Anadolu Agency: News in English, 01-12-01

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ANADOLU AGENCY

NEWS

01 December 2001

Saturday

-TURKEY-PRESS SCAN

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

HURRIYET (LIBERAL)

The economic shrinking which was the highest in the last 56 years started slowing down. The shrinking became 11.4 percent in the second three monthly period. State Statistics Institute announced that the Gross National Product decreased by 8.5 percent in the second three monthly period. Therefore, although the economic shrinking has began to slow down, it is still the second biggest shrinking after 1945. In 1945, the Turkish economy had shrunk by 15.3 percent.

TURKEY DISAPPOINTS ISRAEL IN TANK PROJECT

Turkey cancelled the tank project which proposed the modernization of 170 M- 60 tanks by Israel, after Israel refused to bring down its prices. The talks continuing with Israeli delegations ended in Ankara. The Defense Industry Undersecretariat is expected to open a new tender in the coming days for the tanks' modernization.

Israeli Military Industries (IMI) was going to modernize the M-60 tanks if they had won the tender. However, Turkey found Israel's 700 million U.S. dollar offer too high and asked Israel to bring the offer down.

MILLIYET (LIBERAL)

A total of 40 giant clothing and food chains, including Galleria, Profilo, Capital, Carrefiyr and Migros, have began a sales campaign which reaches 75 percent in certain items. There are sales campaigns continuing in Izmir, Antalya, Balikesir and Gaziantep this weekend. Some 229 businesses are participating in the sales in Antalya and the sales will be around 50 percent.

GOOD NEWS FROM STANDARD AND POOR'S

International rating institution Standard and Poor's upgraded Turkey's general economic outlook from negative to standard and boosted morale to the Turkish markets. S&P also confirmed Turkey's B minus credit note. ''If this trend continues in the markets, worries about Turkey's public sector deficit would ease and the credit note could be revised as positive soon,'' S&P said.

SABAH (LIBERAL)

Halis Toprak a leading businessman sent a long letter to newspapers yesterday and said that he was in a difficult situation. Banking Regulatory and Supervision Agency (BRSA) seized Toprak Bank, which belonged to Halis Toprak in the afternoon. Toprakbank has been the 19th bank which has been transferred to SDIF.

STANDARD AND POORS UPGRADES TURKEY'S CREDIT MARK

Standard and Poors upgraded Turkey's general economy outlook from negative to stable. S&P also confirmed Turkey's minus B long term foreign currency score. S&P also declared that it could soon change Turkey's general outlook from stable to positive. This surprising sattement created pleasure in the markets. The Istanbul Stock Exchange Market (IMKB) index increased by 6,1 percent in the second seSsion. The U.S. dollar on the other hand decreased from 1,500,000 TL to 1,480,000 TL.

CUMHURIYET (LEFT)

Turkey is looking for ways to increase its export volume with the United States. Turkey's export to this country in 2000 was three billion U.S. dollars and now Turkey is expecting understanding from the U.S. administration to overcome the problems caused by quotas. Turkey will present U.S. Secretary of State Colin Powell a detailed file which is consisted of proposals to develop mutual economic relations with the United States. This way, Turkey is planning to have the stratefic partnership relation in political and security fields also in the economy.

NEXT COMES ERSUMER

After the parliamentary investigation against Koray Aydin, former Housing and Public Works Minister, opposition parties are working on a parliamentary investigation against Cumhur Ersumer, former Energy Minister. True Path Party (DYP) Group Acting Chairman Turhan Guven said their investigations were continuing on ministers who have allegations against them.

RADIKAL (LEFT)

Turkey refrained from holding the conference on Afghanistan because of a cost of 500,000 U.S. dollars. In fact the political, economic and cultural advantages of that meeting would be more than its cost. Zahir Shah, the ousted king of Afghanistan earlier applied to Turkish Embassy in Rome saying that he wanted to meet with the representatives of Northern Alliance, in Turkey. Prime Minister Bulent Ecevit told reporters last week that the meeting was not held in Turkey, but in Germany instead, noting that the reason of that was its economic burden on Turkey which was 500,000 U.S. dollars. However the foreign exchange which 1,200 journalists would leave in Turkey would compensate the expenses.

TURKEY BECOMES POOR BY 8,5 PERCENT

According to the data of the State Statistics Institute (SSI), the economy of the country shrank by 8,5 percent in July, August and September 2001 compared to the same months last year. The economic shrinkage following the economic crisis in the nine months has been 8,3 percent.

TURKIYE (RIGHT)

U.S. Secretary of State Colin Powell who hosted a dinner for more than 100 moslem leaders living in the U.S. said that ''the U.S. people understood better the values of belief, family and nation after the terrorist attacks in the U.S. on September 11. Please explain this fact to those who don't know much about Islam.''

GOOD NEWS FOR INDUSTRIALISTS

Prime Minister Bulent Ecevit didn't announce the package of economic measures to solve the economic problems of the real sector. Instead of Ecevit, it was Chairman of Union of Turkish Chambers and Commodity Exchanges of Turkey (TOBB) who announced the measures. The government and the real sector reached an agreement on a series of proposals to increase production and employment.

ZAMAN (CONSERVATIVE)

Banking Regulatory and Supervision Agency (BRSA) included Toprakbank to the Savings Deposit Insurance Fund (SDIF). BRSA said that the bank which belonged to Halis Toprak didn't take the necessary measures, it transfered its sources to the capital group composed of its shareholders, its losses exceeded its assets and its financial structure weakened.

-U.S. STATE DEPARTMENT SPOKESMAN BOUCHER:''WE SUPPORT THE

TALKS IN CYPRUS''

WASHINGTON - Regarding the Turkish citizens who were detained after Sept. 11, the United States has said that it would act in a way that would fulfill its international commitments and also guarantee the security of its own people through its own laws.

Answering a question about the situation of the Turks under detention, U.S. State Department Spokesman Richard Boucher said on Friday ''We intend to meet our international commitments on this matter. We'll do the things which we think are necessary in a way that would guarantee the security of our own people.''

He stated that informing the embassies about detained people is a complicated matter. ''It's not always possible to warn the governments about the people which are caught. But the person who is under detention has the right to contact its own government. It also has the right not to contact its own government. We're trying to fulfill our commitments in this process,'' he said.

When asked if U.S. Secretary of State Colin Powell would take an initiative about the Cyprus issue during his visit to Ankara in the first week of December, Boucher said ''There will be a series of issues that will be discussed with Turkey, mostly about Afghanistan, the situation in the region, NATO and others. Cyprus is a subject which we debate with the Turkish government all the time. We always supported the UN process. We're also supporting the talks between the two leaders which will take place in Cyprus soon.''

-TOPRAKBANK'S TRANSFER TO SDIF PUBLISHED IN OFFICIAL GAZETTE

ANKARA - The decision of the Banking Regulation and Supervision Agency (BRSA) to transfer Toprakbank to Savings Deposit Insurance Fund (SDIF) was published in the Official Gazette on Saturday.

BRSA noted that Toprakbank which could not take the necessary measures asked from it, which transferred its sources to the capital group composed of shareholders, whose losses exceeded its assests and whose financial structure weakened, was taken to SDIF.

-KAMIL AYDIN PUBLISHES BOOK TO ERASE PREDIJUCES AGAINST TURK

IN WESTERN WORLD

ERZURUM - There will soon be a second edition of the book called ''Images of Turkey in the West'' in Britain and the United States, which is about how Turkey and Turks are regarded in the Western world. The book was originally written as a Phd thesis by Dr. Kamil Aydin, Head of the English Literature Department of Ataturk University and it was read by a large number of people in Britain and the United States.

Dr. Aydin told the A.A that, during the years 1989-1996 when he studied at Warwick University in Britain, he studied the image of Turks in the Western culture and his Phd thesis on this subject was made into a book by The Eothen Press.

Aydin explained that the image of Turks in the West was mostly formed by prejudices and he aimed, through this book, to erase these prejudices in the West.

He stated that ordinary people in the West have incorrect information about Turkey and they believe that Turks still lived under the conditions which existed one hundred years ago. ''For example, a majority of Westerners think that Turkish men are now wearing a fez, and women are walking in the streets with chadors,'' he commented. He added that Turkey is also known as a country where hashish and heroin smuggling is very common and many Westerners think that Istanbul is the capital of Turkey.

''There is a dominant belief that human rights are continiously violated in Turkey and Turkish police, soldiers and police stations are used as a material in this matter,'' he said.

The main reason for the coninuation of these wrong ideas in the West, Aydin explained is that many newspapers and television channels are spreading wrong information about Turkey and, for example, they still show men wearing fezes, and women wearing chadors, when they report a piece of news about Turkey.

He also criticized the brochures that are prepared to promote Turkish tourism and which use old pictures of men wearing fezes smoking nargileh (water pipe). ''These people already think we're living like that. It only strengthens this image when they see such brochures,'' he said.

Aydin said objective studies about Turkey should be translated to foreign languages and published in the West.

Aydin's book was sent to the Foreign Ministry and he received a thank you letter from Foreign Minister Ismail Cem. The book is available in leading libraries in the United States and Britain and it is also promoted on a nubmer of internet websites.

-AFGHANISTAN INDUSTRY AND TRADE ASSOCIATION CHAIRMAN CALLS FOR

TURKISH BUSINESSMEN TO MAKE INVESTMENTS IN AFGHANISTAN

KABUL - Afghanistan Industry and Trade Association Chairman Miralan Mazlumyar called on Turkish businessmen to make investments in Afghanisan.

He said that wars which have been continuing for many years in Afghanistan was the result of other countries trying to gain the control of underground resources in this country.

Stating that Afghanistan economy suffered a lot from the continuing wars, Mazlumyar told the A.A that they started exporting all the electronic equipment from China, Japan and Dubai after Taliban administration.

''We also need new businesses and foreign businessmen to recover our economy,'' he said and explained that Taliban ended Afghanistan's commercial ties with all the countries except for Pakistan. ''Now our goal is to open to the world. Before Taliban, a great number of Turkish entrepreneurs had businesses in Mazar-i Sharif. We're expecting investments to our country by Turkish businessmen. All our doors are wide open to Turkish businessmen,'' he said and stressed that Afghanistan was very rich in mines and natural gas. ''We'll help foreign countries to make investments in these mines but we'll not allow anyone to have the control over these resources,'' he asserted.

-TURKISH AMBASSADOR TO U.S. LOGOGLU SAYS 47 TURKS DETAINED IN U.S.

DUE TO VISA PROBLEMS FOLLOWING TERRORIST ATTACKS ON SEPT. 11

WASHINGTON D.C. - Turkish Ambassador to the U.S. Faruk Logoglu said on Saturday that 47 Turks were detained due to visa problems in the U.S. following the terrorist attacks in the U.S. on Sept. 11, adding that these persons didn't have any connection with terrorism.

''We understand the height of American sensitivities in this respect but in times like this, many people that would not have been hurt otherwise, may face the possibility of getting hurt,'' he told Reuters in an interview.

''We have a good line of communication with the State Department and other U.S. agencies on this but the number of our citizens in detention is a matter of concern to us,'' Logoglu said. ''And none of these have been implicated in any terrorist activity. These are people whose situation may not be regular in terms of visas and residence permits and so forth but we still feel that they need a fair shake.''

The detainees are mostly in the New York area, Logoglu said, adding that Turkey had not been informed about them all. ''When you look at the paper and your country is listed in terms of detainees in third place, it creates a wrong impression about where your country stands, and where our country stands is very clear,'' Logoglu said.

Under international law, the United States has to inform detainees they have the right to access to a consular official but is not obliged to tell the embassy unless it has signed a separate agreement with the country in question, Reuters said. It has no such agreement with Pakistan, Egypt or Turkey.

-MONETARY POLICY REPORT

ANKARA - Central Bank is expecting a 28 percent decrease in the fixed capital investments costs and a 40 percent decrease in total investments in Turkey in 2001.

Consumer price index and wholesale price index are expected to increase by 65 and 80 percent respectively by the end of the year.

Central Bank issued a report which is a general evaluation about the recent developments in the Turkish economy.

The report said that the Turkish economy entered a serious shrinking period in the first half of 2001 as a resulf of the two economic crisis which hit the country in November 2000 and February 2001.

The increasing uncertainities in economy, extreme devaluation of the Turkish lira, unstability in financial markets and high interest rates were the main causes of the decreasing of economic activity.

Although a number of positive developments in tourism and export sectors slowed down the shrinking economy, the depression in global economy negatively affected Turkey's export figures.

Increasing real interest rates, decreasing credit supply by banks, decrease in employments caused people to spend less on personal consumption items. Spendings on personal consumption coasts are expected to decrease by seven percent due to the above mentioned causes.

Total fixed capital investments spendings dropped by 28,2 percent due to the decrease in machinary and equipment investments.

Companies also decreased their stocks due to the shrinking in domestic demand. Therefore, about 40 percent of decrease is expected in total investments in 2001.

Exports of goods and services increased in the first nine months of 2001. The competition power Turkey achieved in foreign markets due to depreciation of Turkish Lira (TL) and the economic crisis played a significant role in the increase of exports.

The shrinkage in domestic demand will continue to lead companies to invest in foreign markets in the last quarter of the year and exports will continue to increase.

However the decrease in foreign demand, the shrinking in financial opportunities and the terrorist attacks in the U.S. are expected to negatively affect the tourism sector and exports. The increase in exports of goods and services are expected to be ten percent.

Gross Domestic Product (GDP) is expected to decrease by six percent in 2001 when compared to the previous year. This shrinking is expected to be 6,5 percent in services sector and 5,7 percent in industry sector. The added value in agriculture sector is expected to decrease by 5,8 percent due to drought.

The deficiency in Foreign Net Factor Income is expected to decrease Gross National Product (GDP) by 8,5 percent due to the decrease in workers incomes and increase in interest payments.

The increase in Whole Sale Prices index and Consumer Prices index are expected to be 65 percent and 80 percent respectively.

-FOREIGN MINISTRY SAYS TURKEY ATTRIBUTES GREAT IMPORTANCE

TO STABILITY AND SECURITY OF GEORGIA

ANKARA - Foreign Ministry said on Saturday that Turkey is concerned about the news telling that certain villages in Georgia were bombed, hoping common sense to prevail in the region.

Responding to a question, Foreign Ministry Spokesman Huseyin Dirioz said that Turkey was worried about the news telling that planes and helicopters which violated the Georgian airspace bombed some villages in Pankisi valley of Georgia on Nov. 27, 2001.

''Turkey attributes great importance to stability and security of Georgia, and it is concerned that such kind of incidents can cause instability not only in Georgia, but in all region,'' Dirioz said.

Dirioz said that countries in the Caucasus region need solidarity and cooperation among themselves more than ever, and added that Turkey hoped common sense to prevail in the region.

-TOBB DELEGATION IN BRUSSELS

BRUSSELS - A delegation from the Turkish Chambers and Commodity Exchanges (TOBB) had a series of contacts in Brussels to strengthen lobbying activities and bring Turkey closer to the EU.

The delegation is formed by TOBB Executive Council Deputy Chairman Halim Mete, Executive Council members Atil Akkan and Nail Kalemci. Mete said that TOBB has been investigating what needs to be done in order to make Turkey a full EU member.

TOBB's Press Speaker Akkan pointed out that some 200,000 small and medium scale enterprises closed down because of the economic crisis. ''We are experiencing unprecedented incidents in Turkey. People started immigrating to rural areas. Production dropped significantly,'' he said.

Kalemci said that Turkish economy must be based on export. He also pointed out that Turkey must act logically, not emotionally, during its integration with the EU. He stressed the importance of lobbying activities.

The TOBB delegation said they decided to solder ties with the EU and its institutions during their contacts in Brussels.

-LABOUR PLATFORM HOLDS DEMONSTRATION IN ISTANBUL

ISTANBUL - Bayram Meral, the Chairman of Confederation of Turkish Workers' Labour Unions (Turk-Is) called on the government and the political parties to go to early elections as soon as possible.

Addressing the crowd in Abide-i Hurriyet square in Sisli district of Istanbul, Meral said that Turkey faced very serious problems and difficulties, adding that unemployment, corruption and hunger became the most important problem of the country.

''The government asks people to make sacrifices again, IMF gives order to the government, and the latter asks us to make sacrifices. If sacrifice has to be made, the deputies have to stop getting advantages from the state. The government has to decrease the number of deputies and ministers. The government has to sell the houses hired for public officials with a very low rent,'' he said.

Workers decided to hold a public meeting in order to stop the ''pillage'' of IMF, asserted Meral and noted that ''we will continue organizing demonstrations until the rights to collective bargaining and strikes are given to public employees and until the Job Security bill is adopted.'' He added that if the government decides to get back the acquired rights of workers such as seniority and bonus payments, they would go on a general strike.

Nearly 20,000 persons attended the demonstration organized by Labour Platform in Istanbul, which lasted for three hours.

-MONETARY POLICY REPORT (2)

ANKARA - Central Bank, in its Monetary Policy Report, said that it expected a yearly average of 46,4 percent in the consumer prices in 2002.

This inflation rate was estimated considering controlling of domestic demand through financial policies, setting up public goods and services prices according to an inflation target and gaining value of the Turkish Lira which lost fifty percent of its value.

Developments in work force market are not expected to create a pressure on the inflation in 2002, like it happened in 2001.

However, there are also certain risk regarding the year end inflation target. These are having an inflation rate higher than the expected rate at the end of 2001; negative effect of the decrease in agricultural production on the food prices during the first half of 2002; and sharp increasing in consumer prices due to the revival in domestic demand.

Turkey adopted a floating exchange rate policy on Feb. 22, 2002. Central Bank, like other countries where the foreign exchange rates and interest rates are determined by the markets, has been following a monetary policy in order not to create too much liquidity in the markets, as an effort to have price stability.

As the net domestic assets grew in the balance sheets of the Central Bank, an upper limit (ceiling) was determined by taking as base the estimations for a minimum limit and net foreign exchange of assets.

The minimum limit is a very effective method for a monetary policy although its estimation is difficult and it's not entirely under the control of the Central Bank.

The monetary program aims to have an increase parallel to real growth and inflation target.

Basic numeral parameters of 2002 monetary policy will be announced at the end of this year.

No different foreign exchange rate and no specific foreign exchange rate is foreseen in the programme. The real foreign exchange rate will have its new amount according to the forces in the market.

The speed of repercussion of changes in foreign exchange rate on prices will also decrease as long as the economic units get used to the flexible exchange rate.

The influence of payments, international economic developments, inflation expectation, total demand and supply, exchange rate, prices of goods and services in the public sector, exports, imports and capital movements; on the general prices will be monitored and certain amendments will be made in the monetary policy if necessary.

Central Bank will continue its studies to prepare the groundwork for adopting the inflation targetting regime. The year 2002 can be considered as a transitional period before passing to the inflation targetting policy and in this period Central Bank will try to bring transparency to the monetary policy in 2002.

The statement of Central Bank telling that Turkey would start to implement inflation targetting policy, started a debate on this policy as to whether or not it suits the conditions of Turkey.

-TREASURY TO PAY 437.9 MILLION U.S. DOLLARS OF FOREIGN DEBT

NEXT WEEK

ANKARA - Treasury will pay 437.9 million U.S. dollars of foreign debt next week, it was reported on Saturday. Turkey's foreign debt payments, since the beginning of 2001, has reached nine billion 464.8 million U.S. dollars.

Treasury Undersecretariat announced that Treasury will pay 363.7 million U.S. dollars on Dec. 3, 0.1 million U.S. dollars on Dec. 4, nad 47.2 million U.S. dollars on Dec. 7.

Last week, Treasury had paid 672.1 million U.S. dollar last week.

-LABOUR PLATFORM HOLDS DEMONSTRATIONS ALL OVER TURKEY

ANKARA, Dec 1 - Demonstrations were held all over Turkey on Saturday upon the decision taken by the Labour Platform Chairmanship Council.

Labour Platform is composed of representatives of trade unions and non- governmental organizations (NGOS).

Demonstrations were held in Istanbul, Ankara, Erzurum, Edirne, Gaziantep and Bolu provinces on Saturday.

The Platform issued a press release in Mithatpasa street, Ankara.

Members of Turk-Is, the Confederation of Turkish Workers' Labour Unions convened in front of Turk-Is headquarters in Kızılay early in the morning and they shouted slogans against the government and IMF.

After getting a permission from Ankara Security Director Hasan Yucesan to issue a presss release, the Platform members came to Mithatpasa street agains. Later Labour Plaftorm's Ankara Term President Umit Erkol read out the press release. Platform's Press Release claimed that Turkey went through one of its severe economic crises due to the wrong policies implemented by the policies pursued by governments.

Stressing that the credit taken from IMF increased the debt burden on the country, the Labour Platform said in the press release that firstly corruption has to be prevented, Election Law has to be amended and early elections have to be held before taking measures of saving in the public sector.

After the press release was read out, the group dispersed.

Some business places in Mithatpasa district were closed and police armoured vehicles came to Kızılay. Kızılay station of subway was also closed during the demonstration.

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