May I begin by warmly congratulating you, Sir, on your election to the presidency of the forty-ninth session of the United Nations General Assembly. I would also like to express my appreciation to your predecessor, Ambassador Samuel Insanally, and to thank him for his contribution to accomplishing the tasks of the last session. Further, I wish to express our gratitude to the Secretary-General, Mr. Boutros Boutros-Ghali, for the vision with which he has guided the Organization and for his tireless efforts to ensure the maintenance of international peace and security. The collapse of the old order and the emergence of new democracies in Central and Eastern Europe and, soon after, in the former Soviet Union have presented the world with a major challenge. In a period of tremendous change, many difficulties and conflicts have arisen. Some of these difficulties come as immediate by-products of rapid and haphazard transformations, while others are surfacing for the first time after decades of inadequate stop-gap measures. Further, if the reform programmes have so far failed to yield all the benefits expected, this is also due to an under-estimation of the differences in the initial conditions of the countries in transition. The pace and comprehensiveness of economic reforms will vary from country to country. However, the reform process will inevitably be lengthy, as it involves wholesale changes in price mechanisms, in the concept of property, in industrial structures and in legal, commercial and financial institutions, as well as the creation of social safety nets for the most vulnerable segments of the population, whose situation will be worsened by the high cost of the reforms. As with all the former Soviet Republics, Armenia’s economy has been badly strained by the changes which followed the disintegration of the Soviet Union and the difficult transition to a market economy. It is further crippled by its over-reliance on trade with the former Soviet Republics; the blockade of transportation routes imposed by neighbouring Azerbaijan; an embargo by Turkey; and the damage inflicted by the disastrous earthquake in 1988. Other external conditions, such as the disruption of transport due to the difficulties faced by Georgia, have exacerbated the situation, contributing to the decline in Armenia’s industrial productivity. The legacy of the Soviet period, with its inefficiencies and excessive horizontal integration, has worsened the effects of the blockade. Despite these difficulties, the Armenian Government has begun implementing significant structural reforms to create a healthy market economy, beginning with the privatization process launched soon after the Armenian National Movement came to power in 1990. Indeed, the commitment to transform the centrally planned economy into a market economy stems from the philosophy of the democratic movement in Armenia and is seen as an integral part of the transition to a democratic State. In turn, a free market economy will flourish in a stable democracy, able to promote and underpin economic development. Armenia today is a country with more than 30 registered political parties. It has proclaimed freedom of the press, freedom of conscience and freedom of religion, and it has laws guaranteeing civil and political rights. Three free elections have already been held in Armenia: parliamentary and presidential elections and a referendum on independence. The upcoming referendum on the Constitution and the elections of the National Assembly and the President of the Republic will reaffirm the establishment of a democratic tradition. Democracy is fundamental to the process of economic transformation, which can be divided into three phases, more or less typical for all countries in transition: institutional reforms; long-term investments and changes of technological structures; and integration into international markets. It is imperative, however, to set priorities and to identify the most pressing issues of the moment. In my opinion, Armenia is at the end of the first phase, which includes the creation of a legal framework for economic reform, within which private economic activity can take place, a framework ensuring that contracts are enforced and that private property is protected; freeing of prices; privatization; adoption of a national currency; financial and budgetary stabilization; and improvement in the balance of payments. We have already accomplished 80 per cent of this phase. Armenia has distinguished itself as the first among the former Soviet Republics to privatize the ownership of agricultural land and livestock production. The privatization of small and medium businesses as well as large enterprises is well under way. In late 1993, with the collapse of the rouble zone, Armenia faced a monetary crisis. The uncontrollable flow of old Soviet roubles into Armenia and Armenia’s subsequent inability to control monetary policy on its own territory forced the Government in November 1993 prematurely to introduce a national currency, the dram. The Government is currently implementing a programme based on controlling and lowering the inflation rate, enforcing a strict budget, controlling fiscal expenditures and targeting assistance to the most vulnerable groups. Basic reforms have been undertaken in the banking sector, the first of which was to break down the mono- bank system of central planning into a two-tiered system comprising a central bank and a group of commercial banks. In Armenia, as in all the emerging democracies, there is no historical precedent for the economic transition. It requires lasting commitment and patience as well as the substantial support of the international community. Of course neither short- and medium-term adjustment programmes nor long-term development strategies can hope to succeed fully without sustained growth in the world economy and favourable external conditions. We recognize that there is no single model of transition to be prescribed for all countries or, even more narrowly, for all post-communist societies as a whole. To ensure success for United Nations efforts in the countries in transition the Organization must tailor its involvement to each country’s resources and procedures, giving priority to programmes rather than to projects. That approach essentially boils down to the definition of key objectives for each programme that will reflect the priorities of the national Government and the organization of assistance around the achievement of those goals, which can be accomplished by strengthening the role of the Resident Coordinator system. Armenia appreciates the Secretary-General’s Agenda for Development as an important and necessary complement to "An Agenda for Peace". It is a comprehensive and thoughtful reflection upon the various dimensions of development and the role of the United Nations in that connection. At the recently held world gatherings on development there was broad agreement that the Agenda should be sustained by an action-oriented framework and practical proposals aimed at resolving existing imbalances in the various development areas. We look forward to the further elaboration of the Agenda 2 for Development by the Secretary-General through a number of concrete proposals with regard to the reform of both the United Nations system and the intergovernmental consultative machinery for development, as well as specific recommendations for greater coordination within the United Nations as a whole, including the Bretton Woods institutions and the proposed World Trade Organization. Such an elaboration is needed if the Agenda is to lead to a global partnership for development. Armenia looks forward to participating in and contributing to the World Summit for Social Development in Copenhagen. The World Summit, to be held in the United Nations fiftieth anniversary year, is a landmark event and will build upon the commitments of a series of United Nations global gatherings, including the 1990 World Summit for Children, the 1992 United Nations Conference on Environment and Development in Rio de Janeiro and the 1994 International Conference on Population and Development in Cairo, and it will be followed by the Fourth World Conference on Women in Beijing in 1995. These are all key events in the process of international consensus-building. Development and human rights are interrelated and mutually reinforcing. There can be no genuine long-term development without respect for the full spectrum of the rights of individuals. The Vienna Conference on Human Rights held last year deepened the understanding of the significance of human rights for stability, freedom, peace, progress and justice. The establishment of the post of United Nations High Commissioner for Human Rights was vital to a more effective implementation of the principles of human rights. Member States must continue to work to increase the effectiveness of existing United Nations human-rights mechanisms and to support the High Commissioner in the fulfilment of his mandate. Armenia considers self-determination in its multitude of manifestations to be an inalienable human right. Armenia’s position on the Nagorny Karabakh conflict has been clear and consistent from the start. Armenia has no territorial claims against Azerbaijan. The conflict is between the people of Nagorny Karabakh, who are striving for self-determination, and the Azerbaijani Government, which is refusing to address the rights of the people of Nagorny Karabakh. Armenia provides moral, diplomatic and humanitarian assistance to the people of Nagorny Karabakh, and it cannot accept a military solution which can only mean the genocide or deportation of the population of Nagorny Karabakh. While the Nagorny Karabakh conflict has gone through periods of both intense fighting and relative calm since I spoke here two years ago, there has never before been a period in the five-year history of the conflict when a cease-fire has taken hold for so long. I am pleased to inform the Assembly today that the cease-fire of 12 May 1994, which was mediated by the Russian Federation, is in general being maintained. But what is more gratifying and encouraging is that, through direct and immediate contacts between the parties to the conflict, the de facto 12 May cease-fire was formalized on 27 July 1994, and on 28 August 1994 the parties reaffirmed their commitment to the cease-fire until such time as a political document has been signed. Armenia congratulates the main parties to the conflict for their commitment to maintain the cease-fire and to engage in direct dialogue. Armenia views this as an important confidence-building measure, as a major step towards the consolidation of the cease-fire and as a sign of a strong commitment to the successful conclusion of the current negotiations, which in turn will make possible the solution of the problem at the Minsk Conference of the Conference on Security and Cooperation in Europe. Clearly, the conflict has entered a new phase, in which the parties have demonstrated their desire for peace. Our new challenge, and the priority for Armenia, is the consolidation of the cease-fire and the establishment of peace. There is a historic opportunity today to end the conflict. But the cause of peace requires the active, unified support of the international community to consolidate the cease-fire. The cumulative impact of the distrust of the past five years, on the one hand, and the lack of international measures to support consolidation, on the other hand, may increase the current uncertainty and threaten the fragile cease-fire. There is no doubt that, beyond the cessation of hostilities, a lasting peace will mostly depend on the ability of the main parties to the conflict and of the international community to develop innovative and internationally approved mechanisms for its establishment and maintenance. The primary concern for Armenia has been, and remains, the security of the people of Nagorny Karabakh. Both Armenia and Nagorny Karabakh have repeatedly expressed their readiness to comply with the relevant Security Council resolutions. A lasting peace can be 3 achieved only by ensuring the irreversibility of the peace process through the deployment of international security forces between Azerbaijan and Nagorny Karabakh until such time as a negotiated solution to the problem of Nagorny Karabakh has been reached, with the full participation of Nagorny Karabakh at the CSCE Minsk Conference. The proliferation of weapons of mass destruction is in direct contradiction of the peacemaking efforts of the United Nations. Armenia considers that only the unconditional and indefinite extension of the Nuclear Non-Proliferation Treaty will ensure that the Treaty serves its purpose. It is encouraging that negotiations on a comprehensive nuclear-test-ban treaty have made important progress over the past year, and we hope that a text satisfactory to all can be agreed on soon. We support the integration of multilateral disarmament with United Nations activities relat to preventive diplomacy, peacemaking, peace-keeping and post-conflict peace-building. The debate in the General Assembly Working Group on the Question of Equitable Representation on and Increase in the Membership of the Security Council has been very useful. Virtually all States Members of the United Nations favour an increase in the membership of the Security Council to reflect the radical changes in the world and the increase in the Organization’s overall membership. However, an increase in membership should not diminish the Council’s efficiency. It is necessary here to note that the Council has taken a number of constructive steps to improve its transparency and its communication with non-members. The Security Council should also be better able to respond to emerging threats and disputes before they escalate into armed conflict. With improved coordination of United Nations organizations and agencies devoted to economic and social progress, the Economic and Social Council could better assist the Security Council and advise it of potential emergencies arising out of economic and social conditions. Therefore, Armenia fully supports the call for restructuring of the Economic and Social Council and for the possible establishment of an economic security council. Improving the administrative performance of the United Nations is another priority. Armenia welcomes the current initiatives to streamline the Organization’s administrative and management structures and procedures to meet the demands now being made of the United Nations. In particular, we supported the United States initiative, and we are pleased that the General Assembly has created the Office of Internal Oversight Services. Let me return for a moment to the theme I began with. In this period of unprecedented change, many hardships - both expected and unforeseen - have arisen. The present era, full of challenge and hope, gives us new faith in the United Nations as the best and most appropriate forum for integrating all the interests of the various peoples of the world, which are too fragmented today. Universal harmony can be established only when discords are peacefully resolved and full cooperation between nations is achieved. The United Nations, strengthened by the noble principles and objectives enshrined in its Charter, and facing new responsibilities and tasks, can and must lead the way to a better organized and more harmonious world. Let me conclude by wishing the General Assembly every success in the demanding work it faces during this session.