious attention to the issue of transportation of oil. For this purpose recently I have issued an instruction and formed a special group to work out proposals on the determi nation of the main route of the oil pipeline”.

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HEYDAR ALIYEV Azerbaijan oil in the world policy c*

THE SUCCESS OF THE “CONTRACT OF THE CENTURY”

historical event has taken place in the life of the independent Azerbaijan state, in the life of our people: the first oil in the deposit “Chirag” in the Azerbaijani sector of the Caspian Sea has been extracted. This deposit is located in the deep portion of the Caspian Sea and a contract on joint oil developments with the participation of the consor tium of foreign oil companies in this deposit was signed on September 20, 1994, which later became popular as the “Contract of the Century”. It is the result of the foresighted policy of Heydar Aliyev, President of the Republic of Azerbaijan, and activities of the independent Republic of Azerbaijan with oil companies of many foreign countries which joined their efforts in the first international consortium in the history of the oil industry of the Caspian Sea. On November 12, 1997, there was held a solemn ceremo ny in the Republican Palace on the occasion of extraction of the early oil in one of the deposits in the Azerbaijani sector of the Caspian sea which was developed jointly with for- 241

с* The Azerbaijan International Operating Company was cre ated to implement this contract into life. You know the com panies and countries which the contract and the consortium comprises. Here you see the banners of these countries and companies. These are “Amoco”, “Unocal”, “Pennzoil”, “Exxon” of the USA, “British Petroleum” and “Ramco” of Great Britain, “Lukoil” of the Russian Federation, “Turkish Petroleum” of Turkey, “Delta” of the Saudi Arabia, “Itochu” of Japan. They have created the Azerbaijan International Operating Company together with the State Oil Company of Azerbaijan. The Azerbaijan Interanational Operating Company has begun to carry out the project provided by the contract and within the recent three years has fulfilled all the work provid ed by the programme. All the obligatory works have been per formed and as a result the early oil was extracted in the deposit “Chirag” on the man-made huge platform. Production of the early oil on the “Contract of the Century” is a remarkable event and to celebrate the results of the real ization of this contract in the past three years we have assem bled to this solemn ceremony. I congratulate you, the Azerbaijan people, all the citizens of Azerbaijan on the occa sion of this remarkable and historical event of all my heart. I wish all of you happiness and good health for the sake of pros perity of the Independent Republic of Azerbaijan. To celebrate this remarkable event many highly esteemed guests have arrived in Baku. Our guests present both the companies of for eign countries which have signed the “Contract of the Century” and those which later have joined the new contracts and consortiums aiming at joint oil developments in the deposits in the Azerbaijani sector of the Caspian Sea. I wel come of all my heart all the guests who have paid respect and attention to Azerbaijan and come to take part in this ceremo-

244 HEYDAR ALIYEV Azerbaijan oil in the world policy c* ny. Azerbaijan is an ancient oil country, it is popular in the world as an oil country. I want to remind you some historical facts. The first oil which gushed in the world in 1847 was in Azerbaijan, in the deposit of Bibiheybat, in Baku, and the first industrial production in the world was also in Baku. At the end of the XIX century and the beginning of the XX century Azerbaijan was the biggest oil producing country of the world. At the beginning of the XX century over 50 per cent of the world oil was produced in Azerbaijan, in Baku. As an oil country Azerbaijan has developed greatly in the XX century. The oil industry of Azerbaijan has greatly assisted to the development of the oil industry of the USSR, of which Azerbaijan was a part, especially in the exploration of new oil deposits in the territory of Russia. It is not accidental that the big oil deposits in the territory of Russia later got the names of “the second Baku”, “the third Baku”, “the fourth Baku”. During the World War II 75 per cent of oil used by the USSR in the war against the fascist Germany was produced in Azerbaijan. Today we can say with a sense of pride that Azerbaijan, the Azerbaijan people, the oilworkers of Azerbaijan had noteworthy services in the victory over the fas cist Germany. Azerbaijan is not only known as the vanguard of countries producing oil by using the industrial method, but also a coun try which made the first steps in the exploration and develop ment of oil deposits in the depth of the sea. In the Caspian Sea in a legendary place called “the Oil Rocks” in 1949, 48 years ago, just in this month the first oil well gushed and since the oil industry in the Caspian Sea has emerged and developed. The scientists, oil workers and specialists of Azerbaijan have displayed great courage in the exploration of mineral

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resources of the Caspian Sea, in the discovery of its oil and gas deposits and have always been in the vanguard in both of them. I can dare say today that the complete majority of all oil and gas deposits of the Caspian Sea have been discovered by the scientists and oil workers of Azerbaijan. The oil workers of Azerbaijan have gained great achievements in the sphere of extraction of oil in the Caspian Sea. Since 1949 up to present 420 million tons of oil and 320 billion cubic metres of gas have been extracted from the depth of the Caspian Sea. In the place called “the Oil Rocks” tens of kilometres piers have been built over the sea and platforms have been constructed in var ious deposits for extracting oil. The oilworkers of Azerbaijan have displayed examples of heroism in the Caspian Sea which has a very severe and hard climate. They have done many out standing things for ceaseless production of oil in the sea. All this, i.e., the created scienific-technical, material-financial base in the sphere of the oil industry in the past years and huge technical installations have formed good foundations for the realization of great works in the new stage of the independent Azerbaijan. Only due to them, i.e., to the obtained great expe rience and material-technical base which we have at our dis posal Azerbaijan has begun to make new steps to produce oil in the deposits located in the deepest parts of the Caspian Sea. Now Azerbaijan is doing all this together with the biggest oil companies of many countries. Only owing to the works of the past it became possible to sign the first oil contract in September of 1994. Only due to them it became possible to sign new oil contracts with the biggest oil companies of the world on joint oil and gas developments in many other oil and gas deposits located in the Azerbaijani sector of the Caspian Sea in the recent three years. After the signature of the first contract in 1994 other contracts have been signed on joint oil

248 HEYDAR ALIYEV Azerbaijan oil in the world policy мвмнмС* ■имммимм a democratic, legal, secular state in Azerbaijan on the basis of the Constitution. This day, the day of Constitution, which is very dear for Azerbaijan and also as the ceremony, in which we celebrate the production of the early oil as a result of work which we have done in the Caspian Sea in the recent three years, are connected with each other organically. Because only after gaining the state independence, becoming the owner of its nat ural resources, after having an opportunity to use its natural resources at its own will the Azerbaijan people managed to sign a contract as the “Contract of the Century” with many countries of the world and their companies independently. As I mentioned before, Azerbaijan has adopted its first democra tic Constitution. Processes of democratic state construction are going on. These are events connected with each other and mutually completing each other. Today is the holiday of pro duction of the early oil in the deposit “Chirag”, for which we have assembled here. Today we flew early in the morning to the platform “Chirag” by helicopter, we got acquainted with the state of affairs there and walked on the platform. There is really a wonder in the middle of the sea. The Azerbaijanis can not be surprised with piers and plat forms in the sea. I suppose that our guests who flew with us by helicopter to “Chirag” will admit it. Because when we flew to “Chirag”, beginning from the shore to the platform “Chirag” we saw uncountable number of piers in the Caspian Sea, many kilometres - long piers in the Oil Rocks and the living build ings there. All of them have been created and constructed by the Azerbaijan people. Therefore they do not surprise us so much. Nevertheless, the platform built in “Chirag” within the past three years is really amazing, because it differs from all other existing platforms and piers in the Caspian Sea by its

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с* modern technics, technology and update opportunities. One gets really amazed when he sees it, because it is a big combi nation, a big plant, or we just can say it is a big town. People work and live there. People have begun to produce, to extract oil there. It has economic, political and moral aspects. Its economic aspect lies in the fact that the work begun by us here will bring great economic use to the companies and countries which work together with us in Azerbaijan at present and in future. But what concerns its political and moral aspect, we must say that we apply the existing updated world technics and tech nology here together with all the contracting parties

, highly qualified, top-level engineers, specialists, workers from all concerns of the world who have come and work here side by side with the oil men and specialists of Azerbaijan. All this is very gladdening. It is the beginning of our future works and also a very good beginning. The works carried out in the recent three years are noteworthy, because a great platform has emerged in the deposit “Chirag”. A 3000 metre deep well has been drilled here where the depth of the sea is 120 metres. The well has produced oil. According to the plan a second well will be drilled from the same platform, later 8 other wells, in total 20 wells will be drilled. This platform will produce about 6 million tons of oil a year. But along with this platform, in the course of these three years a material-technical base has been created for the immediate export of the produced oil. A 176 km. long subwater oil pipeline from the platform to the shore has been laid and put into function. The oil extracted in the platform “Chirag” is already flowing to the shore. There is associated gas which comes out together with oil from the wells. To make use of this associated gas a 48 km. long sub-

252 HEYDAR ALIYEV Azerbaijan oil in the world policy c* water pipeline has been laid from the platform “Chirag” to the Oil Rocks. The associated gas from the platform will come to the Oil Rocks, then it will follow to the shore. To collect and export the produced oil an oil terminal, which is a good com plex, has been built in Sangachal, near Baku, on the seashore. In one word, the transportation of the extracted oil from the platform to the shore and its collection have been provided. The oil pipeline for the export of the produced oil to the world market has already been constructed and completed. You know that in the past we had planned to lay to two oil pipelines for the transportation of oil in the Azerbaijani sector of the Caspian Sea, in Azerbaijan in general. The first one lies through the Russian territory to the Black Sea port Novorossiysk, the other through the territory of Georgia to the Black Sea port Supsa. The first oil pipeline has already begun to function after many difficulties. The length of this pipeline in the territory of Azerbaijan is 230 km, but up to Novorossiysk it is 1400 km. As a result of negotiations in Russia the obstacles existing in the Northern Caucasus have been removed. The Azerbaijani oil pumped into that pipeline has already crossed the Russian border. According to the information which we have at our disposal this morning it has already passed the city of Grozny as well. I suppose the oil will reach Novorossiysk in the near est time. I want to say that everything has been done and reg ulated on the same level. I know many things from the experience of the past times, past years. A part of work was finished, the other part was waiting for completion. As a result nothing functioned. But here everything was done in time and in close connection with each other, in unison. The second pipeline is now being laid in the territory of Georgia. The steering body of the Azerbaijan

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* International Operating Company the shareholders of the con sortium have invested one billion USA dollars to the work here within these three years. It is a very remarkable thing in itself. One billion dollar may be a small sum for some of coun tries. But for our region, for Azerbaijan one billion dollar worth of joint work is great and very gladdening. I want to say that all this work has brought many world companies to Azerbaijan, now they are working here. Over 400 companies of various countries are involved to carry out the work provided by the program of the first contracts. These companies have used this invested capital and benefited from it. Among them are many companies of the USA, Great Britain and a number of other countries of Europe. I can say it with a sense of satisfaction that 72 industrial and building enterprises of the Republic of Azerbaijan are among the companies involved in the joint activities. The cost of works performed by the Azerbaijani enterprises is 163 million US dollars. Thus, the realization of this contract into life involved many countries and companies of the world, many Azerbaijani enter prises of the oil industry, scientists, specialists, highly quali fied workers. One thing makes me happy that the number of foreign specialists invited for the performance of works is gradually reducing, the number of local specialists is increas ing. It is quite natural, because Azerbaijan possesses a great scientific - technical potential in the field of oil industry. It is necessary to make use of this potential of Azerbaijan. It is more effective from economic point of view. 1 want to note it once more that all this has demonstrated to the world the energy resources of the Caspian Sea. I told you that already nine contracts have been signed on the deposits in the Azerbaijani sector of the Caspian Sea. The cap ital investment for the first contract is about eight billion US

255 dollars, the total amount of all capital investments for the signed contracts is 30 billion US dollars. This sum is intend ed for the development of deposits in the Azerbaijani sector of the Caspian Sea. But there are also rich oil and gas deposits in the sectors of other countries of the Caspian basin. I think the accumulated experience and performed work in the Azerbaijani sector of the Caspian Sea will be of great impor tance for the beginning of works in them, too. We are ready to share the accumulated experience with the countries of the Caspian basin, to render our assistance to assimilate the ener gy resources of the Caspian Sea. I thank all the companies which have helped us in the real ization of the first contract. I want to express my gratitude to all the employees of the Azerbaijan International Operating Company, to all who have come here to work abroad and to the Azerbaijani oil workers and specialists. 1 thank the steering body of the Azerbaijan International Operating Company, especially Mr. Terry Adams, the repre sentative of “British Petroleum”. I think that the joint work done by us up to the present time in the course of the recent three years has paved a broad road into the future. We are ready to do joint work in future with all companies which have come to Azerbaijan, with all companies which have already taken part in this joint work, with the countries which these companies represent, We wish that the countries of the Caspian basin should use all their opportunities in their own sectors of the Caspian Sea. We are ready to share all good things with our neighbours, friendly countries, we are ready to work jointly with them, to share the obtained experience. As I said, the basin of the Caspian Sea has become popu lar in the world as a water basin rich in energy resources. At the same time, there are rich oil deposits in the other side of

256 HEYDAR ALIYEV Azerbaijan oil in the world policy c* the Caspian Sea, in the territories of the Central Asian coun tries. Now the main task that we are facing in future is to make these on-shore and off-shore deposits work. We want to offer our service in the fulfilment of these tasks. They are very important for the formation of the economic strategy of the XXI century. The term of all the contracts signed by us is about 30 years. But 1 suppose that it will work not 30 years, but even more. I think that the oil contracts signed by the Republic of Azerbaijan with the biggest oil companies of the world will acquire great importance both for Azerbaijan and for oil com panies and countries which will jointly work with Azerbaijan in the XXI century. We are at the threshold of a great, happy future. We have laid its foundations, corner stones. Today’s solemn ceremony has also been devoted just to it. Therefore, I wish successes to the people of Azerbaijan, to peoples of countries of the basin of the Caspian Sea, to all countries who want to make use of the natural resources of the Caspian Sea and to all companies which will be connected with oil and gas developments in this region in the XXI century. There arises an important issue now. That is the issue of transportation of the oil which will be produced in future. As I said and you know that two oil pipelines are necessary for it, one of them is already functioning for the transportation of the produced early oil. But our first contract also provides the construction of the main and the biggest pipeline. This is the provisions of one contract. But if we take into consideration that eight other contracts have been signed since and the ninth contract on joint oil developments in the deposit “Kurdashi” is in the stage of signature it means that there are nine contracts which open way for lots of work and for the production of tens of million tons of oil in future. For example, according to our

257 pleminary calculations Azerbaijan will produce about 50-60 million tons of oil in five-six years as provided by the signed contracts. To export it there is a necessity to construct a main pipeline and several alternative pipelines lying in various directions. This is now the main task facing us. I want to say one thing, and unfortunately it is one of the most debateful issues in the international arena. Now it is very often argued where, from the territory of what countries the Azerbaijan, Caspian oil will be transported. Undoubtedly the essence of this issue lies in the economic effectiveness of the route. For example, 1 have talked for several times with the investors of the first contract. They pay special attention to the commercial, that is to the economic aspect of this issue. Because the main pipeline may lie in the direction to the south, to the north and to the west from Azerbaijan. It is certain that it can not be laid towards the East. But which of these direc tions is more effective from economic point of view, which of them is more reliable and which of them is completely secure? Of course all these must be thought over not once. In the first place the oil companies, consortiums must reveal, disclose their opinions, say their own words. Undoubtedly, we must also express our opinion. Now there are two pipelines there. The interested parties argue on the route of the main pipeline. Should it lie to the South ? Should it lie to the West and reach the Black Sea ? Or should it pass through the territory of Turkey, or Russia ? I say it again, it must be thought over not once. There is one thing else. There are big oil deposits in Kazakhstan, oil is produced there, too. “Chevron” company of the USA produces oil in “Tengiz” deposit of Kazakhstan and is in search of routes to export it. “Chevron” turned to us. We agreed to the transportation of the oil produced by “Chevron”, from the Caspian port Aktau of Khazakhstan by tankers to

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■ммммммс* ■ —«ммн the main pipeline should follow the direction of Baku - Jeyhan. It is true that the investors think that this route is very expensive. They must clarify the economic aspect of this route. We think that this route, this pipeline may be one of the basic routes and pipelines for the export of the Azerbaijan oil, for the Caspian oil. Therefore, we have supported the construction of this pipeline before and we are supporting it today. But the final choice in this issue depends on the companies, on the consortium and the shareholders. Today the first deputy-Prime Minister of the Russian Federation proposed a new pipeline route in the direction to the North through the territory of Russia. We can also consider and discuss it. In any case, 1 think that much must be done, several oil pipelines must be laid for the transportation of oil from the Azerbaijani sector of the Caspian Sea, from other sectors, also from the Central Asia, especially for the export of the Kazakh oil, particularly for its export to the West. We shall take an active part in the construction of these pipelines. All what we are doing now has led to the formation of a new transport line between Europe and Asia. Restoration of the ancient “Silk road” has already become a reality. Last year we signed an agreement. In conformity with this agreement we have opened a corridor which begins in the Central Asia and lies through the Caspian Sea, Azerbaijan, Georgia, the Black Sea and ends in Europe. This transport corridor is already functioning. Cargo is transported from the Central Asia to Europe and back from Europe to the Central Asia. It is very effective from economic point of view. The cargo is trans ported from the Central Asia to Azerbaijan through the Caspian Sea by ferries belonging to Azerbaijan, then it follows to Georgia by railway. Then by tankers it is transported to

262 HEYDAR ALIYEV Azerbaijan oil in the world policy c* Europe. This transport corridor is very important and it has a great future. We have supported this transport corridor and cooperate with countries which have joined this corridor and will continue cooperating in this sphere. I think that this oil pipeline, the Asian - European and the European - Asian transport corridors will closely connect, tie the economies of the countries along the corridor and strength en their relations further. Dear ladies and gentlemen 1 The festivities of today, the obtained achievements have become possible only, I repeat it once more, only after gain ing independence by Azerbaijan. Today we are tasting and wit nessing the fruits of Azerbaijan’s independent statehood. In September of 1994 when we signed the first oil contract we demonstrated to the whole world that Azerbaijan is an independent state and as an independent state it adopts deci sions on making use of its natural resources as the rightful owner of them. After the elapse of three years we confirm it once more that Azerbaijan is an independent state, the state independence of Azerbaijan is irreversible, eternal and we are witnessing the positive fruits of this independence. The things that we are doing today are for the XXI century, for the future generations. Today we are celebrating the production of the early oil. Next year two million tons of oil will be produced in the deposit “Chirag”, but in some years it will grow to 5-6 million tons a year, in 5-6 years it will reach 40-50 million tons a year. Then it will increase more and more. Thus, in the XXI century the economy of Azerbaijan will develop and flourish due to this oil industry. We think that it is not only an opportunity to develop the oil industry, but a chance to develop all the spheres of econo my of Azerbaijan, to develop Azerbaijan as an independent

263 С*».. -НИ- I. state and the market economy in the country. We shall make use of this opportunity. The ceremony and meeting which we hold today are evi dences that Azerbaijan has opened its doors for the world economy. Azerbaijan is getting integrated with the world econ omy more and more. Azerbaijan builds its economy on the principles of the market economy. Azerbaijan will further con tinue developing its economy on the principles of the market economy. We have already witnessed its positive fruits. I want to acquaint you with something else. Only due to the realized economic reforms in the republic and democratic state building it became possible to stop the decline in the econo my which has been going on for 5-6 years. Now there is a growth in the economy of Azerbaijan. The gross domestic pro duction grew for 1,3 per cent last year, this year it has grown for 5 per cent. Lately the industrial production was falling down for 20-25 per cent each year. Now the decline has stopped. In the nine months of this year the growth has been about one per cent. Inflation in Azerbaijan was 1600 per cent in 1994. Last year it was 6 per cent. In the nine months of this year there has not been inflation at all, it has fallen to nil. Economic reforms are going on in Azerbaijan. The law on land adopted recently has provided private ownership on land. Now land is granted to private ownership. State property is being privatised and we witness the fruits of privatisation. Foreign trade has been lib eralized, the turnover of the foreign trade has grown for 30 per cent in the nine months of this year. We intend to make cap ital investment to our economy in the sum of one and a half billion US dollars this year totally. One billion of it will be foreign investment.

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с* iday of the Constitution of the Republic of Azerbaijan, too. We are following closely and willingly the achievements of Azerbaijan in the sphere of economy and political life since it gained its independence. We are proud that we have close rela tions with Azerbaijan in all the spheres and Turkey is very glad that this fraternal country of yours occupies a worthy place in the world arena as an independent, sovereign, demo cratic and modern country. It is also doubtless that the achievements of your republic within such a brief time are closely connected with the highly positive qualities of the Azerbaijan people and good management abilities of your statesmen, of both of which we are proud. The ceremony of today, which has assembled us together, clearly demonstrates the solid foundations laid for mutual international relations on the threshold of the XXI century. As in the period of the “cold war”, to day, in the period when there is an ongoing search for peace and stability, Turkey thinks that comprehension of this reality and aspirations for a reasonable cooperation in the Caucasus may be “the golden key” and function not only as a factor of peace and stability, but also that of welfare. The biggest obstacle on the road of establishment of peace, cooperation and stability in the region of the Caucasus is the occupation of the Azerbaijani territories by Armenia and the problem of the Upper Garabag. Turkey always supports Azerbaijan in the peaceful solution of this problem by providing the territorial integrity of Azerbaijan. Now the positive approach of Armenia to the solution of this conflict will play a decisive role in the future of this most important region of the world. The countries of the region must act on a common logic of peace in their relations based

266 HEYDAR ALIYEV Azerbaijan oil in the world policy c* on the future perspective of the region and mutual respect among them. The Caucasus must benefit from the thinking of partnership, from the fruits of peace, stability and many other uses which this civil notion may provide within the boundaries of the region. The Caucasus must not be a region with abun dance of problems to annoy the world community, it must be a region to aspire other regions for peace, stability and coop eration. Oil will be again one of the leading factors formulating the international policy in the XXI century. The richness of the basin of the Caspian Sea from the point of view of crude oil, which is a strategic product, has turned this region to the focus of interests of the world community. It is very important that this factor should create not clashes and rivalry, but the envi ronment of reconciliation and cooperation, and it must be appreciated with a sense of responsibility. We think that oil must be a unifying, but not dissevering factor. The oil reserves of the basin of the Caspian Sea, the third in the world accord ing to its amount, require the construction of not one, but sev eral pipelines. Thus, the issue of oil and other pipelines necessiates the broad and comprehensive cooperation among the countries of the region and other related countries. Gradually it becomes more clear that the Baku - Jeyhan route is the most effective for the pipelines to transport the oil to the world market, which are to be constructed in the near est future, both from strategic and economic point of view and from the point of view of security. I thank President Heydar Aliyev on behalf of the Turkish government for supporting the idea that the Baku - Jeyhan route is the main route for the transportation of the Caspian oil to the world market. It is of

267 с* great importance that we join our efforts and continue them consistently in order to turn the idea of this pipeline route into reality. 1 want to note it here once more that we attach a great importance to the cooperation with Azerbaijan for the imple mentation of this project into life. We believe that the works which are going on in connection with this project will be completed very soon. At the end of my speech I want to say that the safety of Azerbaijan is as dear to us as the apple of our eyes. I want to express my sense of pleasure of the historical step that Azerbaijan has made today towards the happier future, towards the establishment of peace. Turkey, as the whole world com munity, wishes sincerely that in the nearest future after the step of today, the importance of which is acknowledged by everybody, Azerbaijan, with its existing relations and interna tional support, will undertake other steps necessary for trans forming the Caucasus, the geographical significance of which is known throughout the world, to an exemplary region of peace, cooperation and prosperity, I congratulate you once more on the occasion of the Constitution day and wish great successes to Azerbaijan in its sunny, strong and happy future. Thank you !

268 even now in order to prevent any unexpected event. Such events will not happen. As we have agreed, the oil will be transported completely. We do not intend to deceive anyone and we have never deceived anybody yet. But what concerns the transportation of the big oil I think that one can not stand on one’s one foot for a long tome. One must stand on his both feet. If he has three feet then he is to stand on all the three. Therefore it is necessary to live in the circumstances of the market economy, market competition. And its sense is very simple: any one who offers the cheapest price, he will lay the pipeline much sooner, who provides bet ter service in the oil deposits, he will be victorious. Just because of this now Russia proposes its own variant. I think that the variant of Russia is able to compete-with the Turkish variant. It is my opinion that we can learn much from Azerbaijan. Really the implemented here international projects make the countries of the Caspian basin think on the utilization of the natural resources of the Caspian Sea. To my mind, finally, it is high time to put “i”’s and cross “t”’s in the issue of uti lization of the natural resources of the Caspian Sea. It was nec essary to do it long ago. It is to the point to say that this issue has been raised for several times by Heydar Aliyevich, even during his last visit to Moscow at the beginning of July. I think that we have come to such a moment that it is necessary to sign this contract. And finally, I was in China with Boris Nikolayevich. From there Boris Nikolayevich has addressed a congratulatory letter personally to Heydar Aliyevich on the occasion of this remark able event which is a notable achievement both of Azerbaijan and Russia. (Then he read the letter of the President of the

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* have been implemented into life and I am sure that this suc cess will open doors for other opportunities, too. Ladies and gentlemen ! This project was fulfilled due to the brave leadership of President Heydar Aliyev, due to his coop eration with the international business circles, partnership and foreign investment. The Azerbaijan International Operating Company - the consortium which develops this project is an amazing international team uniting only the best in itself. We feel proud that the USA companies “Amoco”, “Exxon”, “Pennzoil” and “Unocal” are parts of this success. Mr. President Aliyev ! You are working tirelessly for the development of the energy resources of Azerbaijan, for the recognition of your country and your region in the interna tional arena. The road pursued by you will raise the life level of the citizens of your country, this achievement will provide the independence, democracy and progress of Azerbaijan and the whole region. President Bill Clinton asked me to head this presidential mission. He did it because he understands the importance of the Caspian basin for the future of the world. I came to this region on Monday. Then I shall go to Turkmenistan and Georgia. I note it in all my meetings and shall continue repeat ing that it is important to provide the alternative and secure oil supply, to transport the oil to the world market, to provide the regional political and economic stability and transportation of oil to the international markets by means of alternative Western - Eastern pipelines. The United States of America supports the idea of alternative and secure oil supply and non dependence on the gas and oil of one region. That is why when we take part in this ceremony with President Heydar Aliyev and the Azerbaijan International Operating Company today we unwillingly think of another historical day, of

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с* October 1998. According to the plans of the Azerbaijan International Operating Company the main export oil pipeline must be ready just on that day. The United States of America approves and supports the idea of the Baku - Jeyhan oil pipeline. We believe that the Baku - Jeyhan pipeline can satisfy the demands of the Euroasia transport corridor. We also support the idea of the Transcaspian and Transcaucasian pipelines. Looking forward hopefully to the October of 1998 I pro pose to the countries of the region and to Turkey to create working groups on the level of departments of the state and private sectors and these groups should provide the speed of the process. Now the main goal is the holding of tenders by the Azerbaijan International Operating Company, to determine the winners and provide the construction of the Baku - Jeyhan pipeline by the October of 1998. The oil pipelines and routes which are being laid today will transport the energy resources of the Caspian Sea to the world markets safely and securely. The history evidences that when the foreign policy and eco nomic interests coincide a much greater understanding is achieved. Working together for the common goal we have come to this day, to the day of celebration of our achieve ments, and better understanding and cooperation are illuminat ing the road of future more brightly. Mr. President Aliyev ! Today in this historical day I con vey once more my sincere desires and best congratulations to you on behalf of the American nation and President Bill Clinton. Everyone who has joined this project may feel proud. Because in the modern history we shall remember this histor ical day as a turning point in the life of the region. I congrat ulate you once more !

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с* Mr. President, I want to share your thoughts and congratu late once more all the companies and their representatives who have taken part in the implementation of all this into life. It is doubtless that today I feel a great pleasure that the companies of Great Britain, which once had great successes in the utilization of the energy resources of the North Sea, have taken a close participation in the extraction of the Caspian oil in these days and played an important role in this project. I think it would have been impossible to implement into life these projects so successfully without the professionalism and hard work of subsidiary and supplying companies. I hope that the partnership which has been going on suc cessfully up to now will expand and develop further. I hope that these contracts will serve not only to raise the welfare of the Azerbaijan people, to develop the economy of Azerbaijan, but as well as raise the welfare of peoples and economy of countries which have taken part in the implementation of these contracts into life. The oil and gas produced in the Caspian Sea will make great contributions to raising of the welfare of the Azerbaijan people. It will enable Azerbaijan to rise to the level of advanced democratic world countries. It will enable Azerbaijan to establish wide commercial relations with other world countries and become a powerful and influential com mercial partner. At the same time, it will enable Azerbaijan to exchange technologies and ideas with other free and indepen dent states. Mr. President, Great Britain welcomes heartily the com plete integration of Azerbaijan with the world comminity, with the world economy, most of all, with the energy markets of the world. Mr. President, today I have conveyed to you the letter of her Majesty the Queen of the United Kingdom of Great Britain

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с* Mr. President, extraction of the early oil in the deposit “Chirag-1” is a very important event in the history of your country. Baku has really returned its former fame and popu larity as a city which can become a centre for assemblies in the sphere of energy and oil industry. We are proud that our country Norway is also taking part in these developments. The Minister of Energy and Industry of my country asked me to convey his best regards and congratulations to the Azerbaijan people on the occasion of this remarkable event. All this gives a good incentive to the development of the Azerbaijan econo my. Development of economy is a contribution to stability, to the development of democracy and peaceful co-existence of peoples. We have witnessed the process of attraction of the oil com panies of the West to Azerbaijan. The successful implementa tion of the first stage of the contract into life shows that the State Oil Company of the Republic of Azerbaijan and all the companies which take part in the contract must be proud of it. Because it means that the realization of the contract destroyed completely the thoughts of ambitious persons who suspected the implementation of the contract into life. Mr. President, the project’s being in the focus of your atten tion had a special importance in the attraction of the Western oil companies to it. Your personal control on the project has acquired great importance for the oil companies to develop the oil industry in the basin of the Caspian Sea, as well as in their own countries. We think that the activities of the Norwegian companies in Azerbaijan have a great significance for our countries, and we hope that this cooperation will give its fruits in future, too, and will expand further. During the short period of my stay in Azerbaijan I saw a big country with its nice people. The customs, traditions, cul-

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с* various difficulties which your country were facing, as well as due to the efforts of your great nation. I am under the great impression of the economic reforms carried out in the oil industry and in other spheres of economy, the speedy devel opment of Azerbaijan headed by His Excellency Mr. Heydar Aliyev. Azerbaijan occupies a central position in the basin of the Caspian Sea and the surrounding regions possess the richest oil and natural gas resources. We link our great hopes just with these regions and think that they will play an important role in the development of energy resources of the world, including the development of the oil supply sources of the world in the XXI century. Japan as a country which possesses very scanty resources would like to cooperate widely in the development and exploitation of energy resources just of this region. The prime Minister of Japan Mr. Hosimoto follows atten tively the efforts of the Japan companies which take part in the development of the energy resources of Azerbaijan personally. The government of Japan together with the National Oil Corporation of Japan support actively the participation of the Japan companies in the development of the energy resources of your country. It is very pleasant for me to see that Azerbaijan which was the centre of the oil production of the world at the beginning of the XX century, is again being turned to such a centre at the beginning of the XXI century. I think that to achieve it, it is necessary to realise the con struction of the oil pipeline for the full-scale extraction of oil and for the supply of resources, and it must be realized on the basis of mutual consent of the interested parties. The government of Japan approaches seriously to rendering of support in such spheres as the economic cooperation and realization of the commercial insurance in order to make its

280 HEYDAR ALIYEV Azerbaijan oil in the world policy c* constribution to the development of economic reforms in Azerbaijan, not only in the development of oil deposits, but in the economy as a whole. Taking the opportunity I want to inform you that the government of Japan has already adopted a decision on the implementation of the commercial insurance into life for such projects as the updating of the plant on the production of ethylene, construction of the on-shore power sta tion, gas compressive station and other projects. The national institutions of Japan are also ready to consider the possibilities of establishment of economic cooperation with your country for which we have been requested by you. I am sure if Japan and Azerbaijan, one located in the far east of Asia, the other in the far west of Asia, could work together, it would favour the nourishment of Asia and make a great contribution to the whole world. We live in such a peri od when the distance of even tens thousands of kilometres may seem nothing if the political, economic and cultural under standing of both countries is continued and developed further. Japan, a country developed on the basis of the civilisation coming with the “Great Silk Road” from the West, wants to strengthen its interraltion with other countries in order to catch up with the new era. At the end of my speech your Excellency Mr. President, let me wish you good health and new successes, peace and progress to the Azerbaijan people.

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HEYDAR ALIYEV Azerbaijan oil in the world policy ing a great confidence in Azerbaijan and in the whole region. It is to the point to note that the peoples of the Caucasus also had enough wisdom and stood above the fleeting interests and displayed witness in order not to sacrifice their future and the rich natural resources of the region to restrained emotions. Just this wisdom gives us hope and confidence that the idea of the peaceful Caucasus and the ideas proceeding from the Kislovodsk declaration will pave their way and bring just, last ing peace and progress to our region in the nearest future, to a region which has experienced many misfortunes. We welcome the realization of the most important stage of this multinational project, i.e., as I said before, the beginning of the transportation of oil through the Northern route, and the role of our great neighbour Russia in it. Participation of 20 companies of 12 countries in this pro ject is a constructive example of cooperation in the post-total itarian space of the states which not long ago stood on differ ent sides of the wall which separated them. We are witnessing in the Caucasus the arena of namely such an equal and mutu ally beneficial partnership, but not the arena of a new global confrontation, we are also witnessing the formation of new independent states in this region. We thank President Heydar Aliyev, the Azerbaijan International Operating Company and the State Oil Company of Azerbaijan for choosing Georgia as one of the routes for the construction of the oil pileline. The government of Georgia will do its best to make the Western route function in the intended time, i.e., in the autumn of the next year. Since the day of signature of the “Contract of the Century” we have ful filled all our obligations and are going to do it in future, too. If decisions are adopted on the alternative routes for the main pipeline as for the transportation of the early oil through the

283 с* territory of our country we shall fully support it and provide it with all guarantees on the part of our government. I am not going to argue on this issue, i.e., on the route of the big oil, because only those who do not believe it, they begin to argue. I believe it. I want to assure you that we shall do our best to make the main pipeline justify itself from the commercial point of view and become realizable from the technical point of view. At present Georgia, as a natural corridor for a number of coun tries of the Mediterranean and the Black Sea basin, it is just a transit country. But we hope that owing to its economic revival and also due to successful realization of the present projects, Georgia will became a member of the consortium for the development of new oil deposits. We applaud the Azerbaijan people. Thanks to the persis tence, diligence and industriousness of the people, Azerbaijan has turned to a dynamically developing country, aspiring for the future, to one of the key states of the European - Southern Caucasean - Asian corridor. Azerbaijan possesses very rich natural resources, but the real wealth of Azerbaijan is its peo ple, you are the wealth of Azerbaijan. Namely the Azerbaijan people is the reliable guarantee of the future flourishment of our country. And at the end of my speech I want to greet my great friend, President of the Republic of Azerbaijan Heydar Aliyev. It is already more than for 30 years he has been exerting a decisive, favourable, influence on the life of his country, and not only on the life of his own country. I would like to empha sise his special role in the life of the Republic of Azerbaijan in the period of independence of the country. Recently we swore to each other with President Heydar Aliyev like broth ers to continue the work begun by us to its logical completion

284 HEYDAR ALIYEV Azerbaijan oil in the world policy c* by all means, to create a reliable guarantee for the indepen dence of Azerbaijan and Georgia, for the consolidation of their sovereignties, peace and prosperity in the Caucasus for the sake of all its nations, including our closest neighbours. President Heydar Aliyev is marching along this road patiently and bravely, in a manner inherent to his nation. Being aware of all the details of the “Contract of the Century”, from the birth of its idea to the transportation of the early oil, I think that it is my duty to express my special gratitude for his wis dom and sagacity. Without his wisdom and sagacity the imple mentation of this huge project would have been impossible. Dear friends, dear brothers, I congratulate you on the occa sion of the great victory of the Azerbaijan people, I congratu late all the states and nations of the Caucasus, all the partici pants of this grand project. Today I am convinced more than ever that together we can turn the Caucasus to a flourishing region. About one thing else, try I want to speak seriously about, which the scientists also try to prove, that after 50 years water will become a strategic product like the oil now. Unfortunately we have nearly no oil. Georgia can not boast with the abun dance of oil, but it is a country surprisingly rich in water. And therefore, I would friendly advise the members of the consor tium, all the esteemed investors to think of their future in time and sign contracts with us.

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Our peoples are connected with close ties of kinship, we have common historical, ethnic and cultural roots. We are also united by the Caspian Sea common to both of our countries. It is also rejoicing that even in such a complicated issue of the international law as the legal status of the Caspian Sea we share the same position. All this, undoubtedly, lays a good foundation for the dynamic development of mutual cooperation in the name of nourishment of our peoples. Here, in your hospitable country, I am very happy to share your joy and convey the warm and sincere congratulations of Nursultan Abishevich Nazarbayov, President of the Republic of Kazakhstan, from the other side of the Caspian Sea to the people and administration of the Republic of Azerbaijan. I have specially charged by the President of Kazakhstan to hand his congratulation to you Mr. President Heydar Aliyev. Let me read it” (The speaker then reads the congratulation).

SPEECH OF KA YUM KHAKULOV, DEPUTY-PRIME MINISTER OF UZBEKISTAN

Dear ladies and gentlemen ! Allow me to read to you the greetings of Mr. Islam Karimov, President of Uzbekistan to His Excellency Heydar Aliyev, President of the Republic of Azerbaijan. (Then Mr. Kayum Khakulov reads the text of the greeting). Then he said: “Highly esteemed Heydar Aliyevich, allow me to give you the gift of memory of President Islam Karimov in honour of the production of the early oil in the deposit “Chirag”.

288 population. Today, after two years, we are witnessing the pro duction of the early oil. It all has become possible due per sonally to you. We, the friends of Azerbaijan, are glad for the achievements of your republic. Namely your personal deter mination, brave efforts closely integrated Azerbaijan with the world community and established in it peace and stability. Mr. President, it is a great honour to me to convey the sin cere greetings and kind wishes of the Federal President Roman Herzog, Federal Chancellor of Germany Helmut Kohl and the State Minister of Foreign Affairs Klaus Kinkel to you. These greetings have also been addressed to the Azerbaijan International Operating Company, to all the partners of this company and to the president of the company Dr. Mr. Terry Adams, we congratulate you because along with the interna tional partnership you demonstrated a good belief and faith in the independence of Azerbaijan. Courage and risky steps undertaken by you in the period of uncertainty serve a good example for all of us. The faith and bravery demonstrated by you now are giving their fruits. Mr. President, we express our gratitude to you, to the government of Azerbaijan, to Dr. Terry Adams for giving chance to the companies of Germany just from the beginning of projects to take part in them, these pro jects have a great significance for the whole world and they have a great future. We congratulate all who together with us participate in these contracts, consortiums, all countries which take part in these nine contracts, their companies, all those who believed the independence of Azerbaijan, to its economic progress, all who wish to make their contributions to the establishment of stability and peace in this country and in this region. The Federative Republic of Germany is glad to take part in these projects. Along with our partnership in the consortium

290 HEYDAR ALIYEV Azerbaijan oil in the world policy we also supplied the project with building materials and other equipments, we are proud of the work that we have carried out in Azerbaijan. What is taking place here today may only be compared with a rule applied in the Olympic games, that is, it is not impor tant who wins the first, second or the third prize, the main and the most important thing is that we all take part in these projects. Germany is further ready to do its best for Azerbaijan in building an independent, economically flourishing, legal state. We understand well that Azerbaijan is located on the cross roads of the West and East. Azerbaijan is a country with opportunities and potentials able to play an important role in the development of the whole Transcaucasian region. You have a rich history, ancient traditions, culture, enlight enment, a brilliant future, Mr. President, in this remarkable day we wish the Azerbaijan people, each citizen of the Republic of Azerbaijan greatest successes in the construction of a democ ratic society able to achieve a worthy social maintenance due to its rich natural resources, the utilization of which has already begun. Mr. President, I wish you good health and great successes in your future work as the highest representative of the Azerbaijan people. Highly esteemed Mr. President ! Ladies and gentlemen ! It is a great honour to me speaking on behalf of the gov ernment of Germany to represent the position of our govern ment. Dear President, allow me to hand the personal letter of the Federal Chancellor Helmut Kohl addressed to you.

291 Today is a historical day for the oil industry of Azerbaijan and for the whole region. Production and transportation of the early oil are important periods in the development of the econ omy of Azerbaijan. Its symbolic price grows still more because the economic resources of the country are unlimited. Since this day everything will be not like it was in the past, but other wise. Potential resources of Azerbaijan have become a reality for its economic development. Participation of numerous com panies of various countries in this process is very important. Participation of these companies in joint oil developments of deposits is the result of the foresighted policy of the adminis tration of Azerbaijan and President Heydar Aliyev. Many con tracts have been signed in Azerbaijan since 1994. And perhaps there will be more in future. Once more I express my deep gratitude and respect of my government for enabling the Italian companies to take part in these contracts. As you know, the Italian company “Agip” has been work ing in Azerbaijan already for two years and taking part in the joint oil developments in the deposit “Garabag”. This compa ny hopes very much to take part in other contracts, too, which will be signed on joint oil developments of other deposits in the Azerbaijani sector of the Caspian Sea. We hope that new contracts will be signed. I want to note that the Italian com pany “Saipem” has taken an active part in the construction of subwater pipeline from the platform till the terminal in Sangachal. The Italian government welcomes the positive develop ments in Azerbaijan. The government of Italy appreciates pos itively the results of the official visit of President Heydar Aliyev to Italy. As a result of this visit Italy intends to expand the further cooperation with Azerbaijan in the sphere of ener gy on the principles of partnership.

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HEYDAR ALIYEV Azerbaijan oil in the world policy c* We are sure that today there begins a new stage of cooper ation for countries which are taking part at present in the joint oil developments in the deposits of the Azerbaijani sector of the Caspian Sea and in those of the countries of the Caspian Sea basin. We also hope that this cooperation and partnership will serve to establish lasting peace in this region. On behalf of the administration of Italy I congratulate you once more on this remarkable event and on the occasion of the second year anniversary of the Constitution Day. I hope that the wealth of Azerbaijan in the Caspian Sea will bring pros perity, progress, economic and social development for the Azerbaijan people. (Then the Ambassador of Italy read the letter of the Prime minister of Italy Romano Prodi to the President of Azerbaijan His Excellency Heydar Aliyev).

SPEECH OF CORNELIS VITTERBROD, HEAD OF THE DELEGATION OF THE EUROPEAN COMMISSION

Your Excellency Mr. President ! Ladies and gentlemen 1 I am very glad to represent here today the European Commission and its Chairman Mr. Jacques Santere and the member of the commission Hans Van Den Bruk whom you met in Strassburg this year. I would like to congratulate the Azerbaijan people and all the foreign companies involved in this project on the occasion

295 ■кмшммС* ■■мминмм of the obtained achievements. It is also one of the best exam ples of the success of the economic reforms carried out in your country. Moreover, it exerts a positive influence on the eco nomic development not only of Azerbaijan, but on that of the whole region. We consider this example as one of the best examples of the close international cooperation which is pos sible in this region. I would like to remind you that the European Union was the first organization which attracted the attention of your country to the importance of international and regional coop eration. The head of the European Union managed to assem ble the presidents of the Caucasian states in Brussels in order to sign a memorandum on cooperation and partnership in the region. As you know, the European Union is fully interested in the improvement of processes in this region, and in any case, our organization will support the course pursued by the countries of the former Soviet Union. We have a gradual, step by step approach to the development of these countries. It will exert a special influence on those changes of the economic market which are necessary to carry out. The European Union is proud that it was the first donor for Azerbaijan when it gained its independence. Besides this sum, the European Union spent 10 million ecus for the develop ment of the energy sector of Azerbaijan. From the beginning of the process of its independence Azerbaijan played one of the main roles in the development of production and trans portation of energy resources of the Caspian region. Since 1994, that is, the signature of the contract on this project, the European Union has taken an active part in the implementa tion of this project into life. We also have closely cooperated in the formation of the infrastructure, in the issue of pipeline

296 HEYDAR ALIYEV Azerbaijan oil in the world policy c* route, as well as in the process of the transportation of the early oil which is now being produced in the platform “Chirag”. Mr. President, I would like in my speech, as you did, once more to emphasise the significance of the support of the infra structure and also creation of various routes for the trans portation of oil from this region. What concerns the formation of the infrastructure and also construction of various pipelines for the transportation of oil we intend in the nearest future to spend 55 million USA dol lars on technical support and assistance to it. It is very pleas ant for me to inform you that the official beginning of this pro gram will be held on December 5 of this year in Brussels. Mr. Van Den Bruk has invited the prime ministers of all the inde pendent states which once were a part of the Soviet Union. I would like to express my support once more and con gratulate you on the occasion of this historical event. If you allow, Your Excellency Mr. President, I would like to read the letter of President Mr. Santere addressed to you. (Mr. Vitterbord read the letter of the President of the European Union Mr. Jacques Santere).

SPEECH OF PETER SHUTERLEY, SECRETARY GENERAL OF THE ENERGY CHARTER OF THE EUROPEAN UNION

Your Excellency Mr. President ! Ladies and gentlemen ! Celebration of the second year anniversary of adoption of the Constitution of the Republic of Azerbaijan is a very impor-

297 tant event. I experience a sense of satisfaction to speak in such a ceremony, which is worthy of attention, and have the oppor tunity to address to you. On behalf of all the members of the Energy Charter I convey to you their most sincere congratula tions. The Energy Charter of the European Union has 50 mem bers. The members of this organization are Japan, the states of Europe, including Turkey, and all the countries of the former Soviet Union. The main goal of our Charter is to provide the transportation and transit of energy between the West and East, to provide their security and to exert support in the imple mentation into life of the energy projects of separate states. Today we are witnesses of the fact that Azerbaijan emerges bravely in the world as a new source of energy. The event, which we celebrate today, has turned into a reality due to investment of capital into the economy of Azerbaijan by the oil companies of the world, due to their cooperation with Azerbaijan, including the long unsolved problem of trans portation of oil which was obstacled by some forces and wait ing for its solution. Mr. President, in your speech you mentioned the difficul ties on this road. We think that all the states will benefit from the joint exploitation of huge natural resources with the help of foreign investments, as well from the delivery of energy by the way of transit to foreign countries. Identical large-scale energy problems can not be solved by one country alone. They may be solved only by an obligatory support on the interna tional level and owing to the regional cooperation. The faith and confidence of the world public in Azerbaijan and big capital investments into the economy of the republic have a special importance for the development of rich natural resources of Azerbaijan and for their transportation to the

298 HEYDAR ALIYEV Azerbaijan oil in the world policy world market. Mr. President, as you noted in your speech, it is doubtless that the realization of legal reforms in the society and creation of the necessary basis are of great importance for the flow of big capital investments into the country. Only by adopting legal norms pursuant to international standards, by implementing into life economic reforms one may provide the development of the country. One of the main purposes of the Energy Charter, in which there are 49 members except Azerbaijan, is not to allow the creation of artificial obstacles on the road of energy supply and transit of energy, to solve the energy problems facing various countries with the joint effort of the world public. To the present day 29 countries have ratified the Energy Charter. By the end of this year it is expected that one more country, i.e., the thirtieth in number, will ratify our charter. Azerbaijan and the states of the Caspian basin have already ratified it. Now it is high time for the world public and big oil companies to act. Taking into account the advantages of the existing situation they must make capital investments into this country. Allow me to congratulate Azerbaijan and other countries of the Caspian basin on the occasion of their achievements gained in the sphere of development of their energy resources jointly with the leading oil companies of the world and convey my sincere congratulations to the Republic of Azerbaijan, which is now producing the early oil in the deposit “Chirag”, exporting it to the world market and which has laid the foundation of this historical event.

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с* nesses of the production of the early oil in the platform “Chirag-1” from the well which was personally opened by the highly esteemed President of the Republic of Azerbaijan Mr. Heydar Aliyev. It is very symbolic that this holiday coincides with the Day of Constitution of Azerbaijan. On the occasion of this remark able day I convey the sincere greetings of all the oil workers of Azerbaijan in the first place to His Excellency Mr. Heydar Aliyev and congratulate all our oil workers, our foreign part ners and all our citizens on the occasion of this remarkable holiday. Today in the capital of the Republic of Azerbaijan, in the city of Baku, in this beautiful and grand Palace the ban ners of the states and oil companies, which have taken part in the contract, have been raised in honour of the first victory obtained as a result of the hard and intensive work. The first stage of works since the signature of the contract performed consistently by the Azerbaijan International Operating Company formed for the implementation of the con tract into life has been successfully completed. The main thing is that the independent Azerbaijan demonstrated that its econ omy is open to the world, that it is able to cooperate with for eign companies on mutually beneficial basis, that it has a high ly qualified personnel and developed industrial - technical potential. In the period since the signature of the contract much have been done for the future development of the oil industry of Azerbaijan and wide opportunities have opened for it. The beginning of exploitation of new off-shore oil deposits dis covered by the oil workers in the past laid the foundations for the reconstruction and building of industrial objects and infra structure necessary for the oil industry in conformity with the world standards. The independent Azerbaijan for the first time

302 HEYDAR ALIYEV Azerbaijan oil in the world policy c* in its history has managed to transport its crude oil to the world market within the frames of this contract and solved the issue of export of oil by pipelines. The first contract has grown the interests of foreign countries greatly to invest capital in Azerbaijan, and as a result of it Azerbaijan has become the pioneer of countries in the region by attracting foreign invest ment and turned our country to the focus of interests of big, well-known world companies and states. Azerbaijan will step into the XXI century as one of the centres which produce and export oil, this will open great opportunities for its rapid devel opment and occupation a worthy place among the world coun tries. The opportunities of existing great scientific-technical, industrial and material bases, new infrastructures will be wide ly used in the assimilation of huge oil and gas resources of the Caspian region and in the solution of the problem connected with the transportation of the produced oil to the world mar ket. Your Excellency, the opportunities and performed works which I enumerated now with a great sense of pride are the result of huge works carried out only by you when you head ed the republic in the past and in the recent years, of your wise and foresighted home and foreign policy, of your hard labour, of the great and constant care you displayed for the develop ment of the oil industry of Azerbaijan and your worthy advices. In this remarkable day the arrival in Baku of heads of governments and states of friendly countries, high officials of governments and of more than 150 companies, politicians and social figures is the triumph of your peace loving policy which is supported by the politicians of the world, and it must be appreciated as the revelation of great a respect to your reputa tion.

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HEYDAR ALIYEV Azerbaijan oil in lhe world policy c* changes. We have also been the foundation on which the new oil strategy of Azerbaijan has been successfully built. As the speakers before me noted we are celebrating today the culminating moment of our first foresighted, great policy. Mr. President, this policy was provided by the “Contract of the Century” signed on September 20, 1994, by you personally. In one word, we are celebrating today the completion of the pro ject of the early oil of Azerbaijan. And now quite unexpect edly this project has amazed the whole world public. The early oil of the Azerbaijan International Operating Company from the platform “Chirag-1” began to flow by a 24- inch subwater pipeline on November 7, at 22.30 o’clock. The symbolicalness of this day does not end only by the success es of the employees of the State Oil Company of Azerbaijan and the Azerbaijan International Operating Company. Namely in this very day of 1949 the heroical oil workers of Azerbaijan began to extract oil in the Oil Rocks in the Caspian Sea. This event laid the beginning of a new era in the oil industry of Azerbaijan and of the whole world. Today the history is being repeated. Along with the above mentioned, on October 25, the export of the Azerbaijan oil began through the territory of the Russian Federation to the port of Novorossiysk. Despite a number of difficulties all obstacles have been removed. The first tanker-ship filled with the Azerbaijan oil is expected to leave Novorossiysk for the world market on December 12. It is also notable that this day is the third year anniversary of formation of the Azerbaijan International Operating Company in Baku. Mr. President, we congratulate you and all the Azerbaijan people on the occasion of this very important and symbolical ly solemn event which is taking place in Baku at present. We all are proud that we are participants of the historical process-

305 es, the victories of the independent Azerbaijan in the recent three years. Many people have spent lots of hard labour for the achievement of this success. Mr. President, on behalf of the Azerbaijan International Operating Company we express our gratitude to you for your leadership and for your fondness of our company. We also thank the Cabinet of Ministers for its necessary and timely support which enabled us to perform our work in time. We want to thank particularly the high officials and employees of the State Oil Company of Azerbaijan which became real partners of the Azerbaijan International Operating Company in this great joint venture. We also thank our numer ous local and foreign contracting companies which have played the main role in the success of the project of the early oil. Mr. President, and again it has become evident from the information of the department of finance of our company that namely this very day since the Azerbaijan International Operating Company began to function in Azerbaijan the amount of its capital investment has to reach the sum of USS one billion. We also must thank the governments and the state organi zations of Russia and Georgia for the rendered assistance and support in the sphere of effective and successful transportation of materials and necessary technology, for the supply of mate rials in large and necessary quantity, and also for enabling the export of the Azerbaijan oil to the Black Sea which is of great importance. We thank the diplomatic missions of the states which our companies - share holders represent here for the necessary support which they render today and will render in future for the solution of issues connected with the transporta tion of oil from the region. We thank our shareholder compa nies for their confidence in the Azerbaijan International Operating Company for charging us to complete this project.

306 HEYDAR ALIYEV Azerbaijan oil in the world policy c*

Mr. President, now the most important is that I want to thank the Azerbaijani and foreign specialists of the Azerbaijan International Operating Company. Their patience and affection for the project provided the success which we are celebrating today. But I want to express my special gratitude to one per son else without whom I would have not been able to gain these achievements. That person is my wife Caroline. Mr. President, the Azerbaijan International Operating Company has prepared a small gift on the occasion of this remarkable day for Azerbaijan, a gift which is symbolic in sense. I believe that this gift will become a source of constant pride and satisfaction for you and the Azerbaijan people. Mr. President, the International Association of Roses has culti vated a new sort of rose and registered it under your name for ever. This sort of rose has been specially cultivated from orig inal sorts of roses devoted to Her Majesty Queen of Great Britain. Mr. President, since this day your rose will bear the name of “President Heydar Aliyev’s peace rose”. Mr. President, now we shall officially and with great satis faction present to you the botanic photo of that new rose. 200 bushes of this rose will be brought to Baku in order to be planted in places chosen by you. Besides, the bushes of this rose will be given to all our shareholders - companies, mem bers of AIOC in order to decorate the botanical gardens of their countries with it. Mr. President, let these roses become the international sym bol of the independent Azerbaijan, which has been founded by you and whose father you are. Mr. President, I congratulate the Azerbaijan people once more for your foresightedness and for your leadership which move Azerbaijan to an evident, peaceful and flourishing future. Celebration of our achievement on the day of the sec-

307 с* ond year anniversary of adoption of the democratic Constitution, which confirmed the freedom and independence of this glorious country, is really to the point. Thank you for attention.

CONCLUDING SPEECH OF THE AZERBAIJANI PRESIDENT HEYDAR ALIYEV

Ladies and gentlemen ! Dear guests, friends ! The solemn ceremony of today demonstrated brilliantly that production of the early oil in the platform “Chirag” is a very remarkable, significant and historical event. The speeches made here by our guests, the congratulations sent to Azerbaijan on the occasion of this event and high spirit which is dominating in this palace now are evidences that the inde pendent Azerbaijan has chosen a right road for building its life and state. We shall pursue this road confidently and strength en the state independence of the independent Azerbaijan day by day. We shall try to make an effective use of all the resources in possession of Azerbaijan, of all its potentials for the improvement of the welfare of the people, for providing a prosperous, happy life for our people in future. I thank all our guests for their brilliant, contentful speech es, for their kind words addressed to Azerbaijan, for their con gratulations. I wish peace, tranquillity and happiness to all peoples, nations and countries of the world. I thank the Azerbaijan International Operating Company, its

308 HEYDAR ALIYEV Azerbaijan oil in the world policy c* president Mr. Terry Adams for the created rose on this occa sion and wish that the future roads of development of all nations, including the Azerbaijan people, always lie through the gardens of roses. The Azerbaijan oil has occupied its worthy place in the his tory of mankind. The Azerbaijan oil has rendered great ser vices to the mankind. The Azerbaijan oil is also rendering a great service to our people in the development of the econo my of our republic, to our people and to peoples of many countries in the establishment of economic relations of our republic with the world countries. The Azerbaijan oil will serve the mankind, peace and pros perity in future, too. I congratulate you on the occasion of this historical event once more. I wish all of you good health and happiness. Thank you.

Murtuz Aleskerov, speaker of the Parliament of the Republic, Artur Rasi-zade, Prime Minister, Ramiz Mehdiyev, head of staff in the administration of President, and other offi cials took part in the solemn ceremony.

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HEYDAR ALIYEV Azerbaijan oil in the world policy

SPEECH OF THE AZERBAIJANI PRESIDENT HEYDAR ALIYEV

The platform “Chirag” which I saw here today, I think impressed not. only me, but all who are here greatly. We are witnessing the brilliant results of a three year tireless work. As early as 50 years ago the oil workers of Azerbaijan build platforms in the Caspian Sea and began to produce oil there. And in the deposit “Chirag” the platform was constructed by the Azerbaijani oil workers at that time. But three years ago after the signature of the “Contract of the Century” we recon structed this platform together with the companies which are members of the consortium and now it has been updated and brought to its present state. Today 1 feel a great sense of pride. In the centre of the Caspian Sea, in the open sea a very nice platform has been built. It meets the highest requirements of world standards in the sphere of off-shore oil production. I thank all who have constructed, installed and created this platform, all who work here, all the specialists from many countries, engineers, tech nicians and workers who have assembled here. I congratulate all of you on the occasion of the beginning of the work of the platform “Chirag”, on the occasion of the production of oil. We have laid the foundations of a common cause. It is doubtless that as a result of activities of the consortium formed by the companies which have signed the “Contract of the Century” and in the process of realization of other signed con tracts many other such fine platforms will be constructed in the

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с* the beginning of the ceremony Terry Adams, president of Azerbaijan International Operating Company said: “Mr. President, we feel greatly honoured to see you here among us. Today is the peak of the work we have done. 1 think you remember, when I speak in public, 1 always quote Mr. Winston Churchill. It is quite to the point to quote a phrase by him which suits this day as well. Churchill said after the first victory in the battle in the Second World War: “It is not the end of our work, even it is not the beginning of the end, it is the end of the beginning”. Mr. President, now we ask you to unveil this board of memory”. Heydar Aliyev: I approve your words and the words of Mr. Churchill. Then the Azerbaijani President unveiled the board of mem ory. It bore the following words: “In memory of the official visit to the platform “Chirag-1” of His Excellency President Heydar Aliyev on the occasion of the production of the early oil. November 12, 1997”. After the ceremony President Heydar Aliyev returned to Baku by helicopter.

OPENING CEREMONY IN THE SANGACHAL TERMINAL

On November 12, 1997 there was held a solemn opening ceremony of the Sangachal terminal build on the shore of the Caspian Sea. The oil produced in the platform “Chirag” is pumped to this terminal through the subwater pipeline and exported to the world market through the Northern pipeline route.

320 HEYDAR ALIYEV Azerbaijan oil in the world policy c* The opening ceremony was participated by the Chairman of the Parliament Murtuz Aleskerov, deputy-Prime Minister Abid Sharifov and other high officials. The participants of the ceremony were informed that in con formity with the “Contract of the Century” all the oil produced in the deposits in the Azerbaijani sector of the Caspian Sea will be collected in this terminal and after certain operations it will be transported in necessary directions. The terminal has big oil tanks the capacity of which exceeds 100 thousand tons, there is also automatised control devices and security facilities. The work regime of pipeline will be controlled from the ter minal with the help of satellite communication systems. It was noted that all the technological processes in the terminal will be controlled by computers. The construction projects envisage the enlargement of the terminal in future. After the acquaintance with the terminal there was held a meeting. Speaking at the meeting John Hollis, vice-president of the Azerbaijan International Operating Company, said that the terminal has been joined to the pipeline in the Northern route, the length of which is 220 km. He said that at present the construction of a second pipeline is going on, the length of this oil pipeline is 920 km. This pipeline will connect the ter minal in Sangachal with the port of Supsa on the shore of the Black Sea. The construction of this pipeline will be complet ed next year. It was noted that the terminal will be enlarged in future and it will turn to a huge complex which will export 40 million tons of oil a year. Then Mr. John Hollis thanked the builders who had taken part in the construction of the termi nal and congratulated the participants of the ceremony on the occasion of the opening of the terminal. Speaking at the meeting Murtuz Aleskerov, chairman of the Parliament said that the opening of the Sangachal terminal on

321 с* November 12, the Day of Constitution of the Republic of Azerbaijan, is very remarkable. The speaker of the Parliament reminded that the oil workers of Azerbaijan have a rich expe rience in the production of oil in off-shore deposits. In con formity with the Decree of the Azerbaijani President Heydar Aliyev the 50 year anniversary of off-shore oil industry of Azerbaijan will be celebrated. The Azerbaijani oil workers were the first in the world to produce oil in the off-shore deposits. The off-shore oil workers of Azerbaijan have pro duced about 420 million tons of oil and 320 billion cubic metres of gas up to present. It was noted that Azerbaijan has signed nine contracts on joint oil developments with the companies of foreign countries. Eight of them have undergone ratification in the Parliament. Murtuz Aleskerov congratulated the participants of the meet ing on the occasion of functioning of the terminal and the Day of Constitution of Azerbaijan. The deputy-Prime Minister Abid Sharifov speaking at the meeting said that the majority of construction work in this huge terminal has been done by the local builders. And it is doubtless that they will take an active part in future projects, as well.

322 CONTENS

TO THE READER ...... 5

CHAPTER I AN IMPORTANT EVENT IN THE USA - AZERBAIJAN RELATIONS...... 39

CHAPTER II OUR RELATIONS WITH RUSSIA MUST DEVELOP AND EXPAND FURTHER...... 185

CHAPTER III AZERBAIJAN - ITALY: COOPERATION IS STRENGTHENING...... 221

CHAPTER IV THE SUCCESS OF THE “CONTRACT OF THE CENTURY”...... 239 Edition and press Nazim Ibragimov

Translated by Gilinjkhan Bayramov

Art designed Zaur Aliyev

Volume V

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