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Hence, there were only two practical alternatives left: The first was "the package deal" where they, in one single agreement would return the occupied territories but the Latchin corridor, introduce peace keeping forces along the Karabakh-Azerbaijan border, lift the blockades, return the refugees to their homes and establish buffer zones along the border. What remained to solve was the most difficult task, i.e. the status of Karabakh. Ter-Petrosian was ready to sign such an agreement, but when Karabakh and Azerbaijan rejected the alternative, he was forced to let go of that alternative. The only remaining alternative was the "step-by-step" approach to the peace. The status issue would be postponed to such a moment that the first basic steps had been taken. Ter-Petrosian revealed that this alternative had been accepted by the Azerbaijanis and the Armenians would respond shortly. 26
On October 7, Ghoukasian rejected "all proposed peace plans based on the submission of the region to Baku", advocated the idea of a "federative relation" with Azerbaijan and opposed a "gradual" approach to an agreement about the conflict and instead indicated his interest for a "package solution". 192 Twp days later, sadly enough, the spokesman for the Foreign Ministry of Armenia, Arsen Gasparian, stated that Armenia had in written approved the latter peace plan from OSCE Minsk group "as basis for further negotiations". 193
From this moment on the crisis accelerated. Ten parliament members left the ruling governmental block, "Republic", joined four other parliament members and built the new fraction of "Yerkrapah" (Guardians of the Homeland). They represented the new government-friendly militia, loyal to Defence Minister Vazgen Sarkisian. The Republic block had now 96 of the total 189 MPs. 194
During this time, the leadership of Karabakh, the defence ministry of Armenia, the Yerkrapah block, the interior and security ministry, the opposition, the intellectuals, the majority of the Diaspora organisations and the majority of the Armenian media displayed their opposition and disproval towards the presidential support for the proposed agreement.
Armenia's Prime Minister, Robert Kocharian, openly opposed the proposed "step-by-step" approach and also made it clear that he did not share the views of the president about that the conflict was the main reason to Armenia's economical problems. 196
Discussions between the opposition, the defence minister and the prime minister were followed by the demand of the resignation of the president, demands which were made by Vazgen Manoukian, chairman of the National Democratic Union and the opponent of Ter-Petrosian in the latest presidential election, as well as by Dashnaktsoutyoun and the former national security advisor, Davit Shahnazarian. The political crisis intensified when rapports from the media claimed that a number of recently committed terrorist actions against members of the government had been staged by the ruling party. These actions were intended to create an atmosphere of political crisis so that the president could smear the government and dismiss it. This was followed by the resignation of Sirdaghian from the post of Yerevan's mayor, as well as Alexander Arzoumanian's resignation as foreign minister. On February 2 Arsen Ararktsian announced the breaking up of the parliamentary group "Social Situation". The entire group, as well as 27 MPs from the Republic fraction and a significant part of the Reform group, joined the Yerkrapah block. As the result, the latter become the largest parliamentary group, with 69 MPs against the 56 of the Republic. 199 All powerful ministers, except one, had left the Republic block. The President had no other choice than to resign.
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26) The Armenian Reporter Int'l, Transcript of the Press Conference of President Levon Ter-Petrosian, October 4, 1997, p. 21
192) RFE/RL News, Karabakh President Rejects Minsk Group Peace Plan, part 1, October 8, 1997, p. 134
193) RFE/RL News, Armenia Agrees 'In Principle' to Karabakh Peace Plan, part 1, October 10, 1997, p. 136
196) AFP, Armenian Leaders Disagree over Economic Cost of Conflict with Azerbaijan, December 7, 1997, p. 2
199) Noyan Tapan Agency, Yerkrapah Becomes Largest Deputy Group, February 3, 1998
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