Compiled by the Washington Office of

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

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CONTENTS:

• Annan Thanks Gul for Hamas Initiative
• Turkey Set for Key Talks to Ease Tension in Iraq
• Austria Says Ankara Should Recognize Greek Cypriots
• U.N. Rapporteur Appreciates Turkey's Human Rights Steps
• Clashes in Diyarbakir Leave Ten Injured
• Erdogan: Turkish Economy Has Recovered

Annan Thanks Gul for Hamas Initiative

U.N. Secretary-General Kofi Annan thanked Turkish Foreign Minister Abdullah Gul for hosting a high-level delegation from the radical Palestinian organization Hamas in Ankara two weeks ago. The Secretary-General met Gul on Saturday in Qatar's capital city Doha, shortly before a U.N.-led summit over the crisis provoked by the publication of cartoons of Prophet Mohammed in several European newspapers. Stressing the importance of Turkey’s role in the Middle East peace process, Annan said he was “indebted to Turkey for its Hamas initiative,” and added that he believed this was a useful move. U.N. Secretary-General Annan is also reported to have said that he discussed the issue of giving “necessary and correct messages” to Hamas with Turkish Prime Minister Recep Tayyip Erdogan during their meeting in Davos. Annan and Gul also exchanged views about Iraq and Cyprus during their half hour meeting. The Foreign Minister called for urgent measures to stop the recent escalation of tensions in Iraq saying that Iraq’s neighbors need to convene and assess the situation. Annan is reported to have shared Gul’s views, and added that he was planning to call for a new meeting between U.N. Security Council permanent members and Iraq's neighboring countries. As for Cyprus, Gul explained Turkey's views, recent developments regarding its action plan for Cyprus and informed Annan about the need to end the isolation of the Turkish Republic of Northern Cyprus. Gul and Annan agreed that the platform to resolve Cyprus issue was the United Nations.

The Hamas delegation’s surprise visit to Ankara two weeks ago sparked strong criticism from Israel, with Raanan Gissin, spokesman for the Israeli government, saying that relations between the two countries would be harmed in a manner difficult to repair. Tel Aviv’s Ambassador to Ankara Pinhas Avivi’s warm statements, however, eased the tension in Turkish-Israeli relations. Underlying the importance of maintaining good relations between the two countries, Ambassador Avivi said that “Turkish-Israeli ties will not be affected by different comments that have been made in certain media organizations.” Among other groups that reacted to Hamas’ visit to Ankara were Turkish opposition parties and the media, which expressed concern that the trip was likely to damage Turkey's credibility as a broker for Middle East peace and an opponent of terrorism. A similar reaction came from a U.S. congressman who sent a letter of protest to Turkish Prime Minister Recep Tayyip Erdogan concerning Hamas’ political leader Halid Mashaal’s visit to Ankara. In his letter, the head of the Jewish lobby in the US Congress, Tom Lantos, said that the visit would harm Turkey’s national interests, the fight to combat terrorism and Turkish-US relations. Lantos described Mashaal as the Palestinian version of Abdullah Ocalan, imprisoned leader of the outlawed Kurdistan Workers' Party (PKK) and said that the outcome of the Hamas talks in Ankara was “the opposite of what Turkey had expected from the visit.” Erdogan, however, remained firm in defending his ruling Justice and Development Party's (AKP) talks with Palestine's election-winner Hamas and said the group was given “right messages at the right time.” /www.ntvmsnbc.com – Turkish Daily News- www.turkishpress.com/

Turkey Set for Key Talks to Ease Tension in Iraq

This week Ankara is hosting Iraq's Shiite Prime Minister Ibrahim al-Jaafari as a part of Turkey’s efforts to calm the ongoing violence in Iraq. Erdogan also said that Moqtada Sadr, Shiite cleric leader whose Mehdi militia has been accused of involvement in violence against Sunnis, is also scheduled to visit Ankara in the coming days. Tension has been running high in Iraq since last Wednesday, when a revered Shiite shrine in the northern town of Samarra was bombed, sparking a series of attacks against the minority Sunni community. Erdogan said the unrest was the result of “provocation” aimed at deepening the security crisis in Iraq by sparking sectarian strife between Sunnis and Shiites. Erdogan urged Iraqis to refrain from reprisals and underlined that Iraq’s territorial integrity should be taken under constitutional guaranty. Erdogan noted that the Foreign Ministry of Turkey launched some initiatives to hold a meeting including foreign ministers of Iraq’s neighboring countries. Foreign Ministry (MFA) had condemned bomb attacks staged in Iraq last week, saying that “the aim of these terrorist attacks was to launch a sectarian and ethnic conflict.”

Rising sectarian tensions in Iraq alarm Turkey as it fears these developments could lead to Iraq’s disintegration, something that would have serious repercussions for both Turkey's security and the stability of the entire region. In an interview with Turkish Daily News, Turkey’s former President Suleyman Demirel said that relations with the US might receive a serious blow if Iraq disintegrates and if a Kurdish state is created, because the Turkish public would see this as a situation of US making. /Turkish Daily News – www.anatolia.com /

Austria Says Ankara Should Recognize Greek Cypriots

Austrian Chancellor Wolfgang Schussel called on Turkey to formally recognize the Greek Cypriot administration by the end of the year. Earlier this year Austria, the current EU term president, said that membership talks with Turkey could start in the first half of this year if Ankara met the conditions set for accession. In response to this call Turkish Premier Erdogan said the EU first needed to “keep its commitments before Turkey and Turkish Cypriots took further steps.” Erdogan said that the European Union has failed to keep its promises made to the Turkish Republic of Northern Cyprus prior to the 2004 reunification referendum held on the island. The Turkish Premier added that the EU had made a mistake by admitting the Greek Cypriot side into the bloc in May 2004 without resolving the dispute on the island.

Earlier last week, Greek Cypriot and Greek authorities had called on Ankara to revise its policy saying that its EU membership negotiations could otherwise be put at risk. The Turkish Prime Minister said that they would not take into account Greek Cypriot threats to stall Turkey’s EU membership negotiation process. Erdogan also said that the Greek Cypriot administration deceived the European Union regarding a plan by UN Secretary General Kofi Annan to reunify the two states on the island of Cyprus. The Turkish Premier added that he believed the Greek Cypriot administration did not want peace or to see a resolution of the dispute on the island.

Currently, Turkey does not grant access to Greek Cypriot ships and aircraft into its ports or airports. This policy, which is in part a response to the international isolation of the Turkish Republic of Northern Cyprus, is criticized by the Greek Cypriot administration. Greek Cypriot administration claims that as a signatory to the protocol extending the Customs Union with the EU to cover the ten new members that joined the bloc in May 2004, Turkey should recognize the Greek Cypriot administration. Turkey, on the other hand, rejects these claims by arguing that the agreement does not signify formal recognition of the Greek Cypriot administration. This dispute came to the agenda once again last week, as a Greek Cypriot cargo ship was prevented from entering the southern port of Mersin. The Greek Cypriot administration promptly judged the move as breaching the extended Customs Union agreement between Turkey and the EU, signed by Ankara last July. Greek Cypriot administration spokesman George Lillikas said Ankara’s attitude was a clear demonstration of its failure to respect its EU obligations. Commenting on the case, Turkish Foreign Ministry (MFA) said that the ship acted contrary to international law which would have required the ship to ask for permission before approaching the port. European Commissioner for Enlargement, Olli Rehn, fueled the debate over Turkish officials’ decision. Rehn said that giving access to vessels and planes of all EU member states to its ports and airports was part of Turkey’s obligations under the Customs Union agreement with the European Union. /www.ntvmsnbc.com – Turkish Daily News/ 

U.N. Rapporteur Appreciates Turkey's Human Rights Steps

During his one week visit to Turkey, Martin Scheinin, the UN special rapporteur on human rights and counterterrorism, met Turkish government officials, parliamentarians, representatives of the National Security Council, the military, NGOs in capital Ankara and southeastern city of Diyarbakir. Holding a press conference in Ankara, Scheinin said he appreciated the Turkish government's efforts in area of human rights.  Scheinin expressed pleasure with developments recorded in Turkey in recent years in intensified human rights training, the abolition of capital punishment, ''zero tolerance'' to torture, rehabilitation of physical conditions in detention rooms, and law concerning compensation for terror victims. Yet, the senior UN official said that more needed to be done.  Scheinin said these efforts should include the establishment of an independent mechanism to investigate allegations of torture or ill-treatment of terrorism suspects.

The UN envoy also urged Turkey to redraft its legislation to combat terrorism, describing the present laws as being too broad and too vague, which may lead to the prosecution of people with no direct involvement in terrorist acts. Scheinin said he would be happy to contribute to a new draft if Turkey thought of preparing a new law, and underlined the importance of transparent discussions including participation of NGO’s in this process. /www.turkishpress.com – www.ntvmsnbc.com/

Clashes in Diyarbakir Leave Ten Injured

Protestors clashed with police in the southeastern province of Diyarbakir last Sunday to denounce the killing of PKK militants last week in a military operation. Authorities are concerned that the outlawed Kurdistan Workers' Party (PKK) is masterminding plans to ignite serious clashes as the traditional Nevruz celebrations approach. Nevruz celebrations are held on March 21 to welcome the arrival of spring, but in the past the event has often been marked with protests and clashes in predominantly Kurdish southeastern Anatolia with the PKK and its sympathizers believed to be behind the protests. Unrest in the southeast has increased since June 2004 when the PKK, blacklisted as a terrorist group by Ankara, the European Union and the United States, called off a five-year unilateral ceasefire. Abdullah Ocalan, the former head of the terrorist group, was captured in Kenya in 1999 and was sentenced to death for his terrorist campaign that has claimed some 37,000 lives since 1984. His sentence was later commuted to life in prison, which he is serving as the sole inmate on a prison island near Istanbul. /Turkish Daily News – www.turkishpress.com /

Erdogan: Turkish Economy Has Recovered

Addressing to the nation Monday night, Turkish Prime Minister Recep Tayyip Erdogan said Turkey has recovered from the massive economic meltdown it experienced in 2001 and has moved on from the fragility of the past. Erdogan said that the economy was now based on firm foundations and was more resistant to domestic and external shocks. The Turkish Premier said that this success was not only in macro-economic indicators, but that it also reflected the financial betterment of farmers, workers and tradesmen. Erdogan praised the effective and active foreign policy of his government and stressed that in a short period of time his administration had turned a tired economy into the 17th greatest economy in the world.

Meanwhile, Turkey’s Economy Minister on Thursday played down concerns that the country’s foreign exchange reserves were at too high a level. Finance Minister Ali Babacan said that current holdings of $51.215 billion were “reasonable” and that there was a need for Turkey to have strong reserves because of high oil prices and possible shifts in international capital flows. /www.ntvmsnbc.com /

TUSIAD Highlights

World Bank Meets with TUSIAD

Representatives from the World Bank and partners from the International Finance Corporation (IFC) met with the Turkish Industrialists and Businessmen's Association (TUSIAD), as well as the Turkish Enterprise and Business Confederation (TURKONFED) to appraise the progress of the country and assess reform strategies that will open the country up to greater business. At their meeting with Turkey’s leading businessmen, the World Bank and partners from the IFC said they have allocated approximately $9.4 billion since 2004 to help fund various projects in Turkey's private and financial sector. The $2.8 billion from the IFC have been used primarily for private sector development, giving Turkish firms the opportunity to invest in domestic and foreign markets. The money set aside for business in Turkey in the World Bank's 2004-2007 program includes a $6.6 billion sum for human development as well as private and financial sector investments. A grant of approximately $35 million will go toward future precautions against bird flu. Last week, the TUSIAD Board of Directors met with the President of the Northern Turkish Cypriot Republic, and most recently with the Turkish Justice Minister Cemil Cicek, in order to discuss the new justice reform. /Turkish Daily News – www.tusiad.org/