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May 6, 1996, 3:00:00 AM5/6/96
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[Due to an error on part, some may receive duplicate copies of the
following. TRKNWS-L]

TURKISH PRESS REVIEW

MONDAY MAY 6, 1996

Summary of the political and economic news in the Turkish press
this morning


TAJIKISTAN PRESIDENT IN ANKARA

President of Tajikistan, Imamali Rahmanov, is in Ankara on a
three-day visit as the official guest of President Suleyman
Demirel. Following his official contacts in the capital, Rahmanov
will journey on to Izmir, from where he will tour the ancient
city of Ephesus and visit Kusadasi.

Relationships between Tajikistan and Turkey will be taken up at
the highest levels, and Rahmanov will also want to speak with
Turkish leaders in the textile sector and other businessmen.
/Cumhuriyet-Milliyet/

DEMIREL LAUDS TURCO-JAPANESE COOPERATION AT ANKARA CEREMONY

President Suleyman Demirel, speaking at a ceremony to mark the
laying of the foundation of the Turkish-Japanese Foundation
Cultural Site in Ankara, told the audience that Turkish-Japanese
friendship will help to increase the technological improvement
that is turning the world into a global village. Demirel noted
the admiration Turkish people have for the Japanese and
continued: "It is a miracle how the Japanese reconstructed their
country after World War II". He stressed the fact that although
Turkish-Japanese relations have yet to reach their full
potential, they have improved. Demirel noted that Turkey was a
big market and a possible outlet through which Japan could open
up other markets. Demirel stated that 15 million Japanese
tourists travel overseas every year, and he said he hoped Turkey
would attract one million Japanese visitors. He pointed out that
Turkey has everything needed to attract the attention of Japanese
tourists. He also welcomed Japanese investment in Turkey and
said: "Turkey is an accountable country, committed to
international law and is an ideal place for investors".

State Minister and Deputy Prime Minister Nahit Mentese, who also
spoke at the ceremony, indicated that the Cultural Site was meant
to help introduce Turkish traditions and culture to the Japanese
and vice versa, and also to be a means of improving cooperation
between the two countries. Japanese Ambassador to Turkey,
Tahakiro Togo, who also spoke at the ceremony, emphasized the
importance of activities such as these in the improvement of
relations and cooperation between the two countries. /Cumhuriyet/

INITIATIVES FOR FULL MEMBERSHIP

Foreign Minister Emre Gonensay and Defence Minister Oltan
Sungurlu depart for Birmingham, Great Britain, today to attend a
meeting of the Western European Union (WEU) on Tuesday. Official
sources indicate that Ankara's principle aim at the meeting of
foreign and defence ministers will be to try to explore the means
of upgrading Turkey's associate status in the WEU and to try and
secure a more active role in the defence grouping's crisis
management activities. The Turkish side will be pushing for this
in the light of the role it played in UN peacekeeping forces in
Somalia and continues to play in Bosnia, where Turkish troops are
today deployed in peace-keeping role between formerly warring
Bosnian and Croatian forces. /Cumhuriyet/

AMBASSADOR WILL BE SENT TO BELGRADE

Turkey and the new Yugoslavia -comprising Serbia and Montenegro-
are preparing to raise their diplomatic ties to ambassadorial
level. Preparations to this end are underway and diplomatic
agreements have been sought by the two sides concerning their
candidates for ambassador. Turkey's candidate for ambassador is
Alev Kilic, a prominent Balkan expert at the Foreign Ministry who
commands wide respect among his colleagues from the Balkan
countries. New Yugoslavia's candidate for ambassador is said to
be the present Charge d'Affairs Darko Tanaskovic. The two
countries have been at loggerheads over the war in Bosnia where
Turkey has been a staunch supporter of Muslim Bosnians and Croats
while Belgrade is accused first of inciting the war and then
supporting ultranationalist "Chetnik" Serbs. It was Belgrade's
withdrawal of this support and acceptance of a US-sponsored peace
accord on behalf of the Bosnian Serbs -over the heads of their
leaders- that eventually stopped the war.

Turkey supported the inclusion of new Yugoslavia in the Black Sea
Economic Cooperation Organization (BSEC) during a meeting of the
organization's foreign ministers in Bucharest on April 27.
/Cumhuriyet/

TURKEY, EGYPT EXPLORE PROSPECTS FOR TECHNICAL COOPERATION IN
DEFENCE

Turkey and Egypt explored on Friday the prospects of technical
cooperation in the field of defence during a two-day working
visit of Egyptian Foreign Minister Amr Moussa. Egypt, whose
concern over the signing of a Turco-Israeli military training
accord, appeared eager to "activate" a defence technical
cooperation accord, signed in the early 1990s. Moussa, in a press
conference before his departure, signalled Egyptian eagerness for
the deal. Prospects for activating the accord were discussed by
Moussa and Turkish Defence Minister Oltan Sungurlu. Prime
Minister Mesut Yilmaz, who also received Moussa, said that Turkey
and Egypt were two countries that were pillars of stability in
the Middle East. /All papers/

TOURISM PEACE BETWEEN TURKEY AND GREECE

In the political arena Greece and Turkey are at loggerheads, but
in other areas of activity there are solid signs of friendly
cooperation-this especially so in the tourism sector.

Greek members of the tourism sector invited their Turkish
counterparts to a meeting in Athens, and this goodwill gesture
comes to fruition today, when the meeting begins. The Greek side
wants to cooperate more with Turkey in this vital economic sector
with the invitation to Athens. During their stay in Athens, the
Turkish tourism representatives will be taken on tours and will
meet with Greek officials in the tourism sector. /Milliyet/

TURKISH DAY IN NEW YORK

The May 18 Turkish Day in New York will celebrated again in the
traditional way with a march through the main streets of the
city. This will be the 15th celebration and it will be attended
by President Suleyman Demirel, Prime Minister Mesut Yilmaz,
Foreign Minister Emre Gonensay and State Minister Ali Talip
Ozdemir.

The walk itself will be organized by the Federation of Turkish-
American Associations (FTAA), and there will also be meetings,
folklore exhibitions and other activities featuring Turkey. It is
anticipated that around twenty thousand people will support the
Turkish Day activities. /Cumhuriyet/

TURKISH SATELLITE LAUNCHING SOON

The launching of TURK-SAT 3 is planned for June 20, said Minister
for Transport and Communications Omer Barutcu over the weekend.

Noting the technicalities involved in the launch project, the
minister went on to say that this project filled Turkey with
pride as Turkish teams went from success to success in this
hi-tech project. Speaking during a visit to the Black Sea town of
Zonguldak, Barutcu also commented on the extensive domestic
projects that the government was pushing ahead with in the region
that would lead to more employment and development. /All papers/

"MILITARY EXCHANGES" WITH RUSSIA

As detailed in the Official Gazette, Turkey and Russia are
working to bring about the cultural exchange of military officers
as foreseen in a protocol agreement between the two countries.

The protocol says that during the months of June-September,
officers and their families should be "exchanged" to promote
better ties, information and cultural understanding. Both sides
have agreed that not just high-ranking officers, but military
personel at all levels should be included in the programme.
/Hurriyet/

DENKTAS CALLS ON KLERIDES FOR FACE-TO-FACE TALKS

Turkish Cypriot President Rauf Denktas has called once again for
face-to-face talks with Greek Cypriot leader Glafkos Klerides,
saying that the Cyprus problem could only be solved by means of
direct contacts. Issuing a written statement on Sunday, Denktas
said that the solution to the Cyprus problem rested on both
sides' acknowledging the basis laid down by the agreements of
1961 that saved the island from being merely a (British) colony.
He said the basis of the those agreements was the political
equality and sovereignty of the two communities on the island as
well as the notion of bi-communality. /All papers/

ARAFAT PRAISES TURKEY'S SUPPORT FOR PALESTINIAN CAUSE

Palestinian President Yasser Arafat, taking a different position
from other Arab countries, has refrained from any direct
criticism of Turkey for its recent military accord with Israel
and has instead praised Ankara for its unwavering support to date
for the Palestinian cause. Arafat was talking on Thursday at a
press conference he held at the UN headquarters in New York after
a working lunch with UN Secretary-General Boutros Boutros Ghali.
Arafat also referred to the recent visit to the Gaza Strip by
Turkish President Suleyman Demirel and said it must not be
forgotten that this was a successful visit. /All papers/

TURKISH SCHOOL IN MEDINA

The Turkish Primary School established in Medina, Saudi Arabia,
provides education for 400 Turkish children. The school schedule
includes computer training and English lessons. School Director
Sevki Con noted that the school has not been recognized
officially by Saudi authorities, and adding that this created
great problems asked Turkish officials for help. Official
recognition of the school requires timely provision of the
necessary school materials and documents, as well as supporting
the school with additional teachers. /Hurriyet/

PKK CONGRESS IN MOSCOW

The PKK terrorist organization and its political wing ERNK
convened yesterday in Moscow for the Second Kurdish Congress on
"Kurds living in the CIS and their problems". Russian officials,
after previously having allowed the meeting, changed policy and
asked delegates to leave Moscow. The congress, scheduled to last
three days, will continue outside Moscow and will be closed to
the press. 100 delegates, including representatives from Armenia,
Azerbaijan, Georgia and Kazakhstan as well as a group of former
DEP deputies are taking part in the congress. /Hurriyet/

WORLD READY WEAR CONGRESS IN ISTANBUL

The 12th World Ready Wear Congress starts tomorrow in Istanbul.
The congress will be held in the Ciragan Palace Hotel and will be
opened with a speech by Prime Minister Mesut Y lmaz. The congress
programme includes three sessions on "Global Consumer Behaviour",
"Strategic Cooperation in Developing Markets" and "Detailed Study
of Developing Markets". Other activities planned within the
framework of the congress include a World Young Stilists Contest
sponsored by Beymen, and a World Forum of Ready Wear Producers,
with the participation of Turkmenistan, Azerbaijan, Kyrgyzstan,
Kazakhstan, Georgia, the Ukraine, Bosnia-Herzegovina, the Czech
Republic, Hungary, Poland, Slovakia, Algeria, Morocco, Tunisia,
Bulgaria, India, Pakistan and Egypt. /Hurriyet/


TURKISH DAILY NEWS / 6 May 1996

Egypt: Strategical pacts in Mideast may invite counter pacts

Cairo says Israel holds the key to arms race in the region

Amr Moussa visit shows Turkey has to convince Arabs about PKK

By Ilnur Cevik

Turkish Daily News

ANKARA- Egyptian Foreign Minister Amr Moussa departed from the Turkish
capital convinced that the recent military training accord between
Turkey and Israel will not create a strategical alliance between the
two countries and thus ruin the delicate balances in the region.

Speaking to some leading newspaper editors at the residence of the
Egyptian ambassador Thursday night, the visiting foreign minister
stressed such an alliance would spoil the delicate balance of power in
the region and ruin the already fragile peace process.

"Turkish leaders explained to us that the agreement reached between
Turkey and Israel is very similar to the accords Ankara has signed
with more than a dozen countries and we are satisfied," the foreign
minister told the editors.

He said he was not informed about the content of the agreement but
added that the accord was not secret or beyond his reach. Amr Moussa
was informed that the agreement would be submitted to the Turkish
Parliament for approval.

Egyptian sources said they were concerned because a joint military
venture between Turkey and Israel which would especially create a
strategical alliance would be harmful not only to the region but to
the strong bonds that have been forged between Cairo and Ankara in
recent years. "We have a peace and cooperation agreement with Israel
but this is not a military pact and it does not create a strategical
alliance," Amr Moussa told the editors. "A strategical pact would only
invite counter reaction and would further create non-confidence in the
region," he warned.

Egyptian officials said Egypt as a friendly country to Turkey did not
create a fuss over reports that Ankara had made a military deal with
Israel, and had preferred to send its foreign minister to the Turkish
capital to get an on-the-spot picture of the real situation.
"President Suleyman Demirel and Foreign Minister Emre Gonensay assured
us that there is no strategical link between the two countries and we
are satisfied," Amr Moussa said.

The Egyptian foreign minister also stressed that while his country did
not approve of the Iranian policy of exporting its revolution abroad,
it also did not feel that arguments that Iran should not acquire
nuclear arms were valid. "Israel, which has refused to sign the
nuclear nonproliferation treaty, is allowed to have nuclear arms and
other countries in the region are not. This is not logical. If we do
not want Iran to acquire nuclear arms then Israel should also give up
its nuclear arsenal and thus put an end to the arms race. If not, an
arms race is inevitable," Amr Moussa declared.

The Turkish Daily News was told the Egyptians also feel very strongly
about the territorial integrity of Iraq. "We are against any moves
that will divide Iraq," the foreign minister said.

Egyptian officials privately told the TDN they do not want Iraq split
into three parts, with northern Iraq under Kurdish rule, central Iraq
controlled by Saddam Hussein, and southern Iraq becoming a Shiite
entity.

Amr Moussa said Egypt had voiced its concerns to the Western powers on
several occasions. He said Washington told Cairo the recent U.S. move
to patrol the skies of southern Iraq with its fighter planes based in
Jordan was "temporary" and the planes would be withdrawn.

"The people of Iraq are suffering. They do not have food or medicines.
The international community has a duty to help them and in this regard
we are also seeking help from Turkey," Amr Moussa said.

The Egyptian foreign minister also said his country condemns every
terrorist action levelled against Turkey. "We cannot tolerate actions
against Turkish society. If this comes from the PKK we also condemn
this action."

Egyptian officials accompanying Amr Moussa said they would raise
Ankara's concerns about the PKK and the water issue with the Syrian
administration. "Talking about your problems offers the best solution.
The Syrians will be informed about Turkey's deep concerns," the
officials said.

However, the officials stressed that Egypt needed more information
about the PKK before it condemned it. He hinted that Turkey should
also do some explaining to the Arab countries about the PKK as it does
to the Western countries. "If you lobby with the United States about
the PKK you should do the same with Egypt," a ranking Egyptian
official told the TDN.

Amr Moussa said the rise of extremism in the Middle East went hand in
hand with the injustices done to the Palestinians. "You cannot have a
solution in the Middle East as long as the Palestinians do not have
their own state," Amr Moussa said.

Yasser Arafat praises Turkey's support for Palestinian cause

Caution: Palestinian president refrains from criticizing Ankara's
military cooperation accord with Israel

Turkish Daily News

ANKARA- Palestinian President Yasser Arafat, taking a different
position from other Arab countries, has refrained from any direct
criticism of Turkey for its recent military accord with Israel and has
instead praised Ankara for its unwavering support to date for the
Palestinian cause.

Arafat was talking on Thursday at a press conference he held at the
U.N. headquarters in New York after a working lunch with U.N.
Secretary General Boutros Boutros-Ghali.

Questioned about a recent agreement permitting Israeli air force
pilots to train in Turkish airspace, he was quoted by Reuters as
saying: "The most important thing to me is that there are good and
strong relations between Turkey and the Palestinians. Turkey supports
the demands of the Palestinian people and the... establishment of
comprehensive and lasting peace in the Middle East."

Arafat also referred to the visit to Gaza by Turkish President
Suleyman Demirel and said it must not be forgotten that this was a
successful visit, the Anatolia news agency,also reporting on the press
conference, said on Thursday.

The military cooperation accord Turkey signed with Israel in February
has come under fire from the Arab League, individual Arab countries
and Iran for "serious risking the disruption of regional balances."

Egyptian Foreign Minister Amr Moussa, whose country spoke out against
the accord, was told in Ankara on Thursday that the arrangement
between Turkey and Israel did not target any country in specific and
could not be considered a step at forming a "strategic alliance."

Turkey, Egypt explore prospects of technical cooperation in defense

Turkish Daily News

ANKARA- Turkey and Egypt explored on Friday the prospects of technical
cooperation in the field of defense during the two-day working visit
of Egyptian Foreign Minister Amr Moussa.

Egypt, whose concern over the signing of a Turco-Israeli military
training accord, appeared eager to "activate" the defense technical
cooperation accord, which had been signed in the early 1990s.

Moussa, in a press conference before his departure, signalled the
Egyptian eagerness for the deal.

According to diplomats from both sides, the accord is as important as
the Turco-Israeli deal, which Ankara assured was a "largely routine
one" that Turkey signed with many other countries.

The prospects of activating the accord was discussed by Moussa and
Turkish Defense Minister Oltan Sungurlu. "It is important that your
visit took place after the clouds of anger have dissolved," Sungurlu
said, in a thinly-veiled reference to the Arab wrath against the
Turco-Israeli deal.

Prime Minister Mesut Yilmaz, who also received Moussa, said that
Turkey and Egypt were two countries that were the pillars of stability
in the Middle East.

Coalition crisis lingers on

Mistrust between coalition partners lingers in the wake of ANAP
support for the anti-Ciller RP motion for a parliamentary
investigation of TEDAS. Next week the Parliament will vote on another
motion of this kind, this time involving alleged irregularities in the
TOFAS sale. ANAP is expected to turn its back on its coalition partner
on that issue too. The TOFAS vote will determine the fate of the
DYP-ANAP coalition government

By Kemal Balci

TDN Parliament Bureau

ANKARA- The True Path Party (DYP)-Motherland Party (ANAP) coalition
government has been plagued by a confidence crisis since April 24 when
some ANAP deputies voted in favor of a Welfare Party (RP) motion
calling for a parliamentary inquiry into alleged irregularities
committed in the awarding of electricity contracts under DYP leader
Tansu Ciller's prime ministry.

The confidence crisis is turning into a fully-fledged government
crisis. The second motion introduced against Ciller will be put to a
vote in the Parliament on May 9. If the ANAP deputies turn their back
on their coalition partner in that vote too, the coalition may
collapse.

DYP officials, still simmering with resentment over the fact that some
ANAP deputies voted against their leader Ciller on the Turkish
Electricity Distribution Company (TEDAS) issue, have a tendency to
cause problems for ANAP by delaying government action. First, the DYP
wing of the coalition government boycotted government meetings. Then,
to create problems for ANAP leader Mesut Yilmaz, they refused to sign
any government decrees. DYP leader Tansu Ciller publicly complained
that the government had done nothing since Mesut Yilmaz became the
"rotating prime minister" two months ago, and that Mesut Yilmaz had
not performed successfully.

The DYP side not only boycotted government meetings but also prevented
the convening of the Central Bank General Assembly meeting last week.
State Minister Yaman Toruner, who is a member of the DYP, tried to
attend the meeting as the Treasury representative. On the agenda was a
discussion of the bank accounts of the period during which Toruner
himself had been the Central Bank governor. When Prime MInister Yilmaz
got wind of Toruner's attempt, he sent written orders which said that
State Minister Rusdu Saracoglu of the ANAP, another ex-Central Bank
governor, was authorized to represent the Treasury at the meeting.
Following the incidents which prevented the convening of the Central
Bank General Assembly, Toruner had a quarrel with Prime Minister
Yilmaz, reportedly telling him, "I will not take orders from you."

In the face of the "obstructionist" attitude of his coalition partner,
Prime Minister Mesut Yilmaz decided to adopt new tactics. After the RP
motion on TEDAS was adopted by the Parliament, Yilmaz did not even
phone Ciller. And he did not invite State Minister Yaman Toruner to a
recent "summit meeting" where key economic decisions were made.
Angered by that development, Toruner boycotted the government meeting
which discussed the May Day incidents in Istanbul.

During a telephone conversation he had with Ciller on Wednesday,
Yilmaz said he would not change his basic stance regarding the motions
introduced against Ciller, which he recently summed up as: "The ANAP
deputies are free to vote in any direction according to their own
consciences."

Yilmaz has also decided to stage a press conference next Monday to
explain to the general public his government's performance in the past
two months. He has already announced that the ANAP-DYP partnership was
continuing in line with the coalition protocol, and that ANAP would
not be the side which ends the coalition government, unless faced
"with an act contrary to the coalition protocol."

Meanwhile, desperate not to be seen as the person who ended the
coalition because of a motion introduced against her, Tansu Ciller
decided not to pull the DYP from the coalition at least until May 9
when another motion on alleged irregularities will be debated and put
to a vote. She will make a final decision on May 9 if she fails to get
from her coalition partner the support she expects. That motion
involves alleged irregularities in the sale of the state-owned shares
in TOFAS car company.

Though it continues to exist legally, the DYP-ANAP coalition is not
functioning anymore. Whether it will be brought to an end legally too
will depend on the DYP circles' capacity to endure the anti-Ciller
motions being introduced one after another.

Meanwhile, there are reports indicating that ANAP officials are having
"secret" talks with the Welfare Party with a view to reviving the
coalition talks between the two parties if the current DYP-ANAP
coalition collapses.

TURKISH DAILY NEWS / 5 May 1996

Western Thrace issue discussed at International W. Thrace Congress

By M. Akif Beki

Turkish Daily News

ISTANBUL-The second International Western Thracian Turks Congress
opened Saturday at the Holiday Inn Crowne Plaza to discuss proposals
for solving the Western Thracian problem. The two-day congress aims at
discussing the Western Thracian issue together with all of the Western
Thracian Turkish organizations around the world. Putting the issue on
the public agenda is being organized by Western Thrace Turks
Solidarity Association. Many Western Thracian Turkish politicians and
civilian organizations' representatives from foreign countries and
Turkish ministers and members of parliament participated to the first
session of the congress, expressing their ideas and feelings.

The Western Thracian Turks' problem which came into existence after
the collapse of the Ottoman Empire at the beginning of the century has
been a serious cause of conflict between Turkey and Greece. Sometimes
this conflict has come to the point of turning into a war as it did
during the recent Kardak crisis and officials of both countries accuse
each other of being the source of the problem.

The second International Western Thracian Turks' Congress opened at
the same time that Greek Prime Minister Costas Simitis was visiting
the Western Thrace area. It is not known whether this is a coincidence
or planned but the participants expressed how much they wanted peace
and brotherhood between the two communities. This was the most
frequently mentioned point at the congress which was only first held
in 1995 in Turkey.

"Our main aims are to present the violence acts against the Western
Thracian Turkish community's personal and communal rights to the world
public and to ask for support for our true claim" expressed Taner
Mustafaoglu, chairman of Western Thracian Turks' Solidarity
Association, in his opening speech.

Mustafaoglu pointed out that their struggle will continue within the
solidarity of the Turkic community and all of the Western Thrace
Turkish organizations around the world, especially in the Germany and
Australia.

Both partners of Turkic government are represented by the Motherland
Party's Lutfullah Kayalar, minister of finance and True Path Party's
(DYP) Yildirim Aktuna, the health minister.

"The Turkish government is most sincere and serious about solving the
Turk-Greek crisis as showed this recently," stated Kayalar clearly
while presenting Prime Minister Mesut Yilmaz's excuses for not being
able to participate to the congress.

Aktuna, whose visit to Western Thrace last year caused a number of
incidents, said that he wants to visit Western Thrace again soon as a
peace ambassador. "We never forget this principle of the Great Atat rk
in foreign affairs -- peace in the home, peace in the world. That is
we have no claims on Greek lands," he pointed out.

Alparslan T rke , the leader of Nationalist Action Party (MHP) and
Tansu Ciller, former PM and leader of the DYP (DYP) did not
participate in the congress despite announcements previously that they
would attend.

Isik Ahmet, wife of Western Thracian Turkish leader Dr. Sadik Ahmet,
who had lost his life in a traffic accident, made a speech expressing
her husband's struggle. She added that "This struggle will not end".
Isik Ahmet has been leading the Democracy, Equality and Peace Party in
Greece since her husband's death.

The first session of the day ended after many speeches made by Turkic
politicians and leading figures of Western Thrace Turks. The congress
continued with group studies on different issues such as economy,
education, religion and political rights. The study groups are to
present their results Sunday in report form.

TURKISH DAILY NEWS / 4 May 1996

Gonensay and Sungurlu to push for full membership for Turkey at WEU

Greater role: In the absence of full membership Ankara still wants
greater say in the WEU's decision-making mechanism on collective
security matters

Turkish Daily News

ANKARA- Foreign Minister Emre Gonensay and Minister for Defense Oltan
Sungurlu depart for Birmingham, Great Britain,today to attend a
meeting of the Western European Union (WEU) on Tuesday.

Official sources indicate that Ankara's principle aim at the meeting
of foreign and defense ministers will be to try to explore the means
of upgrading Turkey's associate status in the WEU and to try and
secure a more active role in the defense grouping's crisis management
activities.

The Turkish side will be pushing for this in the light of the role it
played in U.N. peacekeeping forces in Somalia and continues to play in
Bosnia where Turkish troops are today deployed between formerly
warring Bosnian and Croatian forces.

Reports, however, that the European Union wants to form much closer
links with the WEU to try and effectively turn this organization into
the Union's defense arm have disturbed official circles in Ankara.

Always a keen NATO ally, Ankara has nevertheless wanted further
participation in the WEU. If this organization officially becomes the
EU's defense wing, the worry in Ankara is that this will diminish
Turkey's chances of becoming a full member in the organization since
it is not a full member of the EU.

Turkey has also opposed the strengthening of the WEU as a European
defense entity at the expense of NATO and has always been a staunch
supporter of the "Atlantic link" in this regard.

Both Foreign Minister Gonensay and Defense Minister Sungurlu are
expected to raise these concerns in Birmingham and put the Turkish
desire for full WEU membership on the record once again.

Even in the absence of a viable perspective with regard to such
membership, Turkey is still said to be pushing for a greater role in
terms of the WEU's decision-making mechanism on collective defense and
security issues.

A topic that will be taken up in Birmingham and which the Turkish side
will be taking a keen interest in is the question of how Russia and
Ukraine will be integrated into the Western defense fold.

Turkey, which has delicate ties with Russia on defense and security
matters and which looks on Ukraine as a natural ally, is keen on
seeing these two countries gradually integrated in the European
defense environment because it considers this a means of enhancing its
own security.

It has however opposed a hasty admittance of Russia into NATO
believing that hurried full membership for Moscow could have
destabilizing and weakening effects on the alliance.

Demirel lauds Turkish-Japanese cooperation at Ankara ceremony

Turkish Daily News

ANKARA- President Suleyman Demirel, speaking at a ceremony to mark the
laying of the foundation of the Turkish-Japanese Foundation Cultural
Site in Ankara, told the audience that Turkish-Japanese friendship
will help to increase the technological improvement that is turning
the world into a global village, the Anatolia news agency reported.

Demirel noted the admiration Turkish people have for the Japanese and
continued, "It is a miracle how the Japanese reconstructed their
country after World War II."

When he learned that the cameras used by the photographers at the
ceremony were made in Japan, Demirel pointed out that technology knows
no borders. He emphasized the fact that if the product manufactured is
of good quality, then it would be used all over the world. He also
stated, "What you produce must be better than the competition. We
should be able to say that we can do as well as the competition. And
what is more, that we will do even better than they can. Japan is a
country which has overcome the problem of finding resources. It is not
my major concern to praise Japan, but to show that progress and
development are possible to achieve."

He stressed the fact that Turkish-Japanese relations have yet to reach
their potential, but have improved. Demirel noted that Turkey is a big
market and a possible outlet for Japan to open up other markets.

Demirel noted that 15 million Japanese tourists travel overseas every
year, and he said he hoped Turkey would attract one million Japanese
visitors. He pointed out that Turkey has everything needed to attract
the attention of Japanese tourists.

He also welcomed Japanese investment in Turkey and said, "Turkey is an
accountable country, committed to international law and an ideal place
for investors."

State Minister and Deputy Prime Minister Nahit Mentese, who also spoke
at the ceremony, indicated that the Cultural Site was meant to help
introduce Turkish traditions and culture to the Japanese and vice
versa, and also to be a means to improve cooperation between the two
countries.

The president of the Turkish-Japanese Foundation, Cafer Tayyar
Sadiklar, said that the administrators of the Foundation, which was
established in 1993, would comprise Japanese ambassadors, businessmen,
academics and the presidents of related associations. He also stated
that the cultural site will include concert and conference halls,
classrooms, a research center, a Japanese garden and a health center.

The Japanese Ambassador to Turkey, Tahakiro Togo, who also spoke at
the ceremony, emphasized the importance of activities such as these in
the improvement of relations and cooperation between the two
countries.

Denktas calls on Clerides for face-to-face talks

Turkish Cypriot president says Clerides should be thankful to Turkey
which saved him from a mass grave in 1974

Turkish Daily News

ANKARA- Turkish Cypriot president Rauf Denktas has called once again
for face-to-face talks with his Greek Cypriot counterpart Glafcos
Clerides, saying that the Cyprus problem could only be solved by means
of direct contacts.

Issuing a written statement on Sunday, Denktas said that the solution
to the Cyprus problem rested on both sides' acknowledging the basis
laid down by the agreements of 1961 that saved the island from being a
mere (British) colony.

He said the basis of those agreements was the political equality and
sovereignty of the two communities on the island as well as the notion
of bi-communality.

Recalling that it was not Turkey that started the Cyprus problem,
Denktas said that if Clerides was arguing the contrary then he should
read his own biography.

"Has he forgotten that he wrote that it was they who tried to destroy
the joint state of Cyprus by trying to turn it into a Greek state?"
Denktas asked.

"Clerides is also the person who wrote that they would not give up
their efforts to turn Cyprus into a Greek republic, and that if need
be they will fight again to this end," he added.

Denktas said that instead of castigating Turkey, Clerides should be
thankful to this country.

He indicated that if Turkey had not intervened in 1974 then Clerides
today would probably be in a mass grave along with other opponents of
the Greek Cypriot coup leaders who tried to overthrow the government
of Archbishop Markarios at the time.

"Let Clerides understand these facts and let him come for face-to-face
talks," Denktas said in his statement.

Government's week of destiny starts

Crunch time: With Ciller threatening to withdraw from the government,
Yilmaz will today announce his package of economic measures. Most of
these require amendments in legislation; however, passage of these
laws seems impossible

TDN Parliament Bureau

ANKARA- Motherland Party (ANAP) Chairman and Prime Minister Mesut
Yilmaz is entering the most difficult week of his two-month
government. On the one hand his coalition partner, the True Path Party
(DYP), threatens Yilmaz with withdrawing from the government while on
the other hand he is preparing to take economic austerity measures, a
very difficult step for a minority government.

Even if Yilmaz achieves this without leading to the dissolution of the
Motherpath government, he is concerned that he may be unable to
perform any work due to obstructions by his coalition partner.

Today Yilmaz will discuss at a press conference the actions taken by
his two-month-old coalition government. He will also announce the
economic measures which he is considering. Among these measures are
the taxation of state debenture bonds and Treasury bonds, and quests
for new financial sources, which would draw the adverse reaction of
business tycoons and bankers.

In addition to economic measures which would lead to conflict between
his government and businessmen, other measures such as increasing the
retirement age and raising the cost of insurance premiums are expected
to draw significant reaction from unions.

At the same time that he is attempting to adopt economic measures,
which are very difficult for a minority government to implement,
Yilmaz is also facing threats by his coalition partner on the issue of
quitting the government or not getting enough support for the
amendment of certain legislation necessary for the economic measures
to be implemented. The passage of a parliamentary motion regarding the
launching of an inquiry into DYP Chairwoman Tansu Ciller concerning
the alleged corruptions at TEDAS had earlier led to a crisis of
confidence.

The motion, introduced by the pro-Islamic Welfare Party (RP), was
passed by 232 votes to 179 in the 550-seat Assembly, in a secret vote
during which many deputies from Yilmaz's ANAP apparently voted in
favor of the investigation.

The Parliament will decide on whether or not to recommend charges to
the court after a 15-person commission of inquiry, which will convene
over a four-month period, studies the allegations and presents its
report. The Ciller opponents, however, have to muster 276 votes in the
Parliament to send Ciller before the Supreme Court.

On May 9, Parliament will vote on another motion for an investigation
of Ciller for her alleged corruption in the automotive concern TOFAS.
The RP demands an inquest that will examine the privatization of state
shares in TOFAS. How ANAP deputies vote on the TOFAS motion will
indicate how pronounced is the crisis of confidence. ANAP deputies'
vote for the TEDAS inquiry very much angered the DYP deputies and made
them consider the possibility of withdrawing from the government.

If ANAP backs the TOFAS probe, the government partnership will
actually cease on the part of the DYP rank and file; however, it would
continue from a legal perspective and because of political tactics.
Both the DYP and ANAP are determined to maintain the coalition
partnership, in order not to be blamed for breaking up the coalition
and risk losing popular support. However such a stance is viewed as a
tactic by the DYP to keep Yilmaz from succeeding.

DYP to continue its obstruction

On every occasion, DYP deputies show their anger at ANAP for backing
the Welfare Party (RP) motion to investigate their leader Ciller. DYP
ministers boycotted the first Cabinet meeting following the
parliamentary passage of the TEDAS probe. ManyDYP ministers did not
attend the second Cabinet meeting held after the bloody May Day
commemorations. They also continue to resist signing any decree which
requires government decision. They have also put the government into a
difficult situation by hindering the general assembly of the Central
Bank (CB). Despite Yilmaz's written instruction, DYP State Minister
Yaman Toruner attended the CB general assembly, saying he would not
take any order from Yilmaz. Yilmaz had asked ANAP State Minister Rustu
Saracoglu to represent the government at the CB general assembly. The
CB assembly has been postponed until May 16. The delay means that the
government does not have a program of monetary policies to follow.

Additionally, DYP Transportation Minister Omer Barutcu has entered
into open conflict with State Airports Operations Director General
Onder Karaduman. Yilmaz has refused Barutcu's request for Karaduman's
dismissal from his post. Barutcu has cancelled the bidding for
construction of a foreign lines terminal for the Istanbul Airport.
Thus this $250 milliontender has been annulled for the third time
since 1986. It is yet another problem that exists between the
coalition partners.

Many charge that Ciller has launched a campaign to discredit Yilmaz.
She has openly stated that her coalition partner has been unable to
achieve any work for two months and that he has merely wasted time
during this period. She has accused the government of weakness in its
response to the May Day violence, and asked whether instructions had
been given for the police force to remain passive during incidents in
Istanbul, which left three dead and scores of policemen and
demonstrators wounded.

Yilmaz however maintains his silence in the face of such adverse
reactions from his coalition partner. He has defended the coalition
partnership, saying that it is based on the items set forth in the
coalition protocol and that it would be irresponsible to break it
unless this protocol had been violated.

Yilmaz, who has not met with Ciller since the crisis of confidence
emerged on April 24, talked with Ciller over the phone last week and
told her that the ANAP parliamentary group would continue to cast its
votes as it wished during the votes on the parliamentary
investigations. As a result of the ongoing criticisms by Ciller to
discredit the government, Yilmaz demonstrated that he did not intend
to make sacrifices for the continuation of the government.

Yilmaz has very little time

Yilmaz has already agreed with close colleagues that the government
would not be able to perform effectively in the face of obstruction
from his coalition partner. He has been trying to break the impression
of a person who has quit the government without performing
effectively. As he brings the economic measures on to the agenda,
Yilmaz is thinking about the IMF delegation which will come to Turkey
on May 16 for a new standby agreement. He is trying to present the
package to public opinion 10 days prior to the bargain with the IMF
delegation, to show that the government is considering certain
measures. However the DYP is preparing to assess new opportunities to
prevent Yilmaz from making an accord with the IMF, and thus ruining
his chances of success. Most of the measures in Yilmaz's economic
package require amendments in legislation; however passage of these
laws seems impossible without the DYP's support. As a matter of fact,
Yilmaz's minority government, which has obtained a vote of confidence
with Democratic Left Party (DSP) backing, is far from convincing the
IMF delegation. Seeing this situation, the DYP is preparing to hinder
Yilmaz's measures.

Serious political accounts lie behind the continuation of the
partnership between the government partners. In the event this
government collapses, the Islamist RP will enter the government. This
requires both the DYP and ANAP to act cautiously despite all angers
and conflicts. Also, if the government falls, the issue of holding an
early election as proposed by DSP leader Bulent Ecevit will come on to
the agenda. Both the DYP and ANAP, the center-right parties, whose
vote potential is steadily dropping, oppose an early election.
Ciller's occasional proposal of an early election is taken as a
completely false scent.

If the government remains in power intact, it will be content with
very limited projects. After Turkey experiences the holiday atmosphere
of the summer months, political cards will be redistributed in autumn.
If the DYP rank and file reelect Ciller as party leader during the
July 21 grand convention, they will try to block her trial at the
Constitutional Court.

If the DYP withdraws from the government, the opposition parties can
easily find the required amount of votes for acceptance of the reports
of the parliamentary commissions which are charged with investigating
the corruption allegations. However by maintaining the coalition
partnership, the DYP hopes that ANAP will back it at least in the May
9 vote. This suggests that the government will continue -- in form --
until fall.

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Bahadir Acuner

unread,
May 7, 1996, 3:00:00 AM5/7/96
to

TRKNWS-L (t...@aimnet.com) wrote:

: TURKISH PRESS REVIEW

: MONDAY MAY 6, 1996

: Summary of the political and economic news in the Turkish press
: this morning

: TURKISH SATELLITE LAUNCHING SOON

: The launching of TURK-SAT 3 is planned for June 20, said Minister
: for Transport and Communications Omer Barutcu over the weekend.

I think there has been a translation error or somekind of missprint in here
(by the papers I mean). The satellite to be launched is Turksat1C.
Turksat 1A blew up shortly after lift off, then that was replaced
by Turksat1B which is in service now.
The one due to be launched on June is Turksat 1C


Bahadir Acuner acun...@csugrad.cs.vt.edu
Virginia Tech bacu...@vt.edu
Blacksburg, VA http://csugrad.cs.vt.edu/~acunerbb/
U.S.A

: -----------------------------------------------------------------------

TRKNWS-L

unread,
May 7, 1996, 3:00:00 AM5/7/96
to

TURKISH PRESS REVIEW
TUESDAY MAY 7, 1996

Summary of the political and economic news in the Turkish press
this morning


TURKEY EAGER TO HELP RECONSTRUCTION OF TAJIKISTAN

Turkey signalled yesterday its eagerness to help contribute to
the reconstruction of Tajikistan. "We consider this visit to be a
good opportunity for assessing the prospects of the
reconstruction of Tajikistan" President Suleyman Demirel said as
he welcomed his Tajik counterpart Imamali Rahmanov. "Turkey
firmly supports the efforts of Tajikistan to restore peace and
stability in its country" Demirel said. "Turkey is ready to
extend any kind of help to its Tajik brethren to carry out the
reforms they desire". During the visit of Rahmanov, Turkey and
Tajikistan signed nine different accords ranging from land
transport to the prevention of double taxation. A joint
communique made by the two presidents said that Turkey supported
UN-sponsored talks among the conflicting groups in Tajikistan and
hoped that a national consensus would be reached to solve the
country's political and economic problems. The communique also
confirmed that "major areas of cooperation" existed between the
two countries and that cooperation was further enhanced by the
efforts of the Tajik Embassy in Ankara and the Turkish
International Cooperation Agency's office in Dushanbe. Demirel
said: "In addition to bilateral relations, Turkey is developing
multi-lateral relations with Tajikistan within the framework of
the Economic Cooperation Organization (ECO)".

The agreements signed included a legal cooperation accord, a
tourism agreement, a land transport agreement, an education
accord, a consular accord, a health cooperation accord, an
agreement for prevention of double taxation and an agreement for
the encouragement and protection of investments. Demirel visited
Dushanbe last year in a trip designed to assure the Tajiks that
Ankara was not neglecting its ties with this country in favour of
Turkish-Speaking Republics in Central Asia.

Meanwhile, it was decided that the mausoleum of Enver Pasha, who
was the last Chief of General Staff during the Ottoman Empire and
died in Dushanbe, would be brought to Turkey. Noting that Tajik
President Rahmanov approved this, Demirel stated that the
mausoleum would be brought to Turkey on August 4, when Enver
Pasha was martyred on August 4, 1922. Enver Pasha fought against
the Red Army unions with the Turkmens. /Milliyet-Cumhuriyet/

DEMIREL OFF TO UZBEKISTAN

President Suleyman Demirel is to leave for a three day trip to
Uzbekistan tomorrow. Foreign Ministry Spokesman Omer Akbel said
at his weekly press conference that Demirel would be accompanied
by State Minister Ayvaz Gokdemir, Culture Minister Agah Oktay
Guner and Environment Minister Mustafa Tasar on the trip,
arranged upon the invitation of Uzbek President Islam Kerimov. He
also said that a joint communique would be issued and agreements
to prevent double taxation and for cooperation on environmental
issues would be signed during the visit. Demirel will also give a
speech to the Uzbekistan Parliament. Demirel will also visit the
Ali Sir Nevai Monument and Semerkant during the trip. The
communique will express Turkey's support for Uzbekistan's
independence and territorial integrity. After completing his
visit to Uzbekistan, Demirel will go to Meshed, Iran and
Turkmenistan between May 12-15 to attend the opening of a railway
connection and a summit of the Economic Cooperation Organization
(ECO). /Cumhuriyet/

PM YILMAZ SAYS GOVERNMENT WILL GO ON

Prime Minister Mesut Yilmaz said yesterday that he saw no reason
why the present coalition government, between his Motherland
Party (ANAP) and Tansu Ciller's True Path Party (DYP), should end
before its time. Yilmaz, who was addressing a key press
conference on his government's economic and political plans,
pointed out that the Turkish economy today did not require an
austerity package to be put into force but did need structural
reforms. He said that realizing these reforms would be his
government's mission. He said the government, during its first
fifty days, not only worked on the current year's budget, but
also on structural reforms. Also promising more devolution in
terms of powers vested in central authorities in Turkey, Yilmaz
went on to say that they intended to convert the Turkish economy
from a rent-based economy to a production-based one. Yilmaz also
touched on foreign policy issues during his press conference and
repeated his previous strong warning to Syria about the country's
support for the Kurdistan Workers' Party (PKK) which aims to
disrupt Turkey's territorial integrity, economic development and
democratic standards. Yilmaz also warned Iran and Iraq. Yilmaz
said: "Iran's state model is its own choice. I want to say that
we have nothing to fault regarding this issue to date. We want
the same respect from Iran. Secularism, which is the most
important principle of Ataturk's heritage, is the basic pillar of
the Turkish state to be protected forever". Yilmaz also indicated
regarding the Iraqi issue that all necessary measures had been
taken to prevent activities against Turkey's territorial
integrity because of the authority vacuum in northern Iraq.

Yilmaz said the government in its first 50 days had managed to
increase confidence in local and foreign financial markets. He
said that the Treasury has succeeded in increasing (domestic)
debt maturity, reducing interest rates and keeping the demand for
government bonds strong. "On the external side, we have raised
$1.2 billions worth of loans with convenient maturity and low
interest rates. In addition to that we have raised another good
$1.150 billions worth of project financing". He described the
days ahead as "days of (economic) restructuring", where the
government will wholly withdraw from every activity the private
sector is able to involve itself in. Yilmaz noted that increases
in productivity would be essential. The prime minister also
explained a package of new tax arrangements.
/Cumhuriyet-Hurriyet/

TURKEY WANTS FULL WEU MEMBERSHIP

Ankara is pressing hard for full membership in the Western
European Union (WEU). Turkey will be represented at the spring
sessions of the WEU in Birmingham, England, by Defence Minister
Oltan Sungurlu and Foreign Minister Emre Gonensay, who said
yesterday that "we will begin initiatives for full membership."

Ankara is concerned that so far Turkey has not been seen as a
full member country and wants to remedy the situation as soon as
possible, especially in view of Turkey's role in Bosnia and in
NATO. Turkey nevertheless does have some full member advantages
coming from its WEU ties-particularly in the area of information
exchange. /Cumhuriyet/

MEETING BETWEEN KOC AND CHIRAC

Leading Turkish businessman Rahmi Koc and French President
Jacques Chirac have met together for talks on world trade and
economic development.

Rahmi Koc is the current chairman of the International Chambers
of Commerce (ICC), and in this capacity reviewed the world
situation with Chirac in relation to freedom of trade and
commercial growth. /Hurriyet/

MIXED SIGNALS FROM GREECE

Greek Prime Minister Kostas Simitis has sent out some mixed
signals when it comes to Greek views of ties with Turkey. In an
interview with the French Le Monde newspaper, Simitis says that
both talks with Turkey and the Greek veto against Turkey will
continue.

Prime Minister Simitis also spoke out against the so-called
"Turkish threat" against Greece, saying that Greece would not
tolerate this. Nevertheless, Simitis also spoke about
developments that could lead to a "general" improvement in
relations and even open the way to a solution of the Cyprus
issue. /Hurriyet-Milliyet/

TURKISH EXPORT DIRECTORY ON DISK

The Export Development Centre (IGEME) together with the Foreign
Trade Undersecretariat has prepared a CD-ROM disk covering all
aspects of the Turkish export sector for 1996.

In this improved service, the first of its kind, the export
sector is dealt with in its entirety-from free trade zones to
tourism. From the first production of one thousand disks, 600
will be sent to trade ministries in 105 countries. /Milliyet/

BALKAN MILITARY MEDICAL CONGRESS BEGINS

The first Balkan Military Medical Congress, with delegations from
Turkey, Bulgaria, Greece and Romania taking part, is being held
between 6 and 8 May at the Military Museum and Culture Hall in
Harbiye in Istanbul. A spokesman from the Office of the Chief of
Staff stated that the congress was being held under a military
medical education union agreement which was signed in 1995 in
Bucharest by the four member countries. Military officials added
that the aim of the congress is to create an environment of
cooperation in the field of medicine, to share information and
experience and to strengthen ties of friendship between the
participating countries.

Chief of the Turkish General Staff, Gen.Ismail Hakki Karadayi, is
hosting the congress in the name of Turkey. A total of 568
doctors, of which 216 are foreigners, are participating in the
congress, during which a total of 256 scientific papers are being
read and two major panel discussions are being held. Deputy Chief
of the General Staff, Gen.Cevik Bir, said in his opening address
that this congress was significant it allowing the sharing of
medical information and for creating more cooperation between the
member countries. He added that the congress would contribute to
the peaceful and friendly policies of these countries. /All
papers/


TURKISH DAILY NEWS / 7 May 1996

PM Yilmaz: 'Government will go on despite problems'

Addressing a key press conference the prime minister says Turkey does
not need an economic austerity package but structural reforms

Turkish Daily News

ANKARA- Prime Minister Mesut Yilmaz said on Monday that he saw no
reason why the present coalition government, between his Motherland
Party (ANAP) and Tansu Ciller's True Path Party (DYP), should be
spoiled before its time, despite "difficulties between the partners
from time to time." Yilmaz, who was addressing a key press conference
on his government's economic and political plans, said that he would
cast his vote "in line with Tansu Ciller's desire" on Thursday when
the TOFAS motion is voted in Parliament.

The motion concerns irregularities into the privatization of state
shares in the auto maker TOFAS during the premiership of Tansu Ciller.


Ciller has said she will vote for a parliamentary inquiry into the
allegations, even though DYP deputies have said they will vote against
one.

Pointing out that the Turkish economy today did not require an
austerity package to be put into force but structural reforms, Yilmaz
said that realizing these reforms would be his government's mission.

Also promising more devolution in terms of powers vested in central
authorities in Turkey, Yilmaz went on to say that they intended to
convert the Turkish economy from a rent-based economy to a
production-based one.

Cautioning that Turkey was due to face an energy shortage by fall,
Yilmaz said "a mobilizing period has begun in terms of energy." He
also promised to raise the duration of minimum education in Turkey to
eight years.

Yilmaz also touched on foreign policy issues during his press
conference and repeated his previous strong warning to Syria about the
country's support for the Kurdistan Workers' Party (PKK).

Above-party government in the making

Turkey's notorious power circles who helped the formation of the
coalition are concerned ANAP and DYP losing while Welfare gaining
ground

These circles feel coalition is useless, should be replaced; object to
early elections

By Hayri Birler

Turkish Daily News

ANKARA- Turkey's ruling circles who promoted the foundation of the
minority coalition government between the Motherland Party (ANAP) and
the True Path Party (DYP) are unhappy with the current dismal
performance of the government and are envisaging a new Cabinet which
is similar to the above-party, non-partisan government formula which
was used after the March 12, 1971 military coup by memorandum.

These circles have already contacted deputies close to their mission
within ANAP and the DYP and conveyed their future political plans.
They have said no one should insist on the continuation of the current
minority coalition.

These circles have also analysed the political situation in the past
few months and have come to the conclusion that: "We believed
initially that the coalition government set up by the two center-right
parties would be able to take bold steps to ease the mounting problems
of the country, that it would be able to implement structural changes,
that it could restore peace and calm throughout the country and could
undertake the necessary decisions to end the problems in southeastern
Turkey.

However, the deep-rooted mistrust among the executives of the two
parties, the fact that they could not overcome the anger and enmity
they feel for each other, and the fact that the parliamentary groups
of the two parties cannot work in harmony have all contributed to the
failures of the coalition. Thus it has been unable to fulfill the
expectations of the public.

The public is now talking more about the failures of the coalition
than its success. Whereas this would mean the defeat of the
center-right in Turkey. This would create serious deficiencies for our
regime and our system." The power circles in Turkey feel while the
center-right is losing power, the radicals on the left and right wings
are gaining ground. They say: "the recent public opinion polls prove
our assessment.

The votes of the (pro-Islamic) Welfare Party (RP) and the center-left
Democratic Left Party (DSP) have increased compared to the votes they
won in the parliamentary election on Dec. 24, 1995. However, the DYP
and the ANAP, which are coalition partners, have failed to retain
their popularity and are actually losing votes.

The public is aware that the DSP and the RP are gaining ground. This
will become crystal clear during the election period and people will
believe the power race is between the DSP and the RP. We also have to
draw attention to the fact that those who previously voted for the DYP
and the ANAP will switch their votes to the RP rather than the DSP
because they traditionally feel antagonistic towards Ecevit and the
left. This may push RP gains to more than 10 percent.

It does not really matter how you mold the election system, the party
that is number one will claim the lion's share of the votes and the
increase in their number of seats in Parliament will surpass the
increase in the percentage of votes."

So these power circles who feel the RP may even be successful enough
to come to power on its own are deeply concerned and thus do not want
new elections in the near future. So these circles who prevented the
formation of a RP-ANAP coalition and who worked hard to forge the
ANAP-DYP coalition now say: "The continuation of the ANAP-DYP or
Motherpath coalition is only serving to further strengthen the
radicals outside the center-right and the center-left. So no one
should insist on the continuation of the government.

The government should remain in office as long as it can but no extra
effort should be made to allow it to survive. Once the government
collapses neither ANAP nor the DYP should form a coalition with the RP
because the RP is much better organized and much better disciplined
than the DYP and ANAP. It (the RP) will inevitably erode the power of
its coalition partner.

"If a new government is not formed in 45 days then, according to the
Constitution, the president can decide to hold new elections. So if
the president decides to hold new elections, according to law the
polls will have to be held 90 days after the decision is announced.
However this may mean the RP will have an advantage.

So the president should not announce early elections but should name a
prime minister from within Parliament who will be supported by the
other parties represented in the house. This prime minister should
draw his strength from all the parties and if necessary name ministers
from all the political groups.

Such a government should stay in power for at least two years..."
These circles say that, according to their evaluation, out of the 550
deputies in Parliament 376 have been newly elected and are concerned
that they may not be elected again in the event of early polls. So,
excluding the RP deputies, all the other deputies may vote for such a
government, they conclude.

FM Gonensay says new measures for the straits could be on the way

Foreign minister declares that these measures are aimed at the
prospect of Russia trying to ship Kazakh oil through the Bosphorus and
Dardanelles. He also complains of lack of coordination with Ministry
for Energy on subject of pipelines

Turkish Daily News

ANKARA- Foreign Minister Emre Gonensay said on Monday that Turkey is
preparing a host of measures against the possibility of Russia trying
to transport Kazakh oil through the Turkish Straits.

Gonensay, who was talking to reporters on the plane taking him to the
British city of Birmingham for a meeting of the Western European
Union, recalled that Russia and Kazakhstan had recently signed an
agreement for transporting Kazakh oil to the Russian Black Sea port of
Novorossiysk.

Under the deal sealed on April 27 in the Kazakh capital Almaty, the
Russian Transneft company will be the operator of an as-yet unbuilt
1,500-kilometer (940-mile) $2 billion Caspian pipeline, which will
link Kazakhstan's Tengiz oilfield to Russia's Black Sea port of
Novorossiysk.

That link will have a peak capacity of 62 million metric tons of crude
a year (1.24 million barrels per day).

Indicating that Turkey had undertaken a serious of diplomatic
initiatives in Moscow, Washington and the Kazakh capital of Almaty
with regard to this subject, Gonensay said these initiatives were
aimed at finding out where the oil goes from Novorossiysk.

Turkey introduced extra safety measures for the Bosphorus and the
Dardanelles in anticipation of attempts to ship billions of barrels of
Caspian oil through these straits.

Russia has argued that these regulations were a ploy by Turkey to
increase the prospect for an oil pipeline to carry Caspian oil by pipe
over Anatolia to the Mediterranean Sea.

Ankara, however, points to some recent major tanker accidents in or
around the Bosphorus and a stone's throw away from where hundreds of
thousands of people live.

Gonensay said that Turkey was also making enquiries with the relevant
Washington-based firms involved in Caspian oil as to their intentions
with regard to the transport of this oil.

"We in the meantime have also started work on the subject. If this oil
is to pass through the straits then there will be measures we will be
introducing within our own territorial waters," Gonensay said.

"If they intend to transport this oil through the straits then we will
put new measures into force before they realize this project to
prevent them from taking a wrong step," he added.

"No agreement is worth endangering the lives of 10 million people in
Istanbul," Gonensay said.

He went on to argue that it was not necessary that the Supsa route,
which runs over Georgia, be used for transporting Caspian oil over
Turkey to world markets.

Gonensay said that Russia had to also be included in projects aimed at
transporting oil by pipeline over Turkey.

He said that instead of spending time and money on a temporary
pipeline connecting Baku in Azerbaijan and Supsa in Georgia for
transporting the early oil, it would be more realistic to spend on a a
permanent pipeline between Baku and Ceyhan.

This appeared to be a change in Ankara's previous position of
supporting the transport of early Caspian oil belonging to Azerbaijan
through a pipeline connecting Baku and Supsa, on Georgia's Black Sea
coast.

The belief was that such a pipeline would enhance the prospects for an
eventual pipeline connecting Baku and Ceyhan on Turkey's Mediterranean
coast.

Turkey even offered to finance a pipeline between Baku and Supsa in
connection with this expectation, an offer that was cold-shouldered by
other members of the consortium set up for Azeri oil.

Complaining about a lack of coordination between various government
ministries on the subject of oil pipelines, Gonensay said his ministry
was not receiving any information on this subject from the Ministry
for Energy and Natural Resources.

"The subject of pipelines is a chess game that requires a tough
struggle. It is a matter of diplomacy. But they do not give us any
information about what is being done and they do not ask us for our
opinion," Gonensay said.

He said this matter should not be seen within the context of the
political rivalries that are emerging between the two coalitions
partners, his Motherland Party (ANAP) and the True Path Party (DYP)
which has the Ministry for Energy.

Gonensay said that the lack of dialogue between the two ministries was
simply the result of a lack of coordination.

French chain to launch Turkish DIY store

Turkish Daily News

ANKARA- The French do-it-yourself (DIY) chain Mr. Bricolage has signed
a deal with Turkish partners to launch its first DIY store in Turkey,
according to the business and finance magazine Ekonomist.

The firm, which runs more than 250 stores worldwide, has signed a deal
with industrial goods manufacturer Makina Takim Endustrisi and
business conglomerate Transturk Holding company.

The new venture aims to form a chain of DIY stores in Turkey, the
Turkish Republic of Northern Cyprus (TRNC) and in the Caucasus.

The first store will be opened in the Gunesli district in Istanbul. It
will be built on an area of 6,000 square meters.

Some 40,000 items will be on sale.

Mr. Bricolage and its Turkish partners are planning to open 21 stores
in Turkey and eight in the TRNC and the Caucasus in the next five
years.

There are four DIY brands currently operating in Turkey. They are AS
2000, Gotzen, Planet and Bauhaus.

Land is primary problem for retailers in Turkey

Turkish Daily News

ANKARA- Difficulties in access to convenient land is the principal
problem most retail chains face in Turkey, according to a leading
retail industry executive.

Tahsin Pamir, former chief executive of the German Metro chain, said
that land was a serious problem in Turkey, particularly in the
business capital, Istanbul.

"Dozens of real estate agents in Istanbul are currently seeking land
for retail investors," Pamir said in an interview with the business
and finance weekly Ekonomist.

He said (French supermarket chain) Carrefour should already have
opened its fifth store whereas it only has one in Istanbul.

"Similarly, Continent should have made progress in launching its
second store. The basic reason why those retailers are pressured to
operate with one store each is land," Pamir argued.

He said several foreign (retail) investors find the Turkish market
attractive but do not rush into investments here.

Pamir terminated his contract with Metro last summer. He recently
joined the business group Fiba Holding. He is currently in charge of
the group's hypermarket projects. Fiba is planning to launch a
hypermarket in Istanbul and then to form a chain in other Turkish
cities.

Turkey eager to help reconstruction of Tajikistan

Turkish Daily News

ANKARA- Turkey signalled Monday its eagerness to help contribute to
the reconstruction of Tajikistan, the most impoverished of the Central
Asian republics.

"We consider this visit to be a good opportunity for assessing the
prospects of the reconstruction of Tajikistan," President Suleyman
Demirel said as he welcomed his Tajik counterpart Imamali Rakhmanov.
"Turkey firmly supports the efforts of Tajikistan to restore peace and
stability in its country," Demirel said. "Turkey is ready to extend
any kind of help to its Tajik brethren to carry out the reforms they
desire." During the visit of Rakhmanov, Turkey and Tajikistan signed
nine different accords ranging from land transport to the prevention
of double taxation.

A joint communique made by the two presidents said that Turkey
supported the U.N.-sponsored talks among the conflicting groups in
Tajikistan and hoped that a national consensus would be reached to
solve the country's political and economic problems.

The communique also confirmed that "major areas of cooperation"
existed between the two countries and the cooperation was further
enhanced by the efforts of the Tajik Embassy in Ankara and the Turkish
International Cooperation Agency's office in Dushanbe.

The agreements which were signed were a legal cooperation accord, a
tourism agreement, a land transport agreement, an education accord, a
consular accord, a health cooperation accord, an agreement for
prevention of double taxation and an agreement for encouragement and
protection of investment.

Demirel had visited Dushanbe last year in a trip designed to assure
the Tajiks that Ankara was not neglecting its ties with this country
in favor of its Turkic cousins in Central Asia.

The World Western Thracians unites at a platform

By M. Akif Beki

Turkish Daily News

ISTANBUL- The issue of Turks in the Greek province of Western Thrace
has received renewed attention with the forming of the World Western
Thracians' Platform, consisting of all the Turkic Western Thracian
organizations around the world. The forming of the Platform was an
outcome of the second International Western Thracian Turks Congress.

Lawyer Burhanettin smail, general secretary of the Western Thracian
Turks Solidarity Association which organized the two day international
congress, said that this decision of the congress will be a historical
turning point in the western Thrace problem.

The International Western Thracian Turks Congress, which was held over
the weekend, ended with the release of a declaration and reports of
study groups on Sunday. The congress aimed to put the problems of
Turkic people living in Western Thrace on the public agenda and to
discuss proposals for solving these problems together with all of the


Western Thracian Turkish organizations around the world.

Taner Mustafao lu, chairman of the Western Thracian Turks Solidarity
Association, who released the results of the study groups reports in a
press conference, said that forming the World Western Thracian Turks
Platform was decided upon to have greater impact on the international
community and increase awareness of the problems faced by Turks living
in Western Thrace and that the congresses will become more of a
regular event.

"We will organize this kind international congress periodically after
this," Mustafaoglu said.

The study groups which were formed to look at different issues such as
policy and human rights, education, economy and religion, presented
their reports, evaluating the present condition in the Western Thrace
and suggesting proposals for solving problems.

The Turkish state was called upon to play a greater role in the
Western Thrace issue by taking a more effective position and to force
the Greek State to realize its responsibilities according to
international agreements.

It was also decided upon to invite leading figures of the Western
Thrace Turkic minority to unite in a single political framework and so
better represent the community in the Greek political environment.

An important point of the reports was the recommendation that plans be
made for electing Turkic representatives to the Greek parliament in
the next general elections and working in cooperation with other
minorities if thought advisable.

Burhanettin smail, general secretary of the Western Thrace Turks
Solidarity Association, evaluating the results of the congress said
that the main aim of the congress was integrating the Western Thrace
Turks who had been spread over the world.

"No one should be afraid from us, because we have no claims on Greek
lands; this is not our demand, but to win our rights for living as
first class citizens in Greece, that is all." he stated clearly.

According to smail, the congress was very successful, so much so that
it was decided to organize the next one in an European country such as
Germany and that the Platform will try to organize a similar meeting
in Western Thrace if it's possible next year.

"We will form a congress secretariat for putting it into a regular
form and soon the international platform of Western Thracians will
form a European headquarters," he said.

The second International Western Thracian Turks' Congress opened at
the same time that Greek Prime Minister Costas Simitis was visiting

the Western Thrace area. According to Burhanettin Ismailoglu, this was
not a coincidence but planned by the Greek government as an action
against their congress.

"Simitis' planned visit was on the agenda but not so soon.

And they decided on the date of this visit to the Western Thrace
according to our congress date," Ismail claimed.

After this congress it's possible to say that the dominant words of
the two day congress were three of "peace", "rights" and "struggle".
The participants are consisted many leading figures of the Western
Thracian Turks, representatives of civilian organizations from several
countries and Turkish ministers, politicians, all expressed how much
they wanted peace and brotherhood between the two communities and what
must be the rules and conditions for peace.

"The Turkish government is most sincere and serious about solving the

Turk- Greek crisis as it has shown recently," stated Lutfullah
Kayalar, Turkish Minister of Finance and a member of the Motherland
Party (ANAP) in the coalition government.

An politician who addressed the seminar was Health Minister Yildirim
Aktuna from True Path Party (DYP)

"We never forget the principle of the great Ataturk in foreign affairs
-- peace at home, peace in the world. That is to say we have no claims
on Greek lands," he said.

Isik Ahmet, wife of the late Western Thracian Turkish leader Dr. Sadik
Ahmet, who lost his life in a traffic accident, made a speech
expressing her husband's struggle, saying that "This struggle will not
end".

But Ismail Rodoplu, former member of parliament and member of High
Minority Council, was not optimist as well as Isik Ahmet.

"It is possible to be friend with Israel but not with Greek" he
stated.

TRKNWS-L

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to

TURKISH PRESS REVIEW
WEDNESDAY MAY 8, 1996

Summary of the political and economic news in the Turkish press this morning

DEMIREL LEAVES FOR UZBEKISTAN

President Suleyman Demirel departed yesterday for a visit to Uzbekistan.
"There is a fertile atmosphere for the enhancement of relations between
Turkey and Uz bekistan. More than 60 accords have been signed in the past
to set up the judic ial framework" President Suleyman Demirel said before
he departed for Tashkent.
The president and his Uzbek counterpart Islam Kerimov plan to sign three
more accords, including one to prevent double taxation and another to
protect the en vironment. The third is a "lasting friendship and
cooperation accord". Demirel said that 180 Turkish companies, some of
which have entered into partnerships w ith Uzbek firms, were involved in
projects in Uzbekistan. "They are contributin g to the construction of
Uzbekistan" Demirel said, adding that the volume of tr ade between Turkey
and Uzbekistan had approached $200 million. "We are cooperat ing in a
number of areas raning from transport to agriculture" he said.

Demirel is being accompanied on this visit by State Minister Ayvaz
Gokdemir, Cu lture Minister Agah Oktay Guner and Environment Minister
Mustafa Tasar, as well as some university rectors and businessmen. Demirel
and his accompanying deleg ation were welcomed by Uzbek President Kerimov.
After initial talks, the two pr esidents came together at a banquet.
Demirel and Kerimov will head meetings bet ween the two delegations today.
/Sabah/

TURKISH MPs COME TOGETHER WITH EUROPEAN COUNTERPARTS

In a move toward the reactivation of the Turco-European Joint
Parliamentary Com mission (JPC), the co-chairmen of the two wings came
together in Brussels yeste rday. The JPC meetings were formally frozen a
year ago, after Turkey stripped s ix former deputies of the pro-Kurdish
Democracy Party (DEP) of their parliament ary immunity and charged them
with separatism. However, the JPC had not met for two years before the
freeze decision was taken. The JPC now meets with a diffe rent group of
deputies altogether, since both the Turkish and the European Parl iament
have held new elections.

The Turkish deputies are to meet with the chairmen of the political
parties and groups in the European Parliament. Their schedule includes a
meeting with Serge Abou, the EU Commission's director for east
Mediterranean policy. The meeting will end today, after determining the
agenda of the meeting with the full JPC which will take place in Turkey on
June 20. /All papers/

KALEMLI DEFENDS TURKEY ON HUMAN RIGHTS ISSUES

Turkish Parliament Speaker Mustafa Kalemli received yesterday a delegation
of t he Turco-American Associations Assembly, and during their meeting
complained ab out the West's "double standards". "Western countries have
been misinformed on the subject of human rights violations in Turkey"
Kalemli said. "It is not righ t for them to try to judge Turkey on the
basis of lies or incorrect reports. Hu man rights violations take place in
the US and Germany too". Committee members from certain countries were
coming to Turkey to investigate human rights violat ions with the air of
judges or prosecutors, he said, stressing that they receiv ed all kinds of
assistance from the Turkish authorities despite that. /All pape rs/

SOUTH KOREAN PM TO VISIT TURKEY

Prime Minister of South Korea, Lee Soo-Sung, is to visit Turkey on May 9.
Soo-S ung will also visit Poland, Hungary and Romania between May 9-22.
Soo-Sung will make negotiations on regional and international issues and
on improving mutual relations. Soo-Sung will be the first South Korean
prime minister who visited these countries. /All papers/

YILMAZ INVITES FOREIGN TEXTILE FIRMS TO INVEST IN TURKEY

Prime Minister Mesut Yilmaz invited foreign textile firms to invest in the
Turk ish textile and clothing sector in his opening speech of the 12th
World Apparel Convention, saying that they should take advantage of the
fact that "Turkey ha s become a country of know-how transfer". Yilmaz
pointed out that Turkey was am ong the very few self-sufficient countries
in textile raw materials, saying tha t behind the success of the Turkish
clothing industry lies the large quantity o f high quality cotton
production.

Yilmaz outlined recent changes in Turkey's economic direction, pointing
out tha t the new orientation of the Turkish economy to globalization
leading to an ope n economy, shifting to an export orientation. One
positive result of this shift , according to Yilmaz, was the fact that the
Turkish economy continued growing during the world economy's recent bout
with stagnation and recession. Turkey's leading exports are textile and
clothing products, Yilmaz noted, and stated tha t Turkey ranks the second
in the European textile trade and fifth among textile -exporting countries
of the world.

Yilmaz emphasized the importance of international cooperation in the
textile in dustry, and marked the holding of the International Apparel
Foundation's conven tion in Turkey as an important step towards developing
the Turkish textile sect or's international connections. Yilmaz reminded
the foreign participants that 7 0 % of the foreign investment in the
Central Asian republics was realized by Tu rkish firms, and invited the
foreign textile industrialists to invest in machin ery production in
Turkey rather than trying to supply machinery for the Turkish textile
industry. /Cumhuriyet/

US SUPPORTS TURKEY

US State Department Spokesman Nicholas Burns has reiterated that the US
support s Turkey's claims regarding the countries, especially Syria, which
support the PKK terrorist organization. Burns said: "Syria ought to cease
and desist from s upport for the PKK". Meanwhile, it is reported that the
US Administration got v ery angry as Syrian head of State Hafiz Esad
described the PKK and Hezbollah as national opposition activities at his
meeting with US Secretary of State in Da mascus. /Sabah/

TURKEY INTEGRATING FAST WITH THE GLOBAL ECONOMY

The World Bank said in a report that Turkey has integrated with the global
econ omy "rapidly". In a report released on the global economy and
developing countr ies, the bank said that the impacts of reforms in Turkey
would be more percepti ble in the future. The report defined the
integration of the global economy as the concentration and widening of the
commercial and financial relations. It al so said that firms in developing
countries were facing tougher competition as t ime goes on. The Czech
Republic, Hungary and Poland were also listed among the countries
"rapidly" integrating into the global economy. /Sabah/

TURKISH FREE ZONES TRADING UP 48 %

The trading volume at free zones has increased by 48 % to exceed $1
billion in the first four months of this year. According to information
from the Foreign T rade Undersecretariat, in the eight free zones the
trading volume soared by 48% to reach $1.064 billion in the January-April
period of 1996 compared to the s ame period last year. In the first four
months of the year, the trading volume increased by 39 % in the Mersin
region, 266 % in Trabzon, 51 % in the Aegean fr ee zone. It stood at 8 %
in Istanbul-Ataturk Airport. The trading volumes at th e newly-opened
Erzurum-Eastern Anatolia and Mardin free zones came to $713.9 mi llion and
$468.5 million in the same period. /All papers/

THINGS LOOKING BETTER WITH ATHENS

Both Ankara and Athens are working to give more momentum to improving
relations between the two capitals. In moves to develop relations between
Greece and Tur key, both governments are making increased efforts in
certain areas to lay a fo undation for a new period of understanding.

Described as a "honeymoon" period, this new effort to improve relations by
both sides includes tourism, art and cultural agreements that are already
yielding beneficial results. The press, theatre groups and tour operators
are all showin g new efforts to disperse the gloom of the past few months
of diplomatic disput e involving the Kardak islets and other issues.

Reports from Greece say that Greek Prime Minister Kostas Simitis is
already pre paring to make new investment in Thrace where the Turkish
muslim minority is ce ntred. There are even reports that a lifting of the
Greek veto against Turkey i s on the horizon following initiatives by
Foreign Minister Emre Gonensay. /All papers/

NEW FRENCH CREDIT DEAL

It has been announced that Turkey has fixed a new credit deal with France
for 3 00 million francs for four privatization projects and other
developments. The c redit has come from the French Treasury and the French
Insurance Board (COFACE)

TURKISH DAILY NEWS / 8 May 1996

Motherpath is considered 'finished'

Plans afoot to trap rival parties' leaders

By Kemal Balci

TDN Parliament Bureau

ANKARA- The two-month-old Motherpath coalition seems to be in a
process of dissolution. At the head offices of the three leading
parties, leaders are busy working on ways of tripping one another up.
Convinced that the coalition cannot last any longer, each is making
plans for the post-Motherpath era. It is not only the coalition
partners that are trying to undermine each other's leaders, Welfare
Party (RP) staffers are also pondering how to get in on the act.

This will obviously be a lengthy war of attrition. Among the three
leaders, True Path Party (DYP) Chairwomen Tansu Ciller seems to be in
the most dire straights. Ciller has seen that she can only fight a
"limited, low-intensity war" against Prime Minister Mesut Yilmaz. She
now finds herself in a troubling position.

DYP tactics

There is no way Ciller could retaliate by accusing Yilmaz of
irregularities and tabling similar motions against him. This is
because Yilmaz heads the coalition government of which the DYP is a
partner. The DYP cannot take that path because if the Parliament voted
in favor of such a motion it would inevitably mean the entire collapse
of the coalition government. DYP officials are taking care not to be
seen as the side which ends the coalition.

DYP sources indicate that party staff assessed the situation at a
series of meetings chaired by Ciller in the course of the past week.
The idea that prevailed at these meetings was that the DYP should not
withdraw from the government but that it should do everything to make
Mesut Yilmaz suffer. Ciller has reportedly given her staff three
instructions regarding the tactics to be employed:

- DYP officials will respond promptly to Prime Minister Yilmaz's every
comment or move.

- To undermine the chances for ANAP-RP dialogue, the DYP circles will
try to drive a wedge between them. For that purpose DYP deputies will
table a motion against RP leader Necmettin Erbakan, in an effort to
have Erbakan's personal assets investigated, and try to ensure that
ANAP deputies vote in favor of that motion.

- Yilmaz will be prevented from making any move on any issue. The aim
is to make Yilmaz look like a "prime minister who has failed." Bills
brought to Parliament will be obstructed at the committee stage.
Yilmaz will not be able to get any laws passed before the end of the
year. This will wear out his nerves and encourage him to withdraw from
the government.

Ciller is reportedly adamant to force Yilmaz to take the final step
because she wants to elaborate on the "Mesut always runs away," theme,
which she has harped on frequently in the past. She wants to portray
Yilmaz as a person who flees in the face of difficulty. To sum up, the
DYP tactics will be aimed at forcing Yilmaz to end the present
coalition and at intimidating Erbakan with motions of inquiry against
him.

ANAP's reasoning

Meanwhile, ANAP tactics are aimed at having the "Motherpath coalition"
lead to a "Motherpath Party," that is, an ANAP-DYP merger. To do this
they want to first get rid of Ciller, then lure to ANAP the
"leaderless" DYP deputies. ANAP officials assume that the DYP would
not be able to withstand for long the accusations of irregularities
allegedly committed during Tansu Ciller's prime ministry. They believe
that Ciller won't be reelected under such circumstances at the DYP
Congress, scheduled to take place on July 21.

They reason that even if they could not prevent Ciller's reelection
they could still prevent Ciller from taking over the prime ministry at
the end of the current year. According to the Constitution, if Ciller
is tried at the High Court on corruption charges, she would be barred
from becoming prime minister at the end of the year, as the coalition
protocol states. If DYP officials saw that Ciller would not be able to
take over the prime ministry at the end of the year, they might be
inclined to not risk destroying the party and decide "not to carry her
along anymore."

ANAP officials are not only trying to draw this "fine line,"
separating the DYP from Tansu Ciller, but they are also trying to keep
the road clear for an RP-ANAP coalition so that they could promptly
form a government the moment the country is faced with a "government
vacuum." Recalling that the initial ANAP attempt to form a government
with the RP had drawn strong adverse reactions, they said that any new
attempt will be different because this time an ANAP-RP coalition will
be a necessity.

RP position

RP officials, meanwhile, believe that they can divide the DYP by
wearing out Ciller with the parliamentary inquiries they have moved.
According to leading RP figures, Ciller would not be able to remain
leader if a minimum of 30 DYP deputies deserted her party. The
officials assume that the RP would be able to form a coalition much
more easily with a Ciller-less DYP. At the same time, they are trying
to expand their room for maneuver by keeping ANAP under pressure as
well. Their contention is that if Ciller is "ousted" as the DYP
leader, ANAP would no longer be able to maintain its unity by rallying
around Mesut Yilmaz. An RP source said, "ANAP is simmering. The Tansu
Ciller problem serves to keep the problems inside the party hidden
away from the eyes of the public. The moment the Tansu Ciller problem
is solved, ANAP will be faced with great turmoil." The three parties'
plans to "trap" the leaders of the rival parties are expected to bear
fruit by the end of summer at the latest.

While hope fades on government, no immediate end is apparent

Survival: Despite the fact that the ANAP-DYP coalition is fighting for
its life a number of factors will ensure that it survives in the short
term

By Ayla Ganioglu

Turkish Daily News

ANKARA- The vote in Parliament two weeks ago to initiate an inquiry
into True Path Party (DYP) leader and former Prime Minister Tansu
Ciller concerning corruption allegations also started the countdown
for the two-month old coalition. As it was, the minority government
coalition between the DYP and the Motherland Party (ANAP) had been
formed only with the indirect support of Bulent Ecevit's Democratic
Left Party (DSP).

The DSP, by abstaining during the vote of confidence in Parliament,
had ensured that the ANAP-DYP coalition was endorsed by the necessary
number of deputies. But what appears now to have sealed the fate of
the coalition is the Welfare Party, which is still preserving its hope
of coming to power and which effectively tightened the noose around
the ANAP-DYP coalition's neck with its motions for inquiries into
Ciller.

Since then the government can be said to be fighting for its life. DYP
ministers have now fully raised the flag of rebellion against ANAP
leader and Prime Minister Mesut Yilmaz. So much so that the prime
minister can only get his words across to ministers from his own
party. DYP ministers are refusing to attend meetings on the economy
even though Yilmaz calls them to these meetings. The same ministers
boycott meetings of the Cabinet.

Industry Minister Yalim Erez, who is known as Ciller's right hand, is
every day coming out with statements attacking Yilmaz that are more
characteristic of an opposition leader than a cabinet minister. All of
these factors are being taken as signs that the five-year plan
announced in the coalition protocol with such great fanfare is now
almost defunct.

Under this plan Yilmaz was to transfer the premiership to Ciller for
two years at the end of this year. There were even rosy dreams of one
of the two leaders becoming president and the other the leader of the
center-right as a result of this "rotating Premiership" model. But no
one is thinking of these any more. Now the question in everyone's mind
is who will be the first to pull the trigger and officially put an end
to this minority coalition government.

Another question is what the timing selected for the end of the
government partnership will be. In the meantime the passing of the
motion in Parliament for an inquiry into alleged links between former
Prime Minister Ciller and contract irregularities at state-run
electricity company TEDAS appears to have started the countdown to the
end of the DYP leader's political life as well. Some political circles
see the whole TEDAS affair as the start of the process aimed at
ridding politics of Tansu Ciller.

This feeling is particularly prevalent given that even if she comes
out of the TEDAS inquiry unharmed there are other inquiry motions
waiting for her. The most notable of these, the file involving alleged
irregularities in the privatization of state shares in carmaker TOFAS,
will be put to the vote on Thursday. This motion, also submitted by
the RP, is expected to be accepted by an even greater margin of votes
than the TEDAS motion, with many ANAP deputies expected to vote for an
inquiry. Following this motion is one in the pipeline concerning the
manner in which the Ciller family accumulated the assets that it
possesses today; this will also be submitted by the RP.

Ciller, who in the past has managed to free herself without bruises
from such motions, will probably find it difficult to do so this time.
Political analysts estimate that the prospect of Ciller becoming prime
minister at the end of the year is more or less a dream at this stage.
Perfectly aware of all this, Ciller now appears to be after securing
satisfaction by making her party's coalition partner pay dearly for
its support for these motions. DYP deputies have thus started a war of
attrition against Yilmaz which is expected to intensify after
Thursday's TOFAS vote.

Despite all this, the struggle between the coalition partners is not
expected to finish off the government right away, simply because
neither party at this stage wants to appear the one to have ended the
coalition partnership. This in turn means that the government will
continue in the short term, especially because both Yilmaz and Ciller
are planning to escape this whole crisis with the minimum harm to
themselves. Both leaders will also be involved in a race for their
party's leadership this month. The DYP is expected to hold its big
congress in the first half of July.

DYP sources say that for Ciller to enter this congress as prime
minister will give her an advantage. Ciller's withdrawal from the
government before the congress, on the other hand, is expected to give
her rivals within the DYP an advantage. The ANAP congress is expected
to be held in August unless a decision is taken to hold it earlier.
Yilmaz too, if he can go to this congress as prime minister, will not
have much problem being reelected as party leader. Some political
analysts feel that it is overoptimistic to expect the ANAP-DYP
coalition to survive until July or August and claim that ties will be
severed between the parties before then.

Others, however, are aware that a factor tying the hands of the two
parties is the fact that the only alternatives to their government are
a government with the RP at the helm, or early elections, a prospect
that neither are prepared to digest. Yet another scenario being
brought to the fore by some analysts has the DYP being split, or
Ciller being "deposed" from the leadership, and the center-right
uniting under the leadership of Mesut Yilmaz.

But this scenario also has Yilmaz being deposed later and the
center-right uniting under another leader.

Sungurlu: Turkey's role is crucial to European security

Greek defense minister Arsenis rates Turkey's prospects for WEU
membership as "zero"

By Orya Sultan Halisdemir

Turkish Daily News

BIRMINGHAM- Turkish Defense Minister Oltan Sungurlu said Tuesday that
Turkey has a crucial role to play in Europe's security as it is a very
important member of the NATO alliance. Speaking at a briefing for
Turkish journalists at the Western European Union (WEU) council
meeting held in this Midlands city, Sungurlu stated that it was
necessary for Turkey to become a full member of the WEU. "Europe's
security cannot be achieved without having Turkey as a full member of
the WEU," he said. Sungurlu also said the future of the WEU should be
clarified before Turkey's full membership. "We do not know what the
Intergovernmental Conference will decide regarding the future of the
WEU," he pointed out.

The defense minister added that the member states were in favor of
cooperation between NATO and the WEU. When asked, Sungurlu said Turkey
had once again voiced its reservations about the proposed full
membership of Malta and Cyprus in the WEU. Meanwhile Greek Defense
Minister Gerassimos Arsenis said in Birmingham that there was no
possibility that Turkey would become a full member of the WEU. In a
statement to the BBC's Greek service Arsenis said he rated the chances
of such membership for Turkey as "zero" because WEU membership was
restricted to membership in the European Union.

"We do not have to put up any fight in this respect. The case is a
lost one for Turkey" Arsenis maintained.

Ambassador Unan blasts allegations of Turkish finger in Chechen war

Ambassador Bilgin Unan says these allegations are part of a 'dirty
game' which in some cases 'exceeds the limits of imagination'

Turkish Daily News

ANKARA- Turkey's ambassador to Moscow, Bilgin Unan, has characterized
certain reports in the Russian press concerning alleged involvement by
Ankara in the Chechen crisis as "part of a dirty game."

Unan said, contrary to what was being alleged, that Turkey attaches
great importance to the stability of Russia. Speaking to "Red Star,"
the publication of the Russian Ministry of Defence, Unan said the good
ties between Ankara and Moscow today rested in this stability being
preserved. Unan, whose remarks were carried by the Anatolian news
agency on Tuesday, indicated that both Turkey and Russia were
countries which faced major problems. But he said Turkey was well
aware of the big potential that Russia carried as a successful country
and added this was the reason why Ankara "believed in Russia's role in
the world."

Indicating that Turkey and Russia were also going through a "historic
phase" in their ties, Unan pointed to the five high level visits that
have taken place between the two countries in the past month alone. He
also highlighted the "rich relationship" between the two countries in
terms of trade and tourism contacts. Touching on the crisis in
Chechnya, Unan also underlined that Turkey respected Russia's
territorial integrity and that it was also respectful of the principle
on noninterference in the domestic affairs of other countries.

Referring to articles in the Russian press on Turkey's alleged role in
the Chechen crisis, Unan said these were part of a "dirty game" and
that some of the reports "exceeded the limits of imagination." He drew
attention in this context to a recent report alleging that fighter
jets taking off from Turkey had bombed civilian targets in Chechnya.

Unan also said that the cooperation between the intelligence units of
both countries would become effective in the not so distant future.

US endorses Turkish views on Europe and Syria/PKK

'It would be hard to overstate the importance of Turkey as a US ally,'
official tells Congress State Department spokesman is 'not aware' of
plans to include Turkey in regional strategic cooperation scheme

Turkish Daily News

WASHINGTON- The U.S. State Department has endorsed the views of two
top Turkish officials regarding Turkish-European and Turkish-Syrian
relations. And Undersecretary of State Lynn Davis has told a
congressional committee: "It would be hard to overstate the importance
of Turkey as a U.S. ally."

Asked at the department's daily press briefing Monday about Prime
Minister Mesut Yilmaz's call that morning for Syria to cease its
support of the Kurdistan Workers' Party (PKK), spokesman Nicholas
Burns reiterated U.S. support of "Turkey's wish that countries beyond
Turkey give up their support of the PKK, specifically Syria.

Therefore what Prime Minister Yilmaz said this morning makes sense to
us ... as part of our own policy." Said Burns flatly: "Syria ought to
cease and desist from support for the PKK." Burns also was asked about
Foreign Minister Emre Gonensay's statement that Turkey should become a
full member of the Western European Union. "We have supported almost
across the board Turkey's wish ... to become more closely linked to
European institutions," the spokesman replied, citing the EU customs
union as an example. However, he had nothing specific to offer on
Turkey's possible membership of the Western European Union.

Another Turkey-related question at the press briefing involved the
possibility of including Turkey in a regional strategic cooperation
agreement built around the U.S.-Israel relationship. The question
arose in the context of the planned meeting Wednesday between
Secretary of State Warren Christopher and Israeli Foreign Minister
Ehud Barak..

While Burns acknowledged recent efforts "to strengthen the U.S.-Israel
relationship ... on a bilateral basis," he said he was "not aware of
any efforts to create a multilateral effort ... That would include
Turkey or anyone else." However, he expressed confidence that "we'll
talk about those issues with Foreign Minister Barak and many others,
as well."

Testifying last week in support of the Clinton administration's
foreign aid request for next fiscal year, Davis noted that "America's
vital security and economic interests are inextricably tied to Europe
.. The potentially volatile situation in Europe's southeastern corner
requires particular care.

"The U.S. is committed to advancing the negotiating process on Cyprus,
reducing and ultimately eliminating tensions between Turkey and
Greece, and strengthening Turkey's place in the Western economic and
security system," Davis said before the House Appropriations
Subcommittee on Foreign Operations. "Failure here could unravel all
our other European security efforts. As a result, the United States
gives high priority not only to bilateral relations with these
countries, but also to promoting ties between this region and Western
Europe."

Regarding proposals for assistance to Greece and Turkey, Davis said
the United States plans "to continue our support for two key NATO
allies in recognition of their importance in maintaining stability in
a region that is critical to U.S. interests. Our FY (fiscal year) 1997
request of $32 million for the subsidy cost of a total of $297 million
in FMF (Foreign Military Financing) loans for Greece and Turkey will
supports sustainment of U.S.-origin equipment. "We are also requesting
$60 million in ESF (Economic Support Funds)," Davis stated, "to help
Turkey address long-term structural reforms necessary to sustain
growth, to ease the transition resulting from Turkish membership in
the EU customs union, and to help offset the economic costs associated
with enforcement of U.N. sanctions against Iraq." (Comparative figures
for FY 1976 are $33.5 million for ESF and $320 million for FMF.) In
justifying the aid to Turkey, Davis pointed to the difficulty of
overstating "the importance of Turkey as a U.S. ally.

It is at the crossroads of almost every issue of importance to the
United States on the Eurasian continent, including NATO, the Balkans,
Cyprus, Iraq sanctions, Russia's relations with the NIS (New
Independent States formed out of the former Soviet Union), Middle East
peace, narcotics trafficking, and transit routes for Central Asian oil
and gas." But Davis also noted that the Clinton administration
"continues to stress to Turkish officials the necessity of improving
its human rights record and strengthening its democracy. We are
working with our European Allies at every opportunity to urge Turkey
to continue the reforms it began last summer and fall." Continued
Davis: "Turkey's new Prime Minister, Mesut Yilmaz, has indicated
Turkey's willingness to:
1. engage in discussions to begin the process of a peaceful
settlement with Greece;
2. start working to solve the Kurdish situation by a peaceful, rather
than military, means; and
3. open a border gate with Armenia if Turkey sees clear signs of
progress toward a peace settlement between Armenia and Azerbaijan
in their five-year war over the Nagorno-Karabakh enclave. We are
pleased by the new government's commitment to resolving these
problems and we will work closely with them to implement these
policies, especially the new approach to the Southeast."

Ankara rules out any revision on Montreux accord

Gonensay's words that Turkey can take new measures for safety of
Straits signals an accelerated Turkish drive on same lines rather than
a 'new magic formula'

Turkish Daily News
ANKARA- Despite Foreign Minister Emre Gonensay's reference to new
measures to prevent oil tankers using the straits, Ankara still has no
intention of changing the Montreux Convention which governs the status
of the straits. Gonensay said on Monday, on his way to Birmingham for
a Western European Union (WEU) meeting, that the Foreign Ministry was
working on a set of measures against the possibility of increased
traffic of oil tankers through the Straits.

The foreign minister, who has been responsible for the Caspian oil
pipeline projects via Turkey since his time as prime ministerial
adviser, did not elaborate on the measures. Turkish diplomats, for
their part, confirmed that there were indeed efforts in the relevant
departments "to prevent the straits from becoming oil pipelines" -- a
sarcastic reference to the frequent oil leaks that further threaten
the already-polluted straits.

However, the same sources denied that the measures would be "any shock
package" and said they would definitely fall short of revising the
1936 Montreux Convention that gives Turkey the right to regulate the
traffic in the two straits -- Bosphorus and Dardanelles -- but gives
perfect freedom of transit in peace time.

A diplomat firmly denied that Turkey was even considering the revision
of the Montreux Convention. "This is not at all on the agenda of
Turkey," he said. Asked about the "possible measures," he said that
there would be "no magic formulas" but that Turkey would go on
expressing its "safety concerns" for Istanbul, Turkey's largest city
with a population of 12 million.According to diplomatic observers,
Gonensay's statement did not mean a new initiative but signalled an
accelerating Turkish drive to voice its environmental and safety
concerns to international organizations, governments and also to the
oil companies which are part of various consortia of Caspian oil.
Turkey has put its position bluntly before Chevron, which has
substantial shares in Kazakh oil. Gonensay's words were occasioned by
the recently signed Russo-Kazakh accord to transport Kazakh oil to
Novorossiysk, a Russian port in the Black Sea.

Turks fear that the accord, which would mean the building of a
pipeline from Kazakhstan's Tenghiz fields to Novorossiysk, will lead
to the transportation of Azeri oil through this route, rather than the
Turkish-supported and as yet unbuilt route via Georgia. The 1.24
million barrels per day question is where the oil would be taken from
there.

Turkey has already introduced new measures for "safety of passage" for
the two straits. The rules have also received a partial international
recognition by being approved by the International Maritime
Organization (IMO) despite Russian protests. Gonensay indicated that
there could be new measures, but it is difficult to predict how far
Turkey can go with the limits imposed by Montreux.

According to legal experts, Turkey cannot introduce limitations of
tonnage and quality of the cargo. Turkey has the right to "regulate
passage," but not the right to prevent certain merchant ships from
passing through the straits. Both the 1924 Lausanne Treaty and
Montreux give commercial concerns the right of free passage from the
straits during peacetime.

The right of fortification over the straits was given to Turkey with
Montreux. Pilotage and towage will be optional. But it can make use of
the "safety clause" in the convention which says Turkey has the right
to regulate the right of passage to ensure the steady and safe flow of
traffic through the straits.

Yilmaz invites foreign textile investment

Turkish Daily News

ISTANBUL- Prime Minister Mesut Yilmaz invited foreign textile firms to
invest in the Turkish textile and clothing sector in his opening
speech of the 12th World Apparel Convention, saying they should take
advantage of the fact that "Turkey has become a country of know-how
transfer". Yilmaz pointed out that Turkey is among the very few
self-sufficient countries in textile raw materials, saying behind the
success of the Turkish clothing industry lies the large quantity of
high quality cotton production.

The prime minister predicted that with the completion of the Southeast
Anatolia Project (GAP), the Harran plateau will turn into "a second
Cukurova", Turkey's major cotton producing area, and the textile
sector will flourish in the provincial centers of the southeast such
as Gaziantep and Diyarbakir. "We trust in our private sector's ability
to transform this immense capacity into industrial goods and exports"
Yilmaz told the gathering, emphasizing Turkey's ambition to expand its
share of the world textile markets.

Yilmaz outlined recent changes in Turkey's economic direction,
pointing out the new orientation of the Turkish economy to
globalization leading to an open economy, shifting to an export
orientation.One positive result of this shift, according to Yilmaz, is
the fact that the Turkish economy continued growing during the world
economy's recent bout with stagnation and recession.

Turkey's leading exports are textile and clothing products, Yilmaz
noted, and stated that Turkey ranks the second in the European textile
trade and fifth among textile- exporting countries of the world.

"All our expectations, however", Yilmaz continued, "are far from being
realized."He underlined the contrast between the 62 million strong
population of Turkey and her share of world trade, which is still
04.5%.Yilmaz compared this figures with those of the member countries
of NAFTA, EU and APEC, which contain the 44% of world population while
holding 85% of world trade. Yilmaz emphasized the importance of
international cooperation in the textile industry, and marked the
holding of the International Apparel Foundation's convention in Turkey
as an important step towards developing the Turkish textile sector's
international connections.

Yilmaz reminded the foreign participants that the 70% of the foreign
investment in the Central Asian republics are realized by Turkish
firms and invited the foreign textile industrialists to invest in
machinery production in Turkey rather than trying to supply machinery
for Turkish textile industry."Turkey has become a know- how
transferring country", he suggested, and continued that Turkey is
capable of bridging the western technology with the Asian potentials.

Reiterating the title of the convention, Yilmaz called Turkey the
center of the "winds of enterprise" with a textile sector working in
line with European standards. Yilmaz's brother Turgut Yilmaz attracted
large media attention but he repeatedly reminded the journalists that
he was there in capacity of representing the Textile Bank rather than
as the prime minister's brother.

TRKNWS-L

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May 9, 1996, 3:00:00 AM5/9/96
to

TURKISH PRESS REVIEW
THURSDAY MAY 9, 1996

Summary of the political and economic news in the Turkish press this morning

DEMIREL WARNS RUSSIA

Turkish President Suleyman Demirel said he hoped the agreement for
economic and cultural integration signed between Russia, Belarus,
Kyrgyzstan and Kazakhstan did not constitute a step toward reviving the
former Soviet Empire. President Demirel was addressing a joint press
conference with Uzbek President Islam Kerimov, in Tashkent, where he is on
an official visit. Demirel said it was not the official policy of Russia
to revive the Soviet Empire, but added that there were moves and
tendencies in Russia, particularly as the presidential elections in that
country approached, which sought the revival of the collapsed empire.
Terming the peaceful dissolution of the Soviet Union as "irreversible",
Demirel s aid, not just Turkey, but the whole international community
would be irritated at such an attempt of "reviving" this empire even if
some of its now independent former members expressed a desire to do so.
Uzbekistan is known to be a strong opponent of efforts to revive the
former Soviet Union in any shape or form.

Earlier, the two presidents signed three deals to strengthen economic
ties. The two signed documents to avoid double taxation, protect the
environment and for ge "eternal friendship and cooperation". Bilateral
trade rose by 75 % in 1995 t o $280 million and 200 Turkish-Uzbek joint
ventures have been set-up in Uzbekis tan, officials said.

Yesterday, Demirel also addressed the "Supreme Assembly" and visited the
mausoleum of Ali Sir Nevai, a 15th century Turkish poet. On this last day
in Uzbekistan, Demirel will travel today to Samarkand, the historical
capital of the Timur Empire. /Sabah-Cumhuriyet/

OPERATION IN N.IRAQ AGAINST PKK

Turkish troops have intensified their attacks on PKK terrorist
organization bases since Sunday, turning their mission into a cross-border
operation. Thirty-fi ve PKK militants were killed in operations two days
ago and yesterday while seven Turkish soldiers were injured. Turkish
troops started their operations follo wing a warning from intelligence
units which noted that a 100-member group from Iraq and a 50-member group
from Iran would try to penetrate Turkey.

Meanwhile, a statement from the Office of the Emergency Rule Region said
that eight PKK militants had been killed in the Hozat district of Tunceli
and one ter rorist killed in the Yayladere district of Bingol. Four
security officials also died in operations in Hozat. /Sabah/

WEU MINISTERS MEETING IN BIRMINGHAM

A final declaration issued at the Western European Union (WEU) meeting in
Birmingham said that the member states "welcomed" full participation of
the associate members -namely, Turkey, Iceland and Norway, without
offering any prospect of full membership. In a move to offer a word of
praise to the three countries -all NATO members but not members of the EU-
the final declaration outlined the importance of the contributions of
those three countries to efforts for security and stability in Europe. The
words of WEU Secretary-General Jose Cutillerio were hardly more
encouraging in terms of prospects of full membership. Pointing out that
Turkey already participated fully in WEU functions, Cutillerio said he was
aware of the Turkish desire for full membership. "All I can say at this
point is that this has to be negotiated among the member states"
Cutillerio said at a press conference after the WEU ministers meeting in
Birmingham. Foreign Minister Emre Gonensay said that Turkey would launch
initiatives vis-a-vis the full members. /All papers/

AIR TRANSPORT AGREEMENT WITH KAZAKHSTAN APPROVED

An Air Transport Agreement between Turkey and Kazakhstan has been approved
by the Council of Ministers and was published in the Official Gazette. The
agreement concerns air travel between the two countries who are parties to
the International Air Services Transit Agreement and the International
Civil Aviation Agreement. The agreement covers issues such as traffic
rights, exemption from customs duty, air safety and security. /All papers/

EDUCATION MINISTER PRAISES UNESCO

Education Minister Turhan Tayan said that the social, cultural, economic
and political changes, and the rapid progress of technology has given rise
to the need for all nations to work hand in hand for the attainment of a
more secure environment in the future. Tayan made his remarks at a meeting
of the Turkish national Commission of the United Nations Educational,
Scientific and Cultural organization (UNESCO) in Ankara. Tayan pointed out
the fact that it was Turkey's proposal to adopt 1995 as the "International
Year of Tolerance" and added: "It is an honour for Turkey that UNESCO has
agreed to celebrate 1996 and 1997 respectively as the 700th year of the
philosopher, Nasreddin Hodja's death and the 100th year since the birth of
educational writer and poet, Hasan Ali Yucel, both of whom are renowned
not only in Turkey but also in the far east and the Balkans, and that the
regeneration of the protection and restoration campaign of Istanbul and
Goreme where there are various historical works and sites which are on the
World Heritage List, has been included in the UNESCO 1996-97 Programme and
Budget". /Sabah/

ISRAELI PM PERES: "TURKEY IS MODEL OF MODERNISM"

Israeli Prime Minister Shimon Peres, during a live interview with CNN on
Tuesday, praised Turkey's role in the Middle East as a model of
"modernism, democracy and understanding". Peres made similar remarks last
week during a presentation at the Washington Institute for Near East
Policy. Peres also told CNN that the Cyprus issue can be solved. Talking
about "two trends" in the Middle East, Peres said Iran represented one
such trend in contrast to Turkey. Iran is ruled by ayatollahs "who permit
acts of terror" and who are trying to get the nuclear o ption" Peres said.
Reminding his viewers that fundamentalism "is not a country" but "a
movement that overflows sovereignties" the Israeli prime minister stated:
"Turkey is on the right side. It's not only Turkey, but everyone who
wantst o prevent terror, violence and aggression should really come
together". /All pa pers/

TURCO-GREEK COOPERATION IN TOURISM

Turkey and Greece have signed a protocol which foresees Turco-Greek
cooperation in tourism. Turkish Travel Agencies Union (TURSAB) Chairman
Talha Camas and Greek Travel Agencies Union (HATTA) Chairman Takis
Antoniou signed the 10-article protocol yesterday. The protocol envisages
the resolution of many issues such as lifting the Greek visa for Turks and
preventing pollution in the Mediterranean. /Milliyet/

NEW CURRENTS IN THE MIDDLE EAST

New developments between the US and Israel could mean that Turkey and
other leading regional countries like Egypt could be involved. As the US
and Israel move towards what is described as an "historic" defence
agreement, reports say that Washington will also want to speak with
Turkey, Egypt and some of the gulf countries.

The US it seems, wants to establish a defence chain throughout the Middle
east regions to block those countries known to support terrorism. By
setting up a "pact" with countries like Turkey, the US hopes to create a
real guarantee of stability to maintain security and peace in the region.
/All papers/

TURKEY-GREECE RELATIONS

Again the picture regarding relations between Greece and Turkey has taken
on a cloudy appearance. The bright sunshine of yesterday has given way to
more clouds as the Greek government sent out pessimistic messages about
pointless meetings with Turkey.

In talks with officials in the Clinton administration, both Greek
President Konstantin Stefanopoulos and Foreign Minister Theodoros Pangalos
declared that Turkey's future looked dim and that the US was attaching far
more importance to Turkey than the situation merited. Both affirmed that
Greece was uneasy about Turkish designs on Greece, after noting Turkish
action in Cyprus and claiming the same thing about the Kardak islet
incident. /Milliyet/

FRENCH INTEREST IN TURKEY GROWING

In the wake of new credit deals with France it appears that French trade
and commercial interest in Turkey has taken a sudden leap forward. The
figures suggest that France is now the leading investor in Turkey, and
that there are now some very important economic partnerships between
Turkey and France.

Both the French ambassador to Ankara, Francois Dopffer, and Trade Attache
Benoit Battistelli, say that French investment in Turkey will increase.
Along with Turkish representatives, the French agree that the upcoming
"Fransa 96" fair that will be held in Istanbul will lead to more
cooperation in the economy sectors. /Sabah/

TURKISH-SPEAKING REPUBLICS PEACE FORCE

It has been reported that Kazakhstan, Kyrgyzstan and Uzbekistan have
reached an agreement to establish a joint peace force commissioned under
the umbrella of the United Nations (UN).

According to a Foreign Ministry statement Turkey, which has always
encouraged cooperation between the Central Asian Republics, supported the
decision of the three Central Asian Republics to form a Joint Peace Force
which will contribute to regional peace and stability. /Hurriyet/

XANTHI MUFTI CONDEMNED

Elected Mufti (religious leader) of Xanthi, Mehmet Emin Aga, was sentenced
to prison yesterday according to abusing his position as Mufti.
Criticising the decision, Bedri Ucar, Chairman of the Western Thrace
Turkish Union Foundation, said that although Aga was the religious leader
of 150,000 Turks living in Greece it had been impossible to squash his
conviction, whereas the Greek Patriarch in Turkey freely received Turkish
or foreign leaders and openly expressed his ideas. /Hurriyet/

KAREKIN I. IN ISTANBUL

Yesterday, Patriarch of the World Armenian Church Karekin I. came to
Istanbul as the official guest of the Greek Orthodox Patriarch,
Barthalomeos.

Arriving at Ataturk Airport, Karekin said that he was happy to be in
Istanbul and added that he would attend church rites celebrating the 535th
anniversary of the establishment of the Turkish-Armenian Patriarchate in
Istanbul. /Milliyet/


READY WEAR INVESTMENT DEVELOPMENTS

The 12th International Conference of Ready Wear Producers held in Istanbul
is continuing in the Ciragan Palace Hotel. Representatives of various
countries gave details about recent developments in the ready-wear
industry in their countries. Bosnian Ambassador Hayrettin Somun invited
textile producers to invest in Bosnia and noted that the construction of
45 new textile facilities was planned in 19 Bosnian cities. Turkmen Deputy
Textile Minister Ahmet Calik said that new textile factories to be opened
in his country would make Turkmenistan a world ready wear production
center. "Our goal is exports worth $2 billion".

The International Meeting of Ready Wear Producers has brought to Turkey
some of the world fashion giants. Levi's Chairman Peter A.Jacobi said that
the company was planning to establish a second factory in Turkey with a
yearly capacity of four million jeans mainly for export. Jacobi described
Turkey as a "sleeping giant" and noted that the country with its
geographical location and broad domestic market was an important business
partner for Levi's. Famous US ready wear producer Oscar is also planning
to start sales in the Turkish market in cooperation with the Beymen
company.

On the other hand, ready wear producers in southeastern Anatolia have
undertaken moves for establishing themselves in the European market. The
Aegean Ready Wear Producers Group, jointly with the Akyil Companies Group,
have begun exports to Germany and Belgium. Their goal is to realize
revenues worth $30 million in 1997. /Sabah-Milliyet/



TURKISH DAILY NEWS / 9 May 1996

Turkey's chase after PKK militants turns into a cross-border operation


15 PKK militants reported killed during the attacks

TDN staff with Wire Dispatches

ANKARA- Turkish troops have intensified their attacks on Kurdistan
Workers' Party (PKK) bases since Sunday, turning their mission into a
cross-operation.

Fifteen militants were killed on Wednesday during assaults by Turkish
troops backed by U.S.-made Cobra helicopter gunships, the
semi-official Anatolia news agency reported.

Quoting regional sources, Anatolia said operations had been underway
for several days, but that troops had penetrated up to 10 kilometers
inside northern Iraq while chasing a number of PKK militants on
Tuesday.

Also on Tuesday an Iraqi group, the Kurdistan Democratic Party (KDP),
accused Turkey of damaging a village and forcing scores of civilians
to flee their homes due to long-range artillery shelling and bombing
by planes.

The KDP said that the Turkish artillery had rained more than 60 shells
on the Iraqi side of the border near Terwanish over three days.

Turkish authorities remained silent about the operation, although
Chief of Staff General Ismail Hakki Karadayi is currently on a visit
to the Emergency Rule region along with many other high-ranking
military officials.

Karadayi paid a visit to Necati Bilican, governor of the Emergency
Rule region in Diyarbakir, to congratulate Bilican on his new post and
wish him success.

"The second purpose of our visit is to be briefed on the latest
developments in the region," Karadayi was quoted as saying.

Anatolia did not say how many troops were involved in the operation.

"Security forces began a cross-border operation three days ago. They
went about eight or ten kilometers into northern Iraq," a military
official based in eastern Turkey told Reuters.

He said about 35,000 troops had been deployed for some time along the
Iraqi border, concentrating on short-range missions.

"But now Cobra helicopters are also supporting the troops' operation
(further into Iraq)," the military official said.

Around 35,000 Turkish troops spent six weeks in northern Iraq last
spring but failed to oust PKK forces there.

Turkey may visit Eurobond market by early June

Reuters

ANKARA- Turkey may visit Eurobond markets with an issue of some $300
to $500 million by early June, despite prolonged economic problems and
low credit ratings, Turkish bankers said on Tuesday.

They say the maturity of the issue could be between three and five
years. Turkey, which tapped samurai markets with 75 billion yen worth
of five-year bonds in April, is expected to give a mandate for the
Eurodollar deal soon.

It is also expected to raise some 30 billion yen this month under a
Medium Term Note (MTN) program set up last year, government officials
said.

Turkey is planning to borrow $2.5 billion on international capital
markets this year. It has already raised about $1.1 billion through
the samurai and two earlier Euro issues -- a 500 million mark and a 10
yen billion issue.

"Sentiment is positive. It will be more positive if Turkey reaches an
accord with the International Monetary Fund (IMF)," said an official
from a state-owned bank.

Turkey is expected to resume negotiations with the IMF for a new
stand-by arrangement later this month. An IMF team is expected to
arrive in Turkey on May 14 for consultations.

Turkey's sound record in debt servicing, despite economic ills and low
credibility, helps it borrow abroad. Turkey repaid its debts on time
in 1994 with no international financial support when its economy was
hit by a severe economic crisis.

Turkey currently has a B-plus rating with a stable outlook from
Standard & Poor's and Ba3 from Moody's.

Bankers and officials expect no upgrading in these ratings in the near
term and say Turkey first needs to make progress in key structural
reforms to curb big deficits and high inflation.

Economists say political instability, sparked by general discord
between the partners of the uneasy conservative coalition, and a lack
of consensus on structural reforms within the ruling alliance, is the
major obstacle facing the country's efforts to further improve its
foreign borrowing performance.

Prime Minister Mesut Yilmaz said on Monday the coalition would send a
series of draft laws to parliament in the coming weeks to increase
state revenues through taxing unregistered gains and reform
loss-making social security institutions.

The minority coalition needs suport from the left-wing Democratic Left
Party (DSP) to pass the drafts from the general assembly. The DSP
hindered efforts to privatize state firms and reform pension funds in
the past.

Turkish banks, which borrowed about $1.5 billion via one-year
syndicated loan deals last year at spreads of more than 100 basis
points, are active in the markets again this year. They have pulled
down their borrowing costs below 100 bps and are trying to extend
maturities to two years.

They have signed or launched deals worth over $530 million so far this
year, despite political uncertainty that began when the right-left
government collapsed in September, leading to inconclusive December
polls and weeks of alliance talks.

Three of the deals had a final maturity of two years with put options.
A $100-million one-year syndicated loan for the state-run Halk Bank,
which will close on Friday, is expected to be oversubscribed, bankers
say.

Some other Turkish banks are likely to go into the loan markets in
coming weeks.

World apparel convention ends after two-day focus on business

Turkish Daily News

ISTANBUL- The 12th World Apparel Convention concluded Wednesday at
Ciragan Palace with the final session on "the place of fashion in our
lives." The convention, entitled "The Winds of Enterprise," was
organized by the International Apparel Federation (IAF) and was
attended by 600 Turkish and foreign delegates.

The government interest in the convention was noted by both the
participants and the media. President Suleyman Demirel sent a message
of goodwill and welcomed the foreign participants to the convention.
At the opening ceremony of the convention on Tuesday, Prime Minister
Mesut Yilmaz delivered the introductory speech, in which he pointed to
the growing potential of the Turkish textile and clothing industry and
invited foreign textile investment in Turkey.

The convention was chaired by Hasan Arat, the chairman of the IAF, and
Turan Sarigulle, the chairman of the Turkish Clothing Manufacturers'
Association (TGSD).

The first session of the convention chaired by Peter G. Brown of Kurt
Salmon Associates was on "Global Consumer Behavior" in which
world-famous trademarks and consultant firms presented theses on the
subject with the participation of Vitali Hakko of Vakko, Vakifbank
General Manager Fehmi Gultekin, J.A.M. Kamp of C & A and Gaetano
Marzotto of the Marzotto Group.

In the afternoon session on "A Detailed Analysis of the Developing
Markets," chaired by Jerry J. Weinfuss of the EDS, the effects of the
new age of communication and transport industries and the role of
politics in the new markets were discussed. This session had the
participation of Herbert Hein of Karstadt AG, Mustafa Taviloglu of
Mudo, Onder Eren of Quiksilver, Peter A. Jacobi of Levi's
International, Mehmet Ali Babaoglu of Orta Anadolu and Dr. J. Adamicek
of Textilwirthshaft.

In the last session of the first day of the convention the subject of
"Strategic Cooperation in the Developing Markets" was discussed.
Speakers of this session, which was chaired by IBM's Daniel J. Sweeny,
included John Adams of Russell Corp., Frans Van der Velde of Scotch &
Soda BV, Ted Wachtmeister of H & M, Safa Ocak of TSKB and Karl H.
Schwarz of Textilwirthshaft.

British young stylists win the IAF prize

In the evening of the first day of the gathering, the prizes in the
first IAF Young Stylists Competition were presented.

British designers Ren Pearce and Andrew Fionda were voted the winners
of the competition, winning the IAF Prize while Umit Unal of Turkey,
who came second, was presented with the TGSD Prize and Jaana Seppa of
Finland won the Beymen Prize for coming third.

The second Young Stylists Competition will take place in May next year
in Hong Kong.

World Forum of Clothing Manufacturers

In the second day of the International Apparel Convention, the World
Forum of Clothing Manufacturers was held with the participation of the
Central Asian republics, the Czech Republic, Hungary, Poland, Tunisia,
the Russian Federation and Pakistan.

Russian Deputy Minister of Textile, Valentine Lebedev, said the
Russian apparel industry can only survive with foreign investment and
supply of raw materials from abroad while Turkmenistan's Deputy
Minister of Textile Ahmet Calik declared their target as $2 billion
textile exports for next year. The Kyrgyzstan deputy minister of
industry and trade, Ergesh Tilekmatov, informed the forum about the
privatization of the Kyrgyzstanian textile industry, and in his
address the Kazakhstan representative, Kiara Amreeva, pointed to the
role of outdated machinery as a factor in limiting Kazakhstan's
success in the textile industry and also invited foreign investment.

Hayrettin Somun, the ambassador of Bosnia-Herzegovina to Turkey, asked
those who wish to trade with his country to bring their investments,
at least in part into Bosnia-Herzegovina itself.

The Azerbeijan ambassador, Mehmet Aliev Nevruzoglu, pointed out in his
speech that although Azerbeijan is known for its rich oil industry,
his country is also rich regarding textile products.

Polish Ambassador Heusel Wojciech elaborated on the economic problems
of Poland while highlighting the signs of recovery in the Polish
economy at the same time.

Pakistan Consulate General Rahat Ulain said that 60 percent of
Pakistani exports are textile products while the Tunisian
representative, Hedi Charfi, said that that country had realized $2.5
billion worth of textile exports last year, placing Tunisia fifth in
textile exports to Europe after China, Hong Kong, Turkey and India.

Parliament to vote on Ciller inquiry today

The number of votes in favor of the RP probe into the TOFAS bidding
process is expected to exceed 300

DSP says its own research indicates an investigation of Ciller is
necessary

TDN Parliament Bureau

ANKARA- Parliament will vote today on a second motion introduced by
the main opposition Welfare Party (RP) for an investigation of True
Path Party (DYP) Chairwoman Tansu Ciller's alleged corruption in the
automotive concern TOFAS.

Ciller has been accused of irregularities in the bidding process in
the privatization of TOFAS.

Besides the RP, other parliamentary opposition parties, namely the
Republican People's Party (CHP) and the Grand Unity Party (BBP) will
back the motion. After making the necessary examination in regard to
the issue, the opposition Democratic Left Party (DSP), which backs the
coalition but is not a partner, has decided that the inquiry should go
ahead.

The passage of a parliamentary motion late April regarding the
launching of an inquiry into Ciller, concerning the alleged
corruptions at TEDAS, led to a crisis of confidence between the
coalition partners. The motion, which was also introduced by the
pro-Islamic RP, was passed by 232 votes to 179 in the 550-seat
Parliament in a secret vote, during which 32 deputies from Mesut
Yilmaz's Motherland Party (ANAP) apparently voted in favor of the
investigation. Reportedly, the number of ANAP deputies who will vote
in favor of the TOFAS inquiry during today's parliamentary session
might number up to 60. The total number of votes in favor of the
motion is expected to be exceed 300.

Although Ciller had earlier announced that she would vote for the
TOFAS probe, her DYP colleagues are expected to vote against the
motion. However, Ciller's intraparty opponents may reportedly either
not attend the vote, as was the case during the TEDAS vote, or some
might vote in favor.

Prior to the vote of the TOFAS inquiry, the DYP Parliamentary Group
Administration distributed a booklet to all DYP deputies attacking the
legal basis for an inquiry. Professor Zeki Hafizogullari gave legal
advice in which he said that the motion against Ciller should be
rejected. Hafizogullari said in the booklet that the issue cannot be
made the subject of a parliamentary inquiry because there already
exists a finalized court ruling in regard to the disputed matter.

However, an investigation carried out by a committee set up within the
DSP parliamentary group has yielded an opposite opinion. Briefing his
group about the outcome of his studies, Zekeriya Temizel said that the
court ruling had related to the TOFAS bidding commission. "The
investigation of the alleged irregularities may bring to the surface
the reasons which led Ciller to open the sealed bidding envelope,"
Temizel said.

Pointing out that he and his colleagues had carried out their
investigations by listening to all concerned, Temizel said that under
existing Turkish legislation, the opening of the sealed bidding
envelopes by the prime minister could not be accepted.

Temizel noted that the bidding was opened for selection of a firm
which would market $600 million dollar state shares in TOFAS. He said
that the sealed envelopes which contained the final offers of two
competing firms, requested by the tender commission, were opened by
Ciller at the prime minister's residence. He said that under the law,
the envelopes should have been opened in front of the tender
commission.

Temizel said that although it was the Interbank-Schroder group which
had won the tender by making the lowest bid, the Finansbank-Lehman
group was also given the tender, in violation of bidding conditions.
He added that both groups were given excess payments ranging between
$550,000 and $750,000.

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TURKISH PRESS REVIEW
FRIDAY MAY 10, 1996

YILMAZ RECEIVES RUSSIAN JOURNALISTS

Prime Minister Mesut Yilmaz received yesterday a group of
Russian journalists visiting Turkey upon the official
invitation of State Minister Ali Talip Ozdemir. Touching
upon Greek and Syrian support for the PKK organization,
Yilmaz expressed his hopes that Russia would join the
countries trying to persuade Syria to abandon its policy of
support for terrorism. "I believe that Turco-Russian
relations will develop further", Yilmaz said and added that
gradually improving friendly relations between Turkey and
the Central Asian republics would have no negative
implications for Russia. The prime minister also commented
on the pipelines to carry Azeri oil and pointed out that
transporting the oil via pipelines was the most suitable
solution. He added that related disagreements could be
resolved at the round table. /Cumhuriyet/

SOUTH KOREAN PM VISITS TURKEY

South Korean Prime Minister Lee Soo-Sung arrived yesterday
in Turkey at the official invitation of Prime Minister Mesut
Yilmaz. Contacts between the two prime ministers will be
directed at improving bilateral economic relations, and
regional and international issues will also be discussed.
Commenting on the visit of the South Korean prime minister,
some sources point out that former South Korean Foreign
Minister Han Sung-Joo was recently appointed UN Cyprus
Special Representative. /Cumhuriyet/

TURKEY WILL ASK FOR POLITICAL SUPPORT FROM US

Turkey declared yesterday that it would look for alternative
ways for transporting Caspian oil via Turkey. "We have not
abandoned the Baku-Supsa pipeline" Foreign Ministry Deputy
Spokesman Nurettin Nurkan said in his weekly press
conference yesterday. "But if there is any delay or
reluctance on the realization of the Baku-Supsa route -which
we consider as an essential component of the Baku-Ceyhan
line- Turkey will use its own initiative to look at other
alternatives". He said that a possible alternative was
having talks with Georgia and Azerbaijan for the transit
rights of Azeri oil.

Foreign Minister Emre Gonensay will make a swift working
visit to Washington on May 19-22, to discuss, along with
Turco-Greek relations and Operation provideComfort, the oil
pipeline issue and ask for Washington's support on the
transportation of oil via Turkey. Gonensay will meet US
Secretary of Defence William Perry and Secretary of State
Warren Christopher.

Ankara has also started issuing strong measures on the
safety of the Bosphorus. "It is very clear that the safety
of the straits and Istanbul cannot be jeopardized" Spokesman
Nurkan said, adding Turkey was ready to make adjustments
regarding the safety of its territorial waters. Nurkan's
remarks indicate a pendingassessment in the Turkish Foreign
Ministry of further measures Turkey can use against the
large oil tankers which pass through the Bosphorus. "Turkey
knows its responsibilities within the framework of the
Montreux Convention" Nurkan assured. /Cumhuriyet/

DEMIREL WARNS RUSSIA

Turkish President Suleyman Demirel, who was in Uzbekistan
for an official visit, said on Wednesday that the Turkish
straits could not be used to transport excessive amounts of
Caspian crude oil to international markets. "The party that
tries to increase the load on the straits excessively will
find its tankers stacking up at the entrance of these
straits" Demirel said. Turkey has been wary of an agreement
between Russia and Kazakhstan that threatens to dangerously
increase the oil tanker traffic in the Turkish straits.
"Turkey is not telling any country that it cannot use the
straits" Demirel said. But he added that the volume of
traffic that these waterways could handle was ultimately
limited. Demirel added that a pipeline running between Baku
in Azerbaijan and Ceyhan on Turkey's Mediterranean coast was
"a must" and said he he believed everyone would comearound
to realizing this eventually. /Cumhuriyet/

JAVIER SOLANA TO VISIT TURKEY

Javier Solana, secretary-general of NATO, will at the end of
this month pay his first visit to Turkey since being
appointed to his position. He is expected to be in Ankara on
May 22. Officials in Ankara reportedly expect Solana to
concentrate on the problems between Turkey and Greece. It is
anticipated that the secretary-general will also refer to
confidence building measures in the Aegean during his
negotiations in Ankara. /All papers/

N.IRAQ CROSS-BORDER OPERATION ENDS

The cross-border operation which Turkish forces launched
during their pursuit of militants of the PKK terrorist
organization ended yesterday morning. Officials said around
1,200 troops participated in the cross-border operation and
thatits targets had been achieved. Defence Minister Otlan
Sungurlu described the operation carried out against the PKK
as a "hot pursuit".

Replying to the reporters' questions during his weekly press
conference, Turkish Foreign Ministry Deputy Spokesman
Nurettin Nurkan said Turkey was determinedto ensure the
security of its borders. He said the cross-border operation
had been limited in scope, adding that it was out of the
question for Turkey to tolerate the existence of the PKK in
northern Iraq. Pointing out that Turkey's exercising its
right to hot pursuit should be viewed as natural, Nurkan
said the regrouping of terrorists who escape from clashes in
Turkey in border regions in northern Iraq could not be
accepted. He emphasized that the Turkish Armed Forces'
operations were not aimed at civilian targets and refuted
reports that civilians in northern Iraq had suffered losses.
He stressed that there were no settlements in the areas
where the operations were carried out. /Hurriyet/

TURKEY STRENGTHENS ITS PLACE IN THE WEU

Turkish Foreign Minister Emre Gonensay who has been in
London for the Ministerial meeting of the Western European
Union(WEU), said that Turkey would strengthen its place in
the WEU through "Joint Mission Force" between the WEU and
NATO and he added that Turkey would be a de facto full
member of the union. /Hurriyet/

FOOTBALL DIPLOMACY FOR CYPRUS

In an effort to ease tension between the Turkish Republic of
Northern Cyprus and the Greek Cypriot communities,
International Football Federation, FIFA, plans to organize
football matches between teams of the two seperate states in
the island.

FIFA officials said that the matches between Turkish and
Greek Cypriots teams would be on a friendly competition
basis. /Milliyet/

'ETERNAL FRIENDSHIP AGREEMENT' GOES INTO EFFECT

Turkey and Uzbekistan, who signed an Eternal Friendship and
Cooperation Agreement, have promised that they will not let
their territories be used for attacksagainst each other. The
agreement also stated that cooperation between the
twocountries will be developed by multi-lateral support
against threats aimed at their independence, sovereignty and
territorial integrity. It was noted that the agreement was
not against a third party. The agreement foresees the
development and cooperation based on historical and cultural
ties between Turkey and Uzbekistan.

After completing his official contacts in Uzbekistan
yesterday, President Demirel will depart from Turkey on
Sunday for Iran and then Turkmenistan. Foreign Ministry
Deputy Spokesman Nurettin Nurkan said in his weekly press
conference yesterday that Demirel would attend an opening
ceremony of a railway connection in Meshed, Iran on Sunday
and Monday and on Tuesday and Wednesday participate inthe
fourth summit of the Economic Cooperation Organization (ECO)
in the capital of Turkmenistan, Ashkabad. /Cumhuriyet/

AUTOMOTIVE OUTPUT UP 9 % IN APRIL

Turkey's automotive output rose nine percent last month to
27,900 units from 25,602 in April 1995, the Association of
Turkish Automotive Industry (OSD) said yesterday. OSD said
motor vehicle production reached 100,352 in the first four
months of 1996, up 13 % over the same 1995 period. The four-
month output included 68,602 cars, up three repcent from
January-April 1995, followed by 14,813 tractors, up 48 %
from a year ago. In January-April, production of trucks
increased 57 % to 7,062, pick-ups up 20 % to 4,986 and
minibuses up 38 % to 2,791, compared with the same 1995
period. OSD said bus production surged 231 % to 791
inJanuary-April due to a rise in exports. Turkey's
automotive output rose 20 % in 1995 to 319,498, including
233,414 passenger cars, up 10 % from 1994. Last year's
imports were 34,930 motor vehicles, including 21,652 cars.
/All papers/

TURKISH INDUSTRY GREW 11.4 % IN MARCH

Turkey's industrial output rose 11.4 % in March compared to
a 1.8 % decline inthe same 1995 month, the State Institute
of Statistics said yesterday. It saidthe industrial
production grew 8.5 % in the first quarter after a 4.2 %
fall in the same 1995 period. The manufacturing industry
recorded 10.6 % growth in March and 7.9 % in the first three
months, compared to contractions of 2.6 % and 5.8 % in the
respective periods of 1995. Mining sector output rose by
2.9% and energy sector grew by 19.2 % in March, it said.
/All papers/

TURKISH DAILY NEWS / 10 May 1996

Parliament passes second Ciller probe

Looming: A third probe into Ciller, this time into her personal
assets, is in the offing and will be debated within the next two weeks


TDN Parliament Bureau
ANKARA- Parliament on Thursday backed a second motion introduced by


the main opposition Welfare Party (RP) for an investigation of True
Path Party (DYP) Chairwoman Tansu Ciller's alleged corruption in the

sale of automotive concern TOFAS.

Ciller has been accused of irregularities in the bidding process

regarding the selection of which firms which would market the state
shares in TOFAS. The passage of a parliamentary motion late April
regarding the an inquiry into Ciller concerning the alleged
corruptions at state electricity distributor TEDAS led to a crisis of


confidence between the coalition partners. The motion, which was also
introduced by the pro-Islamic RP, was passed by 232 votes to 179 in
the 550-seat Parliament in a secret vote, during which 32 deputies
from Mesut Yilmaz's Motherland Party (ANAP) apparently voted in favor

of the investigation, as thus against their coalition partner, the
DYP.

The two center-right parties formed a coalition after the Dec. 24
election left no outright winner. A third motion requesting an
investigation of Ciller's assets will be debated in Parliament within
the next two weeks. Only the DYP deputies voted against the RP motion
during Thursday's session. Besides ANAP, the parliamentary opposition
parties, namely the Republican People's Party (CHP) and the Democratic
Left Party (DSP) backed the RP motion.

RP parliamentary group Deputy Chairman Sevket Kazan, who wanted the
motion to be accepted by his colleagues, said that there were grave
doubts over the TOFAS tender and added that the existing documents
demanded the opening of an inquiry. Many from the DYP women's branch
followed the debate from the viewing galleries in Parliament. Deputy
Parliament Speaker Uluc Gurkan warned the spectators not to disrupt
the proceedings. Ciller followed the debates from her office in
Parliament.

ANAP, the RP and the DYP will each be represented by four seats on the
15-person commission; the DSP has two and the CHP one. The Parliament


will decide on whether or not to recommend charges to the court after

the commission of inquiry, which will convene over a four-month


period, studies the allegations and presents its report. The Ciller
opponents, however, have to muster 276 votes in the Parliament to send
Ciller before the Supreme Court.

During the debate, Ciller was represented by Ahmet Iyimaya from the
DYP group. Iyimaya said that Ciller had acted in conformity with the
law and that was innocent of any responsibility. He said bureaucrats
had been cleared of charges in an earlier case on the subject. He
claimed that the motion was politically motivated and had no legal
foundation.

The ANAP administration branded Ciller's harsh criticism of her
coalition partner for its support for the RP motions as unjust. ANAP
parliamentary group Deputy Chairman Cumhur Ersumer rejected all the
charges which Ciller levelled on Wednesday against his party at a
press conference in Parliament. Ersumer said his party faced
accusations which it had never deserved.

Ersumer said that he and his colleagues did not have the intention of
stabbing Ciller in the back, as she has claimed. Yilmaz, who has not


met with Ciller since the crisis of confidence emerged on April 24,

talked with her over the phone last week and told her that the ANAP


parliamentary group would continue to cast its votes as it wished
during the votes on the parliamentary investigations. As a result of

the ongoing criticism by Ciller to discredit the government, Yilmaz
demonstrated that he did not intend to make sacrifices for the
continuation of the government.


Ankara looks for alternatives to Baku-Supsa pipeline

Foreign Minister Emre Gonensay to travel to Washington to ask for the
reinstatement of US support for Baku-Ceyhan route

Turkish Daily News
ANKARA- Turkey, unable to persuade the international oil consortium on
Turkish terms for financing the Baku-Supsa pipeline, explicitly
declared Thursday that it would look for alternative ways for
transporting Caspian oil via Turkey.

"We have not abandoned the Baku-Supsa pipeline," Foreign Ministry
deputy spokesman Nurettin Nurkan said in his weekly press conference
on Thursday. "But if there is any delay or reluctance on the
realization of the Baku-Supsa route -- which we consider as an
essential component of the Baku-Ceyhan line -- Turkey will use its own
initiative to look at other alternatives." He said that a possible
alternative was having talks with Georgia and Azerbaijan for the
transit rights of Azeri oil.

Since 1991, Turkey has aimed to ensure the passage of oil pipelines
that would carry the lucrative Caspian oil to European markets via its
own territory. When the project for Azeri early oil came up, Turkey
shifted the balances from the Russian route -- that would take the oil
to the Russian Black Sea port of Novorossiysk -- by saying that it
would finance the Baku-Supsa route and buy the early oil. From then
on, Ankara would carry the route further, down to Turkey's
Mediterranean port of Ceyhan.

In order to ensure that the Baku-Supsa route will be a step toward the
longer Baku-Ceyhan one, Ankara insisted on certain conditions on the
financing agreement, ranging from a Turkish-dominated consortium to
build the pipeline to explicit wording that the ultimate aim was a
Baku-Ceyhan pipeline. Ankara also said that there should be an upper
limit to the transportation capacity of the pipeline.

But the International Consortium for Azeri Oil (AIOC) failed to accept
those conditions so far, and announced that it had opted instead for
inviting fresh bids for the project.

Almost simultaneously with the delay in the Baku-Supsa agreement,
Russia and Kazakhstan signed an agreement for the construction of an
oil pipeline that would take the oil from the Tenghiz fields to
Novorossiysk.

In a direct response to the developments, Foreign Minister Emre
Gonensay said earlier this week that Turkey was looking for new
alternatives to the Baku-Supsa pipeline, and was quoted as saying that
the project had been abandoned.

A day later, the semi-official Anatolia news agency reported that the
Turkish credit offer made to the AIOC had been withdrawn. This had
been conveyed to AIOC President Terry Adams in a letter, Anatolia
said.

Spokesman Nurkan sought to bring clarification to Foreign Minister
Emre Gonensay's statement in his weekly press conference, saying that
Turkey had not given up the Baku-Supsa pipeline.

"We continue to consider it as an important step to the realization of
the Baku-Ceyhan pipeline," Nurkan said.

If Baku-Supsa is not possible

Nurkan stressed that Turkey would bring no new offers to the
consortium, but use its own initiative to talk to Georgia and
Azerbaijan on transit rights. This may mean that Turkey, through its
own financing, may seek a new route that would bring Azeri oil to
Tbilisi and transport it to Ceyhan via a pipeline from there. However,
it seems difficult to assess the feasibility of such a project,
particularly if it is to be carried out independently of -- if not in
spite of -- the international consortium which has been established
for the transportation of the Caspian oil. Foreign Minister Emre
Gonensay will make a swift working visit to Washington on May 19, to
discuss, along with Turco-Greek relations and Operation Provide
Comfort, the oil pipeline issue and ask for Washington's support on
the transportation of oil via Turkey.

Ankara has also started issuing strong messages on the safety of the
Bosphorus. "It is very clear that the safety of the straits and
Istanbul cannot be jeopardized," spokesman Nurkan said, adding Turkey
was ready to make adjustments regarding the safety of its territorial
waters.

Nurkan's remarks indicate a pending assessment in the Turkish Foreign
Ministry of further measures Turkey can use against the large oil
tankers which pass through the Bosphorus. "We have no intention of
revising the Montreux Convention," Nurkan assured.

Turkey drafts law to regulate private power production

Turkish Daily News
ANKARA- The coalition government is reportedly drafting a fresh piece
of legislation in order to regulate power production by private sector
companies both for their own use and to trade.

Energy sources said the draft, detailing the principles of
auto-production, will encourage private firms to generate power.

"A new 'build-operate' system will thrive to ensure maximum
participation of private firms, including auto-production, into the
energy sector," the Anatolia news agency quoted one official as
saying.

The draft, prepared by the Energy Ministry, has been sent to
ministers' desks. It may win Cabinet approval within a week. The draft
excludes nuclear, hydroelectric and geothermal power stations from the
scope of the proposed build-operate model. It includes thermal,
liquefied natural gas, liquefied petroleum gas, natural gas and
imported coal-fired stations.

The Energy Ministry will be authorized to set electricity rates if a
private producer wishes to supply power to the public. The ministry
will also be allowed to give purchase guarantees to private producers
through the national power company TEAS.

Some 64 percent of Turkey's total power generation of 85 billion
kilowatt hours in 1995 was used in the industrial sector.

President Demirel says straits cannot be used for increased transportation
of Caspian oil

President indicates pile up at entrance of straits as disincentive for
countries wanting to transport increased amounts of oil through these
waterways

By Yusuf Kanli
Turkish Daily News
SAMARKAND- President Suleyman Demirel, in Uzbekistan for an official
visit, said on Wednesday that the Turkish straits could not be used to
transport excessive amounts of Caspian crude oil to international
markets.

"The party that tries to increase the load on the straits excessively
will find its tankers stacking up at the entrance of these straits,"
Demirel said.

Turkey has been wary of an agreement between Russia and Kazakhstan
that threatens to dangerously increase the oil tanker traffic in the
Turkish straits.

Turkey is not telling any country that it cannot use the straits,
Demirel said. But he added that the volume of traffic that these
waterways could handle was ultimately limited.

"Now we are talking about transporting early oil. That is 5 million-10
million tons of oil per year. This is no problem. But what will happen
when the need arises for transporting 100 or more million tons of oil
per year?" Demirel said while talking to reporters in the ancient city
of Samarkand.

Demirel added that a pipeline running between Baku in Azerbaijan and
Ceyhan on Turkey's Mediterranean coast was "a must" and said he
believed everyone would come around to realizing this eventually.

Demirel's remarks followed the remarks of Turkish Foreign Minister
Emre Gonensay earlier in the week in which he suggested Turkey could
institute further safety measures in the straits if Russia planned to
increase the tanker traffic there for Caspian oil.

Russia considers the new safety measures introduced in July 1994 and
these latest remarks of Gonensay's as a ploy by Ankara aimed at
forcing the issue of a pipeline going over Eastern Anatolia.

Ankara does not deny the advantages such a pipeline will bring Turkey
but also says it is sincere when it expresses concern for safety in
the straits.

This concern is especially acute for the Bosphorus which has witnessed
major tanker accidents in recent years and on whose two shores
hundreds of thousands of Istanbul residents live.

Demirel calls on Turkish businessmen to put trust in Uzbekistan's future
President says Turkish investors could play an important role in that
country's economic development

Turkish Daily News
TASHKENT- President Suleyman Demirel on Thursday called on Turkish
businessmen to "continue trusting in the future of Uzbekistan" and to
invest in that country.

Demirel was speaking to a group of Turkish investors in the capital of
Uzbekistan just prior to ending his official visit to that country.

Demirel said that Turkey and Uzbekistan were brotherly countries. He
indicated that the country that had been the most pleased when
Uzbekistan gained its independence was Turkey. "This is because Turkey
itself won a war of liberation and is naturally pleased to see this as
an example to other countries," he said.

Indicating that institutionalization in accordance with current needs
was one of the major problems facing countries like Uzbekistan today,
Demirel said Turkish businessmen could contribute to the development
of these countries.

"We have no other aim but to serve Uzbekistan. Others may have ideas
of coming here and securing great benefits for themselves. But such an
idea does not exist in the minds of our businessmen," Demirel said.

He indicated the fact that an estimated 200 Turkish companies were now
engaged in serious operations in that country was a matter that had to
be deeply appreciated. "We know the difficulties involved in a country
that is just opening up to a market economy. But what is important
here is good intentions ... Two of Turkey's greatest assets are
democracy and entrepreneurs who are aware of modern technology. May
God make your endeavors easier," Demirel said.

Addressing a press conference on Wednesday on his talks with the
president of Uzbekistan, Islam Kerimov, and his contacts during his
official visit to that country, Demirel said the development of
Eurasia was an opportunity for mankind that should not be missed.

He pointed out that 200 years of Russian and Soviet administration in
the region had had a significant destructive effect.

Demirel said that the Soviet Union had dissolved but that there were
still different peoples within the borders of the Russian federation.

He pointed to the restive Chechens in this regard and said Russia had
tried to crush this nation in order to set an example to others who
may be thinking of independence from the federation.

"It is not right (for Russia) to say, 'This is Russia's internal
affair. I can shed blood as I please.' There are international
relations," Demirel said.

He went on to say that certain republics had been forced into the
Soviet Union even though they had nothing in common with Russia in
terms of their ethnicity, culture or religion.

He said that now that these countries had gained their independence
and were trying to stand on their own feet they were disturbed at
certain efforts aimed at trying to revive the Soviet Union.

"Politically speaking Eurasia has just joined the world geography,"
Demirel said, adding that developments in Tajikistan, Afghanistan and
Eurasia concerned Turkey very closely.

He pointed out that of the 3,200 foreign companies from 65 countries
in Uzbekistan 200 were Turkish. He said that the value of Turkey's
business undertakings abroad today stood at $10 billion and said this
figure could easily be increased to $50 billion.

Denktas calls on Clerides for face-to-face meeting

By Ugur Akinci

Turkish Daily News
WASHINGTON -- Rauf Denktas, president of the Turkish Republic of
Northern Cyprus (TRNC), repeated his call for a face-to-face meeting
with Glafkos Clerides, president of Greek Cyprus, in order to resolve
the Cyprus issue. According to the TRNC office in New York, Denktas
said: "We can resolve this matter on a reciprocal basis, by respecting
each other's equality, sovereignty, rights and status; by respecting
bi-zonality; and by considering the Treaties of Guarantee and
Alliance, which saved Cyprus from being colonized [by Greece], as
fundamental. There is no other way."

Clerides recently said that Turkey had to "change its mentality" to
clear the way for a solution. Responding to Clerides' remark, Denktas
recalled that it was not Turkey which had created the Cyprus problem.
He advised Clerides to read his own memoirs. A spokesman for the
TRNC's New York office said that Clerides in his book "Cyprus: My
Deposition" had admitted that the Greek preoccupation, from the
beginning, had been that "Cyprus should be a Greek Cypriot state,"
whereas the Turkish Cypriot preoccupation "was to defeat any such
effort and to maintain the partnership concept."

Pointing out that the threat posed by Greece to Cyprus would continue
as long as the former's claim over the island continued, Denktas said
the most obvious evidence of this was "the militarization in the
south, the military agreement signed with Greece, and the Greek
Cypriot side's effort to dominate the island through the European
Union (EU)."
Union (EU)."

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TURKISH DAILY NEWS / 13 May 1996

Turkey's automotive exports soar 67% in January- April

Turkish Daily News

ANKARA - Exports by Turkish motor vehicle and parts producers rose 67
percent in January-April 1996 to $486.9 million from$291.8 million in
the same 1995 period, the Association of Turkish Automotive Industry
(OSD) said in a statement. Exports of motor vehicles made up $211.5
million of the total amount, up 239 percent from January-April 1995.
Automotive parts exports increased only 20 percent to $275.4 million
over the same period, the OSD said.

Bus exports boomed 675 percent to $64.1 million in the first four
months of 1996 from previous $8.3 million while car exports leapt 217
percent to $128.6 million from $40.6 million in the first four months
of last year. Leading Turkish car maker Tofas, owned equally by Fiat
Auto and Koc Holding led the sector with car exports to European Union
countries and Egypt.

The OSD said tractor producers also began exporting to Mexico and the
U.S. for the first time. Buses were exported to Europe, Russia and
Central Asian republics, it added. Turkish automotive exports rose
sharply to $1.19 billion last year from$750.3 billion in 1994.Turkey
imported 11,076 cars in the first four months, more than triplingfrom
3,606 in the same 1995 period and bringing the share of imports to 18
percent from previous six in the car market.

TURKISH DAILY NEWS / 12 May 1996

Ankara advises `realism` to Greece

Turkish Daily News

ANKARA- Turkey urged Greece Saturday to act realistically and display
a more responsible attitude its relations with Ankara.

Responding a question, Foreign Ministry Spokesman Omer Akbel said
Turkey is evaluating the Bucharest meeting between foreign ministers
Emre Gonensay and Thedore Pangalos of the two countries as marking the
beginning of a process of improved relations based on common sense and
rapprochement. The spokesman added that it was natural that during the
current sensitive phase, the two sides should act with utmost caution.


However, Akbel said, it was impossible to justify the hostile and
anti-Turkish remarks of Pangalos in recent days. The spokesman,
meanwhile, hinted that the anti-Turkish and hostile statements of the
Greek foreign minister might be intensified because of the forthcoming
convention of the Pan-Hellenic Socialist Movement (PASOK).

Akbel said the bilateral relations between the two countries should
not fall victim to the domestic political considerations in Greece and
called on Athens to adopt a constructive policy based on realism in
its ties with Ankara.

TURKISH DAILY NEWS / 11 May 1996

Turkey wants 25 million tons throughput guarantee for Baku-Ceyhan
pipeline

Energy Minister Dogan says there is no point in building a pipeline if
it is not a rational project

Turkish Daily News

ANKARA- Following Foreign Ministry declarations that Turkey was
looking for alternatives for transporting Caspian oil via Turkey, the
Energy Ministry interjected that a Turkish-built Baku-Ceyhan pipeline
would be feasible only if a throughput of 25 million tons of oil
annually was guaranteed.

"Turkey will continue its intensive contacts for the realization of
the Baku-Ceyhan pipeline," Energy Minister Husnu Dogan said in a press
conference on Friday. "This will be a 1650-kilometer-long pipeline
that would cost about $2 billion.

But the throughput guarantee of this pipeline should be a minimal of
25 million tons to make such a project feasible."

Ideally, the pipeline will pass through Azerbaijan, Georgia and
Turkey. It is not a new project as it had been proposed in 1993,
although the Azerbaijan International Operation Consortium (AIOC),
which is responsible for transporting oil from three Azeri oil fields,
later preferred a route that took the Azeri oil to the Georgian Black
Sea port of Supsa. An additional one was one that would take the oil
to the Russian port of Novorossyisk.

The three Azeri oil fields will be exploited by a 12-member consortium
in which British Petroleum and Amoco hold the largest stakes. It also
includes SOCAR, the Turkish company TPAO, LUKoil of Russia, Pennzoil,
Ramco, Unocal, Statoil, McDermott, Delta and Exxon. TPAO's shares in
the consortium are 6.75 percent.

Ankara's announcement that it was "looking for alternatives"to
transport Azeri oil via Turkey came amid mounting Turkish fear that
the project had slipped through its fingers. Last week, Russia and
Kazakhstan signed an agreement for building a pipeline via the Tenghiz
fields to the Russian port of Novorossyisk. As this line can be used
for transportation of Azeri oil as well, Turkey feared that the
Baku-Supsa line would lose its chances of being built and started
simultaneously with the Russian route, particularly when the financing
accord for the unbuilt line has not been signed.

Moreover, Turkey, which had originally pledged to finance the
pipeline, failed to get its conditions accepted and withdrew its offer
Tuesday.

A day later, Turkish Foreign Ministry Deputy Spokesman Nurettin Nurkan
announced that Turkey would start direct talks with Georgia and
Azerbaijan for building an oil pipeline. The talks would include
throughput guarantee and transit rights.

Turkey will also hold talks with major powers on the pipeline. Foreign
Minister Emre Gonensay will visit the United States May 19-22 where he
will ask Washington to reinstate its support for the transportation of
Caspian oil via Turkey. During the same period, a Turkish delegation
which includes the new chief of the Turkish pipeline company BOTAS
will go to Russia to discuss natural gas sales but use the opportunity
to see if Turkey and Russia could cooperate, rather than clash, on the
oil routes.

"Let me stress that the construction of the Baku-Ceyhan pipeline
necessitates a productive and reconciliatory approach by the related
countries so that the project can be feasible," Energy Minister Dogan,
a former State Planning Organization technocrat, said.

In an apparent move to comfort Russia, he said that Turkey did not
insist on transport all of Caspian oil via its territory. "We only
want the transportation of excess oil, so that the safety of the
straits will not be threatened," Dogan said.

Presently 30 million tons of oil passes through the Turkish straits in
a year. Turkey has recently imposed a regulation for safety of passage
from the straits, urging large tankers to take pilotage.

"The Baku-Supsa project was an indirect (contribution) to the
Baku-Ceyhan line, so that Caspian early oil will not be pushed all to
Russia," Dogan said.

"Early oil" is a term used to designate the limit placed on the amount
of petrol that can be extracted from three Azeri oil fields in the
Caspian sea. Up to 5 million tons per year can be extracted for export
for up to eight years.

The two pipelines -- the Russian route and Georgian route --chosen for
the early oil will have a total capacity of 25 million tons annually.
Ankara, as a condition for its financing of the Georgian line, said
that the pipeline should not have a capacity to carry more than 6
million tons of oil annually.

The first oil was due to start flowing in the second half of 1996, but
has been postponed until 1997.

"We should not let our imagination soar. It is not realistic to build
a pipeline if it is not a rational project," Dogan said.

However, it is still unclear whether Turkey can actually get a
guarantee of throughput of 25 million tons. Energy sources say that
the Caspian oil production will be 140 million tons annually, but this
will only be by the year 2010.

AIOC says it will decide the crucial question of its main oil
transport route by mid-1997 among 28 route options.

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TURKISH DAILY NEWS / 14 May 1996

GONENSAY HINTS AT NEW MEASURES FOR OIL AND OTHER CARGO VESSELS


No change: Turkish foreign minister says Foreign Ministry and MIT
undersecretaries will not be posted abroad.

By Yusuf Kanli

Turkish Daily News

ASKHABAT- Foreign Minister Emre Gonensay said Turkey does not aim to
restrict free navigation through the strategic Turkish Straits but
cannot ignore the security aspect either.

In an exclusive interview with the TDN, the foreign minister stressed
that the 1994 Straits Regulation measures, which was approved by the
International Maritime Organization (IMO), was regulating traffic
through the straits, but Turkey's experiences showed that additional
security measures were required in order to cope with the increased
traffic and the increased risk for Istanbul, the largest city in the
country.

Hinting that the new measures Turkey is planning to introduce for
passage through the straits would not be restricted to additional
traffic regulations, Gonensay said that "besides regulating traffic
through the straits, there is the issue of the type and design of the
vessels as well. Our prime concern is to increase security in the
straits."

Without making direct reference to the "free navigation" stipulation
of the Montreux convention, which restored Turkish sovereignty over
the straits, the minister said, "Our prime concern is to decrease the
risk of accidents in the straits and thus decrease the risk for
Istanbul and its 12 million people."

Summarizing the new straits policy of Turkey as "to take adequate
measures to decrease the risk of collisions or accidents and to
decrease the impact of accidents," the minister said the new
regulations "may ask for certain standards for oil and other cargo
vessels."

Gonensay said that with the new measures Turkey will also aim to
increase the capacity of straits as much as possible.But he said he
was not optimistic that the capacity of the straits could be increased
by very much.

He underlined that the new measures Turkey would take would definitely
conform with international maritime agreements and treaties,
particularly with the IMO.

He also stressed that Turkey was obliged to urgently complete the
straits signalization project for which a tender had not yet been
invited.

Turkish and Greek FMs to meet in Toronto, Berlin

Gonensay also disclosed that he will come together with his Greek
counterpart, Theodoros Pangalos, at the Bilderberg meetings in Toronto
between May 30 and June 2. He said that the organizers of the
Bilderberg meetings invited himself and the Greek foreign minister
with the intention of bringing them together. He said that although no
meeting was planned officially, it was natural that he would come
together with Pangalos at the meetings, as well as at social events,
where they would be able to discuss bilateral relations between the
two countries.

The minister said he would then go on to Berlin for a meeting of the
NATO Ministerial Council. He said that Pangalos would also be at the
Berlin meeting and that they would be able to meet there as well.

Diplomats to meet after May 25

The minister also disclosed that technical level talks between the two
countries on the demilitarization of the Aegean islands, territorial
waters and the Aegean islets and rocky outcrops will start in Geneva
after May 25.

Gonensay said two diplomats from the each country would attend the
Geneva meetings. He said that the task of the diplomats would be to
define the "gray area" in the Aegean and that they would try to reach
an accord satisfactory to both countries.

When asked to explain the "gray area," Gonensay said he used that
expression regarding the islets and rocky outcrops in the Aegean which
were not mentioned in any international agreement and therefore not
certain as to which country they belong to. However, he said that he
had learned with regret that his remark was exploited by Greek
President Costis Stefanopoulos, who claimed in contacts with American
leaders that the Turkish foreign minister was demanding territory from
Greece.

Gonensay said that if Turkey and Greece go to arbitration or to the
European Court of Justice in The Hague over the Aegean islets, Greece
should either provide guarantees to Turkey, regarding demilitarization
of the Aegean islands and the six-mile territorial waters in the
Aegean, or agree to take those two issues to the court as well. He
said that Turkey would not accept anything less than that.

Underlining that Turkey did not expect any major move from Greece for
better relations with Turkey before the forthcoming congress of the
ruling Pan-Hellenic Socialist Movement (PASOK), Gonensay said that
Greek Foreign Minister Pangalos was under pressure from the
Parliament, the hawks in PASOK and the European Union. He said that
while the Greek Parliament and the hawks in PASOK were accusing
Pangalos of treason, because he unconditionally met with the Turkish
foreign minister in Bucharest last month, EU ministers were pressuring
Greece to lift its veto of funds for Turkey.

Gonensay said that European countries are telling Greece that since
Turkey is willing to discuss all outstanding problems with Athens, the
Greek veto was unjustifiable and should be lifted. "I have spoken with
many of the European foreign ministers. They are all saying that since
Turkey is declaring its readiness to talk with Greece, the Greek
acceptance of taking only one outstanding issue with Ankara and with
only one method to the court, is not sufficient grounds to build a
veto on. I wrote to the EU term president, the Italian foreign
minister, some 15-20 days ago and explained our position regarding
these issues." Gonensay said seeing that it does not have a sufficient
reason to continue its veto. Greece is trying to exaggerate issues
with Turkey in order to provide legitimacy to its position.

Regarding the proposal to declare the islets and rocky outcrops as
"free areas," Gonensay said no-one can decide on that unilaterally.

Won't agree to accession of Cyprus before settlement

The foreign minister explained that Ankara would never accept Cyprus
becoming a member of the European Union before a bi-zonal and
bi-communal federation of the two communities was established on the
island. However, he said that after the settlement, Turkey would
handle its rights derived from the 1959-1969 London and Zurich accords
with a positive and constructive approach."

The London and Zurich accords bar Cyprus from becoming a member of any
economic, military or political organization in which both Greece and
Turkey are not already members.

Gonensay said that if and when a Cyprus solution was reached, Turkey
would look at the circumstances of its bid to become a full member of
the EU and would then make a decision regarding the island's
membership.

Responding to a question about a possible new U.S. initiative on
Cyprus, the minister said there was much anticipation but that Turkey
does not have any details about a new plan. He said, however, that the
new initiative may only begin after the May parliamentary elections in
Greek Cyprus.

Gonensay said that Turkish Cyprus President Rauf Denktas accepted up
to 95 percent of the "Set of Ideas" that United Nations
Secretary-General Boutros Boutros-Ghali had proposed. He hinted that
Ankara believed the United States should now concentrate their efforts
and persuasion abilities on the Greek Cypriots and on Athens to bring
about a settlement.

He said that the United States wanted to see a settlement on the
island this year, but the minister was not that optimistic.

Visit to the United States

Gonensay said his visit to the United States, scheduled for May 19, is
primarily aimed at explaining the Turkish position regarding problems
in bilateral ties with Greece. Gonensay said that since President
Suleyman Demirel's visit to the United States, the Greek prime
minister and the president had both made separate visits to Washington
to explain the Greek viewpoint. Thus he considered now to be an
appropriate time to travel to Washington and explain once again the
Turkish position.

He said he will be meeting with Defense Secretary William Perry, as
well as Secretary of State Warren Christopher and National Security
Advisor Anthony Lake at the White House.

He said that besides Turkish-Greek problems, several other issues will
be on the talk's agenda, in particular, Operation Provide Comfort and
Cyprus.

MIT undersecretary to stay

Answering a question about the new ambassadors decree, Gonensay said
the list was prepared in consultation with President Suleyman Demirel,
Prime Minister Mesut Yilmaz and True Path Party leader Tansu Ciller,
and it is now with Yilmaz for approval. He said that Yilmaz will talk
with Ciller once again and then the approved list will be sent to the
Foreign Ministry.

Although refusing to disclose the names on the list, Gonensay said,
"In order to end some controversies, I can tell you that the Foreign
Ministry undersecretary is not changing. Nor are we changing the
undersecretary of MIT (the national intelligence organization). Their
names are not on the list."

The TDN has learned that an ambassadorial decree that would appoint
twenty ambassadors to various posts has been prepared and is waiting
for the approval by the prime minister. However, ambassadorial posts
to France, the United States and NATO will remain untouched, according
to ministry rumors.

(TDN, 14.05.1996, page 1)

Iran - Central Asia rail link opened

Legend: 'An historic legend comes to life, the Silk Road was not only
about a route but was about the coming together of various nations,'
says Demirel

Turkish Daily News

TEHRAN- Iranian President Hashemi Rafsanjani on Monday inaugurated a
new rail link between Iran and Central Asia which he said revived the
old Silk Road as a symbol of East-West relations.

The Iranian president and 11 heads of state later flew to Sarakhs, on
the border with Turkmenistan. Other dignitaries and officials boarded
the train, dubbed "Pride," making its first journey from Mashhad to
Sarakhs.

"The Silk Road railway ... shortens the great distance between Chinese
ports and the Persian Gulf, is the bridge for the region and the world
and is a clear example of Iran's priority on regional cooperation,"
Rafsanjani said in a ceremony in Sarakhs, broadcast live on Iranian
television.

Turkish President Suleyman Demirel, who attended the meeting, was
quoted by the Anatolia news agency as saying that the route would be
tied to Turkey.

"This will eventually be tied to Turkey, thus linking Turkey with
Central Asia," Demirel said after his meeting with Georgian President
Eduard Shevardnadze.

But the Turkish president fervently praised the project, saying: "An
historic legend comes to life, the Silk Road was not only about a
route but was about the coming together of various nations."

"It is not only a railway being inaugurated today, but continents and
peoples of various continents are being connected," Demirel said.

The heads of state were to go later to Tedzhen in Turkmenistan.

The Mashhad-Sarakhs-Tedzhen railway opens up new trade routes between
regions which under Soviet communism were hermetically sealed, joining
Iran's Gulf ports to the former Soviet hinterland.

Iran and Turkmenistan agreed in 1991 to tie their rail networks. Iran
self-financed the $171 million, 165 kilometer (100 mile)
Mashhad-Sarakhs stretch, which it completed in 42 months.

Turkmenistan's Sarakhs-Tedzhen link, running for 130 kilometers (80
miles), was finished late last year at a cost of $45 million.

Transport capacity initially will be 500,000 passengers a year and 2
million metric tons of goods, rising eventually to 1 million
passengers and 8 million tons.

Iran, subject to a U.S. economic embargo, is hailing the railway as
the first concrete achievement in a strategy to build its role as a
regional economic power.

It has shrugged off the sanctions and is seeking to build its role as
a regional player through the Economic Cooperation Organization --
known as ECO.

ECO was founded by Iran, Pakistan and Turkey and later expanded in
1992 to include the five former Soviet Central Asian states --
Uzbekistan, Kazakhstan, Tajikistan, Turkmenistan and Kyrgyzstan --
plus Azerbaijan and Afghanistan.

Heads of state will hold ECO's fourth summit on Tuesday and Wednesday
in the Turkmen capital Ashkabad and are expected to agree to a
redrafting of the ECO founding treaty already hammered out by foreign
ministers. At the same meeting, Turkey will take over for four years
the permanent secretariat of the organization.

ECO foreign ministers said on Saturday the group was not yet fit to
compete with Asian, American and European blocs. Iran called for
tariffs to be scrapped outright.

(TDN, 14.05.1996, page 1)

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WITH THE COMPLIMENT OF
DIRECTORATE GENERAL OF PRESS AND INFORMATION

TURKISH PRESS REVIEW
MAY 14, 1996


Summary of the political and economic news in the Turkish

press this morning.

SILK ROAD REVIVES

Iranian President Hashemi Rafsanjani yesterday inaugurated a


new rail link between Iran and Central Asia which he said
revived the old Silk Road as a symbol of East-West relations.
The Iranian president and 11 heads of state later flew to
Sarakhs, on the border with Turkmenistan. Other dignitaries

and officials boarded the train, dubbed "Pride", making its


first journey from Mashhad to Sarakhs.

Turkish President Suleyman Demirel, who attended the meeting,
said that the route would be tied to Turkey, thus linking
Turkey with Central Asia. "It is not only a railway being


inaugurated today, but continents and peoples of various

continents are being connected" Demirel added. The heads of


state were to go later to Tedzhen in Turkmenistan. The

Mashhad-Sarakhs-Tedzhen railway link has cost $116 million.


Transport capacity initially will be 500,000 passengers a year
and 2 million metric tons of goods, rising eventually to 1

million passengers and 8 million tons. Demirel had bilateral
contacts with Rafsanjani and other guest presidents. During
the Demirel-Rafsanjani meeting, PKK terror, Turkey's military
cooperation agreement with Israel and regional issues were
discussed. It is reported that Demirel requested Rafsanjani
not to neglect PKK activities in Iranian territory.

Heads of state will hold the Economic Cooperation Organization
(ECO)'s fourth summit on Tuesday and Wednesday in the Turkmen


capital Ashkabad and are expected to agree to a redrafting of

the ECO founding treaty hammered out by foreign ministers. At


the same meeting, Turkey will take over for four years the

permanent secretariat of the organization. ECO was founded by


Iran, Pakistan and Turkey and later expanded in 1992 to include

the five former Soviet Central Asian states -Uzbekistan,
Kazakhstan, Tajikistan, Turkmenistan and Kyrgyzstan- plus
Azerbaijan and Afghanistan. /Hurriyet-Sabah/


IMF DELEGATION ARRIVES IN TURKEY

The Turkish government is trying to persuade the IMF to agree
to a new stand-by credit agreement. Giving details about the
stability measures planned by the government that include tax
amendments and steps towards privatization, economy bureaucrats
will try to win the trust of the IMF delegation arriving
tomorrow in Turkey. During a recent US visit of a Turkish
delegation headed by State Minister Ufuk Soylemez, IMF
officials gave no guarantees for a new agreement and expressed
their suspicions about whether or not the Yilmaz government
would succeed in the implementation of hard economic measures.

The IMF cancelled a previous stand-by agreement as a result of
the negative economic results after the then DYP-CHP coalition
government used resources for election investments and made
concessions on stability measures on the eve of the December 24
elections. /Cumhuriyet/


NO TURKISH ARMS FOR BOSNIA

Government officials deny that Turkey supplied arms or military
equipments to Bosnia-Herzegovina during the 3.5-year long
Bosnian war. Turkish President Suleyman Demirel will visit
Bosnia in June and Prime Minister Mesut Yilmaz will visit on
May 24.

Turkish Foreign Ministry Deputy Spokesman Ambassador Nurettin
Nurkan, in a press conference yesterday, said that Turkey did
not supply arms to Bosnia during the war.

Reminding his listeners that a military training agreement
between Turkey and Bosnia-Herzegovina for training Bosnian
forces was signed after the Dayton Agreement, Ambassador Nurkan
said that Turkey had done this within the framework of
international efforts to strengthen the Bosnian army.
/Cumhuriyet/


ISEDAK OBSERVING COMMITTEE HOLDS TWELFTH MEETING

The 12th ISEDAK (Permanent Committee of Economic and Trade
Cooperation of the Islamic Conference Organization) Observing
Committee, organized by the State Planning Office Foreign
Economic Relations General Directorate, held a three day
ministerial level meeting in Istanbul that concluded yesterday.
A total of 63 representatives of various international
organizations from 11 countries attended the meeting. Lead by
Turkey, the Observing Committee is made up of Saudi Arabia,
Palestine, Kuwait, Indonesia, Uganda, Morocco, Pakistan, Egypt,
Iran and Cameroon. The main concepts of the meeting which were
agreed upon were announced in a report. The report provides
for the establishment of an Islamic Nations Standards and
Measurements Organization, coordinated by the Turkish Standards
Institute, which will be unveiled at the next ISEDAK meeting.
The meeting discussed new measures for the Economic Cooperation
Activity Plan to be put in place.

The report noted that the third Islamic Nations Private Sectors
Meeting will be held between 21 and 23 October, 1996, in
Jakarta together with the 6th Islamic Trade Fair. The report
also noted that preparations for the meetings on subjects like
privatization practices of the member countries and many other
alternative subjects were completed during the meeting and
added that one of the organization's aims was to make ISEDAK a
forum at which global and regional economic problems could be
discussed. /All papers/


STATE MINISTER AYKUT RECEIVES DANISH MAYOR BRIXFORTE

State Minister Imren Aykut, during a recent meeting with Peter
Brixforte, Mayor of Farum, Denmark, noted that Turkish families
living in foreign countries find it difficult to give
sufficient care to their children's education due to the
difficulties they face in their working lives. The minister
pointed out that Turks living in Denmark face fewer problems
and thanked Denmark for its concern for the education of
foreign students. Aykut said: "When families living in
foreign countries cannot integrate into their new society they
have to face unemployment, which in turn results in the child's
failure to adapt to his environment. These children often end
up joining illegal organizations. This is particularly true
for Turkish families in Germany. However, the government of
Germany is negligent about the issue". Mayor Brixforte pointed
out that Danish schools place great importance on the education
of all children. /All papers/


CONFERENCE ON PIPELINE PROJECTS

The Adam Smith Institute is holding a conference on the Central
Asian pipeline projects that will carry petrol and natural gas
from the Central Asian republics to world markets.

The two-day conference will begin today in Istanbul and and
will examine the projects from an economic standpoint
-especially in connection with the central Asian republics.
Turkey will be represented along with Turkmenistan, Azerbaijan,
Russia and Kazakhstan. Issues involving the status of these
countries and geopolitical matters will also be taken up.
/Sabah/


KING HUSSEIN TO VISIT ANKARA

King Hussein of Jordan will be in Ankara tomorrow to discuss
Middle East issues -especially the signing of military
cooperation agreements between Turkey and Israel. Officials
say that one of the matters that will be given first importance
is a regional defence pact.

The one day working visit of King Hussein to Ankara reflects
the importance being given to regional developments. King
Hussein says that he wants to preserve and develop close and
friendly ties with other countries in the region. While in
Ankara King Hussein will have talks with President Suleyman
Demirel. /Cumhuriyet/


TU RKEY NOT WITHOLDING WATER FROM IRAQ

According to American professor Joseph Delapenna, Turkey is
giving the right amount to water to Iraq. During a talk
yesterday at the Turkish-American Association (TAA), Delappena
said that Turkey was keeping to its promises regarding the
amount of water being allowed to flow from Turkey into Iraq.

Noting that Iraq was one of the world's worst users of water,
the professor from Villanova University said that Iraq had no
right according to international law to demand more water
supplies from Turkey. Delapenna said that the worsening
problem over water supplies in the region would be best solved
by applying the logical use of water principle in talks to deal
with the issue. /Cumhuriyet/


TURKISH BUSINESSMEN IN VIENNA

Turkish businessmen in Vienna have organized themselves under
the name of the Austria Turkish Businessmen's and
Industrialists' Foundation (ATIS) and launched the body at a
ceremony held on May 13. Turkish Foreign Trade Foundation
Chairman Ertugrul Onen and European Turkish Businessmen and
Industrialists Foundation (ATIAD) Chairman Kemal Sahin attended
the ceremony. Sahin said during his speech that ATIS was a
member of ATIAD and emphasized that they were trying hard to
gather all Turkish businessmen in various European countries
under the ATIAD roof. ATIS Chairman Sadik Ozgul said that
Turkish businessmen in Austria now have a powerful and strong
organization. /All papers/


TURKEY LAUNCHES EUROBOND ISSUE

The Turkish Treasury launched yesterday a 30-billion-yen six
year Eurobond issue under a $1.5 billion medium term note (MTN)
programme. Officials said that the six-year Eurobonds, with a
coupon of 6 %, were underwritten by Yamaichi. With the issue,
Turkey completed the MTN programme set up last year. Turkey
has also mandated J.P.Morgan and UBS for a three-year
Eurodollar issue worth some $300 to $500 million, officials
said. /All papers/


THAMES VALLEY MISSION TO SEEK FRESH DEALS IN TURKEY

Representatives of six British companies will participate in a
trade mission to Turkey from May 12-17 organized by the Thames
Valley Group Chamber of Commerce and Industry and sponsored by
the Overseas Trade Services of the British Department of Trade
and Industry. Members of the Thames Valley Group Chamber form
an important and successful business community in Berkshire,
Buckinghamshire Surrey, Oxfordshire and the Heathrow Airport
area in the south of England, thanks to the area's excellent
business and communications facilities and close proximity to
London Heathrow Airport. /All papers/

MAY 13, 1996


Summary of the political and economic news in the Turkish

press this morning.


FULL SCHEDULE FOR PRESIDENT DEMIREL

President Demirel, concluding his official visit to
Uzbekistan, has journeyed on to Iran and Turkmenistan. During
his visits to these countries, Demirel will be taking up a
number of matters that are of vital concern to Turkey.

Yesterday, while going to Iran for the opening ceremony of a
new rail connection between Iran and Turkmenistan, Demirel
spoke about a number of regional issues including the
importance of the Baku-Ceyhan natural gas and oil pipelines to
Turkey. He noted however, that although lots of agreements
were being signed, the petrol was still in the ground.

Although there are many pipeline projects for the region,
Demirel noted that most of them were only temporary or anyway
part of the major Baku-Ceyhan project. Today, Demirel will
hold more talks with Iranian President Rafsancani. One of the
matters that will most certainly occupy the two leaders will
be the military training and cooperation agreement signed
between Turkey and Israel. /Cumhuriyet-Sabah/


YILMAZ: "EMERGENCY RULE MUST BE LIFTED BY JULY"

Prime Minister Mesut Yilmaz told German weekly Der Spiegel
that the emergency rule in Southeast Anatolia should be lifted
by the end of June. Yilmaz told Der Spiegel that he was
against "the emergency rule", a term that means special
security and legal measures for several Turkish provinces in
the Southeast where the outlawed Kurdistan Workers' Party
(PKK) has waged a separatist war since 1984. The prime
minister said he favoured a strengthening of the local
administrations and launching of cultural reform. But he
indicated that even if the emergency rule is lifted by the end
of June, security measures might remain in "some areas near
the Iraqi and Iranian borders" -a thinly veiled reference to
the Turkish concern that the PKK had bases in those countries.

Yilmaz's interview with Der Spiegel came before his visit to
Germany scheduled for May 16-18. The Turkish prime minister
told Der Spiegel that regional issues will also be discussed.
/All papers/


HABITAT WILL BE A MEETING OF UNIONS

Istanbul, caught up in the preparations for the very close
huge Habitat II conference on world housing and related
issues, will also host a gathering of world labour union
leaders. The union representatives will debate social issues
and the role of the state.

Representatives from South Africa, Britain, Germany, Spain,
France, Mexico, the US and many Latin and Asian countries will
attend the meeting which will fuse into the Habitat II
framework. /Milliyet/


BIG FINANCE FAIR IN AUTUMN

Turkey will be participating in the world's biggest finance
fair in Vienna on October 10-13. The Turkish banking and
finance sectors will be represented at the Gewinn Messe fair
along with the international giants of the financial world.
/Hurriyet/


TURKISH FRIGATE OFF TO ADRIATIC

The TCG Kocatepe has sailed from the naval base in Golcuk to
take part in Peace Implementation Force (IFOR) exercises in
the Adriatic Sea, which are being carried out by the NATO
Mediterranean Permanent Naval Forces due to the
Bosnia-Herzegovina crisis. The TCG Kocatepe 252 frigate will,
with its 300 member crew, be on duty in the Adriatic Sea
within this framework of the UN resolution and under the
command of NATO until August 13. /All papers/


KING HUSSEIN OF JORDAN TO VISIT TURKEY

King Hussein of Jordan will pay a working visit to Turkey on
Thursday, at a time when Egypt, Israel, Jordan and the US are
discussing ways to forge strategical cooperation between these
countries. The king participated in a summit in Cairo on
Sunday with Egyptian President Hosni Mubarak and Palestinian
President Yasser Arafat. The summit comes soon after US
Secretary of State Warren Christopher and his Israeli
counterpart Ehud Barak discusssed a new defence agreement
between the two countries last week in Washington. /All
papers/


TURKEY'S AUTOMOTIVE EXPORTS SOAR 67 % IN JANUARY-APRIL

Exports by Turkish motor vehicle and parts producers rose 67 %
in January-April 1996 to $486.9 million from $291.8 million in


the same 1995 period, the Association of Turkish Automotive

Industries (OSD) said in a statement. Exports of motor
vehicles made up $211.5 million of the total amount, up 239 %


from January-April 1995. Automotive parts exports increased

only 20 % to $275.4 million over the same period, the OSD
said. Bus exports boomed 675 % to $64.1 million in the first


months of 1996 from previous $8.3 million while car exports

leapt 217 % to $128.6 million from $40.6 million in the first
four months of last year. The OSD said tractor producers
began exporting to Mexico and the US for the first time.
Buses were exported to Europe, Russia and the Central Asian
Republics, it added. /All papers/


TAIWANESE MISSION TO SEEK NEW TURKISH DEALS

A Taiwanese trade group, composed of executives from 46 top
companies, will visit Istanbul between May 20-21 on a business
promotion trip, a Taiwanese official has said. The executives
will be trying to market their products, find Turkish trade
and investment partners, Wilton T.Hung, director of the Taiwan
Trade Centre, told reporters Thursday evening in Istanbul.
Hung said the mission will also visit Athens, Barcelona,
Madrid and Porto to explore business opportunities in southern
Europe. "Turkey's influence, as a regional power, has grown
since the breakup of the Soviet Union and its entrance into a
customs union with the EU" Hung declared. The participants
will include manufacturers of cosmetics, non-stick pans,
stickers, pipes and fittings, personal care accessories,
computers and peripheral equipment, clothing and textiles,
cutlery, roller blades and other sporting goods. /Milliyet/


IRAQ PROTESTS TO TURKEY OVER CROSS-BORDER OPERATIONS

Iraq protested to Turkey yesterday over the cross-border
operations of the Turkish Armed Forces into northern Iraq last
week. Ankara describes its thrust into the neighbouring
country as "a very limited operation" in which Turkey used its
right of hot pursuit against the militants of the outlawed
Kurdistan Workers' Party ()KK), who escape into northern Iraq
after attacks in Turkish territory. Sadi Calislar, Turkey's
charge d'affaires in Baghdad, was summoned to the Iraqi
Foreign Ministry to be given a memorandum in which Iraq urged
Turkish troops to withdraw from Iraqi territory. However,
Ankara said that the armed forces in northern Iraq returned on
May 9.

"We have serious concerns over our security at our border with
northern Iraq. Turkey's use of its right of hot pursuit
should be considered normal" Foreign Ministry Deputy Spokesman
Nurettin Nurkan said in a press conference last Wednesday.
/Hurriyet/


SOUTH KOREA AND TURKEY DECIDE TO BOOST TRADE

Turkey and South Korea declared on Friday that their intention
to boost bilateral trade during the visit of South Korean
Prime Minister Lee Soo-Sung. "It is important to enhance
trade and mutual investments between the two countries" Yalim
Eralp, a prime ministerial aide said. He said that the talks
between the two countries had addressed the question of
launching flights between Istanbul and Seoul. Lee promised
that he would do his best to enable the flights to start
before the end of the year. He said that South Korea also
wanted to buy electronic devices from Turkey for their own
F-16 fighter jets. Turkish Prime Minister Mesut Yilmaz and
his South Korean counterpart Lee Soo-Sung said that the
Turco-South Korean business council should be activated. The
sixth meeting of the business council, which met in Ankara
during Soo-Sung's visit, also urged more South Korean business
in Turkey.

After his contacts in Ankara, Soo-Sung went to Istanbul and
visited historical and touristic sites there. /Cumhuriyet/


SWISS SUPPORT FOR SOUTHEASTERN TURKEY

The Swiss Organization for Development and Cooperation has
extended to Turkey aid worth five million francs to encourage
agricultural production. The Swiss organization, preparing
and implementing projects jointly with the Turkey Development
Foundation, has sent a delegation to southeastern Turkey to
research ways for increasing agricultural production there.
/Milliyet/


NUROL TO CONSTRUCT HOTEL IN BOSNIA

Nurol Insaat will construct the first hotel in Bosnia, now
lying in ruins after the war. With a $40 million investment,
the company will reconstruct a dormitory and turn it into a
1600-bed hotel. Oguz Carmikli, one of Nurol Holding's
managers, who will join Prime Minister Mesut Yilmaz during his
forthcoming visit to Bosnia-Herzegovina, will meet Bosnian
President Alia Izzetbegovic and other high-level officials.
/Sabah/


TURKEY ADVISES GREECE 'REALISM' IN RELATIONS

Turkey urged Greece on Saturday to act realistically and
display a more responsible attitude in its relations with
Ankara. Responding to a question, Foreign Ministry Spokesman
Omer Akbel said Turkey was evaluating the Bucharest meeting
between Turkish foreign minister Emre Gonensay and his Greek
counterpart Theodoros Pangalos, as marking the beginning of a


process of improved relations based on common sense and
rapprochement. The spokesman added that it was natural that
during the current sensitive phase, the two sides should act
with utmost caution.

However, Akbel said, it was impossible to justify the recent
hostile and anti-Turkish remarks of Pangalos. The spokesman,


meanwhile, hinted that the anti-Turkish and hostile statements
of the Greek foreign minister might be intensified because of
the forthcoming convention of the Pan-Hellenic Socialist

Movement (PASOK). Akbel said bilateral relations between the
two countries should not fall victim to domestic political


considerations in Greece and called on Athens to adopt a
constructive policy based on realism in its ties with Ankara.

/All papers/
[end]

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