Armenian and Azerbaijani foreign ministers met twice early December, but no significant progress reported.

UN General Assembly agreed to include item on “occupied territories of Azerbijan” in its agenda, debating Azerbaijan-drafted resolution 23 November but deciding to suspend vote until unspecified later date. Azerbaijan and Armenian foreign ministers met Berlin 19 November; agreed to continue talks.

No progress reported in dispute.

Despite rising anti- Armenian sentiment in Azerbaijan, President Ilham Aliyev and Armenian counterpart Robert Kocharian met 15 September Astana to discuss Karabakh; both refused to comment on progress of talks.

Public statements from Azerbaijani officials continue to indicate hardening of position on Karabakh, while no progress reported after 29 August foreign ministers meeting Prague. Local elections held 8 August in disputed region, sparking angry reaction from Azerbaijan. Opposition candidate victorious in 22 August run-off election for mayor of Stepanakert.

Rumours circulating about possible softening of Armenian position in internationally mediated negotiations with Azerbaijan. Turkish paper reported Turkish foreign minister Abdullah Gul as saying Armenia willing to discuss return of occupied Azerbaijani territories surrounding Nagorno-Karabakh.

Armenian and Azerbaijani forces exchanged fire in several incidents 6-8 June, killing at least 2. Peace talks remain frozen.

Tenth anniversary of ceasefire between Azerbaijani and Armenian forces passed 12 May, with solution as distant as ever.

Some movement in peace process as Armenian president Kocharian and Azerbaijani president Aliyev met in Warsaw 28 April; foreign ministers expected to meet in May; and U.S. named Steven Mann, formerly state department special envoy to Caspian, as new co-chair of OSCE Minsk Group, replacing Rudolf Perina.

Armenian and Azerbaijani officials resumed “did so, did not” debate over whether negotiators agreed on Nagorno-Karabakh settlement during 2001 Florida peace talks.