Dear ladies and gentlemen!

Dear guests!

Dear compatriots!

I extend to all of you my cordial congratulations on the 2nd Congress of the World Azerbaijanis, and my best wishes for your good health and happiness.

A congress of the world Azerbaijanis is a great, historical event. A very fine documentary has just been shown here; and we have taken the chance to remember again those wonderful moments. It was the initiative of the national leader of our people Heydar Aliyev that allowed us to hold five years ago the 1st congress of the world Azerbaijanis. The congress played an exceptional role in the modern history of Azerbaijan. Discussions and opinion exchange held during it have strengthened ties between Azerbaijanis living in different countries of the world.

It was following that congress that Heydar Aliyev ordered to establish the State Committee on Working with Azerbaijanis Living in Foreign Countries. The Committee has been successfully working on forming Azerbaijani Diaspora. In 2002, the Law on state policy regarding the Azerbaijanis living abroad was adopted, thereby, constituting the legal basis for their activity. All of those measures, all of those steps now yield fruits. Our compatriots abroad become organized, and get more actively involved in their countries’ lives. This, of course, promotes strengthening their positions, and, therefore, those of the independent Republic of Azerbaijan, as well as increasing the country’s international importance.

We are very happy that Azerbaijanis now play an important role in various spheres of life in their countries, and, I can say, already take rightful place in their societies. There is every opportunity for that. The independent Republic of Azerbaijan is building very fruitful business relations with every country. And, of course, the Azerbaijanis abroad can feel it in their everyday lives. During my numerous foreign trips, I always had meetings and talks with representatives of the Azerbaijani Diaspora. I always said, and want to repeat today: the stronger the sate of Azerbaijan the stronger the Azerbaijanis living abroad. At the same time, the Azerbaijanis living abroad are a support to us. We have been living independently for 15 years, but, unfortunately, there are still many countries, which are not informed enough about Azerbaijan. Keeping the global community informed about realities of Azerbaijan, its problems, and accomplishments would make a significant contribution to our common cause.

I am sure that the already existing positive tendency will be strengthened after this congress. The Azerbaijanis will be better organized, will strengthen their place in their countries, and thereby, making the 50-million people of Azerbaijan live better, and reach its goals.

I have noted that the initiative to bring together the Azerbaijanis of the world was put forward by the great leader Heydar Aliyev. Heydar Aliyev’s whole life and activities was to serve the people of Azerbaijan. At all times, and regardless of the political system, our people’s leader served the development of Azerbaijan. In 1970s, Azerbaijan existed as one of the Soviet Union’s republic. His contribution to development of Azerbaijan was great in those years too. In 1969, Heydar Aliyev was elected head of Azerbaijan. Azerbaijan was the most backward among other soviet republics. In the end of his tenure in 1982, Azerbaijan was one of the advanced ones. It is the powerful economic potential created in Azerbaijan during those years that today serves the independent state of Azerbaijan. Despite Azerbaijan was not then independent, it was the only place where the signs of independence were seen in many spheres of life. The steps taken in various fields as if were oriented to the future; as if Heydar Aliyev foresaw that some day Azerbaijan will become independent, and will need powerful economic potential and army. His contributions to creation of economic and industrial potential and personnel training in Azerbaijan were exceptional.

However, after Azerbaijan regained its independence, the country faced great problems again. When the Soviet Union collapsed in 1991, situation in Azerbaijan was the worst among other countries facing economic crisis, political crisis, military crisis, occupation of its lands as a result of Armenia’s aggression and civil confrontation. Azerbaijan’s statehood as a whole was questioned.

The socio-political situation in Azerbaijan normalized, stabilized after Heydar Aliyev returned, upon people’s request, to power, and was elected President in 1993. The problems and threats the country faced were eliminated, and the process of dynamic development started.

The economic reforms commenced in Azerbaijan are being implemented quite rapidly; today, Azerbaijan leads not only the former Soviet republics but also the world in economic growth rate. All this again confirms that Heydar Aliyev - at all times and regardless of the political system - worthily served the people of Azerbaijan. He has exceptional merits in achieving eternity, irreversibility of Azerbaijan’s independence, and enhancing its prestige in both the region and the whole world. For the time being, this policy is continued. Heydar Aliyev is not with us today, but his policy is alive, and independent Azerbaijan he created is alive and getting stronger.

Independence - a great property. Sometime they say Azerbaijan’s property is its natural resources, geographical location and positions in the region. The greatest property of Azerbaijan is its independence. For many years and even ages, we had been deprived of the independence. For many years, Azerbaijan had been a Russia’s colony, and then the republic of the Soviet Union. Today, we have an independent state; Azerbaijan is member of the global community. We need to strengthen this independence.

I repeatedly said, and today want to repeat: having independence is not only having state attributes; symbols of independence. Independence implies that state and leadership of a country is able to pursue an independent policy, which fully meets interests of their people. Today, we can see it, and its basis was laid in the mid 1990s; Azerbaijan managed to use its potential. Our enhancing prestige, our strength allows Azerbaijan to pursue a fully independent policy. This policy is aimed at defending national interests of the Azerbaijani people, and strengthening unity of the world Azerbaijanis.

The Heydar Aliyev’s policy is continued in Azerbaijan in all fields. Our foreign policy is quite active and successful. Azerbaijan takes very important place in international organizations; our positions are getting stronger. Over the last years, new fair decisions have been made in our favor in various international organizations; in particular, with regard to the Armenia-Azerbaijan conflict over Nagorno-Karabakh. We have managed to safeguard friendly relations with neighboring countries; we are strengthening these ties, and this is very important for our development. We are living in this region, and peace and security in the region, development of regional cooperation meet our national interests.

The steps taken by Azerbaijan bring positive results in all fields, including the foreign policy. I can say that over the last two years, we have decided on opening 21 embassies of Azerbaijan. Azerbaijan will have 46 embassies functioning in various countries, 21 of which will be open in accordance with the decisions of the last two years. Some of them are already open and functioning, others will be open soon. What does it shows? It shows that Azerbaijan will pursue more deliberate and comprehensive foreign policy because - you probably saw that, and we also are aware of that - the global community is not informed enough of and realizes the Azerbaijan’s realities. There is a lack of information; in some cases we face information blockade as the Armenian lobby is acting against us trying to blacken Azerbaijan in every possible way, slant against the processes taking place in the country, and thereby to isolate it. This is a fact. At the same time, there is often lack of information. That’s why opening embassies, active foreign policy of Azerbaijan, strengthening and enhancing prestige of Diasporas help present the country with its realities. This is what we need. We need that the processes taking place in Azerbaijan be open to the world. I have paid a number of foreign visits for the last two years and half. I had a lot of meetings. I can see that the guest come, for the first time, to Azerbaijan in one mood, but after they see the realities of the country, local atmosphere, general development of Azerbaijan, hospitality, civil accord and tolerance prevailing here, they leave the country in absolutely different mood. So, the activity of the Diaspora must contribute to this cause that, in its turn, requires the Diaspora’s better consolidation. In other word, we are pursuing our foreign policy, and it requires your more active involvement. I can see that over the last years, this work has been carried out in better coordination. Activities of the Ministry of Foreign Affairs, the State Committee on Working with Azerbaijanis living in foreign countries, Azerbaijani Diasporas as well as conferences, symposiums and other Azerbaijan-related events held in various countries are what promote strengthening our positions and providing true information about Azerbaijan to the international community.

Over the last years, Azerbaijan has experienced substantial economic progress, as well. Our country has achieved great success in this field. Our economic growth rate is the world’s highest. Last year, the economic growth rate exceeded 26 percent, that the world’s highest indicator. In 2005, industr5ial production in Azerbaijan increased more that 33 percent. It is also the world’s highest index. Last year, population’s cash income increased 27 percent. Over the two years and half, 340 jobs have been created in Azerbaijan. It significantly promotes unemployment elimination. Two years ago, poverty rate was 49 percent; it down to 29 percent by the end of the last year. This is, anyway, a high figure. I said: why do the Azerbaijani citizens live in poverty? Having been elected President I set the task: not a single poor man should remain in Azerbaijan. We will do reach this goal. I am sure the work to be done through 2006 will allow us to achieve drastic fall of persons living in poverty.

The program of regional development is being intensively implemented in Azerbaijan. Baku, our capital, is being developed quite rapidly. High growth rate can be observed in provinces, as well: new power plants, gas and water pipelines and roads are being constructed; the whole economic and industrial infrastructure is being renewed. In addition, mach work has been done in humanitarian sphere. Today, up-to-date hospitals are being built in all the regions. In 2005 alone, over 300 new schools, modern sport complexes, swimming pools and out-patients' clinics were erected. All this demonstrates the process of development in Azerbaijan.

We need to be strong; we need to create a rich state. To this end, we should first achieve strengthening of our economic potential. We are building our work on the base of the deliberate concept. We draw up programs, and then start their implementation. Two important programs related to development of Baku city have just been adopted, and their implementation is about to start.

In a word, we will do ensure sustainable economic development in Azerbaijan, and our country will get stronger very year, and our budget will grow. I would like to let you know that our 2005 budget exceeded that of 2004 by 70 percent; in 2006 it increased 70-80 percent comparing the 2005’s. The growing budget spending means implementation of investment projects in Azerbaijan, improvement of people’s welfare, regular increase in salaries and pensions. The minimal salary must meet minimal needs of a citizen. We will do achieve this; that day is not far off.

In a word, strengthening economic potential will promote realization of all of our plans. But we have many plans. We need to achieve all-round development of our country. On the one hand, regions, towns and villages must be developed, on the other one, the whole infrastructure must meet modern requirements. We have a lot of related ideas and plans.

As you know, the Heydar Aliyev’s oil strategy has been implemented in Azerbaijan for over ten years. Oil is great wealth, natural resource. But it serves people only if it is extracted from sea depths and delivered to the world markets. This was the essence of the oil strategy: creation of the favorable investment environment in Azerbaijan, attraction of foreign investments, and involvement of large oil companies. Today, all this takes place. Oil production in Azerbaijan increases every year. The Oil Fund, a structure transparent and open to the public has been created. Every citizen of Azerbaijan is aware of how much of assets have been collected in the Oil Fund as this information is made public in a regular manner. We certainly need this transparency and publicity. Everybody must know how much the country possess, and what it is spent on. There is a need for rigid public control. Especially now as larger revenues will soon begin to come to Azerbaijan.

The oil strategy of Azerbaijan is being implemented successfully: this year the oil pipeline Baku-Tbilisi-Ceyhan and gas pipeline Baku-Tbilisi-Erzurum will be put into operation. Our energy carriers will be delivered to the world and European market. First of all, we will receive great economic benefit from that. It will allow us to substantially develop and modernize our country. On the other hand, Azerbaijan will undoubtedly strengthen its position in the region, in the continent, and in the world because the Azerbaijan thereby turns into a very important country to European and world consumers. It increases our strength, our importance and enhances our prestige; all this meets our national interests.

The giant projects finishing this year will have an extremely positive impact on the processes taking place in the region, because the tendencies of the regional development are already evident. Azerbaijan is playing rather active role in the context of the regional development as participant of all and initiator of many regional projects. Not a single political, energy, economic or transport project can be realized in the region without our involvement.

Azerbaijan is a bridge connecting Asia to Europe. For the time being we are strengthening our transport infrastructure. New airports, new highways are being constructed in various cities. Large investments are made in our sea transport, railways. In a word, the transport sector will play a very important role in the future. In this context, one of our most important tasks today is the project to connect Turkey and Azerbaijan by railway - to put into operation the Baku-Tbilisi-Kars railway; and we will do so. In this case, Azerbaijan is connected to Turkey by the railway, and all cargo transportations use this route. It is also obvious that Armenia, the country-aggressor, which occupied our lands, unleashed the war against us, will left out of all these projects.

We cannot allow the country, which occupied our lands, to be involved in regional cooperation with us. We isolated Armenia from all the regional projects as none of the international projects can be realized without our involvement.

I want to repeat that these international projects not only meet interests of Azerbaijan and its neighbors but also convert - in the broad sense of the word - to ones of great importance for the whole world. The role of Azerbaijan will be gradually increased. We want Azerbaijan to become a powerful state, for the people of Azerbaijan to live in peace and prosperity. We want good relations with all of our neighbors; we want sustainable stability and cooperation. This is what our policy is aimed at. We see the accomplishments in all fields; I am sure there will be more ones in the future.

Our budget grows every year. Azerbaijan has fully based its economy on market principles, and the share of private sector in GDP makes about 75%. If to take into account that oil and gas industry - which constitutes the largest part of our GDP - is the state monopoly, it is very high figure. It shows that economic in Azerbaijan became liberal, and entrepreneurship and private sector is developing quite rapidly. So, the principles of the market economy are already putting down roots.

Great attention is also paid to social problems. If to look at the structure of our budget, one can make sure that the Azerbaijan’s budget is socially oriented. What does it mean? It means that the greater part of the budget is socially oriented. Salaries, pensions, social payments as well as those allocated for humanitarian sphere - education, healthcare etc. - are gradually increased. Nobody can deny the importance of the market economy. We all are well aware that there are no longer contradictions between socialist and capitalist systems. Only the principles of market economy can ensure long-term and successful development of a country. We have to pay constant attention to the social sector. We are living for the people; our goal is to serve the people. This is how I see my task. It is very important task, great responsibility before the people. I bear responsibility before the people, and I must do my best for the people of Azerbaijan, every citizen of the country not to suffer hardship, and not to face problems in their everyday life.

In short, the social sphere is one of priorities of our work, and more investments will be made in this field henceforth.

The time when Azerbaijan depended solely on foreign investments left behind. But we are still very interested in and have to strive for attracting as much foreign investments as possible. I can give the following figures: Azerbaijan ranks first in the region in per capita foreign investments. It is the result of our liberal policy, favorable investment environment and investments protection. Now we have our own possibilities; we should rely on our own strength. The 15-year history of independence gave us many lessons; so, to make our country stronger, we should largely rely on ourselves. It is the only way for Azerbaijan to become a rich and powerful state.

Of course, the work in social sphere will be continued. We pay great attention to those having the worst living conditions - the refugees and internally displaced persons suffered form the Armenian aggression. New settlements and houses are built for them. Recently I have attended the opening a new settlement in Agdam region. Two years ago, I stated: not a single camp will remain in Azerbaijan, and much work has been done in this field. It is most likely that the remaining camps will be removed next year; they will be replaced by new settlements with modern houses, hospitals, kindergartens, schools, roads, water and power supply, in other words, with full infrastructure. It is our task, and we’ll certainly cope with it.

However, these are temporary difficulties: as soon as our lands are released from the occupation, we will mount new towns there; everything has been ruined in the occupied territories. The Armenian vandals destroyed all houses, schools, mosques, cemeteries and historical monuments. This is true barbarism. After liberation of our lands, we will restore those regions. Our economic potential will allow us to do that.

As you know the Armenia-Azerbaijan conflict has remained unresolved for many years. Indeed, negotiations have been held; since reaching the ceasefire, there have been several phases of the negotiations. There were moments when the sides’ positions were close, but the conflict remains unresolved anyway. We have been showing our commitment to peaceful resolution of the problem for 12 years. It is 12 years since the ceasefire regime between Azerbaijan and Azerbaijan existed. We have been participating in the negotiations with the hope for some positive result. How much longer? This process cannon be endless. People’s and authorities’ patience is coming to an end. However, we continue to be committed to peace process, and our participation in the negotiations is an evidence of this. We want this problem to be solved in peaceful way, not military; this is what all our efforts and steps are aimed at. But when we see the Armenian side taking non-constructive stance, showing insincere behavior during the negotiations, and trying to mislead the international community, then we have nothing left but other way. How much longer will we drag out the process? I sated more than once: we will continue the dialog to the uttermost, as long as we feel there is a small chance to come to an agreement. If, however, we make sure that the process is nothing but imitation of efforts, Azerbaijan will pull out of it. Nevertheless, my stance is that the conflict can be solved only and only on the based of international legal norms.

Historically, Nagorny Karabakh has always been, and today is the land of Azerbaijan. The Armenians were moved there by the mid 19th century. This fact was confirmed by the monument erected in 1978 in Nagorny Karabakh to mark the anniversary of Armenians’ moving here. Later, the Armenians destroyed the monument. The Armenians came to our lands as guests. Having reached the majority of population, they began to reveal their separatist ambitions. Militant separatism and aggressive policy of Armenian have resulted in occupation of the Azerbaijani lands.

The norm of international law must be equal for all. Nobody can have exceptional advantage. From the standpoint of the international law, the territorial integrity of Azerbaijan must be restored. The territorial integrity of our country has been recognized by the whole world, the United Nations and leading international structures. So, the occupation forces must be withdrawn from the occupied lands, and the citizen of Azerbaijan must return to their homes including in Nagorny Karabakh. Only after this, normal relations between Azerbaijan and Armenia can be reestablished. Only under these terms we can reach a peace treaty. Never, neither today nor tomorrow, neither in 10 nor 100 years we will agree on separation of Nagorny Karabakh from Azerbaijan.

We are a suffered side. Armenia has carried out a policy of ethnic cleansing against Azerbaijanis, and the time will come when it will have to answer to the international community. We give them a chance: if they accept the constructive proposals, new frames advanced by the Mink group co-chairs, and demonstrate a genuine intention to take part in the Prague process, then security and peace for the Armenians in Nagorny Karabakh will be guaranteed.

The world has a positive experience of autonomies for ethnic minorities. The similar regions exist even in some European countries. Autonomy does not allow you to be engaged in separatism, to separate the land you live in form the country. In a number of countries, the autonomous regions have their own rights and norms, and regulating mechanisms. But autonomy and separatism are absolutely different things. In a word, the existing positive experience, of course, must be applied to the conflict.

I state once again: this is our position of principle, and we will never give it up. It is also truth that the ceasefire regime has been maintained for 12 years, but solution to the conflict has not yet been found. What should we do then? Consultations are already underway: if we see Armenia intend to violate the peace process, then Azerbaijan will have to review its participation in it.

In this connection, I would stress that along with economic development, we also continue to strengthen the military power. Great attention has been paid to this field over the last years. I can advise that Azerbaijan’s military budget is growing steadily. Thus, in 2005 it grew 70 percent comparing 2004; the 2006 budget grew 100 percent, and will continue to grow in 2007. For the time being, military spending is $600.000.000. I have set the task: our military budget must be equated to the whole budget of Armenia in the nearest future. Armenia will never be able to rival us. The earlier the Armenian leadership realize it the better for them; because Azerbaijan is now experiencing the phase of dynamic development. The political processes, those of democratization are taking place very actively in our country. Our cooperation with international organization is getting closer. Our policy towards integration into the Euro-Atlantic structures is going on successfully. The plan of actions within the framework of the European Union’s new neighborhood policy is being developed, while the plan of Individual Partnership with NATO has already been prepared, and its implementation will start soon.

Azerbaijan is strengthening its positions in other international organizations, as well. In the last January, the Council of Europe adopted an extremely important resolution on the Armenia-Azerbaijan conflict over Nagorno-Karabakh, in which for the first time the fact of occupation of Azerbaijani lands by Armenians was reflected. Before, international organizations used the term “Armenian forces”. This is an abstract term. The Council of Europe’s resolution, however, clearly states that the one member-country of the Council of Europe committed an act of aggression against other member-country of the Council of Europe, and that as a result of this aggression, there were facts of ethnic cleansing, occupation of 20% of lands, and one million people’s becoming refugees and internally displaced. In other words, it is very important resolution.

Azerbaijan is very active in the Organization of Islamic Conference; our ties with the Islamic world are getting stronger. We attach importance to this area. My visits to several Muslim states as well as those by representatives of those countries to Azerbaijan also promote strengthening our solidarity. We are also actively involved in such international structures of regional scale as GUAM and CIS. In other words, the positive political processes, the enhancing prestige and role of Azerbaijan in the international arena, the ongoing democratization in the country, and the unity of people and power are factors strengthening out positions.

On the other hand, form the standpoint of economic potential, the abyss between Azerbaijan and Armenian will be deepened from year to year. The major goal of our programs is to increase our economic potential for our positions with regard to Karabakh problem to become even stronger. How can we fill the budget, and find funds for the army without economic growth, tough financial discipline, and economic reforms? Here, however, the odds are in our favor too. Our budget and therefore, military spending will grow every year.

Other side of the question: our enhancing positions in the international arena in the light of the recent incidents concerning energy supplies, as well as the similar problems in some regions, already put Azerbaijan to the forefront as an alternative energy transporter. This tendency is getting more and more obvious. If two years ago our negotiations with European countries were theoretical - we just defined concrete priorities, now our dialogues turn to practical level. Our oil and gas will be transported to Europe, and both sides have great interest in it. This situation demonstrates that Azerbaijan as a state cannot be compared with Armenia, which is not involved in any regional project; because we isolated it. Armenia’s development potential is too limited; as matter of fact, there is no any. No investments are made in the country, poverty prevails everywhere, and people flee abroad. How much longer the Armenia’s aggressive policy and groundless territorial claims will affect its people negatively? There is no doubt that resolution of the Nagorno-Karabakh problem, and restoration of territorial integrity of Azerbaijan will serve the people of Armenia too. It will allow them to get out of troubles, and join the processes taking place in the region, and to become a normal neighbor to other countries.

Actually, they have no normal relations with any neighbor. In contrast, Azerbaijan maintains warm and friendly relations with all of its neighbors; because we are open for cooperation. We don’t resort to provocations on the quiet; and we are not engaged in separatism. In addition, Azerbaijan is a multi-ethnic country, and is a homeland to all its residents. Representatives of different nationals and religions live here as one family. We have never had ethnic or religious problems. This is our strategic course.

But look at Armenia: it is a mono-ethnic state. In Soviet times, Armenians comprised 90 percent of population, now they do 99 point several tenth of a percent. Representatives of other ethnic groups just cannot get on there. The Armenian must abandon this policy. It leads them to the abyss.

Azerbaijan uses its economic, political and military potential in full measure. Based on the deliberate program and concept, we are moving forward quite rapidly. I want to note again that the Azerbaijani Diaspora’s role in this area is great. I want the role of our compatriots to steadily increase in popularization of Azerbaijan throughout the world, and keeping the global community informed on Azerbaijan’s realities.

The Azerbaijanis must be more actively involved in social and political life of their countries - to join political parties, and be elected to legislative bodies.

In economic sphere, our positions are really strong. It is extremely important, and increases our possibilities. Now, we have to achieve more success in political sphere, and there is a good basis for that. Presence of political basis allows you - and I call on you - to be more actively involved in political processes. Acting actively in both political and economic spheres, our Diaspora will thereby promote strengthening positions of Azerbaijan for us to become even stronger. Our strength is in you active work. Your strength and support is in the powerful state of Azerbaijan. The stronger our country the stronger your positions. I had comprehensive talks with heads of states and governments of the countries, where there are compact Azerbaijani communities, or many Azerbaijani live. There was never a meeting, at which we did not touch on this issue; there was never an event, at which the question was not raised. I have been doing it so far and will do it in the future, because it promotes enhancing Azerbaijani people’s prestige. The Azerbaijani nation is great nation. There are 50 million of us. In global scale, it is a big nation. Our common homeland is Azerbaijan. We must aspire to strengthen, enrich our homeland, and transform it to a powerful state. I wish you success in this cause.