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MARCH 5-12, 2001 Compiled by the Washington office of Turkish Industrialists' and Businessmen's Association (TUSIAD-US). CONTENTS IRAQ: COMPLAINTS ABOUT TURKEY COINCIDE WITH BAGHDAD'S ATTEMPTS TO BOOST TIES ACCESSION PARTNERSHIP DOCUMENT APPROVED BY THE EU COUNCIL The EU Council of Ministers, following European Parliament’s endorsement, approves accession Partnership Document, Turkey’s key to entering the European Union. The EU Commissioner responsible for enlargement, Gunter Verheugen, said the approval was an important step taken and a major positive signal sent to Turkey from the EU. Verheugen said that the approval should be interpreted as a support for political and economic reforms in Turkey. The EU Commission also stated that they expected the National Program to be endorsed by the Turkish Government and sent to Brussels as soon as possible. The EU Council had approved the Framework Regulation Agreement that provides the legal base of the document at the end of last month. The approval was made public in the Official Gazette. Turkey must now prepare a national program for accession that mirrors the Accession Partnership, in March. The progress along the national program will be reported by the EU Commission’s annual ‘Regular Report from the European Commission on progress towards accession’ on the basis of the Copenhagen criteria, as done for all applicant states. The EU will then complete its evaluation of Turkey’s national program and is expected to confer all financial assistance to Turkey, as guaranteed. /NTVMSNBC/Turkish Daily News/ NEW PERIOD IN THE TURKISH ECONOMY: NEW ECONOMIC PROGRAM EXPECTED IN DAYS The critical process in the economic fore started as Turkish state minister in charge of economy, Kemal Dervis returns from the United States. Mr. Dervis met with the US Secretary of Treasury, Paul O’Neill and IMF/World Bank Executives to pledge support for the new economic program , which is under preparation. The next few days are important to regain confidence and “fix the shattered economic vase.” Preparation of the new economic program will be accelerated during these days, as Ankara reveals that it will call on various segments of the population to a meeting for their support. Representatives of the working class, employers, merchants and the agricultural sector will all have a say in the new program to be drafted, reports Ankara. Initial clues about the new program indicate the emphasis on three main topics; the status of state owned banks, domestic debts and inflation goals. Reports suggest that the new program would involve a restructuring of some of the domestic debt through a swap with foreign currency denominated bonds. Mass circulating daily Milliyet reported that, as part of the new program, the Banking Regulatory and Supervisory Board would be given full authority over bank shutdowns and resolutions. The new program will be based on an inflation target of at least 40 percent, up from the current 10-12 percent, Milliyet said. Also the government would quickly pass a law allowing the privatization of 51 percent of fixed-line operator Turk Telekom. The reports indicate that the rehabilitation of the banking sector (fate of state-owned banks and of those banks under the Savings Insurance Fund) takes precedence in this process. The appointment of the new chairman to the Banking Supervisory Board is another topic that is yet to be resolved. Propositions are put forward to merge Emlak, Halk and Vakiflar Banks under the Ziraat Bank roof or to merge Ziraat and Emlak under Ziraat Bank’s roof. On the other hand, Turkish Prime Minister Bulent Ecevit stated that drafting of the country’s new economic program would take a few days longer due to certain delays with respect to the problems faced regarding the banking system. /Milliyet, Hurriyet, Turkiye, Turkish Daily News, NTVMSNBC/ For a portrait of Mr. Kemal Dervis please check Spring 2000 Issue of Private View of TUSIAD Publications at www.tusiad-us.org ECEVIT CONCEDES TO IMF REALITY AND SAYS THE FLOATING RATE SYSTEM HAS A POSITIVE IMPACT ON ECONOMY Backing off in a self-created debate over the International Monetary Fund, Prime Minister Bulent Ecevit said on Saturday that the IMF was an inevitable global reality and should not be ignored while seeking international resources. Ecevit last week accused the IMF of misguiding the government over economic policy and thus contributing to the current crisis. He has said the government would not accept all policies proposed by the IMF any more and instead filter them. Meanwhile, Ecevit suggested that the float of the lira could give a considerable boost to the economy, particularly to exports and tourism sectors, provided that its opportunities are made well use of. He predicted that export revenues would increase thanks to the relative slump in the lira's value. Since left to a free float on February 22, the lira has lost about a quarter of its value against dollar. /Milliyet, Turkish Daily News, NTVMSNBC/ CHENEY CRITICIZES TURKEY ON IRAQ IRAQ: COMPLAINTS ABOUT TURKEY COINCIDE WITH BAGHDAD'S ATTEMPTS TO BOOST TIES American Vice President Dick Cheney said that the American Administration is soon to outline its new policy on Iraq. He was particularly critical of those countries that are not keeping their borders under tight control, thereby allowing Iraq to carry out trade and earn revenue. In this manner, Mr. Cheney was indirectly criticizing Turkey, which has been purchasing fuel oil from Iraq. Deputy Foreign Secretary Edward Walker, on a recent visit to Ankara, had tabled these matters during his talks with Turkish foreign ministry officials. All aspects of the Iraqi issue are expected to be discussed by both sides during Turkish Foreign Minister Ismail Cem’s visit to Washington at the end of March 2001. On the other hand, Iraq complained to the Arab League over Turkey’s logistic support to American and British warplanes. Iraq denounced these attacks and called on Turkey to reimburse Iraq for damages caused during the operations. At the same time, Iraq is also giving out signs that are encouraging to boost ties with Turkey while Ankara is more than willing to reciprocate, according to Turkish government sources. A "highly powered" Turkish business delegation led by Foreign Trade Undersecretary Kursat Tuzmen flew to Baghdad on Monday in a bid to increase commercial links between the neighbors. Meanwhile Iraqi Oil Ministry Undersecretary Faiz Abdulla Shahin told the El Jumhuriyeh newspaper in Baghdad on Saturday that the second pumping station in the twin Iraqi-Turkish pipeline would be repaired by the second half of 2001 and the capacity of the pipelines would increase to one million 650 thousand tons a day. On the other hand, the semi-official Anatolia News Agency reported from Washington on Saturday that the American administration was bargaining with countries neighboring Iraq to cut down their trade with Baghdad in return for U.S. financial compensation. / NTVMSNBC, Turkish Daily News/ HEAVY AGENDA OF THE CONSTITUTIONAL COURT The Constitutional Court faces a rigorous week with the pending Virtue Party closure case, as well as the debate over various articles of the legislation on the conditional release of criminals. Facing a potential closure, the deadline for the Virtue Party to present its preliminary defense against the additional indictment delivered to the Supreme Court, has been set as March 12, 2001. This date is the end of the 15 days provided to the party by the Constitutional Court, to prepare its defense against all accusations. The annulment of the Legislation on Conditional Release and Penalty Deferment by local lower courts are also on the Constitutional Court’s agenda next week. The High Court has already inspected and evaluated 106 of the 180 applications by these courts. The Court will also announce its decision on the case calling for the cancellation of the legislation, stipulating an autonomous status before privatizing the state owned Vakifbank. /NTVMSNBC/ FOREIGN MINISTER CEM CRITICIZES NATO AND THE EU POLICIES OVER BALKANS Speaking on a TV program, Minister of Foreign Affairs, Ismail Cem evaluated the recent developments in Turkish foreign policy. Cem mentioned five points during his speech: First, he criticized NATO and EU policies over the Balkans. He said, "The way the Western countries handle the Balkan issue is wrong. Countries, which are not even in the Balkans, and know nothing about the Balkans are engaged in formulating Balkan policies. This is totally wrong." Second, Cem stated Turkey had no problems with Azerbaijan, emphasizing that Baku-Ceyhan pipeline project was going well. He said, "Discussions over the price of the natural gas are continuing." The third issue Cem mentioned during his speech was the US policy over Cyprus. Stating that he found the US policy over Cyprus inefficient, Cem said the US stance must be more objective. Fourth, referring to the genocide monument erected in Sevres, Cem said, "It is totally unjust and inconsiderate. Turkey's stance on the so-called Armenian genocide was correct." The last issue was Turco-EU relations. Cem stated relations were going well, adding that certain problems were inevitable as Turkey was a different country from the general European character. He added, "These differences make Turkey unique." /Cumhuriyet/ AGREEMENT ON NATURAL GAS DELIVERY FROM AZERBAIJAN Azerbaijan's President Haydar Aliyev and President Ahmet Necdet Sezer will sign the agreement protocol for the sale of natural gas from Azerbaijan. According to the agreement, Turkey will receive gas as of 2004. The agreement will be valid for 15 years. Energy and Natural Resources Minister Cumhur Ersumer said Azeri gas was the cheapest agreement signed so far. Ersumer said, "This part will be constructed parallel to the Baku-Ceyhan pipeline." /Milliyet/ ARMENIAN AND TURKISH HISTORIANS TO DISCUSS HISTORY Turkish and Armenian historians will attend a conference in Germany on March 23-25, on the so-called genocide. A similar conference will be organized in Istanbul and will be attended by 60 academicians from various countries including Turkish and Armenian historians. During the conference, the so-called Armenian genocide claims will be discussed. The conference entitled 'The Heavy Burden of History' will be organized by Muelheim/Ruhr Protestant Academy, German-Armenian Community and the Turco-German Association of Social Sciences and Humanity. /Aksam/ |
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