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Grand Duke Nicholas, with the approval of Alexander II, warmly welcomed Armenian desires for reform in Western Armenia under Ottoman rule, including a form of administrative self-governance in the Armenian provinces of Erzurum, Van and Moush, where the Armenians were in absolute majority.

It is important to note that the Ottoman government at first was also open to these Armenian requests, stinging as it was from the loss to Russia and fearful lest Russians would continue their dominance in the parts of Western Armenia which they had occupied. Hence it was considered more viable to meet the Armenian demands of, for instance, a limited self-governance, in order to keep the provinces within the empire. 10

The most important items in the San Stefano Treaty, dictated by Russia and signed by both parties on March 3, 1878, were those concluding in the independence of Bulgaria, which in those days also included Macedonia. 11 According to the treaty, Russia received the provinces of Kars, Ardahan, Batum and Bayazid, forming part of the Asian territories of the Ottoman Empire. In return Russia would withdraw its troops from Erzurum. However, on the insistence of the Armenians, paragraph 16 was added promising reforms within the Armenian provinces: "Since the evacuation of Armenia, which the Russian soldiers occupy and will be returned to the Ottoman Empire, could create conflicts in its provinces and create difficulties which could damage the relations between the two countries, the Sublime Port assures the immediate creation of administrative self-governments in these Armenian provinces and transfers the rule to them and ensures the safety of their lives and properties against the Kurds and the Cherkeses."

At the requirement of the Ottoman representatives, who were aware by this time of the plans of the Russian government, 12 and were confident in the support of the English government, Grand Duke Nicholas, leading the Russian delegation during the peace negotiations, agreed to include some changes in paragraph 16, so that the word "self-governance" was replaced with the words "reforms and improvements". 13 However, this alteration did not go far enough in the eyes of England, whose government was afraid that Russia would use this paragraph as an excuse not to evacuate the Western Armenian provinces 14, for the implementation of the reforms outlined in the paragraph implied the need for continued Russian occupation, since their presence was the only guarantee for these reforms. Thus the English government reformulated the paragraph in question so that the Russian evacuation would take place immediately and before the implementation of these reforms.

As it turned out, the San Stefano Treaty was never implemented, as the prime minister of England, Disraeli, wished to prevent the weakening of the Ottoman government at any price and therefore would not countenance the implementation of items such as those regarding an independent Bulgaria. Instead, he pressurised the Russians into disregarding this treaty and holding the Berlin Congress to draw up a new treaty.

From the time of the signing of the San Stefan Treaty, and the opening of the Berlin Congress, the policy of England and Disraeli was aimed at guiding the world situation to England's advantage. Thus Russia must be content with Batum, Ardahan and Kars and disregard Alashkert and Bayazid, where the majority of the Armenian population had been eradicated. 15