Anadolu Agency: News in English, 98-07-08

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

08 JULY 1998

CONTENTS

[01] FOREIGN MINISTER CEM IN ISRAEL - CEM MEETS WITH ISRAELI PM NETANYAHU - NETANYAHU: ''TURKEY'S SETTING UP GOOD RELATIONS WITH COUNTRIES OF MIDDLE EAST CONTRIBUTES TO PEACE PROCESS'' - CEM: ''COOPERATION ISN'T INTENDED AGAINST ANYONE''

[02] STATUS OF FOREIGN TRADE COMPANIES

[03] OPERATION IN SOUTHEAST - TEN TERRORISTS KILLED - ONE SOLDIER DIES

[04] 10,000 YEAR OLD PLACE OF WORSHIP - WORSHIP CENTER BELONGING TO 8000 BC REVEALED DURING EXCAVATIONS IN ORENCIK VILLAGE OF SANLIURFA PROVINCE

[05] ENERGY PRODUCTION AT KRALKIZI DAM - 146 MILLION KWH ENERGY TO BE PRODUCED ANNUALLY

[06] ACCIDENT IN PREMIER YILMAZ'S CONVOY - PREMIER YILMAZ: ''THREE PERSONS HAVE NO CRITICAL WOUNDS''

[07] TURKISH PRESS REVIEW (1)

[08] TURKISH PRESS REVIEW (2)

[09] TURKISH PRESS REVIEW (3)

[10] AKSAN, GENERAL DIRECTOR OF SECURITY IN ELAZIG PROVINCE: ''36 SEPARATIST TERRORISTS WERE CAPTURED IN FIRST HALF OF THE YEAR''

[11] S AND P OFFICIALS IN TURKEY

[12] MERRILL LYNCH, ONE OF THE CONSULTING FIRMS OF TURKISH TELECOM EVALUATES TURKEY: ''INFLATION IS IN A DECREASE TREND IN TURKEY AND FOR THE FIRST TIME THE INFLATIONARY EXPECTATIONS STARTED TO DISAPPEAR''

[13] REPORT OF STATE PLANNING ORGANIZATION

[14] INCREASE IN ELECTRIC PRODUCTION - PRODUCTION INCREASED BY 10.01 PERCENT IN FIRST THREE MONTHS OF THIS YEAR COMPARED WITH THE SAME PERIOD LAST YEAR

[15] BELARUS WITHDRAWS NOTE YESTERDAY THAT SHE GAVE TO THE EMBASSIES INCLUDING TURKISH EMBASSY

[16] THE YOUNG AMERICAN POLITICIANS AT GAP

[01] FOREIGN MINISTER CEM IN ISRAEL - CEM MEETS WITH ISRAELI PM NETANYAHU - NETANYAHU: ''TURKEY'S SETTING UP GOOD RELATIONS WITH COUNTRIES OF MIDDLE EAST CONTRIBUTES TO PEACE PROCESS'' - CEM: ''COOPERATION ISN'T INTENDED AGAINST ANYONE''

Ismail Cem, the Foreign Minister, who is on a three-day official visit to Israel, and Netanyahu held a joint press conference after their meeting.

Addressing the joint press conference, Netanyahu said that the visit of Cem to Israel is the natural result of good neighbourly relations and the extension of the improving Turkish-Israeli relations. ''The Turkish-Israeli military cooperation agreement isn't intended against anyone. The aim of this is to bring peace, stability and prosperity to the region,'' Netanyahu said.

Complaining about the Palestinians' not fulfilling their obligations like anti-terrorism, Netanyahu said, ''certainly, the Turkish-Israeli relations contribute to the region.''

Foreign Minister Cem said that he shares the same approach, adding, ''The blossoming ties with Israel won't be held hostage to other states. The defense industry and military training agreements aren't against anyone. This is an agreement aimed at our common sensitivities.''

Giving a response to the reactions of Syria, Iraq and Iran against his visit to Israel, Cem said, ''we have good relations with all our neighbours. We are trying to reduce the problems. Our relationship with Israel isn't a topic which we will discuss with any country.''

Benjamin Netanyahu said that he will pay a visit to Turkey following the visit of Prime Minister Mesut Yilmaz to Israel in September 1998.

Ismail Cem said that Netanyahu and he discussed mostly the economic issues, stressing that the trade between the two countries had increased by 30 percent.

Pointing out that Turkey approaches the issue of the peace process very sensitively, Cem said that he agrees with the sensitive approach of Netanyahu to the issue of terrorism.

Foreign Minister Ismail Cem also met with Dan Tichon, the Speaker of the Israeli Knesset.

Cem will be received by Ezer Weizman, the President of Israel, and later by Yasser Arafat, the Head of State of Palestine.

Foreign Minister Cem will return to Turkey on 9 July.

[02] STATUS OF FOREIGN TRADE COMPANIES

According to the Undersecretariat of Foreign Trade's announcement published in the Official Gazette the same day, the status of ''Sectoral Foreign Trade Company'' can be given to joint stock companies to be set up with at least ten billion TL by the Farmers' Co-operative Marketing Associations or Unions, which are engaged in agricultural activities within the framework of the rules mentioned in the decision of the Council of Ministers for the approval of the main agreements of the Farmers' Co-operative Marketing Associations or Unions.

The announcement went into effect the same day.

[03] OPERATION IN SOUTHEAST - TEN TERRORISTS KILLED - ONE SOLDIER DIES

The Emergency Rule Region Governor's Office said that security forces, during their operations to provide peace and security in the region, killed eight separatist terrorists in Bereres Stream region in Beytussebap County of southeastern Sirnak Province; one terrorist in the Kumellik District at Genc County of southeastern Bingol Province and one terrorist in the Degirmenduzu District at Kurtalan County of southeastern Siirt Province.

It said that one soldier died in these clashes.

Meanwhile, security forces captured two separatist terrorists in Genc County of Bingol Province and in Bahcesaray County of eastarn Van Province, and one terrorist, who escaped from the separatist terrorist PKK, surrendered to the security forces in Gurpinar County of Van Province.

[04] 10,000 YEAR OLD PLACE OF WORSHIP - WORSHIP CENTER BELONGING TO 8000 BC REVEALED DURING EXCAVATIONS IN ORENCIK VILLAGE OF SANLIURFA PROVINCE

The ''worship center'' belonging to 8000 BC in which the very first human beings worshipped, was revealed after excavations carried out for three years in Orencik village of Sanliurfa Province. Efforts are underway to turn the center into an open museum and thus an important potential for tourism would be gained.

The excavations are financed by the German Institute of Archaeology.

[05] ENERGY PRODUCTION AT KRALKIZI DAM - 146 MILLION KWH ENERGY TO BE PRODUCED ANNUALLY

The officials from the State Water Works (DSI) Tenth Regional Directorate told the A.A correspondent that the first unit at the Kralkizi Dam for which construction was started in 1985 on the Maden Stream, started test production.

Pointing out that the second unit would be included in August in the system composed of two units, officials said that 146 million kwh of energy would be produced annually at that dam and that the Kralkizi Dam and the Dicle Dam constituted an integrated project.

Officials stated that the energy to be produced at the Dicle Dam, which will start to operate at the end of 1998, would be 298 million kwh annually.

Noting that the integrated project of the Dicle-Kralkizi dams would irrigate 130 thousand hectares of land, create employment opportunities for 34 thousand people in the field of agriculture and make a contribution of 25 trillion Turkish Liras of agricultural- energy annually to the Turkish economy, officials said, ''we are awaiting the construction of energy transfer line by the Turkish Electricity Distribution Inc. (TEDAS). The transfer of energy will start when the line is constructed.''

[06] ACCIDENT IN PREMIER YILMAZ'S CONVOY - PREMIER YILMAZ: ''THREE PERSONS HAVE NO CRITICAL WOUNDS''

Responding to the questions of reporters related to the traffic accident in Macedonia, Yilmaz said Yucelen and Altiner were in good condition and because of this they were brought to Istanbul.

Yilmaz said that Fikret Bila will be brought soon.

Bila was wounded seriously in the traffic accident and has undergone brain surgery. Bila's left eye was removed and his condition is satisfactory.

[07] TURKISH PRESS REVIEW (1)

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

CEM-NETANYAHU MEETING
Ismail Cem, the Foreign Minister, who arrived in Israel two days ago, met with the Israeli Prime Minister Benjamin Netanyahu yesterday. During the meeting, further development of political, military and economic relations between Turkey and Israel, the common threat imposed by the weapons of mass destruction being developed by some countries, the Middle East Peace Process and cooperation in the struggle against terrorism were mainly discussed. Netanyahu noted that Turkey was a very important and strategic country in the Middle East which could contribute more to the establishment of a lasting peace and a stable atmosphere with its active policy in the region. Netanyahu said that Prime Minister Mesut Yilmaz would visit Israel in September, and following Yilmaz's visit Netanyahu would pay a visit to Turkey.

Cem said that the Turkish-Israeli cooperation wasn't aimed at any third country. He stated that many issues including Syria and Iran were discussed during the meeting. Cem is scheduled on Wednesday to hold talks with the Palestinian Head of State Yasser Arafat in Ramallah. /All papers/

CAR CRASH OVERSHADOWS YILMAZ'S MACEDONIA VISIT
Rustu Kazim Yucelen, the Minister of State, Sinasi Altiner, a member of Parliament and Fikret Bila, the Ankara representative of the Milliyet daily newspaper, were seriously injured in a car crash in Macedonia on Tuesday, which overshadowed the second day of Prime Minister Mesut Yilmaz's visit to Macedonia. The crash occurred near the town of Bitola, 60 kilometres south of the capital, Skopje, when a private car slammed into Yucelen's vehicle, which was part of a convoy following Yilmaz. Two Macedonians were killed, while Yucelen, Altiner and Bila, as well as their Macedonian driver and a Macedonian woman in the other car, suffered serious injuries.

Yilmaz, who was scheduled to open an honorary consulate in the city of Bitola, called off his official programme and rushed to the hospital to which the three injured passengers had been immediately taken and given the necessary medical treatment. Yucelen and Altiner suffered numerous bone fractures, but their condition wasn't critical. Prominent journalist Bila was hurt most severely and underwent surgery for serious damage to the brain. The Macedonian President's private doctor assisted in the operation.

A special plane, equipped for medical transport, was sent to Macedonia to bring Yucelen, Altiner and Bila back to Turkey. On Monday, Yilmaz and Crvenkovski had face-to-face talks. The two sides signed agreements covering social security and reciprocal recognition of higher-education diplomas. The two premiers also signed a joint declaration expressing their intention to liberalize bilateral trade. Yilmaz returned to Turkey late on Tuesday evening.

DENKTAS MEETS WITH HERCUS
Rauf Denktas, the President of the Turkish Republic of Northern Cyprus (TRNC), has told the new UN Envoy to the island, Ann Hercus, that the only way out from the deadlock in the Cyprus peace process is talks based on the principle of equal states. Denktas received Hercus on Tuesday, who assumed her mission on Monday, and explained to her the historical realities related to the decades-long Cyprus conflict.

Referring to the Greek Cypriot statements that they are ready for talks, Denktas stressed that this attitude on the part of the Greek Cypriots was mere tactics and that their real intention was to take over the whole island, using the title of ''the Cyprus government''. ''I expect the world to tell the Greek Cypriots that they aren't the government of the Turkish Cypriots. I don't expect any solution until this is done, because there are two sovereign states on Cyprus'' Denktas stressed. Hercus, pledged to act as an impartial mediator and bridge between the two communities.

TURKEY SENDS A NOTE TO GREECE
Ankara gave a verbal note Greece's Ambassador Dimitris Nezeritis, complaining that the Greek military's presence on the Aegean islands violates the 1923 Lausanne Treaty that defined the two countries' current border. Ankara also sent a similar protest note to the US for sending warships to the Greek island of Rhodes, a senior Turkish Foreign Ministry official stated. ''They are arming the islands and tipping the balance in the Aegean'' Haldun Otman, a Foreign Ministry spokesman, said yesterday.

On the other hand, Dimitris Reppas, the Greek Government Spokesman said, ''Turkey's claims are historically unacceptable and legally unfounded. With this stance, Turkey is once again dynamiting the efforts being made to defuse tension in the area''.

[08] TURKISH PRESS REVIEW (2)

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

FOREIGN CAPITAL INFLOW CONTINUES
The Treasury permitted 243.26 million US dollars in foreign investment capital in Turkey in the month of June. The European Union (EU) countries invested 95.17 million US dollars, with an additional 116.58 million US dollars coming from the Organization for Economic Cooperation and Development (OECD) countries, excluding the EU. As of 30 June, 4,257 companies using foreign capital are currently active in Turkey.

EARTHQUAKE DAMAGE NEARS 250 TRILLION TL
Oguz Kagan Koksal, the Governor of Adana, said yesterday that damage from the earthquake which caused the death of 145 people in Adana and nearby Ceyhan has neared 250 trillion TL. Ardahan Totuk, the Deputy Governor and Chairman of the Earthquake Crisis Centre, said that the number of homes destroyed totals 1,197, with office buildings reaching 38. He added that 10, 422 homes were now not suitable for being inhabited and that 314 offices were badly damaged. Some 22,372 homes and 634 offices received minor damage. /Milliyet/

PKK SETS BUS ON FIRE
Five armed PKK terrorists blocking the road near Niksar, Tokat, set a bus on fire after forcing the passengers out. The terrorists leading the passengers to a restaurant by the highway at gunpoint, spoke Kurdish among themselves and Turkish when addressing the passengers. The terrorists, who stated that their aim was to destroy the Republic of Turkey, checked the identity cards of the passengers. Taking the deputy director of the Unye Prison with them, the terrorists fled after setting the bus on fire. /Milliyet/

CHACOPULOS: ''TURKEY PREVENTS SOLUTION OF CYPRUS ISSUE''
Akis Chacopulos, the Greek Minister of Defense, who is paying an official visit to Washington, D.C., said yesterday that the hostile attitude between Greece and Turkey won't serve to bring any positive solutions to the Cyprus issue. He also claimed that Turkey was increasing its weapons on the island, adding that Turkey closed the course towards the solution of the Cyprus issue. Chacopulos noted that it was their right to buy the Russian-made S- 300 missiles to protect themselves. ''If the missiles cause uneasiness, then the whole island should be disarmed,'' said the minister.

Regarding the Turkey-Israel relations Akis Chacopulos said that the Turkey- Israel relations weren't limited only to trade and that they were opening up dangerous perspectives. /Cumhuriyet/

The S-300 TO BE TESTED TODAY

It has been announced that Russia will test the S-300 missiles today and on Friday in a region 1200 kms distant from Moscow. According to the Greek Cyprus radio, the Greek Cypriot soldiers will also attend the testing in order to be trained. Yannakis Omiru, the Minister of Defense of the Greek Cypriot Administration, and commanders went yesterday to Moscow as the official guests of the Russian Minister of Defense to observe the tests. /Cumhuriyet-Sabah/

[09] TURKISH PRESS REVIEW (3)

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

RUSSIAN REACTION TO CAUCASUS PEACE FORCE
The Russian Foreign Ministry has reacted against Turkey's suggestion to establish a special peace force in the Caucasus region under the umbrella of NATO. Vladimir Rahmanin, the Russian Foreign Ministry spokesman, said yesterday that a peace force to be established within the framework of the NATO Partnership Plan for Peace, as suggested by Turkey and announced by General Cevik Bir, the Deputy Chief of General Staff, would also be supported by naval forces in the Black Sea. /Cumhuriyet/

COMMENT ON CYPRUS ISSUE
In a statement to Hurriyet newspaper yesterday, Hristos Stilyanides, the Spokesman of the Greek Cypriot administration, claims that Turkey won't attack the Russian-made S-300 missiles because Turkey doesn't want to undermine relations with Europe. He also added that should a war break out on the island because of the missiles planned to be deployed by the Greek Cypriot administration, then the entire Balkan region would be involved in it. Criticizing Turkey's attitude in the treatment of the Cyprus issue, the spokesman said that they wanted to remove the tension in relations with the Turkish Republic of Northern Cyprus. /Hurriyet/

KARADAYI TO VISIT CYPRUS
Intending to retaliate for the latest events in the Greek Cypriot administration, including the Greek President Kostis Stefanopulos's visit and the landing of Greek warplanes at a base there, General Ismail Hakki Karadayi, the Chief of General Staff, will arrive at the Turkish Republic of Northern Cyprus (TRNC) where he will announce the message that the Turkish Army will never allow any threat to the security and lives of the TRNC people. /Hurriyet/

INTERNATIONAL RATING FIRMS EVALUATE TURKISH ECONOMY
Fitch IBCA, an international rating firm has confirmed Turkey's long-term foreign exhange borrowing grade as "B+". The firm noted that during the last 18 months the Turkish economy had seen developments and the growth rate had reached 8 percent. However, it also stressed that political problems in the country had blocked further improvement. The firm also commented that the Turkish economy hadn't been damaged by the Asian crisis because it actually created a positive ''shock'' effect on the Turkish economy.

Representatives from another international rating firm, Standard and Poor's (S and P) came to Turkey yesterday. They will have contacts in Ankara in order to learn about the latest situation in the Turkish economy. The S and P officials will return to New York next week. Their evaluation report is due to be released in September. /Hurriyet/

ARRANGEMENTS TO PRESERVE HISTORIC REMAINS AT MOUNT NEMRUT
Tekin Aybas, the Undersecretary of the Ministry of Culture, said yesterday that they had agreed with the French officials to cooperate in preserving the historic remains at the top of Nemrut Mountain. Noting that the site is one of Turkey's cultural heritages that must be included within UNESCO arrangements for preserving historical remains, Aybas said that remains at Mount Nemrut, especially the frescoes, could be lost forever unless immediate measures were taken. /Hurriyet/

ITO PUBLISHES COUNTRY PROFILE ON POLAND
The Istanbul Chamber of Commerce (ITO) has published a report on Poland for Turks who wish to do business with the fast growing eastern European country, the Chamber said yesterday. The 128-page report gives information about Poland's economy, Turkish-Polish trade ties, regulations dealing with foreign investments and import duties on Turkish products.

[10] AKSAN, GENERAL DIRECTOR OF SECURITY IN ELAZIG PROVINCE: ''36 SEPARATIST TERRORISTS WERE CAPTURED IN FIRST HALF OF THE YEAR''

Aksan told the A.A correspondent that they were launching operations to provide for the continuity of peace and public order and security. ''a total of 36 separatist terrorists and 39 people, who are members of illegal organizations, were captured in the first half of 1998 during our operations. We arrested 35 of them.''

''In the same period, a total of 336 traffic accidents occurred and 19 people died and 243 people were injured in those accidents,'' he added.

[11] S AND P OFFICIALS IN TURKEY

The S and P officials got information about the latest situation in the macroeconomic realizations during their meeting with the Treasury delegation led by Cuneyt Sel, the Acting Undersecretary of the Treasury.

The officials from the General Directorates of State Economic Enterprises, Public Financing, Banking and Foreign Exchange also attended the meeting at the Treasury.

The S and P officials, who will meet the same day with the representatives of the State Planning Organization and Privatization Administration Board, are expected to be received by Gunes Taner, the Minister of State Responsible for the Economy.

The S and P Officials will meet on Thursday with the representatives of the Central Bank and the Ministry of Finance. The S and P officials will proceed to Istanbul on Friday and meet with the representatives of the private sector.

The S and P delegation will leave Turkey on Saturday.

[12] MERRILL LYNCH, ONE OF THE CONSULTING FIRMS OF TURKISH TELECOM EVALUATES TURKEY: ''INFLATION IS IN A DECREASE TREND IN TURKEY AND FOR THE FIRST TIME THE INFLATIONARY EXPECTATIONS STARTED TO DISAPPEAR''

Merrill Lynch noted that the curtailment of inflationary expectations will create a favourable basis for the further decrease in inflation.

Noting that the ''close staff monitoring'' agreement which was signed between Turkey and the IMF will contribute to the macroeconomic aspect of Turkey, the firm added that the privatization of the Turkish Telecom will create large changes for the market.

The tax reform, which is still being discussed at the Parliament can increase the budget income by decreasing the budget deficit, added Merrill Lynch.

''We guess that if privatization and the tax reform are realized, the interest rates will further recede, the budget deficit will get narrower and inflation will continue to decrease,'' the firm said. Stressing that the Istanbul Stock Exchange (IMKB) has a great potential and the privatization process will further increase the attraction of the IMKB.

Merrill Lynch added that it will be more logical for Turkey to focus on external borrowing rather than internal borrowing.

[13] REPORT OF STATE PLANNING ORGANIZATION

Exports to the non-OECD (Organization for Economic Cooperation and Development) member Asian countries decreased 40 percent, and the exports to the Commonwealth of Independent States (CIS) went down 2.6 percent despite the exports increasing in the first four months of 1998.

The rate of increase in the exports is 2.3 percent in the first four months of this year, and the rate of increase of the imports is 5.4 percent in the same period.

The foreign trade deficit increased 9.5 percent to 6.5 billion US dollars in the first four months of this year compared with the same period last year.

According to the results of the monthly poll of the manufacturing industry trends the capacity utilization rate that was 79.3 percent in the first five months of the last year, is 77.7 percent in the January-May 1998 period.

The term of the domestic borrowing was 429 days in January-June period last year, but the number is 237 days in the same period this year. The rate of interest for the debenture bonds for domestic borrowing increased from 97.4 percent to 106.2 percent.

The consolidated budget deficit was 1.4 quadrillion Turkish Liras in the first five months of 1998.

The report pointed out that the Turkish Lira lost 4.7 percent in value in 1997.

[14] INCREASE IN ELECTRIC PRODUCTION - PRODUCTION INCREASED BY 10.01 PERCENT IN FIRST THREE MONTHS OF THIS YEAR COMPARED WITH THE SAME PERIOD LAST YEAR

The State Institute of Statistics said that the production of electric energy increased by 10.01 percent in the first three months of the year and it increased by 3.10 percent when compared to the last three months of 1997.

The TEAS (Turkish Electricty Production and Distribution Inc.) produced 72.1 percent of electric energy in the first three months of 1997 and and 72.05 percent of it in the first three months of 1998.

The State Institute of Statistics said that 49.46 percent of electric energy was used in industry, 21.4 percent of it was consumed by houses in the first three months of 1997, while 47.89 percent of it was used in industry and 22 percent of it was consumed by houses covering the same period in 1998.

[15] BELARUS WITHDRAWS NOTE YESTERDAY THAT SHE GAVE TO THE EMBASSIES INCLUDING TURKISH EMBASSY

Officials requested in the note to solve all the problems concerning the Turkish Embassy residence with mutual negotiations. The note pointed out that the region where the Turkish Embassy residence is located, is in the borders of the Belarus Presidential residence, and the problems were caused by the ''repair works'' in the region.

The note that was given yesterday, requested the Turkish Embassy to be evacuated by midday on Wednesday, but officials from the Protocol Department of the Foreign Ministry called all the embassies in order to request them not to take into consideration the ultimatom part of the note that gives certain evacuation period.

[16] THE YOUNG AMERICAN POLITICIANS AT GAP

The US delegation, which includes one spokesman of the White House, visited Sahabettin Harput, the Governor of Sanlıurfa Province. Noting that Turkey cooperates with many countries in order to benefit from the economic potential of the Southeastern Anatolia Project, which is worth 32 billion US dollars, the governor requested the US private sector to invest in the GAP.

The delegation met with the nongovernmental organizations, foreign ministry officials in Ankara and the members of the delegation got information about the economic, social and cultural status of Turkey.

The US delegation of young politicians will make inquiries at the Ataturk Dam and irrigation areas and then proceed to the southeastern province of Adıyaman and visit the Mount Nemrut in Kahta County of Adıyaman Province.

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