Turkish Daily News, 96-05-15

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From: Turkish Ministry of Foreign Affairs <http://www.mfa.gov.tr>

TURKISH DAILY NEWS
15 May 1996

CONTENTS

[01] Turkey mending fences with Iran

[02] World Bank to grant $250 m. for Turkish highways projects

[03] Privatization office seeks final approval for five cement sell-offs

[01] Turkey mending fences with Iran

By Yusuf Kanli
Turkish Daily News

ASHKABAD, Turkmenistan- While relations between their two countries are still recuperating from the impact of a spy-diplomatic crisis, the presidents of Turkey and Iran have been the key players over the past two days in an effort aimed at mending the fences between the two biggest countries in this region.

"We had lengthy discussions. We have discussed everything," President Suleyman Demirel told the Turkish Daily News concerning his contacts with Iranian President Ali Akbar Rafsanjani. The Iranian leader hosted Demirel and 10 leaders from the former Soviet republics of central Asia and the Caucasus for two days of ceremonies marking the revival of the ancient Silk Road-- a railway link between Turkmenistan and Iran.

Although President Demirel said that as president he should not be expected to discuss such issues as the case of the spy-diplomats, the TDN was told by well-placed sources that all aspects of bilateral relations were handled at the meeting of the two heads of state.

Underlining that there has not been a clash between the two countries over the past 362 years, the president said it was only normal for neighboring countries to have problems from time to time. He said it was important that the two countries managed to overcome their problems through peaceful means. He added that the spy-diplomats case had been handled at the appropriate level and by the appropriate officials. "As president I'm above these things," he said.

The two countries faced a diplomatic crisis last month following the testimony of a Turkish Islamist hitman who accused eight Iranian diplomats of involvement in various terrorist activities on Turkish territory. After Turkey asked for information from Tehran on the matter, Iran reciprocated by charging that four Turkish diplomats had been involved in spying. The crisis ended when both sides pulled back the diplomats who had been accused by the other side.

Impressed by his contacts with the Iranian leader and by the ceremony held to launch the railway link between Iran and Turkmenistan, Demirel declared things were no longer black and white and stressed that "the Iranian reality must be carefully reevaluated. The central Asian reality must be carefully reevaluated."

Demirel termed Iran a "big country" not only geographically,but also in its great agricultural and industrial capabilities.

President Demirel stressed that the ceremony inaugurating the railway link between Iran and Turkmenistan was impressive, as twelve heads of state, among them the leaders of warring Armenia and Azerbaijan, as well as the leaders of Pakistan, Tajikistan and Afghanistan, sat around a table and talked about cooperation. He said results could not be achieved overnight. "Patience is required," he stressed.

The Turkmenistan-Iran link is providing the central Asian Turkic republics, as well as Armenia and Georgia, with a direct railway link to Turkey. But Demirel said Turkey had to complete construction of some 100 kilometers of railway around Lake Van, and Kazakhstan needed complete the railway to its border with China, before it was possible to talk about a modern Silk Road from London to Beijing.

(TDN, 15.05.1996, page 1)

[02] World Bank to grant $250 m. for Turkish highways projects

ANKARA- The World Bank and the Turkish government finalized on Tuesday talks on a $250 million 17-year loan to finance Turkey's $400 million highway improvement and traffic safety project.

The semi-official Anatolia news agency reported from Washington that the loan agreement would be signed within a month after approval by the Turkish Cabinet and by the World Bank's Board of Directors.

The project covers rehabilitation work on road infrastructure, which is expected to reduce transport costs. It also covers managerial and technical arrangements to increase traffic safety on public roads.

Improvements will be made on 900-kilometer-long public roads. New signalization systems will be installed at points where traffic accidents are most frequent.

(TDN, 15.05.1996, page 2)

[03] Privatization office seeks final approval for five cement sell- offs

ANKARA- Having won the green light from the Industry and Trade ministry, Turkey's privatization office, the OIB, has appealed to the ultimate decision-making body, the High Board of Privatization (OYK), for final approval on five cement factory sell-offs.

The OIB had earlier appealed to the Industry and Trade Ministry to investigate allegations that some of the bidders were in fact "cover companies" used by those firms which sought to gain monopolistic powers in the cement industry. The investigation, however, did not prove the allegations.

During a bidding process April 16-24, five cement factories owned by state-run Citosan came close to privatization.

Rumeli Cimento, owned by the controversial business conglomerate Uzan group, made the highest bids for two cement factories, $125,890 for Lalapasa Cimento and $24,500 for Van Cimento.

A joint venture between the Turkish Armed Forces Pension Fund (Oyak) and construction company GAMA is close to buying Elazig Cimento with its $27,850 bid.

Kars Cimento will go to Cimentas Izmir Cimento, which offered $22,250, and Gumushane Cimento to Prekon Insaat for only $3,500.

(TDN, 15.05.1996, page 2)

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