Dear ladies and gentlemen!

Dear friends!

Please allow me to warmly congratulate you and all the people of Azerbaijan on the Day of the Republic and wish the Azerbaijani people happiness and further successes.

Ninety-two years ago, the first democratic republic was established in the Muslim East. That event carried tremendous historical importance. The establishment of the first democratic republic in this region was a great achievement of the Azerbaijani people. The republic did not exist for a very long time. Two years later the Azerbaijani Democratic Republic ceased to exist and the Azerbaijani people lost its state independence. In a short period of time, in only two years, all attributes of the state were created, the state flag was adopted, our outstanding composer Uzeyir Hacibayov composed the national anthem, the national emblem was adopted, state bodies and ministries were formed. Despite that, the demise of the republic was inevitable, and for 70 years Azerbaijan was a socialist republic of the Soviet Union. Although we were deprived of state independence, those years were also successful for Azerbaijan. A powerful industrial potential emerged in those years. Agriculture was rapidly developing. Highly important industrial enterprises, especially those of the oil and gas sector, are still serving independent Azerbaijan today.

However, despite all this, we could not live independently. The Azerbaijani people lived with hopes of independence, and these hopes were justified in 1991. Following the break-up of the Soviet Union, Azerbaijan restored its state independence. But those years were very difficult for Azerbaijan. They went down in history as an extremely difficult period because the unpleasant events unfolding in Azerbaijan in the first years of independence, domestic strife, fight for power, incompetence of the then Azerbaijani leaders could have led to the loss of our independence again. All economic issues were dealt with wrongly. There was a major industrial recession and total chaos.

Besides, as a result of the policy of grab Armenian separatists started pursuing against Azerbaijan several years before the break-up of the Soviet Union, some of our lands were occupied. All these factors put Azerbaijan in an extremely difficult situation. In essence, we could have lost our independence. The Azerbaijani people demonstrated the wisdom characteristic of it, appealed to nationwide leader Heydar Aliyev and invited him to political leadership in Azerbaijan. After Heydar Aliyev came to political power in Azerbaijan, the situation stabilized, all unpleasant tendencies were nipped in the bud, stability was established and Azerbaijan embarked on the path of development.

The 1993-2003 period will be remembered as one of stability and development. It was in those years that the foundation of Azerbaijani statehood was laid and very important steps were taken towards building a law-governed state. A political system was created and economic reforms launched. It was also in those years that Azerbaijan started rapidly integrating into the world community and joined a number of international organizations. Those years became crucial in international recognition of Azerbaijan.

The attraction of major foreign investment facilitated our long-term development. Heydar Aliyev’s oil strategy held a special place in these issues. It is being successfully realized, and thanks to it we can witness Azerbaijan’s rapid development today.

We have effectively capitalized on these wonderful opportunities. We have achieved major successes in diversifying our economy. Having successfully and skillfully used the oil and gas factor, we have secured a comprehensive development for our country. Today Azerbaijan is very optimistic of the future. Our country has covered a long and glorious road in recent years. The policy of Heydar Aliyev is continuing, and the history of the last seven years is evidence of that. Azerbaijan is strengthening its international standing, while the number of our partners is increasing. Azerbaijan is playing an important role internationally and our opportunities will further expand over time.

All regional cooperation projects we have initiated are being successfully implemented. All initiatives in energy, transport and humanitarian spheres serve the strengthening of regional cooperation. The bottom-line of our foreign policy is our desire to deepen relations with all countries on the basis of mutual benefit and respect. The growing number of our partners shows that Azerbaijan’s foreign policy is successful.

All our tasks in the area of economic reforms are being successfully tackled. In 2004-2009, the world’s highest rate of economic development was registered in Azerbaijan. Our economy grew almost three times in this period. The vast majority of major social issues have been resolved. Our campaign against unemployment is yielding wonderful results. Specific measures have been taken to reduce poverty. I am sure that both of these major social problems will soon be completely eliminated in Azerbaijan.

Creative work is under way in all districts of our country. I am absolutely sure that the successful implementation of the second program on the development of districts will help us resolve infrastructure, industrial, economic and social issues by 2013. The economic development dynamics shows that we may meet the goal ahead of schedule.

Our economic reforms are receiving good feedback all over the world. Authoritative international financial institutions are giving a high assessment to the reforms under way in Azerbaijan. According to the World Economic Forum, Azerbaijan is the leading CIS state for competitiveness and IT development. Although the global financial and economic crisis is not over yet, Azerbaijan has recently received good feedback from prestigious rating agencies. Our rating has improved. I can say that it is highly important in these circumstances because the ongoing crisis has caused major problems for many countries.

Azerbaijan is one of the countries which have suffered minimum losses in the crisis. Despite the downturn and a sharp decline in the oil price, our economy grew by 9.3 per cent last year. This growth is still continuing. The high assessment of our economic reforms shows again that our successes are based on a thought-out policy. Of course, we are and will be using the energy factor, but there are countries, both in the region and the world, producing and exporting much more oil. The months of crisis have shown that this factor is not crucial. What is pivotal is a thought-out policy, political will, stability, a favorable investment and business environment in the country.

The Azerbaijani state is taking practical steps to develop a market economy, and a solid class of entrepreneurs is already emerging in Azerbaijan.

We will continue our economic policies. This enables us to meet our tasks successfully and pursue a strong social policy. Although certain financial revenues dropped last year, not a single social program has been postponed. All social projects were implemented in time, the rate of the Manat remained stable. This is very gratifying and is the result of our prudent policy. Therefore, Azerbaijani citizens suffered least of all in the crisis.

We will continue pursuing a strong social policy and expanding our economic capacities. We already have extensive financial opportunities, currency reserves and a prudent strategic course. In other words, the processes at home are developing in the right direction. There is no discord in Azerbaijani society as to how we should develop. Our strategic course towards rapid integration into the world relying on our own resources, complete independence, maximum mobilization of domestic capabilities, solution of all tasks we are facing and establishment of effective relations with neighboring and other countries remains unchanged. Our policy in this direction is yielding fruit.

Everything done in the oil and gas sector deserves commendation. Next issues on our agenda will be resolved on this foundation. New opportunities and horizons are opening up before us. We are contributing to energy security both in the region and the continent. I am sure that the implementation of new projects will enable Azerbaijan to produce even more energy in the future.

Our economic capacities are growing. The structure of exports is developing, while imports are reducing. Today we can provide ourselves with key foodstuffs and are even exporting them. As a result of the past and future measures, the development of the oil and gas sector will also be very positive and reassuring.

Our main problem is the Armenian-Azerbaijani conflict over Upper Qarabag. We are working hard on this issue. We have always taken a principled stance in the negotiations. This is confirmed by the talks held in recent years. Azerbaijan has not moved an inch back in principal issues. Our position is based on international legal norms, decisions and resolutions of international organizations, and we are doing everything we can to restore our territorial integrity.

The position of the opposite side is based on its own wishes, which cannot serve as a basis for resolving the conflict. Resolutions of the UN Security Council, decisions of other international organizations are invigorating our stance. This conflict must be resolved within the framework of Azerbaijan’s territorial integrity. All occupied Azerbaijani territories must be freed from occupiers. Azerbaijan citizens, IDPs must return to their native lands, including Upper Qarabag. The Armenian and Azerbaijani communities must live in Upper Qarabag in the status of a high autonomy within the Azerbaijani state. This is our principled position based on international law and principles adopted by the international community.

As you may know, the Organization of Islamic Conference has recently adopted resolutions pertaining to the Armenian-Azerbaijani conflict over Upper Qarabag. They contain very many positive and solid arguments. These resolutions fully support Azerbaijan’s fair cause. A European parliament resolution on the issue adopted a week ago is also based on international legal norms. It portrays Armenia as an aggressor and occupying state. It explicitly states that it is unacceptable to use force to violate the borders of another state and maintain the status-quo. It explicitly states that the status of neither peace nor war cannot last forever and that Azerbaijani lands must be freed from occupiers.

These important events occurred in recent weeks. They further invigorate out stance and show that the international community – the Muslim world and Europe – stick to a common and fair position. We do understand that these resolutions and political steps have unsettled Armenia. Armenian propaganda has suffered a severe blow. Their hysteric reaction is further evidence of that. Otherwise Armenian officials would not have made such ludicrous and unfounded comments regarding the European parliament’s resolution. They maintain that the resolution contradicts the Madrid principles. However, it is fully in line with both Madrid principles and international law. Such ridiculous and flippant comments only show that Armenia side is very concerned. It must take specific steps to find a way out of this predicament.

The illegal “election” recently held by the break-away criminal regime in Upper Qarabag and the assessment of this “election” by the international community is further evidence that the world is rejecting separatism, does not and will not recognize Upper Qarabag as an independent entity.

The Minsk Group co-chairing countries, the EU, the Organization of Islamic Conference, neighboring states, the Council of Europe, the entire international community have condemned this “election”, supported Azerbaijan’s territorial integrity again and openly stated about that. Under such circumstances, Azerbaijan will certainly continue adhering to its principled position. I want to repeat that our position is based on norms of international law and we will not back down from it.

True, our lands are under occupation. This occupation is ongoing, and Armenia’s unconstructive and hypocritical conduct in the talks shows that it is simply trying to gain time and deceive international mediators that it is allegedly engaged in the talks. However, their main goal is to gain time. But they can’t achieve anything by gaining time because time is not on their side.

Regional processes show again that without a settlement of the Armenian-Azerbaijani conflict over Upper Qarabag regional cooperation involving Armenia is out of the question. No other issues can be resolved. Armenia was hoping for the opening of the Turkish-Armenian border, so that it could have some air to breathe and the Upper Qarabag issue could be put on the backburner. However, developments and the principled position of Turkey crushed their plans. Things went as far as the Armenian president saying on a foreign visit that he would invite the Azerbaijani president to attend the opening ceremony of the Turkish-Armenian border. This was a very inappropriate and meaningless remark because it appeared that everyone except for him could understand that the border could not be opened without the settlement of the Upper Qarabag conflict. And life has proved this again. Therefore, to be so self-conceited one, first of all, has to have some grounds. Secondly, one shouldn’t overrate one’s capacities.

Of course, the Armenian-Azerbaijani conflict over Upper Qarabag will continue to be our political priority. We have mobilized all our efforts and will continue to do everything we possibly can to reach a fair solution to the issue in line with international norms, free our lands from occupiers and restore our territorial integrity. We want to resolve the issue in peace and are stepping up our diplomatic efforts. However, it is no secret that we are also building up our military capacity. Azerbaijan’s current military potential enables us to fulfill any task successfully and in a short time. We simply don’t want to resort to a military option. But this option has never been ruled out and we have always spoken about it openly and sincerely. I have no doubt that we will restore our territorial integrity, and there are sufficient grounds for that.

Dear friends, we have lived as an independent country for about 20 years. Over these years we have proved to both ourselves and the world that the Azerbaijani people can live independently. The people of Azerbaijan can live well and rely only on themselves. Independence is measured not only by state attributes. Independence means the ability of a country to pursue an independent policy and protect its national interests. There must be opportunities, political will and economic capacity to protect national interests. The so far short history of our independence shows that we are developing successfully as an independent country. This is confirmed by the development observed in all spheres of life in Azerbaijan. We can see only progress in all spheres of importance – political reforms, successful democratization, construction of a law-governed state, army, economic transformation. This adds to our power. We are confidently moving forward in managing our country. The present-day Azerbaijan is a product of hard work and talent of the Azerbaijani people. This country has been built by us, the people of Azerbaijan. Every citizen must do his best to strengthen this independence, make it eternal and irreversible, so that the Azerbaijani people could be free, independent and prosperous for decades and centuries.

I want to reiterate that we have all the opportunities to meet these goals. Most importantly, we have the political will. On this wonderful day I would like to congratulate the Azerbaijani people on this dearest holiday. I wish all the Azerbaijani people happiness and further successes. Thank you.