Anadolu Agency: News in English, 02-02-05

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From: The Anadolu Agency Home Page at <http://www.anadoluajansi.com.tr/>

ANADOLU AJANSI

HABERLER

05 February

2002 Wednesday

Türkiye

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Ekonomi

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CONTENTS

[01] TURKEY-PRESS SCAN

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

PRIME MINISTER ECEVIT WARNS SADDAM WITH A LETTER
Prime Minister Bulent Ecevit sent a letter to President Saddam Hussein of Iraq, and warned him to remove all obstacles in front of the United Nations weapon inspection. In his letter, Prime Minister Ecevit said, ''you are face to face with a new threat. We have been launching initiatives to prevent this threat. If you do not open your gates to the United Nations weapon inspectors, serious developments can happen. Such developments can cause Turkey to suffer serious loss. Therefore, we are extremely sensitive.''

A TENDER TO BE HELD FOR MARMARAY PROJECT IN AUGUST A tender will be held in August of 2002 for the ''Marmaray Project'' aiming at passing the Istanbul Strait through a tunnel and railway system. Construction of the Marmaray Project to start in March of 2003, is expected to be finalize in April of 2007.

CEM: ''IF THE EU SETS A DATE, COALITION GOVERNMENT WINS ELECTIONS ONCE
AGAIN''
Speaking at the World Economic Forum in New York, Foreign Minister Ismail Cem said, ''there is not the atmosphere of general elections in Turkey. If the European Union (EU) sets a date for beginning of full membership negotiations with Turkey and important developments are recorded in Baku- Ceyhan oil pipeline project, foreign investors will show more interest in Turkey, and chance of the current coalition government to win new general elections will increase.''

MILLIYET (LIBERAL)

ISIKARA: ''MARMARA QUAKE APPROACHES DAY BY DAY''
Bogazici University Kandilli Observatory and Seismology Institute Director Prof. Dr. Ahmet Mete Isikara held a press conference following the earthquake in western province of Afyon, and said, ''Marmara quake approaches day by day. However, there are methods to save ourselves from a destructive earthquake. Bogazici and Fatih Mehmet bridges in the Istanbul Strait can endure such an earthquake, but we should strengthen all viaducts on TEM and E-5 highways.'' Isikara added, ''fires can break out after such an earthquake. These fires can cause more damage. Therefore, all necessary measures should be taken in order to prevent such fires.''

SABAH (LIBERAL)

DERVIS: ''ECONOMIC SHOCK IN TURKEY CAME TO AN END''
State Minister Kemal Dervis for Economy made a statement after International Monetary Fund (IMF) Board approved 16.2 billion U.S. dollars of loan, and said, ''economic shock in Turkey came to an end. Turkey deserves these loans. Now, we are entering a new period.'' He added, ''we overcame the most serious part of the economic crisis. However, our problems do not end. We should create employment. Turkey’s most important problem is to create employment for a young population. A 3-4 percent growth is possible for Turkey in 2003. But this figure is not adequate. It is just a beginning.''

OIB GIVEN THREE YEARS
A new period is beginning in the privatization. State Minister Yilmaz Karakoyunlu for privatization said, ''a new draft law has been preared. We will privatize the Directorate of Privatization Authority (OIB). If the OIB could not succeed in privatizing itself in three years, it will be abolished.''

CUMHURIYET (LEFT)

3-YEAR DEPENDENCE
With the 48-article letter of intent submitted to the IMF, three-year commitments were undertaken from basic economic figures to the arrangements for change of the state's structure which are called structural reforms. The gruowt rate target was reduced to 3 percent in 2002. The wholesale prices index inflation rate target was set as 31 percent and consumer prices index inflation target was set as 35 percent in 2002.

DERVIS: ''TURKEY DESERVES''
State Minister Kemal Dervis said that Turkey deserved the loans it obtained. ''We can say that the Turkish economy left behind the most worse period after October and we overcame the economic crisis,'' he said.

RADIKAL (LEFT)

LETTER TO BAGHDAD
Prime Minister Bulent Ecevit sent the ''expected letter'' to the Baghdad administration. Stressing the seriousness of the situation, Ecevit requested Baghdad to immediately accept U.N. supervision.

ECEVIT: ''ADJUSTMENT WILL BE TAKEN UP AGAIN''
Searches for a compromise on the adjustment bill continue. While the Motherland Party (ANAP) ''suspended'' its internal works in order not to escalate the tension with its coaliton partner Nationalist Movement Party (MHP), Prime Minister made a promising statement. Ecevit said, ''by taking the public opinion's expectations into consideration, we will make a new review this week.''

TURKIYE (RIGHT)

SIX TERRORISTS SURRENDER TO SECURITY FORCES
Six terrorists fleeing from the terrorist organization, have surrendered to security forces in southeastern province of Sirnak and in eastern province of Hakkari. Meanwhile, security forces captured 12 terrorists in southeastern province of Diyarbakir and in eastern province of Van. They also confiscated six Kalashnikov rifles, a G-3 rifle and four handguns. Operations have been continuing in the region.

CHHIBBER VISITS GURTUNA
World Bank Representative Ajay Chhibber paid a visit to Istanbul Mayor Ali Mufit Gurtuna. Speaking at the meeting, Chhibber said that they would concentrate their efforts in Istanbul to save the province from a possible earthquake. Chhibber added that taxes should be decreased, interest rates should be reduced and the Iller Bankasi should be reformed.

ZAMAN (CONSERVATIVE)

493 AFTERSHOCKS OCCUR IN 24 HOURS
Following the 6.0-magnitude earthquake in Sultandagi township of western province of Afyon, a total of 493 aftershocks occurred in 24 hours. Istanbul-based Kandilli Observatory and Seismology Institute said that 493 aftershocks ranging from 3.0 and 5.3 on the Richter scale were recorded between 09:14 a.m. on Sunday and 07:21 a.m. on Monday. Officials warned the residents in Afyon province not to enter their homes suffering medium or heavy damage.

-NATIONAL DEFENSE MINISTER CAKMAKOGLU LEAVES FOR PAKISTAN (2)
ANKARA - National Defense Minister Sabahattin Cakmakoglu said on Tuesday that Turkey and Pakistan were the two countries which had examplary relations and supported each other at political platforms.

Cakmakoglu left for Pakistani capital Islamabad as the official guest of Foreign Minister Abdus Sattar who also serves as the Defense minister on behalf of the Pakistani President.

Speaking to reporters prior to his departure, Cakmakoglu said that he would be received by Pakistani President Pervez Musharraf during his visit and they would take up bilateral, regional and international issues.

Noting that friendship and brotherhood had been the two main factors in bilateral relations since 1947 when Pakistan had acquired its independence, Cakmakoglu said, ''Turkey and Pakistan are the two countries which have examplary relations and have always supported each other at political platforms. Our friendship with Pakistan also constitutes a model for other nations.''

Stating that existing problems in the region and terrorism in Afghanistan would be taken up during his visit, Cakmakoglu said that the recent issues between Pakistan and India would also be brought onto agenda during his visit.

Cakmakoglu said, ''we believe that the Kashmir problem can be solved through peaceful methods and dialogue under today's conditions.''

Noting that Turkey's and Pakistan's capabilities and facilities in the field of defense industry would be reviewed during his visit, Cakmakoglu said that opportunities of cooperation would be evaluated according to this review.

When asked whether or not Turkey and Pakistan would carry out joint works on rebuilding of Afghanistan, Cakmakoglu said that public opinion knew about Turkey's interest in Afghanistan and that Turkish contractors and businessmen could cooperate with Pakistan in Afghanistan.

Stressing that they supported the interim government in Afghanistan during the process of transition into a permanent administration, Cakmakoglu said, ''we desire an administration which represents all Afghans.''

Recalling that the Turkish Armed FOrces (TSK) would send a 261-member military unit to Afghanistan, Cakmakoglu said that this unit was about to finalize its preparations.

Cakmakoglu said that the unit would leave for the region after the advance delegation concluded its works about the settlement conditions in Afghanistan.

Recalling that the TSK had also undertaken traning of the troop of guardsmen that would be formed in Afghanistan, Cakmakoglu said that Turkey would supply clothings and equipment of this troop.

-559 AFTERSHOCKS OCCUR IN REGION AFTER SUNDAY'S EARTHQUAKE IN AFYON
ISTANBUL - A total 559 aftershocks occurred in the region within 48 hours following Sunday's strong earthquake measuring 6.0 on the Richter scale of which epicenter was Sultandagi township of Afyon province in Aegean region.

Officials at the Bogazici University Kandilli Observatory and Seismology Institute told the A.A that 559 aftershock were recorded since the massive earthquake at 09:11 on Sunday until 10:00 on Tuesday.

They said that epicenters of those aftershocks were Sultandagi and Cay townships of Afyon and the highest preliminary magnitude of those aftershocks was 3.7 on the Richter scale.

They said 66 aftershicks were recorded in last 24 hours.

Officials said aftershocks would continue in coming days and warned the citizens not to enter the damaged houses.

-DISASTER WORKS GENERAL DIRECTORATE SAYS DEATH TOLL IS 43
ANKARA - Public Works and Housing Ministry Disaster Works General Directorate said on Tuesday that the death toll in the earthquake in Afyon was 43.

It said that 15 of those people were killed in Sultandagi, 24 of them died in Cay, 1 person was killed in Bolvadin, 2 others lost their lives in Cobanlar and 1 person died in Sincanli, adding that 318 people were injured in the quake.

It said that 3,644 tents, 13,120 blankets and 20 containers had been sent to Aegean Afyon province, which was jolted by a strong earthquake on Sunday.

A statement of the Disaster Works General Directorate stressed that 20 container W.C, 3,000 stoves with LPG, 8 portable kitchens, and one mobile clinic were also dispatched to the quake zone.

The statement noted that 35 technical personnel and three geophysicians were working at the region to measure the aftershocks.

A total of 59 technicians from Antalya, Konya, Isparta and Denizli Public Works and Housing directorates, three gophysics engineers, five drivers, two carpenters and two electricians were charged in the disaster zone, the statement pointed out.

It said that 500 billion Turkish liras (TL) of emergency aid appropriation had been sent to Afyon Governorship the same day.

A total of 340 dwellings, 246 workplaces, 36 public institution buildings suffered severe and moderate damages, the statement added.

Below is the preliminary damage assesments:

. DWELLING WORKPLACE PUBLIC INSTITUTION
. -------- --------- ------------------
SULTANDAGI 40 3 8
COBANLAR 75 5 2
CAY 85 200 3
SANDIKLI 6 0 3
BOLVADIN 65 22 10
AFYON CENTER 38 15 8
SUHUT 31 1 2
--------------- ----- -------- ------------------
TOTAL 340 246 36
-ECEVIT RELEASES CIRCULAR ON TURKEY-U.S. ECONOMIC PARTNERSHIP COMMISSION
ANKARA - Prime Minister Bulent Ecevit released on Tuesday a circular and said that it was considered appropriate for the Turkish Foreign Ministry to carry out co-charmanship of the ''Turkey-U.S. Economic Partnership Commission'' as the U.S. co-chairmanship of the commission would be carried out by the U.S. State Department.

The circular said that as a result of the Prime Minister's visit to the United States between January 15-18, 2002, it had been decided to form a ''Turkey-U.S. Economic Partnership Commission'' where economic and commercial issues would be taken up in order to reflect the close strategic partnership between Turkey and the United States also to the economic field.

The circular stressed that this new consultative mechanism was foreseen to serve development of commercial relations by enlargening the economic dialogue between the sides, increase of investments and implementation of the economic reform program in Turkey in a successful way.

''It has been stated that the U.S. side co-chairmanship of the commission would be carried out by the U.S. State Department and it has been seen appropriate for the Foreign Ministry to carry out the Turkish side co- chairmanship of the commission. I request all public organizations and institutitons to extend necessary cooperation and support and give necessary information to the commission during its works,'' Ecevit said in his circular.

-NEARLY USD 9.3 BILLION RELEASED BY IMF TO ENTER TREASURY'S ACCOUNTS BY
WEEKEND
ANKARA - Nearly 9.3 billion U.S. dollars released by the International Monetary Fund (IMF) would enter Treasury's accounts by the weekend, sources said on Tuesday.

Sources said that nearly 6.2 billion U.S. dollars part of this money would be immediately used in repayment of debts.

Meanwhile, 7 billion U.S. dollars part of the 10 billion U.S. dollars of fresh source in total which would be given to Turkey in 2002 would be aused in the budget while the remaining 3 billion U.S. dollars part would be allocated to consolidation of reserves, sources said.

According to another statistics, 12 billion U.S. dollars of fresh source including 1 billion U.S. dollars each in 2003 and 2004 should be repaid in four years but there will not be any repayment in first 2 years and three months.

Sources said that this loan should be repaid in five years at the latest and the interest rate would be about 6.61 percent.

Meanwhile, IMF delegation will carry out its first review visit in March 2002. The second, third and fourth reviews will take place in May, July and October 2002.

After each of these reviews, a letter of intent will be submitted to the IMF.

Nearly 1 billion 150 million U.S. dolllars of loan tranche will be aproved after each of these reviews.

The last loan tranche of nearly 1.5 billion U.S. dollars will be released after the review in October.

Sources added that IMF delegation will pay review visits to Turkey once in every six months in 2003 and 2004 if the economic program was implemented in line with the plan.

-STATE MINISTER DERVIS PROCEEDS FROM NEW YORK TO LONDON
LONDON - State Minister Kemal Dervis for Economy arrived in London, Britain on Tuesday after wrapping up his contacts in New York, the United States.

Dervis will attend a meeting organized by Credit Suisse finance organization later in the day.

Dervis will deliver a speech on latest economic developments in Turkey during the meeting in which also finance and business circles in London will participate.

Dervis will return to Turkey on Wednesday.

-GARCIA, FRENCH AMBASSADOR IN ANKARA, SAYS TURKEY AND FRANCE PLAN TO SET UP
JOINT DEFENSE INDUSTRY
ANKARA - Plans of Turkey and France to set up a joint defense industry were discussed during French Defense Minister Alain Richard's visit to Ankara.

Bernard Garcia, the French Ambassador in Ankara, addressed a news conference and announced the aid package of his country for the Afyon quake.

Responding to a question, Garcia evaluated the level of relations between the two countries, particularly in defense, following the adoption of the so-called genocide on Armenians.

Garcia said Richard, following his meetings with Prime Minister Bulent Ecevit and National Defense Minister Sabahattin Cakmakoglu, said the Turkish side attributed importance to the ''technology transfer'' and noted that officials of the two sides discussed their plans to launch joint initiatives on military issues and set up a joint defense industry.

-FRENCH AMBASSADOR IN ANKARA GARCIA SAYS FRENCH COMPANY SUBMITS
THE MOST ADVANTAGEOUS PROPOSAL IN F-16 TENDER
ANKARA - French Ambassador in Ankara Bernard Garcia said on Tuesday that the French company, which attended F-16 defense tender opened by Turkish Armed Forces, made a more advantageous proposal when compared with the other companies. Garcia said the final decision would be given by the Turkish goverment.

Garcia announced the aid package of his country to Turkey after the strong earthquake in Aegean Afyon province. Garcia also evaluted the level of relations between the two countries following the adoption of so-called genocide on Armenians, and the point reached particularly in defense field.

When recalled the news reports that the Aselsan-Mikes partnership instead of French company Thales won the bidding for the modernization of F-16 planes, Garcia said they have not received any official information about this.

Speaking about the results of the tender, Garcia said Turkey was a sovereign country, and that the decision belonged to it, yet he said he found it beneficial to remind some points.

Garcia said the equipment, that would be assembled to F-16 planes were made in the U.S., but that the assemblers were French.

Garcia also said the French company was positive toward the technology transfer which Ankara attributed a great importance, noting that he did not think that other companies made a better proposal.

Garcia said Richard, following his meetings with Prime Minister Bulent Ecevit and National Defense Minister Sabahattin Cakmakoglu, said the Turkish side attributed importance to the ''technology transfer'' and noted that officials of the two sides discussed their plans to launch joint initiatives on military issues and set up a joint defense industry.

Garcia said draft resolutions for the establishment of a joint industry were also discussed, noting that France is positive toward the issue of defense industry. He said France had its first nuclear weapons during the period of De Gaulle, and that it continued efforts up to now.

Garcia said it was natural for Turkey and France to launch a joint initiative because point of view of the two countries to the incidents are the same.

Garcia said the aid sent by the French administration should not be considered as a gesture made to Turkey following the decision on so-called genocide on Armenians, and noted that the aid did not have any connection with the Turkish-French relations. He said relations between two countries may sour from time to time, but relations between the Turkish and French people have a past.

-ARSEVEN: ''IN THE FIELD OF HUMAN RIGHTS, TURKEY HAS AN IMAGE WHICH IT
DOESN'T DESERVE''
ANKARA - State Minister in charge of human rights Nejat Arseven stated that 2002 was very important for Turkey to fulfill the political criteria of the EU.

''Legal regulations reached an important point. Passing adjustment bills and other complementary regulations will also create a relief,'' Arseven said when he attended a human rights meeting which lasted for two hours on Tuesday.

''It's our main goal to create the environment and conditions to make our people fully benefit from human rights. Despite many legal and administrative changes that were made, Turkey has an image that it doesn't deserve regarding human rights. Improving this image is necessary both for joining the EU and to have a better image in the world public opinion. This year, especially, is important to fulfill the political criteria of the EU, '' Arseven said.

Arseven also said that an Advisory Council was set up to provide communication between state institutions and non-governmental organizations.

Arseven said that at the meeting they assessed the activities of provincial and township councils which have an important role in the developing of human rights and they discussed the measures that could be taken to make these councils work more efficiently.

Turkey made significant progress in the field of human rights, Arseven said and added that there was still a long way to go ahead of Turkey in this field.

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