Anadolu Agency: News in English, 01-07-24

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ANADOLU AGENCY

NEWS

24 JULY 2001 Tuesday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] EFFORTS UNDERWAY REGARDING IMF APPROVAL TO THIRD LOAN TRANCHE IN AUGUST

[03] IMF EUROPEAN I DEPARTMENT DIRECTOR DEPPLER: -''PREVIOUS PROGRAM WHICH FAILED, WAS TOO BRITTLE FOR TURKISH CONDITIONS''

[04] 78TH ANNIVERSARY OF LAUSANNE TREATY -PRESIDENT SEZER: ''LAUSANNE TREATY WAS ONE OF THE IMPORTANT STEPS TAKEN TO FOUND INDEPENDENT AND MODERN REPUBLIC OF TURKEY BASED ON NATIONAL SOVEREIGNTY''

[05] FOREIGN AFFAIRS MINISTRY: -''OPINIONS WHICH WERE PUT FORWARD IN G-8 JOINT DECLARATION TOWARDS SOLUTION OF CYPRUS QUESTION, ARE NOT BASED ON APPROVAL OF SIDES IN CYPRUS''

[06] ECEVIT: ''LAUSANNE TREATY DREW OUR NATIONAL BORDERS AND CONFIRMED TURKEY'S INDEPENDENCE AND SOVEREIGNTY''

[07] SYRIAN DEPUTY FOREIGN MINISTER NASSER TO VISIT ANKARA

[08] WATER NEGOTIATIONS BETWEEN TURKEY AND ISRAEL CONTINUES

[09] ECEVIT SAYS ECONOMIC PROGRAMME WILL CERTAINLY REACH SUCCESS

[10] MAJOR GENERAL KIVRIKOGLU: ''THESE EXERCISES SHOW THAT THERE ARE NO MILITARY BORDERS LEFT BETWEEN TURKEY AND BULGARIA''

[11] REFORMISTS TO FOUND THEIR PARTY NEXT WEEK

[12] IRAQI OIL MINISTER RASHID ARRIVES IN ANKARA

[13] PRIME MINISTER ECEVIT RECEIVES IRAQI OIL MINISTER RASHID

[14] GREEK DEFENSE MINISTER TSOKHATZOPOULOS TO VISIT TURKEY IN SEPTEMBER

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

FIRST DAY, FIRST RESIGNATION
Ali Sezal, a deputy of the Felicity Party (SP) from Kahramanmaras province, resigned from his party. Sezal is expected to join reformist wing of the outlawed Virtue Party (FP). SP Leader Recai Kutan said that they did not expect any other resignation from the party which was founded last week. After resignation of Sezal, number of SP deputies decreased to 50. Number of deputies who joined reformists headed by former Istanbul Mayor Recep Tayyip Erdogan increased to 55.

34,506 TOURISTS ARRIVE IN ANTALYA IN A DAY
Southern province of Antalya broke a new record in tourism sector. A total of 177 planes carrying 34,506 tourists landed at Antalya Airport on Sunday. Number of foreign tourists coming to Turkey since the beginning of the year increased to 2,200,289. Germans accounted for 58 percent of whole foreign tourists. Austrian, Russian, Dutch and Israeli tourists followed Germans.

MILLIYET (LIBERAL)

MAMMA I TURCHI
Parliamentary Human Rights Inquiry Commission which has been ignoring human rights violations in Turkey, call Italians to account for death of a demonstrator in acts of violence during the G-8 Summit in Genoa. The Commission members who cannot complete their reports about people who lost their lives during last year's intervention in prisons, will go to Italy. Human Rights Provincial Councils Monitoring Sub-Commission Chairman Emre Kocaoglu said, ''we have been monitoring human rights in whole world. We will go to Italy to determine if there is responsibility of Italian security forces in the incidents.''

SABAH (LIBERAL)

NEW TARGETS FOR ECONOMIC PROGRAM
International Monetary Fund (IMF) First Deputy Managing Director Stanley Fischer will come to Turkey to hold a series of contacts. Meanwhile, the government revised the economic program's targets. Inflation figures for the year 2001 was increased from 57.6 percent to 66 percent in wholesale prices while it was increased from 52.2 percent to 58 percent in consumer prices.

TREASURY TO SELL 3-MONTH BONDS
Treasury will hold a tender today to sell 3-month (91-day) bonds. The value date of these bonds is July 25, 2001 and maturity is October 24, 2001. Treasury foresees minimum net 772 trillion Turkish liras (TL) borrowing. There won't be average sale in the tender in which single price system will be valid and the interest will be paid on October 24, 2001 and it will constitute basis for 2-year and 3-year state debenture bonds coupon payments. Treasury will repay 5 quadrillion 150 trillion TL in domestic borrowing in July.

CUMHURIYET (LEFT)

LAWSUIT FILED AGAINST TRANSITION INTO FOREIGN CURRENCY RATE REGIME
Lawyer Sedat Vural filed a lawsuit on Monday at the Council of State with the request of annulment of the Directore General of Central Bank's decesion for transition into floating foreign currency rate regime on February 19, 2001. Stressing that floating foreign currency rate regime was contrary to the Constitution, Vural said, ''the Central Bank is obliged to provide price stability, and to take necessary measures together with the government to protect Turkish lira's (TL) internal and external value. Following the transition into floating foreign currency rate regime, price stability could not be provided and TL's internal and external value could not be protected. All these developments reveal that Directorate General of Central Bank had clearly violated its own law.''

RADIKAL (LEFT)

NEW CADRE IN ENERGY
Zeki Cakan, the Energy Minister, dismissed Gokhan Yardim, the General Director of the state run oil pipeline company BOTAS, and Nadir Biyikoglu, the deputy General Director. Kenan Veziroglu was appointed as the acting general director.

TURKIYE (RIGHT)

ORAL: ''IMF SATISFIED WITH TURKEY'S EFFORTS''
Finance Minister Sumer Oral met with Juha Kahkonen, the Chief of Turkey Desk of International Monetary Fund (IMF). Following the meeting, Oral said, ''Kahkonen considered our finance and budget policy as successful. He said that Turkey was not expected to experience another problem till the end of the year.''

DERVIS: ''WE ARE IN A BETTER SITUATION THAN ARGENTINA AND BRAZIL''
State Minister Kemal Dervis for Economy said, ''we are in a better situation than countries such as Argentina and Brazil. Our foreign currency revenue will be higher than foreign currency expenses at the end of this year.'' State Minister Dervis met with State Minister and Deputy Prime Minister Husamettin Ozkan. Following the meeting, Dervis said that International Monetary Fund (IMF) First Deputy Managing Director Stanley Fischer will come to Turkey to hold a series of contacts. ''Not only Turkey, but also many countries like Argentina and Brazil have been experiencing economic crises. Due to shrinkage in foreign trade volume in the world, many countries having average income, face difficulties. In fact, we are in a better situation than these countries in regard to our foreign trade and our balance of payments. We do not have any problems in our balance of payments and our current account. Our foreign currency revenue will be higher than foreign currency expenses at the end of this year,'' he added.

ZAMAN (CONSERVATIVE)

[02] EFFORTS UNDERWAY REGARDING IMF APPROVAL TO THIRD LOAN TRANCHE IN AUGUST

Executive Board, which is in the position of IMF's decision taking organ, will recess for two weeks on August 6 under normal conditions.

After the IMF delegation, led by Juha Kahkonen, the IMF Turkey Desk Chief, completes contacts in Turkey, a date will be set for the IMF Executive Board meeting regarded with the third loan tranche.

This meeting is foreseen to take place before August 3 under normal conditions. If preparations can not be completed, the Executive Board meeting is expected to take place the following week. Thus, the recess of the board will be delayed.

Meanwhile, Stanley Fischer, the first Deputy Managing Director of IMF, who will visit Turkey next week, is expected to give support message to Turkish government aiming to increase confidence of markets.

International finance circles in Washington said Fischer is expected to make statements that economic program of the Turkish government was on the right path.

It was reported that planning works could take place in mid and long term if rate of interests are above the desired level during the visit of Fischer.

Fischer, who had addressed a teleconference ten days ago, pointed out that the program could be revised if the rate of interests could not be reduced in the coming few weeks.

Fischer's visit to Turkey will be a farewell visit as he is expected to leave office in a few months.

[03] IMF EUROPEAN I DEPARTMENT DIRECTOR DEPPLER: -''PREVIOUS PROGRAM WHICH FAILED, WAS TOO BRITTLE FOR TURKISH CONDITIONS''

Deppler sent a letter to the Financial Times, a leading newspaper in Britain, to respond critique of Prof. Dr. Oktay Yenal, one of former high- level officials of the World Bank.

In his letter, Deppler said, ''there is a need for the authorities to convince markets of their continuing commitment.''

Noting that economic crises between 1994 and 1995, between 1999 and 2000, and in 2001 had different characteristics, Deppler said, ''in 1999-2000, the challenge was to achieve domestic debt sustainability and disinflation against the background of an external current account surplus. The answer was a crawling peg exchange rate regime and strict limits on the creation of central bank credit. The approach was traditional, widely supported at the time and initially successful. It did not fail because of cavalier design. Failure was due to a combination of bad luck (rising oil prices and a general shift away from emerging market debt) and the authorities' failure to deal in a timely way with emerging problems (an aggregate demand boom and an irresponsible banking system). That said, the programme design was, with hindsight, probably too brittle for Turkish conditions. It was the one, however, that, if successful, would have allowed a faster exit from the deep recession into which Turkey had fallen because of high real interest rates.''

''The 2001 programme features a floating exchange rate and focuses on disinflation and tackling an even worse domestic debt problem. Because of the latter, the international community has generously agreed, in effect, to take on a significant part of Turkey's increased domestic debt. That relieves the pressure on domestic interest rates and helps undergird debt sustainability,'' he said.

He noted, ''the programmes agreed with the authorities have been strong ones and international support has been correspondingly fulsome, with the IMF having after last week disbursed more than 10 billion U.S. dollars of the 19 billion U.S. dollars that have been committed. But no matter how sound the analysis or how strong the policy undertakings or how large the international support, there is a need for the authorities to convince markets of their continuing commitment.''

[04] 78TH ANNIVERSARY OF LAUSANNE TREATY -PRESIDENT SEZER: ''LAUSANNE TREATY WAS ONE OF THE IMPORTANT STEPS TAKEN TO FOUND INDEPENDENT AND MODERN REPUBLIC OF TURKEY BASED ON NATIONAL SOVEREIGNTY''

President Sezer released a message on the occasion of the 78th anniversary of Lausanne Treaty.

In his message, President Sezer depicted foundation of Republic of Turkey as story of a great success.

''Turkish nation's existence was jeopardized as a result of the Moudhros Armistice signed at the end of the World War I. Under the leadership of Mustafa Kemal Ataturk, Turkish nation struggled to protect its freedom and independence, gained a unique victory, and founded an independent, modern and democratic state,'' he said.

Describing the Lausanne Treaty as one of the important steps taken to found fully independent and modern Republic of Turkey based on national sovereignty, President Sezer noted, ''Turkish nation's military success was accepted on the international level, and Turkey regained its indispensable rights with the Lausanne Treaty, one of the founder documents of our Republic. One of the most significant consequences of the Lausanne Treaty was legal and political recognition of independence, existance and sovereignty of the Turkish state.''

''Great soldier and statesman Ismet Inonu who led Turkish delegation during the negotiations in Lausanne, defended Turkish nation's benefits with great determination by acting in conformity with decisions of the Turkish parliament. Following long negotiations, the Lausanne Treaty was signed on July 24, 1923. A new era started for Turkish nation. Following this great victory in the international platform, Turkey started to reconstruct itself, and put significant reforms into practice,'' he noted.

President Sezer added, ''Republic of Turkey will continue to expend efforts to reach its targets without making any concession from its principles, independence and territorial integrity.''

[05] FOREIGN AFFAIRS MINISTRY: -''OPINIONS WHICH WERE PUT FORWARD IN G-8 JOINT DECLARATION TOWARDS SOLUTION OF CYPRUS QUESTION, ARE NOT BASED ON APPROVAL OF SIDES IN CYPRUS''

Releasing a statement, the Foreign Affairs Ministry said, ''the final declaration released at the end of last year's G-8 summit in Okinawa, Japan, gave place to opinions towards solution of the Cyprus question, and referred to the decisions taken by the United Nations Security Council. ''

Stressing that the Cyprus question could be solved by two equal and sovereign states on the island through free negotiations, the statement added, ''however, opinions which were put forward in the joint declaration are not based on approval of the sides in Cyprus. It is clear that a lasting solution could be reached on the island only with free will of the sides.''

[06] ECEVIT: ''LAUSANNE TREATY DREW OUR NATIONAL BORDERS AND CONFIRMED TURKEY'S INDEPENDENCE AND SOVEREIGNTY''

Ecevit released a message on the 78th anniversary of the Lausanne Treaty which is a national pride for the Turkish nation.

''The Lausanne Treaty brought peace to the Turkish nation after long years of war and it established the Turkish nation. It drew our national borders, confirmed our independence and sovereignty, and also allowed us to take a place among the world's other states by forming foreign relations. The Lausanne Treaty is an important milestone in our history and it is a significant political victory. Today, we are remembering great leader Ataturk; the diplomacy genius of this treaty, Ismet Inonu; all the soldiers who died in the war with respect and gratitude,'' Ecevit said in his message.

[07] SYRIAN DEPUTY FOREIGN MINISTER NASSER TO VISIT ANKARA

Foreign Ministry said on Tuesday that Nasser who will visit Turkey between July 31-August 3, will meet with Foreign Ministry Deputy Undersecretary Ugur Ziyal at the interdelegationary meetings.

Bilateral relations, regional and international developments will be taken up in the meetings.

[08] WATER NEGOTIATIONS BETWEEN TURKEY AND ISRAEL CONTINUES

Israeli Water Commission Chairman Shimon Tal has said that Israel was facing the severest water shortage of its history and that buying water from Turkey was an option besides purifying the sea water.

''If we reach an agreement on the price with Turkey, Israel could start buying water from Turkey within 12 or 15 months,'' Tal said.

Tal told the A.A that his office was waiting for the finalization of the bidding which was opened to transport Manavgat's water to Israel. ''We are thinking of buying water from Turkey although it would cost us a little more than purifying the sea water,'' Tal stated.

The Turkish government is asking for 15 cents for one cubic squares of water and Israel wants to pay less than ten cents and the transportation cost will be determined after an agreement is reached about the cost of the water.

The water issue will be discussed when Israeli Prime Minister Ariel Sharon visits Turkey in the first week of August. It was reported that during Sharon's visit, the two sides will focus on the possibility of Turkey's transporting the water to Israel.

Tal said at a press conference that the previous Israeli governments made mistakes and followed wrong policies which resulted in a water crisis. The Israeli government is trying to overcome this crisis by setting up sea water purification facilities, purifying dirty water, or importing water. He said the water shortage should not cause conflicts in Israel, on the contrary they have to work together to bring a solution to this problem.

[09] ECEVIT SAYS ECONOMIC PROGRAMME WILL CERTAINLY REACH SUCCESS

Responding to questions of journalists, Ecevit said that a general assessment will be made by Stanley Fischer, the IMF First Deputy Managing Director. ''Mr. Stanley Fischer is an important administrator of IMF, I think that making an evaluation together with him is important and beneficial,'' he added.

Ecevit said that the Turkish people is hopeful about the future and the economic programme will certainly reach success.

''Even the sections of the society who are in the worst situation in Turkey don't show their reaction in a dangerous manner like the street clashes seen in the most developed countries. This shows the patience of the Turkish nation and the fact that it is hopeful about the programme which we try to implement.''

When asked if there would be a devitation from the inflation target, Ecevit said ''maybe, but as you know there has been a decrease in the inflation rate in May and in particularly June more than expected.''

When reporters asked Ecevit if he had concerns about the floating exchange rate system, Ecevit said that ''we have effective dialogue on this issue among ourselves and with the economic institutions. As you know an important meeting was held on this issue recently.''

''Even if the Turkish nation has severe difficulties, it is hopeful about the economic programme,'' Ecevit said.

When asked when the law on Job Security would be adopted, Ecevit said that it will be adopted this year.

[10] MAJOR GENERAL KIVRIKOGLU: ''THESE EXERCISES SHOW THAT THERE ARE NO MILITARY BORDERS LEFT BETWEEN TURKEY AND BULGARIA''

5th Army Corps Acting Commander Hayri Kivrikoglu said that Turkish and Bulgarian land forces agreed in 1992 by the ''Edirne Accord'' to intensify military contacts in order to increase security in the border areas between Turkey and Bulgaria. He also indicated that the Bulgarian Chief of Staff visited Turkey in 1999 and proposed to hold joint military training and exercises which was approved by the Turkish General Staff. He explained that two exercises in Kirklareli and Bulgaria's Harmanli region were taking place at the same time. Sports contests and tours to historical sites are also part of the organization.

''This training and exercise show that there are no military borders left between the two countries. This will bring the peoples of the two countries closer and contribute to the countries' economic and cultural development, '' he said.

Bulgarian 3rd Army Corps Commander Ivan Dobrev also said that the military contacts which are held at different levels between Turkey and Bulgaria are helping to develop the friendship between the two countries.

Later, Turkish and Bulgarian officials visited the Turkish and Bulgarian soldiers who have been receiving a training at Namik Kemal Ersun Barracks.

Kivrikoglu and other commanders will leave in the afternoon for Harmanli in Bulgaria to watch the exercises held there.

[11] REFORMISTS TO FOUND THEIR PARTY NEXT WEEK

He told the A.A that several names were proposed as the party name but the name was still uncertain and it would not be announced until the last moment. He said that they expected to have about 100 people in the Founders Council including 55-60 deputies.

''There are many deputies in other parties who want to join us. But we want a strong party and we're not accepting all the applications,'' he said.

He also remarked that they took measures to prevent certain people to open internet sites having the party name and then sell it to the party at a very high price.

[12] IRAQI OIL MINISTER RASHID ARRIVES IN ANKARA

State Minister Edip Safder Gaydalę welcomed Rashid at Esenboga Airport.

Gaydalę told reporters there that the trade volume between the two countries was 2,5 billion dollars in the past and it decreased to zero after the U.N intervention.

They were successful in increasing the amount to 1,2 billion dollars again by launching efforts, said Gaydalę and noted that their basic goal is to improve the trade within the scope of the U.N. resolutions.

Iraqi Oil Minister Rashid said in his part that the U.N. intervention is an ''unfair and hostile attack,'' adding that the two countries will reach 2,5- 3 billion dollars of trade volume again.

Referring to the historical and cultural similarity of the two countries, Rashid said that there is the sufficient potential between the two countries to reach this trade volume again.

Rashid said that the two countires were the biggest trade partners of each other before the ''hostile attack,'' Rashid said that the two countires recorded progress in spite of the embargo on Iraq and the trade volume has reached the level of 2 billion dollars.

Rashid said that he will hold a series of contacts to diversify the commodities sold and purchased between the two countries, adding that the trade volume will incerase on its own after that.

Rashid said that ''there is reciprocal will and capabilities. New cooperation fields will also come to agenda.''

The 13th Joint Economic Commission meeting will be held in Ankara and last for three days.

[13] PRIME MINISTER ECEVIT RECEIVES IRAQI OIL MINISTER RASHID

State Minister Edip Safter Gaydalę, Foreign Trade Undersecertary Kursad Tuzmen and officials at Turkish Embassy in Iraq were present in the meeting.

Prime Minister Ecevit said that the relations between the two countries have been developing recently.

Ecevit asked Rashid to convey his esteems and best wishes to Iraqi President Saddam Hussein. Ecevit added that he would be pleased to see Iraqi Vice President Taha Yasin Ramadan and Deputy Prime Minister and Deputy Foreign Minister Tariq Mikhail Aziz in Turkey.

[14] GREEK DEFENSE MINISTER TSOKHATZOPOULOS TO VISIT TURKEY IN SEPTEMBER

Tsokhatzopoulos who accepted the invitation to attend the IDEF fair in principle is expected to be in Ankara on September 27. Tsokhatzopoulos will hold certain contacts during his visit.

IDEF-2001 will be held in Turkusu installations of Turkish Aviation League between September 27-30. The slogan of the fair will be ''Our Mission Is Peace.'' The fair will host countries which want to restructure their armed forces in line with the modern age and which want to display their own products and technologies.

Tsokhatzopoulos, who is one of the leading names of the PASOK party in Greece which is in power, will be the first Greek Defense Minister who will come to Turkey after a very long time.

National Defense Minister Sabahattin Cakmakoglu went to Defendory-2000 defense industry fair held in Athens last year in October upon the guest of Tsokhatzopoulos.

Cakmakoglu had also attended the defense ministers meeting of the Southeast European Multinational Military Force (SEDM).

Cakmakoglu was the first Turkish defense minister who visited a defense industry fair held in Greece.

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