Ladies and gentlemen!

Esteemed guests!

Today is very wonderful and remarkable day; not only because the Milli Majlis is beginning its work but also because the building of the parliament has fully changed its appearance. Its both outward appearance and interior design are meeting highest standards. Very good conditions have been created here for parliamentarians. Major repair work has been done for the short period of time. Today, it is, of course, very comfortable to work in this beautiful hall, and I am sure it will be very successful for our parliamentarians. The improvement and construction works that are now underway in Azerbaijan cover all areas: buildings are being reconstructed, and repaired, new alleys are laid. We all want all the buildings repaired to meet high standards. I am sure the activity of the Milli Majlis will contribute to overall development of Azerbaijan, and improvement of the working conditions, providing of the Milli Majlis’ building with up-to-day equipment, will indeed increase the effectiveness of the work.

It has been already one year since the parliamentary elections, and one can say, the new Milli Majlis is playing an important role in development of Azerbaijan. New laws are passed, international activities of the Milli Majlis are being improved, and meetings of the parliament members with their voters are held in a regular manner. It is very important because problems of voters are what must be solved first and foremost. Much in this cause depends on the activities of the Milli Majlis members. All that is being done serves one thing: overall development of Azerbaijan, its conversion into a rich and powerful state, modernization of the country and fully ensuring of the principle of social justice.

You visit provinces very often, and meet voters and are familiar with their concerns. We must work together to eliminate existing shortcomings so not a single problem remains in Azerbaijan. It is possible to do so. The existing socio-political situation in Azerbaijan, confidence between power and people, successful activity of the Milli Majlis are what defines our short- and long-term development strategy.

The role of the parliament in the Azerbaijani society is growing, it should be growing, and it is natural. It pleases me, as the President, very much, because if the tasks set to the parliament are solved, it will ensure overall development of our society. In Azerbaijan, we are building a legal state. The rule of law must be established. Azerbaijan should more rapidly integrate into the global community, and serious reforms should be continued in all areas of life. It is very gratifying that economic and political reforms in our country are being implemented in parallel, and there are good results of these reforms. There are tasks to be solved by the Milli Majlis, and I am sure that your fruitful activities will play a significant role in the all-round development and strengthening of our country.

I want to repeat that is has been a year since the parliamentary elections. Over this year, Azerbaijan has managed to strengthen its positions. Over the year, all the processes taking place in our country have been positive be it foreign and domestic policy or economic development.

Successful conduct of the parliamentary elections, the triumph of the Azerbaijani people’s will, of course, opens new opportunities, new horizons for our country. Parliamentary elections mark the beginning of a new era. There were a few such periods in Azerbaijan’s history. We remember well the years 1991-1993. That period remained in memory as that of defeat. That period brought great difficulties to Azerbaijan, our country faced great problems, and unfortunately, part of those problems has remained topical until now.

Between 1993 and 2003, Azerbaijan experienced the period of stability and development. Under the leadership of President Heydar Aliyev, Azerbaijan managed to get out of the crisis with success, and occupy a worthy place in the international community. Good conditions were created to conduct reforms within the country. The overall situation stabilized. If to take into account that our independence was questioned in 1993, it has been considerably strengthened ever since.

Now, a new period begins. This period will define future development prospects of Azerbaijan, and our long-term development depends on how successful this period will be. Successful conduct of the parliamentary elections and post-election strengthening of our country, of creates new opportunities for our country. We try to build our activities relating both foreign and domestic policy in the form of a program. All the issues of concern are in the focus of attentions. The program of regional development is being realized successfully. You often visit regions, and probably can see our provinces changing for the better. New houses, schools, hospitals, sport complexes, are being constructed, and businesses are being developed. Migration from provinces to the city is reducing, and I believe the time will come when it will stop, and maybe migration from urban to rural area will begin.

Our economic potential is growing. Both macroeconomic indicators and daily life of our people prove it. For ordinary people, the macroeconomic indicators are, maybe, not so important.

However, unless our economy grow 30%, it, of course, will be very difficult to solve all the existing problems. Our budget is growing. The Azerbaijan’s state budget has grown for the short period of time. Some say it has happened due to oil. But you, members of the Milli Majlis are well aware of this.

Of course, oil factor is very important for the economy of Azerbaijan. However, non-oil sector also develops rapidly in Azerbaijan. Now, we should focus our attention on this sector. We must direct oil revenues to the non-oil sector, convert them into human capital assets, spend them to settle the humanitarian issues in order to ensure overall development of Azerbaijan, eliminate or reduce oil dependency in the future. Budget increase allows settling all the problems including economic ones facing the country. The 2007 draft budget is likely to be sent very soon the Milli Majlis. After the budget is approved, it will be possible to do great work in 2007.

The major infrastructure projects in Azerbaijan are to be completed in 2007-2008. Construction of electric stations, roads, gas and water pipelines, schools, and hospitals must be completed in 2007-2008. Thus, all the existing problems should be solved between 2003 and 2008. Our policy in this sphere is very open and clear. I am eager as the President to achieve all these goals shortly. There are all the possibilities to do it. I say once again that our economic potential allows us to do it, of course, the positive socio-political environment allows to do it as well. Strengthening of Azerbaijan’s international positions results in cutting existing risks inside and outside the country. It is one of the major directions of our policy. We must protect our country, reduce risks and create the “space” for cooperation in and around Azerbaijan. Only in this case, our country can develop rapidly, and we can achieve what we want.

Legal state building should be continued in Azerbaijan now and in the future. The process of democratization should be realized more intensively. A wonderful future awaits us. Being successfully implemented, oil strategy of Azerbaijan initiated by great leader Heydar Aliyev brings fruits. Construction of the Baku-Tbilisi-Ceyhan oil pipeline is the historic achievement. The construction of this pipeline will define a long-term economic strategy of Azerbaijan. In this case, implementation of political reforms must be highlighted as quite powerful economic potential, influx of money into our country will, of course, strengthen it economically.

On the other hand, the influx of foreign currency needs to be seriously controlled by the state, government, Milli Majlis and the public. Realization of the scheduled programs can face disadvantages without a serious public control.

Therefore, creation and strengthening of the civil society, strengthening of democratization process, building of legal state is not just a slogan or intention, it is the main condition for all-round development of Azerbaijan. Our experience shows that the way that Azerbaijan has chosen is the right way. Parallel implementation of economic, political and social reforms develops Azerbaijan comprehensively, strengthens the stability, which is so necessary for our country, and has a positive impact on the socio-political situation as well. Therefore, continuation of political and economic reforms is the imperatives of our era. If we really want to create modern and strong state, we should do this. Great challenges face our state in this cause and, at the same time, great responsibility lies with Milli Majlis as well. We must achieve it together.

I think, major political, economic and social problems facing Azerbaijan will be solved until 2008, since I want to say once more that we do our job on the basis of concrete programs. I already said that the program of socio-economic development of regions would be instrumental in increasing the living standards in the regions, creating new enterprises, opening new jobs. As you know, about 450 thousand jobs have been created to date.

Macroeconomic stability and this direction of our economic policy will foster prevention of negative factors in our country. You know that very good economic opportunities suddenly emerge in one or another country, therefore, increasing the risks, including the risk of inflation. Therefore, we should build our macroeconomic policy in such a way as to have all the tasks facing the country be solved without undermining macroeconomic stability. It is extremely serious issue. Perhaps, we face this kind of problems for the first time in the modern history of Azerbaijan, as we had to search for new financial sources in previous years, strengthen financial discipline, find extra source of revenue. But today, due to implementation of our oil strategy, Azerbaijan will face the influx of a great amount of foreign currency resources, which could have a negative impact on the macroeconomic stability. It is vitally important question.

Implementation of the infrastructure projects became systematic. We need to wrap up all the infrastructure projects until 2008, and therefore, we have a great work to do. During many years, financial squeezes did not allow us to earmark sufficient amount of funds to this sphere. In these and subsequent years, much money should be directed here. As to construction of schools, 600 schools have been built for the past two years, very modern ones. Construction of hospitals and social infrastructure objects. Ecological program has been adopted; we will become the richest country. If the ecological situation will not meet the standards, our citizens will face great difficulties, and their health can be damaged badly. In other words, major problems in all these spheres must be solved until 2008 with Azerbaijan strengthening its positions even more.

Our policy on the international arena is successful. This shows that our activity on the international organizations, at the same time, our bilateral ties with numerous countries correspond to the interests of Azerbaijani people. It is, first, the interests of Azerbaijani people and state. We fully protect these interests. Our bilateral relations strengthen our country. Azerbaijan’s role rises on the international and regional organizations. Azerbaijan has the leading position in the ongoing regional processes, and in many cases, we are the initiator and participant of the important projects in region. None of regional project is possible without consent and participation of Azerbaijan.

Of course, international positions of our country strengthen. We have very efficient cooperation with the international organizations. Azerbaijan has hosted several authoritative actions. We take active part in the international organizations the member of which Azerbaijan is. Simultaneously, Azerbaijan contributes to those organizations. And gradually turns to important country, and this is a reality. The present Azerbaijan differs from that of decade earlier. Representatives of the world organizations also confirm it. We have to use these opportunities to provide extremely the interests of Azerbaijani people. We are open to all countries for cooperation, and our foreign policy is sincere, accurate. All the statements we make are realized. We have not made a single step for current situation, or for short-term achievement. We behave ourselves deservedly.

At the same time, we are open for cooperation as well, and this is reality. Azerbaijan is a respected and esteemed country on the international arena and in the whole among the political community. Importance of Azerbaijan rises. The reason is not only the oil-gas projects, and even not the geographical position. Azerbaijan had always oil and gas. Encountered with many obstacles, it required great courage and great wisdom to develop these deposits, involve the foreign investors, and transport it to world markets. I reiterate all these were initiated by President Heydar Aliyev.

Azerbaijan’s geographic position is not merely of great significance, if there was not the thought-over policy, the efforts to make Azerbaijan a regional center. There are many countries in world with better geographic position.

Regretfully, Azerbaijan has no direct way out to the world markets. All our transport and energy projects are realized through pipelines and transit. Despite of this, creation of strong transport infrastructure in Azerbaijan raises our importance. We are the initiator of several international projects. The Baku-Tbilisi-Kars railway construction of which is to be launched soon will create a new situation in the country. Azerbaijan becomes an only country to connect Europe and Asia via the railway. This, of course raises our importance in regional affairs.

We establish business links with the European Union. Our positions are strengthening in the Islamic world, too. This cooperation is very important for us. Azerbaijan has an undeniable role in regional and other organizations. That is, one of this does not exclude the other. They complete each other. Such policy of Azerbaijan is significant for region. None is interested in tension in region. Nobody is interested the existence problems in region led to any bitter conclusion. We pursue our policy reservedly. We have a goal, are going towards this goal and we shall do everything to reach it.

In a word, if to view at the prospects, Azerbaijan has no such a serious problem. Personally, I do not see such one. It is because we shall achieve the accomplishments in several years. In any case, we have reason to state this for we have programs for each direction.

The only problem of Azerbaijan is the Armenia-Azerbaijan, Nagorno Karabakh conflict, settlement of which does not depend only on us. This is an only question that does not depend only on us. Moreover, we do our best and Azerbaijan’s diplomatic efforts are made to resolve this problem. Our position remains unchanged. I have also stated that Azerbaijan’s territorial integrity should be restored. This is the major condition. Beyond of this, there cannot be any agreement, any contract. The aggressive forces should withdraw form the occupied lands. The UN’s four Resolutions be executed and put an end to aggression. The citizens of Azerbaijan, who suffered form ethnic cleanse should return to their homelands. Strengthening of safety measures in region is possible, and we support this and the Armenians in Nagorno Karabakh should be given high status. This is our position. This position bases on history – we know well that we received the Armenians in our lands as guest. This position also rests on political situation – the political situation is in our favor and gradually Azerbaijan’s importance rises. If to weigh up Armenia and Azerbaijan, we shall see which one is of greater importance, what is their potential and what these countries will face in coming years. That is, from the point of view of development of political processes, our position is favorable.

There is no need to stress legal point of the problem. We all know well that from the legal standpoint, the question should be resolved on base of our position.

That is, if to take all the factors, and, at the same time, the growing economic potential of Azerbaijan, we shall see there are nice opportunities to resolve the question. We, simply, adhering the negotiations, have to continue our policy and actions. And this comprises strengthening of Azerbaijan. Our country, using all economic, diplomatic and political opportunities, should strengthen its positions and be further active against Armenia. We are attacking in information field. We have to attack in economic aspect and this has to be on agenda on all international organizations, in all forums, and bilateral format. We should expose aggressive policy of Armenia and we have enough proofs to do this.

We have to strengthen our military potential and you know that since I have been elected as President I keep in focus this question. I have said then that Azerbaijan’s military budget should equal to overall budget of Armenia, and we, probably, shall, achieve this next year. We have to continue these pressures. If the Armenian side should not see these attacks and afraid of them, worry from the growing opportunities of Azerbaijan, they hardly liberate the occupied lands. Armenia ignoring international principles, to our great regret, is not blamed by the international organizations. It has numerous reasons. You know them well. But this is reality. We have to know this reality and withstand our reality, the reality of Azerbaijan. Azerbaijan is a country not to tolerate with occupation of its lands. It is a country, using its economic, political and military potential, will achieve what it wants.

I have told this once, and I reiterate that sometimes Azerbaijan’s army building process causes concern in somebody. It should not cause concern. It is our sovereign right. We have been tolerating this aggression for many years. Our biggest compromise is our adherence to peace negotiations. But using all these opportunities, we have to create new situation. I would note once again that the strengthening of military potential does not lead automatically to war. This is the last version. We have to be ready for this. Very country should be ready, including the country the territory of which was occupied and lives in conditions of war. But, simultaneously, I am convinced that using our political, economic, diplomatic and regional factors, we shall be able to exert pressure on Armenia. These are already evident...

We have to be on the offensive constantly. We must be active in all spheres, all organizations to achieve what we want. We must use economic factors, and these opportunities will increase gradually. The government received instructions to the effect. After Azerbaijan gets 100 times richer than Armenia, perhaps, there will be no need in the option of war. Therefore, we have to seize all the opportunities to restore our rights. It is our privilege. Nagorno-Karabakh is the historic land of Azerbaijan. We will never allow the second Armenian state to be created in the Azerbaijani lands. The whole society should be consolidated. This unity exists today. I am very glad that there is no discrepancy in the Azerbaijani society on this matter. In some cases, our opponents want to criticize us saying why Karabakh problem has not been solved. It is not settled because Azerbaijan will never agree with what dissatisfies us. It is not settled because despite the pressure, as a President, I will never agree with any agreement, which is disadvantageous for the Azerbaijan State and people of Azerbaijan.

I already said that this issue depends not only on our desire. Therefore, we have to work and be active. I repeat that we have to mobilize our efforts. There are no other serious problems for us except this one. This problem is number one, and we, of course, must and will focus our potential on its settlement; everyone should know it. We exert every effort to find a fair solution to this issue; territorial integrity of Azerbaijan will be restored. I have no doubt about it.

Along with this, we are going to continue cooperation with international organizations for the settlement of the problem. Today, Minsk Group co-chairs have arrived again in Baku. We do not intend to give up Minsk Group format. At the same time, we believe that, involvement of other organizations can also assist to solve the problem. Indeed, the Armenian side tries to undermine talks under the pretext of the fact that the matter has been referred to the UN. It is their business, they can cancel the negotiations. If they need a pretext, they can easily find it. Azerbaijan behaves constructively, participates in the negotiations and hopes that they will result in the resolution of problem.

Dear friends, I want to say once more that further development of our country seems very clear and bright to me. What kind of country will Azerbaijan be? Which positions will Azerbaijan have in five, ten years? What economic potential will it have? Which level will the lives of people reach? – These are the questions we are thinking of as we work for the future of our country, for the overall development of Azerbaijan.

We want our country became a modern, rich and powerful state. And the people lived here well, were rich, and that its economy, political image was strong, and that grew our opportunities of influence on the processes in region. We want this. Each country, probably, has similar wish. But to want and to do this are different things. We have all opportunities to realize our wish.

I can tell that today we have opened unique opportunities. How will be Azerbaijan tomorrow, in the years coming – it depends on us. We have to make every effort to create powerful state, much more strengthen our independence. We have to fully direct the potential of Azerbaijan to improve the life of people, and thus, create in the country a civic society. Free society, legal state, supremacy of law, strong economy, powerful army, flexible foreign policy, reliable defense and strengthening of the interests of Azerbaijan – these are the major directions we are going. We have programs on all directions. We have our views at them, we know what we want, where we go, we know what results expect us. And finally, we shall have powerful country, strong Azerbaijan, and the Azerbaijani people will live much better. We have to fruitfully work to achieve all these.

In the re-constructed building of Milli Majlis, there are nice opportunities for this. On the way to Milli Majlis in the morning, I remembered the earlier situation, and, of course, you see the vast difference. I even said: “I wish I had worked in such reconstructed building, but, never mind, hitherto, we, probably, will meet frequently. I wish you success. I want to reiterate that I am very pleased that the members of Milli Majlis regard their duty with great responsibility, permanently are in touch with their electors, actively take part in adoption of progressive laws, in the socio-political life of country. The role of Milli Majlis, thus, increases. Public sees and acknowledges it. I also see it. I am also pleased and from this platform, I wish you success in further activity. I would like to express confidence that we shall and henceforth work together, all-round develop out country. Thank you.