Hello everyone. I am very glad to see your relaxed faces. I hope you had good holidays over the summer. I have not held a news conference for a few months and I think you have questions. I also want to review recent developments.

Probably all of you travelled around Georgia in the summer and noticed many changes happening in our country. If you visited the Black Sea coast and went there by car, you could not fail to notice that for the first time in the last 15 years there were no potholes on the road from Tbilisi to the coast. The road has been repaired. If you travelled by train, you could see a new, comfortable Ukrainian train on which my family and I travelled, too. If you visited Borjomi, you could see the most beautiful and modern park in the former Soviet Union, although it still needs some improvements.

I would like to say that we are following a plan. We should understand that we are not doing anything in a chaotic way. From the very first day we came to power, we had a plan of what to do. The first stage was reforming the state apparatus. Nothing could be changed in this country without a state apparatus. We started our purge from the chancellery, police, prosecutor's office, tax department, and our armed forces have been created from scratch. Reforming the state apparatus was the first stage, there could be no changes without that. We spent the first year on the new patrol police force, new ministries, a new tax service which has resulted in a manifold increase in the collection of taxes, so now we have some money to spend.

The second stage of our development, which started this year, in the spring, is about creating infrastructure in Georgia, roads and energy facilities.

When we finish this second stage, although this is a permanent process, because the new highways will need repairs, and electricity consumption will be constantly rising, but as soon we have these two stable factors against the background of very low corruption, our main task will be economic development in general and creation of jobs. This is the third stage of our reforms. This is a three-stage programme. If our business sector is active, we will be able to create hundreds of thousands of new jobs through cooperation between the state and the business community.

These three stages will enable us to achieve our main goal, the unification of Georgia. It will be possible only if we pass these three stages in a correct and timely manner.

A few days ago the Gonio firing range was handed over to us by Russia. It went almost unnoticed. You may remember that when I first raised this issue in Batumi a year ago, many people in one of our neighbouring countries described my statement as an act of provocation. They said it was impossible and it would never happen. So, less than a year has passed since then, and the Georgian flag is already there. We have recovered several hundred hectares of excellent beaches. We have restored Georgia's sovereignty over this land. Now we are building a new international airport nearby, in Batumi, and we are building another international airport in Tbilisi.

This is what I wanted to say. Now I am ready to answer your hostile questions [smiles].

[Question] Irma Gegechkori, Imedi TV.

Will the current government crisis in Ukraine affect Georgian-Ukrainian relations? Have you spoken to President Viktor Yushchenko on the phone?

[Mikheil Saakashvili]

Yushchenko is my friend. In general, the situation in Ukraine will of course affect the situation in Georgia because Georgia's revolution and its development after the revolution would have been impossible without Ukraine's success. Ukraine is helping us politically. It is very important. You know that we have made a historic decision to create a new coalition of democratic states. Georgia and Ukraine have now been joined by Lithuania. We are working with other countries. Poland is actively involved too. By taking these steps, Georgia will obtain international guarantees to protect the country's integrity, our freedom and development prospects.

We have close economic relations and we cooperate in many other, sensitive spheres too. Therefore, Ukraine's success is our success. Ukraine's failure would negatively affect Georgia. I believe that Viktor Yushchenko's decision was very brave. I have excellent relations with [former Prime Minister] Yuliya Tymoshenko as well, but Viktor Yushchenko is the main player there. His courageous decision cannot but bring about good results. He said that he was going to consolidate the government as a united team. We do not have this problem in Georgia. Our government has always been united. It seems that there were certain problems in Ukraine, as the president himself said. I cannot say more. I just want to say that in my opinion Ukraine has enormous potential. Their success is absolutely crucial for us.

I think that Ukraine has a great future. For us, it is so important what is happening there, their revolution was so important, our friendship is so important that sometimes I find it hard to believe that this is really happening. God save us from something going wrong there. I am an optimist because I know these people. I know Viktor Yushchenko. He has great potential. He is very competent and principled man. I also know that he and I are stuck in the throats of many people, so to speak, you can see it every day, but they will not be able to harm us. Everything will be all right.

[Question] Malkhaz Oniani, Public TV.

According to the Georgian authorities, the process of militarization in Abkhazia and the Tskhinvali region [South Ossetia] has become more active. If this is true, is there any threat of destabilization? Is it possible that Georgia may reject the current peacekeeping format? Are you going to propose a new peacekeeping format at the UN General Assembly in New York?

[Mikheil Saakashvili]

Of course we are closely watching developments in Abkhazia and the Tskhinvali region. I have to say that the ongoing process of militarization there, which, let's say things as they are, Russia is facilitating, and the process of handing over new arms is a very unfortunate fact. I don't think this is in Russia's interests. This is a response to Georgia's strengthening and development in general.

I think that we should find a new form of relations with Russia. There is no Ossetian problem in Georgia. There is a problem in Georgian-Russian relations with respect to certain territories. I have repeatedly said that Russia is a great country with lots of territories, but its borders certainly do not lie on the Inguri river or the Ergneti market. Russia too knows this very well. We have to clarify our relations with respect to these territories. I am certain that we can organize a high-level international conference on South Ossetia with the participation of the Americans. For the first time in many years, the Americans have expressed their readiness to get directly involved in the settlement of conflicts in Georgia. We are ready to take part in the high-level conference, together with the Americans, the OSCE and the Russians, which will finally resolve the issue of a peaceful settlement in this region. This will be the first stage.

The main goal of my life is Abkhazia. I am not going to slow down, we are working on this very actively, too.

We are no longer afraid. We know it and they know too that we are able to respond to any act of provocation. However, we will do everything we can to avoid armed confrontation. Unfortunately, while Georgia and our allies in Washington and elsewhere are actively working on this, the other side is not yet working on this issue. I raised this issue in my conversation with [Russian] President Putin. Now we are waiting for a more pragmatic answer from them.

These territories cannot be kept outside Georgia's sovereignty, that is not achievable. Any attempts to draw parallels with other countries will fail. These territories are parts of Georgia, they were parts of Georgia and they are parts of Georgia today in the eyes of the whole world, and they will always be. So, the sooner these problems are resolved, the better for everyone. On the other hand, the stronger we are, the sooner these problems will be resolved. Time is on our side. We are in a hurry, I am in a hurry. As you know, I am not a very patient man, but it turns out that my team-mates and myself, you and our public have a lot more patience than others thought. It is not easy to drag us into any kind of provocation. So, we are growing, but, on the other hand, everything has an end.

A few days ago I visited [the village of] Anaklia [in Zugdidi District]. I was simply interested to see the excellent beach there. I travelled on a motor boat from Kobuleti and then some fishermen helped us. I was there with one of my bodyguards. The population received us very well. For the first time this year, the number of people visiting Anaklia doubled or tripled, just like in Ajaria, although conditions in Anaklia are worse. There is a post of the Russian peacekeeping force there, near the family which I was visiting, in the centre of Anaklia, in a former sanatorium. I did not notify anyone in advance. So, when these soldiers saw that we were there, they were put on alert and assumed combat positions. It was quite funny to look at them, you know, but this is absurd. This is Georgian territory, but when the Georgian president arrives, troops are put on alert. You can see what kind of situation we have inherited.

Therefore, we, together with Russia, should resolve this problem and get out of this embarrassing and inexplicable situation. We want to resolve everything peacefully, but, as you know, every issue in history has its dialectic and logic. Just as we resolved the issue of the pullout of the Russian bases, we will resolve all other controversial issues between Georgia and Russia. These issues were not created by the current Russian leadership or by us. However, these problems have become deeper as a response to Georgia's strengthening. But these problems will be resolved.

I repeat, for the first time, the Americans have said that they will get directly involved in the peace process. This has been published in the foreign press. Our partners in Russia know this too. So, we all should be working together on this issue. The status quo cannot be maintained. Everything should be resolved peacefully and we will prevent acts of provocation, but the status quo cannot be maintained. If someone thinks that they can keep us under their feet as long as these problems are unresolved, they are very wrong. Everyone with common sense understands this.

[Question] Rusiko Machaidze, Rezonansi newspaper.

Mr President, you have described Georgia's achievements over the past year, but in recent months pressure on the freedom of expression has emerged as the main problem. What can you say about that?

[Mikheil Saakashvili]

I want to tell you that I am proud of the freedom of the press in Georgia. Moreover, democracy is the best system generally, for the whole world, and especially for our country because our people are very smart. Why is democracy the best system? Because smart and gifted people can realize their abilities well while fools can express their foolishness very well too. This is an ideal situation. Why should one keep fools from expressing their foolishness?

By the way, I want to tell you a story I heard from a journalist. What is the difference between some Russian TV channels and your [Georgian] channels? When a person in a Russian province watches TV, he thinks: Well, I'm not doing particularly well, I don't feel well, roads are not being repaired around here and the economy is not developing, but at least the country as a whole is doing well, so I am happy. When our people watch Georgian channels, they think: Well, roads have been repaired, my pension or salary is paid on time and increasing, my children's school has been refurbished, and I enjoyed good holidays this year, but the situation in the country seems so awful. That's the difference [laughing]. You know that this is true. This is an ordinary situation. In a democracy the press is always hunting for negative stories.

This translation is published with permission from BBC Monitoring, Reading UK

Communications Office
of the President of Georgia