Monday night President Robert Kocharyan and Stepan Demirchyan, his challenger in tomorrow's Presidential Election runoff, faced each other and six journalists in the first live Presidential Election debate in the history of the country.

According to Public Television authorities, almost 100 percent of its estimated 2.5 million viewers tuned in to hear what the candidates had to say in the two-hour plus debate.

The debate had been announced on Sunday, but as late as 7 p.m. Monday - with the event scheduled for 9:30 - Demirchyan was saying he would not participate because the format favored Kocharyan.S

Demirchyan said having six journalists present questions would not be a debate but a "Kocharyan press conference", and said he would only participate if the two faced off on their own in front of cameras.

Demirchyan campaign staff today told ArmeniaNow that the candidate changed his mind after television stations started reporting that he'd backed out and suggesting that he was afraid to face Kocharyan.

Many here are now saying Demirchyan should have stuck with his decision to boycott, saying that Kocharyan proved a more confident politician and more composed public debater.

The general structure of the program - which began about 9:30 p.m. and ended about 11:45 p.m. - allowed six television journalists to ask one question each, after which the candidates were given unlimited time to answer and rebut.

ArmeniaNow reporters monitored the debate to report the candidates' answers in four significant topics of the Decision 2003 runoff.

Relations with Azerbaijan and Turkey

Demirchyan: "The brief answer is (relations) could not be at the expense of our national dignity . . .

"We consider positive that the fact of Armenian genocide was recognized in many countries. We must create friendly relations with all the countries in the region.

"The fact of recognition of the genocide is positive and in this case we have to mention we had been fighting for that in Soviet times and after that as well as Diaspora.

"As for the relations with Azerbaijan it is obvious the relations will be settled only after the issue of Karabakh is resolved.

"I consider the fact that Karabakh is not a part of negotiations, that it has been out of negotiations, as a negative.

"The Karabakh-Azerbaijan conflict today is regarded as Armenia-Azerbaijan conflict and it supposes some concessions.

"Our position on that issue is very concrete. The issue must be resolved in a peaceful way. The Armenian territory can not be a subject of bargaining. Everything must be done in order to make Karabakh as a part of the negotiation. And for us it will be acceptable whatever solution which is acceptable for the people of Nagorno Karabakh.

Kocharyan: "That was a very interesting comment. The conflict of 1997 took place because of that. At that time the authorities said the following: 'The option which is acceptable for Karabakh is acceptable for us.

"That was the position which resulted in Armenia finding itself under serious pressure. The situation was developed when an entity which was not recognized by the international community does not have recourses to fully struggle. That is invitation for the pressure. And that was a reason why in 1997 we got proposals which were unacceptable. That was a reason that we had the Lisbon Treaty.

"As for the cooperation with Azerbaijan I can understand that Demirchyan has not been involved in such processes.

"There are two approaches. One is adopted by us which US and the European community had been trying to put in action was the following: Not to wait until the issue be settled and then cooperation, but to undertake cooperation which created favorable conditions for the settlement. That position is very favorable for us. That position allows us to have supporters on behalf of the European Union and the different ways of cooperation as cooperation in transportation field, journalists exchange, the problems concerning water in boarding regions.

"The thing is that: to create an environment which will decrease tense relations and to some extent make easier the acceptation of a future difficult solution."

Social conditions in Armenia

Demirchyan: "It is obvious first of all working places must be established and socially aimed policy must be put into practice. Today society is extremely polarized; this polarization reaches its extreme points. In this condition it is particularly important to have a just fight against corruption, bribery and injustice.

Kocharyan: "I can provide you with figures that are not government figures, but results of the World Bank examination. In 1997-2001 the number of people in extreme poverty in Armenia was a little bit more than 26 percent total. It diminished to 17 percent within the recent five years.

"In my program there are mentioned precisely 30-40,000 jobs, support for small, medium businesses and establishment of farming and oriented social policy. We have set a family allowance and we will improve this idea of the family allowance every year.

"The income difference between 20 percent of rich and 20 percent of extremely poor five years ago was 39 times as much; now it is 16 times as much. In case we will be able consistently to continue the policy, we will have significant changes in coming five years.

"Social policy aimed at poor layers of the society. We elaborated such a program together with international financial institutions and that program proposes both significant financial investments and very important steps to regulate those issues. Our nation will necessarily feel fruitfulness of those steps. We say eight to twelve percent economic growth annually, which means we will undertake serious steps to increase pensions and salaries every year and so on. We not only announce, but also say that we have a three year period behind. The way we passed, the experience, and already elaborated program are the best guarantees we could have."

Economic cooperation in the region and Europe

(Candidates were asked their opinion of Armenia joining EurAZES, the European Economic Cooperation, the future of the Commonwealth of Independent States and positions on general cooperation.)

Demirchyan: "I am for integrative processes. If necessary Armenia will join (EurAZES). But we have to consider this according to the subject. Today we first have to enlarge and deepen our relations with Russia. We were and we are for that. At the same time we welcome integrative processes. I accept ruble zone, but all this is subject-based conversation . . .

(Journalist Aram Safaryan interjected: "We are a member of the World Trade Organization. Members of the are not members of that organization. This is a very serious issue, and there is a problem with signing it. The deadline for signing expires in the end of August or in the beginning of September, and Armenia has to determine its position.")

Demirchyan: "This is rather important issue, it must be discussed in a serious manner and there must be decisions made regarding that: One can think of this as of a position."

Kocharyan: "I didn't understand Mr. Demirchyan's position regarding this. One can consider serious discussion as a position?"

Demirchyan: "Yes, one can."

Kocharyan: "We became a member of the World Trade Organization, but there are other unions in the framework of that organization - third countries, which so to speak have more free trading regimes with each other. For instance, European Union.

"All the countries of the European Union are members of the World Trade Organization, but they have this kind of cooperation. EurAZES proposes certain steps. Today we are starting important processes with EurAZES countries. We applied for the observer status and now we are considering the ways to combine our duties to the World Trade Organization and with the EurAZES' rules of the game. It is possible to find that principle, and become a member in the framework of this principle. It may not be easy, and there may be a necessity to establish special commission and to implement some works concerning all the products of those trading regimes. I am sure we are able to find this principle."

Concerning accusations following the preliminary election

Demirchyan: "I see falsifications of the authorities and of media which supports authorities and in general authorities' supporters. And I have that sense of proportion; however, we don't see the proper indulgence from the authorities, and proper approaches. I, myself, am against extreme demonstrations. But we were and will always be of principal in our challenges. So when we come to power you will see how polite our relations will be."

Kocharyan: "You know, I say one thing. Not only did I not overstep the limits during agitation campaign but there wasn't even one measure, one mass meeting, with my participation during which one of those who held a speech had overstepped limits or abused some other candidate. I just warned beforehand all my supporters not to dare to talk using terminology or curses or some other suchlike manifestations.

"Yes, maybe Mr. Demirchyan himself never said that but people standing next to him on the same stage overstepped all possible and impossible moral limits and I don't know if it is, let's say, verbal understanding or assignment of parts then it's clear. But if not, if it is Mr. Demirchyan's principal approach then he doesn't control the situation or his associates don't regard him as their leader and don't listen to him.

"So it is one of those two factors. . . . if he doesn't control the situation then it is worse for the candidate to the Presidential post. If in that case you don't control that small team how will you control the country? One must be able to govern on wider level and be responsible for the decisions he makes. In this case, of course, there are formulations of questions as there were calls full of sever anti-constitutional abuses at his presence. That's it."

Demirchyan: "First of all, I'm against personal abuses. You say that it's not me, who says that but others. Then believe that during agitation campaign such calls were sounded not by people standing next to me but by ordinary people. We never do that at our time. You say you don't allow such calls but Public TV does that for you during its so-called black PR. Those newspapers, which support you, and others. So there are much more abuses. But we, of course, don't pay attention to all of that. Generally I think it's not normal when you talk using abuses and curse."

Kocharyan: "But hadn't it happened in your presence?"

Demirchyan: "You know that sometimes some emotional speeches are held and one shouldn't make conclusions taking into account those speeches and saying that the team is not governing and how will it be in charge of the country. We will be governing very well. Together with that team we will be governing well and normal. And have you made agreement with Public TV concerning law violations, black agitation and anti-propaganda taken place during last three days? Has there been mutual agreement?

Kocharyan: "I want to know facts."

Demirchyan: "I'm talking using facts. And what should people do when they are illegally arrested, when activists put pressure on them and different kinds of pressure on different levels."

Kocharyan: "I can just say the following. That line of conduct, about which I have mentioned, started not three days ago or four days ago, it had started during main agitation campaign from the moment when Aram Sargsyan had joined Mr. Demirchyan with his approaches. That was those days approximately one month ago. Those days nobody had been arrested. Everything was fine. Everybody had opportunity for Public TV and opposition had more hours for holding speeches on Public TV, all candidates had the same opportunity. And everything we had been watching on TV for hours I just consider to be violation of all ethical norms. So let's not attach that line of conduct to last three-four days and let's realize very clearly when it has started. I accept that you with your character and nature are more balanced person but after that unification, aggression has appeared."