Anadolu Agency: News in English, 01-08-01

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ANADOLU AGENCY

NEWS

01 AUGUST 2001 Wednesday

-TURKEY-PRESS SCAN

These are some of the major headlines and their brief stories in Turkey's press on August 1, 2001. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

HURRIYET (LIBERAL)

The European Court of Human Rights (DCHR), with a vote of four to three, decided against the Welfare Party (RP) and stated that Sheriah's laws don't comply with democracy. The court stressed that the RP executives had statements and activities supporting Islamic law and added that Turkey did not violate the European Convention of Human Rights. It also announced that the RP's party activities threatened the democratic regime and social peace in Turkey.

''ECONOMY SQUEEZED IN TRIANGLE OF STOCK EXCHANGE, INTEREST, AND FOREIGN CURRENCY''

Turkish Chambers and Commodity Exchanges (TOBB) delegation visited Prime Minister Bulent Ecevit, a number of ministers and coalition party leaders and presented them a report on the problems of real sector yesterday. The report said that the ''economy management is squeezed in the triangle of stock market, interest and foreign currency triangle.'' The report indicated that the current troubles could only be overcome by maintaining confidence in money markets and the government's determination was necessary to achieve this result.

MILLIYET (LIBERAL)

Hopes of Necmettin Erbakan, the leader of the banned Welfare Party (RP), faded to return to politics soon following the decision of the European Court of Human Rights.

Moreover, the decision issued by the court includes such expressions that all sections which target politicizing religion in Turkey received a heavy blow.

IHD: TWO MORE VILLAGES EVACUATED

Osman Baydemir, the Deputy Chairman of Human Rights Association, claimed that Asat and Ortakli villages in Beytussebap townships in southeastern Sirnak province were evacuated by the soldiers on July 20.

Baydemir said weapons of the guards in Ulucak, Dagalti, and Hisarkapi were taken, and claimed that three villages were under the threat of evacuation.

SABAH (LIBERAL)

Oyak Group will purchase Turkey's 12th biggest bank which include six banks within itself.

A statement issued by the Banking Regulatory and Supervisory Board (BRSB) said procedure stated for the sale of Sumerbank to Oyak Group. Branches of Sumerbank will act with the name of Oyakbank.

Sumerbank includes Egebank, Yasarbank, Bank Kapital, Yurtbank and Ulusal Bank within its structure.

THIS SHOULD BE A LESSON

European Court of Human Rights (ECHR) warned while approving its decision about the Welfare Party (RP): in secular system, parties which target religion state are closed down.

The statement of Erbakan which said ''whether we will come with blood or not,'' was very influential in decision of the court.

The ECHR put the last blow on Erbakan saying the RP deserved to be closed down. Erbakan's three sins are listed as: ''he defended multi-jurisdiction, he defended shariah, he defended jihad.''

CUMHURIYET (LEFT)

Eti Holding was taken out of the privatization's scope by the decision of the Privatization Higher Council (OYK). Through the decision, Eti Boron and Seydisehir Aliminium have been also taken out of the privatization program. The number of institutions in the privatization program decreased to 39 after the OYK's decision. Many organizations and academicians had earlier remarked that privatizing Turkey's boron reserves would be a big strategical mistake. Turkey possesses the world's richest boron deposits.

HASHISH PRODUCTION AT POLICE STATION

Mersin Security Director Turgay Pamuk confirmed that the police officers in Mersin's Kazanli police station were selling hashish which they produced at the police station. It was reported that the policemen, after confiscating the Indian hemp illegally grown, were releasing the people who grow the Indian hemp by taking bribes from them and later they were using the plants to produce hashish. Eleven out of the 20 suspects were arrested while the other nine were released to be tried without detention.

RADIKAL (LEFT)

The implementation, which foresaw getting 50 U.S. dollars from the citizens while they go abroad, will start today. Those who are exempted from the tax, are obliged to have the necessary documents.

ORAL: REAL SECTOR SHOULD SEE THE FUTURE

Finance Minister Sumer Oral, who received TOBB Chairman Rifat Hisarciklioglu and the excutive board, said, ''public and private sector cooperation is important as well as coordination in economy administration.

Oral said they would discuss the general situation in economy and the problems in real economy.

Pointing out that the real economy should see its future, Oral stressed that this should be the main goal of the economy administration.

TURKIYE (RIGHT)

The intense meeting marathon of the Turkish Union of Chambers and Commodity Exchanges (TOBB) which started on Tuesday morning, ended with the statements of Prime Minister Bulent Ecevit.

Rifat Hisarciklioglu, the Chairman of TOBB, said they were satisfied with the statements of the government. Speaking after his meeting with Ecevit, Hisarciklioglu said they were willing to take a more active role in rehabilitation fund which was planned to be set up to overcome the problems of the real sector.

JOURNEY TO HISTORY

The 20,000-km historical Silk Road journey, which start from Istanbul and extend to Malaysia, took start from Sultanahmet Square on Tuesday.

Ali Mufit Gurtuna, the Istanbul Mayor, who addressed a ceremony, pointed out that historical Silk Road played an important role in its period. He said, ''this road did not lose importance. I belive that this journey will further improve friendship and cooperation between Turkey and Malaysia.

ZAMAN (CONSERVATIVE)

Monetary and capital markets are living slow days and waiting for Friday when the inflation rate for July will be announced. The Istanbul Stock Market (IMKB) had a very low transaction volume which remained at 171,7 trillion TL on Tuesday. Bond interest rates continued to decline. One U.S. dollar was sold at one million 337,000 TL. Experts are not expecting the U.S. dollar go outside the one million 300,000 TL and one million 350,0000 TL range unless a very important development takes place.

RITZ-CARLTON ISTANBUL COMPLETELY BOOKED FOR OCTOBER

The Ritz-Carlton Istanbul, one of the most expensive hotel chains of the world, will open in mid September. All the rooms of the hotel have already been booked for the month of October even before the hotel opens. The hotel will cost about 130,000 million U.S. dollars after its completion. The hotel targets only five percent of the world's travellers who have high spending power. Spending one night at the hotel might cost up to 400 U.S. dollars for one person.

CONTENTS

[01] ASELSAN, HAVELSAN AND TAI INCLUDED IN THE WORLD'S

[02] ADDITIONAL LETTER OF INTENT SENT TO IMF

[03] CENTRAL BANK TO SELL 600 MILLION U.S. DOLLARS IN AUGUST

[04] CHIBBER, WORLD BANK TURKEY REPRESENTATIVE: (1)

[05] CHHIBBER, WORLD BANK TURKEY REPRESENTATIVE: (2)

[06] EXPORTS FROM AUTOMOTIVE SECTOR INCREASES 48.3 PERCENT TO 2 BILLION

[07] PRIME MINISTER ECEVIT: ''HAVING REGARD TO DIFFICULT ECONOMIC

[08] SYRIAN DEPUTY FOREIGN MINISTER NASIR IN ANKARA

[09] PRESIDENT SEZER RECEIVES TOBB DELEGATION

[10] EXPORTS RISE 13.3 PERCENT IN FIRST 7 MONTHS

[01] ASELSAN, HAVELSAN AND TAI INCLUDED IN THE WORLD'S

Military Electronic Industry Aselsan came the 80th on the list with its total sales of 212 million U.S. dollars last year. Air Electronic Industry Havelsan and Turkish Aerospace Industry (TAI) came the 96th and 97th with their sales of 52 and 47 million U.S. dollars.

American defense giant Lockheed Martin remained the world's biggest defense company with last year's 18 billion U.S. dollar sales.

U.S. firms Boeing and Raytheon came the second and the third.

[02] ADDITIONAL LETTER OF INTENT SENT TO IMF

The Letter of Intent, which was sent to the IMF on Tuesday, includes macro- economic balances and end of year targets.

Meanwhile, IMF Executive Board will convene on August 3 and is expected to release 1.5 billion U.S. dollars credit within the framework of 9th review.

[03] CENTRAL BANK TO SELL 600 MILLION U.S. DOLLARS IN AUGUST

The auctions will take place on Aug 1, 3, 8, 10, 15, 17, 22, 24, 29, and 31. Sixty million U.S. dollars will be sold at each auction.

''Our policy to prevent short term fluctuations will continue. The above mentioned figures could be increased depending on the Treasury Undersecretariat's foreign currency financing in August. In such a case, the changes in the auction program and sales totals will be announced in advance,'' the bank said.

[04] CHIBBER, WORLD BANK TURKEY REPRESENTATIVE: (1)

Chibber told A.A correspondent that at the first stage of getting rid of the crisis, they focused on finance sector, stressing that time came to focus on the real sector.

Chibber said as getting rid of the crisis would take time, support should be expended to productive, effective, and successful companies in this period to get rid of the crisis and the negative effects of the crisis.

The World Bank representative said they would convey the Turkish officials next week their advices regarded with how the plan to save the real sector would be operated and implemented.

Pointing out that at least an agreement could be reached on issues pertaining to finance sector and that the focus should be on real sector, Chibber said the real sector suffered loss in this crisis more than the crisis in 1994.

Chibber said much burden was put on the real sector because of the state and budget finance in Turkey and the structure of the banking system, adding that many companies which could compete under normal conditions and protect their powers, were pushed to difficult situation because of the crisis.

Stressing that time came to attract the attention to the support that would be expended to enliven the real sector, Chibber said many successful companies would suffer loss in case the rate of interests continue to be high.

Chibber said this support program to make those companies to survive and recover has vital importance to preserve enterpreneur power of the Turkish economy and to contribute to macro program. He said if those companies start to fall, then who will produce, make exportation, pay tax, and help macro-balances. Chibber said support should be expended to micro sector for macro sector.

Chibber said that the World Bank was benefiting from their experience with other countries but they were tailoring special solutions and formulas for the conditions of each country. He stated that these solutions should be brought in a certain system. He added that fair and regular legal procedures were essential to solve the problems between the companies and banks in Turkey.

Chibber indicated that the World Bank was going to present its recommendations to Turkey and later discuss them with the Turkish government officials, Central Bank, Banking Regulation and Inspection Council and representatives of trade and industry chambers. During the talks they will decide which regulations would help the real sector most.

He remarked that when he speaks of the real sector, he was not only referring to big size companies but also to medium and small size ones. He noted that the World Bank has been preparing a report on the real sector for the last three months together with the trade and industry chambers, banks and other related organizations.

Chibber said that they would start meetings with Turkish government officials next week based on the comprehensive studies they had and that they would come up with a plan for the real sector during these meetings. He also remarked that different industrial branches suffered different kind of damages in Turkey.

Speaking of Turkish export, Chibber said Turkey had a higher export potential but the management capitals of export companies were insufficient. He said exporters would be provided more sources through Eximbank. He also pointed out that they would discuss with the government creating new financing for exporters.

Instead of focusing on money only, a correct mechanism should be formed between the real and banking sector, Chibber said and added that providing more money might cause more problems.

Chibber said that there were two or more different solutions which so far worked in crisis stricken countries. According to him, certain basic rules could be formed for a volunteer agreement between the real and banking sector. These measures could include creatng a fund to recover the real sector or expediting court cases at courts.

[05] CHHIBBER, WORLD BANK TURKEY REPRESENTATIVE: (2)

Speaking to the A.A correspondent, Chhibber said coping with the problems of the real sector in Turkey was relatively easier when compared with the other countries that experienced crisis.

Chhibber said Turkey could get rid of the crises in difficult times with a good organization and in solidarity, noting that Turkey acted together in War of Independence, stressing that Turks could do it again.

The World Bank Representative said the enemy is not visible in economic crisis but it can be fought against, and noted that a way should be found to be organized.

Chhibber said many criticisms were made about disorganization following the quake, recalling that the things that had to be done were materialized after a time.

Pointing out that there were some difficulties at the beginning, Chhibber said similarly a way should be found to act together in financial quake and unite forces. He said such an organization could be made by the government and the state by bringing together the concerned sides.

Chhibber expressed the readiness of the World Bank to expend support following more organized talks in this respect.

Ajay Chhibber recalled that although the amount of Turkey's debt was higher than debts of some countries, it was not as high as debts of East Asian countries.

Chhibber said, ''dimensions of problems of the countries suffering crisis are different so solutions should be different.''

Chhibber noted that the World Bank would start the same day talks with the Turkish government on the measures to reduce social crisis following the economic and financial crises in Turkey.

Following the talks which will end by mid-Semptember or end-September, distribution of humanitarian aid to poor families will start in October in the earliest.

This World Bank source worth of 500 million U.S. dollars will be extended to poor families through the Social Solidarity Fund.

World Bank's Turkey Standing Representation and World Bank experts from the bank's headquarters in Washington D.C. will control this aid distribution process.

This World Bank finance will focus on children of poor families and their education.

Stressing that the crisis affected not only companies but also families, Chhibber said that middle class families can at least overcome the crisis but poor and poorest families do not have the opportunity to bear the crisis.

[06] EXPORTS FROM AUTOMOTIVE SECTOR INCREASES 48.3 PERCENT TO 2 BILLION

The Secretariat General of the Uludag Exporters' Associations said on Wednesday that the exports of automobiles, which had been 1 billion 534 million U.S. dollars in the January-July 2000 period, rose to 2 billion 275 million U.S. dollars in the same period this year.

Meanwhile, exports from the automotive sector which had been 212 million 104 thousand U.S. dollars in July of 2000, increased by 47.6 percent to 313 million 172 thousand U.S. dollars in the same period this year.

The figures in the automotive sector in the first seven months of 2001 are as follows:

Name of Product Exports Difference

(Thousand U.S. Dollars) (percent)

------------------------- ----------------------- ----------
Tractor........................... 20.417 -45.2

Bus-minibus-midibus............... 186.699 9.5

Automobile........................ 653.938 62.9

Lorry-truck....................... 186.296 937.1

Motor vehicles on special propose. 7.155 202.2

Towing............................ 3.106 614.7

Work machines..................... 24.560 71.8

Vessels-boats-ships............... 99.914 22.9

Aircraft-spacecraft............... 63.504 86.5

Railway vehicles.................. 731 100.0

Bicycle-motorcycle................ 10.223 6.2

Agricultural machines............. 3.386 12.8

Tank-armoured vehicles............ 19.644 7.4

Towings on special purpose........ 78 -66.9

Automotive by-industry............ 996.284 33.9

------- ----
TOTAL............................. 2.275.942 48.3

[07] PRIME MINISTER ECEVIT: ''HAVING REGARD TO DIFFICULT ECONOMIC

Speaking at the opening of meeting of Higher Military Board (YAS), Prime Minister Ecevit said, ''internal and external security cannot be abstracted from economic and social problems. The Turkish Armed Forces is aware of this fact. Having regard to difficult economic process in Turkey, the Turkish Armed Forces postponed some of its important projects. The Turkish Armed Forces took this decision without any request from the government. Therefore, this decision has a special value. Our government is aware of inconvenience of postponing these projects of great importance. Our government will bring these projects of the Turkish Armed Forces onto agenda as soon as we overcome the current economic crisis.''

''Meanwhile, our government reduced expenditures in projects of public sector. Our economy has faced extremely difficult problems. These problems stemmed from long-standing negligences and irresponsibilities. But we can revive our economy in a short period of time, and make some structural reforms if we can succeed in well-assessing Turkey's opportunities and potential. Our making these changes rapidly is a condition for our full membership to the European Union (EU),'' he noted.

Prime Minister Ecevit stressed, ''our government's determination to reach abovementioned targets is clear. We have worked so hard day and night, and adopted 327 laws. Most of these laws envisages structural changes and changes in order. The International Monetary Fund (IMF) does not easily eulogize countries it has been assissing. But it eulogized Turkey, and said that such a work has not been seen anywhere.''

Noting that arguments among coalition partners were quite normal in democracies, Prime Minister Ecevit said, ''all that is needed is a compromise in the end. In fact, three political parties forming coalition government in Turkey has reached such a compromise on every issue.''

''As you know, IMF First Deputy Managing Director Stanley Fischer paid a visit to Turkey last week. I told him that they should get used to our characteristics, and not to engulf in panic in an argument. In fact, I got the impression that they became familiar with us. I hope that finance and stock exchange will also get used to our democratic characteristics. We have a sound way in front of us. But, we have begun to take rapid step on this way. For instance, more decrease than expected was recorded in inflation rates in May and June. Budget revenues increased by 47.7 percent. Non-interest surplus rose by 56 percent. While world trade decreased by 4 percent, our exports increased by 10.3 percent in the first six months of the year. Meanwhile, shuttle trade climbed by 18 percent. We have provided necessary support to increase shuttle trade,'' he noted.

Pointing out that there was a sharp increase in tourism revenues in the same period, Prime Minister Ecevit said, ''however, we should not dream yet. A 4 percent shrinkage was recorded in economy. This shrinkage is a sign of regression in production, investment and employment. High rates of interest have not been reduced yet. There is a serious decrease in salaries. I hope that we would overcome all these negativities as soon as possible.''

''We have to provide domestic and foreign source to overcome economic difficulties. Therefore, nearly 18 billion U.S. dollars of foreign source provided by IMF and World Bank is of vital importance. These institutions have never made such a generous contribution to any country. Now, it is domestic sources' turn. The parliament adopted a law to assess Treasury properties. As soon as new legislative year starts, we will adopt another law to increase domestic source without being a burden to our people. I believe that if we can get positive results from these laws, we will be able to revive our economy and to meet requirements of the Turkish Armed Forces,'' he noted.

Prime Minister Ecevit said, ''meanwhile, as you know, the decree with the force of law (KHK) was released on July 13, 2001 to remove unfairness in financial and social rights of civil servants and other public servants. The KHK aims at removing unfair distribution of incomes among civil servants and other public servants in five years. At the same time, another draft law was submitted to the parliament on July 31, 2001 to improve salaries of Turkish armed Forces members working in the Turkish Republic of Northern Cyprus (TRNC). The draft law will come into force as of June 1, 2001. The draft also made necessary changes to remove unfair distribution of income among civil servants working at the National Defense Ministry.''

[08] SYRIAN DEPUTY FOREIGN MINISTER NASIR IN ANKARA

Nasir who came to Ankara on a three-day official visit attended the interdelegationary meeting presided by Foreign Ministry Deputy Undersecretary Ugur Ziyal.

Speaking to reporters following the meeting, Nasir said that they had assessed bilateral relations, adding that they had reached a point which they considered a very positive step in their relations.

Nasir added that they should work more for progressive relations between the two countries.

Responding to a question, Nasir said that he had conveyed Syrian Foreign Minister Farouk al Shara's official letter of invitation to Foreign Minister Cem, adding they hoped this visit would be paid in the shortest time frame.

Responding to another question, Nasir said that they had assessed the security issue withjin a very broad frame, and they were at ease as a result of the Turkish and Syrian sides' achievement in this issue.

Meanwhile, Foreign Ministry sources said that first of all, bilateral relations had been assessed and the sides had agreed on further improvement of those relations, and lastly, the sides had exchanged opinions on the process of bilateral relations.

Noting that the sides had decided to focus on positive aspects of the point reached in bilateral relations and seek formulas to remove negative aspects, sources said that Ankara had put forward formulas to resolve problems but Damascus had not given a response yet.

During the meeting which lasted for two hours at the Foreign Ministry building, also economic, military and cultural relations, agreement on prevention of double taxation, inter-universities cooperation, foundation of culture centers and opportunities to businessmen had been discussed, sources said.

Nasir will be received by Foreign Minister Cem following the dinner.

Middle East peace process and regional issues are expected to be discussed during Nasir's contacts on Thursday.

-A CONTRACT SIGNED BETWEEN TURKEY AND U.S. TO PREPARE
PROJECT OF HAKKARI DAM AND HYDROELECTRIC POWER PLANT
ANKARA - A contract was signed in Ankara on Wednesday between Turkey and the U.S. to prepare project of dam and hydroelectric power plant to be constructed in eastern province of Hakkari.

The project is one of the 29 projects in the intergovernmental joint statement signed by Turkey and the U.S.

Speaking at the meeting, Energy and Natural Resources Minister Zeki Cakan said, ''due to lack of source, these 29 projects have been taken up within framework of bilateral cooperation since 1992. After finalization of these projects, Turkey will produce 25.3 billion kilowatt-hour of electricity. Within this framework, Karkamis dam and hydroelectric power plant have been concluded while Deriner, Borcka and Muratli projects are under construction. We have finalized negotiations for 14 projects. Loan agreements about 12 of them have been sent to the Treasury Undersecretariat while negotiations have been continuing about eight others.''

Cakan noted, ''Hakkari dam and hydroelectric power plant will produce 626 million kilowatt-hour of electricity annually. This project is a sign of our government's attributing importance to development of Southeastern Anatolia Region.''

Meanwhile, State Hydraulic Works (DSI) Director General Dogan Altinbilek said that the project would be carried out by a consortium formed by Washington Infrastructure Services Inc and Alsthom of the U.S., and Kiska and Dolsar of Turkey.

The project to be financed by the loan of the U.S. Eximbank, is expected to cost nearly 300 million U.S. dollars.

[09] PRESIDENT SEZER RECEIVES TOBB DELEGATION

Speaking to reporters following the meeting which was closed to press, Hisarciklioglu said that they had paid a courtesy visit to the President.

Noting that they had briefed the President on current economic problems in Turkey and the meetings they had held the day before, Hisarciklioglu said that the result they reached with the government was that the real sector would be the prior sector.

Noting that President Sezer had stated at the meeting that he was aware of the problems of the real sector and he had same concerns, the TOBB Chairman said that the President had told them that he would help in solution of real sector's problems if his contribution was requested.

When asked whether they had discussed the issue of amendment to the Constitution and Political Parties Act, Hisarciklioglu said, ''actually, Deputy Prime Minister Mesut Yilmaz earlier announced that an agreement had been reached on amendment to 37 articles of the Constitution. We expressed our pleasure with this. And the President has stated that he would help in amendment process and approval of them.''

[10] EXPORTS RISE 13.3 PERCENT IN FIRST 7 MONTHS

Releasing a statement, Turkish Exporters' Assembly (TIM) said on Wednesday that exports from Turkey in the same period last year had been 15 billion 616 million 521 thousand U.S. dollars.

Total exports in July 2001 increased 16.7 percent to 2 billion 450 million 866 thousand U.S. dollar.

As of end of July 2001, the last 1-year exports rose 6.8 percent to 29 billion 284 million 725 thousand U.S. dollars.

Exports of agricultural products increased 16.8 percent in the first seven months of the year. Exports of olive and olive oil rose 317.3 percent to 84 million 52 thousand U.S. dollars.

Exports of animal products increased 12.2 percent and wooden and forestry products climbed 21.7 percent.

It said that exports of manufacturing products rose 13.0 percent to 14 billion 847 million 928 thousand U.S. dollars. Exports of processed products based on agriculture rose 9.0 percent, processed oil products increased 15.0 percent and industrial products climbed 13.6 percent.

Exports from the motor vehicles and by-industy sector increased 48.6 percent to 2 billion 317 million 626 thousand U.S. dollars. This sector's exports in July rose 49.8 percent to 323 million 740 thousand U.S. dollars.

Meanwhile, exports of dried fruits decreased 0.2 percent, tobacco exports reduced 6.6 percent and carpet exports fell 11.1 percent.

Exports of ready-made clothings and textiles reduced 0.9 percent to 4 billion 393 million 147 thousand U.S. dollars.

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