Compiled by the Washington Office of

Turkish Industrialists' and Businessmen's Association (TUSIAD-US)

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CONTENTS

§          NEGOTIATION PROCESS STARTS IN CYPRUS; DENKTAS MEETS VERHEUGEN

§          SCHROEDER: TURKEY CAN TRUST GERMANY FOR EU SUPPORT

§         ERDOGAN ANNOUNCES AKP MAYORAL CANDIDATES FOR MARCH LOCAL ELECTIONS

§          TURKEY READY TO SUPPORT NATO'S NEW MISSIONS

§          GUL HEADING FOR MOSCOW FOR SECURITY, BUSINESS TALKS

§          UN TO LOOK AT BOOSTING PEACEKEEPERS ON CYPRUS

§          POLL INDICATES THAT GREEK CYPRIOTS SAY NO TO ANNAN PLAN

§          PRODI WELCOMES ANKARA’ S EFFORTS ON CYPRUS

§          VERHEUGEN PRESSES GREEK CYPRIOTS TO BE MORE COMPROMISING

§          TUSIAD HIGHLIGHTS

NEGOTIATION PROCESS STARTS IN CYPRUS; DENKTAS MEETS VERHEUGEN

First meetings of the new negotiation talks between President Rauf Denktas of the Turkish Republic of Northern Cyprus (TRNC) and Greek Cypriot President Tassos Papadopoulos were held last week. The meetings took place under the supervision of U.N. Secretary General Kofi Annan's Cyprus Special Envoy Alvaro de Soto. TRNC Prime Minister Mehmet Ali Talat, Foreign Minister and Deputy Prime Minister Serdar Denktas, Presidency Undersecretary Ergun Olgun, Prime Ministry Undersecretary Aytug Plumer, TRNC's Representative in Washington Osman Ertug, and Foreign Ministry official Feyza Olgun were in TRNC delegation led by Denktas. Greek Cypriot delegation, led by Papadopoulos, included Greek Cypriot U.N. Permanent Representative in New York Andreas Mavroyannis, Permanent Representative in Council of Europe Nikos Emiliu, Greek Cypriot Administration spokesman Kipros Hrisostomidis and Ambassador Tasos Conis. The leaders met with EU Commissioner for Enlargement Guenter Verheugen in the buffer zone after the first day of talks.

De Soto issued a statement together with EU Commissioner for Enlargement Guenter Verheugen after the first meeting of the two Cypriot parties. De Soto said that the leaders' meeting was constructive and added that the leaders would come together at 9.30 a.m. every day.

On February 20, President Rauf Denktas received Verheugen. TRNC Prime Minister Mehmet Ali Talat and TRNC Foreign Minister and Deputy Prime Minister Serdar Denktas also attended the meeting. Verheugen said that they had an interesting, friendly and constructive meeting with Denktas and added that they had taken up recent situation and some points of negotiation process. Verheugen said that he encouraged Denktas for continuing his constructive manner, which he had shown in New York and during negotiations, adding that he promised Denktas that the EU would do its best to support the efforts. He said that he repeated their assistance commitment for Turkish side's catching up with Greek Cypriot side after the solution and the entrance of a united Cyprus to the EU. Denktas said that they had taken up derogation issue and how derogations would be a part of EU basic law. He added, ''it is seen that there are ways to do this. We will continue working.''

Verheugen said he visited the island to meet with Cypriot leaders and announce how European Union would intervene in the process. He said they wanted a united Cyprus to be a member of the EU. Verheugen said that a united Cyprus's accession to the European Union (EU) would bring benefits to everyone. Stating that they held a very good meeting with leaders in a very sincere atmosphere, Verheugen said that the reason of his being in Cyprus was to explain views of the EU. He added that they supported efforts of the U.N. for a solution. Verheugen said they were ready to expend any necessary support that the U.N. needed for the success of the process.

Speaking at a news conference after first day talks, Denktas said as the Turkish side they wanted bizonality to be stronger, and stressed that they requested a commission to be set up to compensate the losses of the Turkish side between 1963 and 1974. Emphasizing that derogations were very important for them, Denktas said the agreement that would be reached by the two sides should be included in the EU main laws, and that this was brought onto agenda during the talks. Denktas announced their demands in economy, stressing that a transition period was necessary for the Turkish side to reach the level of Greek Cypriot side.

Turkish Foreign Ministry said on Thursday that Turkey would be in close cooperation with the Turkish Republic of Northern Cyprus (TRNC) in Cyprus talks as the motherland and guarantor country. The statement said a delegation from the foreign ministry was sent to the TRNC in this respect, and that participation to the delegation from related institutions and organizations was envisaged in case of any need.

Meanwhile, Turkish Parliamentary General Assembly started preliminary talks on February 17 on Cyprus issue after the Republican People's Party (CHP) submitted a motion to hold a general debate on the matter. /NTVMSNBC-Anatolian News Agency-Turkish Daily News/

SCHROEDER: TURKEY CAN TRUST GERMANY FOR EU SUPPORT

Schroeder arrived in Ankara on February 22 for the first visit by a German chancellor in eleven years since former Chancellor Helmut Kohl's visit in 1993, to declare Berlin's support for Turkey's European Union bid and discuss economic ties. Besides his meetings with President Ahmet Necdet Sezer and Prime Minister Recep Tayyip Erdogan, Schroeder met with opposition leader Deniz Baykal, before heading to Istanbul for business talks. Turkey has achieved significant progress on the way to becoming an EU member due to reform policies of Prime Minister Recep Tayyip Erdogan, and Ankara can rely on Germany's support for its membership efforts in the future, German Chancellor Gerhard Schroeder said prior to his visit to Turkey. "Provided that it fulfills the Copenhagen criteria by the end of this year, that is, provided that it fully establishes the democracy and rule of law, respects human rights and properly protects minorities, then the EU will keep its word, Schroder assured in his meetings.  In addition to Turkey's EU bid and economic issues, talks addressed the situation in Iraq and Iran, as well as NATO's upcoming summit in June in Istanbul. Germany has the largest Turkish immigrant community in Europe. In addition to being home to 2.5 million immigrants of Turkish origin. It is also Turkey's biggest trade partner and largest foreign investor.

On the other hand, German President Johannes Rau stated on February 22 that it was “too early” for Turkey to become a member of the European Union. Speaking to German magazine Super Illu, Rau said that Turkey could only be integrated into the EU after fully implementing the EU criteria. Stressing that the implementation of reforms in the areas of freedoms of religion and the press were very important, Rau stressed that this process might take some years. /Turkish Daily News-Anatolian News Agency-Turkiye/

ERDOGAN ANNOUNCES AKP MAYORAL CANDIDATES FOR MARCH LOCAL ELECTIONS

Prime Minister and Justice and Development Party (AKP) leader Recep Tayyip Erdogan Sunday announced his party’s mayoral candidates for the March 28 local elections. Speaking before the AKP Political Academy graduation ceremony, Erdogan said that the AKP had kept the promises that it made before the November 2002 general elections and pledged that this would also continue after the local polls. “Turkey will enter a new era of great change after these elections,” added the premier. Political parties have to submit their candidates' lists for the approaching local elections scheduled for March 28 to the local city or municipality election boards by February 24. Final lists will be published on March 6, by local city and municipality election boards. Public opinion polls predict a victory for the ruling Justice and Development Party (AK Party) in the local elections. /Turkish Daily News /

TURKEY READY TO SUPPORT NATO'S NEW MISSIONS

Turkey fulfilled its Cold War era duties for NATO and stands ready to do its share as the alliance goes through a restructuring and enlargement process, Prime Minister Recep Tayyip Erdogan said on Thursday. Speaking in advance of a meeting with NATO's new secretary-general, Jaap de Hoop Scheffer, who arrived in Ankara as part of a series of courtesy visits to NATO capitals, Erdogan said the alliance was facing a new role to prove that it would be an element of stability not only in the Europe-Atlantic region but also beyond it. As part of his courtesy visit, Scheffer discussed NATO's role in Afghanistan, Iraq and the Balkans in advance of a NATO summit in Istanbul in June. The Istanbul summit, scheduled to take place on June 28-29, will be the setting for the biggest-ever enlargement of the alliance, as seven countries are due to join.

On February 17, Defense Minister Vecdi Gonul said Turkey would review requests from NATO for troops contribution to its mission in Afghanistan, as the alliance struggles to find nations to deploy peacekeeping forces there. "If NATO has new requests concerning Afghanistan, of course we would be open to considering them," Gonul said. "As a NATO member, we have to be prepared to take on a reasonable amount of responsibility, as do other members." De Hoop Scheffer said, "Turkey can make serious contributions to ... stability and security in Afghanistan and also to fighting the terrorist threat," following talks with Foreign Minister Abdullah Gul. /Turkish Daily News/

GUL HEADING FOR MOSCOW FOR SECURITY, BUSINESS TALKS

Foreign Minister Abdullah Gul is departing for Moscow Feb 23 for talks with Russian leaders in a bid to strengthen bilateral ties, with special focus on security and energy matters. "Among other things, the parties will discuss the Blue Stream gas project," Alexander Alexeyev, head of the Third European Department of the Russian Foreign Ministry was quoted as saying. Gul will hold talks with Russian leaders, including President Vladimir Putin and Foreign Minister Igor Ivanov. A Russian-Turkish business forum will be held during the visit. It will be attended by Turkish businessmen accompanying Gul on the visit, as well as representatives from the Russian Chamber of Industry and Commerce, the Russian Union of Industrialists and Entrepreneurs and other Russian companies.

Turkey and Russia are major partners in trade and investment. The annual volume of trade between Turkey and Russia stands at $5.5 billion and Turkish companies have invested more than $1 billion in Russia. The two countries are also cooperating in the energy sector and the so-called Blue Stream project to transport Russian natural gas to Turkey through a pipeline beneath the Black Sea is underway. Alexeyev noted that, "The project is of a strategic character. Turkey's demand for gas will be growing and the project is being worked out so that it can meet not only the present demand, but also the future one," he said.

Meanwhile, "Some organizations that are considered to be public but continue supporting separatists are still operating in Turkey," Alexeyev was quoted as saying at a briefing last week in Moscow on Gul's visit. Gul will discuss the activity of public organizations operating in Turkey and having links to Chechen separatists, he said. Earlier this month, Russia's Defense Minister Sergei Ivanov said that most mercenaries killed or captured in Chechnya were Turks and added, "These circumstances will inevitably have a negative impact on the development of relations with Turkey." The Russian Embassy in Ankara said in a statement that efforts to fight international terrorism would figure considerably in talks and added that Ankara started to take into account Moscow's sensitivity on the Chechen issue. "The visit is of special importance given that it is going to be the first visit by a Turkish foreign minister to Russia in eight years," said the Turkish Foreign Ministry in a statement. /Turkish Daily News/

UN TO LOOK AT BOOSTING PEACEKEEPERS ON CYPRUS

The United Nations is considering a major increase to the number of peacekeepers it has deployed on Cyprus should an agreement be reached to reunify the two states on the island. There are contingents from more than half a dozen countries already serving in the island. UN officials said the current 1,200-strong peacekeeping contingent could be tripled in the event of reunification. The UN has had peacekeepers on the island for the past 40 years, with the present contingent including troops from Argentina, the UK, Slovakia, Hungary as well as civilian police from Australia. /NTVMSNBC/

POLL INDICATES THAT GREEK CYPRIOTS SAY NO TO ANNAN PLAN

An opinion poll conducted in the Greek side of Cyprus has shown that 61 percent of respondents would vote against accepting the United Nations sponsored plan (Annan Plan) to reunite the two states in Cyprus. According to the results of the poll, released on Feb 20, 67 percent of Greek Cypriots said that they did not believe that the plan put forward by UN Secretary General Kofi Annan could be implemented as it stood. The opinion poll canvassed 800 Greek Cypriots. Both the Turkish Cypriot and Greek Cypriot communities are scheduled to hold a referendum before the end of April on whether to approve any agreement brokered in the reunification negotiations. /NTVMSNBC/

PRODI WELCOMES ANKARA’ S EFFORTS ON CYPRUS

In an interview with a Spanish newspaper last week, European Commission President Romano Prodi argued that a positive result in the negotiations between Turkish and Greek Cypriot leaders would play a part in EU-Turkey ties, although it is not one of the Copenhagen Criteria laid down for candidate countries. “In theory, this might not have an impact but it is very clear that in practice, the will to co-operate in a very important like Cyprus would have its impact, ” Prodi said.

Speaking to Spanish daily El Pais, Prodi stated that there were two important topics on the Union’s agenda for 2004, namely, approving a EU Constitution and dealing with Turkey’s EU bid. Commenting on German opposition leader Angela Merkel’s recent offer to Ankara of a “special partnership” with the EU (rather than membership), Prodi rebuffed the idea, saying the commission was not seeking new formulas and that no such proposal was even being considered. /Turkiye/

VERHEUGEN PRESSES GREEK CYPRIOTS TO BE MORE COMPROMISING

According to Greek Cypriot daily Alithia, European Union Commissioner for Enlargement Guenter Verheugen recently warned the Greek Cypriots about the possible negative consequences of a failure in Cyprus negotiations, despite recent rash of international efforts. The Greek Cypriot daily reported that Verheugen visited Cyprus on February 19 not only to show the EU’s support for the current negotiations but also to press the Greek side to be more compromising. “The Greek Cypriots shouldn’t be complacent, thinking that they’re going to join the EU no matter what the talks’ outcome is,” the daily quoted the EU commissioner as saying. “There are a number of countries ready to create new political obstacles for [Greek] Cyprus if they see the Greek Cypriot side doing less than their utmost in the talks.” /Hurriyet/

§          TUSIAD delegation held official contacts in Ankara on February 19-10, including Prime Minister Recep Tayyip Erdogan, Central Bank Governor Sureyya Serdengecti, EU Secretary-General Ambassador Murat Sungar. The delegation conveyed TUSIAD views on an economic growth strategy for Turkey, judicial and public sector reform, Lisbon strategy, and TUSIAD’s lobbying activities for fulfilling the Copenhagen criteria and launching Turkey’s accession negotiations with the EU.

§          TUSIAD co-hosted a luncheon for visiting German Chancellor Gerhard Schroeder on February 24.