Anadolu Agency: News in English, 99-06-17

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AA Daily

17 June 1999 Thursday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] TWO MORE ARTICLES OF DRAFT LAW ON BANKS ACCEPTED

[03] IMKB AND KAZAKH STOCK EXCHANGE SIGN A MEMORANDUM

[04] PRESIDENT DEMIREL DEPARTS FOR MOLDOVA - DEMIREL: ''WE WILL HOLD MEETINGS TO IMPROVE THE PRESENT FRIENDLY RELATIONS AND COOPERATION WITH MOLDOVA''

[05] PREMIER ECEVIT : ''WE'LL DO OUR BEST TO PROTECT OUR CIVIL SERVANTS AGAINST INFLATION'' - ''INTEREST RATE IS SICKNESS OF TURKISH ECONOMY''

[06] PREMIER ECEVIT : - ''THERE IS PEACE AND FREEDOM ON CYPRUS''

[07] PREMIER ECEVIT : ''WE HAVE TO TAKE STEPS IN DEMOCRATIZATION BEFORE I SHOW UP IN FRONT OF THE WORLD''

[08] KDP-PUK MEETING IN WASHINGTON D.C. - U.S. AND NORTHERN IRAQI GROUPS ASSURE GUARANTEE TO TURKEY

[09] U.S. REWARDS TURKISH BUSINESMAN WITH PRIZE OF ''YEAR'S EXPORTER''

[10] NATO'S AIR OPERATION AGAINST YUGOSLAVIA - TURKISH F-16 WAR PLANES ACCUMULATE A TOTAL OF 2,189 FLIGHT HOURS

[11] PHOTOGRAPHS OF FAMOUS JAZZ SINGERS TAKEN BY PINARCI, A TURKISH PHOTOGRAPHER, IN A LIBRARY IN CHICAGO

[12] KRIKAROV, A RUSSIAN POP SINGER, IN SOUTHERN ANTALYA PROVINCE

[13] IMF'S PROPOSAL FOR SOLUTION OF HIGH INTEREST RATES

[14] DSP PARLIAMENTARY GROUP - PREMIER ECEVIT: ''A SOLUTION WAS NOT FOUND FOR KOSOVO, THE PROBLEM GOT TANGLED UP'' - ''I WANT TO ADDRESS THE ONES WHO ATTEMPT TO INTERVENE IN THE CYPRUS ISSUE BY SAYING THE WORDS OF AN ANATOLIAN HELLENIC PHILOSOPHER; DON'T STAND BETWEEN ME AND THE SUN'' - FM CEM: ''THE ISSUE IS DEVELOPING WITHIN THE SCOPE OF THE NATO'S MILITARY PLANNING. THE ALLEGATIONS ARE TOTALLY SPECULATION''

[15] PRESIDENT DEMIREL IN MOLDOVA - DEMIREL: ''WE WANT TO GIVE SUPPORT IN EVERY FIELD TO ENABLE MOLDOVA TO FURTHER STRENGTHEN HERSELF IN EVERY FIELD AND REACH THE PROSPERITY''

[16] PRIME MINISTER ADDRESSES GREEK TV CHANNEL - ECEVIT: ''GREECE'S SUPPORT TO TERRORISM IS THE BIGGEST OBSTACLE IN FRONT OF SETTING UP GOOD RELATIONS'' - ''KURDS ARE THE INDISPENSIBLE PART OF TURKEY'' - ''THE PROBLEMS IN THE AEGEAN ARE THE BASIC PROBLEM OF THE TURKISH-GREEK RELATIONS''

[17] FOREIGN DEBT PAYMENTS - 4.8 BILLION U.S. DOLLARS PAID IN FOREIGN DEBT SINCE JANUARY 1, 1999

[18] FOREIGN EXCHANGE RESERVES OF CENTRAL BANK INCREASE BY 60 MILLION U.S. DOLLARS

[19] CONTACTS OF IMF DELEGATION - COTTARELLI, IMF'S TURKEY DESK CHIEF: ''THE KEY FOR IMPLEMENTATION OF ANTI-INFLATIONIST POLICIES IS STRUCTURAL REFORMS''

[20] VIOLENCE IN WESTERN THRACE - GREEK SOLDIERS ATTACK ON TURKISH VILLAGERS

[21] CONTACTS OF IMF DELEGATION - COTTARELLI, IMF'S TURKEY DESK CHIEF: - ''THERE HAS STILL NOT BEEN A CONCRETE MEETING ON THE CONDITIONS OF ANTI- INFLATIONIST PROGRAMME''

[22] CONTACTS OF IMF DELEGATION - COTTARELLI, IMF'S TURKEY DESK CHIEF: - ''IT IS EARLY TO DISCUSS THE FINANCIAL SUPPORT TO TURKEY AND ITS AMOUNT''

[23] PRESIDENT DEMIREL IN MOLDOVA - DEMIREL: ''BOTH TURKEY AND MOLDOVA HAVE THE POLITICAL WILL AND DESIRE TO FURTHER IMPROVE THEIR BILATERAL RELATIONS ON THE EVE OF THE 21ST CENTURY''

[24] JOURNALISTS FROM EU COUNTRIES DUE IN GAP REGION

[25] PRESIDENT DEMIREL IN MOLDOVA - DEMIREL ATTENDS OPENING CEREMONY OF FIRST STAGE OF SPRING WATER PROJECT IN GAGAUZ LAND

[26] TURKISH BUSINESSMEN IN SHANGHAI

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

REVIVAL IN AUTOMATIVE SECTOR
The production and sellings in the automative sector of Turkey which faced difficult days due to the stagnation in world automative market and stagnation in domestic demand, increased in TOFAS and Oyak Renault factories, two Turkish giant automative companies. The Oyak Renault factory produced a total of 21,222 automobiles in January-May period while it produced 6,904 automobiles in May. TOFAS company works overtime since May and starts to produce 302 to 340 automobiles a day.

MILLIYET (LIBERAL)

ECEVIT:I DON'T HAVE HOPE ABOUT IMF
Prime Minister Bulent Ecevit said that he is not hopeful about the contacts of the IMF delegation in Ankara. Noting that Turkey and the IMF have been holding contacts for two years but a result couldn't be reached yet, Ecevit said that ''the Fund which provides billion dollars of credit to Russia and Brazil, acted unjustly to Turkey.''

SABAH (LIBERAL)

OCALAN: I WAS KNOWN AS A SNAKE HUNTER
Abdullah Ocalan, the head of the terrorist organization PKK who is on trial on Imralı island, said in his preliminary defense submitted to the court that ''I left my village crying. Peasants knew me both as a good snake hunter and very gentle at the same time.''

CUMHURIYET (LEFT)

FIRST THREE ARTICLES OF LAW ON BANKS ADOPTED
The first three articles of the Law on Banks were adopted in the Parliamentary General Assembly. Hikmet Ulugbay, the State Minister Responsible for Economy, said that they want to strengthen the infrastructure of the banking system and to set up a stable mechanism by this law. The opposition parties said that they think that the new arrangement on banks was necessary but that this draft law was not sufficient.

RADIKAL (LEFT)

COMMISSIONS SET UP
The commissions at the parliament were set up. The commissions started to wait for the drafts which will be submitted to them by the government. The chairmen, acting chairman, secretaries and the spokesmen of the commissions were chosen among the deputies of the coalition parties. The State Economic Enterprise (SEE) Commission, Justice Commission, National Defense Commission, Interior Affairs Commission, Foreign Affairs Commission, National Education Commission, Industry and Technology Commission, Public Works and Settlement Commission, Agriculture and Forestry Commission, Health and Social Affairs Commission, Environment Commission and Petition Commission were formed.

TÜRKİYE (RIGHT)

''AEGEAN PROBLEM WAITS FOR SOLUTION''
General Necati Ozgen, the Commander of War Academies told in a symposium that ''we have to develop strategies based on norms of international law regarding the problems with Greece in Aegean.''

''The problems in Aegean waits to be solved although their solution can't be realized unilaterally,'' he added.

ZAMAN (CONSERVATIVE)

KITCHEN EXPENSE: 110 MILLION
Hak-Is, a labour union said that the minimum kitchen expense of a family composed of four people reached 110 million for one month. The expenditure on kitchen increased by 66.5 percent in May this year compared to the same month last year.

[02] TWO MORE ARTICLES OF DRAFT LAW ON BANKS ACCEPTED

''Banking Regulation and Supervision Council'' will be formed under Article 3 of the law to prevent all kinds of transactions and applications which endanger the regular and safe working of the banks and the rights of the owners of savings, which can cause important damage to economy and to provide the effective working of the credit system.

The Council will be centered in Ankara and if necessary, it may establish organizations in places where it wishes.

The Council will be inspected by a commission formed by a member of Audit Court, Prime Ministry inspector and finance inspectors. The Chairman of the Council will ask for permission from the concerned ministry before the commission launches an investigation about the members and deputy chairman of the council.

The Banking Regulation and Inspection Council will be composed of seven members including one chairman and one deputy chairman. The members will be graduates of law, economy, finance, banking, management, or public administration.

The members will be appointed by the Council of Ministers from the candidates of the Undersecretariat of Treasury, the Ministry of Finance, Central Bank, Union of Turkey's Bank, State Planning Organization and Capital Market Council. The Council of Ministers will appoint one of the members as the Chairman.

The members of the Council will work for six years, and when their term in office finishes, they can be re-elected. Unless their term in office does not finish, the members of the Council can not be dismissed from their post. They won't deal with trade, they won't undertake any official or private mission, they won't address to people in conferences or courses, and they won't have any shares in any partnership.

Within three years following their end of mission as a member of the Council, they won't work as a high ranking official in institutions which are mentioned by the concerned law.

Before they start working, they will take an oath in front of the Supreme Court of Appeals First Chairmanship Council promising to act honestly during their term in office and not to violate the provisions of law.

The Council can request any document or information from the ministries, concerned private or public institutions, even if they are confidential.

The discussion on the draft law will continue in the parliament session on Thursday.

[03] IMKB AND KAZAKH STOCK EXCHANGE SIGN A MEMORANDUM

Osman Birsen, Chairman of IMKB, went firstly to Kyrgyzistan and then to Kazakhstan within the framework of his visits to the Central Asia to hold meetings with the stock exchanges of the region countries.

Birsen, who is also the Chairman of the Eurosian Stock Exchange Federation, of which Kazakhstan is also a member, held contacts with the officials of the KKB during his two-day visit to Almati.

Informing the journalists about his visit, Birsen said that Central Asia needs the inflow of capital.

Drawing the attention that the IMKB has become one of the best stock exchanges of Europe in 14 years, Birsen emphasized that the IMKB experts can transfer their experiences to the developing countries, including Kazakhstan.

Demir Karasayev, the Chairman of Kazakhstan Stock Exchange, said that the future of bilateral relations is bright and that the memorandum signed with the IMKB will increase the investments in Kazakhstan.

The IMKB and Takasbank signed a memorandum of understanding with Kazakhstan Stock Exchange. The memorandum will improve the cooperation in cross- listing of the bonds of the companies which are the members of the two stock exchanges and will provide the bond owners' opening a back to back account.

Birsen and his delegation will go to Uzbekistan on Thursday.

[04] PRESIDENT DEMIREL DEPARTS FOR MOLDOVA - DEMIREL: ''WE WILL HOLD MEETINGS TO IMPROVE THE PRESENT FRIENDLY RELATIONS AND COOPERATION WITH MOLDOVA''

Demirel is accompanied by Abdulhaluk Cay, State Minister; Metin Bostancioglu, National Education Minister; and high-ranking officials.

Addressing a statement at the Esenboga Airport prior to his departure; Demirel said that they will hold meetings to improve the present friendly relations and cooperation with Moldova.

Demirel noted that he goes to Moldova for one-day official visit to open the first part of the project which will bring drinking water to the southern states of Moldova Republic.

Demirel stated that he will hold bilateral meetings with Lucinschi, his Moldovan Counterpart, to improve the friendly relations and cooperation which were established in multi-lateral dimension.

Demirel said, ''in my official visit to Moldova last summer, President Lucinschi and I laid the foundation of the drinking water project which will be carried out by a Turkish company with the credit that was given by Turkish Eximbank in Gagauz Place. We aim at ending one of the biggest problems of the Gagauz nation by bringing drinking water to Komrat, Cadir- Lunga, and Vulkanesti cities of the Gagauz Place.''

''I am very pleased to open a project which was completed in such a short time. Thus, Turkey will fulfil one of her important commitments with success,'' Demirel added.

Stressing that they will open an Anatolian High School which will start education with the contributions of National Education Ministry in Kongaz village of Gagauz Place during his visit, Demirel emphasized that two protocols concerning the education will be signed with Moldova.

Demirel is expected to return to Turkey this evening.

[05] PREMIER ECEVIT : ''WE'LL DO OUR BEST TO PROTECT OUR CIVIL SERVANTS AGAINST INFLATION'' - ''INTEREST RATE IS SICKNESS OF TURKISH ECONOMY''

Premier Ecevit told a private television channel that the economy is being monitored and the increase in the wages of civil servants has not been discussed.

''We work to determine the allocation of sources, we didn't talk about the increase in civil servants' wages,'' said Ecevit, adding the possibilities of the state are limited. Noting that the tax reform and the world economic crisis took place at the same time, Ecevit stated that the expected increase in the state's incomes didn't happen due to that.

Stressing that the parliament has to discuss the draft laws on budget, banks, and social security system before the parliament recesses. ''The bank order is one of the important reasons of the difficulty in the economy. Banks can't allocate sufficient sources to production. There is a deficiency in the banking system, thus the new law on banks has to be adopted,'' he said.

Stressing that interest rate is the sickness of the Turkish economy, Ecevit said ''when interest rates are high, there is no investment. Banks also benefit from high interest and earn a lot of money. The bank system is responsible from that. If we can get credit, the problem of interest will be solved. We were successful to decrease the inflation, but the gap between the inflation rate and high inflation rate is a problem. We know that the civil servants are in difficulty, but we don't have huge amount of money. If we issue money, the inflation rate will also increase. We'll suffer for a short period of time and we need patience.''

Noting that several changes have to be made in the tax law without changing its core, Ecevit said that the social security system is the heaviest burden of the state and they are determined to carry out a serious reform in this field.

Ecevit added that the law on repentance has to be adopted by the parliament to rescue the terrorists on mountains and young people who were trapped.

Stressing that the budget deficit will also be an important problem this year, Premier Ecevit said that 30 billion TL instalment of internal and foreign debt was paid in the first half of the year.

''The situation will be relatively improved in the second half of the year. IMF says that Turkey is in good track, later it says that Turkey has to solve the problems first and then IMF can help. If we solve the problems, there won't be any need for assistance,'' Ecevit said.

[06] PREMIER ECEVIT : - ''THERE IS PEACE AND FREEDOM ON CYPRUS''

''Finally the possibility of installation of a peace in Kosovo has appeared after a painful war, ethnic cleansing, and genocide which were the reason of the war. But I am not so sure because there is a complicated situation. I think the problem has not been solved yet. Regions belonging to five separate states are being formed in Kosovo. If Russia also enters, in fact she has already entered, the number of regions will increase to six. One foreign state will be responsible from one region. In such a state in which many states are involved, it is difficult to have peace. There is complete lack of authority,'' Ecevit said.

Referring to the Cyprus question, Premier Ecevit said that ''in fact, there is no problem. There are two states and there is peace and freedom on Cyprus. The tension has been prevented by the Turkish peace operation. There is no clash and conflict on Cyprus. We don't have the intention to permit others to be involved in that question.''

Responding to questions about the dismissals in the police organization, Bulent Ecevit said that ''it has been found out that the telephone conversations of institutions and officials who shouldn't be listened, were tapped. Dismissals took place after that. The files concerning Fetullah Gulen were brought to the agenda and if there is a movement which does not reconcile with the regime, the necessary things will be done. However, the problem does not stem from that. Police and civil servants should not be effected by the changes in government.''

Responding to a question, Premier Ecevit said that he has not been informed about the complaints of the Nationalist Movement Party (MHP) regarding holding entrance exam of civil servants by OYSM, an institution which organizes exams for entrance to the universities.

Noting that all kinds of discrimination has to prevented in public administration, Ecevit said that the changes in the governments should not influence negatively the public administration.

[07] PREMIER ECEVIT : ''WE HAVE TO TAKE STEPS IN DEMOCRATIZATION BEFORE I SHOW UP IN FRONT OF THE WORLD''

Responding to a question about the situation of the terrorist organization after the capture of the terrorist organization, Ecevit stated that when Ocalan was in Rome, he criticized seriously the administrators of the terrorist organization.

''The statements of Ocalan at the court might have further increased the disputes within the organization. The activities of the terrorist organization may decrease, or different groups may compete to carry out different activities. This is not clear yet,'' he added.

Some members of the terrorist organization are still in Syria, and many terrorists went from Northern Iraq to Iranian border regions which are close to Turkey, said Ecevit and added that ''Iran opened its territories in the border region.''

Stressing that contacts with Iran are underway concerning this development, Premier Ecevit said that Ocalan, the head of terrorist organization, confirmed the claims saying that Greece extended support to the terrorist organization during his trial, but Greek officials insist on not accepting this fact.

''As long as Greece continues to extend support to the terrorist organization, the bilateral relations won't improve with this country,'' said Ecevit, adding ''the source of the PKK terrorism is in fact the West and there are camps of the terrorist organization in certain Western countries.''

Stressing that Turkey needs a stable government and when the coalition government was being formed, a compromise was easily reached, Ecevit said that ''my being invited to the U.S. shows the importance of Turkey rather than mine. Turkey is an important country for the world and for the U.S.''

Pointing out that he had earlier expressed his view that the term in office of President Suleyman Demirel can be extended for another term, Ecevit said that there is no connection between this issue and the establishment of the 57th government.

Responding to another question about the relations with Turkey and Uzbekistan, Ecevit said that ''Turkey has to refrain from acting in a way which ends up in escalation of concerns in Turkish Republics.''

[08] KDP-PUK MEETING IN WASHINGTON D.C. - U.S. AND NORTHERN IRAQI GROUPS ASSURE GUARANTEE TO TURKEY

PUK, which is accused by KDP of supporting the terrorist organization, assured gurantee saying that such a support does not exist. The two groups and the U.S. officials reiterated the assurances considering the territorial integrity of Iraq, which is one of the sensitive issues for Turkey, and they refrained from mentioning a possible federal structure.

It has been reported that progress was recorded in the contacts to overcome the divergence of opinion about the formation of temporary local administrations between the two groups.

After the meetings which will continue today and tomorrow, the PUK and KDP are expected to issue a statement saying that they will overcome their bilateral problems by the suggestion of the U.S. However, it is not definite for now whether or not an agreement will be signed.

Elisabeth Jones, the Assistant Secretary of the U.S. Department of State who is responsible for near eastern affairs presides the meetings in which Sami Abdurrahman, the KDP politburo member and Kemal Fuad, the PUK politburo member preside the two delegations.

It has been reported that Turkish and British diplomats participated in the opening session of the meeting as observers.

PUK and KDP officials are also expected to come together with the representatives of the U.S. Congress during their stay in Washington D.C.

Before the meetings, KDP harsly criticized the PUK saying that the terrorist organization launched attacks on them from the region controlled by PUK. KDP had also pointed out that if this continued, they wouldn't implement the provisions of the Washington Agreement which aims making peace between the two sides.

Observers say that the developments that will take place in the region in the coming weeks will show whether or not the dispute between the two sides has been solved.

[09] U.S. REWARDS TURKISH BUSINESMAN WITH PRIZE OF ''YEAR'S EXPORTER''

Amexco, which serves many American firms in the field of environmental issues and which produces new technologies, sells the technologies it produces to Peru, Egypt, Brasil, and Argantine.

Kurtulus, who was rewarded both by Chicago Commerce Chamber and Small Business Places Administration, said that he had launched efforts to bring technology to Turkey, but he couldn't get a response to that.

Kurtulus stressed that his Turkish-American firm took measures against environmental pollution by the technology and industrial equipment it produces.

[10] NATO'S AIR OPERATION AGAINST YUGOSLAVIA - TURKISH F-16 WAR PLANES ACCUMULATE A TOTAL OF 2,189 FLIGHT HOURS

The General Staff Information Center issued a statement saying that the Turkish F-16 war planes which are deployed at the Ghedi Airbase in Italy, stayed in air for 28 hours June 16.

Meanwhile, a total of 937,705 Kosovar people were forced to leave their homes so far as a result of ethnic cleansing campaign in Kosovo. According to the latest figures, there are 17,551 refugees in Turkey; 50 thousand in Serbia; 69,400 in Montenegro; 444,200 in Albania; 243,700 thousand in Macedonia; 21,700 in Bosnia-Herzegovina, and 91,154 in other countries.

The officials said that no new refugees have entered to Turkey in the last 24 hours.

A total of 7,626 Kosovars have been sheltered at Gaziosmanpasa Refugee Camp in Kirklareli while a total of 3,200 Kosovars stay in the camps which were set up by Turkey in Macedonia and Albania.

[11] PHOTOGRAPHS OF FAMOUS JAZZ SINGERS TAKEN BY PINARCI, A TURKISH PHOTOGRAPHER, IN A LIBRARY IN CHICAGO

The exhibition draws the attention of many people while Pinarci is defined as ''a sui generis artist in taking the jazz photographs of Chicago.''

Evanston Arts Council bought the photographs of Pinarci, which were the winner of the photograph competition last year, and started to exhibit them.

Pinarci sometimes exhibit the photographs he took in Turkey in the U.S.

Pinarci said that he will set up a photograph foundation in Turkey and will help the young Turkish photographers; adding that he will donate the photography instruments to the foundation.

[12] KRIKAROV, A RUSSIAN POP SINGER, IN SOUTHERN ANTALYA PROVINCE

Krikarov, which is one of the most loved singers of Russia, sang Turkish songs in his last album titled ''Oy mama sikidim.''

Krikarov translated ''Simarik'' and ''Oynama Sikidim'' songs of Sezen Aksu which were sang by Tarkan, a famous Turkish singer, into Russian language and sang five more Turkish songs in his album.

Kirikarov said that he wants to be a bridge between Russia and Turkey by his songs.

The songs of Kirkarov, who is known as the ''Tarkan of Russia'' in Turkey, are played in nearly all of the Turkish discos.

Responding the questions of the journalists in Antalya, Krikarov said that he loves Turkey very much.

Emphasizing that he says in his concerts that he visited Turkey and that he advised his fans that they should visit Turkey, Krikarov noted that he acts like an envoy.

Stressing that he met with Tarkan in a award ceremony in Monaco, Krikarov stated that he met with Sezen Aksu in Paris in January, but could only have a few moments of meeting.

Noting that he became a fan of Aksu on the words of Mustafa Sandal, a Turkish singer who shot a video in Russia, Krikarov emphasized that Aksu is a living legend of Turkey and that he becomes happy when he sings the songs of Aksu.

Krikarov pointed out that he will listen to the concerts of Aksu in Antalya and will hold contacts with her for his new album; adding that he wants to translate many new Turkish songs and to sing them in his new album.

Aksu will give concerts on June 18 and 19, 1999.

[13] IMF'S PROPOSAL FOR SOLUTION OF HIGH INTEREST RATES

The IMF delegation, which arrived in Turkey on June 15, focuses on high real interest issue which was also discussed at meetings in Washington D.C.

Noting that there is not any problem in Turkey's borrowing capacity, the IMF officials said the real interest was increased although the inflation was decreased, and this increased the domestic borrowing burden which will also affect in the year 2000.

Pointing out that the debenture bonds indexed to CPI will relieve the burden on the Treasury as it also relieves the interest burden in a period in which the inflation is decreasing, the IMF officials stressed that the debenture bonds indexed to CPI protect the investors against the inflation risk.

Emphasizing that those debenture bonds should gain a place in the market and absolutely be spreaded in Turkey, the IMF officials said they can give technical assistance following their report.

Treasury sold 2 trillion 881 billion Turkish Liras (TL) 14-month debenture bonds indexed to CPI in the tender on June 8.

At that tender, the minimum interest rate became 23.08 percent and the maximum interest rate became 25.14 percent.

[14] DSP PARLIAMENTARY GROUP - PREMIER ECEVIT: ''A SOLUTION WAS NOT FOUND FOR KOSOVO, THE PROBLEM GOT TANGLED UP'' - ''I WANT TO ADDRESS THE ONES WHO ATTEMPT TO INTERVENE IN THE CYPRUS ISSUE BY SAYING THE WORDS OF AN ANATOLIAN HELLENIC PHILOSOPHER; DON'T STAND BETWEEN ME AND THE SUN'' - FM CEM: ''THE ISSUE IS DEVELOPING WITHIN THE SCOPE OF THE NATO'S MILITARY PLANNING. THE ALLEGATIONS ARE TOTALLY SPECULATION''

Addressing the opening remarks of the DSP Parliamentary Group meeting, Ecevit said it can be thought that a theoretical peace was brought in Kosovo, but it is impossible to make such a definite statement.

''A solution was not found for Kosovo, the problem got tangled up. This small country can be divided into five or six regions and other countries can be responsible for each region,'' Ecevit stated.

Noting that the European Union (EU) will be responsible for the reconstruction of Kosovo, the Organization for Security and Cooperation in Europe (OSCE) will be responsible for the formation of the government and political structure, the High Commissionaire for Refugees will be responsible for humanitarian issues and the U.N. will be responsible for the interim administration in accordance with the U.N.'s plan, Ecevit said, ''this is a very complex order in which there are so many intervenors. We will see in next weeks how long and how this order can work.''

''Turkey will continue to show the most productive attitude. There is not an interlocutor of the Kosovar people which is supported by the majority of the Kosovar people yet. This is another problem. This is one of the factors constituting an obstacle in front of a solution for the Kosovo issue,'' he added.

Recalling that Turkey pioneered in meeting of humanitarian requirements without making a discrimination among the Kosovar people, Ecevit said the U.S. President Bill Clinton stressed with gratitude Turkey's contribution.

Ecevit emphasized that the international community should rapidly contribute to the initiatives for the refugees' return to their homelands, and that Turkey will fulfil her responsibilities concerning the issue.

Noting that some circles are trying to connect Turkey's contributions to numerical data like military units, Ecevit said, ''however, we contribute to peace more than war. The military existence in Bosnia-Herzegovina was not very big but it became an example for the whole world concerning its services. The unit in Bosnia-Herzegovina not only secures peace but also meets every kind of requirements of the people in the region. The same humanist approach will be shown also in Kosovo.''

Ecevit stressed that the incidents in Bosnia-Herzegovina and Kosovo are the ''shame of humanity''.

Emphasizing that there has been an uninterrupted peace on Cyprus since the Peace Operation, Ecevit said that the ethnic cleansing and the dispute were definitely prevented with the foundation of an independent state.

Noting that there is not an authority gap on Cyprus, Ecevit said, ''there is not a problem called Cyprus issue now. Cyprus also does not constitute a problem for the world. We do never have an intention to let other countries to intervene in the Cyprus issue. I want to address the ones who attempt to intervene in the Cyprus issue and change it into a problem by saying the words attributed to an Anatolian Hellenic philosopher; (do not stand between me and the sun).''

Regarding the reporters' allegations that the Turkish units became late in leaving for Kosovo, Foreign Minister Ismail Cem said the issue is developing within the scope of the NATO's military planning, defining the allegations as ''speculation''.

[15] PRESIDENT DEMIREL IN MOLDOVA - DEMIREL: ''WE WANT TO GIVE SUPPORT IN EVERY FIELD TO ENABLE MOLDOVA TO FURTHER STRENGTHEN HERSELF IN EVERY FIELD AND REACH THE PROSPERITY''

Demirel was welcomed by Moldovan President Petru Lucinschi at the Kishinev Airport.

Speaking to reporters at the airport, President Demirel said Turkey is the first country that recognized Moldova's sovereignty, stressing that the relations between the two countries have been improved very well in last 7- 8 years.

''We want to further improve these relations based on mutual respect, cooperation and interest. I have arrived here upon the invitation of Mr. President to pay a one-day working visit. This shows the importance we attach to the cooperation between Turkey and Moldova. We want to give support in every field to enable Moldova to further strengthen herself in every field and reach prosperity. My distinguished colleague Mr. Lucinschi and I will exchange opinions about the regional and international issues in addition to our bilateral relations. We want to realize more cooperation with Molodova.''

Moldovan President Lucinschi said the relations between Turkey and Moldova reached considerable levels, expressing his pleasure over the support extended to Moldova by President Demirel.

Lucinschi stated that the relations between the two countries will further improve.

Later, the interdelegationary meetings co-presided by Demirel and Lucinschi started.

[16] PRIME MINISTER ADDRESSES GREEK TV CHANNEL - ECEVIT: ''GREECE'S SUPPORT TO TERRORISM IS THE BIGGEST OBSTACLE IN FRONT OF SETTING UP GOOD RELATIONS'' - ''KURDS ARE THE INDISPENSIBLE PART OF TURKEY'' - ''THE PROBLEMS IN THE AEGEAN ARE THE BASIC PROBLEM OF THE TURKISH-GREEK RELATIONS''

Addressing a programme titled ''Black Box'' broadcasted by the Greek private MEGA TV channel, Ecevit emphasized the fact that military training had been given to PKK terrorists at several camps in Greece.

When the Greek journalists said that the U.S. said no evidence could be found concerning this issue, Ecevit said the U.S. confirmed the existence of those camps during his contacts with some U.S. officials.

Stressing that the criticisms about the trial of the head of the terrorist organization were totally unjust, Ecevit said that the justice in Turkey is independent and that the trial is being held in front of the world.

When asked whether the head of terrorist organization will be sentenced to capital punishment, Ecevit said the process of trial continues.

Noting that Kurds are indispensible part of Turkey, Ecevit said, ''Kurdish is free in Turkey. Dailies and magazines are being published in Kurdish in Turkey. It is difficult to separate Turks from Kurds.''

Responding to the questions about the grey zones in the Aegean, Prime Minister Ecevit said the problems in the Aegean are the main problem of the Turkish-Greek relations.

''If the map is checked, it can easily be understood that the problem is very complex. New technologies were invented after 1950s to make use of submarine riches. We believe that the two countries should discuss productively the issues concerning the Aegean. We never claimed Greek territories, but Greece claimed Turkish territories for the last century,'' Ecevit stated.

Recalling that the issue of grey areas in the Aegean Sea started with Greece's provocation by hoisting a flag on an islet, Ecevit said that the issue should be taken up by jurists and diplomats.

''The best way to take up the issue is the dialogue between Turkey and Greece as many countries did in the past concerning the sea borders issue. Maybe, we can reach a mutual satisfactory agreement if Greece accepts to make a dialogue by giving up her support to terrorism,'' Ecevit stressed.

Evaluating the Cyprus issue, Ecevit said Cyprus would have been a region which is facing the similar tragic events in Bosnia-Herzegovina and Kosovo if Turkey did not launch the Peace Operation in 1974.

''There were official plans, like the Akritas plan, foreseeing the annihilation of Turks on the island,'' Ecevit reminded.

Noting that the solution on the island can be found by accepting today's realities, Ecevit said free communication and travelling between the two sides can be realized in the course of time.

Responding to the questions of Greek journalists about the European Union (EU), Prime Minister Bulent Ecevit said Greece is one of the obstacles in front of Turkey's membership but she is not the main obstacle.

''Some EU countries use Greece to prevent Turkey's membership,'' Ecevit emphasized.

When asked how he will react to Greek Prime Minister Costas Simitis' possible visit to Ankara, Ecevit said he will be pleased with such a development, but first of all, Athens should cut its support to terrorism.

[17] FOREIGN DEBT PAYMENTS - 4.8 BILLION U.S. DOLLARS PAID IN FOREIGN DEBT SINCE JANUARY 1, 1999

The Central Bank data shows that the Treasury paid 3 billion 929.4 million U.S. dollars; the Central Bank repaid 222.3 million U.S. dollars; the Ministry of National Defense and the Defense Industry paid 353.3 million U.S. dollars, the Defense Fund paid 10.6 million U.S. dollars and the International Monetary Fund (IMF) was repaid 264.5 milion U.S. dollars in foreign debt between January 1 and June 16, 1999.

Meanwhile, a total of 1 billion 294.3 million U.S. dollars of foreign debt was repaid between June 1 and 16.

The foreign debt payment was 432 million U.S. dollars in January; 765.8 million U.S. dollars in February; 770.5 million U.S. dollars in March; 836.4 million U.S. dollars in April and 680.9 million U.S. dollars in May 1998.

[18] FOREIGN EXCHANGE RESERVES OF CENTRAL BANK INCREASE BY 60 MILLION U.S. DOLLARS

The Central Bank data shows that the foreign exchange reserves, which rose by 60 million U.S. dollars between June 4 and 11, increased to 21 billion 636 million U.S. dollars as of June 11.

The Central Bank's foreign exchange reserves were 21 billion 576 million U.S. dollars on June 4.

Meanwhile, according to the 28 May-based statistics, Turkey's total international gross reserves decreased 1 billion 251 million U.S. dollars to 32 billion 967 million U.S. dollars between May 21-28.

The international gross reserves of Turkey were 34 billion 218 million U.S. dollars on May 21.

As of May 28, Turkey's international reserves were composed of 1 billion 12 million U.S. dollars in gold reserves; 21 billion 811 million U.S. dollars in the Central Bank's foreign exchange reserves; and 10 billion 144 million U.S. dollars in the commercial banks' foreign exchange reserves.

[19] CONTACTS OF IMF DELEGATION - COTTARELLI, IMF'S TURKEY DESK CHIEF: ''THE KEY FOR IMPLEMENTATION OF ANTI-INFLATIONIST POLICIES IS STRUCTURAL REFORMS''

Speaking to reporters following his meeting at the Treasury Undersecretariat, Cottarelli said the structural reforms are the Draft Law on Banks, which is now being discussed by the parliament, Social Security Reform, Agricultural Policies Reform and Privatization, stressing that the most important structural reform is privatization.

Noting that the Turkish economy has an important place in the global economy, Cottarelli said they are interested in giving an IMF support to Turkey.

Responding to a question about financal aid, Cottarelli said he can't answer that question at this moment.

[20] VIOLENCE IN WESTERN THRACE - GREEK SOLDIERS ATTACK ON TURKISH VILLAGERS

Greek soldiers attacked on Turkish villagers in Gokcepinar village in Xanthi, and it was claimed that a Turkish couple was beaten and exposed to sexual harassment at the Xanthi Security Directorate.

Officials at the Xanthi Security Directorate confirmed the attack on Turkish villagers while they denied the claim that a Turkish couple was exposed to bad treatment.

The first incident started when three soldiers of the Fourth Army Corps 515th Infantry Unit, who had alcoholic drinks at the cafe of Gokcepinar village, quarrelled with the villagers in the same cafe.

The drunk Greek soldiers left the village but returned back some time later and they were backed by a group of soldiers who were led by a captain, and the soldiers attacked on the Turkish villagers with iron clubs.

Some of the villagers and Greek soldiers were injured while the Greek police who arrived in the village to stop the fighting, opened fire in the air.

Sources said the residents of Gokcepinar, who define the attitude of Greek soldiers as ''bullying'', are preparing themselves to complain to the Greek Defense Ministry while the commander of those soldiers apologized to the Turkish villagers on behalf of his soldiers.

The second incident took place in Gazhane district in Xanthi.

The policemen wearing civilian cloths, who were claimed to be in charge of controlling the traffic in the region, wanted to stop a Turkish young man namely Ceylan Cemiloglu, 18, who was riding a bike.

When Cemiloglu did not stop, the policemen went to the house of Cemiloglu and started to rough up his mother Zihniye Cemiloglu and his grandmother Rahime Alioglu who was in her bed due to her illness.

His father Yasar Cemiloglu, who came to the house, was also roughed up when he tried to stop the policemen, and he was taken into custody together with his wife at the Xanthi Security Directorate.

The Turkish couple was kept at the Security Directorate till next morning. Yasar Cemiloglu was beaten by the policemen during that period while the male policemen undressed his wife saying that he will search her body.

The Cemiloglu couple who was released in the morning wanted to get a medical report from the Xanthi hospital to prove the treatment, but they were not allowed to enter the hospital by the officials.

[21] CONTACTS OF IMF DELEGATION - COTTARELLI, IMF'S TURKEY DESK CHIEF: - ''THERE HAS STILL NOT BEEN A CONCRETE MEETING ON THE CONDITIONS OF ANTI- INFLATIONIST PROGRAMME''

Speaking to reporters, Cottarelli said that the primary target of their visit to Turkey was the consultation works (annual routine works) regarding Article Four, and the secondary target was to decide on whether they will give support after evaluating the programme that the Turkish government will implement.

Noting that they were impressed by the talks in Istanbul, Carlo Cottarelli said the private sector should also be supported for the success of anti- inflationist policies. Cottarelli said that the private sector is aware of the anti-inflationist policies and this is an effective situation.

[22] CONTACTS OF IMF DELEGATION - COTTARELLI, IMF'S TURKEY DESK CHIEF: - ''IT IS EARLY TO DISCUSS THE FINANCIAL SUPPORT TO TURKEY AND ITS AMOUNT''

Speaking to reporters, Cottarelli said that the financial support and its amount will be related to an agreement and this will be the topic of the meetings in coming days.

Responding to a question, Cottarelli said the Turkish officials and they will try to determine a schedule for an agreement with the Turkish government.

Noting that it is very early to discuss the conditions of an anti- inflationist programme, Cottarelli said that the model of an agreement between Turkey and the IMF has still not become clear, and that model will be determined according to the time and conditions of the economic policy that will be implemented.

Noting that the Turkish economy entered into recession last year, Cottarelli said that industrial production and use of capacity increased accrding to the figures in last three months, but they have to see the figures in next few months to make a definite evaluation.

Responding to a question, Cottarelli said they support the legalization of the Draft Law on Banks which is being discussed at the parliament.

The IMF delegation will meet the same day with the officials at the State Planning Organization to discuss the macro economic realizations and expectations.

[23] PRESIDENT DEMIREL IN MOLDOVA - DEMIREL: ''BOTH TURKEY AND MOLDOVA HAVE THE POLITICAL WILL AND DESIRE TO FURTHER IMPROVE THEIR BILATERAL RELATIONS ON THE EVE OF THE 21ST CENTURY''

Following the meetings between the Turkish and Moldovan delegations, Abdulhaluk Cay, the Minister of State, and Alexandru Muravsky, the Deputy Prime Minister of Moldova, signed a memorandum of understanding on continuation of technical and scientific cooperation between Turkey and Moldova.

Following the signing ceremony, President Suleyman Demirel said, ''the relations between our two countries are very good. There is not any problem. We want to further improve our relations in every field.''

Stating that the economic and commercial relations were increased between the two countries, Demirel said there is the legal basis which arranges those relations, and the necessary agreements were signed.

Demirel called on the Turkish entrepreneurs who contribute to the development of several countries, to extend more effort in Moldova. ''The Turkish contractors and businessmen can extend more effort in the development of Moldova and they should do this,'' he said.

Noting that some part of the construction which started last year to carry water to the cities in the ''Gagauz Land in the territorial integrity of the Independent Republic of Moldova'' was concluded, Demirel said they will open those facilities the same day.

Moldovan President Petru Lucinschi said that they will lay the foundation of the Moldovan Embassy in Ankara in his next visit to Turkey in accordance with the agreement, adding that a Turkish bank will start to give service in Kishinev through the end of the year.

[24] JOURNALISTS FROM EU COUNTRIES DUE IN GAP REGION

Officials at the Directorate General of the GAP Regional Development Administration told the A.A correspondent that the region will host a group of journalists from the EU countries between June 19-22.

Journalists will attend a conference on the ''EU and Turkey / Journalists'' organized by the Gaziantep Trade Chamber and the EU's Turkey Representation.

Within the framework of their visit to Turkey, journalists will visit the Ataturk Dam, and the Directorate General of the GAP Regional Development Administration.

Journalists will also be given a brifing about the GAP region.

[25] PRESIDENT DEMIREL IN MOLDOVA - DEMIREL ATTENDS OPENING CEREMONY OF FIRST STAGE OF SPRING WATER PROJECT IN GAGAUZ LAND

Addressing the opening ceremony, Demirel said that target of the humanity in the 21st century is to tolerate and love each other, and stressed that there are many lessons to be taken in the Balkans and in the Caucasus.

Demirel added, ''People having different languages, religious beliefs, and ethnic origins, can easily live together in peace. If we determine conditions of peace fairly, we can maintain peace. Turkey's message to whole world is this point of view. Target of humanity in the 21st century is to tolerate and to love each other. Today, we have experienced an example of it. There are many lessons to be taken in the Balkans and in the Caucasus.''

Describing the spring water project as a project providing peace, Demirel said that the project is a result of good relations between the two countries. President Demirel underlined the importance of recognition of Gagauzs' autonomy by Moldova, and fulfilment of responsibilities by Gagauzs within the territorial integrity of Moldova.

[26] TURKISH BUSINESSMEN IN SHANGHAI

Nearly 350 representatives of Chinese private and public sectors attended the seminar on the ''Joint Investment and Cooperation Opportunities with Turkey'', and bilateral talks with the Turkish businessmen.

Addressing the meetings, Hu Zhonghua, the Foreign Economic Relations and Trade Commission of the Shanghai Municipality, stressed that Turkey is located on a point connecting Europe, Asia and Africa to each other.

Hu Zhonghua called on Turkish businessmen to make investments in Shanghai.

Avni Ozcan, the Chairman of the Turkish businessmen delegation and Director General of the Economic Researches and Evaluations Department of the Foreign Trade Undersecretariat, said that such meetings make considerable contributions to the commercial relations between the two countries.

Ozcan stressed that Turkey is ready to create necessary conditions to further improve economic and commercial cooperation with China.

Avni Ozcan gave information about the latest developments in the Turkish economy. He said, ''Turkey has cooperation links with many countries. Turkish companies made a number of investments in different countries in various fileds. There are cooperation opportunities especially in the Balkans. Turkish and Chinese businessmen can cooperation in many fields including food and the high-technology products.''

Akif Ayhan, the Turkish Consul General in Shanghai, said that interest in Turkey continues to grow in Shanghai. He added that the Turkish Airlines' (THY) direct flights between Turkey and China is the first concrete step of this cooperation.

Yavuz Onay, the Chairman of the Turkish-Chinese Business Council of the

Foreign Economic Relations Committee (DEIK), stressed that commercial relations with China should be increased.

Businessmen will return to Turkey on June 19.

A.A

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