Anadolu Agency: News in English, 01-05-30

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ANADOLU AGENCY

NEWS

30 MAY 2001 Wednesday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] U.S. SECRETARY OF DEFENSE RUMSFELD TO PAY HIS FIRST EXTERNAL VISIT TO TURKEY ON JUNE 4

[03] DEPUTY PRIME MINISTER BAHCELI DUE TO GERMANY AND FRANCE

[04] FIRST EDITION OF INTERNATIONAL AFFAIRS AND HISTORY PERIODICAL ''ARMENIAN RESEARCHES'' PUBLISHED

[05] SCHRODER SALOMON SMITH BARNEY: ''WE EXPECT SHORTER MATURITIES IN TREASURY BORROWING PROGRAM FOR JUNE''

[06] CASA PLANES -NATIONAL DEFENSE MINISTER CAKMAKOGLU SAYS GENERAL STAFF'S STATEMENT IS CLEAR AND IT IS UP TO PUBLIC OPINION TO EVALUATE IT

[07] POLICEMAN WHO WAS SERIOUSLY INJURED IN SUNDAY'S ARMED CLASH IN BATMAN, DIES

[08] JUSTICE MINISTER TURK LEAVES FOR NETHERLANDS

[09] TURKISH-ALBANIAN SOLIDARITY ASSOCIATION CHAIRMAN METIN: ''WE WANT TO SEE THE WAR END IN MACEDONIA''

[10] NATO FOREIGN MINISTERS' SPRING TERM MEETING -NATO SECRETARY GENERAL ROBERTSON: -''THERE ARE POSITIVE DEVELOPMENTS ABOUT TURKEY ON THE ISSUE OF ESDP''

[11] NAZIM HIKMET TO BE REMEMBERED IN ESKISEHIR

[12] TURKISH TOURISTS WHO WILL TRAVEL TO RUSSIA HAVE TO DECLARE CASH OVER 1, 500 U.S. DOLLARS

[13] FOREIGN MINISTRY WARNS CITIZENS WHO WILL PROCEED TO CHINA FROM HONG KONG

[14] STATE MINISTER DERVIS: -''NEW ARRANGEMENT ABOUT STATE BANKS IS A VERY IMPORTANT REFORM FOR TURKEY''

[15] DERVIS:''TURKEY IS FACING A SERIOUS DEBT PROBLEM''

[16] DERVIS:''WE WILL CORRECT CERTAIN ASPECTS OF THE PROGRAM

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

GENERAL STAFF: CASA PLANES ARE SAFE
General Staff said that there had not been any systematic mistake in production program of the CASA planes three of which crashed in last four months, killing 38 soldiers and 3 Spanish citizens. Noting that a systematical scientific process was followed in determination and purchase of the Turkish Armed Forces' requirements, it said that a total of 254 criteria had been reviewed in purchase of CASA planes. General Staff added that flights of CASA planes belonging to the Turkish Armed Forces continued without any restriction as it was before.

4.7 JOLTS ERZURUM
Eastern province of Erzurum and its surroundings were rocked by an earthquake measuring 4.7 on the Richter scale on 16:14 hours yesterday and six aftershocks. In these quakes, eight houses in city center and five villages collapsed and more than 80 houses suffered heavy damage. Residents erected tents in their gardens and spent the night on streets.

MILLIYET (LIBERAL)

DOUBLE REPROACH FROM GENERAL
Before yesterday's National Security Council (NSC) meeting, Gendarme Commander General Aytac Yalman asked Interior Minister Sadettin Tantan, ''why do you still remain silent? Why don't you give response to those who criticize the Gendarme?''. Tantan said, ''you can't even imagine the situation.'' And when the NSC meeting started, General Yalman reproached Prime Minister Bulent Ecevit who had said that Gendarme raids into public institutions were not suitable. Yalman said that he couldn't understand those words and he condemned such an unfortunate statement. Yalman said, ''we totally act upon instructions of prosecutors.'' But Prime Minister Ecevit did not say anything.

SABAH (LIBERAL)

HAGI FACES 4-YEAR IN PRISON PUNISHMENT
Romania's world-wide famous international football player George Hagi who bade farewell to soccer after playing for Galatasaray for five football seasons couldn't save himself from the case filed against him on charges of insulting Turkish referee Erol Ersoy. The Prosecutor sought imprisonment terms up to 4 years and 2 monts.

DAUM TO BE TRIED ON CHARGES OF USING COCAINE
German prosecutor denounced Besiktas coach Christoph Daum of Germany who confessed that he had used cocaine and the legal process started.

CUMHURIYET (LEFT)

ERZURUM ROCKED FOR TWO TIMES
Two earthquakes measuring 4.8 and 4.5 on the Richter scale happened in eastern province of Erzurum. The epicenter of these quakes was between Erzurum and its Pasinler township. Three people were injured and more than 70 houses suffered damage.

RADIKAL (LEFT)

BARGAINING ON ESDI
Foreign Ministern Ismail Cem insisted on his opposition to the foreseen EU Army's accession to NATO facilities but gave the signal of compromise after pressure.

NO LENDING TO STATE
Treasury's net borrowing remained at a minimal 5.6 trillion Turkish lira (TL) through a 13-month bond auction yesterday. Nominal sale stood at 10.6 trillion TL versus bids amounting to 154.1 trillion TL. The compound annual yield was seen at 79.98 percent.

TURKIYE (RIGHT)

CYPRUS WARNING
National Security Council said, ''it is out of question to return to the dark period before 1974 in Cyprus. We never turn blind eye to a fait accompli in the island. Greek Cypriot side's unilateral membership to the EU deepens the division in the island. Greek Cypriots' desire for a single state is the main reason for the question.''

4.6 PANIC IN ERZURUM
Two earthquakes measuring 4.6 and 4.5 on the richter scale in Erzurum were also felt in surrounding cities. Two people were injured.

ZAMAN (CONSERVATIVE)

78 PERCENT OF TAX COLLECTION SPENT ON INTEREST PAYMENTS
Finance Minister Sumer Oral confessed that Turkey was paying 78 Turkish lira of every 100 TL of tax revenues on interest payments.

[02] U.S. SECRETARY OF DEFENSE RUMSFELD TO PAY HIS FIRST EXTERNAL VISIT TO TURKEY ON JUNE 4

Sources in Washington D.C. told the A.A correspondent that Rumsfeld was expected to bring especially the ESDI and Iraq issues on the agenda of his contacts in Ankara.

Also the situation in the Balkans and Caucasus and United States' missile defense system were expected to be discussed during Rumsfeld's contacts, sources said.

Recalling that U.S. Secretary of State Colin Powell had sent Assistant Secretary of State James Dobbins at the weekend to Turkey to try to solve a dispute between Turkey and the European Union (EU) about ESDI issue, sources said that it was a preparatory visit regarding the ESDI issue before Rumsfeld's visit to Turkey.

Diplomatic sources in Washington D.C. said that Turkey absolutely wants to participate both in decision-making mechanism and initiative in case of eruption of a crisis which concerns its national interests even if the European force does not ''make use of NATO facilities''.

Giving Cyprus and Upper Karabakh as an example, sources stressed that Turkey will feel uneasy about deployment of European force in these regions due to any reason without NATO intervention.

Sources said that Turkey was seeking another guarantee within framework of the ESDI in addition to the Amsterdam agreement which foresees that NATO force can't intervene in disputes between or among NATO allies.

The Secretary Defense of the U.S. which is trying to make Turkey and the EU to reach a compromise could propose ''U.S. guarantee'' to Turkey, sources said.

Turkey which is tried to be excluded from European force initiative as it is not a EU member, raises objections to EU accession to NATO facilities.

Washington does have influence over European force as ESDI will continue to feel the need for United States' information, command-control and air transportation facilities in the future.

U.S. Secretary of Defense Rumsfeld will attend South Eastern Europe defense ministers' meeting in Salonica on June 5-6 after wrapping up his contacts in Ankara.

[03] DEPUTY PRIME MINISTER BAHCELI DUE TO GERMANY AND FRANCE

Deputy Prime Ministry said on Wednesday that Bahceli would leave for Frankfurt, Germany on May 31.

After wrapping up his contacts in Germany, Bahceli would proceed to France to hold a series of contacts, it said.

Bahceli who would return back to Germany after his contacts in France would arrive in Ankara on June 5, it added.

[04] FIRST EDITION OF INTERNATIONAL AFFAIRS AND HISTORY PERIODICAL ''ARMENIAN RESEARCHES'' PUBLISHED

The first edition of the periodical which will be published by the Eurasia One Foundation Armenian Studies Institute, includes opinions and researches of Turkish and foreign scientists and experts about the Armenian issue.

The preface was written by Eurasia Strategical Researches Center Chairman Prof. Dr. Umit Ozdag.

In the first edition, Armenian Stduies Institute Chairman and retired ambassador Omer Lutem stresses that intense developments occurred regarding the Armenian issue in the first four months of 2001 and makes comments on these developments.

The other articles in the first edition and their writers are as follows:

-Let The Historians Decide (History Professor Justin McCarthy from Louisville University)

-Armenian Problem (retired ambassador Dr. Sukru Elekdag)

-Project on Foundation of Greater Armenia (Inonu University Science and Literature Faculty History Depurtment Chairman Prof. Dr. Salim Cohce)

-About Historical Origin of Armenian Trouble (retired ambassador Dr. Bilal Simsir)

-''Unnoticed'' Psychological Dimension of Armenian Issue (Numune Hospital Psychiatry Clinic Director Dr. Erol Goka)

-Armenian Lobby: Formation of Armenian Diaspora in U.S. and Lobbying Activities (assistant to professor Senol Kantarci from Erzurum University).

[05] SCHRODER SALOMON SMITH BARNEY: ''WE EXPECT SHORTER MATURITIES IN TREASURY BORROWING PROGRAM FOR JUNE''

In an analysis, SSSB said that Treasury could raise only 5.6 trillion Turkish lira through yesterday's 13-month bond auction and this stemmed from troubles in grains purchase prices.

Recalling that Treasury would announce on Thursday its borrowing program for June, analysis said that SSSB expected shorter maturities and less amount of bond auctions.

Meanwhile, it stated that Central Bank would continue to use the opportunities to reduce interest rates.

[06] CASA PLANES -NATIONAL DEFENSE MINISTER CAKMAKOGLU SAYS GENERAL STAFF'S STATEMENT IS CLEAR AND IT IS UP TO PUBLIC OPINION TO EVALUATE IT

Responding to questions of journalists after the First International Space Symposium, Cakmakoglu said that he could not give information about the technical dimensions of the issue of CASA planes, but all the planes have periodical upkeep before take off. After the plane accidents, all of the planes have been examined once again, he said.

Upon a question asking when the investigation about the accidents would finish, Cakmakoglu said that ''it is understood from the statement that an important part of the investigation has been concluded.''

[07] POLICEMAN WHO WAS SERIOUSLY INJURED IN SUNDAY'S ARMED CLASH IN BATMAN, DIES

Clash had erupted when a member of the terrorist Hezbollah organization opened fire on a police vehicle patrolling in Bahcelievler neighborhood of Batman. While the member of Hezbollah was killed in the clash, two policemen were injured.

Kara, 32, had been brought to Ankara by a military plane.

He could not be saved despite the efforts.

[08] JUSTICE MINISTER TURK LEAVES FOR NETHERLANDS

Addressing journalists at Istanbul's Ataturk Airport prior to his departure, Turk said that the first global forum was held in Washington D.C., the U.S., in 1999.

He said, ''the second forum which started in the Hague on May 28 aimed at drawing the attention of international community to importance of struggle against corruption and developing concrete strategies to struggle against corruption.''

Noting that he would attend the forum upon the invitation of the Dutch Justice Minister A. H. Korthals, Turk told reporters, ''a special session will be held on Thursday within the framework of the forum on the ministerial level. Queen Beatrix of the Netherlands, three vice presidents and nearly 100 ministers are expected to attend the session.''

''Corruption became a crime that can be committed in different countries by citizens of various countries in international relations network of today's global world. This crime can include multinational companies. Countries efforts on their own are not adequate to struggle against global corruption. Therefore, such a struggle can only be achieved through international cooperation. An effective struggle against corruption became the prior duties of all states. I believe that the forum in the Hague would be an important milestone for this international cooperation,'' he told reporters.

Noting that he would deliver a speech at tomorrow's session, Turk said, ''I will explain Turkey's views and efforts on the issue of Struggle against Corruption. Turkey is ready to fulfil its responsibilities to participate actively in such an international cooperation against corruption.''

''At the end of the forum, a final statement including necessary national, regional and international measures, and legal and administrative arrangements for struggle against corruption in globalizing world is expected to be signed,'' he said.

Turk noted that he would hold bilateral talks with justice ministers of certain countries during the forum.

Turk is expected to return to Turkey on Friday.

[09] TURKISH-ALBANIAN SOLIDARITY ASSOCIATION CHAIRMAN METIN: ''WE WANT TO SEE THE WAR END IN MACEDONIA''

Speaking at a press conference on Wednesday, Metin said that Macedonians insist on not allowing other groups to survive and that Albanians tried peaceful ways for long years to protect their rights. He also remarked that Albanian political party representatives and radical groups recognized Macedonia's territorial integrity. ''The Albanians' fight is not separatist, it is a fight of the Muslims to have equal rights with Slav Macedonians,'' he said.

Metin indicated that Macedonian forces bombed villages, destroyed houses and mosques of Albanians and killed civilians on pretext of destroying radical groups. He also said people were forced to immigrate and faced hunger during this process.

He said Turks and Albanians constitute 40 percent of the Macedonian population and therefore they should have equal right in public administration. He called on the Turkish Foreign Ministry to be more active in the region. ''We want the war end and a sustainable solution to be brought at the negotiation table,'' he said.

[10] NATO FOREIGN MINISTERS' SPRING TERM MEETING -NATO SECRETARY GENERAL ROBERTSON: -''THERE ARE POSITIVE DEVELOPMENTS ABOUT TURKEY ON THE ISSUE OF ESDP''

Speaking at the NATO Foreign Ministers' spring term meeting in Hungarian capital Budapest, Robertson said that there had been not an official result at the meeting yet.

He expressed his hope over recording progress in the negotiations soon.

Foreign Minister Ismail Cem is in attendance at the meeting.

[11] NAZIM HIKMET TO BE REMEMBERED IN ESKISEHIR

Dogancayir Mayor Kemal Ulukoca said he was not interested in the politicized discussions about the poet but all they wanted was to hold a cultural activity on June 3, Sunday to fulfill the poet's last wishes.

Many poets, writers, teachers and students of literature will attend the activity. Ulukoca said they wanted to continue this activity also in the coming years.

[12] TURKISH TOURISTS WHO WILL TRAVEL TO RUSSIA HAVE TO DECLARE CASH OVER 1, 500 U.S. DOLLARS

''All foreigners entering Russia have to fill a declaration form for the cash over 1,500 U.S. dollars or any foreign currency equivalent to that amount,'' the ministry said. The ministry also remarked that if the passenger fails to do so, he might be detained by Russian customs officials while leaving the country if the officials find the undeclared cash on him. The money will also be confiscated in such as case.

''Therefore, all Turkish citizens who will travel to Russia for tourism, education or business purposes must pay attention to this point in order to prevent undesirable consequences,'' the ministry said.

[13] FOREIGN MINISTRY WARNS CITIZENS WHO WILL PROCEED TO CHINA FROM HONG KONG

Foreign Ministry said on Wednesday that citizens who proceed to China from Hong Kong have difficulty in getting visas from China, adding ''it will be better for Turkish citizens who plan to proceed to China to get the Chinese visas from the representations of China in Turkey before their trip.''

[14] STATE MINISTER DERVIS: -''NEW ARRANGEMENT ABOUT STATE BANKS IS A VERY IMPORTANT REFORM FOR TURKEY''

Speaking at a meeting at the Ankara Chamber of Industry, State Minister Dervis underlined importance of the issues of taxes and state banks.

Noting that there was an extraordinary duty loss at state banks, State Minister Dervis said, ''these duty losses cause a burden of more than 15 percent of the national income. Public banks have been serving as an instrument of development and a mechanism to support politicians for a long time. This has caused a burden of nearly 20 trillion Turkish liras.''

''When we look at the whole public balance, we see that finance policy has not been improved at all. We have managed to hide this fact from foreign sources. There has been a shrinkage in the budget. Foreign sources have continued to support us because we could hide the facts. But this fact has been unveiled last year and especially at the beginning of this year. Interests rates increased to extereme levels as a result of economic crisis. New arrangement about public banks is a very important reform for Turkey. We will, of course, experience some difficulties during this reform process aiming at making public banks an instrument which does not create any more damage,'' he said.

Dervis said that they brought a new principle for state banks, adding that particularly Ziraat Bank has important missions for the state.

Halk Bank has also very important mission for tradesmen, adding that ''let's allocate certain sources from the budget to these banks in a transparent and open way. We can't return back to the old system. I won't intervene with the Executive board of the state banks. They will act themselves within the framework of state policy.''

Dervis said that the issues have to be exemined carefully and less mistakes should be done, adding that there has to be distinction made between an enterprise which has certain problems in the short run like liquidity difficulty and enterprise whose lost their competition power and which works in a wrong way against the world economy in the long run. ''State has to help enterpreneurs which have problems in the short run, this will also help to the country's economy. Yet this has to be done within an understanding of banking,'' said Dervis. Dervis noted that there are changing factors in certain sectors like the one in textile. The state banks have to make this distinction between two administration styles well, he said.

Dervis stressed that administration of state banks is very difficult, adding that he will come together with the representatives of state bank administrators and hold meetings with them in the coming few weeks.

[15] DERVIS:''TURKEY IS FACING A SERIOUS DEBT PROBLEM''

During a meeting at Ankara Industry Chamber (ASO) on Wednesday, Dervis said Turkey's tax figures and public balance indicated serious problems. He said despite the positive developments in the 1980s, troubles emerged in the 1990s. The rate of the debts to national income was 28 percent in early 1990s, Dervis said. ''It rose to 60 percent in 1999. Unfortunatley, today it is 75 percent and Turkey is facing a very serious debt problem. We transferred the debts of the public banks to the budget but we couldn't transfer everything to the budget. For example, there are problems regarding municipalities. New debts are filing up. The situation is the same in energy. There is Treasury guarantee over many energy projects. We are facing the danger of piled-up debts.''

Dervis said a small section of the society pays high taxes. ''Therefore a lot of load is put on a small section of the society. Unregistered economy is developing outside of this. The unregistered economy has some positive aspects for the economy. Without this sector, Turkey couldn't have been in this position. We also have to accept that that reality. The tax and premiums should be decreased and collected from more people. This is really important and I think we all agree on this and there are no disagreements on this matter,'' he explained.

Stating that Turkey had to get a significant amount of additional sources from the IMF and World Bank, Dervis said the loan was taken at favorable conditions. He pointed out that the credit obtained from the IMF was libor plus two for four or five years and the credit obtained from the World Bank was libor plus two with a longer maturity term.

Dervis indicated Turkey had not yet received all the credit, but only the first tranche. He said ''the fire in the economy could be put out'' if Turkey receives the rest of the credit by the end of this year.

Dervis said that ''we improved the situation and reached a stability. Turkish government will pay its internal and external debts. Interest rates will reduce and we will reach the opportunity to deal with the main problems after installing the stability.''

Noting that it is not possible for the government to decrease the taxes for the moment, Dervis said that they will start to work about rearranging the Value Added Taxes (VAT), the tax sections and to solve the situation in Social Insurance Agency (SSK). ''We will try to solve these issues by undertaking a more serious work next year, but we don't have the chance to solve them now,'' said Dervis.

[16] DERVIS:''WE WILL CORRECT CERTAIN ASPECTS OF THE PROGRAM

ANKARA - State Minister in charge of economy Kemal Dervis has said that certain aspects of the economic program would be changed and corrected in time.

Speaking at a press conference at the Ankara Industry Chamber (ASO), Dervis said that structural shortcomings, macro economic problems and unbalanced monetary and foreign exchange markets were factors that led to the crisis. ''But I think there is no reason to be very pessimistic,'' he commented.

Pointing to the dynamism of the Turkish private sector, Dervis said the state was still strong. ''A market and private sector without a state means there is no assurance behind the private sector and it can't operate,'' he said.

Dervis also remarked that the Turkish bureaucrats employed at the Treasury and other state institutions were much more qualified than the world average which is a reason to look into future with more optimism.

''It is possible to overcome this accident,'' Dervis continued. ''But economy management is a whole and it requires coordination. Everything may not be possible. There could be some mistakes but we have to implement the program as a whole. If we succeed in one leg of the program but not in the other, the program could not succeed as a whole. This is very important.''

Dervis said the program should be supported and implemented especially in the next few months. ''The program might have certain shortcomings, no program is perfect. Some aspects of it were rushed because we had to rush, '' Dervis said.

After the program was announced, Dervis said that the Central Bank received a total of four billion U.S. dollars.''We'll correct certain parts of the program in time by discussing and also consulting to foreign sources. If we act reluctant and hesitate to implement some parts of the program, we would give an unreliable impression,'' he commented. Dervis said Turkey should be decisive for the program's success.

At the end of his speech, Dervis said a number of problems would continue for sometime, but by the end of summer, the economy would start growing and the export would increase. High foreign currency rates is not a good thing, but Turkey could have a good tourism season if the present currency rate is preserved, he said. If all these are achieved, Dervis said the Turkish economy could grow seven percent in 2001 and within the next decade Turkey could become one of the prosperous countries of the world offering good conditions to its people. ''And this will be possible through your power, production and enthusiasm,'' Dervis concluded.

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