Thank you, Mr. Chairman.

I would like first of all to welcome Mr. Oskanian and thank him for taking the time to share his government's views with the members of the Permanent Council.

As a Minsk Group Co-Chair, the United States commends President Kocharian for agreeing to send a Personal Representative to the talks the Minsk Group Chairs will sponsor this May in Prague, and thanks Foreign Minister Oskanian for supporting this new format for the peace process.

This initiative is a necessary supplement to the ongoing dialogue between Presidents Kocharian and Aliyev, as well as the Co-Chairs' regular travel to the region. These talks will create a new venue to advance the peace process, but the most serious work in the peace process remains before the Presidents of Armenia and Azerbaijan.

Last year, the two presidents made significant progress toward a comprehensive settlement during their meetings in Paris and Key West. Over the years, Presidents Kocharian and Aliyev continued their direct dialogue, meeting several times on the margins of international conferences. Both leaders received the Minsk Group Co-Chairs on several occasions in the past year, exploring options for resolving their remaining differences.

Both Armenia and Azerbaijan will soon begin preparing for presidential elections -and possible transitions of power - in 2003. The coming period of democratic transitions lends a new urgency to the search for a comprehensive political settlement of this conflict.

The United States urges both parties to commit themselves to finishing the work begun in Paris and Key West this year. We strongly encourage Presidents Kocharian and Aliyev to dedicate themselves to reaching a comprehensive settlement based on mutual security and compromise when they next meet for direct discussions.

In return, as a Co-Chair of the Minsk Group, the United States pledges to apply its full resources and creativity to support the Presidents in this task.

Thank you.