Excellencies,

Ladies and Gentlemen,

I have been asked to speak on a very interesting and challenging topic, covering both dimensions of security, economic, military, and other cooperation among the members of GUUAM and more specific issues, including energy security and the problems of energy transportation, including pipeline security.

Allow me to start with a general observation – periodically resurfacing rumors about GUUAM’s demise have been greatly exaggerated. This CFE-born group of four (at the moment of its establishment) was a product of close cooperation among delegations of Azerbaijan, Georgia, Moldova and Ukraine, which started during the Flank Agreement Talks in Vienna. In 1997 at the Strasbourg Council of Europe Summit the Presidents of the four nations have made a precise definition of the group’s then- objectives, which remain unchanged now, of how important it is to develop the interaction “for the sake of a stable and secure Europe guided by the principles of respect for the sovereignty, territorial integrity, inviolability of state frontiers, mutual respect, cooperation, democracy, supremacy of law and respect for human rights”.

In 1999, at the NATO-50 Summit in Washington Uzbekistan joined the group. It is at this time that GUUAM’s nature has already started being perceived by the international community as something wider than merely a group of nations sharing similar agenda of arms control regime. It has become an important structure for enhancing regional economic cooperation through the development of Europe-Caucasus-Asia transportation corridor, and a forum for discussion on various levels of existing security problems, promoting conflict resolution and elimination of other risks and threats.

In the year 2000 this development continued further, turning GUUAM into a very effective forum for interaction, at least from Azerbaijani perspective. Along with on-going regular meetings of the Committee of National Coordinators, a number of other significant and high-level events took place. In May of 2000 a seminar was held on GUUAM in the US Senate under the aegis of the Foreign Relations European Affairs chairman Gordon Smith, concentrating on the approach of the participating countries to the future of this group. GUUAM’s contribution into counter-proliferation of weapons of mass destruction and sensitive technologies was specifically emphasized. In yet another proof of GUUAM’s growing visibility on the Capitol Hill the US Senate passed the Defense and Security Assistance Act of 2000. This legislation contains one whole section dealing with GUUAM and providing $ 8,5 mil in the FY 2001 and $ 37 mil in the FY 2002. I highly appreciate efforts of the many senators who fought for this bill and also for providing better assistance to GUUAM. At the same time, I have to mention that none of the $ 8,5 mil has been appropriated up to now. I can only hope that in the coming year the situation will change for the better.

In Vienna on November 26 Ministers of Foreign Affairs of all five members have adopted the Joint Communique, approving the Perspective Plan of Development of GUUAM for 2000-2001, discussing possibility of establishment of the Public Consultative Council, draft Agreement on the free trade zone, etc. A meeting of the Ministers with the US Secretary of State took place there too, re-iterating the ever-growing American interest to GUUAM.

The US universities have started showing considerable academic interest to GUUAM, covering multi-faceted interaction within the group. A number of events, including the GUUAM workshop at Stanford, and discussions at the Washington University in St.Louis, also took place in 2000. Current Harvard initiative on GUUAM, pursued within the framework of the Black Sea Security program, is an excellent example and an indicator of American public’s growing attention.

GUUAM shares international community’s goals and tasks of peaceful settlement of conflicts and crises on the basis of respect for sovereignty, territorial integrity and inviolability of the internationally recognized borders of states, combating ethnic intolerance, separatism, extremism and terrorism in all their manifestations, illegal arms deliveries, organized crime, illicit drug and human trafficking as well as other illegal activities that flourish in the conflict zones.

If asked which areas of cooperation within GUUAM are the most important from Azerbaijan’s perspective, I’d outline the following top priorities:

• First, political interaction within the framework of integration into Euro-Atlantic and European structures of security and cooperation. It includes establishment of interaction with the UN, OSCE, European Union and other international organizations, as well as of dialogue with NATO based on mutual interest. It is fully acknowledged by the GUUAM countries that developing safe and reliable infrastructure which comprises well-trained and well-equipped forces and institutions will undoubtedly make a considerable contribution to the European and world security architecture. In this regard special efforts are being made to strengthen regimes of non-proliferation of nuclear and other weapons of mass destruction, as well as of sensitive technologies, preventing arms transfer to conflict zones and drug-trafficking.

• Second, economic cooperation. First steps were made on the path towards establishing the Europe-South Caucasus-Central Asia transit corridor, in which the GUUAM countries would play the very important role because of their geostrategic location.

Cooperation in energy sector includes working together on several major goals, which comprise minimizing effects of external financial crises in the GUUAM countries, supporting each other against growing challenges to regional security and stability, accelerating the development of Caspian oil deposits and constructing multiple pipelines to the international markets. Main Export Pipeline, which will lead from Baku in Azerbaijan through Tbilisi, Georgia, and over to the Turkish Mediterranean port of Ceyhan, is in the finishing stages of the basic engineering and detailed engineering study will start this fall. This pipeline will become a back-bone for the whole transportation corridor. To my mind, it is high time for all of us, including our Western partners, to think about the pipeline security issues.

Recent (May 2-5, 2001) Seminar on cooperation among the Chambers of Commerce of GUUAM member-states, held in Baku and attended also by representatives of Czech Republic, Slovakia, Latvia, Bulgaria, Romania, and Kazakhstan, became another vivid demonstration of the commonality of economic interests, as confirmed during the meeting of the participants with President Heydar Aliyev of Azerbaijan. The seminar also re-affirmed that these interests do not lie solely in the field of energy. A number of recommendations were adopted by the participants, including establishing Coordination Committee of the Chambers of Commerce of GUUAM, creating an inter-parliamentary group for economic cooperation, simplification of customs procedures and formalities, harmonization of customs-related legislation, support for creating a free-trade zone, etc. Several new entities were recommended for establishing, too: Congress of Entrepreneurs’ Unions of GUUAM; Joint Bank of GUUAM; also joint transportation, insurance, leasing, tourist, and business structures.

• And, finally, third. Cooperation in opposing ethnic and religious intolerance. The GUUAM states believe that both religious extremism and ethnic terrorism are among main reasons of numerous regional conflicts. And we in Azerbaijan, with 20% of our territory under foreign military occupation and approximately 1 mil refugees and displaced, attach special importance to peaceful settlement of regional conflicts based on respect for sovereignty, territorial integrity and inviolability of the frontiers of all states. This is, as mentioned earlier, one of the key GUUAM objectives.

My country considers that by acquiring additional experience, as the one gained through participating in the peacekeeping operations in Kosovo, GUUAM countries will not only make a contribution into settling regional conflicts, but will also further strengthen their own stabilizing role on the international arena.

In the context of all the aforementioned tasks NATO-GUUAM cooperation, activities in the framework of PfP programs and relations with the United States are of significant importance to my country. Azerbaijan views the potential of these contacts as one of the crucial elements in further promoting GUUAM’s role as that of a force for peace in Eurasia.

In the recent year cooperation and mutual support of the five countries at the international forums became an even closer one, with the GUUAM members not only coordinating their positions, but as well undertaking joint initiatives, the inter-cultural dialogue and common statement on terrorism being two most explicit examples at the United Nations.

We also attach great importance to institutionalizing GUUAM by further promoting existing consultations mechanism on the level of Heads of States, foreign and defense ministers, as well as among national coordinators for GUUAM. Recent May 17-18, 2001, meeting of the coordinators in Kiev became a step towards upcoming summit of Presidents in Yalta, to take place next week. We expect that this summit will bring the efforts to a fruitful conclusion.

On numerous occasions we have witnessed that many in Moscow view GUUAM as something either very fragile and on the verge of dissolving, or a menacing threat to the very foundations of Russia’s policy. All that only because of perceived “anti-Russian” nature of this group. As recently stated by Nezavisimaya Gazeta, even the most innocent efforts aimed at coordinating policies of the former Soviet republics are sometimes viewed as dangerous and unacceptable by politicians in Moscow, if Russia is not part of this process.

We see GUUAM as a structure that should bring security and stability to our part of post-Soviet space, by constructively engaging former Soviet republics into relations of cooperation, replacing rivalry and animosity. This example of cooperation in a region known for its deep political, as well as other divisions, sets a very positive precedent of inclusion, not exclusion, in a new age of globalization. Interest shown by other nations (namely, Bulgaria and Romania) to interacting closely with GUUAM and maybe even going further in their relations with this group than just cooperation, has shown the potential for future development.

In conclusion I would like to express my utmost gratitude to the organizers, especially Ms. Huntington and Mr. Konoplyov, for their efforts to make this event happen.

Thank you all for your interest to GUUAM, I hope this interest will grow just as this group’s role and importance grow, too.