Anadolu Agency: News in English, 98-07-02

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

02 JULY 1998

CONTENTS

[01] KOSOVO PROBLEM - PRESIDENT DEMIREL: - ''WE RELY ON INTERNATIONAL PUBLIC OPINION TO UNDERSTAND RIGHTFUL CASE OF PEOPLE LIVING IN KOSOVO AND WON'T LEAVE THEM ALONE AGAIN'' - ''BRUTALITY THAT WAS EXPERIENCED IN BOSNIA WON'T OCCUR IN KOSOVO''

[02] JEWISH GOLD SEIZED BY FORCE BY NAZIS - THE US PROMISES TURKEY TO BE MORE RELIABLE

[03] THE US CONGRESS APPROVES THE DELIVERY OF 14 FRIGATES TO TURKEY

[04] CORDOVEZ ON CYPRUS

[05] GUNES TANER, THE MINISTER OF STATE ASKS FOREIGN BANKERS: ''NOT ONLY THE IMF, BUT YOU SHOULD ALSO WATCH TURKEY'' - ''TURKEY IS A PART OF EUROPE''

[06] THE US REQUESTS DIALOGUE BETWEEN TWO COMMUNITIES ON CYPRUS

[07] TURKEY IN BRIEF - 2 JULY 1998

[08] 761 TERRORISTS KILLED WITHIN SIX MONTHS - 28 SECURITY OFFICERS DIED

[09] PRESIDENT DEMIREL RECEIVES SHARIF, PRIME MINISTER OF PUNJAB PROVINCE OF PAKISTAN - DEMIREL: ''THERE ARE NO PROBLEMS BETWEEN TURKEY AND PAKISTAN''

[10] POSITIVE MESSAGE FROM WEU TO TURKEY

[11] FOURTH OF JULY INDEPENDENCE DAY OF THE US - CELEBRATIONS TO BE HELD AT ALL US REPRESENTATIONS EXCEPT THOSE IN ADANA

[12] ''DEMOCRACY, PEACE AND SECULARISM'' DEMONSTRATION STARTS

[13] EXPORTS FROM GAP REGION - AGRICULTURAL AND ANIMAL PRODUCTS EXPORTS OF 253.8 MILLION US DOLLARS IN 6 MONTHS

[14] TURKEY PRESS REVIEW (1)

[15] TURKEY PRESS REVIEW (2)

[16] TURKEY PRESS REVIEW (3)

[17] CETIN, SPEAKER OF PARLIAMENT, RECEIVES LLUIS MARIA DE PUIG, CHAIRMAN OF WEU ASSEMBLY

[18] FOUR CONTRACTORS ARRESTED FOR NEGLIGENCE IN CONSTRUCTIONS IN CEYHAN, WHICH WAS HIT BY THE QUAKE

[19] ATACANLI, THE FOREIGN MINISTRY DEPUTY SPOKESMAN: ''EFFORTS OF BRITAIN, THE FORMER EU TERM PRESIDENT WERE PLEASING, BUT NOT SUFFICIENT''

[20] FOREIGN MINISTER CEM DUE IN ISRAEL

[21] MONETARY PROGRAMME OF CENTRAL BANK - CENTRAL BANK ANNOUNCES MONETARY PERFORMANCE IN FIRST HALF OF 1998 AND TARGETS FOR SECOND HALF

[22] FAREWELL VISIT OF KUZNETSOV, TO ANDICAN, THE STATE MINISTER - ANDICAN: ''KUZNETSOV HAS AN IMPORTANT INFLUENCE ON DEVELOPMENT OF ECONOMIC RELATIONS BETWEEN TURKEY AND RUSSIA''

[01] KOSOVO PROBLEM - PRESIDENT DEMIREL: - ''WE RELY ON INTERNATIONAL PUBLIC OPINION TO UNDERSTAND RIGHTFUL CASE OF PEOPLE LIVING IN KOSOVO AND WON'T LEAVE THEM ALONE AGAIN'' - ''BRUTALITY THAT WAS EXPERIENCED IN BOSNIA WON'T OCCUR IN KOSOVO''

Stressing that Turkey is interested in all the developments in the Balkans, Demirel pointed out, ''we are aware that the confusion occurring in the Balkans damages our friends. We want peace and tranquility for them. Bosnia- Herzegovina gave important lessons to us. We talked about it with Alija Izetbegovic yesterday. We don't expect Belgrade to create a new Bosnia disaster again. Turkey has contacts with the neighbouring countries and the other developed countries on the issue. The brutality that was experienced in Bosnia won't occur in Kosovo''.

Reminding that he will visit Albania on 14 July and hold contacts with the people who migrated to Albania from Kosovo, Demirel said, ''I also held talks with the Albanian and Bulgarian Presidents on the issue. Turkey will do what is necessary to help Kosovo''.

Responding to the questions of the members of the association about the possible difficulties that will be caused by the migration from Kosovo, Demirel noted, ''Turkey will take all the necessary measures in that case. Turkey provided housing for 600 thousand Bosnians and they returned to their country after the civil war ended. We have places in Kirklaraeli that are sufficient to settle 5 or 10 thousand people. Turkey will fulfill her obligations''.

[02] JEWISH GOLD SEIZED BY FORCE BY NAZIS - THE US PROMISES TURKEY TO BE MORE RELIABLE

Turkey was among the countries that were impartial during the Second World War, but has been accused with selling chrome to Germany and helping her to launder the black money, in the US Department of State's second report concerning the issue.

Sukru Sina Gurel, the Minister of State, rejected the allegations. Stuart Eizenstat, the Undersecretary for Economic, Business and Agricultural Affairs of the US Department of State, met with the senior Turkish officials in Washington, D.C., yesterday, and promised to be more stable towards Turkey.

Switzerland was accused with the same allegations in the US Department of State's first report concerning the issue. In the second report Turkey, Spain, Portugal and Sweden were accused of the mentioned allegations and the US officials claimed that the chrome imported from Turkey was used to produce weapons and military equipment.

[03] THE US CONGRESS APPROVES THE DELIVERY OF 14 FRIGATES TO TURKEY

The draft law has been submitted to the Joint Committee of the US Congress in order to adopt the ''one text law.''

Turkey will purchase three Perry type frigates from the US, while 11 Knox type surplux frigates will be obtained by Turkey. The American administration will donate three of these Knox type frigates to Turkey.

The Turkish Fleet will use the Knox type frigates as cargo ships for carrying spare parts.

The Turkish Fleet took delivery of three Perry type frigates last January at a ceremony held in the state of South Carolina in the US.

[04] CORDOVEZ ON CYPRUS

Cordovez is scheduled to meet with Glafcos Clerides, the Leader of the Greek Cypriot Administration at 3:00 p.m. and with President Rauf Denktas of the Turkish Republic of Northern Cyprus (TRNC). Diego Cordovez who will stay on the island until Saturday, is expected to meet with the leaders of the two sides for the second time. He will address a press conference at the Ledra Palace in buffer zone on Saturday before he leaves the island.

[05] GUNES TANER, THE MINISTER OF STATE ASKS FOREIGN BANKERS: ''NOT ONLY THE IMF, BUT YOU SHOULD ALSO WATCH TURKEY'' - ''TURKEY IS A PART OF EUROPE''

Addressing the dinner hosted by the ''Union of Turkish Bankers,'' Taner focused on the Turkish economy and the recent agreement signed with the IMF.

''The Turkish government fulfilled all the targets foreseen for us, the thing that should be done now is to make the targets stable,'' said Taner, adding that the inflation rate will be decreased to 50 percent at the first step.

Attributing importance to the changes in the privatization and tax law, Taner said that the Turkish government is successful in stabilizing the economic balances, adding ''foreign bankers, you should watch us and decide by looking at the numbers.''

Noting that the Baku-Ceyhan oil pipeline will become the second greatest energy pipeline in the world, Taner added that the 350-400 billion US dollars in oil sales will be realized within the coming 15 years.

Responding to the questions of the foreign bankers, Taner said that the relations of Turkey with Europe should be taken on the basis of economic and political integration, adding that there is a Turkish capital of 100 billion marks in Europe.

Stressing that the British government encourages British businessmen and investors to invest in Turkey, Taner said that Turkey doesn't have a problem of economic integration with Europe.

Taner added that Turkey is a part of Europe, pointing out that Turkey won't insist on joining the EU, unless the latter puts forward suitable conditions for Turkey.

[06] THE US REQUESTS DIALOGUE BETWEEN TWO COMMUNITIES ON CYPRUS

Responding to the questions of the journalists about the last resolutions of the United Nations Security Council concerning Cyprus, James Rubin, the Assistant Secretary for Public Affairs of the US Department of State, noted that the best way to improve the relations between the two communities is the dialogue process. Rubin also reminded that both leaders have to make difficult decisions.

The UN Security Council adopted two resolutions recently concerning the extension on the island of the term of office of the UN Peacekeeping Forces on Cyprus and with the goodwill mission of Kofi Annan, the Secretary General of the United Nations.

The first resolution foresees the extension of the term of office of the UN peace force on Cyprus until the end of this year, with the approval of the Cyprus Government. The Turkish Republic of Northern Cyprus (TRNC) stated to the term presidency of the UN Security Council that she doesn't accept such a resolution within this framework, and Turkey supported her rightful attitude.

The second resolution defends the continuity of the illegal ''Republic of Cyprus'' and its sovereignty to be spread to the entire island. The TRNC and Turkish Governments reacted harshly to the resolution.

The US failed in her efforts aimed at dialogue between the two sides. She claimed that the failure was caused by the conditions set forth by the Turkish Cypriots.

The US Administration offers as a solution to the Cyprus problem a federation with two communities and two sides.

[07] TURKEY IN BRIEF - 2 JULY 1998

Yucelen joined the meeting of the European Research Coordination Committee (EUREKA) and took over the term presidency of the Committee on behalf of Turkey.

ANKARA - Shahbaz Sharif, the Prime Minister of Punjab Province of Pakistan came on Thursday to Turkey in order to hold official contacts.

Sharif is scheduled to be received by President Suleyman Demirel later today.

ANKARA - Lluis Maria de Puig, the Chairman of the Assembly of the Western European Union (WEU) visited on Thursday the mausoleum of Ataturk, the Founder of the Republic of Turkey.

De Puig also visited the museum at the mausoleum and received information about the items displayed in the museum.

KARS - Security forces captured on Thursday ten Pakistani immigrants who entered Turkey illegally at Kars.

The officials told the A.A correspondent that the Pakistani people came to Turkey in order to find a job.

The illegal immigrants were taken into custody.

Investigation on the incident is underway.

ANKARA - Ismet Sezgin, the Deputy Prime Minister and Defense Minister said on Wednesday that the government, not the army, struggles against fundamentalism.

Responding to the questions of journalists at a reception held at the Canadian Embassy in Ankara for the Canadian National Day, Sezgin said that the government takes into consideration the suggestions, but it does what the laws state and this is same for the struggle against fundamentalism.

Hikmet Cetin, the Speaker of the Parliament, Murat Karayalcın, the Chairman of the Parliamentary Foreign Affairs Commission, the high ranking diplomats and other officials attended the reception.

[08] 761 TERRORISTS KILLED WITHIN SIX MONTHS - 28 SECURITY OFFICERS DIED

Operations are underway against the separatist terrorist organization and 16 terrorists surrendered to security forces and eight terrorists were captured alive during the clashes that erupted within the last one month.

Aydın Arslan told the A.A correspondent that a heavy blow was struck to the separatist terrorist organization this year and the organization became marginal with the operations staged against it.

[09] PRESIDENT DEMIREL RECEIVES SHARIF, PRIME MINISTER OF PUNJAB PROVINCE OF PAKISTAN - DEMIREL: ''THERE ARE NO PROBLEMS BETWEEN TURKEY AND PAKISTAN''

Addressing the meeting, Demirel described Pakistan and Turkey as friendly states, and stressed that Turkey aims to further develop relations with Pakistan.

Pointing out that there are no problems between the two countries, Demirel noted that the visit to Turkey of Sharif will be extremely productive and useful for the relations.

Shahbaz Sharif thanked Demirel for Turkey's hospitality.

[10] POSITIVE MESSAGE FROM WEU TO TURKEY

Ismail Cem, the Foreign Minister, met with de Puig, who came to Turkey on Wednesday for an official visit.

Addressing a statement before the meeting, Cem said that he worked with de Puig in the Socialist Group within the framework of the Council of Europe (COE) Parliamentary Assembly for 10 years.

Noting that Turkey is very effective in the WEU as a strong NATO country, Cem pointed out that they will evaluate the relations between Turkey-WEU and between Turkey-EU with de Puig.

De Puig said that he is a close friend of Turkey, adding that his contacts will probably be very easy and positive after working 10 years with Ismail Cem.

[11] FOURTH OF JULY INDEPENDENCE DAY OF THE US - CELEBRATIONS TO BE HELD AT ALL US REPRESENTATIONS EXCEPT THOSE IN ADANA

The US Embassy's written statement pointed out that an official invitation will be given in Ankara and a reception will be organized at the American Consulate in Istanbul tonight within the framework of the celebrations.

The statement also noted that the fund assigned for the celebrations that were canceled because of the disaster in Adana Province and the surrounding region, will be donated to the victims of the earthquake.

[12] ''DEMOCRACY, PEACE AND SECULARISM'' DEMONSTRATION STARTS

Democratic organizations and groups from several political parties convened at the Tandogan Square in the morning and started to walk to the Sıhhiye District.

The group opened banners, which condemn all kinds of scandals including the Susurluk.

The people, who are in front of the group carry a banner which shows the photograph of the people, who were burned to death in Sivas.

[13] EXPORTS FROM GAP REGION - AGRICULTURAL AND ANIMAL PRODUCTS EXPORTS OF 253.8 MILLION US DOLLARS IN 6 MONTHS

The products worth 307.6 million US dollars were exported in the first six months of last year.

Officials told the A.A correspondent that animal products worth 9.4 thousand US dollars, grain and pulses worth 82.6 million US dollars, dried fruit worth 22.1 thousand US dollars and textile products worth 139.6 million US dollars were exported between January and June 1998.

The decrease in the exports was reported to be caused by the problems in the Middle Eastern region, the Gulf crisis and the economic embargo implemented on Iraq by the United Nations.

[14] TURKEY PRESS REVIEW (1)

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

ANKARA'S EFFORTS ARE PLEASING It has been noted on the Internet that the Staff Monitoring Agreement signed between Turkey and the IMF is ''very pleasing''. A one-page article noted that the International Monetary Fund (IMF) administration has welcomed the agreement, which aims at observation by the IMF experts of Turkey's policy to reduce the rate of inflation. Turkish officials and IMF experts have been in close contact with each other regarding the policies to provide macroeconomic stability and reduce the rate of inflation. The IMF administration supports Turkey's efforts and believes that if the conditions of the agreement are fully applied, then there will be an important decrease in the rate of inflation in 1.5 years' time. Turkey has accepted observations by the IMF experts every three months until the end of 1999. /Sabah/

TURKEY TO PURCHASE FOUR AWACS
Turkey is opening a tender for the purchase of four AWACS (Airborne Warning and Control System) aircraft equipped with radar systems to control the Aegean Sea and Turkish airspace. Four companies will be invited to bid, three of which are from the US and one from Israel. The firm which wins the bidding will be announced in 1999. It is planned that the project will be completed in 2002 when the AWACS become operational in the Turkish Air Forces. /Sabah/

CEM DUE IN BERLIN Ismail Cem, the Foreign Minister, will participate in an international forum which will be staged in Berlin by the Bertelsmann Foundation between 3-4 July. A Foreign Ministry written statement said that the session will be chaired by Henry Kissinger, the former US Secretary of State, and that Ismail Cem, Javier Solana, the NATO Secretary-General and Richard Holbrooke, the US Special Representative to the UN will address the session.

PAKISTAN WANTS TO INCREASE COOPERATION Ishab Dar, the Pakistani Minister of Trade, said yesterday that several infrastructural projects, which will be realized, will offer great opportunities for investors. Ishab Dar and Shahbaz Sharif, the Prime Minister of Punjab Province, who arrived in Istanbul to participate in the Turkish-Pakistani Business Council meeting, gave a conference at the Ciragan Palace, giving information about the general economic situation in Pakistan and cooperation opportunities between Turkey and Pakistan.

TURCO-BULGARIAN RELATIONS Dr. Hristo Ivanov Vasilev, the Bulgarian Governor of the Haskova region and the accompanying delegation including 18 people, came yesterday to Edirne in order to hold contacts, it was reported. The delegations of Turkey and Bulgaria will discuss the reports prepared by the commissions of agriculture, culture and sports.

GERMANY ASSIGNS 2 MILLION DM Germany has assigned two million DM for people who suffer from the earthquake, which shook the southern province of Adana and its surroundings.

ATHENS WARNS ANKARA Dimitris Reppas, the Greek Government Spokesman, said yesterday that Turkey couldn't blackmail Greece regarding the full EU membership of the Greek Cypriot Administration. Reppas held a press conference yesterday and noted that according to a decision made during the Luxembourg Summit and recalled in Cardiff, the issue of the full EU membership of the Greek Cypriot Administration isn't connected to the solution of the Cyprus problem. /Sabah/

FORMER ANAP DEPUTIES JOIN DYP Two deputies who earlier resigned from the senior coalition partner Motherland Party (ANAP), joined the opposition True Path Party (DYP) yesterday. Rasim Zaimoglu from Giresun and Ibrahim Yazici from Bursa joined the DYP during a ceremony held at a DYP parliamentary group meeting. Including Yazici and Zaimoglu, the DYP's seats in Parliament now number 96. /All papers/

SECURITY FORCES KILL 41 PKK TERRORISTS In a series of recent operations, security forces in southeast Turkey have killed 41 members of the PKK terrorist organization. Two members of the separatist organization were captured during the operations, which took place mainly in Hakkari Province. Three security force members died in the operations. Regional forces have confirmed that the operations are still underway. Meanwhile, it has been reported that the PKK has lost ground in Turkey and in Northern Iraq. Intelligence sources say that seizures of drugs by security forces have dealt a severe blow to the PKK and the financial resources it gains by illegal drug smuggling. Within the last one and one half years, the gendarmerie forces in the Southeast have uncovered nearly 300 tons of narcotics in the hideouts used by the PKK. /All papers/

[15] TURKEY PRESS REVIEW (2)

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

SYRIAN DEPUTY FOREIGN MINISTER IN ANKARA
Turkey and Syria are trying to reinvigorate troubled bilateral relations with a visit by Syria's Deputy Foreign Minister Adnan Omran to Ankara. Talks to jump-start bilateral relations started yesterday with a meeting between the Syrian team and a Turkish delegation headed by Korkmaz Haktanir, the Undersecretary of the Foreign Ministry. During the three-hour meeting the sides exchanged views on various disputes and issues, addressing each item in order according to its relative importance.

Haktanir said that the terrorism issues, which are seriously hampering relations, were brought up at the meeting in a very detailed manner, thus avoiding a superficial assessment of the problem. Omran is expected to meet today with Ismail Cem, the Foreign Minister, before departuring for Syria. /All papers/

TURKEY-EU ASSOCIATION DISCUSSES OBSTACLES IN TRADE RELATIONS
The Turkey-EU Association Committee met yesterday in Brussels at a technical level. For the first time, the former EU term president Britain gave an official report on the conclusions of the Cardiff Summit to officials attending from Turkey's Foreign Ministry. During the meeting, the EU urged Turkey to lift a partial ban on the EU meat and livestock imposed for health reasons. Turkey noted this request and reportedly replied that the EU itself has internal problems concerning the issue, but that it would neverthless continue dialogue on the issue.

PIPELINE FROM TURKMENISTAN TO TURKEY AND EUROPE
A consortium set-up to transport Turkmen natural gas to the Turkish and European markets has started to construct a 1200 km pipeline. The consortium includes GE Capital, Bechtel Enterprise and the Amoco Corporation. /Cumhuriyet/

MARINA TO BE CONSTRUCTED IN GAP
Kadir Calisci, the Mayor of Adiyaman, said that they began initiatives to construct a marina at the Ataturk Dam artificial lake. He added that after the construction of the marina international water sports competitions would be held at the Ataturk Dam lake. Calisci noted that they aimed to complete construction before the 4th GAP Water Sports Festival in October. /Cumhuriyet/

CABOTAGE CELEBRATIONS
The 72nd Cabotage Festival was begun yesterday in Istanbul during a ceremony which Burhan Kara, the Minister of State Responsible for Maritime Affairs, and Aydan Erol, the Admiral of the Northern Navy Command, attended. After laying wreath at the Barbaros Monument, Kara said in a speech that today Turkey was constructing its ships and yachts in line with all the rights which cabotage offered. /`Hurriyet/

''TURKEY WALKING TOWARDS A BRIGHT FUTURE''
The Prime Minister yesterday opened to traffic the last section of the Izmir-Aydin highway. Yilmaz said at the opening ceremony that Turkey was determined to walk towards a bright future and added that there was a great surge of development throughout the country with investments in education, culture, the arts and infrastructure. Yilmaz also opened an Infrastructure Production Establishment set-up by the Aydin Municipality. /Hurriyet/

TANER IN LONDON
Gunes Taner, the Minister of State Responsible for the Economy, gave a speech at a conference on ''Emerging Markets'' in London yesterday. In his speech Taner said that Turkey had become a rising star in the world markets, especially after the crisis in the Asian markets. Taner also emphasized the recent agreement signed between Turkey and the International Monetary Fund (IMF), saying that the agreement was a sign of the trust the IMF had in the Turkish economy.

Meanwhile, the Undersecretariat of the Treasury announced yesterday a six- month borrowing programme in line with the agreement signed with the IMF. According to the programme the borrowing limit of Turkey for the next six month stands at 4.8 quadrillion TL.

The Turkish business world yesterday announced its support for the programme, noting that in line with improvements in the economy, the IMF would increase its support to Turkey. /Hurriyet/

[16] TURKEY PRESS REVIEW (3)

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

ARAFAT TO VISIT TURKEY
Palestinian Statesman Yaser Arafat will come to Turkey during the last week of July as the official guest of President Suleyman Demirel. Ismail Cem, the Foreign Minister, will pay a visit to Palestine while returning from Israel after completing his contacts between 6-9 July. Cem will also meet with Arafat. /Hurriyet/

PRIVATIZATION INCOME
The Privatization Administration Board (PAB) is rapidly advancing according to the programme it has promised both to the public and the politicians. At the end of the first six months of this year, the PAB has brought in 3 billion 182.2 million US dollars. The PAB aims to realize privatization projects worth 783 million US dollars during the third quarter of the year. /Milliyet/

US DELEGATION MEETS WITH DEMIREL AND BIR
Visiting members of the US Congress Ways and Means Committee yesterday asked President Demirel about the ''danger of fundamentalism, presidential system discussions and barriers blocking investment potential'' and discussed military matters with General Cevik Bir, the Deputy Chief of General Staff. Committee members expressed their concerns about the legal arrangements barring non-Turks from investing in the energy sector./Milliyet/

REINFORCEMENT FLEET TO THE AEGEAN
The US Congress has given permission for the transfer of battleships that the Pentagon has long promised to give to Turkey and Greece. The Congress has agreed to give 14 ships to Turkey considered ''old'' by the Pentagon. Diplomatic sources state that the paragraph concerning the transfer to be realized through ''leasing'' was accepted by the Conference Committee, but wasn't finalized due to discussions concerning other topics of the defense budget. /Milliyet/

FOREST FIRES IN MUGLA AND BELEK
After fires broke out in the forest near Mugla and Belek in the south of Turkey, large areas of forests near the tourism centres have been burned down. /Milliyet/

[17] CETIN, SPEAKER OF PARLIAMENT, RECEIVES LLUIS MARIA DE PUIG, CHAIRMAN OF WEU ASSEMBLY

Addressing the meeting, Cetin said that Turkey's main aim within the framework of her relations with the WEU, is full membership in the Union. He added, ''our status is a partner membership for the time being. Turkey stated that she will draw back whenever she sees that she can't be a full member in the Union and Turkey's policy didn't change''.

Pointing out that Turkey's status in the WEU isn't correct in accordance with the international rules, Cetin said, ''the European countries that are members of the NATO should be provided with full membership in the WEU, because the WEU can use the opportunities and facilities of the NATO when it is necessary. Turkey is a full member of the NATO, but she isn't in the WEU. It can't continue so. Therefore, decisions made at Maastricht should be changed in favour of Turkey''.

Lluis Maria de Puig stressed that Turkey that is a full member of the NATO should also become a full member of the WEU.

[18] FOUR CONTRACTORS ARRESTED FOR NEGLIGENCE IN CONSTRUCTIONS IN CEYHAN, WHICH WAS HIT BY THE QUAKE

Ibrahim Ozdemir, the Chief Prosecutor of Ceyhan, said that 85 people died in Ceyhan and the four contractors are accused of causing the death of people due to negligence and carelessness and they were put into prison in Ceyhan.

[19] ATACANLI, THE FOREIGN MINISTRY DEPUTY SPOKESMAN: ''EFFORTS OF BRITAIN, THE FORMER EU TERM PRESIDENT WERE PLEASING, BUT NOT SUFFICIENT''

Atacanlı said at a weekly press briefing, ''time will show the effect of the Term Presidency of Austria on Turkey.''

''We welcomed the efforts of Britain to improve Turkish-EU relations, but they weren't sufficient. We can't estimate what will happen during the Term Presidency of Austria, which will last six months, but we want to see positive developments,'' Atacanlı added.

[20] FOREIGN MINISTER CEM DUE IN ISRAEL

Sermet Atacanli, the Deputy Spokesman of the Foreign Ministry, addressing a weekly news conference said it was foreseen that Cem would proceed to the Palestinian Administrative region and meet with the Palestinian officials during the visit.

Atacanli said that bilateral relations as well as the Middle East Peace Process and regional issues will be discussed during Cem's visit.

Atacanli also said that Faysal Huseyni, who is responsible for Jerusalem affairs in the Palestinian National Administration Cabinet, will come to Turkey on Thursday in response to the invitation of Sukru Sina Gurel, the Minister of State.

Huseyni is scheduled to meet with President Suleyman Demirel, Ismail Cem, the Foreign Minister, and Sukru Sina Gurel, the Minister of State, during his visit which will end on 4 July.

Atacanli said, ''Turkey, which has always supported the justified case of the Palestinians, is trying to develop bilateral relations with this country in every field. Huseyni's visit forms a new stage for reaching this aim.''

Responding to a question concerning the visit of Cem and the Palestinian Minister occurring at the same time, Atacanli said ''it isn't true to establish a link between these two visits. Turkey follows a policy which preserves the balances. The support which Turkey shows to the Arab world is clear.''

[21] MONETARY PROGRAMME OF CENTRAL BANK - CENTRAL BANK ANNOUNCES MONETARY PERFORMANCE IN FIRST HALF OF 1998 AND TARGETS FOR SECOND HALF

The Central Bank also announced the realization in the reserve money targets for the second quarter of the year.

The Central Bank said in a written statement that the open market and monetary market transactions among banks and the transactions through the foreign exchange-effective markets were effectively used in the first half of the year in accordance with the monetary programme targets.

The Central Bank stated that a positive conjuncture started due to the decrease in the inflationist expectations, the Treasury's borrowing less than its payments and the recovery in the budget balance, excluding interest, since March 1998.

The statement said that reserve money, as of 30 June, increased 13.1 percent to 1 quadrillion 575 trillion Turkish Liras (TL) compared to the amount on 31 March.

The reserve money, in the second quarter, increased 32.8 percent compared to the amount on 1 January. Thus the reserve money increased 17.3 percent in the first quarter.

The statement said that the positive developments since March and the decrease in the state domestic borrowing debenture second market interests brought on the Central Bank's withdrawal of more liquidity in the markets with the inter-bank monetary market transactions.

''In other words, the Central Bank became a debtor to the markets in the second quarter through the open market transactions,'' it stated.

The Central Bank said that it would put greater emphasis on controlling the growth of net domestic assets in guiding monetary policy as it seeks to put a halt to the high inflation.

''The Central Bank will continue in the second half to apply its monetary and exchange rate policies in line with the aim of year-end 50 percent inflation,'' the statement said.

It said that the expansion of net domestic assets would be kept under tight restraint in the coming months because of the difficulty in predicting demand for base money during the current period of disinflation.

Net domestic assets are defined as reserve money plus banks' foreign exchange deposits with the Central Bank, less the net foreign assets of the Central Bank.

In line with this, the Central Bank will maintain its policy of not extending credit to the public sector, which it said had a positive impact on the net domestic assets so far this year.

The wholesale price inflation fell from 91.0 percent at the end of last year to 79.9 percent in May and is targeted to fall to 50 percent by end- 1998 and 20 by end-1999 under an accord reached between Turkey and the International Monetary Fund (IMF) last weekend.

''The target for net domestic assets at the end of 1998 has been set at negative 1,514 trillion TL,'' the statement said. Net domestic assets stood at a negative 1,778 trillion TL at the end of June.

The Central Bank plans to intervene less aggressively in managing day-to- day market liquidity in the coming months, allowing short-term interest rates to fluctuate more freely.

''Taking into account the fundamentals affecting net domestic assets, the Central Bank doesn't seek a rapid increase in foreign exchange reserves in the second half,'' it said.

The Central Bank's net international reserves, including gold, stood at 26.6 billion US dollars at the end of June, up around 8 billion US dollars from the end of last year.

The Central Bank said that there would be a continuation of the volatility seen in the financial markets generated by its decision to halt the banks' compulsory foreign exchange transfers to the Central Bank in June and July.

During the first five months of the year, the TL depreciation against a basket of foreign currencies was 25 percent, compared with a 24.4 percent rise in the wholesale prices.

In the remainder of the year, the exchange rate will be managed in a manner consistent with the end-1998 inflation aim of 50 percent, it said.

[22] FAREWELL VISIT OF KUZNETSOV, TO ANDICAN, THE STATE MINISTER - ANDICAN: ''KUZNETSOV HAS AN IMPORTANT INFLUENCE ON DEVELOPMENT OF ECONOMIC RELATIONS BETWEEN TURKEY AND RUSSIA''

Vladimir Vadim Kuznetsov, the Russian Ambassador to Turkey, whose term of office ended in Ankara, paid a farewell visit to Ahat Andican the same day.

Describing Kuznetsov as a ''talented Russian foreign policy officer,'' Ahat Andican said that Kuznetsov has had active missions for 30-35 years in the Russian foreign policy.

''Mr. Kuznetsov had an important effect on the development of commercial relations between Turkey and Russia,'' Andican added.

Responding to the questions of journalists about the S-300 missiles, Kuznetsov claimed that the S-300 missiles don't have offensive, but defensive aims.

''The sale of the S-300 missiles is entirely a commercial issue and it doesn't have any connection with politics,'' the Russian Ambassador added.

Kuznetsov said they have postponed the first delivery date of the S-300 missiles to the Island, adding that deployment of the missiles was planned in the autumn.

''We don't want this issue to affect Turkish-Russian relations. The Greek Cypriots would have purchased such weapons from other countries if they didn't purchase them from the Russian companies. We don't want to lose this contract'' Kuznetsov said.

Reiterating the view that the issue of the deployment of the S-300 missiles on the island wouldn't be realized if an agreement is signed to purify Cyprus from weapons, Kuznetsov said ''we don't share the views that these missiles would threaten the security of Turkey and give damage to the relations of the two countries.''

Speaking on the issue of the Republics which have newly gained their independence, Andican said that Turkey and Russia should cooperate to this end.

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