Anadolu Agency: News in English, 97-12-16

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From: The Anadolu Agency Home Page at <http://www.anadoluajansi.gov.tr/>

16 DEC 1997

CONTENTS

[01] TURKEY-PRESS SCAN

[02] TURKEY-RUSSIA - RUSSIAN PRIME MINISTER CHERNOMYRDIN'S VISIT TO TURKEY - TURKEY AND RUSSIA SIGN COMMERCIAL, ECONOMIC AND SCIENTIFIC COOPERATION AGREEMENTS

[03] TURKEY-EU - EUROPEAN PARLIAMENT WILL DISCUSS TURKEY'S REACTION

[04] TURKEY-ECONOMY - 3RD PETROLEUM COUNCIL - INDUSTRY AND TRADE MINISTRY DEPUTY UNDERSECRETARY AYTAC: ''TURKEY PAYS 3.4 BILLION DOLLAR FOR OIL''

[05] TURKEY-WEATHER - TORRENTIAL RAINS IN AEGEAN AND MEDITERRANEAN REGIONS CAUSE DAMAGE

[06] TURKEY-RUSSIA (2) - PRIME MINISTER YILMAZ HOSTS A DINNER IN HONOUR OF RUSSIAN PRIME MINISTER CHERNOMYRDIN - CHERNOMYRDIN PROCEEDS TO ISTANBUL

[07] TURKEY-EGYPT - CHIEF OF GENERAL STAFF GEN. KARADAYI IN CAIRO - GEN. KARADAYI TO BE RECEIVED BY PRESIDENT MUBAREK AND PREMIER GAUNZOURI

[08] TURKEY-EU - STATE MINISTER MUSTAFA YILMAZ: - ''EU MISINTERPRETED TURKEY'S MEMBERSHIP APPLICATION''

[09] TRNC-EU-TURKEY - TRNC PRESIDENCY MEET TO DISCUSS EU DECISION

[10] CYPRUS-UN - UN SECRETARY GENERAL NOT TO TAKE INTO CONSIDERATION TRNC'S OFFER - GOOD WILL MISSION REPORT ISSUED - GREEK CYPRIOTS SYSTEMATICALLY DESTROY MOSQUES AND TURKISH RELIGIOUS, AND CULTURAL SIGHTS

[11] TURKEY-EU (1) - FOREIGN MINISTER CEM IN BRUSSELS: ''EU EITHER COULD NOT FULLY UNDERSTAND IMPORTANCE OF THE ISSUE OR PURSUED A WRONG PATH ON PURPOSE'' - ''EU TREATED TURKEY UNJUSTLY'' - ''CUSTOMS UNION IS OUR PROMISE''

[12] TURKEY-EU (2) - FOREIGN MINISTER CEM: ''TURKEY CONTINUES ITS WILL FOR INCORPORATION IN THE EU'' - ''TURKEY IS INCLUDED IN EU ENLARGEMENT STRATEGY''

[13] TURKEY-NATO - NATO COUNCIL MEETINGS

[14] TURKEY-ECONOMY - PARLIAMENT GENERAL COUNCIL STARTS TO DEBATE 1998 BUDGET DRAFT

[15] TURKEY-GREECE-WESTERN THRACE - FM: ''ATHENS HAS TO RESPECT RIGHTS OF ELECTED MUFTIS STEMMING FROM AGREEMENTS''

[16] TURKEY-OECD - OECD REPORT: ''MACRO-ECONOMIC BALANCES IN TURKEY CAUSE CONCERN'' - ''INFLATION WILL NOT BE DECREASED IF POWERFUL STRUCTURAL REFORMS ARE NOT REALIZED''

[17] NORTHERN IRAQ - KDP'S NORTHERN IRAQ REPORT: - ''THERE ARE 300,000 PEOPLE WHO DO NOT HAVE PERMANENT SETTLEMENT IN NORTHERN IRAQ'' - KDP OFFICIALS: ''SETTLEMENT AREAS WHICH ARE DESTROYED BY TALABANI FORCES AND TERRORISTS NEED REPAIRMENT''

[18] TURKEY-THY-AIRBUS - THY PROMOTION AND PUBLIC RELATIONS CHAIRMAN AKIN: ''WE DID NOT FREEZE NEGOTIATIONS WITH AIRBUS ON BUYING PLANES, OUR NEGOTIATIONS STILL CONTINUE''

[19] TURKEY-US-EU - US ADMINISTRATION: ''TURKEY BELONGS IN EUROPE'' ''TURKEY SHOULD HAVE A STRONG PERSPECTIVE REGARDING EU FULL MEMBERSHIP''

[20] TURKISH PRESS REVIEW (1)

[21] TURKISH PRESS REVIEW (2)

[22] TURKEY-ENERGY-OIL-GAP - TPAO GENERAL DIRECTOR SANCAR: - ''99 PERCENT OF FIXED OIL RESERVES ARE IN GAP REGION'' - ''WE HAVE 38 MILLION TONNES OF CRUDE OIL RESERVES. WE SUPPLY 10,3 PERCENT OF TOTAL CONSUMPTION''

[23] TURKEY-INTERNAL - CLOSURE CASE OF WELFARE PARTY - CONSTITUTIONAL COURT STARTS TO DISCUSS CLOSURE CASE

[24] TURKEY-US-IMF - STATE MINISTER TANER LEAVES FOR US - GUNES TANER TO MEET IMF OFFICIALS

[25] TURKEY-OIC-WESTERN THRACE - TURKEY PLEASED ABOUT ADOPTION OF DRAFT RESOLUTION BY OIC REGARDING TURKISH MINORITY IN WESTERN THRACE - TURKEY CONDEMNS THE IMPRISONMENT OF XHANTI MUFTI MEHMET EMİN AGA BY GREECE

[26] TURKEY-RUSSIA - RUSSIAN PRIME MINISTER CHERNOMYRDIN LEAVES TURKEY - ''OUR DIALOGUE WILL CONTINUE WITH TURKEY ON THE BASIS OF CONCRETE PROJECTS''

[27] TURKEY-EU - SCHARPING: ''THERE CANNOT BE WAITING-ROOMS REGARDING TURKEY-EUROPE RELATIONS''

[01] TURKEY-PRESS SCAN

HÜRRİYET (LIBERAL)

HISTORIC TURKISH-RUSSIAN AGREEMENT
Turkey and Russia signed a natural gas agreement called ''Blue Stream'' and opened a new period in their relations. The agreement is evaluated as a ''message to EU.'' The agreement foresees Black Sea Pipeline project to be put into practice and Turkey will purchase 16 cubic meters of natural gas.

MİLLİYET (LIBERAL)

SABAH (LIBERAL)

10 AGREEMENTS WITH RUSSIA IN 2 DAYS
Russian Prime Minister Chernomyrdin, who is currently in Ankara will sign 10 agreements with Turkey in two days. The most important agreement of all is the purchase of 40 billion dollars of natural gas from Russia.

CUMHURİYET (LEFT)

ECONOMIC THREAT
Deputy Prime Minister Bulent Ecevit said that ''Europe is worried'' because EU is aware of the fact that it took a wrong step, but can not take it back. Meanwhile, Turkey will probably ''evaluate the attitute of European countries when it puts out new tenders.''

TÜRKİYE (RIGHT)

RADİKAL (LEFT)

ZAMAN (CONSERVATIVE)

YENIYUZYIL (LIBERAL)

FİNANSAL FORUM (ECONOMY)

[02] TURKEY-RUSSIA - RUSSIAN PRIME MINISTER CHERNOMYRDIN'S VISIT TO TURKEY - TURKEY AND RUSSIA SIGN COMMERCIAL, ECONOMIC AND SCIENTIFIC COOPERATION AGREEMENTS

Prime Minister Yılmaz and Russian Prime Minister Viktor Chernomyrdin held a joint press briefing after signing various agreements.

Addressing the press briefing, Chernomyrdin said that they had a very fruitful meeting covering all aspects of Turkish-Russian relations, regional and international issues.

Yilmaz said that they agreed on the necessity of a progress in political relations as this would positively effect their economical and commercial relations.

Emphasizing that mutually signed agreements will open a new page in Turkish- Russian relations, Yilmaz said that he believed that these agreements would open the way to improvement of bilateral cooperation.

Russian Prime Minister Chernomyrdin had also said that the agreements would improve bilateral relations and give an acceleration to them.

Turkey and Russia signed agreements on ''Long-term Cooperation Program'', ''Prevention of Double Taxation'', ''Mutual Promotion and Protection of Investments'', ''Energy Cooperation'', ''Judicial Assistance'', ''Cooperation in High Technologies,'' and ''Blue Stream'' which foresees Turkey to purchase 16 billion cubic meters of natural gas through a pipeline which will be installed under Black Sea, and another natural gas agreement which will bring 8 billion cubic meters to Turkey by extending the present network in western route.

Eximbank and External Economy Bank signed three agreements regarding investments that will be made in certain regions of Russia.

[03] TURKEY-EU - EUROPEAN PARLIAMENT WILL DISCUSS TURKEY'S REACTION

EU Term President Luxembourg Prime Minister Jean-Claude Juncker and EU Commission Chairman Jacques Santer will inform EP deputies about decisions taken in the summit.

Diplomatic sources said that the most important issue of the session on Wendesday will be Turkey.

European Parliament will vote an advisory decision related to EU summit results on Thursday.

[04] TURKEY-ECONOMY - 3RD PETROLEUM COUNCIL - INDUSTRY AND TRADE MINISTRY DEPUTY UNDERSECRETARY AYTAC: ''TURKEY PAYS 3.4 BILLION DOLLAR FOR OIL''

Addressing the Third Petroleum Council in Ankara, Aytac said, European Union (EU) countries produce five thousand kg of oil per person. So we should set up installations five times more.''

Retired Ambassador Sukru Elekdag said in his part that the 30 billion cubic meters of natural gas agreement signed between Turkey and Russia would cause a considerable dependency on Russia and thus this may be a reason for serious problems.

Emphasizing that Russia would supply 60 percent of Turkey's natural gas consumption of nearly 50 billion cubic meters in the year 2010, Elekdag said, ''natural gas deal may cause problems.''

Former Energy and Natural Resources Minister Recai Kutan said in his part that the variety of sources in providing energy is very important.

Pointing out that Turkey should transfer Iranian natural gas if it does not want to face lack of energy ih near future, Kutan said it was wrong to cancel the construction of Erzurum-Ankara pipeline.

[05] TURKEY-WEATHER - TORRENTIAL RAINS IN AEGEAN AND MEDITERRANEAN REGIONS CAUSE DAMAGE

In Mugla, ten people were wounded in traffic accidents caused by heavy fog, and 83 houses were flooded.

Meanwhile two bridges were demolished, more than 1000 houses and 200 automobiles were flooded in Antalya-Alanya due to torrential rains.

[06] TURKEY-RUSSIA (2) - PRIME MINISTER YILMAZ HOSTS A DINNER IN HONOUR OF RUSSIAN PRIME MINISTER CHERNOMYRDIN - CHERNOMYRDIN PROCEEDS TO ISTANBUL

Prime Minister Mesut Yılmaz hosted a dinner in the honour of Russian Prime Minister Chernomyrdin on Monday.

Addressing a speech before the dinner, Prime Minister Yılmaz said that ''It is possible to bring rational solutions to our different points of views and different approches by reciprocal respect, confidence, dialogue and we have the political will to do so.''

Noting that Turkish-Russian relations are developing everyday, Prime Minister Yılmaz stated that ''we have to benefit from our existing potential in order to further improve the bilateral relations.''

''Our countries will continue to play important games to contribute to installation of peace, stability and prosperity in the region, where there are conflicts threatening international peace and security,'' said Yılmaz.

Russian Prime Minister Viktor Chernomyrdin, in his part said that stable good neighbouring relations between Turkey and Russia are to the interest of both countries, adding that the two countries signed many agreements to speed up these relations.

Noting that Turkey and Russia should develop their relations without taking ''Chechen'' and ''Kurdish'' files into account, Chernomyrdin pointed out that ''It is the time to set up traditional Turkish-Russian reciprocal understanding again regarding the navigation through the Straits.''

Parliament Speaker Hikmet Cetin received Russian Prime Minister Chernomyrdin the same day.

Addressing a statement before the meeting, Cetin said that developing relations between Turkey and Russia will also contribute to regional problems and peace.

Noting that the bilateral relations will further strenghten by the agreements signed, Cetin added that ''we have to further develop our relations at the high-ranking level, including interparliamentary relations.''

Pointing out that the agreements signed between the two countries will be implemented, Chernomyrdin described these agreements and projects as ''projects of the century.''

[07] TURKEY-EGYPT - CHIEF OF GENERAL STAFF GEN. KARADAYI IN CAIRO - GEN. KARADAYI TO BE RECEIVED BY PRESIDENT MUBAREK AND PREMIER GAUNZOURI

General Karadayi will start his contacts in Cairo on Tuesday. Gen. Karadayi will be received by Egyptian President Husnu Mubarek and Prime Minister Kemal Al Gaunzouri.

General Ismail Hakki Karadayi's visit is the first official visit paid by Turkish high-ranking military official to Egypt in last five years.

Gen. Karadayi is expected to brief Egyptian authorities on military cooperation between Turkey and Israel.

Gen. Karadayi will visit a factory where M1A1 tanks are produced and an installation where military optic-equipments are produced during his four- day official visit.

[08] TURKEY-EU - STATE MINISTER MUSTAFA YILMAZ: - ''EU MISINTERPRETED TURKEY'S MEMBERSHIP APPLICATION''

In a statement to A.A. correspondent, Yilmaz said that seeing full membership application as ''an opportunity to force Turkey to give consessions'' in solution of sensitive problems such as Cyprus and Aegean, was an attitude that would damage all parties. Yılmaz pointed out that Turkey has chosen ''European'' track, but this should not be perceived as ''Europe, whatever the cost is.''

''The decision of EU means 'we would accept your membership however you should give some consessions in the solution of Cyprus and Aegean problems, and accept the falseness of some truths that you always defended','' Yilmaz said.

Emphasizing that Greece had great influence in the decisions of EU Luxembourg Summit, Yilmaz went on:

''Europe couldn't understand Turkey enough. Turkey's friednship is better than Greek's. I do believe that Europeans will one day see the truth. But, I hope it won't be too late then. It is obvious that exclusion of Turkey would be a mistake and that would cause great losses to Europe too.''

[09] TRNC-EU-TURKEY - TRNC PRESIDENCY MEET TO DISCUSS EU DECISION

Precautions to be taken to EU decision by TRNC, were taken up in the meeting.

TRNC Prime Minister Dervis Eroglu said that they would announce their government's decision to the world after the approval of their parliament.

State Minister and Deputy Prime Minister Serdar Denktas said that ignoring the importance of Turkey was a great mistake of the EU states.

Serdar Denktas said that the EU lost the opportunity to take a decision to speed up solution in Cyprus and to provide stability in the region.

[10] CYPRUS-UN - UN SECRETARY GENERAL NOT TO TAKE INTO CONSIDERATION TRNC'S OFFER - GOOD WILL MISSION REPORT ISSUED - GREEK CYPRIOTS SYSTEMATICALLY DESTROY MOSQUES AND TURKISH RELIGIOUS, AND CULTURAL SIGHTS

Kofi Annan, in the good-will mission report which was presented to UN Security Council members, did not take into consideration Turkish Republic of Northern Cyprus's (TRNC) offer for organization of Cyprus negotiations to be intergovernmental, not to be intercommunal from now on.

However, Annan, in the tenth paragraph of his report, stated that TRNC President Rauf Denktas had conveyed his offer for ''the change in the statue of negotiators in the meetings to be held in future'' to UN Special Representative to Cyprus Diego Cordovez.

Secretary General stated in the report that the UN considers the nations and leaders in Cyprus in ''totally equal status''. TRNC Council of Ministers on Sunday issued a communique regarding the issue. The last paragraph of the communique stated that ''from now on, negotiations can only be held between two governments''.

Claiming that the existing status-quo in Cyprus is not stable and dangerous, Secretary General stated in the report that the continuous negotiation process between the leaders in Cyprus will be started by March 1998 and Cordovez will pay an official visit to Cyprus in the same month.

Meanwhile, the representatives of UN Security Council's five permanent member countries and the countries which sent troops to

UN Peace Force In Cyprus (UNFICYP) on Tuesday evaluated the situation in the island.

The representatives exchanged opinion regarding the draft resolotion to be submitted to UN Security Council in the following days. The draft foresees the renewal of term of office of UNFICYP.

The countries that sent troops to UNFICYP are as follows: Argentina (422), Australia (40), Austria (323), Canada (2), Finland (1), Hungary (39), Ireland (49) and Britain (394).

UN Security Council will also take up the draft resolution December 19 together with Cyprus issue.

Meanwhile, TRNC's Representative to New York Ambassador Aytug Plumer sent a letter to UN Secretary General Kofi Annan. Plumer stated in the letter that Greek-Cypriots are systematically destroying the mosques and Turks' religious and cultural values.

Ambassador Plumer's letter was published as Security Council's and General Council's document.

[11] TURKEY-EU (1) - FOREIGN MINISTER CEM IN BRUSSELS: ''EU EITHER COULD NOT FULLY UNDERSTAND IMPORTANCE OF THE ISSUE OR PURSUED A WRONG PATH ON PURPOSE'' - ''EU TREATED TURKEY UNJUSTLY'' - ''CUSTOMS UNION IS OUR PROMISE''

Addressing a press briefing in Brussels, Foreign Minister Cem stated that ''one of our important targets is full membership to EU and we launch all kinds of efforts to reach that target. The latest summit showed that we were successful to persuade many Western European countries regarding many issues, yet these were not enough. EU had to be closer to Turkey now, as this would be to the interest of EU, Turkey and the region. This opportunity has been missed at least for today and this was very important.''

''Turkey adopted such values like women-men equality, supremacy of law, secularism 75 years ago and it has developing democratic values for 50 years. The adoption of these values are nothing to do with accession of Turkey to EU, as we did not adopt them to please EU. We are not seeking to find a guardian, as Turkey has never been a colony in its history.''

Noting that EU treated Turkey unjustly, yet this was not the end of the world, Cem added that ''we try to diversify our economic relations and strengthen the basis of our political relations with other countries. We will not have the chance to further improve our relations with EU and this is not our fault. As EU did not agree to offer membership talks to Turkey, it downgraded itself on Ankara's political agenda. Yes, Turkey has to further improve itself regarding democracy and human rights, but this issue was perceived by EU in a biased way.''

''If Turkey participates in European Conference, it means that Turkey accepts the status of the Greek Cypriot side in EU. EU is not right by saying that 'Turkey has to do something to solve its conflicts with Greece.' Turkey can not be held responsible for the existing problems between the two countries,'' Cem said.

Noting that EU had earlier mentioned two communities in Cyprus, Cem stressed that ''all of a sudden, the Summit decision used the word 'all communities' and I think EU did this on purpose in order to transform the status of Turkish Cypriot into a minority one. EU should not have done that.''

Foreign Minister pointed out that EU Term Presidency did not reflect several issues to Turkey honestly, adding that ''they did not show us the draft resolutions about 'Turkish-Greek relations' and Cyprus question before the summit. EU did not talk any issues with us regarding Turkish foreign politics and I think these points were added later on.''

''There is no meaning to discuss issues like 'Cyprus, Agean, Greece and human righs' with EU anymore, because the latter did not determine the status of Turkey correctly,'' Cem said.

Noting that customs union is a promise of Turkey, Cem stressed that EU did not fulfil its obligations regarding customs union either.

[12] TURKEY-EU (2) - FOREIGN MINISTER CEM: ''TURKEY CONTINUES ITS WILL FOR INCORPORATION IN THE EU'' - ''TURKEY IS INCLUDED IN EU ENLARGEMENT STRATEGY''

Addressing a press briefing in Brussels, Foreign Minister Cem stated that ''Turkey will continue to talk about customs union issues with EU.''

Cem stressed that he is against the part which is included later in Summit decision concerning the Cyprus question and EU's Cyprus policy is very wrong.

''We should not forget one thing: EU Enlargement Document which was published five months ago only incorporated 11 candidate states, today Turkey has been included in the Summit Document. This is a progress, yet this is not satisfactory, because Turkey is still not equal with the other candidates. What does it mean to say 'I can not negotiate with a torturer?' One should look at the reports of Amnesty International regarding torture in Germany. France does not recognize minority groups in its territory. If EU does not ask its own members the same questions it asks to us, it does not also have the right to ask us either,'' said Cem.

Foreign Minister Cem noted that Turkish government is serious, says the truth to its people and is aware of its rights.

[13] TURKEY-NATO - NATO COUNCIL MEETINGS

NATO Council is expected to take important steps regarding the expansion of NATO and the accession protocols of Czech Republic, Hungary and Poland will be signed.

NATO Council will take up the issues of mass destructive weapons and the new command-control system of NATO.

NATO-Ukraine Commission and NATO-Russian Joint Council meetings will also be held at ministers level.

Foreign Minister Cem, who represents Turkey in NATO meetings, will hold bilateral contacts in Brussels. The number of those ministers who wish to meet Cem increased in a considerable way after the Luxembourg Summit.

[14] TURKEY-ECONOMY - PARLIAMENT GENERAL COUNCIL STARTS TO DEBATE 1998 BUDGET DRAFT

Finance Minister Zekeriya Temizel said, ''whatever the cost is, government should take some measures to provide a powerful structure for economy.''

Temizel, who submitted 1998 Budget Draft to the Parliament General Council, said that the 1998 budget would be the first step of a medium-term programme for providing a stability in economy. Temizel said, ''Turkey can protect itself from global crisis. All economic measures are taken by evaluating economic effects in detail.''

Pointing out that the domestic debt stock was 5.6 quadrillion lira in October 1997 and foreign debt was 80 billlion dollar at the end of 1996, Temizel said that Turkey transfers more than USD five billion of source to foreign countries a year. Temizel said that the ratio of the debt total to the Gross National Product (GNP) was 64,9 percent as of end of 1996.

Finance Minister Temizel said the budget revenues met 68,9 percent and tax incomes met 56,7 percent of budget expenditures in 1996.

Temizel said that 1997 budget gave a budget deficit of 1.2 quadrillion lira on November and this is expected to increase over two quadrillion lira at the end of this year, adding that the ratio of 1997 budget deficit to the GNP will reach nine percent, the highest figure in recent years.

Temizel said, the growth rate is expected to be 6,8 percent, the inflation to be 92 percent, the ratio of budget deficit to GNP to be 10 percent and current transactions deficit to be USD 8.8 billion in 1998 if necessary measures will not be taken, adding that ''from this perspective, the growth rate is expected to be 0 percent, inflation to reach three-digit-numbers, the ratio of budget deficit to GNP to be 12 percent and current transactions deficit to be USD 13 billion in 1999.''

Finance Minister Temizel said that programme aiming to decrease the inflation to three percent in the year 2000 should be supported by ''Tax, Social Security, Financial Sector, Local Administrations Revenues, Reconstruction of Administration and Privatization Reforms''. Temizel said that a budget discipline should be provided to achieve these targets.

Temizel said that the budget proposed for 1998 is 14.8 quadrilion lira.

The 550-member parliament will debate the budget in the next 10 days.

[15] TURKEY-GREECE-WESTERN THRACE - FM: ''ATHENS HAS TO RESPECT RIGHTS OF ELECTED MUFTIS STEMMING FROM AGREEMENTS''

Foreign Ministry expressed its regret over the imprisonment of Mufti of Xhanti Mehmet Emin Aga to 16 months by Greek officials who claimed that Aga ''seized his post.''

Foreign Ministry pointed out that the imprisonment of Mehmet Emin Aga reached 80 months after eight separate cases brought against him and this imprisonment was given just after Organization for Islamic Conference (OIC) took a decision under the title of ''Situtation of Moslem-Turkish minority in Western Thrace,'' which foresees prevention of giving juridicial punishments to elected muftis.

Foreign Ministry stated that Turkey expects Greece to abide by its responsibilities under the bilateral and multilateral agreements. Mehmet Emin Agar was elected as Mufti of Xhanti by Turkish minority in Western Thrace and used the title ''Xhanti Mufti'' in his messages addressed to Turkish Minority. Aga has been sentenced to 16 months imprisonment.

[16] TURKEY-OECD - OECD REPORT: ''MACRO-ECONOMIC BALANCES IN TURKEY CAUSE CONCERN'' - ''INFLATION WILL NOT BE DECREASED IF POWERFUL STRUCTURAL REFORMS ARE NOT REALIZED''

OECD stated in its report titled ''Economic View'' that Turkey's budget deficit reached to a considerable amount although tax revenues were increased and the Gross National Product (GNP) rose by 6,5 percent in 1997.

OECD, in its report, showed private sector's expenditures, powerful trade and tourism incomes as the reasons for the increase in the GNP.

It stated that the increase in the GNP was supported by public expenditures and that the political ambivalence was ''reduced'' by the new government led by Prime Minister Mesut Yilmaz.

The report stated that the consumer price inflation continues to proceed over 90 percent as of 1997 although new government increased the prices of state sector's products, besides, domestic debt constituted two percent of GNP in the first half of 1997 and to be 9,5 percent at the end of 1997.

It stated that Treasury is targetted to decrease the ratio of domestic debt to GNP to 8,5 percent in 1998.

OECD stated in its report that low budget revenues and inflation are the blocks in front of Treasury for achieving its target.

It stated that some problems would be emerged and the inflation would proceed over 60 percent until 1999 if powerful structural reforms are not launched in Turkey.

The report said the consumption of private sector will increase by five percent in 1998 and 1999 and government expenditures will increase by 4,2 percent in 1998 and four percent in 1999.

It said that Turkey's foreign exchange reserves reached to USD 20 billion as of October 1997 and that amount was equal to Turkey's total importation in last five months.

The report stated that the ratio of budget deficit to GNP will be reduced to six percent in 1998 from nine percent in 1997.

It said the ratio of domestic debt to GNP will be decreased to five percent in 1999.

[17] NORTHERN IRAQ - KDP'S NORTHERN IRAQ REPORT: - ''THERE ARE 300,000 PEOPLE WHO DO NOT HAVE PERMANENT SETTLEMENT IN NORTHERN IRAQ'' - KDP OFFICIALS: ''SETTLEMENT AREAS WHICH ARE DESTROYED BY TALABANI FORCES AND TERRORISTS NEED REPAIRMENT''

Kurdistan Democratic Party (KDP) officials prepared a report which says that at least 200,000 of these unsettled people live in a part of Kirkuk region, which is close to Iraqi military forces.

Noting that there are more than 100,000 Northern Iraqi people in Iran and 5000-6000 people in Turkey, the report stated that all these Northern Iraqi people live in poor conditions.

KDP officials stressed that approximately 10,000 Turkish citizens live in Ayasufi, Mukupli, Balkoz camps of Northern Iraq, adding that these people were forced to migrate from villages of Sırnak province by the separatist terrorist organization during the Gulf Crisis and KDP extends all kinds of assistance to those who wish to return back.

Pointing out that the majority of unsettled people are Kurds, Asyrians and Christians, the report says that these people live in extremely poor conditions in Chuman Valley, Diana, Ranya, Kaladiza, Penjawien, Saeed Sadiq, Halepce and Biekha regions.

Meanwhile, Patriotic Union for Kurdistan (PUK) officials claim that Saddam administration pursues a policy of Arabization in Kerkuk and Musul regions and it removes particularly Turkmen families from these two oil-rich provinces.

KDP officials said that separatist terrorist organization and Talabani forces pursue an expansionist policy this year and they destroyed many settlement units which belong to KDP.

''We are trying to repair the harm which is given to our settlement units and we take neccessary measures to prevent the re-occurance of such incidents,'' KDP officials said.

Noting that KDP expects the assistance of Turkey for the repairment of the damaged settlement units, KDP officials also called United Nations (UN) to launch further efforts regarding assistance that shoud be extended to unsettled people in Northern Iraq.

[18] TURKEY-THY-AIRBUS - THY PROMOTION AND PUBLIC RELATIONS CHAIRMAN AKIN: ''WE DID NOT FREEZE NEGOTIATIONS WITH AIRBUS ON BUYING PLANES, OUR NEGOTIATIONS STILL CONTINUE''

Akin told A.A correspondent that the news published in the dailies on Tuesday that ''after European Union's (EU) snub of Turkey's membership application in its Luxembourg Summit, THY is considering to freeze negotiations with Airbus'' did not reflect the truths.

Defining EU's decision as ''unfair treatment against Turkey'', Akin said that five Airbus A-340-type planes were bought in accordance with the agreement signed in 1990.

Pointing out that there are ''further five options'' for the same type planes, Akin said, ''we continue to negotiate with Airbus regarding the use of three options.''

Stating that the latest negative development in Turkey's political relations with EU would affect commercial policies, Akin said, ''we always launch initiatives for the benefit of the country.''

[19] TURKEY-US-EU - US ADMINISTRATION: ''TURKEY BELONGS IN EUROPE'' ''TURKEY SHOULD HAVE A STRONG PERSPECTIVE REGARDING EU FULL MEMBERSHIP''

US State Department Deputy Spokesman James Foley stated that

''Turkey should have a strong and clear perspective regarding its full membership to European Union (EU) and we hope a progress can be recorded in this field.'' Foley said that ''the world ought to be moving in a direction of ethnic reconciliation with the emergence of the global economy, and the closer and closer integration of regions, societies and countries ... We ought to consign racially oriented thinking to the dustbin of history,'' he said.

Noting that US wishes Turkey to be closer to all institutions of Europe, Foley added that these issues will be taken up during Prime Minister Mesut Yılmaz's visit to US.

US State Department Spokesman Foley stated that ''We will take up these issues with Britain, which will be the EU Term President in January.''

Responding to questions regarding the statements of Prime Minister Yılmaz on Sunday, James Foley added ''that US favours tolerance and we hope, over time, that the perspective of membership will be opened and that Turkey one day will be able to join the EU.''

Foley said EU membership for Cyprus could promote the search for a settlement on the Mediterranean island.

''The EU accession process offers positive incentives for a Cyprus solution. And in this regard we take note of the EU summit's statement language that favors Turkish-Cypriot community participation in the accession talks,'' he said.

[20] TURKISH PRESS REVIEW (1)

(Derived from Newsspot of Turkish Directorate of General Press and Information)

TURKEY AND RUSSIA SIGN DEAL OF THE CENTURY
Russian Prime Minister Victor Chernomyrdin arrived yesterday in Ankara for a two-day official visit. Observers note that the visit plays a special importance in the aftermath of the EU Luxembourg Summit when EU leaders decided to postpone for an undefinite period Turkey's integration with Europe. This is the first visit of a Russian Prime Minister to Turkey after the disintegration of the former Soviet Union and the establishment of the Russian Federation.

In a meeting yesterday, Turkish Prime Minister Mesut Yilmaz and his Russian counterpart Victor Chernomyrdin took in hand issues of major importance for both countries, such as the unrest in Chechnia, PKK terrorism, busy marine traffic in the Bosphorus, and the deployment of Russian-made S-300 missiles in Southern Cyprus and Turkey's neighbour countries. In a statement after the meeting, both prime ministers voiced optimism for the improvement of bilateral relations. Yilmaz noted that both sides had reached ''agreement for a breakthrough in political relations'', and Chernomyrdin pointed out that Turkey and Russia shared ''similar views regarding their continent and Europe''. Turkish Prime Minister Yilmaz will pay an official visit to Moscow in the beginning of 1998.

The two prime ministers discussed opportunities for improving bilateral economic cooperation and signed an agreement for the construction of a natural gas pipeline under the Black Sea to carry Russian natural gas to Turkey. The pipeline will be 1213-km long and will be laid at a depth of 2100 meters. It will have the capacity to carry 16 billion cubic meters of natural gas yearly. Further agreements signed envisage measures for increasing the volume of bilateral trade to $10 billion, for preventing double taxation and encouraging mutual investments. Turkey and Russia also signed accords for judicial cooperation and cooperation in science and technology, and agreed to implement a long term cooperation programme. Officials from the two countries will initiate moves for abolishing the visa requirement for travel between the two countries, and the setting up of a joint free trade zone. /All papers/

EU WORRIED BY TURKEY'S HARSH REACTION
EU countries have met with anxiety Turkey's harsh reactions to the decisions that emerged from the EU Luxembourg Summit and invited Turkey to reconsider its stand. Commenting on Ankara's decision not to attend the European Conference in March, EU Commission Spokesman said that the absence of Turkey will diminish the importance of the conference. German Foreign Minister Klaus Kinkel stressed that Turkey was a part of the European family and criticized the Turkish government for its harsh reactions to the decisions that emerged at the EU Luxemburg Summit. On the other hand, representatives of the Christian Democratic Union (CDU), a partner of the coalition government on power in Germany, voiced their satisfaction over the Luxembourg decisions. European papers gave extensive coverage to Turkey's decision to withdraw its application for EU membership and described this move as ''shocking''.

In a statement to the noted ''New York Times'' newspaper, Prime Minister Mesut Yilmaz said that the EU was trying to set up a new ''Berlin Wall'' in Europe. According to Yilmaz, the real factor that influenced the EU decision to exclude Turkey from the EU enlargement process for the time being was religious discrimination. The Turkish Prime Minister pointed out that the EU will bear the main responsibility for the deterioration in the process for resolving the Cyprus issue. Deputy Prime Minister Bulent Ecevit said that the Turkish decision to limit political dialogue with Europe has worried EU leaders.

Today's papers cry out against EU prejudice towards Turkey referring to a recent EU report comparing the economies of the countries in line to join the Union. The report revealed that market economy rules were much better established in Turkey than in the other applicant countries and that Turkey was much superior to these countries in terms of competitive power. /All papers/

CEM AT NATO MEETING
A two-day autumn NATO meeting at the foreign ministerial level started yesterday in Brussels. Turkey is represented by Foreign Minister Ismail Cem. The meetings, regarding the expansion of NATO and a new command structure, have vital importance. /Hurriyet/

GEN.KARADAYI VISITS CAIRO
Chief of General Staff Gen.Ismail Hakki Karadayi started his visit to Cairo yesterday to discuss the military's policy of balance between two leading players in the Middle East- Israel and Egypt. His four-day visit also includes meetings with President Husnu Mubarak and Prime Minister Kamal Ganzouri. Karadayi was welcomed with a military ceremony and a banquet was given in his honour yesterday night. /Milliyet-Hurriyet/

(CONTINUES)

[21] TURKISH PRESS REVIEW (2)

(Derived from Newsspot of Turkish Directorate of General Press and Information)

12 DEAD IN SOUTHEAST LAND MINE EXPLOSION
Twelve people died and twelve were injured when a minibus hit a land mine near the southeastern town of Mardin early on Monday. The minibus was shuttling between two villages in Mardin when it hit a mine which reports say was planted by militants of the PKK terrorist organization. Among the people who died were women and children.

Meanwhile, Turkish security forces launched a large-scale operation against the PKK late on Sunday in and around Mt.Cudi, close to Sirnak. The report said the operation began after a tip-off that a group of separatist terrorists had infiltrated Mt.Cudi from northern Iraq. The Turkish army has been carrying out a cross-border operation in the area for nearly a week. Turkish fighter planes heavily bombed Mt.Cudi and nearby areas late Sunday while Turkish troops began a ground operation early Monday with the aim of blocking all escape routes from Turkey into northern Iraq. /Milliyet/

TRNC: FEDERATION, INTERCOMMUNAL TALKS NO LONGER ON AGENDA
Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas said yesterday that federation of the divided island was no longer on the agenda and that inter-communal talks had come to an end as a result of the European Union's (EU) invitation to Greek Cyprus for accession talks next year. Denktas said yesterday that the TRNC had decided not to participate in United Nations (UN)-sponsored inter-communal talks from now on. /Milliyet/

SCHARPING TO VISIT TURKEY
Assembly Group Chairman of the German Socialist Democrat Party (SPD) Rudolf Scharping will come to Turkey for a three-day visit. Scharping, will first deliver a speech at a Group meeting of the Republican People's Party (CHP). The visit was planned in May during CHP Chairman Deniz Baykal's visit to Bonn. /Milliyet/

US CRITICIZES EU
The Clinton administration criticized the European Union (EU), which asummed a discriminative stance against Turkey during the Luxembourg summit and wants Turkey not to take hasty decisions regarding the future of the country and the region. The main point of the US message is: ''Do not respond hastily to momentory results from the decisions taken last week.'' Spokesman of the US State Department, James Foley, said: ''We believe that Turkey's place is in Europe.''

Meanwhile, an article in the Washington Post yesterday noted that the closure of the path to full EU membership of Turkey was a blow against the Washington's efforts to solve the Cyprus problem. /Milliyet/

'BALKAN FORCE' PROPOSAL FROM TURKEY
Turkey has launched initiatives for the establishment of a ''Joint Balkan Force'' within the framework of NATO. Foreign Minister Ismail Cem will bring Turkey's proposal into discussion during a current NATO meeting in Brussels. Cem will call for participation in the Balkan force during the Europe-Atlantic Association Council to be held tomorrow. The joint peace force will be set up under the umbrella of the Partnership for Peace (PFP) established to make ready the former Eastern Bloc countries within the framework of NATO. Turkey's proposal will be open to all NATO members and Balkan countries and members of the PFP. Turkey will also make a proposal for the establishment of a ''PFP Training Centre'' in Turkey. /Hurriyet/

THIRD PETROLEUM COUNCIL STARTS
In the Council it was stressed that the Baku-Supsa and Baku-Novorossik petroleum pipelines might create danger and trouble for the Bosphorus marine traffic. State Minister Gurdere said that Istanbul could be threatened by the huge amount of petroleum which will be transported through Bosphorus. He also emphasized that the most appropriate pipeline was Baku-Ceyhan route.

In the opening ceremony President Demirel delivered a speech in which he stressed the need for nuclear energy in modern times, not only as a source of energy but also for the technological improvements Turkey needs urgently. /Cumhuriyet/

[22] TURKEY-ENERGY-OIL-GAP - TPAO GENERAL DIRECTOR SANCAR: - ''99 PERCENT OF FIXED OIL RESERVES ARE IN GAP REGION'' - ''WE HAVE 38 MILLION TONNES OF CRUDE OIL RESERVES. WE SUPPLY 10,3 PERCENT OF TOTAL CONSUMPTION''

Sancar said in his article published in GAP Regional Development Administration Directorate's periodical named ''GAP Review'' that oil shares 40 percent in world's energy consumption and this average rose to 46 percent in Turkey.

Sitki Sancar said that Turkey has still 38 million tonnes of crude oil reserves that can be produced, adding that they produced 2.72 million tonnes of oil and met 10,3 percent of Turkey's total oil consumption at the end of 1996.

Stating that TPAO produces 51 thousand barrels of crude oil a day, Sancar said, ''we continue our secondary production implementations in some oil fields to increase oil production. We continue our carbondioxide implementation in Western Raman field, carbondioxide and steam implementations in Ikiztepe field, water-injection implementation in Garzan, Kayakoy and Beykan fields and secondary production implementations in those fields.''

Pointing out that TPAO will realize oil-research projects in Hakkari, Gaziantep and Hatay region till the end of this year, Sancar said, ''our aim is to make a total of 2,500 meters of drilling in Hakkari, 37,215 meters of drilling in Gaziantep. We continue our preliminary researh etudes in Hatay. Besides, we will make a total of 5,700 meters of joint-drilling studies with Shell, MND and ARCO TURKEY INC in Adiyaman.''

[23] TURKEY-INTERNAL - CLOSURE CASE OF WELFARE PARTY - CONSTITUTIONAL COURT STARTS TO DISCUSS CLOSURE CASE

President of the Constitutional Court Yekta Gungor Ozden said before the morning session that ''as long as the report of the Rapporteur is not read, nothing is clear.''

After the morning session, Ozden stated that the Constitutional Court delegation could not take up the closure case of Welfare Party, but instead it took up annulement of several laws.

Another sesssion is held in the afternoon and Rapporteur Yusuf Ozturk is expected to read his 470-page report regarding the closure case of the Welfare Party (RP).

Rapporteur Yusuf Ozturk had said in his report that the Welfare Party should be closed due to Articles 68-69 of the Constitution and also to the concerned articles of the Political Parties Code, but his opinions were not binding for the court.

Chief Prosecutor Vural Savas filed a case before the Constitutional Court on May 21 1997 and called for the closure of RP under Articles 68/4 and 69/6 of the Constitution. The concerned articles foresee the closure of a political party, if it becomes focus of all anti-secular activities.

[24] TURKEY-US-IMF - STATE MINISTER TANER LEAVES FOR US - GUNES TANER TO MEET IMF OFFICIALS

Taner before his departure from Ataturk Airport said that European Union's political decision against Turkey was an ''unfair treatment'', adding ''Turkey will seek for its benefits and interests within its own structure.''

Taner said that the technical-level meetings with IMF officials still continue, adding that he will seek for opportunities regarding Turkey's entrance to next year with a more powerful economy during his contacts in Washington.

Responding to a question, Taner said, ''EU took a decision. Turkish Council of Ministers made a sufficient statement regarding the decision. Turkey is a powerful state and thus it can solve its problems within its structure. Turkey has fulfilled its obligations but EU made an unfair treatment against Turkey by its political decision.''

Stating that Turkey is a part of European geography, Taner said, ''how do you claim that Europe excludes Turkey just because it took a political decision? We have 2,5 million people in Europe. We have investments worth more than 100 billion German marks, and we have 150-200 billion marks deposit. Who is excluding who?''

Taner, accompanied by Central Bank President Gazi Ercel, will head the Turkish delegation during the talks which aim at winning the IMF's support for Turkey's economic programme.

A Turkish delegation including Treasury Undersecretary Yener Dincmen, Deputy Undersecretary Cuneyt Sel and State Planning Organisation Deputy Undersecretary Faik Oztirak is presently holding talks with the IMF in Washington.

Taner did not clarify whether the talks would produce a stand-by accord with the IMF.

[25] TURKEY-OIC-WESTERN THRACE - TURKEY PLEASED ABOUT ADOPTION OF DRAFT RESOLUTION BY OIC REGARDING TURKISH MINORITY IN WESTERN THRACE - TURKEY CONDEMNS THE IMPRISONMENT OF XHANTI MUFTI MEHMET EMİN AGA BY GREECE

Foreign Ministry said in a written statement that ''we are pleased by the concern and reaction of Islamic countries concerning the conditions of Turkish minority living in Western Thrace.''

Pointing out that OIC countries adopted a draft resolution about Western Thrace for the first time, the statement called Greece to give up its policy of eradicating the status of Turkish minority living in Western Thrace and treat them as they are first class citizens.

The statement pointed out that Turkey condemns the imprisonment of Xhanti Mufti Mehmet Emin Aga, who was elected by Turkish minority in Western Thrace.

Foreign Ministry also expressed its regret over the prevention of the construction of Koyunkoy Mosque in Xhantia and called Greece to recognize the Muftis who were elected by Turkish minority living in Xhanti and Commotini.

[26] TURKEY-RUSSIA - RUSSIAN PRIME MINISTER CHERNOMYRDIN LEAVES TURKEY - ''OUR DIALOGUE WILL CONTINUE WITH TURKEY ON THE BASIS OF CONCRETE PROJECTS''

Addressing a speech in a dinner hosted by Foreign Economic Relations Committee (DEIK) the same day, Chernomyrdin said that ''Russia respects Turkey and our dialogue will continue on the basis of concrete projects.''

Noting that Russia watches Turkey carefully, Chernomyrdin pointed out that they are open for cooperation and Russia is improving its economic situtation.

Chernomyrdin stressed that Russia is pleased about the increase in trade volumes between the two countries and this year this amount will reach 4,5 billion dollars.

''This means trade volume increased by 17 percent. Yet this is not enough, as Prime Minister Yılmaz says. There is a great potential between Turkey and Russia and we are just at the beginning. The trade volume will increase by 1,5 folds by implementation of the Additional Natural Gas Agreement,'' Russian Prime Minister said.

Noting that Turkish contractors realize 4 billion dollars of the construction services in Russia, which reached 6 billion dollars, Chernomyrdin added that Black Sea Economic Cooperation (BSEC) project offers important investment opportunities for the two countries.

[27] TURKEY-EU - SCHARPING: ''THERE CANNOT BE WAITING-ROOMS REGARDING TURKEY-EUROPE RELATIONS''

Emphasizing the importance of intense-relation-network between Turkish and German social democrats for the improvement in Turkey-EU relations, Scharping said they want Turkey to be a powerful country in Middle East and to be successful in its reforms.

Guest parliamentarian said, ''we want Turkey to be more democratic, secular country.''

Scharping said, '' I want my Turkish friends in CHP to realize and perceive EU's conditions as our joint-targets.''

Stressing that Turkey had launched reforms in human-rights and democracy fields and Prime Minister Mesut Yilmaz had put further steps regarding those issues, Scharping said, ''let's put forward these steps. If these steps are realized, Turkey's entrance to EU expansion process will be accepted.''

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