Anadolu Agency: News in English, 01-09-01

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ANADOLU AGENCY

NEWS

01 SEPTEMBER 2001

Saturday

-TURKEY-PRESS SCAN

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

HURRIYET (LIBERAL)

A person who witnessed the assassination of businessman Uzeyir Garih said that he was at the cemetery the day when Garih was killed. The witness said that two men rushed out of the cemetery and got on the car. The witness noted that the licence plate of the car was yellow and there were Arabic letters on thee licence plate. The witness stated that two men, wearing suits and ties, ran outside the cemetery and noted that the clothes of men were in disorder. The witness said that one of them were carrying a black plastic bag in his hand, adding that it was certain that there was a long and sharp thing in the bag.

ROW ON CONSTITUTION COSTED TOO MUCH

The crisis which started after the row at the National Security Council (NSC) meeting caused the highest shrinkage in Turkish economy since the World War II. Turkey's economy shrank by 15.3 percent in 1945. The growth rate in the second quarter of 2001 became -11.8 percent while the growth rate in the first half of the year was announced as -8.5 percent. The investments stopped. Agricultural sector shrank by 1.6 percent, industrial sector by 5l.2 percent, construction sector by 8.9 percent and trade by 8.3 percent.

MILLIYET (LIBERAL)

Public Works and Housing Minister Koray Aydin, who was revealed to trade with the contractors of the quake zone through the company he founded after he became the minister, said that he does not think of resignation. Aydin said, ''I asked for permission of Devlet Bahceli to respond to the allegations. However Bahceli told me that there was no need for this and said that we will give a different response altogether.''

CENTRAL BANK SELLS 60 MILLION U.S. DOLLARS

The Central Bank sold 60 million U.S. dollars in an auction it held on Friday to sell foreign exchange to banks. The average bid in the auction which the Central Bank held within framework of forex auctions program became 1 million 386 thousand 725 Turkish liras (TL). Maximum bid was 1 million 390 thousand TL and the minumum bid was 1 million 384 thousand TL.

SABAH (LIBERAL)

The European Basketball Championship began on Friday. Turkish national team beat Latvia 85-82 in its first match. Our national team will take on Slovekia at 7.00 p.m. today.

FOUR URGENT MEASURES FOR RE-GROWTH

Prime Minister Bulent ECevit said that a package which will ensure economic re-growth has been prepared and listed the new measures as follows: The source which will be provided by the sale of Treasury lands will be used to accelerate investments. Turkish-English documents will be sent to Turkish and foreign investors for the sale of enterprises which were closed during the crisis. It will be obligatory under the laws to finalize all the formalities in three months to give momentum to foreign investments. The authorities will ensure only the companies which are in bad condition and which seem to be able to overcome this bad situation, to pay their debts in installments.

CUMHURIYET (LEFT)

An International Monetary Fund (IMF) delegation will start its tenth review of the Turkish economy on September 7, Friday.

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.

OIL PRODUCTION 5.7 BARRELS

A total of 5.7 barrels of crude oil were produced in southeastern Adiyaman province and environs in eight months. The 90 percent of the oil was extracted by the Turkish Petroleum Corp. (TPAO). The 47.5 percent of the country production was made from 163 wells which are in 18 fields in Adiyaman, Sanliurfa, and Kilis.

RADIKAL (LEFT)

Another person died in death fasting which entered to the 317th day. Hulya Simsek, 39, who was in death fast in Kucukarmutlu, lost her life. Simsek started death fasting for her brother Zeynel Abidin who was in prison. Hulya Simsek was also taken into custody on December 19 following the ''Return to Life,'' operation, and had been sent to Kartal Prison.

TURKIYE (RIGHT)

The most serious crisis Turkey had experienced was proved with the figures of the State Statistical Institute (DIE). The importation tax, with 32 percent, got the biggest blow in Turkish economy which is face to face with a very big shrinking.

IRANIAN NATURAL GAS TO START IN SEPTEMBER

Natural gas flow will start from Iran to Turkey from the pipeline as of September in case the Iranian side fulfills the conditions. Officials of the State run oil pipeline company (BOTAS) said the Iranian side told them that they fulfilled to a great extend the technical conditions, and noted that the pipeline will start to operate as of September if the conditions are fully fulfilled.

ZAMAN (CONSERVATIVE)

Davut Cemal, the leader of the Antakya Jewish Society, claimed that businessman Uzeyir Garih might have been killed by a plot of those who were uneasy about Garih's efforts toensure social peace in recent days. Cemal noted that besides being a businessman, Garih was a person who contributed to inter-religious and inter-cultural dialogue and attributed importance to education. Cemal stated that the assassination of Garih seemed to be an earlier plotted one.

TENSE PREPARATION FOR PEACE DAY

Eleven police and 8 citizens were injured during the clashes which occured between the police and the members of the People's Democracy Party (HADEP) who wanted to go to Ankara upon the September 1 Peace Day.

CONTENTS

[01] UMRANIYE PRISON INCIDENTS CASE

[02] EBSO DELEGATION IN SUDAN

[03] FOREIGN CAPITAL IN GAP REGION

[04] CULTURE MINISTRY TO JOIN 14TH INTERNATIONAL BOOK FAIR

[05] KAVAK TO REPRESENT TURKEY IN IPU MEETING

[06] PRIME MINISTER ECEVIT (1):

[07] PRIME MINISTER ECEVIT (2): ''COMPANIES WHICH CAN OVERCOME

[08] PRIME MINISTER SAYS GOVERNMENT TO

[09] CETINKAYA TEXTILE COMPANY'S EXPORTS INCREASE 13.4 PERCENT

[10] GENDARMERIE FORCES INTERCEPT 56 FOREIGNERS IN DUZCE

[11] DEPUTY PRIME MINISTER BAHCELI SPEAKS AT CENTRAL

[12] FOREIGN TRADE UNDERSECRETARY VISITS IRAQI VICE-PRESIDENT

[13] BAHCELI DOES NOT COMMENT ON AYDIN'S RESIGNATION (2)

[14] TOURISM MINISTER TASAR MEETS SOUTH KOREAN MINISTER OF MARITIME

[15] POLICE CONFISCATE 77.7 KG HEROIN IN ISTANBUL

[16] FOREIGN TRADE UNDERSECRETARY SAYS THEY REQUESTED THAT

[17] TURKEY TO BE REPRESENTED IN IMF-WORLD BANK ANNUAL MEETINGS

[01] UMRANIYE PRISON INCIDENTS CASE

A case had been opened against the suspects on charges of ''armed revolt against prison administration,'' ''opposition to law no:6136,'' ''having explosive devices,'' ''participating in crimes like killing and wounding.''

The suspects, who attended the trial, said the prison was surrounded early in the morning on December 19, 2000 when the operation started.

The suspects said, ''gas bombs had been thrown to the wards. It was natural for those who were inside to defend themselves. We don't accept the accusations. We did everything to defend ourselves, and we absolutely did not use weapons.''

Meanwhile, three people were taken into custody in incidents which broke out between the police and the relatives of the suspects during the trial.

[02] EBSO DELEGATION IN SUDAN

The delegation headed by EBSO Executive Board Chairman Atil Akkan will hold contacts to further improve the economic relations with Sudan.

Akkan told reporters that the industrialists had earlier visited Bulgaria, Romania and Greece and that they had recently paid a visit to Egypt which ensured the trade volume between two countries to rise to 250 million U.S. dollars.

The industrialists are ready to cooperate and make investments in sectors like textile, ready-made cloth, manufacturing and spare parts.

Sudanese Deputy Minister of Industry and Investment Al Mahi Halafalla said that they want to promote economic and political relations with Turkey and pointed to the importance of the visit of Aegean industrialists to his country.

The delegation will return to Izmir on September 3.

[03] FOREIGN CAPITAL IN GAP REGION

Researches are being made for the Gapropark project, which is planned to be put to implementation by the Alarko Holding and some U.S. businessmen.

GAP Regional Development Administration Chairperson told A.A correspondent that three projects are on the way within the scope of foreign investments planned to be made in the region.

One of these projects is the Subor Pipe and Tube Factory. The project costs 18 million U.s. dollars and the factory has been built by the partnership of American Owen&Corning Co. Yapi Merkezi Inc, and Fernas Insaat Ltd. Sti.

Swiss businessmen invested in the GATEKS, a thread and textile factory. The Swiss businessmen possess 3 percent of GATEKS' shares.

Gapropark Project targets at training the farmers in the region within the scope of multilateral integrated agriculture project. The project also targets at providing new technology transfer and creating employment opportunities, and making agricultural production.

Meanwhile, Israeli Gadot Co. will cooperate with HYGEA company of Turkey and businessmen Cem Bozkurt and Mehmet Gunyeli to build a citric acid factory in Adiyaman. Turkish and foreign partners will have equal shares in the company.

Ozhan Kimya Sanayi, a company with 5 percent Italian partnership, produces detergents in Mardin.

There are 24 companies operating with foreign capital provided by Iraqi, Syrian, Saudi Arabian, Iranian and Spanish businessmen in Gaziantep.

Also, a construction material factory has started to operate by the partnership of SANKO Holding and Ytong.

[04] CULTURE MINISTRY TO JOIN 14TH INTERNATIONAL BOOK FAIR

A statement of the Culture Ministry said on Saturday that the Ministry will join the fair with 522 books in a stand of 27 square metres.

The books will be donated to the Turkish consulates and libraries at the end of the fair.

[05] KAVAK TO REPRESENT TURKEY IN IPU MEETING

The meeting will be opened by the speech of Inter-Parliamentary Council President Najma Heptulla on September 2.

Kavak released a statement in which he said that Turkish delegation had an active role in the preparation meeting of this parliamentary meeting and that the delegation exerted efforts to enable the conference serve the earlier determined aims.

Turkey is against the politization of the conference against racism which serve political interests and the inclusion of the name of any country in the action program or declaration, Kavak noted.

Kavak stated that the conference should deal with future rather than re- writing history, focus on fight against modern kinds of racism and xenophobia, find real reasons of racist attacks, xenophobia and ethnic discrimination.

Kavak will return to Turkey on September 4.

A delegation headed by Murat Sungar, Turkey's Permanent Representative to the United Nations (U.N) Geneva Office, is representing Turkey at the international conference on racism.

The conference will end on September 7.

[06] PRIME MINISTER ECEVIT (1):

Ecevit told a press conference that the decreasing trend in growth rate has to be stopped.

''We have to accelarete the growth process,'' Ecevit said.

Ecevit noted that he believes that the measures foreseen to be taken will speed up growth process in a short time.

[07] PRIME MINISTER ECEVIT (2): ''COMPANIES WHICH CAN OVERCOME

Ecevit told a press conference that ''We should not be a nation which consume foreign exchange, but we should be a nation which produces foreign exchange.''

To start a growth process in economy, using foreign exchange should be prevented and monetary policies should be developed, Ecevit said.

Ecevit noted that all these initatives are not enough and pointed out that production should be revived and businessmen should be encouraged to make investments.

Reminding reporters that the parliament had passed a law to sell the immovable lands belonging to the Treasury before it recessed, Ecevit said, ''this law is being put to implementation rapidly. A great deal of income will be provided in a short time. These sources will be used to better the economic situation of people with low-income and revive enterprises which are facing difficulties.''

Ecevit stated that Turkey has a number of natural resources but these resources are not utilized efficiently.

Turkey is a country of extraordinary wealth in respect of gold and silver, Ecevit said, and went on saying, ''however, some legal and social obstacles prevent the utilization of these resources. We have to overcome these obstacles.''

Ecevit noted that they are determined to continue anti-corruption efforts uninterruptedly.

They expect to ease making investments by the draft law on industrial zones, Ecevit stated.

Touching on the efforts to ease the inflow of foreign capital, Ecevit said, ''the main reason of the slowness of the entrance of foreign capital to Turkey is the buraucratic obtacles. Foreign institutions which want to invest in Turkey complain about it very much. A foreign institution has to apply to many places in order to make investment in Turkey. Sometimes, they have to wait for months or years to get a response for the application. This discourages the foreign investors. We have prepared a draft law to prevent this difficulty. When this law takes effect, those who want to make investment in Turkey will not have to apply many places. An absolute response will be given to them in three months.''

Pointing out that they also attributed great importance to the evaluation of foreign capital investments and the investments of the Turkish citizens living abroad, Ecevit stressed that they would launch initiatives to enliven the enterprises which were closed or had to limit their production.

Ecevit said as a preliminary preparation, he had sent letters to the governors' offices and wanted detailed presentation of the companies which could not be completed or which had to reduce production.

''There may be those who want to make investments there. There may be interests in this issue in foreign and business capital circles. May be most of them don't know where and how to make investments. As I stated before, I had sent letters to the governors' offices in this respect,'' Ecevit said.

Ecevit said he requested the governors to give a response within a week, adding that he also wanted to the governors to make a list of the companies which had to be closed and why they had to halt or limit their production.

While mentioning the campaign to promote Turkish lira, Ecevit said the campaign had been started by private sector, and described the situation as pleasing.

Stating that the campaign was appreciated, Ecevit said there was not an obstacle for the tourists to make their shoppings by paying U.S. dollars.

[08] PRIME MINISTER SAYS GOVERNMENT TO

Ecevit told a press conference that they should prevent the deficiencies in production and decrease in employment when they continue their anti- corruption efforts.

Responding to a question saying, ''you have said that initiatives to facilitate inflow of domestic and foreign capital will be launched. However, it is a fact that capital discrimination is made in Turkey. How can you overcome this,'' Ecevit said that such a discrimination is out of question.

Ecevit said that economy and trade have their own rules and added, ''particularly, we have to obey the rules of market economy. There should not be any hesitations about this matter.''

When claimed that the Nationalist Movement Party (MHP) perceives the operation on the tenders of the Public Works and Housing Ministry as a response to the operation on the energy tenders, Ecevit said that the government has fought against corruption and will continue its anti- corruption efforts.

Ecevit added, ''nobody should have a doubt about this matter. We will continue our anti-corruption efforts efficiently.''

When a reporter reminded him about the words of Deputy Prime Minister Devlet Bahceli that the Prime Ministry Inspection Board should debate all the complaints in public institutions and organizations, Ecevit said, ''this board is working very efficiently. A few investigation documents are being presented to me every week for signature. The board is very sensitive about the matter and will continue to be so.''

Asked if they think of converting 50 U.S. dollar fee taken from Turkish citizens going abroad into Turkish lira, Ecevit said that some problems may be faced in implementation and that these problems wil be reviewed one by one as they occur.

''We will bring some measures if necessary. The state did not launch the campaign to promote Turkish lira, it was private sector. This is very pleasing. The private sector may meet some problems in implementation stage. We will evaluate them one by one and try to find a solution,'' Ecevit said.

When recalled that suspect of killing of businessman Uzeyir Garih could not be captured although one week passed, Ecevit said, ''sometimes capture of such suspects may last for months or years. However, it is obvious that security department works intensly. This may take time.''

When a journalist said, ''you have stated that entrance to industry regions would be facilitated, and you have noted that a draft law was prepared in this respect. Will this draft law be discussed in Council of Ministers,'' Ecevit said, ''it will be taken up in Council of Ministers. We will attribute a special importance to the capital which will come from abroad to Turkey.''

Responding to a question that the Treasury asked the National Intelligence Organization (MIT) if the companies which applied to get incentives are reliable or not, Ecevit said, ''of course any institutions, which does not have any legal obstacle to invest in Turkey, may apply within principles and legal facilities. We should support those investments.''

When a journalist stated that there were pressures on Koray Aydin, the Settlement and Public Works Ministry, to resign, Ecevit said he did not find appropriate to say something.

When asked if resignation of Aydin would be appropriate, Ecevit said that was an issue which the Nationalist Movement Party (MHP) should discuss.

[09] CETINKAYA TEXTILE COMPANY'S EXPORTS INCREASE 13.4 PERCENT

Cetinkaya Textile Factory Director Huseyin Safak told A.A correspondent on Saturday that the company obtained 22 million 692 thousand 569 U.S. dollars from its exports in first seven months of this year.

Safak said that they exported their products to Germany, Italy, Spain, Portugal and the U.s.

Thread and home textile were the main export products, Safak noted, adding that they target at obtaining 40 million U.S. dollars from their exports by the end of this year.

[10] GENDARMERIE FORCES INTERCEPT 56 FOREIGNERS IN DUZCE

Gendarmerie forces captured 20 Afghans, 35 Pakistanis and 1 Bangladeshi in a bus at Golkaya toll collection gates.

The detainees were heading for Istanbul to work.

[11] DEPUTY PRIME MINISTER BAHCELI SPEAKS AT CENTRAL

Bahceli wanted Prime Minister Bulent Ecevit to give directives to the Prime Ministry Inspection Committee to assess all the tip-offs and complaints about all the public institutions and organizations.

When asked about the private commercial relations of Koray Aydin, the Settlement and Public Works Minister, Bahceli said, ''I believe that the minister will adjust his position regarded with the private commercial relations.''

Speaking before the Central Administration Board meeting of the Nationalist Movement Party (MHP) in Kizilcahamam township, Bahceli briefed about the operation which was launched against the tenders in Settlement and Public Works Ministry.

Bahceli said the ministry should expend every kind of facilities to the DGM prosecutor regarded with the operations launched against various units of Settlement and Public Works ministry. Bahceli said, ''I think it will be very beneficial to activate Prime Ministry Inspection Board and State Monitoring Board when necessary regarded with all the allegations that were put forward.''

Bahceli wanted the ministers from his party to examine all the complaints and tip offs within the framework of fight against corruption and do what was necessary.

Pointing out that they were obliged to clean the state from corruption, Bahceli said whoever got involved in corruption should be revealed.

Bahceli, who evaluated killing of businessman Uzeyir Garih, pointed out that the suspects would be captured soon and sent to justice.

Bahceli said security forces and media had announced an 13-year old boy as the murderer of Garih by basing on some rumours, and without any evidence, noting that announcing people as criminal would be to ignore democracy, human rights and supremacy of law.

Pointing out that security forces and media should be sensitive to this end, Bahceli said it was important to give correct information to public.

[12] FOREIGN TRADE UNDERSECRETARY VISITS IRAQI VICE-PRESIDENT

During the meeting, Ramazan said that commercial and economic relations between Turkey and Iraq are developing and that the promotion of relations will be beneficial to both nations.

Ramazan noted that Iraq provides significant possibilities to Turkish companies.

Later, Iraqi Deputy Prime Minister and Minister of Finance Hikmat Mizban Ibrahim al-Azzawi received the delegation headed by Tuzmen.

Al-Azzawi said that Iraqi-Turkish cooperation is developing every day and that Iraq welcomed the results reached by the Iraqi-Turkish Joint Commission, which convened in Ankara the previous days.

He will extend every kind of support to promote commercial relations, AL- Azzawi noted.

Meanwhile, Iraqi Minister of Oil Amir Rashid Muhammad al-Ubaydi attended the seminar organized by Turkish businessmen.

Al-Ubaydi said that Iraq exerts utmost efforts to further improve relations with Turkey.

[13] BAHCELI DOES NOT COMMENT ON AYDIN'S RESIGNATION (2)

Responding to questions of reporters, Bahceli said that his party will fulfil its responsibilities.

They expect the preliminary investigation into the operation against the Public Works and Housing Ministry tenders to be finalized, Bahceli noted.

Bahceli said, ''we are trying to determine our attitude and behaviours calmly and patiently. I also advise everybody to behave in the same way at this stage.''

Asked if he had a meeting with Aydin about a change in Aydin's commercial relations, Bahceli said that he drew Aydin's attention after the matter was published and broadcast by press organs.

When asked if it is ethically true for Aydin's companies to continue to operate as Aydin is the minister, Bahceli said, ''the Nationalist Movement Party has some views which had earlier been voiced. We had said ''either trade or politics.' There is not any sign that our minister has an active role in trade although it has commercial enterprises.''

Bahceli responded in negative to a question if the clean politics image of MHP has been damaged by this operation.

[14] TOURISM MINISTER TASAR MEETS SOUTH KOREAN MINISTER OF MARITIME

Following the meeting, Tasar told reporters that he told the South Korean minister that 36 thousand Turkish people visit South Korea every year.

Tasar said that they wish to share their experiences with South Korea.

Pointing to the importance of initiatives to promote friendship between countries, Tasar thanked South Korea for its help to Turkey following two devastating earthquakes of 1999.

The South Korean minister exchanged views with Tasar about EXPO 2010 International Fair during their meeting.

[15] POLICE CONFISCATE 77.7 KG HEROIN IN ISTANBUL

Officials at Narcotic Directorate said on Saturday that police, acting on a tip-off, learnt that a great deal of drug was brought to Turkey illegally and planned to be sent to the Netherlands by a truck.

Police raided on the truck and confiscated 77.7 kilograms of heroin hidden in the truck.

Six people were detained in the operation.

[16] FOREIGN TRADE UNDERSECRETARY SAYS THEY REQUESTED THAT

Tuzmen, who was received by Iraqi Vice-President Taha Yasin Ramadan, told A.A correspondent following the meeting that their meeting was very fruitful.

Ways to further improve commercial relations between Turkey and Iraq are being searched, Tuzmen said.

Tuzmen noted that Ramadan told them that they are in favour of permanent bilateral relations with Turkey.

Ramadan responded in affirmative to their request, Tuzmen stated.

Tuzmen said that Iraq reached a deal with Syria to transport load between Iraq and Turkey by train.

They wish that regular train voyages between two countries will be launched as soon as possible, Tuzmen stated.

Tuzmen pointed out that Ramadan also wished that second border gate will be opened soon, adding that Iraqi officials assumed a positive attitude towards trade with Turkey.

[17] TURKEY TO BE REPRESENTED IN IMF-WORLD BANK ANNUAL MEETINGS

Treasury Undersecretary Faik Oztrak, Central Bank Governor Sureyya Serdengecti, and officials from Finance Ministry, Privatization Administration Board, and Banking Regulation and Supervision Authority (BRSA) will be included in the delegation.

The Turkish delgation will visit Washington D.C. a few days before the meetings start, and will also stay in the city a few more days and hold contacts following the meetings.

Recent developments in Turkish economy and investment facilities will be conveyed to the international finance institutions, bankers and investors during the contacts.

Private meetings and presentations will take place about Turkey before and after the IMF-World Bank meetings.

A special importance will be attributed to Turkey and Argentina during this year's meetings.

Meanwhile, it was reported that Juha Kahkonen, the IMF Turkey Desk Chief, will attend the meetings which will take place in London in September 17 and 18 where State Minister Dervis and economy bureaucrats will attend. The meetings are organized by Foreign Economic Relations Committee (DEIK).

Information will be given to investment banks regarded with the new arrangements which are accepted in foreign capital regulations.

The IMF delegation, led by IMF Turkey Desk Chief Kahkonen, will visit Turkey on September 7, and start works within the framework of 10th review.

The economy units started works regading the macro-economic estimations of end of year and next year before the IMF delegation's visit this week.

Officials at the Central Bank, State Planning Organization (DPT) and Finance Ministry are attending the initiatives at the Treasury Undersecretariat.

Macro economic estimations of IMF experts and the figures of the economy bureaucrats will be compared during IMF delegation's visit to Turkey.

Within the framework of the visit of IMF delegation headed by Kahkonen, nine-month performances, last quarter targets, budget of 2002 and macro- economic estimations for the following year will be debated.

Domestic borrowing policy and their interest rates, developments regarding the sale of Savings Deposit Insurance Fund (SDIF)-banks, Treasury guarantee to be provided to energy projects, progress in finance of State Economic Enterprises (SEEs), preparations for budget of 2002, and the situation of real sector are the other issues on the agenda of IMF's contacts.

The contacts will be mainly held at the Treasury Undersecretariat while the IMF delegation may go to the Central Bank, DPT, Finance Ministry, Privatization Administration, and the Banking Regulation and Supervision Authority (BRSA) to receive information.

Also, the initiatives related with the general balance of the SEEs have been launched at the Treasury.

The investment and financing programs of almost 40 SEEs are being taken up during the meeting.

The IMF delegation is expected to spend almost ten days in Turkey while sources emphasize that the IMF Executive Board will hold its meeting in which it will discuss the release of loan to Turkey at the beginning of October due to IMF-World Bank annual meetings.

The amount of loan that will be extended to Turkey is around 3 billion U.S. dollars.

The IMF delegation will pay another visit to Turkey in November for the 11th review.

The IMF will continue its visits to Turkey in 2002, starting in February and going on in May, August and November.

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