Anadolu Agency: News in English, 01-05-28

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ANADOLU AGENCY

NEWS

28 MAY 2001 Monday

These are some of the major headlines and their brief stories in Turkey's press on May 28, 2000. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

HURRIYET (LIBERAL)

Volkan Vural, Turkey's Secretary General for the European Union (EU), informed Recai Kutan, the leader of the Virtue Party (FP), and members of the FP on the EU. When asked, ''secularism in Turkey looks like atheism. Why did not Western countries oppose to this implementation?'', Vural said, ''all countries applying to the EU for full membership has to give up its own legal system, and to accept the EU's legal system. In Europe, a person who does not defend secularism, is considered anti-democratic. Democracy cannot be provided without secularism.''

A MEMBER OF HEZBOLLAH KILLED

A member of terrorist Hezbollah organization who opened fire on a police vehicle patrolling in Bahcelievler neighborhood of southeastern province of Batman, was killed. Meanwhile, two policemen were injured in the incident. They were rushed to the State Hospital for medical treatment. Sources said that one of the policemen was in critical condition.

CEM: ''TURKEY WILL NOT ACCEPT GREEK CYPRIOT SIDE'S MEMBERSHIP TO EU''

Foreign Minister Ismail Cem said, ''Turkey will not accept Greek Cypriot side's membership to the European Union (EU).'' Cem stressed that there were circles in Europe opposing to Turkey's full membership to the EU because of its religion. In a statement to German Welt am Sonntag newspaper, Cem said, ''Turkey has not executed any capital punishment for more than 20 years.'' When asked whether or not capital punishment given to Abdullah Ocalan, the head of terrorist organization PKK, would be executed, Cem noted, ''I do not want to focus on some certain names. The European Court of Human Rights (ECHR) has been debating the issue. Turkish government has been waiting for the ECHR's decision. But our parliament will take the final decision.''

MILLIYET (LIBERAL)

State Minister Kemal Dervis said that the duty losses of the public banks stemmed from loans given to farmers, tradesmen and artisans, young and women entrepreneurs, and from support extended to heal the wounds of the natural disasters, not because of the credits used by the persons and companies. Dervis responded to questions of Mehmet Batuk, a deputy of the Virtue Party (FP) from Kocaeli province, on behalf of Prime Minister Bulent Ecevit. Dervis said Ziraat Bank, Emlak Bank, Vakiflar Bank and Halk Bank, as of September 2000, had the 60.7 percent of the Turkish lira deposits of the banking sector, and the 38.2 percent of the total deposits.

TURKEY RAISES RESERVATION TO OIC'S FINAL STATEMENT

Foreign ministers of member countries to the Organization of Islamic Conference (OIC) held a extraordionary meeting in Doha. At the end of the meeting, a final statement was released. Turkey raised reservation on the Article of the final statement about joint attitude to be assumed against Israel. The Article called on member countries to suspend their political relations and to harden economic relations with Israel as long as attacks on Palestinian people continue.

TRAFFIC ACCIDENT IN ERZURUM CLAIMS SIX LIVES

An automobile plunged into Tortum Lake near Uzundere township of eastern province of Erzurem, killing six people.

SABAH (LIBERAL)

President Ahmet Necdet Sezer will announce his decision about the law envisaging amendment to the Banks Law. The law was adopted by the parliament on May 11, and submitted to the Presidential Palace on May 14.

BALKAN POLITICAL CLUB FOUNDED

Former President Suleyman Demirel said that the Balkans could not be separated from Europe. ''We should maintain sustainable peace instead of limiting the crisis in this area,'' he said. The Balkan Political Club was founded in Bulgarian capital Sofia as a result of initiatives of former President Jelu Jelev of Bulgaria. The Club was formed by politicians from Turkey, Bulgaria, Greece, Albania, Bosnia-Herzegovina, Yugoslavia, Macedonia and Romania. Besides Demirel, Hikmet Cetin, the former Speaker of Parliament; Murat Karayalcin, the former Foreign Minister; Hayati Korkmaz, the Chairman of Parliamentary Turkey-Bulgaria Friendship Commission; Ali Serdengecti, a deputy of the Nationalist Movement Party (MHP) from Manisa province; and Prof. Dr. Yahya Sezai Tezel from the Ankara University represented Turkey at the meeting.

CUMHURIYET (LEFT)

Prime Minister Bulent Ecevit said, ''we have a different agenda. We do not plan to make a revision in the government. We have made many important structural changes in the last two years.''

SPRING MASS IN CAPPADOCIA

Istanbul Greek-Orthodox Patriarch Bartholomeos said, ''instead of remembering the bad memories, we should take lessons from them and move towards the good,'' when he conducted the spring mass in Urgup township of central province of Nevsehir. Bartholomeos thanked Urgup Mayor Bekir Odemis for the organization. Ioannis Corantis, the Greek Ambassador to Turkey, was also in attendance in the mass which was broadcast live on the Greek TV channel ERT-2. About 500 people came to watch the mass from Istanbul.

YILMAZ IN SKOPJE

Mehmet Nuri Yilmaz, the Head of Religious Affairs, proceeded from Kosovo to Macedonian capital Skopje. He visited Mustafa Pacha Mosque. Yilmaz said that they would undertake restoration of the mosque. Yilmaz also held talks with representatives of Turkish community in Skopje.

RADIKAL (LEFT)

Turkish policy will embrace new political parties this fall. Both leftist and rightist politicians have been seeking for new political parties in which leaders will not be the only power.

SCULPTURES ON NEMRUT MOUNTAIN TO BE RESTORED

International Nemrut Foundation Chairman Maurice Chijns said that the restoration of 2000-year old sculptures and other objects at Adiyaman's Kahta township would start on June 14. Crijns noted that the Nemrut Mountain was believed to be ''the best place to watch the sunset and the sunrise in the world'' by archeologists. He said that the sculptures located on the summit of the mountain at 2,150 meters high would be preserved and inherited to future generations.

NATURE FIGHTERS PROTEST TANKER PASSAGES THROUGH STRAITS

Members of the Nature Fighters Environmentalist Organization protested the passages of ships carrying hazardous substances and tankers through the Istanbul Strait by throwing tomatos to a cargo ship. The members of the organization threw tomatos to ''MILA,'' an Ukranian-flagged cargo ship which passed through Istanbul strait.

TURKIYE (RIGHT)

Prime Minister Bulent Ecevit said, ''for years I have been insisting that 'village-cities' should be set up in rural areas. I'm hoping that this year we'll make important progress in this project.'' Ecevit held a meeting with district officials of 41 villages of Cat township of eastern province of Erzurum. ''But in many places, villagers realized the importance of this project quite some time ago. Finally, we took a step towards this direction last year. Villagers in Cat made several applications to set up village- cities in their areas. We're receiving similar demands from other villages. I'm hoping that we'll make significant progress in this project,'' Ecevit told villagers.

VILLAGERS PROTEST AGAINST USE OF CYANIDE IN GOLD BLEACHING IN BERGAMA

Bergama's villagers who have been fighting against the usage of cyanide in gold bleaching closed the traffic at Canakkale-Izmir highway since gold production started in the mine. There is a growing tension between the gendarmerie forces and the villagers. The gendarmerie forces tried to prevent the villagers' protest when they blocked the traffic. Gendarmerie Second Commander Major Murat Oztur spoke with Environment Executive Council Chairman Oktay Konyar and convinced the villagers to open one lane to traffic. Later, the firemen sprayed water on the villagers to make them end their protest, but the tension rose higher when the villagers retaliated. The security forces used truncheons and dispersed the crowd.

ZAMAN (CONSERVATIVE)

The National Security Council (NSC) will convene on Tuesday under the chairmanship of President Ahmet Necdet Sezer. The monthly meeting of the NSC is expected to focus on the developments both in Turkey and abroad.

NO STEP BACK ON THE ISSUE OF ESDI

Foreign Ministers of member countries to the NATO will convene in Hungarian capital Budapest on May 30. Foreign Minister Ismail Cem will represent Turkey at the meeting which is expected to focus on the European Security and Defense Identity (ESDI), the latest developments in the Balkans, and missile defense system.

CONTENTS

[01] TRANSPORTATION MINISTER OKSUZ LEAVES FOR PORTUGAL

[02] FINANCE MINISTER ORAL: -''SUPPLEMENTARY BUDGET WILL BE SUBMITTED TO PARLIAMENT IN A WEEK''

[03] WORKS TO FORM NEW GOVERNMENT IN TRNC -PRESIDENT DENKTAS MEETS WITH LEADERS OF POLITICAL PARTIES

[04] NATIONAL DEFENSE MINISTER CAKMAKOGLU RETURNS TO TURKEY

[05] FOREIGN TRADE STATISTICS -2.5 BILLION U.S. DOLLARS GOODS EXPORTED AND 3.09 BILLION U.S. DOLLARS GOODS IMPORTED IN MARCH OF 2001

[06] STATE MINISTER DERVIS FOR ECONOMY: -''STATE SHOULD USE ITS INSUFFICIENT SOURCES IN THE BEST WAY''

[07] PRESIDENT DENKTAS OF TRNC DESIGNATES EROGLU TO FORM NEW GOVERNMENT (2) -TRNC EROGLU SAYS THEY WILL FORM COALITION GOVERNMENT AS SOON AS POSSIBLE

[08] COTTARELLI:''FLOATIONG FOREIGN CURRENCY REGIME WOULD NOT MAINTAIN ACCOUNTIBILITY ON ITS OWN''

[09] ECEVIT ASSESSES THE GOVERMENT'S PERFORMANCE IN LAST TWO YEARS (1) - ''THE GOVERNMENT STARTED REFORMS WHICH WENT NEGLECTED FOR MANY YEARS''

[10] PREMIER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (2) -ECEVIT SAYS 285 LAWS WERE ADOPTED IN TWO YEARS

[11] SCOTTISH TOURIST FOUND DEAD IN HOTEL ROOM IN MARMARIS

[12] PRIME MINISTER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (3)

[13] PREMIER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (4)

[14] PRIME MINISTER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (5)

[15] PRIME MINISTER ECEVIT ASSSESSES THE GOVERNMENT'S PERFORMANCE IN THE LAST TWO YEARS (6)

[16] PREMIER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (7)

[17] PRIME MINISTER ECEVIT ASSESSES THE GOVERNMENT'S PERFORMANCE IN THE LAST TWO YEARS (8)

[01] TRANSPORTATION MINISTER OKSUZ LEAVES FOR PORTUGAL

Responding to questions of A.A correspondent at Ankara's Esenboga Airport prior to his departure, Oksuz said that Turkey having the biggest land fleet of Europe, had been negatively affected by lack of harmony in free market.

He said that Turkish lorries had to overcome difficulties stemming from different regulations in European countries during their transit passages.

Oksuz said, ''a total of 800 vehicles passed from Turkey within scope of the Transportation Corridor in Europe, Caucasus and Asia (TRACECA) last year.''

He added that the meeting in Portugal aimed at developing a policy in European countries, especially in Central and Eastern European countries, on the issue of transportation.

Oksuz is expected to return to Turkey on Friday.

[02] FINANCE MINISTER ORAL: -''SUPPLEMENTARY BUDGET WILL BE SUBMITTED TO PARLIAMENT IN A WEEK''

Oral met with State Minister Kemal Dervis for Economy.

Addressing journalists following the meeting which lasted for about an hour, Oral said that they had discussed budget and public finance.

He said that draft law on supplementary appropriations was also brought onto agenda of the meeting.

When asked whether or not figures became clear, Oral told reporters, ''no, the figures have not become clear yet.''

[03] WORKS TO FORM NEW GOVERNMENT IN TRNC -PRESIDENT DENKTAS MEETS WITH LEADERS OF POLITICAL PARTIES

President Denktas will meet with leaders of the political parties having seats at the parliament.

Denktas received Zorlu Tore, the leader of the Nationalist Justice Party (MAP), earlier in the day.

Later, he met with Mehmet Ali Talat, the leader of the Republican Turkish Party (CTP).

President Denktas refrained from responding to questions.

Meanwhile, Tore said, ''we have proposed President Denktas to change the regime into presidency. We will put forward our proposal at our meeting with the new government. TRNS has been suffering from lack of government. The new government should be formed as soon as possible.''

[04] NATIONAL DEFENSE MINISTER CAKMAKOGLU RETURNS TO TURKEY

Addressing journalists at Ankara's Esenboga Airport after his arrival, Cakmakoglu said, ''we had reviewed bilateral relations and opportunities to further develop cooperation in defense industry.''

''We have reached the level of production in the agreement for purchase of armoured vehicles. An important progress has been recorded between Turkey and Malaysia in military training and defense industry.''

Responding to a question about investigation into CASA-type planes, Cakmakoglu told reporters that the investigation had been continuing.

When asked of the European Security and Defense Identity (ESDI), Cakmakoglu said, ''our opinion about the ESDI has not changed. We do not accept the consultative mission offered to us. We want an active and satisfactory formula.''

Cakmakoglu added that the U.S. Secretary of Defense would come to Turkey on June 4, 2001.

[05] FOREIGN TRADE STATISTICS -2.5 BILLION U.S. DOLLARS GOODS EXPORTED AND 3.09 BILLION U.S. DOLLARS GOODS IMPORTED IN MARCH OF 2001

The State Institute of Statistics (DIE) said on Monday that the exports increased by 8.6 percent compared to same period last year while the imports decreased by 25.6 percent.

In the same period last year, Turkey exported 2 billion 316.9 million U.S. dollars of goods and imported products of 4 billion 164.0 million U.S. dollars.

The foreign trade deficit dropped 68.5 percent from 1 billion 847.1 million U.S. dollars to 583 million U.S. dollars in March of 2001.

The rate of exports meeting imports increased from 55.6 percent to 81.2 percent.

The realizations in foreign trade figures as of March 2000 and 2001 according to the DIE data are as follows: (million U.S. dollars)

. MARCH Difference

. 2000 2001 (percent)

. -------- ------- ---------
Exports 2,316.9 2,515.8 8.6

Imports 4,164.0 3,098.5 -25.6

Deficit -1,847.1 -582.6 -68.5

Rate of

Meeting (%) 55.6 81.2

[06] STATE MINISTER DERVIS FOR ECONOMY: -''STATE SHOULD USE ITS INSUFFICIENT SOURCES IN THE BEST WAY''

Addressing journalists following his meeting with Finance Minister Sumer Oral, Dervis said, ''the state should use its insufficient sources in the best way. If we extend support, we should extend it to section of the society having lowest income. A program having a social dimension is the basis of an economic program having social dimension. If we give a nonexistent source to everyone, this will lead Turkey to a more serious crisis. Such a crisis will be a stroke to the people having low income. Therefore, if we have a source, we should extend it to the social sections having low income.''

Dervis said that Turkey should follow a policy with social targets and social dimension.

[07] PRESIDENT DENKTAS OF TRNC DESIGNATES EROGLU TO FORM NEW GOVERNMENT (2) -TRNC EROGLU SAYS THEY WILL FORM COALITION GOVERNMENT AS SOON AS POSSIBLE

Speaking to reporters after his meeting with Denktas, Eroglu said that ''we will start our studies to set up the coalition. We will firstly meet with the Democrat Party (DP), the main opposition party. The impression we got till today shows that DP has the intent to join a possible coalition. We will discuss the issue and we will launch efforts to found the coalition.''

Upon a question asking when the coalition would be set up, Eroglu said that this process depends on talks, adding that he has 15 days and he has to submit the list of the cabinet to the President within this period. Eroglu said that there is no need for the alternative of a tripartite coalition.

Noting that there are economic difficulties in the country, Eroglu said that the country's having no government for a long time is not the interest to the country and to the parties which will found the coalition. Eroglu said that they will try to found the coalition in a short period of time.

Eroglu said that he will form today a delegation to be composed of 3-4 persons to carry out the coalition talks, adding that he will try to reach a consenses after talking with DP leader Salih Cosar on the phone.

Referring to the elections held in the Greek Cypriot side on Sunday, Eroglu said that the communist AKEL party became the first and the Democratic Mobilization Party came the second. Eroglu pointed out that people should not pay attention to the words saying that leftist parties are in favour of peace, adding that ''it is seen that those who couldn't digest the Turkish existance in Cyprus and who want to have the whole Cyprus are respected in the South Cyprus. Our people have to see these realities.''

DP leader Salih Cosar said in his part after his meeting with Denktas that he wishes the government to be set up as soon as possible. Cosar said that it seems possible that the biggest parties in the TRNC namely UBP and DP would found coalition in TRNC.

Leader of the Communal Liberation Party (TKP) and deputy premier said in his part that the government won't be able to find solutions to the problems.

[08] COTTARELLI:''FLOATIONG FOREIGN CURRENCY REGIME WOULD NOT MAINTAIN ACCOUNTIBILITY ON ITS OWN''

Cottarelli, during an exclusive interview with the A.A on Monday, said that the previous foreign currency regime which had the crawling peg had an accountability. He said that the current system would help to bring down the interest rates but it could have high costs if measures aren't taken against unexpected economic developments.

Floating foreign currency regime would not bring realibility on its own and the Central Bank's independent control over the monetary policy would not suffice to bring reliability, Cottarelli said and added that a stronger economic policy than the previous one should be followed to bring down the interest rates and convince the money markets. He also remarked that the measures taken by the Turkish authorities in the last few months are showing that they are on the right track.

Explaining the reasons for the failure of the previous program, Cottarelli said the program started with strongly by the end of 1999 which led to a fast decrease in interest rates. However, he said the program was negatively affected when the oil prices were trippled resulting in inflation and current account deficit. Besides, the increase in international interest rates also contributed to the failure of the program, he added.

Cottarelli said, although it sounds illogical, the program was negatively affected by its own sucess. ''The fast drop in interest rates increased the domestic demand too much. During this period, the economy started over heating. We had drawn attention to this situation in the summer of 2000. The decreasing inflation and the increasing production made everybody believe that the program was completed with success. This wrong impression prevented some urgent and necessary regulations. A number of structural measures especially in banking and privatization were not enforced,'' he explained.

Cottarelli indicated that the inflation targeting was something that could be done in stages. ''The Turkish government changed the Central Bank Law as the first step of these stages. It is up to the Turkish authorities when to swith to this targeting,'' he commented. ''My personal view on the matter is that the priority in the inflation targeting is that people should become aware of the meaning of the inflation targeting and the independency of the Central Bank.''

''The government authorities are still working on the loan swap and the IMF experts will also attend these meetings in the coming weeks. The swap is aiming to lengthen the maturity term of Turkey's loans but of course the conditions of the swap are important,'' he said.

About the statistics used in the calculation of inflation, Cottarelli said the indexes should be renewed and that the State Statistics Institute should revise its statistics methods.

Cottarelli refrained from making a comment on when the international rating organizations would increase Turkey's credit note but he said that the additional financial resource given to Turkey's economic program was a demonstration of trust by the international community towards Turkey. He also pointed out that the money Turkey received from the IMF was the highest amount given to a member country in relation to its Gross National Product. Cottarelli emphasized that the program was prepared by the Turkish officials.

Answering a question on IMF bureau in Ankara, Cottarelli said the bureau was contributing to Turkey-IMF relations and that the bureau would stay open as long as the Turkish officials believe that this bureau is beneficial.

Since he joined the IMF in 1988, Cottarelli worked for Italy, Portugal, the former Soviet Union, Albania, Greece, Tajikistan, Finland, Hungary and Turkey (end of 1998 to May 2001). Cottarelli was appointed to IMF Europe 1st region deputy chairmanship last week.

[09] ECEVIT ASSESSES THE GOVERMENT'S PERFORMANCE IN LAST TWO YEARS (1) - ''THE GOVERNMENT STARTED REFORMS WHICH WENT NEGLECTED FOR MANY YEARS''

neglected for many years. ''Our government will continue its harmonious and determined activities in every field like it has done so far,'' Ecevit said.

During a press conference on Monday, Ecevit briefed the reporters on the activities of the 57th government which was set up two years ago.

The prime minister said the government implemented the economic program without any diversion from its course and it would speed up the steps taken for Turkey's EU membership.

''The terrorism suffered a heavy blow,'' Ecevit said and remarked that the economic and social development in South East and East Anatolia regions would increase.

''We'll increase our pace towards a developed, free and democratic Turkey, '' Ecevit said.

[10] PREMIER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (2) -ECEVIT SAYS 285 LAWS WERE ADOPTED IN TWO YEARS

''This is a success which was not seen in our country and even in the world before,'' said Ecevit adding that the government started its work two years ago and decided to be the government of compromise and progress. Noting that the government proved that by the activities it undertook in the last two years, Ecevit said that the culture of coalition developed in Turkey in the recent years.

The government attributed importance to having dialogue with the parliament, opposition parties and sections of the society, said Ecevit and pointed out that the government has always been in search for a compromise. Ecevit said that as a result of that the government has developed sound solutions about many problems of the country.

''Programmes were prepared to improve the economic and social structure of the country and they were put into application. Important progress was recorded in the security field, foreign policy, and in fight with corruption. A total of 285 laws were adopted in two years till May 23, 2001; this is the success of the government and the parliament which worked very fast. There are many regulations among the laws which have the character of reform in the fields of economy, democratization, human rights and social rights,'' he added.

[11] SCOTTISH TOURIST FOUND DEAD IN HOTEL ROOM IN MARMARIS

The dead body of Mc Kengan, who stayed in the hotel with his son James Mc Keagan, was found by cleaners.

An investigation has been launched into the incident.

[12] PRIME MINISTER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (3)

Assessing his government's performance in the last two years, Ecevit said the government had significant accomplishments against the separatist, anti- secularist and anti-democratic forces and that it also unveiled a number of unclarified murders.

Pointing to the terrorist organization PKK which caused great suffering to the Turkish people for 15 years, Ecevit said Turkey gained respectibility in the international platform by giving terrorist chief Ocalan a fair trial. The government is also acting cautious against the PKK's efforts to become political, he said. Ecevit remarked that there were intensive efforts to start economic and social development in South Eastern and Eastern Anatolia which suffered most from the terrorist organization.

''The efforts already increased to bring education and health services to South Eastern and Eastern Anatolia. Villagers started returning to their villages and forming of village-cities and central villages has begun. This way the villages will be able to do farming and cattle breeding more easily and industrial facilities will be set up to process local products. The places which remained closed to cattle breeding for years are starting to give service again,'' he said.

During the last two years, Ecevit said the government cracked down on the organizations which are working to topple the constitutional system and found a state according to Islamic laws. He indicated that during the operations carried out against the terrorist organization Hezbollah, many top officials of the organization were caught with significant amounts of ammunition and some other similar organizations also suffered losses during these operations.

The prime minister also remarked that the government also passed a law against organized crime organizations.

Speaking about the activities carried out in democratization and the development of human rights, Ecevit listed the following points:

-A constitutional amendment was passed to make the State Security Courts civilian court.

-Heavy punishments were brought to those who are involved in organized crime organizations. New measures were imposed to follow and catch the criminals.

-The party closures became more difficult through an amendment.

-Heavy punishments were brought through the Penal Code against public officers who use torture during interrogations of suspects.

-The Repentance Law was revised to encourage terrorists to surrender to security forces and give information about their organizations.

-A series of changes were made in the law to help the families of those who die or who are injured during fight with terrorists.

-The punishments given for crimes that were committed through press or broadcast were postponed.

-Disciplinary punishments of civil servants and other public officials were cancelled.

-The trial of civil servants made easier and faster.

-Other than a number of crimes which are excluded, the death penalties given for crimes committed before April 23, 1999 were cancelled and ten years were deducted from the prison sentences.

-A Human Rights Directorate was founded in the Prime Ministry. A Human Rights Higher Council and a Human Rights Advisory Council were also set up.

-A law was passed to allow inmates to participate in educative programs as well as rehabilitation, sports and other cultural activities.

Ecevit said the government carried out a big operation in December of 2000 to solve Turkey's prisons problem which became an embarrasment for the state throughout the years. He said the prisons stopped being headquarters for terrorist organizations after this operation. The prime minister indicated that the opening of F-type prisons ended the dorm system in old prisons and also allowed the prisoners to participate in social activities in prisons.

The Parliament Justice Commission approved a bill which proposes to modernize the Turkish Civil Code and the Justice Ministry is continuing preparations in this respect, Ecevit said.

The prime ministry stated that they formed a dialogue with the political parties in Parliament to amend a number of articles in the Constitution. He added that a comprehensive judicial reform was on the government's priority list.

[13] PREMIER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (4)

Holding a press briefing at the beginning of the cabinet meeting, Ecevit assessed the government's performance in the last two years.

Ecevit said that the Turkish economy had certain rooted changes in the last 20 years, adding that the closed economy has opened to the world and important developments took place in various sectors.

Stressing that problems of high inflation, high interest rate, high public deficits continue in the country, Ecevit said that many structural problems which caused macroeconomic imbalances have been left unsolved for years.

''The increasing public deficits, and meeting them by debts with high real interests have worsened the problems. Our economy has entered into a general recovery period starting from the second half of 1997, the inflation started to decrease from 90 percent to 50 percent and investments started to speed up. However, the crises in the world particularly the Russian crisis negatively affected the Turkish economy. Economy started to shrink as of the beginning of 1999 and the massive earthquakes hit a severe blow on the economy. Moreover, the world oil prices increased significantly, '' Ecevit said.

Noting that the government started to implement a comprehensive programme to decrease the inflation, to reconstruct the economy and to form a stable growth atmosphere as of the beginning of 2000, Ecevit said that the programme foresaw the implementation of a strict financial policy, undertaking of comprehensive structural reforms and earlier announcement of the foreign exchange rate in line with the targetted inflation rate.

The things done by the government in the fields of structural reforms and regulations are as follows:

-The banking reform was undertaken. The government aimed to have a sound banking system by the foundation of the Banking Regulationn and Inspection Council and by taking other measures.

-Measures were taken to provide the balance between the social security reform and the social security system. Unemployment insurance was set up for the first time and regulations concerning the system of individual retirement system were put into force.

-Measures were taken against unfair competetion in importation. Regulations were made in the tax field. International arbitratiton law was adopted.

-Radical changes were taken in customs laws, and the EU laws were abided. The capital market administration became modern, autonomous and effective by the adoption of the capital market law.

-A majority of the funds were lifted to bring discipline and transparency to the public finance.

-Turkish Telecom was foreseen to serve as a private institution. An institution under the name of Telecommunication Board was founded. A law was adopted to increase the rents by 25 percent at most in 2000 and by 10 percent at most in 2001. The council of reconstructing and supporting agriculture was founded. The direct income support system was adopted in the agriculture system.

-The law on organized industry zones were adopted.

[14] PRIME MINISTER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (5)

''It is seen that positive developments have already been recorded in this way,'' said Ecevit and noted that a temporary shrinkage has been witnessed in the economy.

''The economy will start to grow in the second half of the year with the improvement achieved in the competition power and by the implementation of the economic programme,'' said Ecevit and noted that the increase expected in exports will contribute to the revival in the economy.

Recounting that the letter of intent was accepted by the IMF on May 15, 2001, Premier Ecevit said that ''totally 17,9 billion dollars of credit have been provided, its 14,6 billion dollars will be met by the IMF and its 3,3 billion dollars will be met by the World Bank. The date of maturity of the loans that will be provided from the IMF is 18 months and five years and the loan that will be provided from the World Bank is 10-17 years.

The interest rate of the loans is LIBOR plus 2. The government's getting these loans is the result of the trust of international instutitions in the government.

Ecevit said that the government aims at decreasing the inflation, sustaining a stable growth and forming a fair social structure in the society in the middle-term. Noting that the rooted and permanent measures are being taken to increase the producivity in public services, Ecevit said that the inflation increased to the amendment made in the foreign exchange morel.

According to the statements of Ecevit, here are the laws adopted by the government in the last two years:

-Laws were adopted to reconstruct the state banks which will enable their being privatized.

-Investment opportunity has been provided to native and foreign enterpreneurs in production of alcoholic drinks.

-A law was adopted to increase the productivity in animal husbandry.

-Successful results were taken in privatization of Turkish Petroleum Inc. and mobile telephone sales.

Ecevit said that two economic crises took place due to the lack of liquidity in November, 2000 and due to the balance of payments system's coming to a deadlock in February, this year.

-The law which brought full autonomy to the Central Bank was put into force.

-All cabinet decisions which led to the duty losses of Ziraat Bank and Halk Bank were annuled.

-The capital of state banks is being brought to a sufficient level.

-The administration of state banks has been transferred to a joint admiinstration council.

-Effective and comprehensive measures are being taken to solve the problems of the banks in the Savings Deposit Insurance Fund, in short term.

-Efforts are underway to strengthen the private banks which were adversely affected from the developments.

Ecevit said that eight of the fifteen laws which were foreseen to be adopted, have been adopted and put into practice as soon as possible due to the hard working of the government and the parliament. ''One of the remaining laws was adopted in the parliament and submitted to the President, ''he noted.

Ecevit said that the basic aim of the new economic programme which was announced with the name of ''Transition to Powerful Economy'' is to bring stability and security and to reconstruct the public administration and economy.

(to be continued)

[15] PRIME MINISTER ECEVIT ASSSESSES THE GOVERNMENT'S PERFORMANCE IN THE LAST TWO YEARS (6)

''The number of female students in elementary schools increased 14 percent in cities and 23 percent in villages. The number of female students in sixth, seventh and eighth grades increased by 51 percent. Giving everyone equal chances in education and increasing the number of female students in schools was a big progress. Now our next goal is to increase the mandatory education to 11 years,'' he said.

Ecevit said the goverment limited greatly the influence of anti-secular organizations on education and the state took control of the dormitories which were managed by these organizations. ''Koran classes were saved from the hands of anti-secular forces and the headscarf problem was solved to a great deal,'' he added.

Speaking about the village-cities project, the prime minister said many villagers will have the chance to benefit from education and health services which will be united through this project.

Ecevit said that the collective bargaining agreements for 450,000 public workers were finalized in a positive and peaceful environment, 47,000 temporary workers were given permament posts bringing a solution to the problem of temporary workers which existed for years.

Ecevit listed other activities of the government as follows:

-Short term military service in exchange of money was started in an effort to obtain financial contribution to the efforts to heal the wounds of the earthquake.

-Pensions of veterans who fought in the War of Independence were increased.

-Health services were supported by the new posts opened at the Health Ministry and the Social Security Authority (SSK).

-Poor people were provided financial aid and services.

-Over 500 trillion TL was spent from the Social Solidarity Fund for handicapped people and for programs to give professional training and create employment.

-Educational grants were given to 224,000 university students while poor students were given free books, stationary and similar equipment.

-A total of 74,000 people were given employment through a series of projects.

-The number and quality of institutions giving social services increased.

-A number of measures were taken to make legal processes quicker and more efficient. Changes were made in laws regarding lawyers and public noteries.

-The Copyright Law was revised according to today's conditions and international agreements. Punishments were increased to protect the copyright owners.

-Favoritism was prevented by starting a Central Testing and Placement Sytem in the employment of civil servants and public workers.

-Certain rules were imposed in promotions in public offices.

-A law was passed regarging the awards given to athletes and sports clubs which display extraordinary performance in international sports contests.

[16] PREMIER ECEVIT ASSESSES GOVERNMENT'S PERFORMANCE IN LAST TWO YEARS (7)

Ecevit said that 18,243 persons died and 48,901 citizens were injured in the two earthquake which took place in the country in 1999.

Noting that 379,000 buildings, including 330,000 houses and 49,000 offices were damaged in the earthquakes, Ecevit said that ''it is not easy to return to the normal life after such a big disaster.''

Totally 162 tent-cities were set up and 165,618 tents were sent to the quake-hit regions, said Ecevit and noted that 44,107 prefabricated buildings were erected in the region. The Ministry of Public Works and Housing spent 128,5 trillion liras for the prefabricated huts. Ecevit said 42,587 permanent dwellings are being constructed and 23,162 of them have finished and this number will increase to 37,672 till the end of June, 2001.

-Totally 2,730 classrooms were constructed in new schools built in the quake-hit region. Thus, a capacity for 81,900 students has been created.

-3,525 classrooms have been repaired in 528 schools.

-The construction of 166 schools continues.

-30 trillion liras were spent for the schools and classrooms built.

-The construction of 40 more schools having 1,500 classrooms have been planned in the region.

-Eight hospitals were founded and efforts are underway to construct 155 new health centres.

-The debts of quake victims have been postponed on May 31, 2001.

-Facilities were brought to the investors in the region.

-Totally 270,3 trillion liras were given to 414,74 quake victims from the Social Solidarity Fund till the end of 2000.

-According to the estimations of the Finance Ministry, expenditures in the quake-hit region haev reached 2,2 quadrillion liras as of the end of March, 2001.

-Turkey Emergency Situation Management Directorate General was founded to provide cordination and cooperation among public, private and voluntary institutons in cases of emergency in the country.

-Quake Insurance and Construction Inspection mechanism has been adopted.

-National Quake Council was adopted.

-The structure of the Red Crescent has been reviewed following the quake.

-Effective measures have been taken against floods and drought.

[17] PRIME MINISTER ECEVIT ASSESSES THE GOVERNMENT'S PERFORMANCE IN THE LAST TWO YEARS (8)

During a press conference on Monday where he assessed the government's performance in the last two years, Ecevit said that the meeting held in Helsinki in December of 1999 was an important point of return in Turkey's relations with the EU. He said full EU membership was among the most important foreign policy targets of Turkey which participated in several European institutions since the foundation of the Republic. He also indicated that Turkey was treated unfairly at the Luxembourg Summit in 1997. ''The Turkish government announced on Dec. 14, 1997 that it would not enter political dialogue with the EU which the EU is putting forward as a pre-condition as long as this unfair treatment continues against Turkey. As a result of this determined attitude, the EU realized its mistake and changed its position. The Helsinki Summit changed the dimensions and the content of Turkey's relations with the EU. An EU General Secretariat was set up and Turkey announced its national program,'' he explained.

Speaking about the ESDI, the prime minister stressed that Turkey must have a say in the development and implementation of ESDI due to its significant contributions in Europe's security and defense. ''Turkey must have full authority in the decision making, planning, preparation and implementation stages of ESDI,'' he asserted, adding that Turkey could not make any concessions on this matter.

About the Cyprus conflict, the prime minister called it ''our national case'' and underlined that the government's determined position regarding Cyprus would continue.

The Turkish side adopted a constructive attitude during the proximity talks which were started by the U.N. Secretary General, Ecevit said. He declared that the acceptance of the Greek Cypriot Administration to the EU as a full member would yield very negative results if this takes place before a solution is brought to the Cyprus conflict. ''No point could be reached by ignoring the fact that the TRNC is an independent state,'' he said.

Speaking about Turkish-Greek relations which started improving during his administration, Ecevit said he believed the dialogue between the two nations would help to solve certain important problems.

The prime minister said Turkey's relations with a number of countries in Central Asia, Caucasia, Black Sea, Balkans and the Middle East were developing and that the Baku-Tbilisi-Ceyhan pipeline increased Turkey's strategic importance greatly. He also remarked that Turkey's joining to G- 20s was a solid demonstration of the level Turkey reached internationally.

(END)

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