Anadolu Agency: News in English, 01-09-29

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ANADOLU AGENCY

NEWS

29 SEPTEMBER 2001 Saturday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] STATE MINISTER GUREL LEAVES FOR ROMANIA

[03] CHIEF PROSECUTOR KANADOGLU DUE TO ALBANIA

[04] CEM TO VISIT WRECKAGE OF TWIN TOWERS OF WTC

[05] FIRST ACTIVATION OF BLACKSEAFOR

[06] TOURISM MINISTER TASAR ATTENDS 14TH GENERAL ASSEMBLY

[07] BRIEFING HELD AT CANKAYA PRESIDENTIAL PALACE (1)

[08] HES EXPORTS GOODS OF 42 MILLION U.S. DOLLARS

[09] MEASURES AGAINST TERRORIST ACTS IN STRAITS

[10] TURKISH AMBASSADOR HAKTANIR RESPONDS TO THE GUARDIAN

[11] STATE MINISTER KECECILER SAYS 250 KG OF HERION SEIZED

[12] AMERICAN BELL FIRM PROPOSES COOPERATION WITH TAI

[13] BRIEFING HELD AT CANKAYA PRESIDENTIAL PALACE (2)

[14] IMF SAYS TURKEY SHOULD NOT MAKE ANY MANEUVER IN BUDGET POLICY

[15] FOREIGN MINISTER CEM TO MEET GERMAN FOREIGN MINISTER FISCHER

[16] BRIEFING HELD AT CANKAYA PRESIDENTIAL PALACE (3)

[17] PANEL DISCUSSION HELD ON LATEST SITUATION IN

[18] CUSTOMS UNDERSECRETARY SAYGILIOGLU SAYS FIVE PEOPLE WERE

[19] DOMESTIC BORROWING STRATEGIES

[20] STATE MINISTER KECECILER SAYS NUMBER OF DETAINEES

[21] PANEL DISCUSSION HELD ON LATEST SITUATION IN

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

PARLIAMENT ACCEPTS CONSTITUTIONAL AMENDMENT PACKAGE
The Parliamentary General Assembly accepted 36 articles of the 37-article constitutional amendment package. Only Article 32 of the constitutional amendment package could not get the necessary vote (330) for its approval at the Parlaimentary General Assembly. Article 32 foresees amendment to Article 90 of the Constitution. Under Article 32 of the amendment package, international agreement is taken as a basis if it contradicts with the laws. This article will be put to second vote to gain three-fifths (330) majority of votes for its approval. The article will be annuled if it fails to get 330 votes in the second round.

BOMB-ATTACK ON MCDONALDS
A bomb left in toilet at a McDonald's branch in Levent district of Istanbul exploded, injuring two people. The time-bomb caused major damage to the restaurant. One of the injured people was identified as Abdullah Feyyazi of Iranian origion.

MILLIYET (LIBERAL)

ASIK RESIGNS FROM ANAP
Eyup Asik, a deputy of the Motherland Party (ANAP) from Trabzon province, resigned from his party.

SEZER INVITES PRESIDENT MUBARAK OF EGYPT TO TURKEY
President Ahmet Necdet Sezer launched an initiative to create an atmosphere of cooperation among regional countries in fight against terrorism. He held telephone conversations with presidents of Pakistan, Azerbaijan, Kyrgyzstan, Egypt and Russia. President Sezer invited President Hosni Mubarak of Egypt to Turkey.

TWO MORE PEOPLE DIE IN DEATH FASTS
Ozmen Durakcan and Ayse Bastimur who had been fasting to death in order to protest F-type prisons died yesterday. Death toll increased to 40 in death fasts.

SABAH (LIBERAL)

PEARSON: ''WE ARE STARTING A NEW WAR AGAINST TERRORISM''
U.S. Ambassador to Turkey Robert Pearson said that they would start a new, difficult and costly war against terrorism after the terrorist attacks on September 11, adding, ''we can't fail and we are obliged to win.'' Pearson said that terrorist attacks on September 11 meant attack on all civilized societies. Stressing that citizens of 80 countries had been killed in the terrorist attacks, Pearson said that those who staged attacks targeted whole world. ''We can't lose and we are obliged to win. We should eradicate this mentality which killed thousands of innocent people. We will win this war and we will never forget it,'' he said. Noting that they were touched by Turkey's support after the attacks, Pearson said this proved close relations between Turkey and the United States.

ECEVIT: ''TALIBAN CONSTITUTES SERIOUS THREAT FOR WHOLE WORLD''
Prime Minister Bulent Ecevit said that the Taliban regime in Afghanistan constituted an extremely serious threat for the whole world, adding that ''I believe that it will be useful if the operation would continue until the regime in Afghanistan changes.'' Ecevit said that the terrorist attacks in the United States negatively affected the world economy, adding that ''Turkey was going through a difficult time and after these attacks, it is seen that the economic difficulties in Turkey will continue for a certain period of time.''

CUMHURIYET (LEFT)

TURK IN BRUSSELS
Justice Minister Hikmet Sami Turk represented Turkey at the meeting of interior and justice ministers of member and candidate countries to the European Union (EU) in Brussels. Holding a press conference, Turk said, ''some member countries to the EU could not record a concrete progress in putting an end to support to terrorist organizations.''

TRADE DEFICIT DECREASES
Turkey's foreign trade deficit decreased to 18.7 billion U.S. dollars as of end-July. Turkey exported 29 billion 250 million U.S. dollars and imported 47 billion 988 million U.S. dollars of goods. Rate of exports meeting imports increased to 61 percent.

RADIKAL (LEFT)

CAMPAIGN TO SUPPORT LIRA ABANDONED
Ankara Chamber of Commerce Chairman Sinan Aygun said that they gave up the campaign to encourage confidence in the lira currency because nobody was listening. He said that he would return Prime Minister Bulent Ecevit's official certificate of approval as he had not got the support he wanted from state bodies and had seen the lira slide from 1,358,000 to the dollar to over 1,500,000 since he started the campaign.

TURKIYE (RIGHT)

ZAMAN (CONSERVATIVE)

AFGHAN OPPOSITION LEADER COMES TO TURKEY
Afghanistan's Young Justice Party leader Sayed Hussein Ali Bamyani and his supporters took shelter in Turkey. Holding a press conference in eastern province of Van, Bamyani asked Turkish officials to help him.

[02] STATE MINISTER GUREL LEAVES FOR ROMANIA

Responding to questions of journalists at Istanbul's Ataturk Airport prior to his departure, Gurel said that he would hold talks with Romanian Foreign Minister, representatives of Turkish associations and with Turkish businessmen in Romania.

Noting that he would proceed to Constanta after wrapping up his contacts in Bucharest, Gurel told reporters that he would listen to problems of nearly 15 thousand Turkish people living in Romania.

Gurel is expected to return to Turkey on Monday.

[03] CHIEF PROSECUTOR KANADOGLU DUE TO ALBANIA

Sources said that four prosecutors of the Supreme Court of Appeals will accompany Kanadoglu during his visit to Albania.

Kanadoglu is scheduled to meet Albanian Justice Minister and Chief Judge of Albanian Supreme Court of Appeals.

Kanadoglu and accompanying delegation are expected to return to Turkey on Thursday.

[04] CEM TO VISIT WRECKAGE OF TWIN TOWERS OF WTC

New York Mayor Rudolph Giuliani is expected to accompany Cem.

Meanwhile, Cem will proceed to German capital Berlin after wrapping up his contacts in Washington D.C. and New York on Sunday.

Cem who will pay a two-day visit to Germany, is scheduled to meet his German counterpart Joschka Fischer.

Cem will deliver a speech at a meeting that will be organized by a German think- tank organization, and explain Turkey's opinions about the European Security and Defense Identity (ESDI).

Defense ministers of France and Germany will also be in attendance at the meeting.

Cem will also attend a meeting that will be organized by Turkey-European Union Forum.

He is expected to return to Turkey on Tuesday.

[05] FIRST ACTIVATION OF BLACKSEAFOR

The vessels departed from Istanbul yesterday under the command of BLACKSEAFOR Commander Admiral Nusret Guner.

BGS Smeli of Bulgaria, GEO Kutaisi of Georgia, RON Macellariu of Romania, RFS Zheleznyakov of Russia and UPS Cherkasy of Ukraine are participating in the first activation under the leadership of TCG Fatih of Turkey.

Admiral Guner and commanders of the vessels will pay visit of courtesy to the Mayor of Varna and to the Bulgarian Naval Forces Commandership.

BLACKSEAFOR was formed with the participation of the Black Sea littoral countries, for the maintenance of peace and stability in the Black Sea and to increase regional cooperation activities and to fulfil several duties like search and rescue, humanitarian aid, and environmental protection and to pay visits to the harbours.

BLACSEAFOR which will contribute to the strengthening and development of friendship and cooperation between the naval forces of the member countries was formed in accordance with an agreement signed in Istanbul on April 2, 2001 with the initiative of Turkey and participation of Black Sea littoral countries Georgia, Bulgaria, Russia, Ukraine and Romania.

-INTERNATIONAL PHOTOGRAPHY EXHIBITION TO BE OPENED IN KAMAN
KAMAN - An international photography exhibition will be opened in Kaman township of central province of Kirsehir on September 6.

Kaman Mayor Yusuf H. Canpolat told the A.A correspondent on Saturday that the exhibition would be comprised of a total of 120 photographs taken by 15 photographers from different countries.

Noting that exhibition would be organized in cooperation between Kaman Municipality and its sister city Zaanstad Municipality in the Netherlands, Canpolat said that photographs of Hanze Boekhout, Andrew Curling, Leo Divendal, Jean-Louis Garnell, Nikolaus Geyer, Ellen Kooi, Eva Leitolf, Betien van Manen, Aydan Murtezaoglu, Bulent Sangar, Bester Ndoro, Ebru Ozsecen, Florence Paradeis, Franz Wamhof and Andre Zelck would be displayed in the exhibition.

The exhibition will remain open till January 31, 2002.

Later, the exhibition will be opened in Mutare, Zimbabwe; Angers in France; Osnabrueck and Zwickau in Germany; and in Zaanstad and Haarlem in the Netherlands.

[06] TOURISM MINISTER TASAR ATTENDS 14TH GENERAL ASSEMBLY

Tasar and accompanying delegation proceeded from Germany to Japan.

Tasar partook in a luncheon hosted in honor of heads of delegations by Japanese Land, Infrastructure and Transport Minister Chigake Oogi.

He also held a series of bilateral and multilateral contacts in which he exchanged views about the future of tourism.

At the contacts, it was stressed that tourism was the most influential way to fight against illegal activities like terrorism.

Delegates from 60 countries attended the 14th General Assembly of the World Tourism Organization.

At the end of the general assembly, a declaration was accepted to condemn terrorism.

Tasar and accompanying delegation will proceed from Osaka to Tokyo on Sunday.

Tasar will attend inauguration of Japanese painter Toyamasu's exhibition.

He is scheduled to meet Oogi and Japanese Travel Agencies Association Chairman Toshihiro Nikai on Monday.

Tasar and accompanying delegation are expected to depart from Japan on Tuesday.

[07] BRIEFING HELD AT CANKAYA PRESIDENTIAL PALACE (1)

Holding a press conference at the Cankaya Presidential Palace, Presidency Foreign Affairs Chief Advisor Tacan Ildem said on Saturday that President Sezer called Russian President Putin on the phone.

''During the telephone conversation, President Sezer and President Putin exchanged views over the developments in the wake of the terrorist attacks on September 11, 2001, and international cooperation against terrorism,'' he said.

Ildem told reporters that President Sezer had invited President Putin to Turkey.

Ildem quoted President Putin as saying that he would keep an official visit to Turkey high on his agenda.

He added, ''President Sezer also held a telephone conversation with President Shevardnadze of Georgia. The two leaders took up the issues of international cooperation against terrorism, and President Shevardnadze's visit to Azerbaijani capital Baku.''

[08] HES EXPORTS GOODS OF 42 MILLION U.S. DOLLARS

HES Deputy Director General Adem Ozcan Gundogdu said on Saturday that their exports increased by 133 percent compared to same period last year.

''We have exported 60 percent of our total production. We exported fibre optics, energy and telephone cables and enameled bobbin wires worth of 42 million U.S. dollars to 45 countries from the Far Eastern countries to the United States. We aim at increasing our exports up to 60 million U.S. dollars till the end of the year,'' he added.

[09] MEASURES AGAINST TERRORIST ACTS IN STRAITS

In the letter, it explained necessary measures against possible terrorist attacks and made recommendations.

According to the letter, all aircrafts planning to carry out aerobatics flights over the Straits should earlier get approval also of the Maritime Undersecretariat; necessary measures on both sides of the Straits will be taken against possible attacks on vessels carrying hazardous substances; and all ports, docks, quays, dockyards, marines, ports of oil discharge and all facilities and enterprises operating in sea transportation field will be on alert.

The letter said, ''first of all, every unit should get prepared against possible acts and they should immediately convey the information and documents they have to security units. All aircrafts planning to carry out show flights over the Turkish Straits should get permission also from the Maritime Undersecretariat. All information about every flight will be conveyed to security units before the flights. Information about the vessels carrying hazardous substances will be presented to governor's offices of Istanbul and Canakkale and Security Directorate General. Strict control will be imposed to all vessels entering and exiting the ports in Straits and information about these vessels will be conveyed to security units. Vessels passing the Straits will be encouraged to take guide captains and tug boats. All companies operating in maritime field in Istanbul, Marmara, Aegean, Mediterranean and Black Sea regions will be on alert and they should show utmost care in selection of crew members and they should inform the security units about the suspicious matters. Necessary measures will be taken in both sides of the Straits against possible attacks from land on vessels passing the Straits with hazardous substances.''

[10] TURKISH AMBASSADOR HAKTANIR RESPONDS TO THE GUARDIAN

In his response, Haktanir said, ''what your article has attempted to do (Turkish Cypriots turn against Turkey, September 25) seems as outrageous as claiming 'Britons turn against the United States' on the basis of the provocative comments by Omar Bakri and Abu Hamza, who have reportedly welcomed the terrorist attacks on the United States. It's never difficult to discover individuals or groups in any country who may wish to express their dissatisfaction in language which may strike the public as far- fetched.''

Haktanir said, ''your attempt to discover the general sentiment in the Turkish Republic of Northern Cyprus (TRNC) vis a vis Turkey has grossly misrepresented the facts.''

''You might have looked at the Greek Cypriot side, and tried to explain why Greece organized a military coup on the island on July 15 1974. Those policies of annexation are of interest now since the unilateral European Union process with the Greek Cypriots may lead them into union with Greece through the back door, and the eastern Mediterranean into turmoil. The Turkish Cypriots can be excused for not wishing to play a part in such a farce at the expense of their security or freedom,'' he added.

[11] STATE MINISTER KECECILER SAYS 250 KG OF HERION SEIZED

Kececiler told reporters that security forces stopped and searched the truck which was on its way from Iran to Turkey, and that they impounded 250 kg of herion hidden in secret parts of the vehicle.

He added that the market value of the drug was nearly 5 trillion Turkish liras.

[12] AMERICAN BELL FIRM PROPOSES COOPERATION WITH TAI

Releasing a statement, the TAI said on Saturday that Bell Helicopter Textron Inc. had proposed cooperation with the TAI to carry out marketing and production of the UH-1Y helicopters regarding the 36 general-purpose helicopters required by the Malaysian Air Forces.

The statement said that the proposal envisaged production of components of 36 general-purpose helicopters by TAI and Bell firms, and final assembly of the helicopters in Malaysia.

According to the statement, 16 assault helicopters which Malaysia plans to purchase, could be included in the scope of the cooperation.

[13] BRIEFING HELD AT CANKAYA PRESIDENTIAL PALACE (2)

Holding a press conference at the Cankaya Presidential Palace, Ildem said, ''President Sezer and President Putin have reached a full consensus of opinion that activities in fight against international terrorism should not lead to misunderstandings about differences among religions.''

Recalling that President Sezer had an opportunity to held a bilateral contact with Russian President Putin at the United Nations' Millennium Summit in September of 2000, Ildem told reporters that the two leaders had discussed all bilateral and international matters in detail.

''This time, President Sezer held a telephone conversation with Russian President Putin following the terrorist attacks in the United States on September 11, 2001. The leaders exchanged views over the developments in the wake of the terrorist attacks, and international cooperation against terrorism. Sezer told Putin that terrorism, the biggest problem of the humanity and the world, could be eradicated only through an influential and international cooperation. He also stressed that a cooperation between Turkey and the Russian Federation would make an important contribution to these efforts,'' he said.

Ildem said, ''President Sezer noted that the necessary legal structure existed between Turkey and the Russian Federation in fight against terrorism. He said that this cooperation constituted an important dimension of bilateral relations between the two countries. As you know, fight against terrorism takes place in the Action Plan for Cooperation in Eurasia envisaged to be signed between Turkey and Russian foreign ministers. President Putin told President Sezer that the Russian Federation had the political will to further improve high-level relations with Turkey. Putin said that the declaration signed in 1999 constituted an adequate frame for cooperation in fight against terrorism.''

Ildem noted, ''President Sezer and President Putin have reached a full consensus of opinion that activities in fight against international terrorism should not lead to misunderstandings about differences among religions.''

Noting that people from different religions lived in the Russian Federation, Ildem said, ''President Putin said that they attributed great importance to continuation of this atmosphere of tolerance.''

Pointing out that other bilateral issues were also taken up during the conversation, Ildem said, ''the sides considered the Blue Stream Project as an examplary and concrete draft in further improvement of cooperation between the two countries.''

Ildem told reporters that President Sezer had invited President Putin to Turkey, and quoted President Putin as saying that he would keep an official visit to Turkey high on his agenda.

Recalling that President Sezer had also held a telephone conversation with President Eduard Shevardnadze of Georgia, Ildem said, ''President Sezer told President Shevardnadze that a worldwide joint movement had been formed against terrorism, and that Turkey attributed great importance to eradication of international terrorism.''

''During the conversation, President Sezer underlined importance of international cooperation and solidarity in fight against terrorism, and added that Turkey would do its utmost to contribute to these efforts. President Sezer also referred to importance of protection of regional stability and security. President Shevardnadze told President Sezer that Georgia would participate in fight against international terrorism by mobilizing all of its opportunities,'' he stressed.

He said that the sides expressed their satisfaction over the progress recorded in the Akdag-Baku-Tbilisi-Ceyhan pipeline.

Ildem added that President Shevardnadze invited President Sezer to Georgia.

[14] IMF SAYS TURKEY SHOULD NOT MAKE ANY MANEUVER IN BUDGET POLICY

Brekk said that Turkey overcame the current difficulties as long as it remained true to the original budget targets and program.

Odd Per Brekk answered question of the A.A correspondent.

Responding to a question about possibility of a supplementary IMF source to Turkey, Brekk said that Turkey had not made any request to the IMF for a supplementary financial source.

Turkish officials were expected to request extension of repayment of loan which Turkey got within framework of Supplementary Reserve Facility, for up to one year in Washington D.C. where they would hold second round talks within framework of the 10th Review, Brekk said.

If the IMF Executive Directors Board approved such an extension, there would not be any postponement in repayment as long as Turkey remained strictly true to the conditions of the original deal, he said.

Their opinion about the real sector was that additional measures at microeconomic level which targeted to strengthen the market could be taken within framework of the general strategy of the program, he said and continued that within framework of the measures to assist the real sector, the government was focusing on a series of measures also including techninal support of the World Bank.

Brekk said that all of the measures which would be taken for the real sector would be transparent and well-targeted measures which remained within the currently existing budget targets and which would not allow a return to structural reforms.

Regarding domestic borrowing and interest rates, Brekk said that Turkey should first of all continue the sound economic program without making any concession, decreasing the interest rates and reducing the government's borrowing requirement.

He said that the government had managed so far to continue domestic debt servicing as a result of the powerful finance policy.

Noting that a public sector non-interest surplus targeted by the government in 2001 as 5.5 percent of the gross national product was feasible, Brekk said that domestic debt swap was very beneficial for extension of maturity of domestic borrowings and going into debt more than it needed, adding that the government's complete loyalty to the program would consolidate confidence of creditors and investors.

When asked when Turkey would be able to completely start the inflation targeting, Brekk said inflation targeting was necessary for the economic program, adding that the Central Bank Law was the first important step which granted the Bank complete independence regarding protection of price stability.

Odd Per Brekk said that Central Bank was getting prepared for strengthening of its economic analysis capacity and had actually given the start for an unofficial inflation targeting implementation by means of interest rates.

Noting that floating foreign currency regime was the only realistic and feasible alternative implementation within framework of the current conditions, Brekk said that according to experiences in other countries, the official inflation targeting should be backed by a floating foreign currency regime for its success.

When asked why the decision on continuation of talks within framework of the 10th Review in Washington D.C. with the IMF had been taken, Brekk said that they had earlier had a consensus of opinion that talks would start in Ankara and continue in Washington D.C. after the IMF-World Bank meetings, adding that Turkish officials had decided to come to Washington D.C. in the shortest period of time and continue talks after the IMF-World Bank meetings had been cancelled.

Odd Per Brekk said that talks of the Turkish delegation in Washington D.C. would give the opportunity of discussion on the economic program also with IMF First Deputy Managing Director Anne Krueger.

Regarding the effects of the terrorist attacks in the United States, Brekk said that those attacks would have negative effects also on Turkey but it was early to evaluate its effects.

Brekk said that Turkey's export and tourism revenues could decrease and Turkey could face difficulties in borrowing from international markets due to those attacks.

Brekk said that developments like floating currency, balancing of foreign exchange positions of banks, formation of a more sound banking system and creation of currenct balance surplus had increased flexibility of Turkey's economy to external factors, stressing that this flexibility included factors which could reduce negative effects of external developments on Turkey's economy.

Regarding Turkey's external borrowing opportunities, Brekk said that Turkey's position of borrowing from international markets would become more clear after the Turkish officials' contacts with investors at foreign markets.

[15] FOREIGN MINISTER CEM TO MEET GERMAN FOREIGN MINISTER FISCHER

He is scheduled to meet with German Foreign Minister Joschka Fischer in Berlin on Monday.

The meeting is expected to focus on fight against terrorism.

Releasing a written statement, the German Foreign Affairs Ministry said on Saturday that Cem and Fischer would come together at a luncheon to take up the issues of international cooperation against terrorism, recent developments in the Middle East, reforms made by Turkey in European Union full membership process, and relations between Turkey and Germany.

Cem will inform Fischer on his contacts in the United States.

Cem and Fischer will hold a joint press conference at the end of their meeting.

Cem will hold a press conference at Berlin's Four Seasons Hotel on Tuesday to inform Turkish journalists on his contacts both in the United States and in Germany.

[16] BRIEFING HELD AT CANKAYA PRESIDENTIAL PALACE (3)

Ildem responded to questions of journalists at the end of the press conference at the Cankaya Presidential Palace.

When asked whether or not President Sezer would sent a message to President Pervez Musharraf of Pakistan through State Minister Sukru Sina Gurel who would pay a visit to Pakistan in coming days, Ildem said, ''it is not clear for the time being.''

When asked, ''can we consired President Sezer's telephone conversations with regional leaders as the first steps of Turkey's pioneership in an international cooperation in fight against terrorism?'' Ildem told reporters, ''the most important thing is that each country should fulfil its responsibilities. Turkey suffered much from terrorism in the last 15 years. Turkey wants to make contribution to international fight aiming at eradicating terrorism. It does not claim any pioneership. The most important thing is to eradicate terrorism altogether.''

When asked whether or not President Sezer planned to share his impressions about these conversations with U.S. President Bush, Ildem said, ''I cannot say anything at this point. In fact, we communicate with the United States in all channels. This communication could be a telephone conversation between President Ahmet Necdet Sezer and U.S. President George W. Bush or exchange of views between diplomatic organs.''

Responding to another question, Ildem said, ''Prime Minister Bulent Ecevit was informed on President Sezer's telephone conversations with leaders of regional countries. Turkey's initiatives and attitude within framework of efforts expended in fight against terrorism, are being determined in coordination among relevant institutions.''

When asked whether or not the issue of Chechnya was brought onto agenda during the telephone conversation between President Sezer and President Putin, Ildem told reporters, ''no. As you know, the Russian Federation welcomed Turkey's official attitude. Turkey is in favor of finding a peaceful political solution in accordance with Russia's territorial integrity and constitutional order.''

Responding to another question Ildem told reporters, ''on numerous occasions, the United States said that Afghan people would not be targeted. On the contrary, a possible operation can be a great opportunity to put an end to Afghan people's long-standing suffer. Meanwhile, Turkey stressed that humanitarian aid should be sent to Afghan people without any delay. There is not any difference of opinion among countries that will participate in the international cooperation against terrorism.''

[17] PANEL DISCUSSION HELD ON LATEST SITUATION IN

''Both Greek Cypriot side and Greece tried to reach their targets by putting pressure on Turkish Cypriots, but they failed. Now they want to reach their targets under the title of EU membership. The Greek Cypriot side aims at destroying Turkey's rights in Cyprus by becoming a full member of the EU,'' he emphasized.

Referring to overnight's dinner held at the Cankaya Presidential Palace with the participation of President Ahmet Necdet Sezer, Prime Minister Bulent Ecevit, General Staff Chief General Huseyin Kivrikoglu, State Minister Sukru Sina Gurel, TRNC Foreign Affairs and Defense Minister Tahsin Ertugruloglu, President Denktas said, ''I felt relieved.''

Noting that Turkish Cypriots had been living with the fear of possible terrorist attacks for 11 years, President Denktas said about the terrorist attacks on the twin towers of the World Trade Center complex in New York and on the Pentagon building in Washington D.C. on September 11, ''when we watched all those people running in the streets in panic on the televisions, we remembered those days of Turkish Cypriots. Terrorism generally hits innocent people.''

Meanwhile, at the beginning of the panel discussion, participants observed a minute of silence out of respect to Mustafa Kemal Ataturk, the Founder of modern and secular Republic of Turkey; his brothers in arm; those who lost their lives in the terrorist attacks in the United States on September 11; and leading businessman Uzeyir Garih who was stabbed to death on August 25.

[18] CUSTOMS UNDERSECRETARY SAYGILIOGLU SAYS FIVE PEOPLE WERE

Responding to questions of journalists, Saygilioglu said, ''acting an a tip- off, security forces stopped and searched a passenger bus which was on its way from Iran to Turkey. They confiscated 227.1 kg of heroin. Mohebali Najafi Khajehbolagh, the driver of the bus, and his assistants Behzad Nikanja and Khodaviran Naeri Galin Gheshlaghi were detained. Hojjat Tosefi Mohammadjanlou and Ramazan Inci who would contact with the driver of the bus, were captured in an automobile. Security forces confiscated Iran- registered passenger bus and the automobile.''

Noting that market value of the drug was about 7 trillion Turkish liras, Saygilioglu said that a full investigation into illicit drug trafficking was under way.

[19] DOMESTIC BORROWING STRATEGIES

Treasury announced borrowing strategies for October-December 2001 period.

According to the statement, domestic debt repayment will be 6.7 quadrillion TL in October, 7.8 quadrillion TL in November and 6.4 quadrillion TL in December while 14 quadrillion TL of the total domestic debt redemption of 21 quadrillion in the last quarter will be composed of sales to markets by auction, sales by TAP (by Central Bank), public offering and repayment of direct sales.

The share of principal payments in the 21 quadrillion TL of domestic debt servicing will be 11.4 quadrillion TL and share of interest payments will be 9.6 quadrillion TL.

Meanwhile, the share of principal in the 6 quadrillion TL of external debt servicing will be 4.5 quadrillion TL and share of interest payments will be 1.5 quadrillion TL.

Treasury will go into 9.9 quadrillion TL of debt in return for the 14 quadrillion TL of redemption in the last quarter.

Treasury announced borrowing strategies as follows:

''-In general, the auctions will be held on Tuesdays. Other days of the week may also be eligible depending on the market conditions.

-The detailed information regarding the auctions will be publicized at least one day prior to the auction.

-Within this framework, on October 2, 2001, a 182-day Treasury Bill with value date of October 2, 2001 and maturity date of April 3, 2002 is planned to be auctioned.

-The amount of issuance in the 3-month reference bond auctions which will be held to set the coupon interest rates of the floating rate bonds will be 51 percent of payments to the market and repayment amount of average sales.

-Within this scope, a 3-month reference bond auction will be held on October 23, 2001.

-In this auction, net issuance will be 688 trillion TL. There won't be average sale.

-Treasury may resort to TAP sales, public offerings and buy-back auctions in October. Necessary information will be provided prior to the issues.''

Treasury also included details of repayments in October in its statement:

Treasury will repay 1 quadrillion 592 trillion 249 billion TL on October 3, 1 quadrillion 671 billion 144 million TL on October 10, 1 quadrillion 79 trillion 235 billion TL on October 17, 1 quadrillion 364 trillion 925 billion TL on October 24, 438 billion 240 million TL on October 29, 582 billion 509 million TL on October 31.

[20] STATE MINISTER KECECILER SAYS NUMBER OF DETAINEES

Responding to questions of journalists at Izmir's Adnan Menderes Airport, Kececiler said, ''the operation is under way in Van. Four Iranians of Azerbaijani origin, and two Turks were detained in the operation.''

[21] PANEL DISCUSSION HELD ON LATEST SITUATION IN

Speaking at a panel discussion organized by the Foundation 2000 at Ankara's Hilton Hotel on the issue of ''Latest Situation in Cyprus and Expected Developments'', President Denktas said, ''although the Greek Cypriot side claims that the Cyprus question started in 1974, the real problems in the island began in 1963 when the Greek Cypriot side destroyed the partnership in Cyprus.''

Stressing that the Greek Cypriot side destroyed the partnership in order to become the legal government of Cyprus on its own, President Denktas said, ''the Greek Cypriots attacked on us to remove restrictions stemming from the agreements signed in 1960. All of us want peace and compromise. I invite those defending democracy, human rights, freedoms and supremacy of law to realize the facts. There are two separate democratic entities in the island. Are you aware of this fact? None of two sides in the island does not have the right to take decisions and impose them on the other.''

Stressing that a satisfactory solution had not been reached on the island for 38 years, President Denktas said, ''they claimed that I had fled from the proximity talks. In fact, they stole negotiation table from us. Issues accepted prior to the proximity talks, were changed during the talks. Despite all warnings of the TRNC, United Nations Secretary General Kofi Annan's Special Envoy Alvaro De Soto announced a date for the beginning of the new round of talks. This announcement contradicted with Annan's good will mission. Some people deceived De Soto.''

Referring to Greek Cypriot lobbies' activities in Greece and the United States, President Denktas said, ''TRNC should accelerate its activities for recognition of its state.''

Meanwhile, Prof. Dr. Ali Bozer, one of the former foreign ministers, said, ''the EU is the biggest defender of the principle of supremacy of law. The EU has denied itself by starting full membership negotiations with the Greek Cypriot side. It was the EU that took the step leading the Cyprus question to a lack of solution. The EU does not want to accept a problematic country as a full member. There were countries having hesitations about the Greek Cypriot side's full membership. Turkey should have extended efforts to increase number of these countries. The Foreign Affairs Ministry extended efforts to this end, but either it could not yield a result, or it did not extend adequate effort. Meanwhile, Greece threatened the EU saying that if the EU did not accept the Greek Cypriot side's membership, it would halt the enlargement process.''

Retired Ambassador Nuzhet Kandemir said, ''the facts lying beneath the Cyprus question were ignored. International community should accept the fact that Turkish Cypriots could not live in the island with the status of minority. The Greek Cypriot side became a shelter for terrorist groups and a center of money laundering.''

Constitutional Court Chief Judge Mustafa Bumin; Mehmet Ali Irtemcelik, a deputy of the Motherland Party (ANAP) from Istanbul; Mehmet Agar, an independent deputy from Elazig province; Zeki Bulunc, the TRNC Ambassador to Turkey; Fouad Yaseen, the Palestinian Ambassador to Turkey; and a number of guests were in attendance at the

meeting

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