Anadolu Agency: News in English, 01-03-02

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ANADOLU AGENCY

NEWS

02 MARCH

2001 Friday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] WORLD BANK VICE PRESIDENT DERVIS' CONTACTS IN ANKARA

[03] U.S. RELEASES 2000 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT

[04] GAP REGION EXPORTS AGRICULTURAL, ANIMAL AND

[05] CHAIRMAN OF GSO SAYS REAL ECONOMY MONITORING COMMITTEE

[06] WORLD BANK VICE PRESIDENT DERVIS; -''THIS IS A TEAM WORK. NO ONE CAN DO ANYTHING ON HIS OWN''

[07] CENTRAL BANK TRANSFERS 33 BILLION 850 MILLION 640

[08] PROF. PAKSOY SAYS TURKEY CAN OVERCOME ITS

[09] FOREIGN MINISTER CEM ARRIVES IN BELGRADE, YUGOSLAVIA

[10] DISK ORGANIZES A PANEL DISCUSSION ON ''FULL MEMBERSHIP PROCESS TO EU AND ITS SOCIAL DIMENSION''

[11] TREASURY UNDERSECRETARY DEMIRALP TO RETIRE AS OF LATE ON FRIDAY

[12] TRNC PRESIDENT DENKTAS SAYS IT IS UP TO U.S. IF IT DOES NOT WANT TO APPOINT COORDINATOR TO CYPRUS

[13] LABOR AND SOCIAL SECURITY MINISTER OKUYAN: ''FOREIGN EXCHANGE AND

[14] KEMAL DERVIS TO BE APPOINTED AS STATE MINISTER

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

GOOD NEWS IN TOURISM
A total of 185 thousand tourists arrived in southern Antalya province during the first two months of the year. This number shows that almost 12 million tourists will visit Turkey during the next season. Sources said that the recent crisis in Turkey wouldn't negatively affect the tourism sector as tourists could prefer to spend their holidays in Turkey since the U.S. dollar and German mark gained in value against Turkish lira.(TL). The Ministry of Tourism targets the arrival of 12 million tourists in Turkey during the 2001 tourism season.

MILLIYET (LIBERAL)

THEY WOULD ASSASINATE DEMIREL
It was 1996. Algerian terrorists planned to intimidate Turkey because of its Middle East policy. Their target was then President Suleyman Demirel. The attemp which has been kept secret so far, was revealed at the trial of 20 Algerian fundamentalist suspects in France. According to the French Prosecutor, the suspects were were in close connection with Saudi dissident Osama bin Laden. The Prosecutor said that the suspects had planned to assasinate Demirel due to Turkey's rapprochment policy with Israel. 10 false Moroccan passports were sent to Istanbul to this end. But the plan had not been put into practice.

''NEW ECONOMIC PROGRAM WILL NOT BRING FORTH TAX''
State Minister and Deputy Prime Minister Mesut Yilmaz said that they would work on new economic program during the nine-day religious program. He said, ''we estimated that floating in exchange rates and interest would last for two months. The new economic program will not bring forth tax. We will try to create different sources of revenue.''

SABAH (LIBERAL)

U.S. WARNS: ''DRUG ADDICTION BEGINS AT AN EARLIER AGE''
The U.S. Department of State released International Narcotics Control Strategy Report for 2000. The report said, ''Turkey continues to be a major transit route for Southwest Asian opiates moving to Europe. The incidence of substance abuse in Turkey remains low, although surveys indicate that the abuse rate among school children continues to grow and is beginning at an earlier age. During 2000, Turkish law enforcement agencies, including the Turkish National Police, the Jandarma (rural police), Customs and the Coast Guard, seized over 5.9 tons of heroin, 25.6 tons of hashish and thousands of pills. There were 6,131 drug-related arrests (a 20 percent increase from 1999) and a significant increase in seizures of precursor chemicals, including acetic anhydride.''

CUMHURIYET (LEFT)

ECEVIT SAYS THEY CAN'T DO ANYHTING REGARDING RECENT DISMISSAL OF
JOURNALISTS FROM SEVERAL NEWSPAPERS
Prime Minister Bulent Ecevit said the Turkish press was undergoing a very difficult process, adding that they didn't have authority to do interfere in the businesses of the newspaper owners. When journalists asked his views on dismissal of journalists from newspapers, Ecevit said he could discuss the issue with the owners of the journalists when they met.

RADIKAL (LEFT)

MOODY'S DOES NOT CHANGE TURKEY'S RATING
Moody's, one of the worldwide famous rating institutions did not change the rating of Turkey which is stable. Moddy's said that Turkey's ''B1'' rating for bonds and debenture bonds and ''B2'' rating for bank deposits were changed from positive to stable on Feb 21, adding the outlook continues as stable.

TURKIYE (RIGHT)

WWF STARTS TO FUNCTION IN TURKEY
The World Wild Life Fund (WWF), will start to function in Turkey under the name of WWF-Turkey. The Foundation to Preserve Wild Life will continue its activities under the WWF-Turkey name with a protocol signed between WWF and the foundation in Istanbul. In the meantime, WWF-International awarded Garanti Bankasi with Golden Panda award for its contributions to preserve the wild life.

ZAMAN (CONSERVATIVE)

FOREST FIRE DESTROYS 300 HECTARES OF FORESTED LAND IN ISKENDERUN
The forest fire which started in Iskenderun township of southern Hatay province destroyed more than 300 hectares of forested land. The fire couldn't be put out for a long time due to the strong wind in the region.

[02] WORLD BANK VICE PRESIDENT DERVIS' CONTACTS IN ANKARA

Addressing journalists prior to the meeting, Dervis said that Gunes was one his oldest friends, and added that he would exchange opinion with Gunes on economic developments.

Following the meeting, Gazi Ercel, the former governor of Central Bank, visited Dervis.

[03] U.S. RELEASES 2000 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT

''The U.S. discontinued its annual assistance program to Turkey in 2000 when Turkey did not accept human rights language in the bilateral letter of agreement. Turkey is a party to the 1988 United Nations Drug Convention,'' it said.

The report noted, ''Turkey remains a major transshipment point for heroin passing from Southwest Asia, primarily through Iran, to European markets.''

''The Government of Turkey (GOT) and its law enforcement and antinarcotics forces have long attached top priority to disrupting narcotics trafficking and continued to do so in 2000. In cooperation with the UNODCCP, Turkey opened a training academy to provide instruction to counternarcotics officers from Turkey and regional countries,'' the report said.

''During 2000, Turkish law enforcement agencies, including the Turkish National Police, the Gendarmerie teams, Customs and the Coast Guard, seized over 5.9 tons of heroin, 25.6 tons of hashish and thousands of pills. There were 6,131 drug-related arrests (a 20 percent increase from 1999) and a significant increase in seizures of precursor chemicals, including acetic anhydride,'' it said.

Referring to the issue of corruption, the report said, ''in 2000, the GOT staged a major campaign against corruption. The Interior Minister, in conjunction with the Turkish National Police and Customs, conducted widespread operations against fictitious exports and government corruption, particularly in Turkey's eastern and southeastern provinces. While corruption remains prevalent in Turkey, it is rarely associated with narcotics. The Interior Minister's campaigns against corruption, particularly in the government, have received widespread public support.''

The report added, ''law enforcement cooperation will continue between the USG and GOT entities to stem the flow of narcotics. As Turkey prepares to join the European Union (EU), it will need to significantly improve its narcotics interdiction capability. For the next several years, tight budgets will limit the ability of Turkish counternarcotics forces to obtain the equipment they need to pursue their primary focus of interdicting and disrupting narcotics flows across

Turkey.''

[04] GAP REGION EXPORTS AGRICULTURAL, ANIMAL AND

GAP region exported products worth of 86 million 941 thousand U.S. dollars in the first two months of 2000.

The data of the Southeast Anatolia Exporters Association show that the region exported livestock and animal products worth of two milion 567 thousand U.S. dollars; cereals, grain cereals and seeds worth of 15 million 522 thousand U.S. dollars; dried fruit worth of seven million 364 thousand U.S. dollars; textile products worth of 55 million 160 thousand U.S. dollars; and fruit, vegetable, and industrial products worth of four million 354 thousand U.S. dollars in the first two months of the year.

Exports of livestock, and animal products from the region increased 970 percent; exports of cereal, grain cereal and seeds increased 9 percent, and the exports of textile products increased 17 percent when compared to the same period of last year.

Exports of dried fruits from GAP region reduced four percent, and exports of fruit, vegetable and industrial products decreased 75 percent when compared to the first two months of 2000.

[05] CHAIRMAN OF GSO SAYS REAL ECONOMY MONITORING COMMITTEE

Kocer who is also a member of the Union of Chambers and Commodity Exchanges of Turkey (TOBB), said that the committee was necessary in terms of monitoring the changes in the foreign trade, monetary and financial markets.

The government and the committee should implement a Real Economy Program including reviews of program once in every six months Kocer said, and added that there shouldn't be a deviation from this program.

Kocer noted a fund should be set up to heal the wounds of the Small and Medium Scale Enterprises (SMSEs) which had suffered serious losses after the implementation of floating exchange rate policy.

Development Bank of Turkey should be restructured and should carry out a new mission in terms of investment and production said Kocer, and added that a new initiative should be launched for exportation.

''Foreign employees working illegally in Turkey is another problem that we should tackle. An anti-damping implementation should be materialized for the products of the Far Eastern companies which caused an unfair competition by marketing cheaper products,'' Kocer added.

[06] WORLD BANK VICE PRESIDENT DERVIS; -''THIS IS A TEAM WORK. NO ONE CAN DO ANYTHING ON HIS OWN''

Dervis who was received by Prime Minister Ecevit after his arrival on Thursday evening, responded to questions of journalists.

Noting that he had observed the files and held telephone conversations with relevant officials, Dervis said, ''I came together with Gazi Ercel at the breakfast. I held telephone conversations with nearly 20 people. We are observing the situation.''

Pointing out that he would hold talks with World Bank, Central Bank and Treasury officials, Dervis said, ''we will decide how we can assist Turkey. We are waiting for the prime minister's and the deputy prime ministers' proposals. It takes us some time to understand the situation and to decide what can be done.''

Dervis refrained from responding to questions about his possible appointment.

When asked whether or not he was observing the former program, Dervis said, ''no, I am observing possible program rather than the former program.''

When asked whether or not he had held talks with International Monetary Fund (IMF) and U.S. officials before coming to Turkey, Dervis said, ''of course, I held talks with IMF and U.S. officials. I have to deal with economic management problems and capital flow problems due to my position at the World Bank. Turkey is a part of the world. Therefore, Turkey is included in my mission field. I also held talks with European officials.''

Dervis stressed that both the World Bank and the IMF wanted to support Turkey.

He stressed that sound social structure and great economic potential should be explained to everyone in Turkey.

Dervis added, ''this is a team work. No one can do anything on his own.''

[07] CENTRAL BANK TRANSFERS 33 BILLION 850 MILLION 640

According to the information given by Onal the Central Bank transferred 33 billion 850 million 640 thousnad U.S. dollar abroad during the last three years. The foreign debt payment of the Treasury constituted the 26 billion 451 million 210 thousand U.S. dollars of this amount.

The transfers of the Central Bank abroad are as follows:

1998 1999 2000 Total

(million U.S. dollars)

Other 1319.20 907.47 907.06 3133.730

Central Bank 386.25 456.81 523.33 1366.390

IMF 258.04 414.70 151.78 824.520
Defense Fund 182.98 60.22 - 243.200

Cheque payment 322.82 467.77 427.50 1218.090

Diplomatic payments 206.17 198.40 208.93 613.500

Total 12409.67 10699.60 10741.37 33850.640

[08] PROF. PAKSOY SAYS TURKEY CAN OVERCOME ITS

Halime Paksoy had previously signed the ECES agreement on behalf of Turkey with the International Energy Agency (IEA) in 1995.

This agreement aims at placing Turkey among the countries which try to solve their energy problems with ECES system.

In the process following the signing of the agreement, the Center on Researches for Environmental Problems of Cukurova University (CESAM) took active role in IEA's group studies (Annex 8, Annex 10, and Annex 13) on the issue, and undertook chairmanship of Annex 14 which was formed following the meeting in Sweden in June of 1999.

The previous meeting of Annex 14 was held in Japan in November of 2000, and the fifth meeting of Annex 14 will be held in Istanbul on April 19, 2001.

Experts from Germany, China, Sweden, Japan, Canada, Malaysia, and Turkey will participate in the meeting.

This system enhances efficiency in energy and provides an energy saving between 60 and 95 percent said Paksoy and added that the system also is not hazardous for the ozone layer.

[09] FOREIGN MINISTER CEM ARRIVES IN BELGRADE, YUGOSLAVIA

Cem and the accompanying delegation were welcomed by Yugoslavian Minister Rasam Lgagis, who is charged for national and ethnic groups.

Cem, who pays the first official visit to Yugoslavia since 1992, firstly met with Yugoslavian Minister Lgagis.

After this meeting, Cem will come together with Yugoslavian Foreign Minister Goran Svilanovic. Yugoslavian President Vojislav Kostunica can also receive Cem and the accompanying delegation, but this meeting is not definite now.

Diplomatic sources said that the Yugoslavian administration regards the visit of Foreign Minister Ismail Cem as a turning point in development of the relations between the two countries.

Yugoslavian media covers widely the visit of Cem and it announces the statements of the two countries' officials.

For the first time, a Turkish foreign minister visits Yugoslavian Federal Republic since April 1992, except Cem's visit to Yugoslavia between 7-8 March, 1998 to convey the message of the then President Suleyman Demirel about Kosovo.

[10] DISK ORGANIZES A PANEL DISCUSSION ON ''FULL MEMBERSHIP PROCESS TO EU AND ITS SOCIAL DIMENSION''

Suleyman Celebi, the Chairman of DISK said that European Union (EU) is not only an economic union, but it also had a social dimension.

Addressing the conference, Karen Fogg, the EU Commission's Representative to Turkey said that the EU Commission wants to see the national programme for the adoption of the acquis (NPAA) which will be prepared by Turkey to abide with EU.

Fogg said that NPAA is an important step in the accession process that started after Helsinki summit, adding that ''we look beyond the NPAA, because the presentation of good will is very important. I underline the fact that if the government puts forward its good will, we are also ready to work on technical and financial aid issues with good will and full support. The economic crisis of Turkey does not affect its relations with the EU. Our cooperation and relations are getting more importance, certainly this does not mean ignoring the economic and social problems of Turkey. The only way to move forward is to have social dialogue. The key is to target an economy which is based on information. Nowadays, we talk about employment ratios, rather than unemployment ratios.''

Fogg said that Turkey has to improve its social security system, adding that ''certainly, this needs time and all candidate countries have to form an action plan.''

[11] TREASURY UNDERSECRETARY DEMIRALP TO RETIRE AS OF LATE ON FRIDAY

Demiralp who was granted leave between February 26 and March 2 following the latest economic crisis and will retire as of today said farewell to the Treasury Undersecretariat personnel.

When asked whether or not Dervis had met with him, Demiralp said that he had not held such a meeting and had not received any demand for such a meeting.

Noting that he only knew that the government was planning to appoint Dervis as the Central Bank Governor, Demiralp said that with this respect, Dervis's getting information firstly from the Central Bank was in question.

Stating that Kemal Dervis could later hold meetings with other units of the economy including the Treasury, Demiralp said, ''If he accepts this, he will undertake a tough mission. However, on my personal views, he is a very good preference and he is a person who does have the power to represent Turkey in the very best way both in Turkey and abroad. I wish him success.''

''As a Turkish citizen, I want to say that I am always ready to assist and help him. Our aim is to achieve targets of the economic program,'' he said.

[12] TRNC PRESIDENT DENKTAS SAYS IT IS UP TO U.S. IF IT DOES NOT WANT TO APPOINT COORDINATOR TO CYPRUS

Denktas said in his meeting with a group of businessmen that certain countries gave up appointing special representatives to Cyprus, adding that if the U.S. does such a thing after Germany, this is their decision.

Denktas said that there are too many coordinators, adding that it is really difficult for them to explain the same things to too many people.

Denktas stressed that they are ready to negotiate, commenting that a suitable basis has to be prepared for the talks.

The Greek Cypriot side has to tell to the Greek Cypriot people that it is not the government of the Turkish Cypriot people, Denktas noted.

''If they accept our status, we can talk with them,'' he added.

[13] LABOR AND SOCIAL SECURITY MINISTER OKUYAN: ''FOREIGN EXCHANGE AND

''Foreign exchange and interest rates will become more stable after the religious holiday,'' he said.

When asked whether or not businessmen wanted appointment of a non- parliamentary person as the head of the economy, Okuyan said, ''economy is a concept that can't be separated. The government and parliament are the authorities to solve the economic problems.''

Stressing that the government had discussed necessary measures with the relevant bureaucrats and academicians after the crisis, Okuyan said that some of those measures started to be implemented and there had been a recovery in the exchanges and interest rates since last Monday.

''I believe that works on program will be concluded in the religious holiday. As the government, we will publicly announce the measures in coming days. After the religious holiday, foreign exchange and interest rates will become more stable. These problems will be solved in a short period of time,'' he said.

When asked whether or not World Bank Vice President Kemal Dervis would be assigned in the cabinet and what kind of a mission he would undertake, Okuyan said that meetings on this issue continued, and that Prime Minister Bulent Ecevit would make a statement in coming days.

[14] KEMAL DERVIS TO BE APPOINTED AS STATE MINISTER

Prime Minister Ecevit said on Friday that the decree that foresees appointment of Dervis as the State Minister charged with the treasury has been opened to signature.

Dervis will be responsible for the Banking Regulation and Inspection Board (BBDK), Central Bank, Ziraat Bank, Capital Market Council, Halkbank and Türkiye Kalkınma Bankası (Turkey Development Bank).

Ecevit added that Sureyya Serdengecti, the Central Bank Deputy Governor was appointed as the Governor and Ferhat Emil, Deputy Undersecretary of the Treasury will act as the Treasury Undersecretary.

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