Peace and stability in this region, a crossroads between Europe and Asia, is in the interest of the international community and the cause of world peace

Colin Powell

Mr Powell was speaking at the start of peace talks in Key West in Florida between the Azerbaijan President, Heydar Aliyev, and his Armenian counterpart, Robert Kocharyan.

The two former Soviet republics have been involved in a dispute over Nagorno-Karabakh, a tiny republic legally part of Azerbaijan but controlled by Armenia.

The two countries fought a three-year war over Nagorno-Karabakh which ended with a ceasefire in 1994 - but no final peace.

Resolution

Mr Powell stressed that "the US is committed to facilitating a mutually acceptable settlement of the Nagorno-Karabakh conflict".

"I think my personal presence as the secretary of state of the United States and representing the president shows the interest we have in the region," said Mr Powell.

But he acknowledged that reaching a resolution would not be easy, calling the Key West Talks "just one step on a long road".

Relations between Armenia and Azerbaijan have been in deadlock since a ceasefire in 1994 left the Armenians in control not just of Karabakh but large parts of surrounding Azeri territory.

It is one of the most intractable disputes on the territory of the former Soviet Union, but there is at last a glimmer of hope for a settlement.

Armenia crippled

Kocharian led the war effort against Azerbaijan

Meetings have become frequent between President Robert Kocharian of Armenia and President Heidar Aliyev of Azerbaijan as they struggle to end a conflict which has brought poverty and misery to both their countries.

Six years of war killed 35,000 people, created some 750,000 refugees and left Armenia in control of almost 20% of Azeri land.

Armenia was the victor, but it is now crippled by an economic blockade imposed by Azerbaijan and neighbouring Turkey.

Room for manoeuvre is cramped by nationalist opposition to concessions.

Much may depend on how secure Mr Kocharian and Mr Aliyev feel at home.

Antagonism

The dispute has fuelled hatred for generations

Both have strengthened their political power bases over the last year, and Washington is dangling the carrot of massive aid to both countries if they reach a settlement - a glimmer of hope yet, but still little more than that.

Mutual antagonism runs very deep.

Mr Aliyev says Karabakh must be returned to Azerbaijan.

The response of the Armenians of Karabakh to that is - only over our dead bodies.