lvinas); claims UK-administered South Georgia and the South
Sandwich Islands; territorial claim in Antarctica

Illicit drugs: increasing use as a transshipment country for cocaine
headed for Europe and the US

______________________________________________________________________

ARMENIA

Introduction

Current issues: Armenia's leaders remain preoccupied by Armenia's
10-year conflict with Azerbaijan over the Nagorno-Karabakh enclave.
Although a cease-fire has been in effect since May 1994, the sides
have not made substantial progress toward a peaceful resolution. In
January 1998, differences between President TER-PETROSSIAN and members
of his cabinet over the Nagorno-Karabakh peace process came to a head.
With the prime minister and defense and security ministers arrayed
against him, an isolated TER-PETROSSIAN resigned the presidency on 3
February 1998. Robert KOCHARIAN, TER-PETROSSIAN's prime minister, was
elected president in March 1998. Concerns about Armenia's economic
performance rose in 1997 with a slowdown in growth and an increase in
inflation.

@Armenia:Geography

Location: Southwestern Asia, east of Turkey

Geographic coordinates: 40 00 N, 45 00 E

Map references: Commonwealth of Independent States

Area:
total: 29,800 sq km
land: 28,400 sq km
water: 1,400 sq km

Area-comparative: slightly smaller than Maryland

Land boundaries:
total: 1,254 km
border countries: Azerbaijan-proper 566 km, Azerbaijan-Naxcivan
exclave 221 km, Georgia 164 km, Iran 35 km, Turkey 268 km

Coastline: 0 km (landlocked)

Maritime claims: none (landlocked)

Climate: highland continental, hot summers, cold winters

Terrain: high Armenian Plateau with mountains; little forest land;
fast flowing rivers; good soil in Aras River valley

Elevation extremes:
lowest point: Debed River 400 m
highest point: Aragats Lerr 4,095 m

Natural resources: small deposits of gold, copper, molybdenum, zinc,
alumina

Land use:
arable land: 17%
permanent crops: 3%
permanent pastures: 24%
forests and woodland: 15%
other: 41% (1993 est.)

Irrigated land: 2,870 sq km (1993 est.)

Natural hazards: occasionally severe earthquakes; droughts

Environment-current issues: soil pollution from toxic chemicals such
as DDT; energy blockade, the result of conflict with Azerbaijan, has
led to deforestation when citizens scavenged for firewood; pollution
of Hrazdan (Razdan) and Aras Rivers; the draining of Sevana Lich (Lake
Sevan), a re