AMBASSADOR'S FAREWELL CALL ON PM MARGARIAN

C O N F I D E N T I A L YEREVAN 001248

SIPDIS

SIPDIS

FOR EUR/CARC

E.O. 12958: DECL: 09/07/2011
TAGS: PREL PGOV AM
SUBJECT: AMBASSADOR'S FAREWELL CALL ON PM MARGARIAN


Classified By: Ambassador John M. Evans, for reasons 1.4 (b) and (d)


1. (C) WARM WISHES: The Ambassador's September 5 farewell
call on Prime Minister Andranik Margarian was brief and
businesslike. Margarian praised the bilateral cooperation
and achievements of the last two years, notably the
Millennium Challenge Account (MCA) Compact and the ongoing
U.S.-Armenia Economic Task Force (USATF) processes. He urged
the Ambassador to stay in touch with Armenia.


2. (C) BILATERAL TIES, MCA, AND INVESTMENT CLIMATE: The
Ambassador assured the PM that the transition to a new
ambassador should be seamless in terms of the continuing
U.S.-Armenia relationship. He had great confidence in his
country team and in the incoming Ambassador-designate. He
applauded the PM's role in the GOAM's transparent process for
choosing the chief executive officer of MCA-Armenia. He said
the MCA Compact signing had been an achievement, but that in
many ways the MCA program was just getting started. It would
be important to stay the course on reforms and criteria (i.e.
indicators) to fully realize the program. The Ambassador
noted his wish that more American firms had seen fit to
invest in Armenia during his tenure. Observing that Armenia,
as a small market, had to struggle to get noticed by major
international firms, further improvements to Armenia's
business climate--especially anti-corruption and rule of law
issues-- would help.


3. (C) LEAVING THE DOOR OPEN: Margarian agreed, saying he
was closely involved in the GOAM's anti-corruption
initiatives. He said the government was committed to working
transparently, and welcomed U.S. advice and assistance. He
looked forward to a continuing relationship with the new
Ambassador.


4. (C) THE DEMOCRACY MESSAGE: The Ambassador laid down a
marker on the necessity for free and fair elections in 2007
and 2008. He highlighted U.S. election-related assistance,
and reiterated his consistent point (made often to the GOAM
and local media) that the U.S. does not support "revolution"
in Armenia, but rapid evolution toward fully democratic
practices. Margarian did not think there were any
revolutionary forces at work in Armenia. The Ambassador said
that Armenia had it within its capacity to be a leading
democracy within the region, and hoped that this would come
to pass. The PM agreed this was important for Armenia's
integration with Europe.

EVANS
EVANS