Anadolu Agency: News in English, 99-09-10

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AA Daily

10 Sept 1999 Friday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] PRESIDENT DENKTAS OF THE TRNC MEETS WITH ANNAN, SECRETARY GENERAL OF THE UNITED NATIONS

[03] PRODUCTION IN AUTOMOTIVE SECTOR

[04] SECURITIES ACCOUNT AT BANKS INCREASE BY 4.3 QUADRILLION TL

[05] BANK CREDITS VOLUME INCREASES TO 16.5 QUADRILLION TL

[06] TOTAL DEPOSITS AT BANKS REACH 33.2 QUADRILLION TL

[07] U.S. REPORT ON ''RELIGIOUS BELIEFS IN THE WORLD ''NOBODY IS ARRESTED FOR HIS/HER RELIGIOUS BELIEFS IN TURKEY'' - ''THERE IS ISLAMIC-STYLE HEADSCARF PROBLEM IN TURKEY''

[08] IMF EXAMINES TURKISH BANKING SYSTEM

[09] REPO TRANSACTIONS BETWEEN BANKS AND THEIR CUSTOMERS INCREASE BY 1.9 QUADRILLION TL

[10] DENKTAS-ANNAN MEETING - U.N. SECRETARY GENERAL: ''DENKTAS WANTS RECOGNITION''

[11] IMF DELEGATION IN PRIVATIZATION ADMINISTRATION - COTTARELLI, CHIEF OF IMF TURKEY DESK, SAYS HE DOES NOT THINK PRIVATIZATION PROGRAMMES OF TURKEY WILL BE DELAYED DUE TO QUAKE

[12] OECD RESEARCH: ''TURKEY IS THE COUNTRY WHICH HAS THE HIGHEST SUBSIDY IN THE AGRICULTURAL SECTOR''

[13] FOREIGN MINISTER CEM ARRIVES IN YALTA - CEM TO COME TOGETHER WITH PRESIDENT ALIYEV OF AZERBAIJAN AND PRESIDENT SHEVARDNADZE OF GEORGIA

[14] IMF DELEGATION IN PRIVATIZATION ADMINISTRATION - BAYAR, CHAIRMAN OF PRIVATIZATION ADMINISTRATION: - ''THE SUPPLY OF TUPRAS TO THE PEOPLE WILL CONTINUE IN THE FIRST QUARTER OF 2000''

[15] RUSSIAN DELEGATION IN SOUTHEASTERN GAZIANTEP PROVINCE - LEBEDEV, RUSSIAN AMBASSADOR TO ANKARA: ''THERE IS A FUNDAMENTALIST TERRORISM IN CAUCASUS WHICH WE TRY TO PREVENT IT FROM SPREADING OUTSIDE THE REGION''

[16] EU FOREIGN MINISTERS WAIT FOR CEM - EU TERM PRECIDENCY: ''IT IS A SIGNIFICANT DEVELOPMENT''

[17] IMF DELEGATION MEETS OFFICIALS FROM CENTRAL BANK

[18] FOREIGN AID TO DISASTER ZONE - NUMBER OF PLANES CARRYING AID AND FIRE EXTINGUISHER EQUIPMENT TO TURKEY REACHES 350

[19] OFFICE OF GENERAL STAFF: - ''GENERAL STAFF CANNOT ACCEPT TERRORIST ORGANIZATION PKK AS AN INTERLOCUTOR''

[20] TURKEY OFFICIALLY APPLIES TO EUROPEAN SOCIAL AND DEVELOPMENT FUND FOR ASSISTANCE

[21] TURKEY-CROATIA JOINT ECONOMIC COMMISSION MEETING TO BE HELD IN ZAGREB BETWEEN SEPTEMBER 13-15

[22] ''TURKEY FESTIVAL'' IN THE HAGUE

[23] IMF DELEGATION IN PRIVATIZATION ADMINISTRATION - BAYAR, CHAIRMAN OF PRIVATIZATION ADMINISTRATION: - ''I BELIEVE THAT THE SELLING OF SHARES OF TUPRAS TO PEOPLE WILL BE SUCCESSFULLY DONE''

[24] SEEBRIG CENTRAL HEADQUARTERS TO BE OPENED ON SATURDAY

[25] TURKISH-GREEK FRIENDSHIP - FM: ''MEETINGS WERE HELD IN A FRIENDLY AND WORKING ATMOSPHERE''

[26] COUNCIL OF MINISTERS MEETING ENDS

[27] COUNCIL OF MINISTERS MEETING ENDS - PREMIER ECEVIT SAYS STATEMENT ABOUT CABINET DECISIONS TO BE ISSUED ON SATURDAY

[28] COUNCIL OF MINISTERS MEETING ENDS - RENT AID TO BE GIVEN TO QUAKE VICTIMS DETERMINED AS 100 MILLION LIRAS

[29] COUNCIL OF MINISTERS MEETING ENDS - AYDIN, MINISTER OF PUBLIC WORKS AND HOUSING: ''WE'LL CONSTRUCT TEMPORARY AND PERMANENT BUILDINGS IN DISASTER AREAS''

[30] PRIME MINISTRY CRISIS ADMINISTRATION CENTER: ''37,4 BILLION LIRAS HAVE BEEN COLLECTED IN ACCOUNT OF ZIRAAT BANK TILL TODAY''

[31] UNICEF DONATES 208,000 DOLLARS OF AID EQUIPMENT TO MINISTRY OF TREASURY

[32] TREASURY PLANS TO PROVIDE 2,5-3 BILLION DOLLARS FROM COUNTRIES AND INTERNATIONAL INSTITUTIONS DUE TO QUAKE DISASTER

[33] TURKEY AND KAZAKHSTAN SIGN FIRST TERM JEC PROTOCOL IN ANKARA

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

TREMOR SHOCK IN GOKCEADA
Majority of the Aegean and Thrace was shaken by two earthquakes happened yesterday. The earthquakes measuring 4.5 and 4.9 on the Richter scale caused panic among people living in Canakkale, Balikesir, and Edirne. Officials said the epicenter of the quakes was off-shore Gokceada.

U.S. REPORT: ''TURKISH LEADERS ARE MEMBERS OF TARIQA''
The U.S. State Department, in its ''Religion Report'' which was issued for the first time, said that some political and social leaders in Turkey have connections with the sects. However, the report did not name those leaders.

MILLIYET (LIBERAL)

The AKUT team says, ''it is a nice gesture that they gave the most difficult debris to us. This shows that they appreciate and recognize the importance of us, and they trust in our efforts. The Greek people like us very much. On our way to the hotel to have a rest, they stopped our car, shook our hands. We respond to the friendship with friendship. The relations between the civilians are much more better. This is a message to politicians.''

NOW WATER SCANDAL
The Omerli Dam which supplies tha water demand in almost the whole Anatolian and the European sides of Istanbul turned into Halic with its pollution. The Pasakoy stream flows to the dam after collecting the wastes of Sultanbeyli, Samandira, Pasakoy, Emirli, and Kurtkoy districts.

The Haydarpasa Numune Hospital doctors who examined the water, stressed that the pollution in the dam may create epidemic.

SABAH (LIBERAL)

According to the observations of the IMF and World Bank delegations, the cost of the damages caused by the quake was six billion U.S. dollars.

SUPPORT FROM CANADA
Artegg Leton, the Canadian Defense Minister, visited the field hospital, water purification facility and the tent-city set up by the Canadian Army in Adapazari. The guest minister said, ''I hope the grief will be overcome in the shortest time.''

CUMHURIYET (LEFT)

S&amp;P PESSIMISTIC

Standard and Poor's (S&amp;P), an international rating organization, said that the cost of the earthquake was very high, adding the growth of Turkey would be between minus 1 or 4.

RADIKAL (LEFT)

The government has still not brought on the agenda the request of IMF saying, ''make a collective agreement again with the Turk-Is, lift the five percent welfare share.''

TÜRKİYE (RIGHT)

23 TERRORISTS KILLED
Security forces killed 23 terrorists and rendered ineffective seven others in the operations they launched in the southeast.

ZAMAN (CONSERVATIVE)

FOUR BILLION DOLLARS VISIT
The financial and commercial issues became the most urgent issues of the visit of the Prime Minister to the U.S. after the earthquake disaster. It is in question that our military borrowings can be settled in this visit. Also the 3 billion U.S. dollars loan of the IMF and the 1 billion U.S. dollars loan of the World Bank are expected to be transferred to Turkey during this visit.

[02] PRESIDENT DENKTAS OF THE TRNC MEETS WITH ANNAN, SECRETARY GENERAL OF THE UNITED NATIONS

Responding to questions of journalists following the meeting which lasted for 45 minutes, President Denktas said, ''I told Mr. Annan that we will not accept any negotiations with Glafcos Clerides, the leader of the Greek Cypriot side administration, which will be held within the framework of the former intercommunal formula that does not recognize the TRNC as a separate state.

Without recognition of my presidency and status of the TRNC state, it is impossible to hold negotiations between leaders of the two communities on the island. We will not be tricked once again.''

Stressing that it was the Greek Cypriot side which had destroyed the intercommunal negotiations, President Denktas told reporters, ''Mr. Annan told me that he would think about the issue. He also said that other sides cannot put forward any plans regarded with the Cyprus question as long as his good-will mission continues.''

Greek Cypriot sources had earlier claimed that the U.S. prepared a plan to solve the Cyprus question.

Denktas emphasized, ''before any negotation process, it should be confirmed clearly that the Greek Cypriots are not government of the Turkish Cypriots. We are ready for the negotiations. We do not escape from negotiations. But these negotiations cannot be held within the framework of the former intercommunal negotiations. The former method will give opportunity to Greek Cypriots to be sovereign on the island. We will not play the same old game once again.''

[03] PRODUCTION IN AUTOMOTIVE SECTOR

According to the Auromotive Industry Association (OSD) data, the motor vehicle production in August was 14,331, and the total motor vehicle production was 196,858 between January and August.

In August 1998, a total of 21,912 motor vehicles were produced, and the total production in the first eight months of 1998 was 268,925.

The production of automobiles reduced 28 percent to 8,125 eaches in August 1999. The number of automobiles produced in August 1998 was 11,279.

The automobile production in the January-August 1999 period decreased 19 percent to 129,021 pieces. In the same period last year, the production was 159,992 pieces.

The differences of production of motor vehicles in the first eight months of 1998 and 1999 are as follows:

Difference

(percent)

Lorry -43

Bus -27

Van -19

Minibus -1

Midibus 3

According to the OSD statistics, the imports of automobiles decreased 4 percent to 68,380 pieces between January and August 1999. The total imports in the same period last year was 70,954 pieces.

The imports of automobiles from the Far Eastern countries reduced 9 percent while the imports of automobiles from the former Eastern Block countries increased 224 percent in the first eight months of 1999.

The sales of automobiles decreased 22 percent to 157,716 pieces.

A total of 89,336 domestic and 68,380 imported automobiles were sold in this period. The sales of domestic automobiles were 131,752 pieces, and the sales of imported automobiles were 70,954 pieces in the first eight months of 1998.

The sales of imported automobiles increased 4 percent while the sales of domestic automobiles decreased 32 percent, and the market share of the imported automobiles became 43 percent.

[04] SECURITIES ACCOUNT AT BANKS INCREASE BY 4.3 QUADRILLION TL

The total securities account at banks, which was 4 quadrillion 576.8 trillion TL at the end of last year, increased 4 quadrillion 274.1 trillion TL to 8 quadrillion 850.9 trillion TL on August 27.

The Central Bank data shows that there were a total of 8 quadrillion 747.9 trillion TL of securities, including 6 quadrillion 199.5 trillion TL of securities, and 2 quadrillion 548.4 trillion TL of securities over foreign currency at the deposit banks portfolio.

The securities over TL at deposit banks are composed of 1 quadrillion 669.8 trillion TL in trasury bonds, 4 quadrillion 265.7 trillion TL in state debenture bonds and 192.6 trillion TL in stocks.

A total of 784.7 trillion TL of foreign currency securities at these banks are abroad while there is a total of 35.6 trillion TL of treasury bonds and 1 quadrillion 497.5 trillion TL of state debenture bonds among the domestic securities.

The total securities account at the development and investment banks was 103 trillion TL.

[05] BANK CREDITS VOLUME INCREASES TO 16.5 QUADRILLION TL

The total credit volume at banks was 12 quadrillion 399.2 trillion TL at the end of 1998.

The Central Bank data shows that the total credits in the system was composed of 792.3 trillion TL of loans given to financial sector and 15 quadrillion 696.1 trillion TL of loans given to non-financial sector as of August 27.

The credits given to financial sector were composed of 438.6 trillion TL of loans given by deposit banks, 346 trillion TL of loans given by development and investment banks and 7.7 trillion TL of loans given by the Central Bank.

[06] TOTAL DEPOSITS AT BANKS REACH 33.2 QUADRILLION TL

The Central Bank data shows that the total deposit which was 20 quadrillion 773.4 trillion at the end of 1998 increased to 33 quadrillion 181.4 trillion TL as of August 27, 1999.

When the inter-banks deposits are not considered, the total deposit, which was 19 quadrillion 448.8 trillion TL on December 25, 1998, increased 10 quadrillion 884.5 trillion TL to 30 quadrillion 333.3 trillion TL on August 27, 1999.
The total TL deposit increased 6 quadrillion 330.4 trillion TL to 16 quadrillion 723.7 trillion TL on August 27, 1999. The total TL deposit was 10 quadrillion 393.3 trillion on December 25, 1998.

As of August 27, 1999, the total TL deposit was composed of 10 quadrillion 913 trillion TL deposits at public banks, 5 quadrillion 533.9 trillion TL of deposits at private deposit banks and 59.6 trillion TL of deposits at foreign banks.

The foreign exchange accounts at banks increased 4 quadrillion 554 trillion TL to 13 quadrillion 609.6 trillion TL on August 27, 1999.

[07] U.S. REPORT ON ''RELIGIOUS BELIEFS IN THE WORLD ''NOBODY IS ARRESTED FOR HIS/HER RELIGIOUS BELIEFS IN TURKEY'' - ''THERE IS ISLAMIC-STYLE HEADSCARF PROBLEM IN TURKEY''

The issue of religious beliefs in 194 countries were evaluated in the report which covers the January 1998-June 1999 period.

The report stressed that nobody in Turkey is arrested for his/her religious beliefs and put into prison, and the Jewish and Christian communities in Turkey can freely perform their religious duties.

The report said that the U.S. diplomatic representations, and religious minorities have close relations with their institutions.

The report said that in accordance with the Lausanne Treaty, the Turkish government doesn't accept the ecumenical characteristic of the Orthodox Patriarchate in Fener, Istanbul but it does not prevent the activities of the patriarchate. The report said that new clerics cannot be ordained as the Patriarchate's request for re-opening the clergy school in Heybeliada is not accepted.

Mentioning the fundamentalist activities and the measures taken in Turkey against those activities, the report pointed out the eight years of compulsory education and the ban on Islamic-style headscarf at universities and public organizations.

The report also mentioned the closure of the Welfare Party (RP), the situation of Merve Kavakci, who was elected as a Virtue Party (FP) deputy, the 10-month imprisonment sentence to Recep Tayyip Erdogan, the former Mayor of Istanbul, and the discussions on Islamic-style headscarf at the universities and public organizations.

The report, in its section about Greece, said that in accordance with an implementation started in 1990, the muftis of the Turkish minority started to be appointed by the Greek government, and this implementation created tension. The report said Mehmet Emin Aga, the Mufti of Xanthi who was elected by the Turkish minority, was imprisoned several times with charges of usurping that position.

The report stressed that there is a dispute between the Turkish minority and the Athens government concerning the operation of the Moslem Turkish minority's foundations in the Western Thrace, appointments made by the Greek government and the control of the Greek government. The report said that the members of the Turkish minority criticize the Greek government's taxing some foundations and seizing some foundation properties.

Noting that Turkey and Greece were foreseen to send 35 teachers for the minorities in their territories in accordance with an education protocol signed in 1935, but the Greek side decreased the number to 16 in recent years, the report emphasized that the Moslem minority in the Western Thrace, including mostly Turks generally live in difficult economic conditions.

The report added that the U.S. expends efforts for the improvement of religious freedoms in every part of the world.

[08] IMF EXAMINES TURKISH BANKING SYSTEM

According to the IMF's ''International Capital Market Report'', the Banking Law was a very important development for the Turkish banking system.

Recalling that the Turkish banking system faced an increasing fund and credit risk in 1998 and early 1999, the report said a recession was observed in the economy while the domestic interest rates were increasing, and especially the small-scale banks faced difficulties in reaching foreign sources.

Recalling the effects of the global crisis, the report said the Treasury's contented policy for high interest rates, the stability in the deposit banking and the successful management of the leading banks were the effective factors that enabled the Turkish banking system to stand against the global crisis.

The report stressed that the leading banks were able to renew the matured syndicated loans at a level higher than the expected despite the foreign liquidity pressure that was formed after the crisis in Russia.

According to the report, the developed and flexible risk administration and its relations with the international banks were the most important factors that enabled the Turkish banks to again purchase the syndicated loans.

According to the IMF, the increase in domestic borrowings does not create a serious concern for the investors in Turkey despite the high domestic interest rates and the existence of some concerns about the government's borrowing dynamics.

The report said the banks, which are the greatest customers of the Treasury, have the three-fourths of the total domestic borrowing denominated in Turkish Liras (TL).

The report said the guarantee, which is extended by the state for the deposit, gives the opportunity for the small banks and state banks to offer interest over the market.

Stressing that the Deposit Insurance Fund has been successful up until now, the report said despite the concerns about the sufficiency of the current source in the Deposit Insurance Fund, the Fund has successufully and softly intervened in those banks.

The report mentioned that the Turkish banking system does not have a concern about the maturity structure due to the repo transactions but the Open Position continues to create risks for banks despite the strict rules.

[09] REPO TRANSACTIONS BETWEEN BANKS AND THEIR CUSTOMERS INCREASE BY 1.9 QUADRILLION TL

The Central Bank data shows that the repo transactions, which were 2 quadrillion 254.7 trillion TL at the end of last year, increased to 4 quadrillion 186.1 trillion TL on August 27.

The reverse repo transactions, which were 37 trillion TL on December 25, 1998 rose 68.7 trillion TL to 105.7 trillion TL on August 27, 1999.

The repo transactions among the financial organizations climbed 793 trillion TL to 1 quadrillion 599 trillion TL on August 27. The total repo transactions amount was 806 trillion TL on December 25, 1998.

The reverse repo transactions among the financial organizations, which were 535.7 trillion TL at the end of last year, increased 574.8 trillion TL to 1 quadrillion 110.5 trillion TL on August 27.

[10] DENKTAS-ANNAN MEETING - U.N. SECRETARY GENERAL: ''DENKTAS WANTS RECOGNITION''

At a reception at his residence, Annan responded the questions of Turkish and Greek Cypriot journalists, and said they wanted to give the start for negotiations between the two sides on Cyprus which are not restricted to a specific frame.

Noting that all issues will be discussed at the negotiations, Annan said he had to comply with the resolutions accepted by the U.N. Security Council and the authority given to him by the Security Council.

Stating that the Cyprus issue will gain momentum in autumn, the U.N. Secretary General did not explain in detail what he meant.

When asked whether he would send letters of invitation to Denktas and Clerides in a way that the Security Council demanded, Annan said he has not sent letters to Denktas and Clerides yet.

The Greek Cypriot sources claim that Annan will send the letters in question in mid-October despite the opposition of Denktas.

The U.N. Security Council authorized Kofi Annan to invite Rauf Denktas and Glafcos Clerides in autumn to the bilateral negotiations at which every issue are discussed at the highest level.

The TRNC President, at their meeting yesterday, clearly told Kofi Annan that he won't attend the intercommunal negotiations which will be held upon the former formula without the recognition of the TRNC. Denktas stated that the negotiations can be held only ''from state to state''.

Meanwhile, a diplomatic source very close to the Secretary General, said that the U.N. does not have an intention to eliminate any possibility at this stage.

The high-level official, who declined to be identified, said, ''does Denktas want solution? Absolutely, he wants. So he will accept one of the proposals we will put forward.''

When asked when the proposals would be put forward, the official said, ''when they are ready.''

Speaking to reporters following his meeting with Kofi Annan, Rauf Denktas said that ''he won't attend the tete-a-tete meeting with Clerides which will be held under former conditions, but the shuttle diplomacy could be an alternative.''

Meanwhile, the U.N. issued a statement after the meeting between Denktas and Annan saying that the U.N. Secretary General hoped to take steps in autumn that will activate the Cyprus process, and the solution of the question could be found with negotiations.

[11] IMF DELEGATION IN PRIVATIZATION ADMINISTRATION - COTTARELLI, CHIEF OF IMF TURKEY DESK, SAYS HE DOES NOT THINK PRIVATIZATION PROGRAMMES OF TURKEY WILL BE DELAYED DUE TO QUAKE

Making a statement following his meeting with Ugur Bayar, the Chairman of the Privatization Administration, Cottarelli noted that they discussed Turkey's privatization programmes in their meeting.

Stressing that the privatization programmes of Turkey can be delayed due to the quake, Cottarelli stated that he does not think that the giant projects will be delayed or suspended.

Cottarelli added that the revenues gained from privatization carry importance for Turkey's economy.

Bayar said that a tender will be announced for the Petrol Ofisi in the fourth quarter of 1999 and the Turkish Petroleum Corp. (TUPRAS) will be put out to tender in the first quarter of 2000.

[12] OECD RESEARCH: ''TURKEY IS THE COUNTRY WHICH HAS THE HIGHEST SUBSIDY IN THE AGRICULTURAL SECTOR''

The research issued in the ''OECD Observer'' magazine indicated that more than eight percent of Turkey's Gross National Product (GNP) is allocated for supporting the agricultural sector.

The research indicated that the average public contribution to the agricultural sector among the OECD countries, decreased to 2.1 percent between 1996 and 1998.

The research also said that the state support to the agricultural sector in most of the OECD countries decreased in the mentioned period while it increased in Turkey and Poland.

[13] FOREIGN MINISTER CEM ARRIVES IN YALTA - CEM TO COME TOGETHER WITH PRESIDENT ALIYEV OF AZERBAIJAN AND PRESIDENT SHEVARDNADZE OF GEORGIA

President Suleyman Demirel had planned to attend the Summit earlier, but Cem was decided to represent President at the Baltic States-Black Sea Cooperation Summit due to quake disaster which devastated Marmara region on August 17.

Within the framework of the summit, Cem will hold bilateral talks with President Haydar Aliyev of Azerbaijan, and with President Eduard Shevardnadze of Georgia.

The meetings are expected to focus on the latest developments in the Caucasia, and on the bilateral relations.

Meanwhile, 12 regional countries, representatives of the Council of Europe, the Organization for Security and Cooperation in Europe (OSCE), the NATO, the European Union (EU) Commission, the Baltic Council, and the Central European Initiative will participate in the Summit where the issue of security in Europe will be discussed within the framework of the Baltic States and the Black Sea Cooperation.

The summit aims at strengthening roles of regional countries in further improvement of democracy, superiority of law, economic prosperity, and stability in Europe.

Political, economic, and humanitarian cooperations among the Baltic and Black Sea countries will also be taken up at the summit. Cem will return to Turkey later today.

[14] IMF DELEGATION IN PRIVATIZATION ADMINISTRATION - BAYAR, CHAIRMAN OF PRIVATIZATION ADMINISTRATION: - ''THE SUPPLY OF TUPRAS TO THE PEOPLE WILL CONTINUE IN THE FIRST QUARTER OF 2000''

Making a statement following his meeting with Carlo Cottarelli, the Chief of Turkey Desk of the International Monetary Fund (IMF), said that the Petrol Ofisi Corp. (POAS) will be put out to tender in the fourth quarter of 1999 and that they will announce some tenders, including some assets of the Prime Ministry Touristic Enterprises Copr. (Turban) and some insurance companies in the following weeks.

Pointing out that the quake which hit the Marmara Region did not make any significant damage in the organizations which are within the scope of privatization, Bayar said, ''the warehouses of Istanbul Fertilizer Industry Corp. (IGSAS) were damaged. We took all the measures for the repair of the warehouses. There was a problem in the water line of Turkish Cellulose and Paper Factories Enterprises (SEKA) but this problem was overcome by Izmit Municipality. There are not any significant damages in Petro-Chemicals Holding Corp. (PETKIM). We did not face any significant damages in any of the organizations except TUPRAS. Our colleagues started to repair the organizations. I only have a fear about the morale of the investors. We will see the mood of the investors after we announce our tenders.''

[15] RUSSIAN DELEGATION IN SOUTHEASTERN GAZIANTEP PROVINCE - LEBEDEV, RUSSIAN AMBASSADOR TO ANKARA: ''THERE IS A FUNDAMENTALIST TERRORISM IN CAUCASUS WHICH WE TRY TO PREVENT IT FROM SPREADING OUTSIDE THE REGION''

The Russian delegation headed by Lebedev visited Hakan Senses, the Acting Gaziantep Governor, in this southeastern province.

Senses said that they wanted to improve the commercial relations between Russia and Gaziantep.

Lebedev said that they visited this city because they want to improve the commercial relations with Turkey and that the two countries should launch initiatives for the improvement of the relations.

Responding the questions of the journalists, Lebedev said that they have great concern that the escalating tension in Caucasus can spread to the surrounding regions.

Emphasizing that Russia will not permit any discrimination and terrorism in her territory, Lebedev noted that Russia have similar problems with Turkey and to this end, the Foreign Ministry have parallel ideas about the incidents in Dagestan.

Briefed by Aynur Atay, who is responsible for the Southeastern Anatolia Project (GAP), Lebedev said that he was impressed by the GAP and that this project will make significant contributions to the region and the world.

Stressing that he was very pleased to be in the region and to see the investments, Lebedev stated that he believes that the Russian institutions and the businessmen will support the project.

[16] EU FOREIGN MINISTERS WAIT FOR CEM - EU TERM PRECIDENCY: ''IT IS A SIGNIFICANT DEVELOPMENT''

Antti Satuli, Finnish Permanent Representative to the EU, noted that Ismail Cem will come together with the EU foreign ministers at a luncheon to discuss issues of financial aid, and cooperation.

Recalling that this will be a high-level Turkish official visits Brussels for the first time in two years, Satuli said that Cem and Tarja Halonen, Finnish Foreign Minister, will stage a joint press conference after the luncheon.

Meanwhile, diplomatic sources told the A.A correspondent that Cem is scheduled to hold bilateral talks with Romano Prodi, Chairman of the EU Commission.

[17] IMF DELEGATION MEETS OFFICIALS FROM CENTRAL BANK

Responding the questions of the A.A correspondent following the meeting which lasted for nearly one hours, Cottarelli noted that they discussed the developments in monetary markets, monetary policy and the foreign exchange policy since their last visit to Turkey.

When asked when they will leave Ankara, Cottarelli stated that they cannot give a definite date for their departure and recalled that they had to postpone their departure in their previous visit.

Cottarelli added that they continue their contacts in the related institutions.

[18] FOREIGN AID TO DISASTER ZONE - NUMBER OF PLANES CARRYING AID AND FIRE EXTINGUISHER EQUIPMENT TO TURKEY REACHES 350

The Foreign Ministry statement said that the number of military and civilian planes carying humanitarian aid and fire extinguisher equipment to the disaster zone reached 350 as of 9.30 a.m. this morning.

The statement noted that 15 of these planes arrived in Turkey to help the fire extinguishing efforts while 335 planes brought humanitarian aid.

The officials said that five planes carrying humanitarian aid from United Arab Emirates, Kuwait, Kyrgyzistan, Belgium, and Canada arrived in Turkey today, adding that four planes carrying humanitarian aid from China, United Arab Emirates, Kuwait, and Britain are expected to arrive in Turkey in the following days.

Meanwhile, South Korea sent additional medical equipment worth of 25,000 U.S. dollars to Turkey.

The South Korean Embassy in Ankara statement said that the aid will arrive at the Ataturk Airport of Istanbul this evening and be handed over to the Red Crescent.

The statement noted that the South Korean official and private organizations continue to collect aid for the quake survivors.

[19] OFFICE OF GENERAL STAFF: - ''GENERAL STAFF CANNOT ACCEPT TERRORIST ORGANIZATION PKK AS AN INTERLOCUTOR''

The Office of General Staff issued a statement concerning ''Abdullah Ocalan, the head of terrorist organization PKK, and Kurdish language, and Kurdish broadcasts and publications'' which were brought onto agenda of meeting between General Huseyin Kivrikoglu, the Chief of General Staff, and journalists on September 3, 1999.

Recalling that several Turkish and foreign press organs distorted General Kivrikoglu's words, the statement noted, ''General Kivrikoglu said at the meeting, 'terrorist organization cannot solve the matter by using weapons. They have abandoned the federation, and demanded to be granted with certain cultural rights. Several newspapers and magazines are being published in Kurdish language in Turkey. People can speake Kurdish language in their private lives. And several television and radio channels are using Kurdish language in their broadcasts illegally.''

Stressing that several Turkish and foreign press organs distorted General Kivrikoglu's words by showing the statement as a ''state policy'', the statement of the General Staff underlined that such a policy is out of question.

The statement emphasized, ''General Staff cannot accept terrorist organization PKK as an interlocutor, it cannot discuss PKK's offers, and cannot make concessions.''

The statement added, ''withdrawal of terrorists from Turkish territories, is not very important. If terrorists lay down their arms and benefit from the anti-terrorism law, this will be the most correct and the most appropriate attitude. They had declared cease-fires many times in the past, but did not comply with them. The attitude of the Turkish Armed Forces towards the terrorist organization PKK, is well-known by all Turkish people and especially by the relatives of martyrs. As you know, a political process will begin after the jurisdiction process ends in the case of Abdullah Ocalan. Responsibility of the political process belongs to the parliament.''

[20] TURKEY OFFICIALLY APPLIES TO EUROPEAN SOCIAL AND DEVELOPMENT FUND FOR ASSISTANCE

Alev Kilic, Turkey's Permanent Representative to the Council of Europe (COE), submitted the official request of Ankara to the member countries during the COE Delegations' Committee meeting.

Speaking in the meeting, Walter Schwimmer, the Secretary General of COE, said that the fund is ready to help Turkey.

The officials said that Turkey's request will be discussed in the European Social and Development Fund Administrative Affairs Committee meeting which will be held in Paris between September 22 and 23, 1999.

The Fund earlier granted 162 million Euro aid for Dinar quake and 150 million Euro aid for Erzincan quake.

Meanwhile, the Delegations' Committee observed a minute of silence for those who died in the quake which hit the Marmara Region in its meeting.

[21] TURKEY-CROATIA JOINT ECONOMIC COMMISSION MEETING TO BE HELD IN ZAGREB BETWEEN SEPTEMBER 13-15

Releasing a written statement, the State Ministry said that Fikret Unlu, the State Minister, and Nenad Porges, the Croatian Economy Minister, will chair the meeting.

The current situation of the economic and commercial relations between Turkey and Croatia will be discussed at the meeting.

Measures which will be taken to accelerate the commercial relations, will also be taken up.

The JEC meeting protocol is expected to be signed on September 14.

Unlu will also attend the opening ceremony of Turkey-Croatia Business Council meeting on September 15.

Meanwhile, Turkey-Croatia Contractors' Joint Working Group will also be held in Zagreb.

[22] ''TURKEY FESTIVAL'' IN THE HAGUE

Turkish artists from Turkey and the Netherlands will participate in the festival which will last for five weeks.

Cultural and artistic activities will be held in 24 different spots within the framework of the festival which will be held by the KAKTUS Cultural and Artistic Agency to introduce the Turkish culture and arts to the Dutch people and to meet the cultural needs of the Turkish people living in this country.

A total of six Turkish films will be shown in the Hague Film Museum during the festival. Music performances, plays, and folkloric dances will be performed and photographs will be exhibited during the festival.

The Hague Turkey Festival will end with a concert given by Nilufer, a famous Turkish pop-singer, together with the Hague Symphony Orchestra on October 16, 1999. The Orchestra will firstly play the Turkish melodies and then will play the songs of Nilufer.

[23] IMF DELEGATION IN PRIVATIZATION ADMINISTRATION - BAYAR, CHAIRMAN OF PRIVATIZATION ADMINISTRATION: - ''I BELIEVE THAT THE SELLING OF SHARES OF TUPRAS TO PEOPLE WILL BE SUCCESSFULLY DONE''

Following his meeting with Carlo Cottarelli, the Chief of Turkey Desk of the International Monetary Fund (IMF), Bayar noted the supply of 15 to 20 percent of TUPRAS's share to the people can be realized in the first quarter of 2000.

Stressing that they discussed the improvement of the project since the previous visit of the IMF delegation, Bayar said, ''most of our projects are at the stage of being put out to tender. But, we told the IMF delegation that we will not realize some of our projects in 1999. We will slowly realize the projects concerning the companies which are negatively affected by the quake. We will firstly let these companies recover themselves. The IMF delegation saw that the programmes continue and to this end, our meeting did not last long.''

''What I give importance to is that some companies like Petro-Chemicals Holding Corp. (PETKIM), Istanbul Fertilizer Industry Corp. (IGSAS) and Turkish Cellulose and Paper Factories Enterprises (SEKA) were not seriously damaged by the quake. TUPRAS had more damages than these companies. But what is important is that the measures are taken to prevent such incidents, '' Bayar added.

When asked whether or not the privatization programme will negatively be affected by the quake, Bayar said, ''we are lucky that there are not significant damages in our companies. The impression I got from the investors I contacted, was that all the people understood that it was necessary to continue the programme after the quake. There are refineries all around the world. Such big disasters can happen everywhere. But, what we should show the whole world that all the measures have been taken and we continue to take more measures. These won't affect the general performance.''

''What I told the IMF that the state will realize privatization. The state, as an arranger and controller, will provide the liberalization and the deregulation of the markets,'' Bayar added.

Responding a question about the privatization of PETKIM and Turkish Airlines (THY), Bayar noted that the studies about the privatization of these two companies continue.

[24] SEEBRIG CENTRAL HEADQUARTERS TO BE OPENED ON SATURDAY

Turkey, Italy, Greece, Bulgaria, Albania, Romania and Macedonia are the members of the SEEBRIG while Slovenia and the U.S. paricipate in the peace force as observers.

The SEEBRIG can participate in the peace-keeping and humanitarian aid operations in case the NATO, the Organization of Security and Cooperation in Europe (OSCE), and the West European Union (WEU), or any regional country make such demand.

The place of the Central Headquarters will change in every four years. Plovdiv will be the first place of the headquarters, then the headquarters will be based in Romania, Turkey and Greece.

The SEEBRIG in which a Turkish mechanized infantry battalian, a reconnaissance division and an artillery battery will take place, will be commandered by a Turkish general for the first two years.

General Hilmi Akin Zorlu, the Commander of SEEBRIG, told A.A correspondent that the peace force will be ready for mission no later than the end of 1999.

Emphasizing that six Balkan countries and Italy came together and had a military cooperation, Zorlu noted that this is a historical incident because six Balkan countries reached a compromise and came together.

Stressing that a total of five Turkish officers accompany him in the headquarters at the moment, Zorlu stated that three more Turkish soldiers will come to the headquarters.

Noting that the participant countries will deploy their divisions and the battalions in their own territories, Zorlu stressed that these units will be always kept ready for mission.

Meanwhile, the defense ministers and chiefs of general staffs of seven participant countries will participate in the opening ceremony of the headquarters.

Turkey will be represented by Sabahattin Cakmakoglu, the National Defense Minister, and General Edip Baser, Deputy Chief of General Staff, in the ceremony.

[25] TURKISH-GREEK FRIENDSHIP - FM: ''MEETINGS WERE HELD IN A FRIENDLY AND WORKING ATMOSPHERE''

A Foreign Ministry statement recalled that high ranking officials of the Turkish and Greek foreign ministries came together in Athens as it was foreseen in the first round meetings.

Noting that issues of tourism, environment, economic and commercial relations were taken up in the meetings, the statement stressed that ''the delegations noted the automatic and rapid reaction of the two countries' officials and public opinion regarding the quake disasters in Turkey and Greece.''

The delegations of the two countries decided to continue working on the basis of friendly atmosphere noted the statement, adding that the delegations will continue their work in Ankara between 15-16 September and discuss issues of culture, regional cooperation, struggle with organized crime, illegal immigration, drug trafficking and terrorism.

The first round of Turkish-Greek talks was held in Ankara between 26-27 July and the second round was held in Athens between 29-30 July.

[26] COUNCIL OF MINISTERS MEETING ENDS

The second half of the meeting which started at 17.10 p.m. ended at 18.15 p.m.

In the first part of the cabinet meeting, the cabinet discussed in details the ways of healing the wounds of the quake disaster.

According to the information given to the cabinet, 4099 buildings collapsed, 6012 buildings were damaged seriously and 10,011 buildings were damaged in various degrees following the massive earthquake that hit Marmara region of Turkey on August 17.

Koray Aydın, the Minister of Public Works and Housing told the cabinet that temporary housing problem of quake victims can be solved by prefabricated buildings and the cost of one of them won't exceed 1,5 billion liras.

Sadi Somuncuoglu, the State Minister said that a big part of sufferers can be settled in 46,000 buildings which are being constructed in the disaster region and which belong to cooperatives.

Issues of rent aid and aid to those whose houses collapsed in the quake were also discussed in the cabinet meeting.

[27] COUNCIL OF MINISTERS MEETING ENDS - PREMIER ECEVIT SAYS STATEMENT ABOUT CABINET DECISIONS TO BE ISSUED ON SATURDAY

Responding to questions of journalists after the cabinet meeting, Premier Ecevit said that ''our meeting lasted long, we are preparing a statement for the public opinion about our decisions.''

[28] COUNCIL OF MINISTERS MEETING ENDS - RENT AID TO BE GIVEN TO QUAKE VICTIMS DETERMINED AS 100 MILLION LIRAS

The Council of Ministers took up in details the efforts carried out to heal the wounds of the quake in the second part of its meeting the same day.

In this framework, the cabinet decided to solve the temporary housing need of quake victims who are homeless in cooperative houses, tents which are resistant to winter and prefabricated buildings. The cooperative houses which are being constructed in the disaster zone will be completed in a short time by the support of the mass housing administration. There are 6000 buildings of which 90 percent of them have been constructed in the disaster zone and a source of 10 trillion Turkish liras will be allocated to complete them. The rent expenditure of those who don't have houses in these cooperatives will be met by the state.

Due to the unofficial information that is received by the Prime Ministry, there are 66,541 owners of houses in the area who were effected by the quake.

[29] COUNCIL OF MINISTERS MEETING ENDS - AYDIN, MINISTER OF PUBLIC WORKS AND HOUSING: ''WE'LL CONSTRUCT TEMPORARY AND PERMANENT BUILDINGS IN DISASTER AREAS''

Responding to questions of journalists after the Council of Ministers meeting, Aydın said that the number of temporary and permanent buildings will be as much as it is necessary.

When asked whether or not there was a difference of opinion in the cabinet about this issue, Aydın said ''there wasn't.''

Noting that there is a full consensus of opinion regarding temporary housing, Aydın pointed out that ''permanent buildings will also be constructed, we'll all discuss this issue. Our Ministry has been authorized about it.''

Aydın added that Premier Bulent Ecevit will give details about the issue on Saturday.

[30] PRIME MINISTRY CRISIS ADMINISTRATION CENTER: ''37,4 BILLION LIRAS HAVE BEEN COLLECTED IN ACCOUNT OF ZIRAAT BANK TILL TODAY''

The Crisis Administration Centre released a statement saying that totally 344 persons from foreign relief teams work in disaster areas. Egyptian, Canadian and Spanish teams work in Sakarya; German, Japanese, Norweigan and Ukrainian teams work in Kocaeli; Belgian, Czech, French, Spanish, German, South Korean and American teams work in Golcuk and South Korean, Bosnian and Austrian teams work in Yalova.

Social Security Authority (SSK) hospitals in Izmit, Karamursel and Sakarya are damaged by the quake and thus health service is given in the gardens of these hospitals.

An additional 464 health personnel and 53 fully equipped ambulances and various medicine and health equipment were sent to the disaster region.

Totally there are 101,000 tents which were set up and expected to be erected to shelter those whose houses collapsed. Red Crescent sent 37,480 of these tents, Turkish Armed Forces sent 1065 of these tents to the region and 54,389 of them were sent from outside of Turkey. Private sector gave 7970 tents and totally 156 tent cities were founded in the disaster area.

In Golcuk there are 616 work machines, 939 in Kocaeli, 422 in Yalova, 796 in Sakarya, 363 in Bolu. Totally there are 3136 work machines in the area. The area needs further 482 work machines.

Totally 41,266 buildings were damaged heavily, 43,628 buildings were damaged moderately and 48,008 buildings were damaged lightly in the area devastated by the quake.

[31] UNICEF DONATES 208,000 DOLLARS OF AID EQUIPMENT TO MINISTRY OF TREASURY

Phillippe Heffirck, the UNICEF's Representative to Turkey gave the aid to Osman Durmus, the Minister of Health by a ceremony held at Esenboga Airport.

Addressing the ceremony, Durmus thanked to UNICEF for their help, noting that there are many children who are quake victims.

''I believe that UNICEF will also help us regarding our wish of houses for children,'' said Durmus.

Phillippe Heffirck said in his part that ''we've seen the self-sacrificing work of the Ministry of Health in the disaster areas. It is not easy to deal with thousands of injured persons. Our help will continue.''

Later emergency aid health equipment, which will meet the basic needs of 10, 000 people for three months, refrigerators and 10 Renault type cars were to handed over to Osman Durmus.

Responding to questions of journalists asking about the news saying that epidemics can come out soon in the disaster area, Durmus said ''there is no such thing at the moment, but as I say from the beginning we are alert. It can come out anytime and but my team of more than 3000 people work in rotation to prevent it.''

[32] TREASURY PLANS TO PROVIDE 2,5-3 BILLION DOLLARS FROM COUNTRIES AND INTERNATIONAL INSTITUTIONS DUE TO QUAKE DISASTER

The Treasury released a statement saying that the meeting of Consultation Council about Internal Debt was held the same day in Ankara.

Noting that Treasury officials gave information about the ready money realizations in August in the meeting, the statement stressed that it is expected to reach the targets determined with IMF in the third quarter of the year.

''The foreign finance that is planned to be provided due to the quake disaster in Turkey can be in the form of credit with suitable conditions and donations,'' noted the statement, adding the next meeting of the Council will be held on October 22.

[33] TURKEY AND KAZAKHSTAN SIGN FIRST TERM JEC PROTOCOL IN ANKARA

Bahceli and K. Muhtar Ablyazov, the Kazakh Minister of Energy, Industry and Trade signed the JEC Protocol.

Addressing the signing ceremony, Bahceli said that commercial and economic relations between the two countries were reviewed in details and successful results were gained for Turkey during the meetings.

''The commission meetings which we attribute importance as they are held for the first time between our countries have further increased our belief in starting a giant leap forward in our commercial and economic relations. We laso welcome the confirmation of the cooperation between the two countries regarding transportation of Kazakh oil via Turkey to the world by pipelines,'' said Bahceli.

Ablyazov, the Kazakh Minister said in his part that his country attributes great importance to cooperation with Turkey.

The protocol signed today foresees increasing Turkish investments in fields of oil, telecommunication, food and production of agricultrual equipment and cleaning stuff.

The protocol also confirmed the support of Kazakhstan to Baku-Ceyhan Crude Oil Pipeline Project.

A.A

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