Elimination of threats and risks to the security, political independence, sovereignty and territorial integrity of Azerbaijan;

Development of economic potential, using such key elements as natural resources and geographic location, through economic reforms, attraction of foreign investment, implementation of trans-regional projects, etc.

Establishment of a modern pluralistic democratic secular state based on market economy and the rule of law, protection of human rights and freedoms;

At the present stage of the world’s development, the main tendency is toward globalization. The expectations offrom globalization are high. It should contribute to sustainable development, integrity, and stability of nations, as well as help toin overcomeing discrimination in economic relations and to improveing the welfare of peoples. Supremacy of norms of international law, evolutionary character of changes, partnership and support of more advanced nations to less developed states, and mutual trust and recognition of national distinctions, should become the determining favectors of this process.

Azerbaijan has madekes his their contribution to thesuch positive development of globalization. Using its geographic location, natural resources, traditional economic and cultural links, themy country has utilized its position to serve as abeen implementing the role of bridge linking thebetween East and West. Our efforts are aimed at restoration of the Great Silk Road, which would also facilitate the development of a Europe-Caucasus-Asia transport corridor to provide for theand exportation ng of hydrocarbon resources of the Caspian basin to the world markets. The implementation of these projects will bring prosperity for the nations in several regions of the world, strengthen their sovereignty, and give an impetus to transnational cooperation, thereby having an enormous positive impact on the establishment of peace and security in the region.

However, external threats and pressures emanating from brutal violations of international law, fait accompli policies, struggles for spheres of influence, and double standard practices, undermine the peace and security of the young and fragile democracies. These infringements and do not allow the New Independent Statesthem to freely carry out the policiesy that would meet the interests and expectations of their people or, to which would strengthen their statehood. Since the very first days of their existence the Caucasus statesy were forced to fight a hard battle for independence, sovereignty and territorial integrity. In this regard, we ought to condemn and combat all forms and manifestations of aggressive nationalism and territorial claims, religious and racial extremism, separatism and terrorism that are the main causes of existing conflicts, which annually takeing away the lives of tens of thousands of people all over the world. These threats and risks have undermined the prospects for peace and security in the South Caucasus whichCaucasus, which is an indivisible part of Europe. The main destabilizing factor of the situation in the South Caucasus has become the aggression of Armenia against Azerbaijan, which has brought incalculable tragedies to millions of people.

It is obvious, that aggression by Armenia against Azerbaijan and occupation by its armed forces of 20% of Azerbaijani territory is a major factor affecting our security and foreign policy. Implementation of independent foreign policy focused at the restoration of Azerbaijan’s sovereignty and territorial integrity, of Azerbaijan and the liquidation of the consequences of the Armenian military aggression of Armenia by political means, constitute the most important priority in the mission to regain stability in the region.

Another important issue is humanitarian assistance to one million refugees and internally displaced persons (IDPs) in Azerbaijan. It is necessary to bring their existing problems to the attention of the world community, to undertake measures to increase humanitarian assistance to Azerbaijani refugees and IDPs being rendered by international organizations and donor countries to Azerbaijani refugees and IDPs, as well as to raise the issue of rude violation of their rights within the framework of international institutions.

In order to achieve peaceful settlement of the conflict with Armenia, Azerbaijan has supported since 1992 activities and negotiations undertaken within the framework of the OSCE Minsk group, since 1992. We reaffirm our strong commitment to the resolution of conflict between Armenia and Azerbaijan by peaceful means on the basis of the well-known principles, which were recommended by the Co-Chairmen of the Minsk Group and enshrined in the Statement by the Chairman-in-Office of the OSCE at the Lisbon Summit of December 1996. These principles are as follows:

territorial integrity of the Republic of Armenia and the Republic of Azerbaijan;

legal status of Nagorno-Karabakh defined in an agreement based on self-determination which confers on Nagorno-Karabakh the highest degree of self-rule within Azerbaijan;

guaranteed security for Nagorno-Karabakh and its whole population, including mutual obligations to ensure compliance by all the populations of the settlement.

In the economic sphere, the main task is to maintain macroeconomic stability, to develop a diversified, export-oriented industry, sound agriculture, and to pursue structural reforms aimed at development of private enterprises. In order to reach these objectives the Government attaches special importance to the development of energy resources located withinof the Caspian Sea.

Azerbaijan was a the pioneer in opening the Caspian Sea as a source for for the international co-operation. We consider exploration of our oil and gas potential to be as a locomotive for the economic development of our country and as an important tool for the strengthening of Azerbaijan’s personal security, sovereignty, and independence, of the Azerbaijan, its security, while also providing for the as well as regional security of the Caucasus as a whole.

Since 1994, Azerbaijan has concluded 21 agreements regarding theon development of hydrocarbon resources. Azerbaijan, in conjunction of the country with 33 companies from 15 states anticipate; in 30 years to come, foreign investments in the oil and gas sector will total approximately USD 60 bln. The volume of the extracted oil will reach 40-45mln tons in 2010-2015. In the forthcoming 5 years, into this sphere 10 bln USD will be invested into this sphere.

Today, one of Azerbaijan’s the priorities in the economic sphere is the accession of Azerbaijan to the World Trade Organization (WTO). Large investments into the oil and relevant sectors of the economy increasehave dramatically increased the importance of participation by Azerbaijan’s participation in WTO agreements. The Government of Azerbaijan will undertake all measures to begin the negotiation process on its accession to WTO as soon as possible. We rely on support provided by the United States and the European Union in this process.

Speaking of the In regards to co-operation and development, one issue, particularly important for our region should not be ignored. This is the factor of armed conflicts and particularly aggression of Armenia against Azerbaijan. In this regard, Wwe should note that until the conflict is fairly settled and the territorial integrity of Azerbaijan is restored, proposals for cooperation in any field between the two countries does not appearsound seriousviable and cannot produce any results.

However, that does not mean that Azerbaijan is not ready for regional cooperation. Azerbaijan is an active member of three regional organizations namely Economic Cooperation Organization (ECO), Black Sea Economic Cooperation (BSEC) and Commonwealth of Independent States (CIS). Azerbaijan is also one of the founding fathers of the regional group of GUUAM.

Azerbaijan has managed to establish a strategic multifaceted political, economic and security cooperation with Western Nations and Euro-Atlantic institutions. Major achievements in those areas include partnership agreements with NATO and the EU, , on projects for the on transportation of oil and gas resources from the Caspian Sea to international markets, development of the East-West corridor and restoration of the historic Great Silk Route. Due to its geo-strategic location Azerbaijan has taken ans active part in the TRACECA project run by the EU that will bring about further development of trade and economic relations, as well as establish more confidence and cooperation in a wide region of Europe, the Caucasus and Asia.

As an energy-rich state located at the cross-roads between Europe and Asia, Azerbaijan is keenly interested in securing access to the Trans-European and Trans-Asian transportation networks, that would facilitate development of industrial and trade links between the countries of the region, and improve ing access to internationalthe markets, therebyand increasing integration links. In conjunction with the further development of East-West links, we would propose further development of trans-regional cooperation. Among priorities for such cooperation may be areas of transport, energy, trade and investment.

In the field of human rights and democratization there are several issues among our priorities. The Government of Azerbaijan is committed to bringing national legislation on human rights to parin conformity with international and European standards;, to develop a multiparty system, political pluralism, freedom of speech and belief, respect for the rights of persons belonging to national minorities, and the equality of everyone before the law. The Government is to elaborate and implement the State program on human rights protection, which would and improvement of human rights observance mechanisms, the condition of detention facilities improvement of detention conditions offor convicts, and the management of penitentiary institutions, subject to the Ministry of Justice.

I would like to take this opportunity to say few words about our bilateral relations with the United States. Today, relations between Azerbaijan and the U.S.A. are constantly developing and rather dynamic. There is a real basis for this foundation for this, taking into account the strong involvement of large American companies in the development of energy resources within Azerbaijan. The share of American FDI in total foreign investment in Azerbaijan is highest. The United StatesSA has also has a growing geo-strategic interest in the region. For us aIt is our priority is to further develop develop the legislative basis of thefor bilateral relations so that it will serve for to expansiond of our mutual cooperation.

At the same time, I can’t but mention the negative effect for the development of our relations caused bythat Section 907 of the Freedom Support Act has had on our relations. Passed in 1992, due to the activity of Armenian lobby on the Capitol Hill, this piece of legislation remainscontinues to be an extremely unjust and unfair restriction imposed forupon Azerbaijan, depriving the country it ofof the opportunity to receive the government assistance from the United StatesS. This amendment also limits the U.S. policy in Azerbaijan. We do believe that the sense of justice and wisdom will lead our nations to the moment of truth., when US will start providing full-scale assistance in all fields to Azerbaijan – a country, which is the As a key strategic partner of the U.S. in the region of the South Caucasus and the Caspian basin, Azerbaijan awaits the moment when the United States will provided full-scale assistance to Azerbaijan in all fields, which will improve bilateral relations.

These are some of our priorities. However, that does not mean that other issues have less importance. Azerbaijani diplomacy looks forward with optimism, aiming at the achievement of practical results in the development of ing bilateral and multilateral relations with its traditional and prospective partners.