PROSPEROUS ARMENIA PARTY CONGRESS A SUCCESS, REAL

C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 000192

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DEPT FOR EUR/CARC

E.O. 12958: DECL: 02/23/2017
TAGS: PGOV PHUM KDEM AM
SUBJECT: PROSPEROUS ARMENIA PARTY CONGRESS A SUCCESS, REAL
COMPETITION COULD LEAD TO BETTER ELECTIONS

REF: A) 06 YEREVAN 1264 B) 06 YEREVAN 1280

YEREVAN 00000192 001.2 OF 002


Classified By: CDA A. F. Godfrey for reasons 1.4 (b, d).

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SUMMARY AND COMMENT
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1. (C) Prosperous Armenia (PA),the new oligarch-founded
party that has taken Armenia's political scene by storm (but
whose agenda is still unclear),held its long-awaited
pre-election congress on February 15. The congress hall was
packed, and also drew a number of sour-faced senior
government officials and rival party leaders, including Prime
Minister Andranik Margarian. The congress formally anointed
PA founded Gagik Tsarukian as party chairman, to rapturous
applause from the delegates. The congress was also notable
for its slick presentation and superbly executed logistical
details, in a society where that is hardly the norm.
Government-run television coverage had a distinctly derisive
tone -- notable since PA is presumed to have President
Kocharian's behind-the-scenes backing.


2. (C) In endorsing both Prosperous Armenia and Armenia's
Republican Party, Kocharian has taken a page from Putin's
succession-management playbook. Kocharian seems content to
let the two parties battle it out on more or less equal
terms, with the Republicans taking advantage of their control
of the airwaves and PA taking advantage of Tsarukian's very
deep pockets. While the PA party congress was a success in
many ways, it also showed plainly to any Armenian voters
capable of noticing how little leadership the party had below
Tsarukian's level. It is clear from PA's strong public

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support that the party has successfully generated its own
steam. PA's populist appeal may have peaked, however, and
the more the electorate finds out about the party, the weaker
it may become. In any case, there is some real competition
between PA and the ruling Republican Party. More than
international pressure, more than our democracy programs and
even more than the conditionality of our MCC funding, this
rivalry is the single factor most likely to deliver a better
election. END SUMMARY AND COMMENT.


3. (SBU) The front row of the hall was reserved for a number
of non-PA political heavyweights who have been critical of
the party's campaign techniques. In addition to the Prime
Minister, Presidential Chief of Staff Armen Gevorgian,
Republican Party parliamentary faction head Galust Sahakian
and two members of the governing Buro of the Armenian
Revolutionary Federation (ARF/Dashnaktsutyun) -- Hrant
Margarian and Armen Rustamian -- attended the opening
ceremony. United Labor Party Chairman Gurgen Arsenian and
Christian Democratic Party Chairman Khosrov Harutyunyan also
attended. The VIPs were exclusively members of competing
political forces; PA's ranks, unlike those of the Republican
Party during its summer 2006 congress, were devoid of black
leather jackets and notorious faces.

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PARTIES TAKE SHOTS AT PA
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4. (SBU) In his welcoming speech, ARF's Rustamian somewhat
condescendingly differentiated the still wet-behind-the-ears
PA from more established parties. He suggested that party
building was a tough job, and that at some point PA members
would need to muster the courage to enter the "real"
political field. Rustamian said that PA would not be able to
focus solely on caring for social and economic needs of the
population, but would have to face real problems, such as
society's disappointment with the current political
situation. Rustamian also noted that elections would be a
test balloon for the party's ability to behave honorably and
fairly in the upcoming "free and fair" election. The
implication was that the PA leadership had bribed voters with
its philanthropic and social assistance programs (such as
distribution of packets of seeds and bags of potatoes),
rather than taking tough political stands.


5. (SBU) Former PM Harutyunyan from the marginal Christian
Democratic Party followed Rustamian's lead in his speech,
saying that the overwhelming public support for PA was an
"advance" that the party would have to pay back through real
political work.

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TSARUKIAN PRESENTS PA'S PLATFORM

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6. (SBU) Party founder Tsarukian rose to a spontaneous
standing ovation that lasted several minutes. Not a natural
politician, the oligarch did not look up at the audience once
while reading his speech at a mile a minute. He said he knew
society had high expectations of PA and that the party would
rise to the challenge. He noted that not many people
believed that a serious party could be established so
quickly, but that PA had swiftly become a solid contender
with the support of hundreds of thousands of Armenians.
Tsarukian listed the party's priorities: development and

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support of small and medium-sized businesses, the development
of the agricultural sector and villages, pension reform, job
creation, and the development of the education and health
systems. His stated foreign policy objectives included
resolution of the "genocide" issue, European integration, the
deepening of relations with current partners, and a focus on
the diaspora. Unsurprisingly, Tsarukian was unanimously
elected party chairman.


7. (SBU) PA board member and Deputy Minister of Transport and
Communication Vardan Vardanian said the party would not form
blocs. He said PA was committed to free and fair elections.
"We do not need other's vote. But we will fight for every
vote and protect every vote we already have," Vardanian said.
He also said that the party leadership had not expected the
amount of difficulty it had encountered in its establishment
and operation. In his one barb directed at PA's detractors,
he noted, "Armenians are not cheap and unsophisticated. They
will not sell their votes for seeds and wheat."

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NEGATIVE MEDIA COVERAGE
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8. (SBU) All media outlets covered the event, but the tone of
their reports was surprisingly unsupportive. Though
television commentators recognized that the event was well
attended and well organized, stations pointed out that
Tsarukian himself did not attend the press conference.

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Aravot newspaper portrayed Tsarukian as a temporary hero,
saying it was only a matter of time before the public
realized he would not be able to bring real change.
GODFREY