Anadolu Agency: News in English, 00-08-04

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ANADOLU AGENCY

NEWS

04

AUGUST 2000 Friday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] TOTAL DEPOSITS AT BANKS REACH 54.4 QUADRILLION TL

[03] REPO TRANSACTIONS BETWEEN BANKS AND THEIR CUSTOMERS DECREASE 758.8 TRILLION TL

[04] SECURITIES ACCOUNT AT BANKS INCREASES 101.8 TRILLION TL

[05] GALATASARAY COMES ON SEVENTH PLACES AMONG BEST SOCCER CLUBS OF WORLD

[06] PALESTINIAN PRESIDENT ARAFAT DUE IN TURKEY

[07] 2,500 PEOPLE RETURN TO THEIR VILLAGES IN JULY AS A PART OF ''RETURN TO VILLAGE'' PROJECT

[08] BANKS' CREDIT VOLUME INCREASES 418.4 TRILLION TL

[09] GSM 1800 LICENSE AGREEMENT INITIALLED

[10] BALANCE OF PAYMENTS IN JANUARY-MAY 2000 (1)

[11] GIANT CARGO SHIP IN MARMARA -'ENTERPRISE' TO PASS THROUGH ISTANBUL STRAIT ON SATURDAY

[12] BALANCE OF PAYMENTS IN JANUARY-MAY 2000 (2)

[13] 18 KG HEROIN SEIZED IN GAZIANTEP

[14] GENEVA TALKS ON CYPRUS END

[15] GSM 1800 LICENSE AGREEMENT -TRANSPORTATION MINISTER: ''DRAFT AGREEMENT WILL BE PROBABLY SENT TO THE COMPETITION BOARD TODAY''

[16] PRESIDENT ARAFAT OF PALESTINE DUE IN TURKEY (2) -ARAFAT TO SEEK SUPPORT TO DECLARATION OF INDEPENDENT PALESTINIAN STATE

[17] CREW OF TURKISH VESSEL SANK OFF-ITALY ARRIVE IN TURKEY

[18] JUSTICE MINISTER TURK GIVES INFORMATION ABOUT THREE DRAFT LAWS SUBMITTED TO PARLIAMENT

[19] 20 KG HEROIN SEIZED IN GURPINAR

[20] GENEVA TALKS ON CYPRUS END (2) -U.N. REPRESENTATIVE DE SOTO SAYS HE DIDN'T ISSUE NEW PROPOSALS TO THE CONCERNED SIDES

[21] FOREST FIRE IN KARAISALI PARTLY TAKEN UNDER CONTROL

[22] FOREST FIRES -PRESIDENT SEZER: ''AS CITIZENS AND NATION, IT IS OUR ESSENTIAL RESPONSIBILITY AND DUTY TO PROTECT ALL OF OUR NATURAL BEAUTIES AND HAND OVER THESE NATIONAL HERITAGE FORESTS TO NEXT GENERATIONS''

[23] PREMIER ECEVIT: ''PRESIDENT DOES NOT HAVE ANY HESITATION ABOUT THE ESSENCE OF KHK ON CIVIL SERVANTS''

[24] TURKISH MINORITY REACTS TO GREEK ALLEGATIONS ABOUT WESTERN THRACE

[25] PREMIER ECEVIT: (2) ''WE WON'T WITHDRAW CIVIL SERVANTS DECREE''

[26] FAO REPRESENTATIVE TO TURKEY MUTHOO: ''IMPROVING AGRICULTURAL SECTOR IN TAJIKISTAN CAN CREATE OPPORTUNITIES FOR TURKISH EXPERTS AND ENTERPRENEURS''

[27] GENEVA TALKS ON CYPRUS END (3) -TRNC PRESIDENT DENKTAS:''CLERIDES SHOULD TELL THE REALITIES TO HIS PEOPLE''

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

A CODED LIFE TO BEGIN
Starting on November 1, all citizens will be given a 11 digit code number. The new identity cards which will be given to everybody in the next five years will not have religion, marital status and blood type like the old identity cards. Interior Minister, during Thursday's Ministers Council meeting asked for support from the ministers for the project.

MILLIYET (LIBERAL)

SUSPECT CETIN RELEASED
Abdullah Argun Cetin, the suspect who was tried on charges of ''being involved in assasination of journalist-writer Ugur Mumcu in a bomb attack on January 24, 1993'' was released. Mehmet Orhan Karadeniz, the chief judge, said, ''the indictment which was prepared by the Ankara DGM, at the end of 'Umut (Hope) Operation' that was launched to reveal a number of unsolved homicides including assasination of Mumcu was sent to us. It was understood that the name of Cetin was not mentioned in the indictment. At the same time, the Foreign Ministry responded our note, saying that suspect Cetin held telephone conversations with Istanbul and the U.S. between November 7- 10, 1998 at the Bucharest Majestic Hotel in Romania.'' Karadeniz said that the court decided to release the suspect Cetin upon the request of the Republican Prosecutor Semsettin Ozcan by taking into consideration ''the essential character of the crime, the existing evidence and the detention period of the suspect.''

SABAH (LIBERAL)

BULGARIAN PRESIDENT STOYANOV CONGRATULATES BESIKTAS
Bulgarian President Petar Stoyanov who came to Turkey to spend his holiday, congratulated Besiktas Soccer Club which beat PFC Levski Sofia of Bulgaria in second leg of the second qualifying round of European Champions League. Within framework of his contacts in Ankara, President Stoyanov came together with President Ahmet Necdet Sezer.

CUMHURIYET (LEFT)

PISKINSUT WARNS GOVERNMENT:''F TYPE PRISONS SHOULD NOT TURN TO CELLS''
Speaking about the F type prisons which caused wide protests throughout the country, Parliament Human Rights Commission Chairwoman Sema Piskinsut said people react against F type prisons because they fear that this new system will be used to isolate inmates in single cells. She said prison personnel should be trained so that they can take decisions objectively, not according to their personal ideologies. Noting that punishment and execution system is applied very poorly in Turkey, Piskinsut said authorities should study prison models that are used in the modern world.

RADIKAL (LEFT)

550 HECTARES OF FORESTED AREA BURNT DOWN TO ASHES
The Forestry Ministry said that 550 hectares of forested area was burnt down to ashes in 14 fires in different parts. Releasing a statement, the Forestry Ministry said that nine of the forest fires were completely taken under control while forest fires in Karaisali, Kemer, Kusadasi and Bayramic were still continuing. A total of 15,476 hectares of forested area has been burnt down to ashes in 1,101 fires since the beginning of this year.

SECURITY FORCES DETAIN NEARLY 40 MEMBERS OF TAYAD
Security forces detained nearly 40 members of the Relatives of Prisoners Solidarity Association (TAYAD) who had chanted slogans in front of the Court House in Istanbul. A group of TAYAD members claiming that they had been maltreated and unjustly taken into custody in Adapazari during their journey to Ankara to submit their petition to the Justice Ministry, came to the Court House to denounce policemen charged in Istanbul, Sakarya, Kocaeli, Sakarya, Bolu, Duzce and Ankara provinces. After submitting their patition to the Court House, the group started to chant slogans to protest the ''F'' type prisons. Security forces warned the demonstrators to disperse peacefully. After the demonstrators insisted on chanting slogans, security forces intervened in the group, and detained nearly 30 of them.

YENI BINYIL (LIBERAL)

JUSTICE MINISTRY TO GIVE TOURS TO PEOPLE IN F TYPE PRISONS
The Justice Ministry took an action after the protests against F type prisons became widespread. Looking for public support for the F type prisons whose constructions are almost finished, the Ministry is will organize tours for groups of 20 people to promote the new type prisons. Those who want to visit Ankara Sincan F type prison need to apply to the Justice Ministry. The guests will be offered cake and tea during the tours.

TURKIYE (RIGHT)

CEM: ''TURKEY'S INTERVENTION TO CYPRUS IS NOT AN INVASION''
Foreign Minister Ismail Cem, in his article which was published in the Italian newspaper La Stampa on Wednesday, said Turkey's intervention to Cyprus in 1974 cannot be regarded as an ''invasion'', and he stressed that this was carried out to secure the freedom of 200,000 Turkish Cypriots.

ZAMAN (CONSERVATIVE)

FOREIGN MINISTER CEM MEETS WITH DEMIREL, FORMER PRESIDENT
Foreign Minister Ismail Cem visited Suleyman Demirel, the former President of Turkey. The meeting at Demirel's house lasted for almost 45 minutes. Responding to questions of journalists following the meeting, Cem said, ''there is an opinion to establish a European Union (EU) Foundation. Demirel supports this opinion. We have discussed the issue.'' When asked whether or not preparations for the foundation had been finalized, Cem said, ''Demirel and I have discussed the issue.''

[02] TOTAL DEPOSITS AT BANKS REACH 54.4 QUADRILLION TL

When the inter-banks deposits are not considered, the total deposit, which was 47 quadrillion 621.2 trillion TL on July 14, increased 1 quadrillion 603.7 trillion TL to 49 quadrillion 224.9 trillion TL on July 21.

The total TL deposit increased 919.4 trillion TL to 24 quadrillion 209.9 trillion TL on July 21. The total TL deposit was 23 quadrillion 290.6 trillion on July 14.

As of July 21, the total TL deposit was composed of 15 quadrillion 516.2 trillion TL deposits at public banks, 8 quadrillion 423.5 trillion TL of deposits at private deposit banks and 127.8 trillion TL of deposits at foreign banks.

The foreign exchange accounts at banks increased 684.4 trillion TL to 25 quadrillion 15 trillion TL on July 21.

[03] REPO TRANSACTIONS BETWEEN BANKS AND THEIR CUSTOMERS DECREASE 758.8 TRILLION TL

The reverse repo transactions, which were 7 trillion 122 billion TL on July 21, increased 4 trillion 246 billion TL to 11 trillion 368 billion TL on July 28.

The repo transactions among the financial organizations reduced 142.05 trillion TL to 2 quadrillion 200.3 trillion TL on July 28. The total repo transactions amount was 2 quadrillion 342.3 trillion TL on July 21.

The reverse repo transactions among the financial organizations, which were 2 quadrillion 339.5 trillion TL on July 21, decreased 145.5 trillion TL to 2 quadrillion 194.1 trillion TL on July 28.

[04] SECURITIES ACCOUNT AT BANKS INCREASES 101.8 TRILLION TL

The total securities account at banks was 11 quadrillion 865.2 trillion TL on July 14.

The Central Bank data shows that there were a total of 11 quadrillion 745.5 trillion TL of securities including 8 quadrillion 682.2 trillion TL of securities, and 3 quadrillion 63.3 trillion TL of securities over foreign currency at the deposit banks portfolio.

The securities over TL at deposit banks are composed of 395.2 trillion TL in treasury bonds, 7 quadrillion 452.2 trillion TL in state debenture bonds and 639.5 trillion TL in stocks.

A total of 597.7 trillion TL of foreign currency securities at these banks are abroad while there is a total of 1 quadrillion 624.8 trillion TL of state debenture bonds among the domestic securities.

The total securities account at the development and investment banks was 233 trillion TL.

[05] GALATASARAY COMES ON SEVENTH PLACES AMONG BEST SOCCER CLUBS OF WORLD

According to the International Federation of Football History and Statistics (IFFHS), Galatasaray, winner of this year's UEFA Cup, left behind many worldwide famous soccer clubs such as FC Juventus, Valencia CF, Arsenal, FC Porto, AC Fiorentina, AS Monaco, SV Werder Bremen, Newcastle United, TSV Bayer 04 Leverkusen, FC Internazionale, Aston Villa and AC Parma.

Meanwhile, Besiktas which beat PFC Levski Sofia of Bulgaria in second leg of the second qualifying round of European Champions League, came on the 123rd place in the same list.

According to the the list prepared by the IFFHS, the top twenty soccer clubs are as follows:

Clubs Country Score

-------------- ------- ----
1-FC Bayern Munich Germany 307

2-Real Madrid CF Spain 305

3-SS Lazio Italy 300

4-FC Barcelona Spain 294

5-FC Chelsea Britain 292

6-Manchester United Britain 280

7-GALATASARAY TURKEY 277.5
8-Boca Juniors Argentina 249

9-Valencia CF Spain 246

10-Corinthians Brazil 244

11-Palmerias Brazil 236

12-Arsenal Britain 228

13-America Cali Colombia 225

14-FC Porto Portugal 224.5

15-River Plate Argentina 224

16-San Lorenzo de Almagro Argentina 222

17-Glasgow Rangers Scotland 221

18-FC Juventus Italy 209

19-Cruzeiro Belo Horizonte Brazil 208

20-AC Fiorentina Italy 206

[06] PALESTINIAN PRESIDENT ARAFAT DUE IN TURKEY

Officials at the Foreign Ministry told the A.A correspondent on Friday that President Arafat would meet with President Ahmet Necdet Sezer, Prime Minister Bulent Ecevit and Foreign Minister Ismail Cem.

President Arafat is expected to depart from Turkey later on Saturday.

After the sides failed to reach an agreement at the Camp David Summit, President Arafat stated that he would declare a Palestinian State on September 13.

President Arafat hald held contacts in Egypt, France, Saudi Arabia, Yemen, Morocco, Tunisia, Algeria and South Africa to search for support to declaration of Palestinian State.

[07] 2,500 PEOPLE RETURN TO THEIR VILLAGES IN JULY AS A PART OF ''RETURN TO VILLAGE'' PROJECT

''The project aims to help those who wish to return to their villages,'' Aydiner said. ''Only in July, in the Emergency Rule region, 2,250 people including 439 families returned to their homes. We will use the 3,3 trillion TL which was assigned for the project to help these people and make them lead comfortable lives.''

[08] BANKS' CREDIT VOLUME INCREASES 418.4 TRILLION TL

The Central Bank data shows that the total credits in the system was composed of 1 quadrillion 395.7 trillion TL of loans given to financial sector and 23 quadrillion 792.2 trillion TL of loans given to non-financial sector as of July 21.

The credits given to financial sector were composed of 732.9 trillion TL of loans given by deposit banks, and 662.8 trillion TL of loans given by development and investment banks.

[09] GSM 1800 LICENSE AGREEMENT INITIALLED

Sources said that the transfer of the license would be made after the Competition Board and Council of State approved the initialled agreement.

In accordance with the initialled agreement, Is Bankasi-Telekom Italia consortium should pay 2 billion 525 million U.S. dollars to the Transportation and Communications Ministry to operate the GSM 1800 system.

[10] BALANCE OF PAYMENTS IN JANUARY-MAY 2000 (1)

The statement issued by the Central Bank is as follows:

''The main points related to the balance of payments developments in January-May 2000 are summarized below:

A-CURRENT ACCOUNT
Foreign trade deficit, which broadened by 167,3 percent in comparison with the same period of the previous year, realized as 7.660 million U.S. dollars in the January-May period of 2000. The key factors underlying this development are;

-the increase of export revenues by 4,8 percent,

-the increase of shuttle trade by 46,3 percent,

against

-the increase of import (CIF) expenditures by 37,6 percent.

On the other hand, net revenues from other goods and services, as well as unrequited transfers, fell by 2,6 percent, amounting to 3.210 million U.S. dollars.

As a result, the current account deficit materialized as 4.450 million U.S. dollars in the January-May period of 2000, down from a surplus of 431 million U.S. dollars at the same period of the last year.

1-Foreign Trade

Export (FOB) revenues, which had realized as 11.619 million U.S. dollars with the inclusion of shuttle trade amounting to 743 million U.S. dollars in the January-May period of 1999, increased to 12.648 million U.S. dollars, with the contribution of shuttle trade of 1.087 million U.S. dollars in the same period of 2000. Import (FOB) expenditures, including gold imports of 372 million U.S. dollars, had realized as 14.485 million U.S. dollars in January-May 1999. As for the same period of 2000, the same item increased to 20.308 million U.S. dollars, of which 783 million U.S. dollars was gold imports.

Consequently, the foreign trade balance, resulted in a deficit of 7.660 million U.S. dollars in January-May 2000, increasing by 167,3 percent compared to a deficit of 2.866 million U.S. dollars in the same period of the last year.

(Million US dollars) Jan.-May 1999 Jan.-May 2000 Change (percent)

-------------------- ------------- ------------- ----------------
Exports FOB 11.619 12.648 8,9

Shuttle trade 743 1.087 46,3

Imports FOB -14.485 -20.308 40,2

Gold imports -372 -783 110,5

Foreign trade deficit -2.866 -7.660 167,3

(To be continued)

[11] GIANT CARGO SHIP IN MARMARA -'ENTERPRISE' TO PASS THROUGH ISTANBUL STRAIT ON SATURDAY

Ibrahim Koral, the director of the Gulf Agency Navigation Inc., which is the agency of the ship, said that all kinds of measures were taken for the safe passage of SG Enterprise.

Koral said that the Bahamian flagged ship which is loaded with 200,000 tons of iron ore, entered Canakkale Strait at 07.00 local time on Friday, adding the passage through Canakkale Strait lasted nearly three hours.

Koral said that the ship will come near Istanbul Strait between 18.30 and 19.30 local time today.

Officials of the Prime Ministry Maritime Undersecretary said that the ship which will come to Istanbul in the evening, won't be given permission to pass through the Strait on Thursday.

The permission will be given to the ship on Saturday morning, they said adding that the traffic in the Straits will be completely closed to traffic during the passage.

Meanwhile environmental non-governmental organizations are expected to protest the passage of the ship.

[12] BALANCE OF PAYMENTS IN JANUARY-MAY 2000 (2)

The statement issued by the Central Bank is as follows:

''2-Other Goods and Services Income, Expenditures and Unrequited Transfers:

In the January-May period of 2000, tourism revenues were 1.819 million U.S. dollars following an increase of 41,8 percent comparing to the same period of 1999. Interest income increased by 4,6 percent compared to the first five months of 1999, realizing as 1.030 million U.S. dollars, while other goods and services income reached 4.305 million U.S. dollars, decreasing by 16,5 percent.

As for the expenditure side of the above mentioned items; it is observed that the tourism and interest expenditures increased by 25,7 percent and 5, 5 percent, respectively, while other services expenditures decreased by 13, 5 percent. As a result, the realizations in these items in the January-May period of 2000 were recorded as 778, 2.262 and 3.005 million U.S. dollars, respectively.

During the same period, workers` remittances under the heading unrequited transfers materialized as 1.844 million U.S. dollars, decreasing by 5,9 percent.

B-CAPITAL MOVEMENTS
The developments under capital movements (excluding reserves) for the first five months of 2000 are as follows:

Regarding direct investments, in comparison with the same period of the last year, non-residents’ net direct investments in Turkey increased by 284 million U.S. dollars in the January-May period of 2000, amounting to 677 million U.S. dollars, while residents’ net direct investments abroad also increased by 638 million U.S. dollars, realizing as 776 million U.S. dollars. As a result, direct investments showed a net outflow of 99 million U.S. dollars.

While borrowings through bond issues in international capital markets under portfolio investments recorded a net bond issue of 1.583 million U.S. dollars in the first five months of 1999, the amount of net borrowing during the same period of this year realized as 2.787 million U.S. dollars.

On the other hand, residents` security transactions abroad classified under security investments that had shown net purchases of 273 million U.S. dollars in January-May 1999, have also resulted in net purchases of 78 million U.S. dollars in January-May 2000.

As for non-residents` security transactions in Turkey, net purchases of 307 million U.S. dollars in January-May 1999 and net sales of 138 million U.S. dollars were recorded for the same period of this year.

Consequently, portfolio investments recorded an inflow of 1.617 million U.S. dollars and 2.571 million U.S. dollars in the January-May period of 1999 and 2000, respectively.

The net outflow of 957 million U.S. dollars in long-term capital movements in the first five months of 1999, resulted in a net inflow of 1.001 million U.S. dollars in the same period of 2000.

As for the sub-categories of this caption; long-term foreign exchange credit disbursements increased to 5.982 million U.S. dollars, from 3.107 million U.S. dollars generally due to the increase of 544 million U.S. dollars in long term borrowings of general government and due to the increase of 2.254 million U.S. dollars in long term borrowings of other sectors.

Repayments increased to 5.248 million U.S. dollars, from 4.165 million U.S. dollars, in the first five months of 2000.

The last principal item under long term capital movements, deposits with the Central Bank, which had increased in the amount of 101 million U.S. dollars in January-May 1999, increased by 267 million U.S. dollars in the same period of 2000.

As for the assets side of short-term capital movements, while loans extended had realized as 312 million U.S. dollars in the January-May period of 1999, this item realized as 85 million U.S. dollars in the same period of 2000. Banks' foreign exchange holdings with foreign correspondents which had dropped by 724 million U.S. dollars in January-May 1999, decreased by 912 million U.S. dollars in the same period of 2000.

As for the liability side of short-term capital movements, in January-May 1999, an increase was observed in the amount of 547 million U.S. dollars while 1.277 million U.S. dollars of increase was recorded in January-May 2000. One of the principal items in this category, loans received by banks, which had shown a net increase of 1.036 million U.S. dollars in January-May 1999, recorded a net increase in the amount of 809 million U.S. dollars in the same period of 2000.

In addition, in trade credits, which is under the other sectors, a net disbursement of 194 million U.S. dollars was observed in January-May 1999 while 732 million U.S. dollars of net disbursement was realized in January- May 2000. As for the foreign exchange credits, which is also under the other sectors, a net repayment of 15 million U.S. dollars and 258 million U.S. dollars were recorded in January-May 1999 and 2000, respectively. As a result, in the periods indicated, loans received under the short-term capital movements-liabilities recorded net inflows of 1.227 and 1.308 million U.S. dollars, respectively.

FX deposit accounts which had shown a decrease of 680 million U.S. dollars in the January-May period of 1999, also recorded a decrease in the amount of 31 million U.S. dollars in the first five months of 2000, mostly owing to the decrease in non-residents' foreign exchange deposit accounts opened with the resident banks.

C-RESERVE MOVEMENTS
In January-May 2000, Use of Fund Credits item had shown a net increase of 241 million U.S. dollars as a result of a credit disbursed in the amount of 292 million U.S. dollars in the month of May.

In line with the above stated developments, the official reserves, which had increased by 3.653 million U.S. dollars in the first five months of 1999, increased by 850 million U.S. dollars in the same period of 2000.''

(End)

[13] 18 KG HEROIN SEIZED IN GAZIANTEP

Gaziantep Security Directorate said on Friday that disguising as buyers, police set up connection with five drug smugglers.

It said police caught red-handed while those five people were trying to sell 18 kg 613 grams of heroin to policemen.

The five durg smugglers were detained, and three other people were wanted in connection with the smuggling, it added.

[14] GENEVA TALKS ON CYPRUS END

Alvaro De Soto, the U.N. Secretary General Kofi Annan's Special Representative to Cyprus had his last contacts with Rauf Denktas, the President of the Turkish Republic of Northern Cyprus (TRNC) and the Greek Cypriot leader Glafcos Clerides in the morning.

Speaking after the meeting, Denktas said that the U.N. didn't present a new thing to the Turkish side.

''Now it is time to think and evaluate till September 12. I am pleased by our attitude,'' Denktas said.

De Soto is expected to hold a press briefing and give information about the talks.

[15] GSM 1800 LICENSE AGREEMENT -TRANSPORTATION MINISTER: ''DRAFT AGREEMENT WILL BE PROBABLY SENT TO THE COMPETITION BOARD TODAY''

Speaking to the A.A correspondent, Oksuz recalled that in accordance with the previous protocol, they had stated that they could sign the license draft agreement till the end of July.

Noting that the signing of the draft agreement was postponed due to the speculative news in the press about the base transmitters, Oksuz said, ''the consortium officials said that they would review their investments and set their cost account again, considering that they could make supplementary payment due to base transmitters. We told them that a regulations had been prepared for the base transmitters within the framework of the European Union standards. They were persuaded. The Transportation and Communications Ministry and the consortium initialled the license draft agreement which will probably be sent to the Competition Board today. Later, it will be sent to the Council of State. We will wait for the opinion of the Council of State which should give its response within two months at the latest.''

Stating that the consortium should pay 2 billion 525 million U.S. dollars for the transfer of the license, Oksuz said, ''the consortium should pay 500 million of its bid in advance after the signing of the agreement, and the remaining amount in three months at the latest.''

[16] PRESIDENT ARAFAT OF PALESTINE DUE IN TURKEY (2) -ARAFAT TO SEEK SUPPORT TO DECLARATION OF INDEPENDENT PALESTINIAN STATE

Diplomatic sources said on Friday that Arafat who started touring several countries to seek support after the Camp David Summit, would arrive in Ankara early on Saturday to meet with President Ahmet Necdet Sezer, Prime Minister Bulent Ecevit and Foreign Minister Ismail Cem.

After the working lunch in which he will meet with President Sezer and other officials, Arafat will leave Ankara and continue his tour.

Diplomatic sources said that Arafat would request support from Turkey to independent Palestinian state he was planning to declare on September 13, and convey his opinion that ''Turkey should be influential on Israel by playing a more active role in the Middle East.''

After the sides failed to reach an agreement at the Camp David Summit, President Arafat had held contacts in Egypt, France, Saudi Arabia, Yemen, Morocco, Tunisia, Algeria and South Africa to seek support to declaration of independent Palestinian state.

Meanwhile, Arab diplomatic sources stress that Turkey is an important country in the region but it doesn't follow a policy in parallel to its importance in the region, emphasizing that Turkey should undertake a more active role in developments concerning the region.

Defending that Turkey does not have a ''comprehensive Middle East policy'', same sources claim that the current cooperation between Turkey and Israel harmed the neutrality, making Ankara one of the sides of the problem.

Noting that Turkey had ''historical responsibilities'' in the region and Jerusalem had been ruled by the Ottoman Empire for long years, same sources say that Turkey should fulfil this responsibility and should not remain silent.

A high-level Arab diplomat who shared the opinion of Arab sources said that Turkey should play a more active role in the region, adding Turkey was one of the most powerful forces in the region so it should play a role in parallel to its force.

Noting that Turkey was one of the first countries that recognized the Palestinian state, the high-level Arab diplomat said that the Palestinian and Israeli leaders could meet in Ankara.

''Why does not Turkey bring such a proposal clearly?'', the Arab official said.

Same sources say that Turkey had a special position in the Arab public, adding that they were pleased with President Sezer's attending the funeral of late Syrian President Hafez Al-Assad.

Meanwhile, the Israeli side considers Ankara's position as ''satisfactory''.

In a press conference he staged early in the week, Israeli Ambassador to Turkey Uri Bar-Ner recalled that Ankara had made a statement after the Camp David talks, and that Turkey's statement was satisfactory.

[17] CREW OF TURKISH VESSEL SANK OFF-ITALY ARRIVE IN TURKEY

Izmirligil said the crew of Hasat had been rescued by the Dutch-flagged vessel ''Govedil''.

The reason for the explosion had not been known yet, and they suffered from a 25 million U.S. dollars financial loss, he added.

[18] JUSTICE MINISTER TURK GIVES INFORMATION ABOUT THREE DRAFT LAWS SUBMITTED TO PARLIAMENT

The draft laws foresees an autonomous structure for Directorate General of Prisons, Turk said. The Directorate of Evaluation and Support Department and Turkey Justice Academy will be set up, he noted.

Speaking in a press briefing he held at the Justice Ministry building, Turk said that they presented three draft laws to the parliament to improve the service of judiciary organs.

The Directorate General of European Union (EU) and Information will also be set up in the Ministry, Turk said and noted that ''the national justice computer network will be founded. This will be completed in 2004 at the latest and all the courts in Turkey will exchange information among themselves. Our courts will be faster and they will also get information from the European Court of Human Rights.''

''Aren't there any reactions to the 'F' type prisons other than relatives of prisoners?'' asked a journalist to Turk who said that he was ready to listen to all the sections of the society.

[19] 20 KG HEROIN SEIZED IN GURPINAR

Sources said that narcotics officials, acting on a tip-off, had stopped an automobile coming from Baskale township of Van.

In their search, officials confiscated 20 kilograms of pure heroin hidden in the cache of the automobile.

Officials said the market value of the heroin was almost 500 billion Turkish liras.

Officials said the driver of the automobile was detained, and another person was wanted in connection with the smuggling.[00] TURKISH CYPRIOTS TO VISIT ERENKOY BY SEA
LEFKOSA - Turkish Cypriots will visit Erenkoy by sea, which is a territory of the Turkish Republic of Northern Cyprus (TRNC), but which is not connected to TRNC by land.

The Greek Cypriots don't permit 800 TRNC citizens to visit Erenkoy by land on August 8 to commemorate the 36th anniversary of Erenkoy Resistance.

The Greek Cypriot administration doesn't allow them to go to Erenkoy by land as a retaliation to the moving forward of the watchman towers in Akyar (Strovilia) village.

Erenkoy Fighters Association issued a written statement and condemned the Greek Cypriot administration which didn't give permission to the TRNC citizens to go to Erenkoy by land.

Meanwhile the Greek Cypriots won't come to the Apastopolos Andreas Monastry in Dipkarpaz region of TRNC on August 15 for a prayer.

[20] GENEVA TALKS ON CYPRUS END (2) -U.N. REPRESENTATIVE DE SOTO SAYS HE DIDN'T ISSUE NEW PROPOSALS TO THE CONCERNED SIDES

Staging a press briefing, De Soto said the proximity talks are just like a ''tree in action'' adding this is a process, its continuation is important. De Soto noted that nobody should regard this process in parts, adding that they are always ready to present proposals. ''That is why I am urging that the long view be taken,'' he added.

The aim of the proxomity talks is to find a 'comprehensive settlement' to the problem, said De Soto and noted that this term means a solution method whose implementation will be inspected by independent mechanisms and which will have a binding calendar.

''The basis is that nothing is agreed until everything is agreed. It's quite possible that you will not be seeing evidence of progress as we go along in dribs and drabs but rather than you will have to wait until everything is concluded,'' de Soto cautioned.

''The goal is an ambitious one. A comprehensive settlement of the Cyprus problem: one that comprises everything that must be settled in order to put an end to the problem, leaving nothing to be negotiated afterwards,'' he said.

We can't say that we reached a consensus without reaching a consensus on all issues, he said and noted that the embargo on news about the talks will continue.

When journalists told them there are claims saying that the EU and the U.S. put pressure in a contradictory way, De Soto pointed out that he didn't witness such a pressure.

De Soto stressed that they search for a solution which will satisfy all the Cypriots, adding they want to find a solution which will be to the interest of the all Cypriots.

When Greek Cypriots journalists asked Denktas whether or not the confederation proposal of Denktas contradicts with the U.N. Security Council Resolutions, De Soto said that all the issues should be on the table during the talks, as this was also stressed by the U.N. Security Council Resolution. There are many ways for solution, all kinds of issues can be put onto the agenda, he noted.

De Soto said that the disputes between the sides through the media have lessened this time and said this is an encouraging development.

De Soto noted that the issue of confidence building measures are not a part of this process thus they were not discussed.

U.N. mediator Alvaro de Soto said the negotiations would resume in New York September 12 and run into October.

De Soto added that there are many things to be thought about till the next round and to be taken up at the fourth round.

[21] FOREST FIRE IN KARAISALI PARTLY TAKEN UNDER CONTROL

Speaking to the A.A correspondent, Koksal said that the foest fire was still continuing in two regions.

Officials said that the forested area destroyed in the fire had increased over to one thousand hectares so far.

Officials added that fire-fighting teams backed by four fire-extinguisher helicopters were still trying to extinguish the fire.

Meanwhile, the fire was not now threatening the partly evacuated Nuhlu and Omerli villages any more as a result of the measures they took, officials added.

[22] FOREST FIRES -PRESIDENT SEZER: ''AS CITIZENS AND NATION, IT IS OUR ESSENTIAL RESPONSIBILITY AND DUTY TO PROTECT ALL OF OUR NATURAL BEAUTIES AND HAND OVER THESE NATIONAL HERITAGE FORESTS TO NEXT GENERATIONS''

President Sezer made a statement on forest fires broke out in many parts of Turkey.

The Presidential Press Center said that President Sezer stated in his statement that forest fires which broke out in many parts of the country, especially in Karaisali township of southern Adana province created great sorrow among the Turkish nation.

Noting that thousands of forested areas were destroyed due to fires despite all measures, President Sezer said, ''not only our forests but also natural balances which are very important for the continuation of life are destroyed due to the forest fires which are caused by little mistakes in general.''

''As citizens and nation, it is our essential responsibility and duty and primary task to protect all of our natural beauties and hand over these national heritage forests to next generations. It should not be forgotten that Turkey's future is in question. Protection of our forests is equal to protection of Turkey's future. With this respect, I call each of the Turkish citizens to protect Turkey's future and forests,'' the President said.

''I want to convey my sorrow to the people living in the regions affected by the forest fires, and I hope that the continuing forest fires will be extinguished as soon as possible. With this respect, I thank all citizens and officials who are expending grat efforts to extinguish those forest fires,'' the President stated.

[23] PREMIER ECEVIT: ''PRESIDENT DOES NOT HAVE ANY HESITATION ABOUT THE ESSENCE OF KHK ON CIVIL SERVANTS''

''I have the impression that President Sezer is hesitant about bringing this sanction by a KHK,'' Ecevit stressed.

Responding to questions of journalists after the leaders summit, Ecevit said that the KHK on civil servants was taken up at the summit.

''I hope Sezer's hesitation about the KHK will be overcome in the coming days,'' Ecevit noted.

Ecevit noted that Palestinian President Yasser Arafat and the TRNC President Rauf Denktas will come to Turkey on Saturday.

Stressing that the private sector is behind the public sector in the struggle with inflation, Ecevit noted that the stability programme will be carried out in resolution.

[24] TURKISH MINORITY REACTS TO GREEK ALLEGATIONS ABOUT WESTERN THRACE

PASOK deputy Galip Galip told the A.A correspondent that the Greek Foreign Ministry's statement about the Western Thrace did not reflect the truth.

Galip stressed that the Turkish minority was still encountering several vital problems in fields like education, economy and religious freedom, especially in expressions of their national identity although there had been some positive developments about thier problems compared to the past.

''Claiming that these problems do not exist is nothing but nonsensical words aiming at hiding the truths,'' Galip said.

Galip stressed that Turkey was a guarantor state in accordance with the Lausanne Treaty which defined the status of the Turkish minority.

Galip said, ''As the Western Thracian Turks, we are pleased with the sensitivities shown by the motherland and guarantor state Turkey to the Western Thracian Turks' peaceful struggle for gaining their rights which are recognized by the international agreements,'' he added.

[25] PREMIER ECEVIT: (2) ''WE WON'T WITHDRAW CIVIL SERVANTS DECREE''

Ecevit noted that the decrease in the cost of production due to the inflation rates didn't reflect to the consumers, adding the decision of the Turkish Electricity Production and Transfer Inc. (TEDAS) about electricity production is just.

Speaking to journalists at the Prime Ministry building after the leaders summit, Ecevit said that Palestinian President Yasser Arafat will come to Turkey on Saturday and he will get information from Arafat about his meeting with Israeli Prime Minister Ehud Barak in the U.S.

Ecevit said that Rauf Denktas, the President of the Turkish Republic of Northern Cyprus (TRNC) will also come to Istanbul on Saturday following the end of Geneva talks, adding he will listen to the evaluations of Denktas about the talks in Geneva.

Ecevit noted that he will also get information tomorrow about the measures that will be taken by the Istanbul Governorship in a possible earthquake in Istanbul.

Ecevit noted that the prices of wholesale products increased by 1 percent in July, but those of the consumers increased by 2.2 percent and this was ''interesting.''

''It seems that the decrease in the cost of production didn't reflect to the consumers. 70 percent of the increase in the consumer prices stems from the private sector as State Statistical Institute (DIE) says. While the manufactured goods industry index increased only by 13.9 percent in public sector, it increased by 21.4 percent in private sector. This shows that the private sector is lagging behind the public sector in the struggle with inflation. I hope the private sector institutions will get the necessary results from that. The Council of Ministers and the concerned public institutions will continue their struggle with the inlfation in a determined way,'' said Ecevit.

Responding to questions of journalists, Ecevit said that they didn't convene the leaders summit for a long time.

''We evaluated the developments. It has been a very beneficial meeting,'' Ecevit said.

Upon a question, Ecevit said that President Ahmet Necdet Sezer didn't want him to withdraw the KHK on civil servants.

Ecevit noted that he will meet with TRNC Premier Dervis Eroglu when necessary. He can meet with Eroglu again if necessary, said Ecevit.

Responding to a question about the visit of Arafat to Turkey, Ecevit said that Turkey tries to play an active role in the Middle East.

Pointing out to the importance which Turkey, an important Middle East country, attributes to the peace process, Ecevit said that ''in that respect I think that our meeting with Arafat will be beneficial. Israeli Premier Barak had explained his impressions and views to us before Camp David talks in his long letters. We are in continious contact with both Mr. Barak and Mr. Arafat.''

When asked about the cancellation of certain weapon projects which were foreseen to be carried out together with Israel, Ecevit said that Turkey considers the projects not from political aspect, but from financial and technological aspects.

Upon another question about the debate on taking out the parts of blood, religion and marital status from new identity cards, Ecevit said that the project is very important. Ecevit said that there are various proposals about the information that is foreseen to be included in the identity cards.

(END)

[26] FAO REPRESENTATIVE TO TURKEY MUTHOO: ''IMPROVING AGRICULTURAL SECTOR IN TAJIKISTAN CAN CREATE OPPORTUNITIES FOR TURKISH EXPERTS AND ENTERPRENEURS''

Muthoo, who called Turkey to help Tajikistan as the drought and lack of food reached serious dimensions in this country, said that the existing reform process in Tajikistan should be speeded up and the uncertainities in the agriculture sector should be overcome.

Dr. Muthoo noted that Turkey has the necessary food for itself and he mentioned the success reached in agriculture field in Southeast Anatolian Project (GAP).

[27] GENEVA TALKS ON CYPRUS END (3) -TRNC PRESIDENT DENKTAS:''CLERIDES SHOULD TELL THE REALITIES TO HIS PEOPLE''

Speaking to reporters after the end of the second stage of the third round of the proximity talks held in Geneva, Denktas said that the way to the solution of the Cyprus problem is to accept the realities.

''Whatever their names are, there are two separate administrations and two separate states on Cyprus for 37 years. The common state collapsed 37 years ago. These realities should be accepted and this vicious circle should be broken. Clerides can be a strong leader when necessary. I hope he will act as a brave leader and tell the reality to his people that they don't represent the Turkish Cypriots and they are not the government of the whole Cyprus,'' Denktas.

He pointed out that they brought the cause of Turkish Cypriot to the negotiation table in a very good way, Denktas added that the coordinators whom they met with accepted that the documents they put forward are well prepared and comprehensive.

''We put forward our proposal of confederation in its all dimensions to the table. De Soto and the coordinators hoped to reach a result or least a frame from this round of talks. As far as I understood the lack of flexibility on the Greek Cypriot side impeded that,'' Denktas said.

He added that Alvaro De Soto is a very good diplomat who knows his subject very well, noting that De Soto is a good man who wants to help the concerned sides sincerely.

He will come together with Premier Bulent Ecevit in Istanbul and evaluate the issue from all of its aspects, said Denktas and noted that there is no time limitation in proximity talks.

''This does not mean that we will drift for a long time, the contacts can continue as long as our equal rights are protected,'' he added.

American and British coordinators functioned by supporting the efforts of the United Nations (U.N), Denktas noted and denied the claims saying that these countries put pressure on the concerned sides.

The demand of the U.S. to speed up the process before the coming elections is natural, he added and noted that there are differences between the attitudes of the U.S. and Britain.

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