Anadolu Agency: News in English, 01-08-22

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ANADOLU AGENCY

NEWS

22 AUGUST 2001

Wednesday

-TURKEY-PRESS SCAN

These are some of the major headlines and their brief stories in Turkey's press on August 22, 2001. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

HURRIYET (LIBERAL)

After the main items of agenda of the National Security Council (NSC) meeting were covered, Deputy Prime Minister Mesut Yilmaz said that the European Union (EU) would issue the development report regarding Turkey and emphasized the importance of the approval of constitutional amendment bill. After the soldiers and President Ahmet Necdet Sezer stressed the importance of the constitutional amendment bill, the participants of the NSC meeting decided to include a message, which supported the constitutional amendments, in the NSC statement.

CHIEF PROSECUTOR SAYS STOP

The Supreme Court of Appeals chief prosecutor asked for the cancellation of authority of Recep Tayyip Erdogan as a political party leader and dismissial of Erdogan and six other members of the Justice and Development Party (AK Party) who wear headscarves from the founder membership. The chief prosecutor applied to the Constitutional Court and asked the court to prevent Erdogan from using his authority as a party leader.

WE PASSED THROUGH THE CANYON EARLIER THAN EXPECTED

Nevzat Cetin, the leader of the mountaineers who went to Valla Canyon, said that they completed their tour, which they planned to finish in five days, in four and a half days. Five mountaineers who achieved to pass through the Valla Canyon in 104 hours are pleased to achieve a difficult thing. Search and rescue operations were launched after the mountaineers, who entered the canyon in Pinarbasi township of northern Kastamonu province on Thursday, had been reported missing.

MILLIYET (LIBERAL)

Head Prosecutor of the Supreme Court of Appeals Sabih Kanadoglu has said in his application that the party which is warned has to correct its mistakes within six months after the warning is issued. ''If the AK Party doesn't make changes, I will apply to the Constitutional Court to shut down the party,'' he said.

HEADSCARF ISSUE CAUSES TROUBLE ALSO FOR ERDOGAN'S PARTY

Kanadoglu, in his application, asked the dismissal of Ayse Bohurler, Ayse Nur Kurtoglu, Habibe Guner, Sema Ramazanoglu, Fatma Unsal Bostan and Serap Yahsi Yasar who all wear headscarves. ''Although a woman can wear a headscarf freely in her private life, it is an imposition for party members to wear it with the aim of toppling the democratic system. Our state system sees university students who wear head scarves as a threat. Therefore, a political party founder cannot be regarded as a lesser threat to the democratic system,'' he commented.

SABAH (LIBERAL)

Chief prosecutor Sabih Kanadoglu gave an ultimatum to AK Party: ''Dismiss Erdogan from founder membership. Prevent him from using his authority as the party leader.'' Kanadoglu asked for a precaution. Kanadoglu said that Erdogan could not enter into any party and be elected as a deputy. Professor Suhely Batum, a jurist on constitution, supported Kanadoglu: ''Tayyip Erdogan, in fact, could not be a founder member. Even if he is pardoned, he cannot become a deputy.'' Thus, Erdogan's political life was ended. Erdogan can apply to the court for the return of his rights in March 2002 when his ban will end. However, even if the court approves Erdogan's application, the Higher Election Board will say the final word.

ONE MORE STROKE FROM ISTANBUL

Sisli prosecutor Turgay Evsen launched an investigation into Recep Tayyip Erdogan, the leader of the AK Party, on charges of a speech he made in an inauguration ceremony in 1994. Erdogan is accused of insulting the state. If a law is filed in the end of the investigation, Erdogan will be face a trial asking for 1 to 6 years of imprisonment.

CUMHURIYET (LEFT)

Tourism Minister Mustafa Tasar has said that the number of American tourists visiting Turkey would increase two or three times in the next three years. ''Turkey, with its historical and cultural richness, will offer endless alternatives to tourists,'' Tasar said when U.S. ambassador Robert Pearson visited Tasar on Tuesday. Pearson said that 500,000 American tourists were visiting Turkey every year. He also remarked that he believed Turkish-U.S. relations would also develop further parallel to the increasing tourism activities.

SEZGIN'S ANIMOSITY AGAINST ALAWITES IS NOT A NEW ONE

Abdulkadir Sezgin, a preacher of the Directorate of Religious Affairs, who recently came to agenda by his negative statements about Alawites claimed that Alawites were the second most dangerous group after the PKK. ''Alawites who are dreaming of forming a Alawistan want land from Turkey and they want to unite under a different flag,'' Sezgin had said. Sezgin's animosity against Alawites is not so new. He had built mosques in Alawite villages in September 12 period. He had also prepared a report which consisted of accusations against Alawites and presented it to True Path Party (DYP) leader Tansu Ciller when she was the prime minister.

RADIKAL (LEFT)

Deputy Prime Minister Mesut Yilmaz said that if the reservations of the General Staff regarding the constitutional amendments were still valid, it would be more difficult to enter into the European Union (EU). The soldiers said that some reservations remained in the passed and added that the parliament was the right place where the matter would be discussed.

DEEP EXPLORATION OF FAULT

Giant French drilling ship ''Marion Dufresne' is exploring the fault lines in Marmara Sea. The exploration will illuminate the evolution of fault lines and contribute to quake predictions.

FLOOD HITS CAPITAL

Torrential rains, which influenced Marmara Region since the previous day and paralyzed Istanbul, also hit Ankara. Meteorology officials warned that precipitations would continue for three more days.

TURKIYE (RIGHT)

Macedonian Foreign Minister Mitreva who came to Ankara on Tuesday to meet Foreign Minister Ismail Cem. Prime Minister Bulent Ecevit returned the financial aid demand of the guest minister.

SPECIAL BOARD FOR REAL SECTOR

A technical working group was formed to solve the financial problems of the real sector at a meeting of the representatives of the government, real sector and the economy bureaucrats. The participants agreed that some of the bonds of the Halk Bankasi, the maturities of which were at a close date, would be paid earlier than the due date.

ZAMAN (CONSERVATIVE)

The expressions in the National Security Council (NSC) statement prior to Chief of General Staff Huseyin Kivrikoglu's visit to Baku indicated that Turkey would play a more active role in the region. Kivrikoglu's visit to Baku which will start on Thursday and the discussion of Central Asia and Caucasus policies at the NSC meeting on Tuesday signals that Ankara will pursue a more efficient policy in the region in the following period. Kivrikoglu will be accompanied by 10 F-16 war planes during his visit to Baku in a period when the Caspian crisis started to become a regional crisis. By this visit, Turkey will clearly give the message to the regional countries that it is also present in the Caucasus. The NSC said that the Baku-Ceyhan oil pipeline was a sine qua non project of strategic importance.

TURKEY-EU RELATIONS TO START TO WARM UP BY AUTUMN

Turkey has not adopted serious constitutional amendments and reforms since the Helsinki Summit in 1999 when it was announced as a European Union (EU) candidate state. If amendments are not put to implementation, the Development Report which wil be issued in November will be a negative report.

CONTENTS

[01] FOREIGN TRADE STATISTICS -2.4 BILLION U.S. DOLLARS GOODS EXPORTED AND 3.2 BILLION U.S. DOLLARS GOODS IMPORTED IN JUNE

[02] KOKSAL STARTS INVESTIGATION ABOUT HOUSING MINISTRY'S TENDERS AFTER MARMARA EARTHQUAKE

[03] CENTRAL BANK OPENS FOREIGN CURRENCY AUCTION

[04] SYRIAN IRRIGATION MINISTER BRIEFED ON GAP

[05] ''TURKISH STARS'' ARRIVE IN BAKU

[06] TRNC PRESIDENT DENKTAS SAYS HE WILL NOT TAKE PLACE IN SCENARIOS CLAIMING THAT PROXIMITY TALKS WILL START IN SEPTEMBER

[07] A.A AND MPA TO SPONSOR TURKISH-GREEK CONCERT IN GREECE

[08] ISRAELI AMBASSADOR SULTAN VISITS DUZCE

[09] TREASURY TO HEAD FINANCIAL AND PRODUCTION CONSULTATION BOARD

[10] CENTRAL BANK SELLS 60 MILLION DOLLARS

[11] FOREIGN EXCHANGE RATES

[12] AYCELL STARTS GIVING SERVICE

[13] FOREIGN TRADE STATISTICS (2)

[14] IMF DELEGATION TO COME TO ANKARA ON SEPTEMBER 7

[01] FOREIGN TRADE STATISTICS -2.4 BILLION U.S. DOLLARS GOODS EXPORTED AND 3.2 BILLION U.S. DOLLARS GOODS IMPORTED IN JUNE

The exports increased by 10.2 percent compared to June 2000 while the decrease in imports reached 34.3 percent.

The State Institute of Statistics (DIE) said that in parallel to the decrease in imports in January-June period, the foreign trade deficit dropped 74.7 percent to 5 billion 160.9 million U.S. dollars, and the rate of exports meeting imports decreased from 76 percent to 74.7 percent.

In June 2000, the total exports were 2 billion 325.8 million U.S. dollars, the total imports were 4 billion 964.5 million U.S. dollars and the foreign trade deficit was 1 billion 668.1 million U.S. dollars.

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

2000 2001 Difference JAN-JUNE Difference

JUNE JUNE (Percent) 2000 2001 (percent)

-------- --------- --------- ----- ----- ----------
Exports 2,325.8 2,477.6 6.5 13,806.0 15,219.7 10.2

Imports 4,964.5 3,259.3 -34.3 25,478.6 20,380.6 -20.0

Deficit -2,638.7 -781.7 -70.4 -11,672.6 -5,160.9 -55.8

Rate of

Meeting (%) 46.8 76.0 54.2 74.7

[02] KOKSAL STARTS INVESTIGATION ABOUT HOUSING MINISTRY'S TENDERS AFTER MARMARA EARTHQUAKE

Prosecutor Cengiz Koksal who is running the investigation went to the Public Works and Housing Ministry at 6 a.m. on Wendesday and took the photocopies of tender files.

[03] CENTRAL BANK OPENS FOREIGN CURRENCY AUCTION

The bank is planning to sell 60 million U.S. dollars in the auction.

Meanwhile, the markets have opened with a plus reserve of 3 quadrillion 946.2 trillion TL.

[04] SYRIAN IRRIGATION MINISTER BRIEFED ON GAP

Unver said that GAP region constitutes 10 percent of the country's population and arable lands that are irrigated.

The current economy of the region is weak but there is potential, Unver noted.

Unver stated that the agricultural and industrial production of the region has started to increase by new projects.

Following the briefing, technical delegations held a meeting.

[05] ''TURKISH STARS'' ARRIVE IN BAKU

The team is consisted of ten F-5 airplanes. Only seven of the airplanes will participate in the show and the other three will be kept to replace others in case of a technical failure.

The aerobatics shows will take place on Azadlik Square and Azerbaijani Military School.

[06] TRNC PRESIDENT DENKTAS SAYS HE WILL NOT TAKE PLACE IN SCENARIOS CLAIMING THAT PROXIMITY TALKS WILL START IN SEPTEMBER

Denktas told Cyprus daily published in TRNC that he would meet United Nations (U.N) Secretary General on August 28 and that whether or not the proximity talks will start would be debated during their meeting.

Some news stories and scenarios claiming that he would go to New York as an actor on duty have been published recently, Denktas said.

Denktas continued, ''I hope the secretary general does not have a similar impression. The beginning of talks in September is dependent on our discussion of the developments with my government and if necessary with Turkey following my meeting with the secretary general. If they try to lay a ground to show me as if I rejected another proximity talk process, by planning a September round of talks without informing us, that is another thing.''

Noting that Greek Cypriot administration discuss that the proximity talks will resume in New York in September, Denktas said, ''we are receiving unofficial news from the Americans. According to these, my meeting with the secretary general will be a meeting only for show, and, I will go to New York as an actor on duty in a scenario of others on a date in September set by some other people, as if nothing has happened.''

Denktas reiterated that the solution to Cyprus question is the confederation.

[07] A.A AND MPA TO SPONSOR TURKISH-GREEK CONCERT IN GREECE

The concert is organized by Neapolis Municipality. Neapoli Mayor Grigoris Havisavas said at a press conference that famous singers from two countries including Mikis Theodorakis, Zulfi Livaneli, Maria Farantouri and Panagiotis Karadimitri would perform in the concert.

Many representatives including A.A General Director Mehmet Guler is invited to the concert. The concert is held as part of the Balkan Plaza, who was first held last year, with the aim of bringing Balkan nations closer.

Balkan Plaza events are an amalgamation of artistic activities from the Balkans, with musical and dancing units of ethnic and modern music, dance and exhibitions and Balkan cuisine.

[08] ISRAELI AMBASSADOR SULTAN VISITS DUZCE

Sultan was briefed by Duzce Deputy Governor Vasip Sahin about the 15-day medical course given by three Israeli doctors.

Sultan said he was pleased about the good relations between Turkey and his country. He remarked that he invited an agriculture and industry commission set up in Duzce to Israel and the two countries would carry out joint activities in the earthquake area on agriculture and industry.

The Israeli ambassador later visited Maternity and Child Care Center and Duzce Tandogan Tokgoz Hospital.

After his contacts, Sultan presented certificates to 80 doctors who participated in the medical program at a ceremony held at Akcakoca Diapolis Hotel.

[09] TREASURY TO HEAD FINANCIAL AND PRODUCTION CONSULTATION BOARD

A statement of the Treasury Undersecretariat said on Wednesday that the board held its first meeting on Tuesday.

The statement noted that the board was composed of Treasury Undersecretary, Capital Market Board (SPK) Chairman, Banking Regulatory and Supervisory Board (BRSB) Chairman, State Banks Joint Executive Board Chairman, Eximbank General Director, chairmen of Banks Association of Turkey, Union of Chambers and Commodity Exchanges of Turkey (TOBB) and Turkish Industrialists' and Businessmen's Association (TUSIAD).

The statement said that high-level representatives of the above mentioned institutions and organizations attended the first meeting of the board.

The adverse effects of the latest economic crisis in Turkey was debated and the possible measures were discussed during the meeting, the statement pointed out.

The statement stressed that the board would meet once in a month while the technical working group to be formed under the pioneership of the Banks Association of Turkey would exert initiatives continuously.

Representatives of TUSIAD, TOBB and BRSB would take place in the technical working group, the statement said.

The statement noted that the Financial and Production Consultation Board was working to maintain economic activities, production, exportation and employment possibilities of real sector organizations that were negatively affected by the crisis and to eliminate the difficulties that these organizations faced when repaying their debts.

The statement stressed that the participants reached a compromise on the below mentioned solutions in their first meeting:

- The technical working group will set the basic principles regarding the methods of implementation to restructure the companies, which have a strong structure and which can continue competition in the market but which face financial problems due to the crisis, by methods like reduction in interest rates of their debts to the banks and extra credits. The working group will also set the basic principles for the maintenance of commercial and economic lives of these companies.

- The participants stressed the necessity of a Private Asset Management Company to buy nonperforming loans in banking sector. The aim of the foundation of this company is to ensure liquidity in financial system and strengthen financial structures of banks. This company of which funding will be made by private banks, state banks, International Finance Council, and Savings Deposit Insurance Fund (SDIF), can use methods like debt/share swap and public offering to make its assets liquid. Thus, the authorities foresee to increase possibilities of banks to collect money and ensure the banks to concentrate on their basic functions.

The board will make necessary changes and arrangements in the releated regulation and prepare proposals.

- The participants worked on the protection of real amount of loan portfolio provided to the small and medium scale enterprises through the Halk Bank, the increase in loan quality, and the more efficient use of loans provided to small and medium scale enterprises. In this context, the redemption of Treasury bonds owned by the banks will continue in line with the program. Besides, authorities has reached the final stage to obtain external finance facilities from the European Investment Bank for the small and medium scale enterprises.

- As these measures are taken in banking system, it was observed that there will be considerable revival in use of Eximbank sources.

Also, authorities will work on solution of problems about extension of letter of guaranty to the sectors like contracting which make long-term good and service exports.

[10] CENTRAL BANK SELLS 60 MILLION DOLLARS

The average bid in the auction which the Central Bank held within framework of forex auctions program became 1 million 461 thousand 162 Turkish liras (TL).

Maximum bid was 1 million 465 thousand TL and the minumum bid was 1 million 458.5 thousand TL.

[11] FOREIGN EXCHANGE RATES

(Turkish lira)

ISTANBUL FREE MARKET Buying Selling

-------------------- ------- ------
U.S. dollar 1,460,000 1,470,000

German mark 686,000 694,000

British pound 2,112,000 2,135,000

Swiss franc 879,000 888,000

French franc 203,000 206,000

ANKARA FREE MARKET

German mark 680,000 695,000

British pound 2,077,000 2,146,000

[12] AYCELL STARTS GIVING SERVICE

Aycell, which is one of the four GSM operators in Turkey, started giving technical and commercial service today.

Addressing a ceremony that was held on the occasion, Vural said Aycell would make an important contribution to the competition power of Turk Telekom.

Pointing out that Aycell is ready for service technically, Vural said, ''the transportation ministry had given gsm licence to two institutions on March 16, 2000. Those were Turk Telekom and Is-Tim. Aycell will be the second GSM 1800 operator in Turkey. It would provide a more rapid and quality communication service in mobile phone sector.

Aycell will be in service commercially as of September. A total of 130 million U.S. dollars were spent so far. Investment, worth of 1.5 billion U.S. dollars will be made next year.

When a journalist asked if Aycell thought of working with a foreign partner, and the number of subscribers, Vural said Aycell would implement a dynamic market method and new methods.

Vural said Aycell targeted covering the whole Turkey in March 2002, and noted that they did not think of working with a partner.

Aycell which would be in service in Ankara, Istanbul, Izmir, Adana, Bursa, Antalya and Mugla with 1.000 base stations at first stage targeted to spread its network throughout Turkey within 5 months.

Responding to a question that there were some difficulties regarded with roaming agreements, Vural said, ''Turkey's sources should be used in a productive way. We believe that reciprocal agreements will be made.''

[13] FOREIGN TRADE STATISTICS (2)

The State Institute of Statistics (DIE) said on Wednesday that imports of consumer goods decreased by 45.6 percent in June and by 34.1 percent in January-June period.

It said that the 20 billion 380.6 million U.S. dollars of total imports in the first half of the year was composed of 467.5 million U.S. dollars of intermediate goods, 3 billion 574.6 million U.S. dollars of capital goods and 2 billion 148.5 million U.S. dollars of consumer goods.

Meanwhile, 15 billion 219.7 million U.S. dollars of total exports was composed of 7 billion 251.9 million U.S. dollars of consumer goods, 6 billion 545.8 million U.S. dollars of intermediate goods and 1 billion 372.8 million U.S. dollars of capital goods.

In the first half of 2001, Turkey's exports to the European Union (EU) countries increased 9.9 percent from 7 billion 283.5 million U.S. dollars to 8 billion 5 million U.S. dollars while Turkey's imports from the EU member countries decreased 27.3 percent from 12 billion 592.3 million U.S. dollars to 9 billion 148.6 million U.S. dollars.

In this period, exports to countries in American continent rose 68.8 percent from 110 million U.S. dollars to 185.7 million U.S. dollars, exports to Middle Eastern countries increased 36.3 percent to 1 billion 623.8 million U.S. dollars.

Exports and imports of goods in January-June period in 2000 and 2001 and their differences according to DIE statistics are as follows:

EXPORTS Difference IMPORTS Difference

. 2000 2001 (percent) 2000 2001 (percent)

. -------- -------- ------ ------- -------- ------
Capital 1,090.5 1,372.8 25.9 5,087.1 3,574.6 -29.7

Intermediate 5,899.2 6,545.8 11.0 17,023.8 14,467.5 -15.0

Consumer 6,792.6 7,251.9 6.8 3,262.2 2,148.5 -34.1

Other 23.5 49.0 108.2 105.2 189.8 80.3

TOTAL 13,806.0 15,219.7 10.2 25,478.6 20,380.6 -20.0

[14] IMF DELEGATION TO COME TO ANKARA ON SEPTEMBER 7

The IMF delegation headed by Turkey Desk Chief Juha Kahkonen will hold its meetings mainly at the Treasury Undersecretariat and it will also study at Central Bank, State Planning Organization (DPT), Finance Ministry, Privatization Administration and Banking Regulation and Superision Agency (BRSA) during its ten-day visit to Turkey.

The macro economic balances, domestic borrowing policy, the capacity of the rolling over of domestic debts, the domestic borrowing interest rates, developments regarding the sale of the banks at the Savings Deposit Insurance Fund (SDIF), the Treasury guarantee that will be provided to energy projects, developments regarding the financing of State Economic Enterprises (SEEs), preliminary preparations for 2002 budget and the situation of the real sector will be discussed during IMF delegation's visit.

Officials said that as the action plans that had to be undertaken by Turkey have been completed during the eighth review, there are no preconditions anymore and only the implementation will be monitored from now on.

The IMF Executive Directors Board's meeting to approve the tranche to Turkey can be held before September 29 or in the beginning of September 29 as the IMF-World Bank fall term meetings will be held at the end of September.

The value of the fourth credit tranche that will be given to Turkey after the approval of the IMF Executive Directors Board is around 3 billion U.S. dollars.

The IMF's eleventh review will take place in November.

IMF will also pay visits to Turkey in February, May, August and November 2002.

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