Ladies and gentlemen!

Dear fellow countrymen!

I cordially wish you a Happy New Year!

The year 2007 is passing into history. This year has been very successful in terms of all-round development of Azerbaijan. In 2007, Azerbaijan has strengthened its international positions and achieved a big economic progress. Our country is making progress very intensively and successfully in all fields. It is the third year in row that Azerbaijan has managed to hold its leading positions in the world in terms of economic growth.

As you know, the economy of Azerbaijan increased by 26% and 35% in 2005 and 2006 respectively. Such dynamics has been kept in 2007 too - this year the economy of Azerbaijan has grown 25%. It is an indicator having no analogues in the world, and undoubtedly, is a factor having a considerably positive effect on the general development of Azerbaijan.

A progress and movement is seen in all fields with growing economy in Azerbaijan. Our budget spending is on the rise. Our budget spending has increased 10-fold against 2003. Azerbaijan`s prospective budget will make up $12 billion. It is a very huge number allowing us to cope with any task ahead.

As you know, it is four years since the State program of socio-economic development of regions has been implemented in Azerbaijan. This program has played a great role in ensuring progress in provinces. I can mention with a sense of great pride that over 600,000 new jobs have been opened in the past four years, with 460,000 of them being permanent jobs. It means that the promises made in 2003 have been fulfilled not by the end but by the start of 2008. Opening new jobs means not only employment but also new businesses, factories.

We are diversifying the economy of Azerbaijan. We are reducing our oil and gas dependence as the economy should be diversified, and we will do achieve it. Along with these achievements, social problems have also been in the focus of our attention. Huge investments have been made in this field, and our budget remains socially oriented. In parallel with making investments, we should pay attention to social issues, because we are living and working for the sake of our people. Our primary goal is to achieve prosperity of the people of Azerbaijan.

The year 2007 was marked by rise in minimum wage and pension. Salaries of the employees at organizations financed by the state budget have increased. As you know, from January 1, 2008, the minimum wage and pension will rise 20% reaching 60 manats. It is a big step forward. This figure, however, cannot yet fully satisfy us. We want the citizens of Azerbaijan - be it employees of public organizations or retirees - to get salaries and pensions, which could satisfy all their demands. We are moving towards this, and that day is not far-off. So far, the dynamics of minimum wage and pension rise is promising and allowing us to satisfy the demands of citizens of Azerbaijan at a due level.

As for the social problems, they are not limited just to wages and pensions. Making investments in social infrastructure is also a great help in resolving those problems. In the past four years, over 1,200 new schools have been built and hundreds have been repaired in Azerbaijan, and this process will continue in 2008. Building tens of hospitals and out-patients` clinics and providing high-standard medical services to the most remote regions is planned. All these factors are very important for ensuring social progress in Azerbaijan, and no doubt that more attention will be paid to this sphere in 2008.

Our economic capabilities, economic power is on the rise. Azerbaijan`s positions in the region are getting stronger, and in the years to come, we will certainly, make more efforts towards resolving social problems.

The year 2007 was marked by very big, historic events, which were of great importance for further development of Azerbaijan. O, rather, we made those events happen. Thanks to our policy and our goodwill, we have created all necessary conditions for Azerbaijan, for our people. In 2007, the Baku-Tbilisi-Ceyhan oil pipeline started functioning at its full capacity. Those who once were skeptical about or those who were trying to put obstacles to the project, have failed in doing so. We have coped successfully with all the tasks we had set to ourselves. Construction and successful exploitation of the Baku-Tbilisi-Ceyhan oil pipeline is definitely increasing economic potential of Azerbaijan.

This year we have managed to put the Baku-Tbilisi-Erzurum gas pipeline into operation. Today, Azerbaijan`s gas is not only satisfying the needs of the country`s population - its production will increase in the years to come - but also is exported to the neighboring countries. Azerbaijan`s gas is already exported to three countries, but the number will increase in the future. This will bring us economic dividends and considerably strengthen our political positions. Azerbaijan is already turning into an important country in terms of ensuring energy security of Europe, and we are very satisfied at it. Of course, we will take advantage of this factor to defend national interests of the Azerbaijani people.

A foundation stone of the Baku-Tbilisi-Kars railroad was laid in 2007 as well. This project has long been a matter of discussions. But we have realized it, brought it into reality, despite very little support from international financial organizations. Moreover, some foreign forces were making huge efforts to impede the project. However, our strong will and cooperation with friendly neighboring countries allowed us to achieve it. It will have a historic significance for our Azerbaijan and its people. By construction of this railroad, we are connecting ourselves to Turkey, Europe to Asia, and thereby, transforming Azerbaijan not only to a very important transit country for energy resources, but also to a very important transport hub. There is no need to explain what it means. It means that Azerbaijan will have much stronger positions, Azerbaijan’s interests will be much better defended and Azerbaijan will become a more influential country.

Even greater job has been done these years in power industry - new power stations have been built and transmission lines have been laid. A number of 450-megawatt power stations have been built over the past two years, and to commissioning 800- megawatt stations is scheduled for 2008. These measures will do satisfy the country’s demands for electricity, and will create favorable conditions for further development of Azerbaijan.

As you are also aware, huge investments are being made in transport sector. Great attention is being paid to this in both Baku and regions of Azerbaijan. Big and high quality job has been done for the short period of time in the capital to eliminate traffic problems. It is not enough to repair historic buildings in order to turn Baku into a modern city. Creation of modern infrastructure is a must. For the people`s convenience, it is necessary to justify road traffic, and as you know, huge investments are being and will be made in this sphere.

Dear friends, it would take several hours to list all what has been done. So, I would like to bring just the most important points to your notice. The processes taking place within the country are successful, with the complete socio-political stability as well as the unity between the people and authority established. The goal of our work, all our aspirations are to serve our people. I am doing this, and will exert my every effort to do so.

Azerbaijan is strengthening its international positions. Visits to Azerbaijan by foreign heads of state and government and my visits to foreign countries in 2007, at the same time, our successful cooperation with international organizations created very good conditions for further development of Azerbaijan. We have gained new allies; we have gained new countries-friends. Territorial integrity of Azerbaijan is recognized by the entire international community; the principle of territorial integrity of Azerbaijan has always been supported during my bilateral meetings, and was reflected in all the documents I have signed.

Unfortunately, the Armenia-Azerbaijan conflict over Nagorno-Karabakh did not found its solution in 2007. But it is not our fault, it is Armenia`s non-constructive position that is to blame. We are ready for talks, and we are holding these talks despite they have been still fruitless. We are simply seeking a peaceful and international law-based solution to this problem. Unfortunately, the non-constructive position of the Armenian side, its aggressive policy was what prevented us from solving this problem in 2007.

We will never make a concession concerning our territorial integrity.

Azerbaijan`s territorial integrity is inviolable; the Nagorno-Karabakh will never be given independence. The leadership and the people of Azerbaijan will never agree with that, and the international community will never recognize independence of Nagorno-Karabakh. We are holding talks in this direction. I can say that the major idea of the talks is that all occupied territories of Azerbaijan must be freed from occupiers, Azerbaijani citizens - internally displaced people must return to all the occupied territories, including Nagorno-Karabakh. This is our principal position, and we will not take a step back from it. The sooner Armenia realizes this, so much the better for it. We will never allow the creation of the second Armenian state in the territory of Azerbaijan. If Armenians residing in Nagorno-Karabakh want to decide their fate, they must do it basing on the principle of Azerbaijan`s territorial integrity, but if they do not want to do this, they must leave Nagorno-Karabakh and create their second state in another place. Anyway, the creation of the second Armenian state in Azerbaijan`s territory is impossible. Our principal position is gaining more and more international support everyday, and once again, I say that we will continue talks in this direction.

At the same time, we are strengthening our army potential. We are committed to the talks, they are going on and will be continuing for some time. Our hopes have not yet completely faded. But we must be ready for everything. You are well aware of my stance on this. I say things to people as they are.

It is several years since the potential of Azerbaijan`s army has been strengthening. It is several years since hundreds of millions of dollars have been spent on the military. This year our military budget was about one billion dollars. Next year, it will be at least 1.2 billion dollars. Anyway, this figure is reflected in Azerbaijan`s state budget. We are purchasing arms and new military equipment, we are increasing the professionalism of our army. We have created defense industry and it is producing necessary weapons for our army. Information about this industry is confidential, so general public is not well aware of it. But you must know that proper work is being done in this field, and the potential of Azerbaijan`s army is being strengthened. We are strengthening our army in order to be ready to liberate our native lands from occupiers by any means at any time.

Dear friends,

Dear brothers and sisters,

As you know, today is the Solidarity Day of World Azerbaijanis. This holiday is very dear to us. I believe in 2008, all the Azerbaijanis living across the world will become closer to each other. The Azerbaijani state is making every possible effort to achieve this. Congresses of world Azerbaijanis and various other events held in Azerbaijan have been contributing to the unification of Azerbaijanis.

Azerbaijanis are living in various countries, but all of us, all Azerbaijanis have a common state - the independent Republic of Azerbaijan, and a common motherland - Azerbaijan. We must serve our people more, we must strengthen our native state. I am confident that in 2008, the work in this direction will be successful and we will create the strong Azerbaijani state.

Dear friends,

Dear fellow countrymen, sisters and brothers,

Once again I congratulate on forthcoming holidays, and wish you health, happiness and new successes.

Thank you.