TRKNWS-L Turkish Daily News (March 15, 1996)

From: TRKNWS-L <trh@aimnet.com>

Turkish News Directory

CONTENTS

TURKISH DAILY NEWS / 15 March 1996

[01] Demirel urges Arafat to 'go on with peace process'

GAZA/ANKARA- President Suleyman Demirel, marking the end of his Mideast tour in Gaza, urged Palestinian President Yasser Arafat to go on with the peace process.

"The recent developments have marked a golden opportunity for peace in the region. Everyone should support the peace process in the region," he said, as he arrived in the newly autonomous lands as the first Turkish president to visit.

Demirel, addressing Arafat as "brother," said that Turkey was keen to help Palestinians in the reconstruction of their territory.

"The peace process does not only benefit the Arabs and the Jews. It is in the interests of all peoples of the region," he said.

"Neither of the sides should lose their faith in peace now," he said, in reference to the recent suicide bombings which have jeopardized the peace talks.

Arafat, for his part, said that the summit a day ago had been an important platform.

"I see you as my best friend. I thank you for coming," he said.

Meanwhile, first lady Nazmiye Demirel, who met Suha Arafat, presented the Arafat's baby with a gold coin, as is the Turkish custom.

Earlier in the day, Demirel marked the end of his visit by concluding several agreements between Turkey and Israel.

The most important one is the Free Trade Zone accord, which had been in preparation for three years. The agreement envisages a total lifting of customs between Turkey and Israel by Jan. 1, 2000.

The first priority would be lifting customs on industrial goods, and the lifting on customs will extend to agricultural goods and, at the latest stage, to textile products.

The other agreements are on the protection of mutual investments, on prevention of double taxation and on economic, industrial and technical cooperation. The accords were signed by Turkish Foreign Minister Emre Gonensay and his Israeli counterpart Ehud Barak.

"This was a very productive visit," President Demirel said at the end of the visit. "President Weizman's visit has opened the first chapter in bilateral ties. Ours is the second page. We will continue to cooperate and support each other." Weizman, meanwhile, said that he was very sorry to see the visit end. He also praised the role played by Turkey in the anti-terrorism summit in the Egyptian city of Sharm-al Sheik.

"You have talked about the measures to take against terrorism.

I thank you for it," he said.

Foreign Minister Gonensay said that he hoped the summit would be followed up, rather than be "one isolated meeting" on the issue.

Gonensay said that the Turkish team had the opportunity to exchange views with U.S. President Bill Clinton, German Chancellor Helmut Kohl, French President Jacques Chirac and Israeli Prime Minister Shimon Peres.

The conference has decided to establish a working group, which will, in 30 days, come up with a report on what can be done to counter terrorism, the foreign minister said.

"The meeting has come up with two concrete issues," said Onur Oymen, the Foreign Ministry undersecretary. "First, the Middle East peace process should be sustained, and second, terrorism should be fought, regardless of roots, source and reason." Turkey achieved to establish wording in the final declaration that no country should support terrorism from its territory.

"We have to discuss how countries fighting terrorism should be helped," Oymen said.

[02] New corporate finance house opens in Istanbul

ANKARA- Dundas, Unlu & Co. Ltd., a new Turkish corporate finance house, has opened in the business capital, Istanbul.

The company said in a statement that the two controlling shareholders are Alesdair Dundas, former managing director of J. Rothschild, Wolfensohn & Co. and, prior to that, managing director for mergers and acquisitions at Bankers Trust Company, and Mahmut Unlu, former assistant general manager and head of corporate finance at Yatirim Bank.

The company will provide corporate finance advice to domestic and international clients, specializing in mergers, acquisitions and disposals, the formation of strategic alliances and joint ventures and the raising of new capital.

"Mr. Dundas, during his fifteen years in the investment banking industry, has completed numerous transactions throughout Europe on behalf of a wide range of publicly-quoted and private companies as well as foreign governments. Following the collapse of the Eastern bloc in 1990, Dundas personally led the team advising the government of the Czech Republic on its program for privatization through direct foreign investment and successfully completed eight of the first nine major industrial privatizations there. Unlu has gained extensive experience in the recently developing corporate finance industry in Turkey.

He has advised on a number of domestic privatizations and successfully completed private sector transactions and, on appointment, was the youngest-ever assistant general manager of a licensed Turkish investment bank," the statement explained.

It added: "Together, the company's principals form a unique and complementary partnership able to apply international investment banking standards and techniques but with an understanding of the local market and its needs." The founder shareholders say they believe that one of the major factors that has inhibited the level of inward investment into Turkey historically has been the absence of qualified investment bankers dedicated to the country. They also believe that there will be an increasing demand for experienced international corporate financiers in Turkey.

With Turkey's recent entry into the customs union with the EC and increasing recognition of its strategic economic importance and growth potential, corporate finance activity is likely to increase dramatically, both in terms of inward investment from abroad and in the development and restructuring of Turkish industry, according to the statement. In addition, it said, the continuing expansion of the Istanbul Stock Exchange will lead to an increasing number of transactions involving publicly quoted companies.

Dundas, Unlu & Co. said its client base will comprise two distinct groups: foreign multinationals seeking to make significant investments in Turkey whether by way of acquisition, merger, strategic alliance or joint venture; together with major Turkish companies seeking to make disposals, form strategic alliances with foreign partners, or access overseas sources of capital.

Dundas, Unlu & Co. has its headquarters in Istanbul's Yapi Kredi Plaza and will have an initial staff of eight to ten people.

Dundas is president of the company and Unlu serves as managing director.

[03] President Suleyman Demirel: "The important thing is that we have a Parliament elected through free elections"

-It will be necessary to convene the Council of Ministers from time to time. Especially in terms of security matters. Some decisions to be taken in this area need the president to be present at the head of the Cabinet anyway. But I want to convene the Council of Ministers from time to time and to work in close cooperation with it...In a democratic republic the presidency, Parliament, the government, all have to work in harmony.

Turkish Daily News

President Suleyman Demirel has characterized the December 24 general elections, which eventually produced the "Motherpath" coalition, as the most democratic elections since the "September 12" military coup in 1980.

In an exclusive interview with Turkish Daily News editors on the occasion of the TDN's 35th anniversary, Demirel expressed great confidence in Turkey's democracy and the country's ability to overcome its problems and forge on.

Demirel added that the Motherpath government, formed between the Motherland Party (ANAP) lead by Mesut YIlmaz, and True Path Party (DYP) lead by Tansu Ciller, was formed as a result of a very democratic process. He said this process this time also included the participation of the public and the press, both of which were actively involved in the political debate of the past two months.

The following is the full text of the interview with President Demirel on recent domestic and foreign policy developments in Turkey:

TDN: What kinds of tasks await the new government, and what does it have to do in order to overcome the problems faced by the country?

DEMIREL: Of course there is another way of looking at this question. First of all let us note this: In Turkey we have been trying to develop a multi-party system for nearly 50 years. A multi-party system is the minimum requirement of democracy. It is its sine qua non condition. But it is difficult to develop such a system. Until now Turkey has failed in coming up with a multi-party system. Three times it ended with crisis. Of course a multi-party system is one that rests on the will of the people. There were times when those elected by the people were not liked. In other words, the supremacy of the will of the people was not accepted. In fact even the supremacy of the Constitution was discarded. Turkey must not forget what it left in the past. If it forgets what it left in the past then it cannot appreciate the value of today. This has to be understood before going into what the new government can or cannot do.

The important thing today is that Turkey should have a Parliament that has been elected through free elections. Today Turkey has a Parliament that came out of an election in which 12 parties participated. Neither did anything serious happen during the elections except for some minor incidents here and there which were of no significance. In fact this Parliament is the product of the freest elections since 1980. In other words, these elections do not even compare with previous elections in terms of freedom. Turkey must not overlook this fact. This is a very important occurrence. Despite the fact that it was the middle of winter, turnout was nevertheless 85 percent. On top of this no one's nose bled during the elections. Furthermore the scope of voters was expanded with the voting age coming down to 18.

This is the kind of election we went through. Everyone had the opportunity to speak their minds. There was not even the smallest incident at rallies. People had the chance to listen to everyone and then to go and cast their vote. When you talk about free and fair elections then it is no one's business what the voter produces from the ballot box. I was in Parliament for a long time. I followed Parliament in the 1950s also. This time I followed the swearing-in ceremony from the presidential lodge.

It was a scene that Turkey could be proud of. People from the four corners of Turkey had assembled. Some I knew. There were old people, young people, from different backgrounds and jobs and they all stood up and took an oath to uphold Ataturk's principles and the secular republic. I want to stress the importance of Parliament here once again. I still carry the pain of the times that Parliament was closed down. I believe a free and independent Parliament is a nation's greatest pride and honor. It is the key to all the freedoms in Turkey.

If you don't have a Parliament you cannot talk of other freedoms. If you have it you can get all the other freedoms. In this month of March of the year 1996 we have such a Parliament, and it has emerged as a result of people's free and independent will. Parties that are engaged in every form of legal activity are there. Such is the Parliament that has been assembled this time. If only the national electoral threshold was lower and other groups managed to get into this Parliament. Turkey must solve all its problems on this basis. Because it is possible to say everything here. It is also possible to respond to what has been said. If someone is saying something wrong, someone else can stand up and respond. This is a very nice forum. Now to come to the matter of the government.

I began my consultations on the morning of January 9 and started the mechanism for forming a government on the same day.

This process continued until March 6. On the evening of March 6, at 9 pm the government list was put in front of me. It was a government that came out of this Parliament and which was formed as a result of compromising. This government has submitted its program; now the program will be voted on after having been debated. Once that is done, Turkey will have a government that will have come out of a freely and fairly elected Parliament and which will have received the vote of confidence of the same Parliament. This is a democratic event. Let's think of what happens next. I will look at the matter again from the point of view of democracy.

This government is facing Parliament. Which Parliament? A free and independent Parliament. A Parliament which represents six parties. The government also faces public opinion. A free pubic opinion. This is what is meant by a free public opinion: Its media is free, its conscience is free, the streets are free, rallying points are free, the judiciary is free. I think Turkey has to constantly keep these points in front of it. These are very important points.

Now, what can this government do? It can do a little, it can do a lot. It can do good, it can do bad. But this will also take place in front of the people. If it is unsuccessful, Parliament is in the position of taking care of it. Without public opinion this system would not work. This thing called public opinion is very important. When this government was being formed it was not formed just by two parties. The government was formed together with public opinion. This has not happened much in the past in Turkey. What transpired this time is a very important matter. The government was discussed in every house, in every coffee shop. It was discussed everywhere whether it should be this kind of a government or that kind of a government. And in the end, a government was produced. This government was not produced by the parties alone. It was formed with the help of the people.

Now the people have a responsibility. If the government is unsuccessful, then all the democratic means are available to do what is necessary. People can also speak their minds. People can use available legal means and demonstrate. People can use all the rights available to them. Then there is Parliament which has very important functions. If the government is unsuccessful, then Parliament can withdraw its support. This can happen at any time. Especially given that this is a government which relies on support from the outside. If Parliament withdraws it support, then it is finished. So what can we expect? Under these conditions, in other words with its alert public opinion and media and with a party giving it support from the outside, this is a government that will constantly be on edge. Such a government will show all the effort necessary in order to succeed. There is nothing more to be said, because it is not possible to gauge whether it will be successful or not.

TDN: Could you qualify your remarks that the Dec. 24 elections are the most democratic of recent times.

DEMIREL: Elections were held in 1983. Three parties entered those elections. Three parties, on the other hand, did not. You need a thousand witnesses to call this democratic. This is what we said at the time and we are not in a position to take those words back. What we said then was all true. In 1987 there was a referendum struggle. This was followed by lightning elections.

It is clear the conditions under which the referendum was held.

The bill for all the bloody events before 1980 was handed to people who were the subject of that referendum and who were banned from politics. The blame for those early events was put on these people and the public was expected (through a referendum) to endorse this ruling.

Then, while minds were still confused, like the man who gets up in the morning but has not fully woken up yet, elections were suddenly held within one month (of the referendum whose results allowed previously-banned politicians from running in general elections). People who had been cut off from politics were faced with elections. Politics is a dynamic affair. You have to be involved in it every day. If you are not you will be knocked out easily. If you keep all of the country's upcoming politicians out of politics for seven years and then all of a sudden tell them they can run in elections it is not possible to call this a democratic race. The 1991 elections were much more democratic compared to all this. But there were still remnants of the earlier elections. The '95 elections on the other hand were very free elections. No one can say anything about these.

TDN: When you endorsed the government you were reported as giving Motherland Party (ANAP) leader Mesut Yilmaz, the new prime minister, three files that were said to contain matters that have to be taken up urgently. To what extent was the information in these files reflected in the government['s program?

DEMIREL: I have not yet analysed the matter. But whether or not it is put into the government program, the town of Dinar (which was devastated by an earthquake last fall) will be rebuilt. In other words, simply because it is not in its program does not mean the government is saying, "No, I will not rebuild Dinar." What I am saying is that Turkey has been left face-to-face with a disaster. I am trying to get rid of the marks of this disaster. So far such and such has been done. Now in the coming days these have to be done. In other words 800 billion liras have been allocated in February for clearing up the debris.

Twelve trillion, on the other hand, has been secured from the European Resettlement Fund. It is necessary for the contracts to be completed in March, for the construction to begin in April, for the Dinar project to be completed on Oct. 31, 1996.

This is the promise I gave to the people as the head of state in Dinar's square. What I told the government was that I, as the President, made this promise in the name of the state. I am not the government. But I made this promise as President. Now I am saying you have to fulfill this promise as the government. There were other things like this. But they were all nonpolitical issues.

Why did I do this? Let me explain that too. Every level of Turkish society has to understand this system much better. In other words people have to get to know what the system is, how it operates, and what can be expected from whom. The president has a very important position and functions in this system. Even though it is said that the President only has responsibilities restricted to his functions, he does in fact have responsibilities. These are moral responsibilities. What is a moral responsibility? There are certain problems facing the country. I am closely concerned with these on a daily basis. Not because of curiosity but because of the functions of state. Now a government is changing. Of course one government will transfer many problems on to the new government. This happens all the time.

But there are those problems that have been brought to my attention. In other words, problems that are above politics or party politics. Mine was not an order. I just pointed out where these problems stood, from my point of view. I am in a position to do this because presidents carry the political responsibility of politicians. The government carries the responsibilities of presidents, but presidents do not carry the responsibility of governments. So what does my action amount to? It is merely a recommendation. In other words I am saying: "Look, there are these problems that have been brought to my attention. Why don't you have a look at them too. If they have priority for you as well then please put them high on the priority list." This is not an order, but a recommendation.

Let me also say this. For the three years that I have been here since 1993 I have at times informed the government of things that I saw, and at times I gave these in written form in a manner that befits the seriousness of the state. Therefore, in the files I gave to Mr. Yilmaz, there were around 50 letters I previously sent to Mrs. Ciller. Some of what I had mentioned in these were done, but I felt Mr. Yilmaz should be informed of these. This is a flow of information. Then there were other subjects from terrorism to politics concerning where Turkey stood on these issues. I am the head of the National Security Council and therefore I follow these matters very closely. I follow whether the state is functioning in harmony. This is my constitutional obligation. These are the subjects I gave (Mesut Yilmaz). Of course he is the head of the government and when he checks his files he will find the same things. But I just underlined these subjects for him, highlighted them.

TDN: Would you consider convening the Council of Ministers over these subjects?

DEMIREL: Yesterday I talked with the prime minister. It will be necessary to convene the Council of Ministers from time to time.

Especially in terms of security matters. Some decisions to be taken in this area need the president to be present at the head of the Cabinet anyway. But I want to convene the Council of Ministers from time to time and to work in close cooperation with it. I told this to (Mesut Yilmaz). I also talked about it with the Speaker of the Parliament. In a democratic republic the presidency, Parliament, the government, all have to work in harmony. This does not necessitate that these organs of the State abandon their constitutional place. In other words it does not necessitate that one branch take a position of precedence over the other. At any rate, a pluralistic system is one that requires being civilized. Many matters cannot be resolved in routine ways. This is an art. I want the state to function better. Because of this I am in close contact with all the institutions of state.

I am also in close touch with what we in Turkey call the third sector; in other words, foundations, associations, and various organizations. Furthermore, I am in close contact with the judiciary, and with universities. None of this makes my position questionable or the position of the institutions I am in contact with questionable. I do not interfere with their will very much, but I do want good relations to continue and the state to function in harmony. This is what I want to say on this matter.

TDN: Had you convened the Council of Ministers under the previous government? I don't recall your having done so. Does this mean you are looking more warmly on the present government?

DEMIREL: No, No! It is not a question of looking warmly or coolly. I don't have such a problem. What is important for me is the government of the Republic. That this government is established properly according to the rules and that it gets a vote of confidence according to the rules. I have not been in conflict with anyone and have conducted my business in a straightforward manner. I have had regular monthly meetings with the prime minister, the Speaker of Parliament and the Chief of the General Staff. I have met the leaders of political parties every six months. In short, I like consultations and talking.

This is cooperation and collaboration. Then there is cohabitation. In other words, your politics don't match but the country's interests require that you work together. The way it was with Mitterrand and Balladur. But this happens in different circumstances.

TDN: The Welfare Party (RP) came out of the elections as the largest party, although it lacked enough seats in Parliament to form a government on its own. But no one wanted to enter a coalition with it. You are a person that has always been wary of polarization. The RP leader Erbakan is currently a little sour at the moment. Will you try to soften him up a little?

DEMIREL: First, let us look at what the facts are. The RP received 21 or so percent of the votes. The Motherland Party (ANAP) received 19 percent and the DYP received 19 percent. Then there is one party (the Democratic Left Party-DSP) which received 14 percent, and another (the Republican People's Party-CHP) which received 10 percent. None of these parties have the right to say the people made us the government. Why? Because they did not get the required votes. So what is to be done in this situation? Compromise. As for compromise, I think these past two months have shown that the nation waited patiently for a compromise. At times this patience was lost. But I asked everyone, "How quick do you want to government to be formed?" They said, "Let it be formed immediately." But the results to come out of the ballot box were not conducive to the immediate formation of a government. Neither are we in a position to criticize the public for the result it produced. So what are we to do? Wait patiently, that is what. How long do we wait. Well, the Constitution has put the deadline as 45 days. When does this period end. On March 23. There are still 17 days to go (at the time of the interview) and this affair has been finalized now.

The results of the Spanish elections are very interesting. If at the end of two months a government cannot be formed, then new elections are held. So you see, every country has its own rules on this.

Now, the long and short of it all is this: I gave the mandate for forming a government first to Mr. Erbakan, didn't I? No one came to me and asked me why I was giving the job of forming the government to Erbakan. So it was up to him to find his partners.

He came to me later and said he could not form a government at this stage but expected to be able to do so in the second round.

So I invited Mrs. Ciller and gave her the job of forming a government. She also went out to search for partners but could not find any. So no one has any right to say anything. If she has no right to say anything, neither does Mr. Erbakan. Then I wanted the third party to try and Mr. Mesut Yilmaz almost managed to form a government with Mr. Erbakan. But it did not happen for whatever reason, and Yilmaz declared these reasons.

In the meantime (Yilmaz) got an offer from the DYP. Instead of coming to an arrangement with Mr. Erbakan, he preferred to come to an arrangement with Mr. Ciller. But who has the right to say anything about this. No one can say anything. There are claims that he was pressured. Who pressured him? It's easy to blame the soldiers. To say "The military applied pressure." But there is no evidence of this.

What I said at the beginning of this affair to the Chief of the General Staff was that there was the need to remain calm.

That this is the democratic process. That both democracy and the state will continue to function. That this point has to be underlined. This is what I told him. I tell everyone that this state will continue to function. This democracy will also continue to function. There is no need for any one to engage in odd things that fall outside the rules. There may be certain scenarios in some minds. I don't condemn this either. The fact that all of these things have been debated has been good for Turkey. Turkey has displayed maturity. But if every time such things come to mind a military angle is added then this system will not work.

The state that I am at the head of now does not have a blemish on its democracy at the moment and it will not have one after this. Everybody is where they should be and every institution will use its own powers. But if it is asked, "What do we do? The country is nearing the cliff's edge. The secular democratic system is at risk. The country is falling apart. Do we still say, wait don't do anything, democracy will work?" If you believe in democracy then none of these will happen. If your democracy is only for show, then you cannot free yourself from a quasi-democracy. We are engaged in a struggle here. This democracy is not a quasi-democracy, it is not a fragile democracy. It is a democracy that has institutions and as many traditions as it is possible to gain in a history of 50 years. A great price has been paid to come to this point. But today there is no use in fretting that the country is dissolving. Everyone is in a position of having to believe in the state, the institutions of state. We have to carry on without being overtaken by certain fears and be able to meet threats to the state face-to-face.

TDN: Are you referring to the need for courage to face up to these threats.

DEMIREL: Yes. First let us have confidence in ourselves. The Turkish people have had a taste of democracy. There will be different modes of thinking in this country. Of course it's a mistake that, on the one hand, we raise hell over the freedom of thought and, on the other hand, we try to see as a crime and seek to punish certain things that the law has not prescribed for. This is very wrong. But I am at ease. Secularism will not be lost and we will not turn into an Algeria. But if we separate an element of the people from another element of the people, then we will have difficulty in maintaining the unity of Turkey.

What we are saying is that democracy is the cement that maintains Turkey's unity. What is the factor in this cement that makes things come together. Equality. If you say, "Please go to the ballot box" to 12 parties -- of course, if it is not a legal party it will not go to the ballot box, that is the state's affair -- then what the state expects of the citizen is that he or she casts a vote independently.

Once this is done, if you discriminate against what the ballot box produced, then democracy will not survive and the meaning of the ballot box will be lost. Neither will you be able to maintain the unity of Turkey. But if you say to certain people, "We find you risky in terms of the future of the country," this is tantamount to saying that any man passing by on the street can commit a murder so it's best to lock him up. So you see, the basis of the Republic is equality. If we can protect this equality, justice, independence and freedom then our democracy will be a true democracy.

Look, even discussing these subjects in the past would be heated. But now it is done peacefully and calmly. Everyone's rights will be respected. Everyone will accept each other, everyone will be patient with each other. We declared last year as the year of tolerance. But we must first learn to be tolerant with each other. It is not possible to change the basic qualities of the democratic and secular Turkish Republic. No one has enough strength to do this. This is a pluralistic state. Let us assume that a party got enough votes to change the constitution and wanted to change the basic qualities of the Republic. But there is the president. The president is there with a veto. Then there is the instrument of referendum. There is also the Constitutional Court. If there is a referendum, will I still be sitting here. No, I will not. I will be out there addressing rallies, asking my people, "What are you doing?" This is my understanding of the matter. I say I am a watchman over Ataturk's place. I want to say that this job of being a watchman has to be done well. This is how I see my place in the system.

[04] Turkey remains committed to peace and settling difference by dialogue

Turkish Daily News

ANKARA- In his interview with TDN editors, President Demirel spoke extensively on foreign policy issues. The following are long excerpts from what Demirel had to say about the basic guiding principles of Turkey's foreign policy, her place in today's international scene, as well as her relations with specific countries and regions:

Demirel's overview of Turkey's approach to foreign policy

Turkey today is surrounded with problems. Most of these problems concern Turkey. When we look at the root of these problems we see they are the result of historic and geographic factors. How can a Turkey, that also came out of the hide of the Ottoman empire, remain indifferent in the face of many of these problems when there is the fact of an Ottoman existence of 500 years, say in Bosnia. Of course it cannot remain indifferent.

Even if there is distance and no shared borders, these problems can still effect our public opinion and drag Turkey in.

A Turkey that has governed the Middle East in peace from 1517 to 1917 cannot remain indifferent to what is happening in the region today. Neither can it remain indifferent to what is happening in Iraq, which it administered for nearly 500 years, because various reasons will push it there. Take the matter of the Aegean islands. These islands were under Ottoman rule for centuries. The Aegean was an Ottoman lake. But there was a collapse and dissolution. The Ottoman state was divided into many pieces. When the Ottoman empire collapsed these pieces were given to different peoples. Now there are certain problems that result from this. Turkey is faced with all of these. So what is it to do in this case? There is only one thing to be done. To look out for my national interest. But the great Ataturk made a very important remark. He says that those who govern should choose to pursue those interests of the nation that have a possibility of being realized. In other words, he blocks the way to adventure.

But those who govern are always under pressure. Public opinion does not always give those who govern a measured push. In the final analysis, however, the man on the street will say, "I put you there to govern because you are clever. So go ahead and do what is right." Therefore Turkey will continue acting according to its national interest and in a calm manner. Turkey is a great country and it will act in a way that befits a great country.

Turkey is a peaceful country. Its being peaceful is not a sign of weakness. I think being peaceful is rational. Ataturk has another remark. He says that unless it is vital, war is tantamount to murder.

Turkey has to do everything through dialogue, especially in today's environment. If the other side does not want dialogue, it has to explain this to world public opinion. What I am saying should not be misunderstood. If Turkey has no option but to use force, it will do so, and it will not be blamed for this.

Turkey in today's world

Today Turkey is strong in her region and in the world and is working for integration with the world in every way. Although she is situated in one of most turbulent regions of the world, she is pursuing with determination a course aimed at fulfilling the opportunities opened to her from the Balkans to central Asia. If we are to look at Turkey from the vantage point of foreign relations, it is clear that this country is living through a period in which she can feel her strength in a manner never seen before. As a matter of fact, Turkey has everything required for a brighter future.

First and foremost, we have shown the world that, as a great democracy, we can play a very important role in the quest for peace, prosperity, stability and freedom. We can put forward onto the international scene our democratic traditions, dynamic economy and our enthusiasm for a contemporary way of life; and as such, present a model to be emulated by others.

No other country in the world is as active as Turkey in such diverse international forums as NATO, the European Union, the Council of Europe, OSCE, the Organization of Islamic Conference, BSEC and ECO. The entrepreneurial power of this country is increasingly felt outside her borders. No doubt, our central geostrategic location presents multidimensional opportunities along with various responsibilities.

This country has achieved a very important position in Europe, the Balkans, central Asia, the Middle East and the Mediterranean, thanks to its multidimensional, honest and transparent policies supporting peace. It has shown itself to be an island of stability and prosperity in a region of turbulence.

Indeed, this country has a globally important role to perform.

It is important for the world that Turkey brings her own contribution to several current issues, ranging from the prevention of ethnic conflicts to the development of mechanisms for preventive diplomacy, and for rolling back every kind of radicalism.

Turkey is determined to continue fulfilling her part as she has done until now and to continue making great efforts in order to transform this vast area, ranging from Western Europe to the Far East, into a sphere of cooperation, prosperity and peace.

Our vision is to live in an environment of prosperity free of tensions and conflict.

The EU and Greece's anti-Turkish efforts

It is with this understanding that we handle questions we face in Turkey's foreign relations. Our western neighbour Greece, for one, denies the existence of several serious problems and does not demonstrate any inclination to negotiate them; preferring instead to pursue a policy of steady tension in our relations with third parties. Turkey will stand with determination against any faits accomplish the Greek side may advance that undermine Turkey's national interests and security.

Likewise, attempts by this country to obstruct the smooth functioning of the customs union, while trying to take advantage from the latest Kardak crisis, will prove to be futile.

The fact that the customs union was completed on schedule, is a very important milestone in our relations with the European Union. The perspective gained as a result of this important relationship should not be put under strain due to alien factors which have nothing to do with the core elements of the Union's relationship with Turkey. On the contrary, Turkey and Europe, which have common objectives, should work together in every field and move forward in a similar directions.

Again, it is important that the fruitful conditions that have emerged with the conclusion of the customs union are explained better to the international business community, and primarily to that of the United States and Far Eastern countries, because increasing foreign investments is important for us. It is equally important that in the days ahead, regulations in the economic and social fields which fall short of EU standards are adjusted and upgraded accordingly.

The TRNC remains very important for Turkey

On the other hand, we are taking measures to counter any negative effect that the customs union may have on our relations with the Turkish Republic of Northern Cyprus. Cyprus is a national issue for Turkey. Here, our objective is to establish a bi-zonal, bi-communal solution that will be based on the equal sovereignty of the Turkish and Greek Cypriot sides, where the effective guarantee of Turkey is secured. We will continue to stand against efforts which propose so-called solutions outside of these essential parameters. Moreover, Turkey cannot accept the unilateral accession of the Greek Cypriot side to the EU.

It is a fact that the Turkish Republic of Northern Cyprus, isolated and kept under a continuous embargo by the rest of the world, is faced with economic difficulties. If a program geared to stability and structural change can be put in place by this republic, Turkey will support it. Addressing infrastructural shortcomings in the TRNC is another matter of priority.

Iraq must remain intact

While we remain hopeful over the Middle East peace process, we do not forget the situation in Iraq. Nor are we oblivious to such attempts to abuse the peace process as linking the issues of terrorism and water. We hope that Iraq returns to the fold of the international community with its territorial integrity intact, and that the agony of its people is ended. Meanwhile, speculation over a division of Iraq has served no purpose.

We believe the Turkish and Iraqi people to be brothers. Yet, the continuing authority vacuum in northern Iraq which has prevailed for so long has caused this region adjacent to Turkey to become a place where terrorists can find a safe haven. Turkey will never allow those terrorists to commit acts of atrocious violence against herself. We have shown this in the past and we will show it again if need be.

There are some problems with operation Provide Comfort and these are being taken up. At any rate, we will prevent northern Iraq from becoming a place where terrorist organizations threatening Turkey's security find a safe haven.

On the other hand, the Kirkuk-Yumurtalik pipeline should be saved from its current dormant status. Instead of trying to consider this question within an ambiguous political framework, and thereby making it open to abuse, we should try to take advantage of the new possibilities that have recently arisen, and deal properly with this issue which is, in essence, an economic matter.

Middle East peace, the water issue and terrorism

At the same time, the effort to import the water issue into the negotiations being conducted within the framework of the Middle East peace process -- as if we have certain unfulfilled obligations in this matter -- is alien to the nature and objectives of this process. Such attempts only serve to divert the matter to a wrong direction. Turkey has repeatedly explained to all concerned parties what constitutes the correct and scientific approach to this question. It is totally wrong to try to disrupt this framework and to follow a short-term approach based on tactical considerations involving the establishment of artificial links between this issue and the peace process. Such attempts will prove to be futile.

Furthermore, as the savage attacks in Jerusalem and Tel Aviv have demonstrated, one cannot separate terrorism and support for terrorism from the peace process itself. Supporting terrorism can in no way be justified. Any group which violates the right to life of innocent people or threatens the integrity of the state is a terrorist. If a state, which is known to be backing terrorism, stops supporting one terrorist group and continues supporting another for certain tactical reasons, this does not change the negative designation of that state, nor the intensity of the reaction that should be shown by the international community towards it.

The Caucasus

It is not only the south that is afflicted with problems.

Conflicts exist in the east also. We are making great efforts, and in good faith, to help resolve the Nagorno-Karabakh dispute.

We have done the same with respect to the problems of Georgia.

We have always recognized that peace and stability in the Caucasus affect Turkey directly because the region is our gateway to Central Asia, where we have growing and diversifying relations.

This also shows that the issue is not solely directed by our cultural identification with the peoples of the region. Part of the problem is the fact that conflicts in the Caucasus prevent Turkey from utilizing the vast potential that lies before her.

Instead of today's depressing situation in the region, imagine a situation where all the countries of the Caucasus can reap the benefits of growing confidence and cooperation. In fact, these countries have all the resources and the will to develop, to live a modern life, and to prosper materially and morally.

Turkey wishes to see this come about, and strives to realize this dream. To achieve this, the Azerbaijan-Armenia dispute must be resolved, on the condition that the Armenians start to withdraw from the Azeri territories that they occupy.

We visualize the construction of gas and oil pipelines as part of the cooperation initiatives which we wish to see in the region. Such initiatives create the opportunity for assisting in the process of integrating countries in the region with one another. All sides have much to gain from this initiative.

Therefore, everyone should refrain from monopolistic attitudes and instead, make efforts that serve the common interest in an open manner and without pressure.

Ties with Russia

Turkey's approach to relations with the Russian Federation is no different. The course of history has provided an important role for these two great regional powers to create a zone of cooperation and progress. Cooperation in this sense is not only justified but imperative.

The Russian Federation has faced some difficulties in its period of great transition and transformation following the breakdown of the Communist system. Difficulties may continue.

To take a specific instance, the Chechen crisis is not a simple affair. Russia, which today still comprises 70 percent of the lands of the Soviet Union, has opted for a show of force to prevent further splitting away and to mollify the feelings of despair of the Russian people. As this is going on, nations are not prepared to alienate the present administration in Russia, is case something much worse comes in its place and returns the world to the days of the Cold War. The elections to be held in Russia will be very important, I must underline this.

One sure thing, though, is that Turkey, as demonstrated in the case of the recent hijacking of the Avrasya ferryboat -- which also carried Russian passengers -- has proved to be a country aware of its international responsibilities.

Turkey has shown that terrorism cannot be justified, no matter in what form. It is one thing for citizens of a democratic country to express their indignation and concern over certain events and to establish organizations in order to disseminate their indignation and concern to other citizens, again in a democratic manner; and, quite another thing to directly support terrorism. Turkey never supports terrorism and expects others to display the same concern. Terrorist organizations are naked. No matter what disguise they wear, an incriminating part will always be revealed. We should like to draw the attention of others to this fact.

Central Asia

Central Asia is of the utmost importance to us, and to the world. Today the Commonwealth of Independent States is talking about integration. I said it before. It appears there is no turning back. But although this is the way it looks it is still not clear what will happen. At any rate a new opportunity has arisen for the world. A new continent called Eurasia has emerged. The states in Eurasia must be able to preserve their independence. This is a matter that concerns us, and the world, very closely.

Once the reality of Eurasia came to the fore, Turkey considered it a duty to pioneer the integration of this part of the world with the international community. Our sole desire is to see these nations develop in an environment with an outlook of democracy, secularism and the free market economy. It is only natural that we offer these nations, with whom we share the same roots, our experience and capabilities. Our approach is to offer them what they need and not what we perceive they need. That is why we have to proceed with institutionalized cooperation. Our relations, from communication to education, commerce to economy, infrastructure projects to cultural activities, should be perceived from this vantage point. We are eager to continue our efforts in this direction.

Turkey, the Balkans and the Black Sea basin

It is important to note that Turkey's active relations are no limited to the East. Our relations with the countries in the Balkans are particularly special. It is natural that our relations with the Balkan countries flourish and diversify in an era when democracy and the will and choice of the people is the dominant approach, and when borders are increasingly transparent. This also brings to the fore the need for the realization of great joint projects which serve the common interest, bring people closer together, and thus pave the way to eventual integration. The proposed West-East Corridor project is one example in this context.

Turkey is resolved to develop relations with these countries, as well as the countries of the Black Sea basin, and wishes to help make this region part of the growing globalization effort.

We therefore consider the Black Sea Economic Cooperation Organization (BSEC), and the Economic Cooperation Organization (ECO) as two important regional organizations that group our efforts and give them an overall framework and outlook to operate from. We shall, therefore, always be enthusiastic toward these organizations and continue to play a leading role in their activities.

There is no country in the world which can claim that its policy on Bosnia-Herzegovina has been so justified, so consistent and so correct from the very beginning as Turkey's.

In the long run, we came to the point in Bosnia-Herzegovina which we had foreseen at the beginning. Unfortunately, not only years had been lost during this delay, we also witnessed great human losses, affronts to humanity and great tragedies. Now, it is time to look forward. Turkey's responsibility in the coming days is to continue its active assistance in healing the wounds of this suffering country, and to help in its reconstruction and economic development efforts. Together with other leading nations, we are part of the Steering Committee which is to coordinate relief and assistance to Bosnia. We must succeed in these endeavors. We also share part of the responsibility to help implement the Bosnian-Croatian Federation accord. We shall fulfill our responsibilities in a credible and sincere manner.

Enhanced ties with the US

All areas of conflict which attract Turkey's interest are at the same time areas in which we cooperate with the United States. For almost half a century, Turkish-American relations have been based on common interests which have enabled the two allies to boldly emerge from the challenges of the Cold War and to develop the tradition to cooperate on issues that threaten international peace and security.

These relations are developing to the benefit of both peoples.

Today, as the security dimension of our traditional relations continues, both Turkey and the United States agree that we should add new dimensions and enrich our relations, particularly in the areas of economy, commerce and culture.

We welcome the designation of Turkey by the U.S. Department of Commerce as one of ten "Big Emerging Markets." This designation not only justifies the need for the United States to invest more in Turkey, but also provides sound reason for other countries to direct their investment toward Turkey.

Our relations with the United States is based on an understanding of enhanced partnership, and our efforts are directed to realize this aim in every dimension. The implementation of the Defense and Economic Cooperation Agreement (DECA) should reflect this understanding better and our relations should be pursued in a more "result-oriented" manner.

Indeed, Turkey and the United States have much to accomplish together by coupling their resources and expertise, especially when economic and trade relations with third parties are concerned.

A world of opportunities

Therefore what we see to the West, to the East, and in all four directions, is not only a world beset by problems. We also see a world of opportunities. Once this is understood, the results that Turkey seeks to achieve in the arena of international relations will be better understood as well. It will be seen why we so sincerely believe that we can enrich the European Union, rather than be a burden to it; why we are working to add new dimensions to our relations with the United States; why our relations with the Turkic Republics of Central Asia are continually deepening; why we search for new forms of cooperation in regions where our historic presence is felt; why we try to care for historic monuments; and why we pursue the aims that we pursue within the context of the BSEC and ECO.

The questions that we face in Turkey's foreign relations at the threshold of a new century contain great opportunities, while at the same time containing elements of threat which require us to act with restraint. This is why it is more important than it has ever been to pursue an unambiguous line in foreign policy that will continue to uphold the model qualities of Turkey.

First and foremost, it is high time for all those who prefer to continue with a policy of steady tension, and refuse to understand our legitimate concerns and the results that we seek in foreign policy -- which we sincerely believe to be to the benefit of our region as a whole -- to start perceiving Turkey correctly. They should do so instead of continuing to denigrate Turkey almost as if this were their career These include those who connive with terrorism and use it as a method of state, and still expect to benefit from this misguided conception of national interest; as well as those who refuse to try to appreciate that the success of the Turkish model is intimately linked with the eventual success of an enlightened world based on the freedom of the individual and where nations cooperate.

If they perceive Turkey correctly then they will be on the side of peace, cooperation, prosperity and friendship.

As for Turkey herself, what I want to say in conclusion is this: There are all these things going on around us. Tomorrow there may be worse to come. No one can tell what will happen.

But there are three important preconditions for Turkey to keep its head above water despite all this, and to move toward the future with confident steps. The first of these is a strong democracy. The second is a growing, strong, and hard currency earning economy. And the third is well educated, well equipped armed forces in the service of democracy. If these three things can be secured, then it makes no difference that such and such has happened here or such and such has happens there. The fire will not jump to Turkey. We are going to solve everything with this combination and Turkey will continue in this way with its business, both as a regional country, and as a member of the international community.