Group of opposition parties said would not abandon 6-month boycott of parliament, despite having suspended campaign of public demonstrations aimed at ousting President Robert Kocharian. (See also Nagorno-Karabakh below.)

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.

Authorities closed Juma mosque in Baku and detained dozens of worshippers, saying congregation occupied mosque illegally. Mosque’s imam, Ilgar Ibrahimoglu, prominent government critic. Aydin Guliev, editor of opposition daily, said was abducted my masked men, beaten, and told to cease journalistic activities, while second opposition journalist, Eynulla Fatullayev, attacked by 2 men Baku 26 July. Political manoeuvring behind scenes continued, as Minister of National Security Namik Abbasov dismissed by President Aliyev. (See also Nagorno-Karabakh below.)

Parliamentary enquiry continues into claims previous government deliberately misled public in blaming Basque separatists for 11 March Madrid bombing. Four ETA suspects accused of planning attacks on Basque police arrested 24 July. Basque and Spanish leaders resumed official relations after 3-year break.

Opening of reconstructed Old Bridge in Mostar 23 July attracted much regional and international attention. Destroyed by Croat forces in November 1993, bridge seen as symbol of reconstruction and reconciliation. Roman Catholic bishop, Ratko Peric, boycotted ceremony, demonstrating his continuing opposition to re- integration. Rajko Banduka, former aide to Ratko Mladic, arrested 23 July; Bosnian Serb leaders Mladic and Radovan Karadzic remain at large.

Subdued celebrations in North 20 July for 30th anniversary of Turkish invasion. EU Commission proposed trade and aid package for Turkish Cyprus to reward “yes” vote to UN reunification plan. Decision on package reportedly postponed until September following Greek Cypriot objections. Greek Cypriot government announced series of measures to unilaterally ease trade between North and South and build confidence in security on island.

Risk of conflict remains high as Tbilisi continues to pressure breakaway region of South Ossetia in hopes of reuniting it with rest of country. Sides exchanged small arms and artillery fire 29-30 July. Georgia intercepted Russian military convoy in region and confiscated equipment 7 July. Several dozen Georgian troops captured by South Ossetia next day; all but 3 later released. Armed skirmishes and war of words continued throughout month. Georgian president Mikheil Saakashvili threatened to renege on 12-year-old agreement that ended original conflict, and called for change in mandate of Russian peacekeepers, who he accused of bias toward South Ossetia. Georgia seeking to apply economic pressure on Ossetian leadership through control of Roki tunnel, major trade and smuggling route connecting Russia and South Ossetia.

Press freedom remained hot issue ahead of September parliamentary elections as court ordered closure of independent paper Assandi-Times, and opposition complained media only covering campaigns of pro-government parties. Opposition journalist Askhat Sharipzhanov died 20 July after reportedly being hit by car; colleagues questioned circumstances.

Parliament challenged UN by adopting changes to constitution 8 July; included right to call referendum on independence and to assume control of international relations and public security from UN. To become law amendments must be signed by Head of UN Mission in Kosovo (UNMIK). Senior figures from Serb and Albanian communities called for establishment of new ministry for refugees and human rights, surprising UN. Tensions reported inside President Rugova’s LDK party over election list and emergence of shadowy internal security structure: “Homeland Security”. New UN head of mission, Soren Jessen-Petersen, scheduled to take office 3 August. Drastic summer electricity and water cuts possibly worst in 5 years of UN governance.

Jailed opposition leader Feliks Kulov threatened hunger strike - and supporters country-wide protests - if authorities refused to consider Kulov request for early release.