MESSAGE OF THE PRESIDENT OF THE RUSSIAN FEDERATION

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1 MESSAGE OF THE PRESIDENT OF THE RUSSIAN FEDERATION to the Heads of States and Governments of the Participating States of the Black Sea Economic Cooperation My heartfelt greetings to all of you, distinguished Heads of States and Governments of the Black Sea Economic Cooperation (BSEC) Participating States. I consider this meeting in Moscow as a manifestation of the aspiration of our States and peoples for consolidating mutual respect, confidence and cooperation for the benefit of stability, peace and prosperity in this important region of our planet. Four years have passed since the first BSEC Summit. And now we have every ground to say that our organization has gained dynamism and became a tangible factor of regional cooperation. The BSEC contributes to the formation of a new type of relations in the European continent. Russia highly appreciates the role of the Black Sea Economic Cooperation. We are prepared to further develop various interaction among the countries of the Black Sea region on the principles of an open and genuinely equal partnership. Russia intends to actively participate in large-scale economic projects, to strengthen mutual cooperation, particularly in such areas as investments, energy, transport, telecommunications, ecology and tourism. I am confident that by joint efforts and with due account of mutual interests our countries will succeed in bringing the relations of cooperation to a level that corresponds to their potential and the needs of development and to aspirations of our peoples. It was with keen interest that I have been expecting this forum of the Black Sea Economic Cooperation. Most regrettably, circumstances beyond my control prevent me from participating in it personally. I hope that the Moscow meeting will establish clear-cut guidelines for the development of the Black Sea region for a few years to come and in the beginning of the XXIst century, and will give an energetic impetus to further development of the Black Sea Economic Cooperation in all directions and will expedite implementation of the most important joint projects. I wish you all, distinguished Heads of States and Governments, a fruitful meeting in the capital of Russia and new successes in joint efforts for the sake of good-neighbourly relations, peace and prosperity of our peoples. Boris Yeltsin

2 STATEMENT BY H.E. ALEKSANDER MEKSI, PRIME MINISTER OF THE REPUBLIC OF ALBANIA

3 Mr. Chairman, Distinguished Heads of Delegations, Eminent Ministers and Representatives, Ladies and Gentlemen, I wish to express my deep appreciation for the excellent arrangements made for this High Level Meeting of the Black Sea Economic Cooperation and thank the Russian Government and the Chairman for the hospitality extended to us since our arrival in Moscow. There are more than four years passed now since we signed the Summit Declaration in Istanbul and today we are pleased to confirm that by our joined efforts, the Black Sea Economic Cooperation can be considered as a very successful model of the regional cooperation. The Black Sea Economic Cooperation is playing its role today within the framework of a progressively enlarged globalizing world economy. Henceforth, BSEC has to seek more effectively in seizing the open up new opportunities for development. These opportunities, regarding trading, international capital flows, international production, to mention just a few, if grasped adroitly, can add new momentum to the development process. As we all are here today to reiterate once more our common view for the perspective of the region as one of lasting peace, stability and prosperity, it is our task to spare no efforts and give a further impetus towards such a prominent objective through strengthening our cooperation and partnership. Obviously, this Initiative has to consolidate its achievements, in order to be apt to a new and higher level of performance. However, we are conscious of the problems going on in our region. Therefore, our cooperation has to be fully in compliance with recent Security Council Resolutions as well as other relevant UN documents. As all our countries are UN members they are entitled to act in accordance with the above said documents. The BSEC as a part of the international community in all its activities has to abide the UN Charter, as mentioned at the Bosphorus Statement. Working together, our countries have been able to identify a considerable number of areas that are of great interest, where transportation, telecommunication, energy and environment are without any doubt the main pillars of cooperation. A very important domain where the BSEC has to make its contribution is the domain of the regional infrastructure, so to say, transportation and telecommunication, sectors that need our fully commitment now and in the future. The cooperation and support offered by the European Union and other international financial institutions for these projects, that are also of common importance and aim the same goals. It is an encouraging and promising constituent that is likely to give a new and broader dimension to our future cooperation.

4 Actually, Albania is engaged alongside with other countries of the region, namely Italy, FYROM, Bulgaria and Turkey in the East-West transport corridor, which represents a short cut between the Adriatic, the Black Sea and the southern part of the continent. Meanwhile, we also are cooperating in telecommunication projects, as those of Trans Balkan Link together with Italy, FYROM, Bulgaria and Turkey; ADRIA-1 together with Greece and Croatia. We have to be very sensitive to the respective business communities, considering them as the pivotal part of our cooperation. In this framework, the customs and border crossing procedures should be simplified and harmonized. On the other hand, the Business Council, the different centers of the BSEC and the chambers of commerce and industry of our countries must have a continuous mutual inflow of information. We consider the establishment of the International Center for Black Sea Studies in Athens as an important event which is expected to give its help in the BSEC endeavor towards its goals. An element of paramount importance in the BSEC framework is the activity of the Parliamentary Assembly of the BSEC, which acting more effectively will give a considerable contribution in exploring and facilitating all the BSEC process dimensions. Finally, I would like to congratulate the Russian Federation for convening of this important Meeting for the Black Sea Economic Cooperation in the future to achieve our common goal, peace, stability and progress. Thank you.

5 STATEMENT BY H.E. LEVON TER-PETROSYAN, PRESIDENT OF THE REPUBLIC OF ARMENIA

6 Distinguished Mr. Chairman, Distinguished Colleagues, Ladies and Gentlemen, It is great pleasure for me to be participating at the Meeting of the Heads of State or Government of the Black Sea Economic Cooperation, that have gathered here to discuss the results of the four years that have passed and goals that the organization is facing. If one takes a detached view, it might seem that the activity of the Black Sea Economic Cooperation was somewhat lacking in dynamics, nevertheless, I think it is natural, for formation of any international or regional organization is connected with great long-term organizational and other efforts and needs time. The process of forming the structures similar to the BSEC implies greater difficulties, as the members of the organization are at different positions at the start, their economic methods and degree of the development of the economy also differ. But the aims of the organization are clearly defined, and I am sure that the Black Sea Economic Cooperation will soon overcome the stage of forming and will address solving issues. Commissions have already been set up, high level meetings in various fields of the activities of the organization have been conducted. At the first Summit, I already stated that the BSEC is the second regional organization after CIS that Armenia has joined. Membership of Armenia in the BSEC fully corresponds to two main principles of her foreign policy: 1. Normal relations with all neighbors 2. Integrating into regional and international structures The BSEC was created at a time when the international situation was changing radically, thus placing countries that for a long time had no relations between each other in a new situation, when political stability and development of democracy was naturally linked with economic development and economic integration. At this time Armenia took resolute steps in the direction of radical reform. At present the process of privatization is continuing intensively. In spite of the difficulties of the transition period we are determined to continue implementing the economic reforms, and as these work proceeds, we will have the possibility to concentrate on social issues. In the sphere of the development of democracy, starting from 1991 Armenia conducted two parliamentary and presidential elections, next month we are conducting elections into local self-governing authorities. Last year Armenia adopted the Constitution which provides for democracy, superiority of the law and free economic development.

7 During the last few years Armenia spared no effort to participate in settling the conflict in Nagorny-Karabakh. And if there are still delays in the progress of negotiations, the reason, to my mind, can be explained by the fact that the negotiations have already reached a stage when most complicated and difficult-tosolve problems of the conflict are discussed. The armistice must be consolidated, negotiations must continue and the peace must be reached. All the countries that are interested in establishing stability and developing the region, do everything in their power to create the most favorable atmosphere for the negotiations. If we recognize, that some difficulties in settling the conflict arise out of mutual mistrust, steps in this direction are necessary. In conclusion, I would like to voice my hope that the BSEC will increase and develop its activities, and, being an organization for economic cooperation will also promote solving political problems between and among the member states. Thank you for your attention.

8 STATEMENT BY H.E. HEYDAR ALIYEV, PRESIDENT OF THE REPUBLIC OF AZERBAIJAN Dear Mr. Chairman,

9 Distinguished Heads of State or Government, Ladies and Gentlemen, It is a pleasure to greet the distinguished Heads of States and Governments, members of delegations of the member states, representatives of international organisations, who take part in our traditional meeting in the framework of the Black Sea Economic Cooperation. I sincerely congratulate the Prime Minister of the Russian Federation, the highly distinguished Mr. Viktor Stepanovich Chernomyrdin with the election to the Chair of our Summit, I express my deep gratitude to the government of Russia and all Russians for attention, friendship and hospitality, for creation of the perfect conditions for our work in the beautiful city of Moscow. I convey my respect, consideration and soon recovery wishes to the President of Russia, Boris Nikolayevich Yeltsin to the name of fruitful work on the way of democracy and progress in Russia. We attach a great importance to the participation in the work of the organisation of the Black Sea Economic Cooperation, which demonstrates its vitality, necessity and perspective more and more. It is with immense pleasure I would like to note that, for the period passed after the Summit of the BSEC in 1992 the significant work has been done, our cooperation has been widened and deepened, especially in the sphere of energy, transport, communication, trade. Black Sea region possesses very important system of the transport links and successful implementation of any joint project will depend mainly on the cooperation in the field of communication. In this regard one of the most promising projects of our activity is the formation of the modern transit Euro-Asian transport net via creation of the corridors "East- West" and "North-South". In its final stage they should provide the connection of the transport infrastructure of all the countries of the Black Sea region with the later integration of national infrastructures to the corresponding units of the Trans-European transport system. Black Sea basin has a lot of communications with the Caucasus, Caspian basin. That is why the attraction of the other countries to the work process of the BSEC, to my mind, will significantly increase the capacities and possibilities of our organisation. The Republic of Azerbaijan, thanks to its geographical position situation, has vast opportunities for the organisation of the transport and communication ties between Europe and Asia, and we are going to cooperate closely in this direction with all the interested parties. We attach a great importance to the project of unification of the electricity-energy systems of the Black Sea Economic Cooperation countries. It should be noted with pleasure that Black Sea Energy Center in Sofia, European Union, international banks and financial organizations have already started to work out this project. I asses positively the ratification of the Agreement on the creation of the Black Sea Trade and Development Bank and I hope that at the beginning of the next year it will start to function and provide investments of the large regional projects.

10 Having gave to our activity for recent years I want to stress that Black Sea Economic Cooperation, to my mind, is not dynamic organisation yet. To implement successfully joint projects it is necessary to define more clear legal base for cooperation, to create the effective organisational mechanism, which could co-ordinate the job of all structures of the Black Sea Economic Cooperation. By our joint efforts we should create the favourable climate for the private entrepreneurship in the BSEC region and with this purpose it is necessary to activate the work of the Business Council. The important task and the main condition of the success is the openness of the Black Sea Economic Cooperation, effective cooperation with regional organisations such as European Union, CIS, ECO and some others. It would not only contribute to the successful implementation of the joint projects in the economic sphere but also to the growing of international prestige of our organization. Ladies and Gentlemen, The beginning of the XXI century, the new Centennial is being waited by the mankind with the hope to the peace, stability and welfare. Our task is to make our contribution for this historical aim. It obliges us to resist firmly to any action aimed against the peace, unleashing of wars, military conflicts. Black Sea basin which suffered the hard consequences of many wars is especially in need of it. We have to rebuff firmly and decisively all kind of separatism, aggressive nationalism, international terrorism which have been expanded widely during recent times. We have to support international principles of the territorial integrity, sovereignty of each country. It is known, how significant is the role of the Caucasus for the implementation of the programs of the Black Sea Economic Cooperation. All the nations are suffering, all the countries of the Caucasus are suffering. That is why the liquidation of the military conflicts in the Caucasus is the high importance condition for the successful economic cooperation in the Black Sea basin. The huge damage has been made to our country by the aggression from the Republic of Armenia with the purpose to separate Nagorno-Karabakh region of the Azerbaijan Republic. Twenty percent of our territories are under occupation, more than one million of our citizens have been ousted from their dwelling places, they became refugees and live in hard conditions in the tent camps. In May of 1994, we achieved the Agreement to seize the fire, which is being preserved up to now. But no permanent peace has been achieved yet. We are consistently obtaining the peaceful regulation of the Armenian-Azerbaijani conflict through the rehabilitation of the territorial integrity of Azerbaijan, settlement of the refugees back in their homes, grant of the high autonomy status to Nagorny Karabakh within the Azerbaijani state. I guess that such a universal principle can be the basement for all the conflicts in the Caucasus.

11 Your Excellencies, I don t have any doubts that our joint work in the organization of the Black Sea Economic Cooperation will contribute to the strengthening of the peace and stability in our region, to the growth of the welfare and flourishing of our people. That is why, I stress again the readiness of the Republic of Azerbaijan to the most close cooperation within the framework of our organization in the name to achieve these noble goals. Thank you for attention.

12 STATEMENT BY H.E. DR. ZHELYU ZHELEV, PRESIDENT OF THE REPUBLIC OF BULGARIA

13 Esteemed Mr. Prime Minister, Ladies and Gentlemen, It is four years now since 1992 when Summit Declaration on Black Sea Economic Cooperation was signed in Istanbul, and I think that we could congratulate ourselves on a relative conclusion of the stage of building-up the structural and procedure framework of cooperation among our countries. The Eighth Meeting of Ministers of Foreign Affairs is being held today, this is the third round of our deliberations, senior officials meet regularly, the Black Sea Trade and Development Bank has been established, working groups discuss the concrete mechanisms of economic cooperation, specific relations are being established with other international organizations. It seems to me that I would express a common view by saying that it is necessary to proceed to elaboration and practical implementation of specific projects of mutual interest in various fields. There is no doubt whatsoever for the participants in the Moscow Summit today that the key to success of present integration processes is regional cooperation effective enough to exploit fully the wealth of good-neighbourly relations and shared interests as well as the economic and human potential of the states in a certain region. This comes first. Second, it would be essential for the effectivity of such regional cooperation to adopt a concrete pragmatic approach allowing identification of common objectives and selection of instruments for their achievement. I believe that we have already accomplished that: we should coordinate our efforts and synchronize our interests, first and foremost, with regard to building-up the infrastructure of the region - transport, energy, telecommunications. A number of specific projects are under elaboration now - their materialization would help us to overcome isolation from Europe and the Middle East; they would also be of interest to other international partners outside the region. It is only then that we could visualize a more definite institutionalization of the various forms of our cooperation. In the meantime, a special committee of senior officials and legal experts could work out and submit to us a report on the parameters and terms of a future international institution, where membership of any of our states would not be in conflict with international commitments undertaken already, to the World Trade Organization, for instance and, first of all, to the European Union and the adopted common strategy of accession of associated states. What is boils down to, actually, is a more modest but very concrete and pragmatic philosophy of regional cooperation which has already proved its effectivity in the framework of expanding united Europe. It is necessary for the future processes of institutionalization to keep their open and flexible character, their step-by-step evolution in order to avoid all possible traps of premature bureaucratization of this new type of cooperation and to spare superfluous costs to our taxpayers. There is no doubt that our region needs sizeable foreign investments to guarantee implementation of our projects, the infrastructural ones in the first place. It is also obvious that only a transparent system of regional cooperation, based on clear and shared rules, would effectively attract the interest of big world investors. I am confident that, gradually, by joint efforts, we will achieve that.

14 STATEMENT BY H.E. EDUARD SHEVARDNADZE, PRESIDENT OF GEORGIA Distinguished Mr. Chairman,

15 Distinguished Heads of the Delegations, Ladies and Gentlemen, Permit me to express my heartfelt gratitude to the government of the Russian Federation, to you, dear Victor Stepanovich, for your hospitality and for an excellent organization of our meeting. We would like to extend from here our greetings and best regards to the President of Russia, Mr. Boris Nikolayevich Yeltsin who stood here with us at the inception of our organization. I am convinced that in the nearest future he will resume his vigorous participation in our work. Given quite a number of circumstances, this is not a mere civility or a protocol statement of our aspirations. In my address I would like to share with you a few considerations concerning the present-day situation in the Black Sea Economic Cooperation as it is seen from my country. Since our last meeting in Bucharest, the States of the Black Sea region have undergone a lot of changes. The implementation of the global project of the Eurasian transport-communications corridor has got off the ground and this corridor that will be able to handle huge amounts of goods and raw materials shipped from East to West and from North to South; we are witnesses that more and more countries join the quartipartite agreement signed at Sarakhs that provides for maximum promotion of transit; the issue of the development and transportation of energy sources from the Caspian countries has been determined; the relations of many BSEC Participating States with the European Union have acquired a new qualitative dimension. The legal basis of integration within the framework of the CIS is now being expeditiously created. A lot of other things could also be mentioned. Our region is the scene of dynamic and vigorous processes of coincidence or rapprochement of long-term political and economic interests, the initiation and implementation of which was a determining factor underlying the creation of our alliance. Moreover, owing to their no longer-regional but sometimes even global significance, many projects have gone beyond the boundaries of the Black Sea area. Unfortunately one cannot perceive the presence of the BSEC in these substantial changes. We have to admit that the Black Sea Economic Cooperation lags behind the rate of the development of this region. If it is so and if the BSEC, for various reasons, really finds it difficult to act as an initiator and propounder of new endeavours, let us at least contribute to the Organization becoming part of those processes that have originated and have been developing outside the BSEC. It will be beneficial for the Organization and will contribute to enlarging the scope of its activities and responsibilities. Mutually beneficial bilateral and multilateral relations have long since gone beyond the boundaries of our region. For instance, such global projects as the TRASECA and the transportation of the Caspian oil involve States that are members of four international organizations simultaneously: the BSEC, the CIS, the ECO and the European Union. Time has come to harmonize and coordinate our activities. We propose that a consultative group for coordination of the implementation of largescale projects involving Participating States of the BSEC, the CIS, the ECO and the European Union be set up as a permanent body acting within the framework of working bodies of the BSEC. This group that should incorporate representatives of all the interested countries, and the above international organizations could, with

16 transparency, address, coordinate and settle all the differences that may crop up between and among the countries involved, which differences, if unsettled in the course of frank discussions, may remain as underwater currents that are not always visible from the outside and, having lost their economic essence, may acquire a political dimension and thus give rise to mutual mistrust and encourage the spirit of unhealthy competition. Our vigorously developing region will continue on its course, because European processes that started after the end of the cold war cannot be stopped, whereas the Organization faces the risk of being pushed aside. Georgia believes that it has become necessary to make a political decision at the top level concerning a stage-wise transformation of the BSEC into a recognized international economic regional organization. Rendering this organization an international legal entity will allow general coordination of its performance in all dimensions inter-governmental, parliamentary, business, etc. and will provide advantages regarding attraction of investments here from outside, which will raise international authority of the Black Sea cooperation to a new level. With this in view, it is to be thought that more attention should be given to the relations with European structures. Against the backdrop of a global vision of the place and role of the Black Sea area - and this role is already conspicuous, conflicts in our countries appear as a monstrous anachronism. One is under the impression that these conflicts that present a formidable threat for the whole region and for the Organization in particular, take place not in our region but elsewhere on the opposite side of the globe. If we intend to deepen economic cooperation - and the BSEC has been created precisely for this purpose - we should bear in mind that conflicts whose number and acuity would not dwindle, are able to blow up the cooperation and integration that have already started. We are far from freezing or inhibiting the processes of integration until they can be settled. We only urge that they should be regarded seriously, as a factor that impedes implementation of the ideas that formed the basis of our alliance. We believe that the support of the Kislovodsk Statement which was initiated by the Russian Federation and the Peaceful Caucasus initiative could become the first step for the BSEC States to demonstrate their responsibility. Reverting to the discussion and implementation of the idea of the East-West Eurasian transport-communications corridor, don t we unwarrantedly forget about the North-to-South line whose operation is impeded by conflicts in one of the Black Sea regions, namely in the Caucasus, particularly in Georgia, to be precise? Had it not been for the conflict in Abkhazia, direct and shortest itineraries could operate from the North towards Armenia, Azerbaijan, Turkey, Greece, Iran and the Near East. Now that we have touched upon the globalization of positive processes, I would permit myself to remind you about those negative aspects which the Georgian delegation already cautioned you about at our previous meeting: development of communications that contributes to a large-scale shift of people and goods, will give rise to problems connected with organized crime, that pose a serious threat to stability in the region. We propose that concrete measures should be taken today itself, to wit: a BSEC regional center should be set up to combat organized crime, drugs trafficking, illegal arms trade, smuggling of finished products and raw materials, which center, in close cooperation with the Interpol and analogous structures in the CIS, could assume the role of a coordinator. We also believe that along with other objectives the main

17 challenge of this center should be merciless struggle against terrorism this evil of our time. Harbouring dangerous terrorists and criminals on the territory of other states should be regarded as absolutely impermissible. And, finally, I cannot finish my statement without saying in just a few words about the changes that have taken place in my country over the past year. If we proceed from the premise that the more democratic, stable and predictable member states are going to be, the stronger will be our region and our regional organization, then the contribution Georgia has made to our common cause over the past year is not so small. We have adopted a new Constitution that corresponds to the top level international standards. We have had free and fair parliamentary and presidential elections. Radical economic reforms are proceeding at full speed assisted and participated in by international and European financial institutions, as a result of which the rate of exchange of our national currency has remained practically unchanged for over a whole year. Georgia has excellent relations with all the countries represented here in this hall. With your help, distinguished heads of the delegations, we have succeeded to do away with the political chaos, economic decline and, having emerged from a profound economic crisis, we have now embarked upon the way of a genuinely democratic development. And my most sincere gratitude goes to all of you. In conclusion, distinguished colleagues, I would like to mention that despite all difficulties, economic cooperation, cooperation in tourism are gaining momentum. Gradually, our scientists establish contacts with one another; we have started joint research into ecology and, generally speaking, people become closer to each other. The critical observations that I have addressed to the Organization have been prompted solely by our greatest desire to see it follow our region and gain appropriate weight in the world. Today we have every condition to favour this, which is corroborated by the fact that more and more countries wish to join us. And we welcome their intention. Let us run ahead of the processes instead of merely reacting to them. I am confident that by joining our efforts we shall succeed in achieving this. Thank you.

18 STATEMENT BY H.E. CONSTANTINE SIMITIS, PRIME MINISTER OF THE HELLENIC REPUBLIC

19 Mr. President, Excellencies, Ladies and Gentlemen, It is with great pleasure that I participate for the first time in such an important Meeting of the Black Sea Economic Cooperation and I take this opportunity to express my appreciation and thanks to the President of the Russian Federation and to you personally Mr. President for the initiative to convene this Conference. I would also like to express my thanks for the warm hospitality, that I and the members of the Greek Delegation have enjoyed during our short stay in the beautiful and historic city of Moscow. Since ancient times the Black Sea region has been a cradle of different civilizations and a crossroad between Europe and Asia, where populations of different ethnic and religious origin have been living together. Periods of peace and stability were succeeded by long periods of conflicts and war. Despite this, the Black Sea area has always been famous for the commercial transactions and economic ties forged among the peoples of the region. Greeks have always been present in this area and have contributed to the establishment of multifaced ties with the nations of the Black Sea. Today in building a new world, the economic interdependence of our countries is a fact that needs solidarity, confidence and peace, so that our cooperation may blossom. The countries that are represented here today, I am sure can meet the challenges of the present and at the eve of a new millenium I believe that, all of us, we can intensify our efforts in creating a new era of freedom, stability and good neighbourly relations, which will be beneficial to the prosperity and the well being of our peoples. Greece attaches great importance in the development of our economic cooperation and the activity of more than Greek companies and enterprises operating in various countries of the Black Sea Economic Cooperation constitutes the best proof of the eagerness of the Greek entrepreneurs in establishing new bridges of cooperation with the business communities of the BSEC Participating States. For us this geographic region is a vital one for seeking opportunities of cooperation and we believe that there is a lot of space for the businessmen to join hands and promote mutual cooperation, to the benefit of all the states of the area. We have to create the conditions for this cooperation and more is to be done. My country - as a founding member of the Black Sea Economic Cooperation - considers it of a great geopolitical and geoeconomic importance, Since 1992 and more particularly during the Hellenic Presidency of the BSEC which ended in May 1995, we have spared no effort to promote the goals and targets of this initiative and we have actively participated in all the Ministerial Meetings, the High Level Meeting of Bucharest and the Meetings of the subsidiary organs, where important decisions have been taken, affecting the future of this cooperation. However, many issues and problems still remain to be solved in the years to come by common and concerted action. Greece, according to the relevant BSEC Ministerial decisions, is the host country of two significant bodies of the BSEC, namely the Black Sea Trade and Development Bank in Thessaloniki and the International Center for Black Sea Studies. Moreover, at the end of this year, we are also going to host in Athens the Conference of the Representatives of the Academic Communities of the Black Sea Economic Cooperation. It is expected that through

20 this Conference, in which distinguished scientists and scholars from all the countries of the region will participate, the BSEC process will acquire a new dimension. Concluding, I would like to stress that the Hellenic Republic, as a member of the European Union and a founding member of the BSEC, will make full use of its traditional experience in democratic institutions and with the support of the European Union will continue to play its positive role in further promoting the cooperation with all the Participating States of the BSEC. We agree with the Moscow Declaration and stress the need of strengthening the institutional and legal framework. I want also to stress the developing of programs promoting regional cooperation. However, allow me at this point to remind that the region is faced with serious conflicts and that there are signs of new tensions to arise. My government, guided by the values of democracy, the rule of law, the international treaties and the respect of human rights, principles which are also included in the founding documents of the Black Sea Economic Cooperation, will continue working for the establishment of peaceful coexistence of all peoples of the region. I hope that in a climate of friendship, mutual understanding and with good faith, we shall be able to achieve the goals and targets of the BSEC initiative and we will succeed to create a new era of prosperity and well being for all our peoples and particularly for the generations to come. Thank you.

21 STATEMENT BY H.E. MIRCEA SNEGUR, PRESIDENT OF THE REPUBLIC OF MOLDOVA

22 Mr. Chairman, Distinguished Heads of Delegations, Ladies and Gentlemen, First of all, on behalf of Moldovan Delegation, I would like to express our deep gratitude to the leadership of the Russian Federation for cordiality and hospitality, for constructive circumstances which reign over the meeting. It is worth mentioning that the Declaration on the Black Sea Economic Cooperation signed in 1992 has become one of the major regional initiatives. We consider the correctness of the approach for creating good-neighbour partnership and mutually advantageous cooperation determined by the Declaration as a necessary component for the formation of regional European structures which, in our opinion, will determine the whole political and economic system in the near future. The founders of the BSEC may recall that all of us considered it necessary to unite our efforts for the sake of stability in the region, the steady economic development and the increase in well-being of the peoples of our countries. It goes without saying that the previous High Level Meeting in Bucharest was important from all points of view and contributed to the process of institutionalisation of the BSEC. Dear colleagues, Ladies and Gentlemen, The steady development of our cooperation is impossible without the proper legal basis of the BSEC and the transformation of the latter into a regional organization possessing the necessary institutional structure and international legal status. This will make it possible to improve the relations between BSEC and other international organizations and financial institutions, will increase the efficiency of the process of economic cooperation itself and will ensure the better interaction of all its components: intergovernmental, interparliamentary, interbusiness, financial, academic and others. In perspective, we consider the BSEC as a dynamic economic organization, which would be an integral part of the European structure. A new stage of the BSEC development will obviously require qualitative changes in its institutional structure and mechanisms. It seems to us that the meeting of the Troika, the Senior Officials committee, the meetings of the ministers of relevant ministries and departments will make the BSEC activities more target-oriented, effective and will strengthen the collective basis for interaction. Talking about the prospects of the BSEC development, its confirmation in the modern system of international relations and its active involvement into the processes of integration, we should not forget the experience of the similar regional organizations.

23 Taking this into account, we think that the flexibility of institutions within the BSEC as well as the openness towards the European organizations and other countries gives the BSEC, in our opinion, a special status and increases its efficiency. In this respect, we welcome the readiness of some countries to join the BSEC as observers. This would underline not only the openness of our organization, but also the increase of its international authority. Mr. Chairman, I would like to touch upon another problem that needs an adequate and constructive solution - the problem of politicisation of the BSEC. In this regard it is to recall that the eleven Heads of State having signed the historical Istanbul Declaration clearly defined aims and tasks of the BSEC - the economic cooperation of the states-founders. However, the question of using our organization for seeking solutions on disentanglements of regional problems and security building measures in the Black Sea region is stated. The approach to the solution of this problem should be, in our opinion, implemented gradually, as the BSEC develops further and other real prerequisites emerge. However, at the present stage it is necessary that the Participating States should direct their efforts to the expansion and intensification of the economic cooperation in the region according to the goals of the BSEC. Ladies and Gentlemen, As it is stipulated in the BSEC Declaration, our model of the economic cooperation is aimed, first of all, at the elaboration and realization of the common projects. The implementation of major joint projects - interconnection of electric power systems of the BSEC participating countries, development of the interregional transport corridors - strengthens the BSEC and enhances its regional and international prestige. However later on the most important and probably the most difficult task crops up: how to convert the agreed upon principles and idea of common projects to the language of practical business. According to this we think that the decision control mechanism should be worked out properly. In this respect, the Parliamentary Assembly of the BSEC must play an important role. It seems to us that the potential of the legislative bodies of our countries to establish the treaty - legal basis of cooperation are not being used completely. It is necessary to use in full the possibilities of the Parliamentary Assembly avoiding at the same time any kind of piling up the coordinating structures, strictly following the Declaration principles of economic development among the Black Sea region countries.

24 Our common task, which is very important, is to steer up the business sector and to involve the representatives of the business world into the process of elaboration and realisation of common projects. In this regard we would like to highlight the BSEC Business Council activity. However, the proposed measures may become efficient only if our governments support them. It is necessary to enlist the businessmen from the third countries in the economic projects within the Black Sea cooperation. In this regard we would like to highlight the success of the Business Forum held in Bucharest and the idea of holding such forums at a regular basis. The Black Sea Trade and Development Bank which is to become the main mechanism in financing and implementing the joint projects must play a special role in the process of the economic cooperation. It is also important to work out the program of investment activity of the Bank taking into consideration the major investment projects in the BSEC Participating States. Dear Heads of Delegations, Ladies and Gentlemen, The Black Sea region is the intersection of the most important transport arteries. The success in solving the problems of transportation in the region would have a considerable effect on the expanding of cooperation in other areas of economics. In this respect, the BSEC Participating States, in our opinion, could and should achieve some real results in the very near future. In the sphere of transport this is, first of all, related to the ensuring of optimal flow of traffic from the BSEC countries to other regions. Moldova is facing the problem of the absence of a direct access to the sea. That is why the issue of ensuring such an access, also via the transportation systems of the BSEC Participating States, has a vital importance for us. The interested position towards the solution of this problem from the side of the Participating States will serve to stress the viability of our cooperation. Mr. Chairman, The delegation of Moldova would like to join up with the evaluations made in the statements of some heads of delegations concerning the final document of our meeting. We would like to support the draft declaration as a balanced, target-oriented document. We are convinced that the principles of the final document will ensure the institutionalisation of BSEC as an organization which will be able to set up a constructive and mutually useful cooperation of our countries. We would like to emphasise particularly the desire of our countries for the insurance of stability in the region by establishing urgent measures for the prevention of organized crime, violence, terrorism, illegal traffic of drugs and weapons.

25 In conclusion I would like to express our confidence that our joint efforts aimed at strengthening of the practical interaction of the Black Sea countries in different branches of economy will considerably contribute to the building of a new integrated Europe. Thank you very much.

26 STATEMENT BY H.E. NICOLAE VACAROIU, PRIME MINISTER OF ROMANIA

27 Mr. President, Honourable Heads of State and Government, Ladies and Gentlemen, On behalf of the Romanian Government and the President of Romania I wish to express the satisfaction for the organization of the present High Level meeting of the Black Sea Economic Cooperation countries. I am adressing, in the same time, cordial congratulations to the delegation of the Russian Federation for this valuable initiative, as well as for the excellent organization of this meeting. Our new meeting is a very opportune one. The Black Sea Trade and Development Bank will start its activity soon. This will give to the cooperation between our countries a concrete substance - of working out and achieving specific regional programs and projects in the area of Black Sea. I am glad that Romania is a country which contributed to the entry into operation of the bank. Now, our main attention is oriented to define projects of interest for our country as well as for other countries of the area, to be financed and achieved as programs of subregional cooperation.we have in mind to propose in the next stage such projects and, in the same time, we will be receptive to the projects imagined and proposed by other states of this organization. In this connection, I would like to stress the particularly important role the participation of private capital, within this area and beyond it, is going to play in the working out and achieving regional projects in this area. Therefore, the periodical organization of international meetings like the Businessmen Forum, which took place in Bucharest in the spring of this year, is of a nature to attract the attention of the community of businessmen to the huge cooperation potential represented by the area of Black Sea. We appreciate as being very important, in the present stage of our cooperation, the further strengthening, from the institutional and juridical point of view, of the Black Sea Economic Cooperation as well as the increasing of the efficiency of its mechanisms and activities. In our view, a more clear definition of the international identity of Black Sea Economic Cooperation is of a nature to encourage the amplification of the relations with other subregional structures and with European, Euro-Atlantic and world organizations and institutions. In this connection we are granting a particular significance to the extension of cooperation between BSEC countries and the countries members of Central European Initiative in items concerning the updating of the transport infrastructure. As a country member of BSEC as well as of the CEI, Romania supports the extension of this cooperation to other fields of common interest, as communication and power infrastructures, environment protection, tourism. We are also in favour of developing similar cooperation activities with other subregional organizations, especially with the Council of the States of Baltic Sea and with the Mediterranean Forum. We highly appreciate the interest and the support of the main European, Euro-Atlantic and world organizations, especially the Organization for Security and Cooperation in Europe, the European Union, the Council of Europe, the Economic Commission of United Nations for Europe, United Nations Industrial Development Organization, FAO, United Nations

28 Development Program, the World Bank, for the Black Sea Economic Cooperation. This position represents, in our opinion, the recognition of the fact that this subregional cooperation structure represents an essential constitutive part, and not an alternative or a substitute,to the European integration processes. It is, also, an expression of the acknowledgment of the contribution BSCE is bringing, through its activities, to the consolidation of the stability and security in the area of the Black Sea and accordingly in the whole Europe. When we are speaking about the stability and the security of the Black Sea region, we have in mind also that these are serving, indeed, in the highest degree, the interests of the whole continent. It is not a secret that the Danube Mouth and the basin of the Black Sea represent the main gate of Europe for east and south-east and, in the same time, an open window of the continent to other regions and civilizations of major interest for the European destiny. These were also, by the way, the conclusions of the recent international conference, organized in Bucharest by the Institute for East-West Studies, in cooperation with the Romanian Ministry of Foreign Affairs with the theme : "Multidimensional integration: the subregional dimension". This conference drew in essence the conclusion that the organizations of subregional cooperation, inclusively the BSEC, represent an important pillar of the new model of European security for the XXI century, which will be examined at the next high level meeting of OSCE in Lisbon. Mr. President, I would like to notice, at the end, the understanding and the cordiality of the works of the present High Level meeting and, generally, of our multilateral cooperation in the area of the Black Sea. This reinforces our belief that, acting for the amplification of this cooperation, we are contributing to the economic and social development of every one of our countries, to the consolidation of democratic institutions in the wide region of the Black Sea, to the cultivation of the relations of understanding and good neighbourhood between our nations and, consequently, to the European integration, stability and security. Thank you for your attention.

29 STATEMENT BY H.E. VIKTOR CHERNOMYRDIN, PRIME MINISTER OF THE RUSSIAN FEDERATION

30 Esteemed Participants of the Meeting, Let me open the discussion of our agenda with the following considerations. First and foremost. I believe that we can all state that the idea of the Black Sea Economic Cooperation has not only acquired a definite shape, but also a solid foundation. Today, the BSEC means real institutions, mechanisms and projects of cooperation. Owing to our joint efforts the BSEC has become an important and dynamically growing factor of international life. The main reference point was chosen correctly. The constructive dialogue between the Participating States, open and equal partnership, respect for mutual interests and international law and action-oriented attitude have allowed us to get significant results over the past four years. We believe that a major result of our efforts, inter alia, in the period of Russia s Chairmanship in the BSEC, is the entry into force of the Agreement Establishing the Black Sea Trade and Development Bank. The Bank has been established de jure and we believe that it will become operational in early Naturally, national contributions to the Bank s authorized capital should be made in January 1997 at the latest. As one of the leading shareholders of the Bank, Russia is prepared and intends to continue to contribute actively to its formation and future operations, which will become a significant contribution to the strengthening of the institutional and financial framework of our cooperation in the most important sphere, the sphere of investments. I would also like to note in this regard the importance of the BSEC Guidelines for investment partnership, as adopted today at the Meeting of our Foreign Ministers, which clearly define directions of practical activities in this sphere and provide a basis for the development of relevant multilateral agreements in the future. Second. The powerful potential of the Black Sea region in the field of communications and development of the related infrastructure is becoming ever more prominent. The BSEC has embarked on the development of megaprojects in the field of transport, whose significance is not limited to the Black Sea as such. Their implementation will contribute to the development of a highly effective and reliable transport system in the region, which will not only interconnect the BSEC countries but also integrate them into trans-european communications networks and provide for the transportation of goods between the countries of Europe and the great Asian continent. Russia makes efforts to join this transport system bringing in its capability to use the Russian inland navigation fleet for the carriage of goods via the Volga-Don channel thus ensuring the most economical route for the transportation of goods from the Black Sea region to the Caspian and the Baltic Sea regions. Russian engineers and

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