Discussions took place in Moray

Delegates announced that peace would be the only acceptable resolution over the disputed enclave of Nagorno Karabakh.

The village of Craigellachie, in Moray, hosted the first bilateral talks on the issue between the two countries, along with representatives from Georgia.

The three countries also agreed to operate a rotating presidency, starting with Georgia in January.

Both Armenia and Azerbaijan are now committed to ending the feud, which has resulted in the deaths of thousands of people, after Armenians declared their independence from Azerbaijani rule.

'Important step'

Speaking at Moray Council chambers in Elgin, Dennis Sammut, of the London Information Network on Conflict and State Building (Links), said both countries recognised they had made significant progress.

He said: "It is an important step forward in the process of working towards finding a solution over the conflict of Nagorno Karabakh that has killed many people, that has created hundreds of thousands of refugees and has left a scar on the South Caucasus.

"There was a very serious statement made at the end of the meeting by the parliaments, which was that only a peaceful option is acceptable with regards to the solution of this problem.

There was a very serious statement made at the end of the meeting by the parliaments, which was that only a peaceful option is acceptable with regards to the solution of this problem Dennis Sammut Links

"This is very important because there are forces in the two countries which talk about war and the use of force to solve issues connected with the Nagorno Karabakh."

He added that parliamentarians representing practically all the political parties in Armenia and Azerbaijan had been round the table.

"The fact that they were there and were agreeing on some very basic principles on which they want to take the process forward, has made the meeting an extremely useful one, as part of the wider process," he said.

All three countries are beset with regional conflict and face huge political, economic and environmental challenges, but it is hoped this week can be seen as a turning point.

Stephen Nash, the former British ambassador to Georgia, who was also at the negotiations, said: "We have had some progress. It provided a useful framework between the two countries and we will continue this process.

"The agreement that the problem of Nagorno Karabakh could only be solved by peaceful means clearly is a very useful statement.