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ANADOLU AGENCY

NEWS

13 SEPTEMBER 2000

Wednesday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] FOREIGN MINISTER CEM: -''I INFORMED ALBRIGHT ABOUT THE CONCERNS I FEEL DUE TO THE INITIATIVES OF THE U.N. AND THE U.S. TO MAKE TURKS ACCEPT THE THESIS OF GREEK CYPRIOTS''

[03] ANNAN:''EQUAL STATUS OF THE TWO PARTIES MUST AND SHOULD BE RECOGNIZED IN THE COMPREHENSIVE SETTLEMENT''

[04] FOREIGN MINISTER CEM SAYS HE EXPRESSED HIS CONCERNS ABOUT SO CALLED ARMENIAN GENOCIDE DURING HIS MEETING WITH ALBRIGHT

[05] ARMENIANS IN OTTOMAN EMPIRE

[06] MASSACRES COMMITTED BY ARMENIANS

[07] RESPONSE TO ARMENIAN ATROCITIES

[08] SPEAKING ABOUT GENOCIDE?

[09] ARMENIAN TERRORISM

[10] FOREIGN MINISTER CEM SAYS THEY DID NOT DISCUSS IRAQ IN DETAIL

[11] DENKTAS SATISFIED WITH ANNAN'S STATEMENT

[12] FOREIGN MINISTER CEM: -''SERIOUS DEVELOPMENT HAS BEEN MARKED IN RELATIONS WITH LIBYA''

[13] ERBAKAN'S LAWYER APPLIES TO PROSECUTOR'S OFFICE FOR POSTPONEMENT OF EXECUTION OF IMPRISONMENT SENTENCE

[14] ''BACH IN ISTANBUL'' MUSIC FESTIVAL TO BE HELD

[15] HUMAN RIGHTS COORDINATOR HIGHER COUNCIL CONVENES

[16] EMBARGO IMPOSED ON IRAQ -GTO CHAIRMAN ASLAN: ''THE EMBARGO DETERIORATED THE CHEMISTRY OF SOUTHEASTERN ANATOLIA REGION''

[17] SEZER-ECEVIT MEETING ENDS -PRIME MINISTER ECEVIT: ''BLOCK SALE IN TELEKOM MAY BE 20 PERCENT OR MAY INCREASE TO 34 PERCENT''

[18] STABILITY PACT PARLIAMENT SPEAKERS' SUMMIT -PARLIAMENT SPEAKER AKBULUT: -''TURKEY HAD INTERVENED IN CYPRUS TO PREVENT GREEK CYPRIOTS' MASSACRE ON TURKISH CYPRIOTS IN 1974''

[19] STABILITY PACT PARLIAMENT SPEAKERS SUMMIT -PARLIAMENT SPEAKER AKBULUT: ''TURKEY'S PRIMARY TARGET HAS BEEN TO INSTALL PEACE BETWEEN DIFFERENT GROUPS AND NATIONS IN SOUTHEASTERN EUROPE''

[20] PARLIAMENT TO OPEN ON OCTOBER 1

[21] HUMAN RIGHTS COORDINATOR SUPREME BOARD MEETING ENDS

[22] ''TURKISH ECONOMY MEETING'' IN LONDON -COTTARELLI, IMF'S TURKEY DESK CHIEF, PRAISES GOVERNMENT AND TURKISH ECONOMY

[23] STAND-BY AGREEMENT AUGUST REPORT

[24] ''TURKISH ECONOMY'' MEETING IN LONDON COTTARELLI, IMF'S TURKEY DESK CHIEF, SAYS THEY HAVE NO DIFFERENCE OF OPINION WITH THE TURKISH GOVERNMENT

[25] ANKARA REPUBLICAN CHIEF PROSECUTOR'S OFFICE POSTPONES EXECUTION OF ONE- YEAR IMPRISONMENT SENTENCE GIVEN TO ERBAKAN FOR FOUR MONTHS

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

Noting that he will be back in Turkey in October, Cottarelli said Turkey's budget will show a better performance than expected. He said the Turkish economy is on the right track and added that he will stress this at the ''Capital Markets and Investments in Turkey'' meeting in London.

LEADERS AGREE TO EXPEDITE TELEKOM'S PRIVATIZATION
Ecevit and deputy prime ministers Mesut Yilmaz and Devlet Bahceli who had a meeting on Tuesday agreed to expedite Turk Telekom's privatization. The coalition leaders also decided to make floating power plants more widespread to meet Turkey's electricity need.

MILLIYET (LIBERAL)

CHIEF OF GENERAL STAFF KIVRIKOGLU ON GREEK FRIGATE
General Huseyin Kivrikoglu, the Chief of General Staff who is in Athens for the NATO meeting, watched the manoeuvres exercised in Saronikos Gulf from the Salamis Frigate. The Greek military personnel put to test saving Dokos island which was occupied by enemies.

SABAH (LIBERAL)

QUICK DECISIONS TAKEN IN LEADERS SUMMIT
Premier Bulent Ecevit made public five of the decisions taken in the summit while kept secret two of them. The leaders increased the share of Turk Telekom that will be privatized from 20 to 34 percent. The three ruling leaders decided to increase electricity importation to meet the demand and to put to operation ten mobile power stations. The leaders decided not to increase oil prices and to meet the increase in costs by Fuel Oil Stability Fund. Bureaucratic procedures in investments will be decreased. The obligation for consent will be abolished to decrease the works of the Prime Minister and President.

CUMHURIYET (LEFT)

CEM WARNS ALBRIGHT: ''ADOPTATION OF DRAFT
LAW MAY DETERIORATE RELATIONS''
Foreign Minister Ismail Cem told Madeleine Albright, the U.S. Secretary of State, that the adoptation of the draft law on so-called Armenian genocide which was submitted to the U.S. Congress may deteriorate the relations. The draft law is expected to be discussed in the U.S. House of Representatives' Foreign Affairs Commission on Thursday. Cem debated Cyprus, Turkish-Greek relations, Washington D.C.'s support to Turkey's European Union (EU) membership, the European Security and Defense Initiative (ESDI), and the Middle East during his meeting with Albright.

RADIKAL (LEFT)

PROCEDURE TO ARREST ERBAKAN STARTS TODAY
The court rejected Necmettin Erbakan's request to delay his one year prison sentence and Edremit Head Prosecutor's Office announced that an arrest warrant for Erbakan should be issued on Wednesday. Acccording to this, Erbakan will be taken from his residence in Altinoluk by the police. If he cannot be found, police and gendarmerie forces all around Turkey will be mobilized to catch him.

YENI BINYIL (LIBERAL)

TURKISH ECONOMY TO BE DISCUSSED IN LONDON
A seminar titled ''Capital Markets and Investments in Turkey'' organized by Turkish-British Business Council will start in London on Wednesday. Economists will discuss Turkish economy at the meeting which is organized for the fifth time this year. IMF Turkey Desk Chief Carlo Cottarelli will also give a speech on the government's stability programme during the seminar.

TURKIYE (RIGHT)

TRNC SENDS LETTER OF INTENT TO ANKARA
Turkish Republic of Northern Cyprus (TRNC) government sent Ankara the letter of intent which included the views regarding the implementation of the economic package. TRNC Prime Minister Dervis Eroglu declined to tell reporters about the letter's content.

ZAMAN (CONSERVATIVE)

THEY TRY TO DECEIVE
As the fourth round of Cyprus proximity talks started in New York, Rauf Denktas, the President of Turkish Republic of Northern Cyprus (TRNC), said that the Greek Cypriots try to decieve the world by false statements. Denktas said, ''we extended our hand for peace. We exist either they recognize or not recognize us.''

[02] FOREIGN MINISTER CEM: -''I INFORMED ALBRIGHT ABOUT THE CONCERNS I FEEL DUE TO THE INITIATIVES OF THE U.N. AND THE U.S. TO MAKE TURKS ACCEPT THE THESIS OF GREEK CYPRIOTS''

Cem told a press conference in New York that the sides which want to reach a solution on Cyprus question are trying to make the Turkish side accept the position of the Greek Cypriots and that he is very concerned about this.

He expressed his concerns during his meetings with Albright and Alvaro De Soto, the U.N. Secretary General Kofi Annan's Special Envoy to Cyprus, Cem said, adding that Albright and De Soto took his words seriously.

Albright did not request anything regarding development in Cyprus question during their meeting, Cem stated.

Cem continued, ''On the contrary, we were the side which requested developments on Cyprus question in the meeting. I informed Albright about the concerns I feel due to the initiatives of the U.N. and the U.S. to make the Turkish side accept the thesis of the Greek Cypriots by just saying that two sides should reach compromise.''

When asked about his ideas on the statement that Kofi Annan released regarding the fourth round of Cyprus proximity talks, Cem said that it is Rauf Denktas, the President of Turkish Republic of Northern Cyprus (TRNC), who can make a statement about the issue, and that Annan's statement was more advanced than that were released in the past.

Responding to a question on the words of Greek Foreign Minister George Papandreou who conditioned development in Turkish-Greek relations on Cyprus question, Cem said, ''that is Papandreou's personal view. In our respect, Cyprus question is not a matter of Turkish-Greek relations.''

[03] ANNAN:''EQUAL STATUS OF THE TWO PARTIES MUST AND SHOULD BE RECOGNIZED IN THE COMPREHENSIVE SETTLEMENT''

Noting that the proximity talks have been continuing since December, 1999, Annan told the two leaders that he believes ''the time has now come to move ahead.''

Annan's special Cyprus representative Alvaro de Soto, on the first day of the fourth round of talks, held a press briefing during which he distributed a copy of Annan's statement to reporters. The statement says:

1- Every party only represents its own side during the talks. (This is interpreted as Annan's confirmation that the Greek Cypriot administration is not the government of Turkish Cypriots. Denktas has been stressing this for a long time.)

2- The two sides are politically equal. (This point has been also emphasized by Denktas several times.)

3- A meaningful solution has to be found for the problem.

4- A comprehensive solution should help to build a better future in peace, security, and prosperity on the island.

Annan said in his message that ''equal status of the two parties must and should be recognized explicitly in the comprehensive settlement with good intention and with no preconditions.''

Responding to reporters' questions, De Soto said Annan will play a more active role from now on in the negotiations but did not give any details.

De Soto said Annan did not propose face-to-face meetings between the two leaders during this round but he proposed to have meaningful talks.

Answering another question, De Soto said he cannot yet tell how long the third round of talks would last and added that this was not under their control.

[04] FOREIGN MINISTER CEM SAYS HE EXPRESSED HIS CONCERNS ABOUT SO CALLED ARMENIAN GENOCIDE DURING HIS MEETING WITH ALBRIGHT

Cem told a press conference in New York that Turkey, which is a big state, takes this issue seriously.

''They can take decisions everywhere. But, Turkey is not affected by such initiatives. Turkey's Embassy in Washington D.C. became very successful in its efforts,'' Cem said.

Cem noted that the initiatives regarding the so-called Armenian genocide was launched in the past by the Armenians who were living outside Armenia, but that the Armenian government has taken serious part in the initiatives in the recent eight months.

Armenian President Robert Kocharian expressed the allegations against Turkey from the U.N. rostrum for the first time during the Millenium Summit, Cem stated.

Cem said that the Armenian terrorist organization which killed 20 Turkish diplomats convened for its first general congress in Armenia.

He informed Albright about all these issues in their meeting, Cem noted.

Cem stressed that as the U.S. President Bill Clinton said in his meeting with President Ahmet Necdet Sezer, the U.S. is exerting efforts to prevent the initiatives of Armenia.

Cem added that the U.S. side invited Turkey's State Minister In Charge of Human Rights to the U.S. during his meeting with Albright.

[05] ARMENIANS IN OTTOMAN EMPIRE

Beginning from the last quarter of the 19th century the nationalist/separatist Armenian bands started fomenting insurrection among the Armenian population of the Ottoman Empire. These bands organized several rebellions in various provinces like Zeitun (1862-1895), Erzurum (1890), Van (1895-96), Adana (1909) etc. during which thousands of muslims were killed.

[06] MASSACRES COMMITTED BY ARMENIANS

[07] RESPONSE TO ARMENIAN ATROCITIES

[08] SPEAKING ABOUT GENOCIDE?

Scores of distinguished academicians, past and present, focusing on Ottoman history conclude that speaking about genocide victimizing Ottoman Armenians is inacurate, inappropriate and unjustified.

[09] ARMENIAN TERRORISM

Armenian insistence on viewing themselves as the only victims of the sufferings in Anatolia during the World War I fuels today racial animosity and is a feeble attempt in justify Armenian terrorism, which has already claimed lives of 75 people belonging to different nationalities, 36 of them Turkish diplomats and their families.

[10] FOREIGN MINISTER CEM SAYS THEY DID NOT DISCUSS IRAQ IN DETAIL

Responding to a question of a journalist on whether or not the U.S. side expressed concerns about Turkey's being represented in Baghdad in the level of embassy, Cem said, ''we did not discuss Iraq in details. The U.S. side told me that they were informed about Turkey's ideas. They said that this was a sensitive issue for themselves and requested this issue to be taken seriously. We told them that we would take it seriously. Turkey will do what is necessary when the time comes.''

Responding to another question, Cem said that the U.S. side brought into the agenda the opening of a Clergy School in Heybeliada in their meeting.

Cem noted that he told them that this issue does not only concerns the Foreign Ministry, but concerns many other authorities.

Cem stated that Albright thanked Turkey for its contributions which facilitates the Middle East peace process and emphasized the importance that Turkey's contributions carries for the U.S.

Turkish-U.S. relations are going in a good route, Cem said.

Cem added that he told Albright that Turkey and the U.S. are countries which have relations in big geographies and that two countries do not need to think the same on every issue because they have different priorities.

[11] DENKTAS SATISFIED WITH ANNAN'S STATEMENT

However, Denktas said Annan's declaration is not ''enough to start face-to- face talks.'' Denktas told A.A correspondent that Annan's decleration suggested Clerides that he should quit claiming that he is the sole governor of Cyprus.

''Clerides should admit that he is not our government and this has become a precondition for face-to-face talks,'' Denktas said. ''Annan's declaration includes the basic points which we have been arguing. What we are suggesting is a Cyprus state with a confederal structure based on two states.''

Noting that they should wait for the reaction of the Greek Cypriot side, Denktas said he hopes the Greek Cypriot side accepts the points on Annan's declaration and make it possible to move ahead in the talks.

Denktas said Annan did not name the new partnership that he suggested in his statement. ''He left it to the sides,'' he added. ''Annan highlighted that equal status of the two sides should be included in the final agreement. We are hoping that the Greek Cypriots also accept this and the talks would gain acceleration.''

Following Annan's statement, rumours started about Clerides withdrawing from the talks. Commenting on this, Denktas said ''Annan's declaration did not harm the Greek Cypriot side. It was a healthy evaluation.''

Greek Cypriot authorities had a two and a half our meeting after the meeting of Clerides and Annan. No statements were made to the press after this meeting.

Diplomatic circles said the fourth round of talks would last until end of September and after a break in October, the two parties can begin the fifth round in November.

[12] FOREIGN MINISTER CEM: -''SERIOUS DEVELOPMENT HAS BEEN MARKED IN RELATIONS WITH LIBYA''

Cem told a press conference in New York that Libya wants better political relations with Turkey.

There was a problematic period in relations between two countries in the past, but today, the economic and cultural relations will be improved, Cem said.

Cem noted that Libyan authorities expect Turkish musicians to visit their country to especially develop the cultural relations.

Libyan Foreign Minister Abdurrahman Muhammed Shalgam invited him to Libya, Cem stated. He said that he will probably visit Libya in the end of this year or the beginning of next year.

Cem stressed that he also met with Pakistani Foreign Minister Sartaj Aziz within framework of his contacts in New York.

Turkey and Pakistan are two close countries, and the bilateral relations are very good, Cem emphasized.

Cem said that he will visit Pakistan soon.

Cem noted that he also met with Indian Foreign Minister Jaswant Singh and that economic cooperation further improves relations between two countries.

Touching on his meeting with Nigerian Foreign Minister Al Hadji Sula Labido, Cem said that Turkey will mark a giant leap forward in Africa in respect of politics and economy in the following five months.

Cem stated that he expressed the pleasure he feels over the developing relations with Kazakhstan during his meeting with Kazakh Foreign Minister Erlan Idrissov.

Turkey and Kazakhstan is concerned about the situation in Afghanistan, Cem said.

During his meeting with Robin Cook, the British Secretary of State for Foreign and Commonwealth Affairs, and the Dutch Foreign Minister Jozias Van Aartsen, Cem discussed the problems that are faced in the European Union (EU) and NATO because of the European Security and Defense Initiative (ESDI).

[13] ERBAKAN'S LAWYER APPLIES TO PROSECUTOR'S OFFICE FOR POSTPONEMENT OF EXECUTION OF IMPRISONMENT SENTENCE

Erbakan's lawyer requested the Edremit Republican Chief Prosecutor's Office to send the deposition to Ankara Republican Chief Prosecutor's Office.

The Ankara Execution Prosecutor's Office sent a notification to Erbakan, who is in his summer house in Altinoluk, to begin the execution on September 6.

The Diyarbakir State Security Court (DGM) had earlier sentenced Erbakan to pay one year in prison on charges of provoking people to hatred and enmity by discriminating among people in respect of class, racial, religious and regional differences in a speech he made in eastern Bingol province in 1994.

[14] ''BACH IN ISTANBUL'' MUSIC FESTIVAL TO BE HELD

A written statement said that La Petite Bande, Ewald Demeyere, Francois Fernandez, Khibla Gerzmava, Pierre Hantai, Evdokia Ionina, Natalia Loukhimtchouk, Olga Ivusheikova, Iareslav Krasnikov, Barthold Kuijken, Sigiswald Kuijken, Janna Nekritch, Dimitric Pianov, Alexander Zimbalov will give concerts during the festival.

Enis Batur, Aydın Esen, Dogan Hizlan, Evin Ilyasoglu, Nazan Ipsiroglu, Balkan Naci Islimyeli, Erhan Karaesmen, Aykut Koksal, Hulya Tarcan and Hasan Ucarsu will give conferences before the concerts start.

[15] HUMAN RIGHTS COORDINATOR HIGHER COUNCIL CONVENES

Before the meeting, Yucelen said the related ministries will brief the Higher Council about the ongoing activities as a part of the report titled ''measures Turkey need to take under the light of Copehhagen political criteria.''

Yucelen said that the participants of the meeting will discuss presenting the report to the Ministers Council.

[16] EMBARGO IMPOSED ON IRAQ -GTO CHAIRMAN ASLAN: ''THE EMBARGO DETERIORATED THE CHEMISTRY OF SOUTHEASTERN ANATOLIA REGION''

Aslan told A.A correspondent that the embargo had a stroke on regional economy and that the local people and workplaces have had losses due to this embargo.

As the Iraqi market was closed, production started to stagnate, Aslan noted.

Aslan said, ''crisis occured especially in transportation sector and border trade.''

Not only the economic development but also the social development were obstructed due to the embargo, Aslan emphasized.

Aslan continued, ''transit trade to Middle Eastern countries was damaged due to the embargo. The services sector is among the sector which are damaged by the embargo. Unemployment increased in the region because of the embargo and this led to social problems. Regional development was damaged, and exports to Middle Eastern countries reduced.''

''People emigrated from the region. The region was deprived of capital and work force inflow. The embargo stagnated the trading volume and led to a decrease in the national income per capita,'' Aslan said.

Aslan added that the government should accelerate initiatives that will enable free trade with Iraq to overcome the losses of the region caused by the embargo.

[17] SEZER-ECEVIT MEETING ENDS -PRIME MINISTER ECEVIT: ''BLOCK SALE IN TELEKOM MAY BE 20 PERCENT OR MAY INCREASE TO 34 PERCENT''

Ecevit responded to the questions of reporters following his regular weekly meeting with President Ahmet Necdet Sezer.

Recalling that President Sezer attended the U.N. summit held in the U.S., Ecevit said Sezer had very important meetings there. Ecevit said Sezer gave him detailed information regarding the visit.

Ecevit said he also gave information to the president about the decisions taken during the leaders' summit of Tuesday. ''During the summit, we decided to speed up privatization of Telekom. Decision of the Council of Ministers is required for the privatization of more than 20 percent. However, Transportation Minister Enis Oksuz had several oppositions.''

When asked how much shares would be privatized, Ecevit said, ''there are various choices. Its block sale may be 20 percent or may increase to 34 percent. We will assess the details of it in the coming few days.''

When reporters said a decision has been taken on Tuesday's Leaders' Summit, regarding limitation of the signature authority related with the Council of Ministers decree, and to increase productivity in state administration, and when asked if this has dimensions covering the signature authorities of the President, Ecevit said, ''it is not an issue directly related with the presidency or the prime minister. Many decrees are issued in Turkey. Several unimportant appointments are submitted to the signature of the President or the Ministers who are not directly concerned. These cause loss of time. We have been working on these for months. We got the approval of Mr. Bahceli and Mr. Yilmaz. We will reach a conclusion soon and submit it to the Council of Ministers.''

When asked if he was given information that most of the money, transferred from secret fund for the weapons which had been purchased from Israel in the past years, Ecevit said, ''as far as I know, investigation is under way in this respect. This is not an issue directly related with our government.''

When asked what he thought of the statements of Kofi Annan, the U.N. Secretary General, that the sides on Cyprus are politically equal, and that the TRNC and Greek Cypriot side represent their sides, Ecevit defined it as a positive step. He said, ''so far, we have been stressing the principle that there are two separate and equal states on Cyprus. This fact gradually began to be accepted.''

[18] STABILITY PACT PARLIAMENT SPEAKERS' SUMMIT -PARLIAMENT SPEAKER AKBULUT: -''TURKEY HAD INTERVENED IN CYPRUS TO PREVENT GREEK CYPRIOTS' MASSACRE ON TURKISH CYPRIOTS IN 1974''

Addressing the Southeast European Stability Pact Parliament Speakers' Summit in Croatian capital of Zagreb, Akbulut responded to claims of Avraam Antoniou, the Deputy Speaker of Greek Cypriot Parliament, who said that Turkey occupied Cyprus in 1974.

Comparing the Turkey's intervention in Cyprus to NATO's intervention in Bosnia-Herzegovina, Akbulut said, ''we all well-know who would have happened if NATO had not intervened in Bosnia-Herzegovina. Turkey intervened in Cyprus in 1974 in accordance with agreements and international law in order to prevent the Greek Cypriots' massacre on the Turkish Cypriots.''

Stressing that it would be wrong to evaluate Turkey's intervention in another way, Akbulut said that such an evaluation would hamper efforts to find a lasting solution on the island.

Noting that there were two separate nations on Cyprus, Akbulut, ''it is not possible to reach a lasting solution by turning a blind eye to this fact. Everyone should realize that a lasting solution could only be achieved by accepting this fact. Turkey's intervention aimed at providing peace and preventing carnage. No one has been killed on Cyprus since 1974. There can be no return to the pre-1974 status quo on Cyprus.''

[19] STABILITY PACT PARLIAMENT SPEAKERS SUMMIT -PARLIAMENT SPEAKER AKBULUT: ''TURKEY'S PRIMARY TARGET HAS BEEN TO INSTALL PEACE BETWEEN DIFFERENT GROUPS AND NATIONS IN SOUTHEASTERN EUROPE''

Parliament Speaker Akbulut addressed the European Stability Pact Parliament Speakers Summit which continues in Zagreb.

Stressing that Southeastern Europe has been the completing part of Europe and an important element of security architecture, Akbulut said, ''Turkey has exerted sincere efforts to improve bilateral relations and to provide peace, stability and welfare in the region, and effectively contributed to the strengthening of multi-lateral cooperation in the region. In this respect, Turkey has supported Southeastern Europe Stability Pact since its establishment.''

Akbulut said, ''according to our view, Stability Pact expresses the commitment of international community to find a lasting and comprehensive solution to the sensitive situation in the region. Also, we believe that the pact was an important means to prevent regional conflict.''

Pointing out that activities in working tables would provide economic, and social development and welfare, Akbulut said Turkey was resolved to take place effectively in working tables.

Akbulut said reforms toward the democratization of the region will facilitate integration process of the Southeastern Europe countries with Western Europe.

Akbulut said donor countries and international finance institutions should expend more economic aid to integration process in order to realize required economic and social reforms.

Akbulut said Turkey at the same time thought that regional countries should be given more important responsibilities to fulfil the targets of the Pact, adding that, ''implementation of projects, which have been assessed within the framework of the Stability Pact, should be done in time, and this will further strengthen stability and security in the region.''

Pointing out that Turkey welcomed the results of Finance Conference which took place between March 29 and 30, 2000, Akbulut said such an international cooperation within the framework of Stability Pact, will be more effective with the establishment of close and sincere cooperation between the parliaments.

Akbulut said Turkish Parliament is ready to support and fulfil all the efforts, set up by the parliamentarians to provide economic and social development in the region in the direction of national foreign policy targets.

[20] PARLIAMENT TO OPEN ON OCTOBER 1

President Ahmet Necdet Sezer will address the opening of the meeting.

Following the opening of Legislation Year, General Assembly will give 10 days break to its works, and during this period, the candidates will apply to become Parliament Speaker.

Consultation Committee will convene and determine a calender related with the election. Elections for the Parliament Speaker will be completed in four rounds.

[21] HUMAN RIGHTS COORDINATOR SUPREME BOARD MEETING ENDS

Speaking after the meeting which lasted nearly two hours, Yucelen said human rights meetings will take place in 10 provinces of Turkey, and noted that there will not be any human rights violations in Turkey following the meetings which are planned to end in December, 2001.

[22] ''TURKISH ECONOMY MEETING'' IN LONDON -COTTARELLI, IMF'S TURKEY DESK CHIEF, PRAISES GOVERNMENT AND TURKISH ECONOMY

Addressing ''Capital Markets in Turkey and Investment,'' conference in London, jointly staged by Turkish-British Business Council and Foreign Economic Relations Committee, Cottarelli said he could not get prepared for the speech as he was in an intense working program in Turkey in the past two weeks.

Cottarelli said there were many things to say about Turkey, so that he will not have difficulty in his speech.

Pointing out that growth figures in Turkey were negative before the implementation of the program and that inflation rate did not give signals of decrease, Cottarelli recalled that the worst thing was that the budget deficit was big at that time.

Cottarelli said something had to be done, so a strong program has been prepared, and stressed that the government exhibited a determined and a serious attitude in implementation of the program.

Cottarelli said an absolute decrease was seen in inflation as a result of this, adding that at the end of the eight months, rate of inflation decreased to the lowest level since 1986. He said realization of this despite the oil crisis was very important.

Recalling that these important developments could be achieved despite the loses caused by the massive earthquakes, Cottarelli said budget deficit, which is the most important problem of Turkey, depended on the increase in oil prices and increase of demand in domestic markets. Pointing out the importation-exportation balances, Cottarelli stressed that interest to local production goods was high as much as the foreign goods.

Listing the obstacles preventing the success of the program, Cottarelli said subsidies given by the government to agriculture sector, and noted that they should accept that reducing them were very difficulty decisions. Cottarelli said there were steps that should be taken in banking. Pointing out that a step taken to make changes in social security should continue, and defined today's point as ''succesful.''

Cottarelli also stressed the importance of the developments recorded in privatization of Turk Telekom.

[23] STAND-BY AGREEMENT AUGUST REPORT

The report said, ''an International Monetary Fund (IMF) mission headed by Carlo Cottarelli has started the discussions with the Turkish authorities under the Third Review of the Stand-by Arrangement in order to assess the economic developments so far as well as to revisit the projections of the economic program for the remainder of year 2000 and to set targets for year 2001.

Progress in Implementation

· Bank Regulation and Supervision Agency has begun its operations as of August 31, 2000. As a first step, a protocol entailing cooperation for the establishment of confidence and stability in the finance markets has been signed among the Undersecretariat of Treasury, the Central Bank and the Bank Regulation and Supervision Agency.

· The Competition Board has approved the sale of the third GSM license awarded to Is Bankasi and Telecom Italia for 2,525 million U.S. dollars.

· Telecommunications Board, established in order to obtain efficient operation and to establish competition in the spurring telecommunications market, has begun its operations. The Board is authorized to determine the price ceilings, import new technologies and equipment as well as to observe consumer rights.

· Fiskobirlik has announced the purchase price for hazelnut as TL/kg 1,100, 000 from TL /kg 1,070,000 price of 1999.

· Ministry of Energy and Natural Resources will begin to collect a fixed amount as a service charge included in the monthly invoice of the electricity consumers.

· Resource Utilisation Support Fund rates applied to the interest payments of consumer credits was increased to 8 percent from 3 percent.

Developments in the Main Aggregates

Growth

- Gross National Product has increased by 66.2 percent in nominal terms and 4.4 percent in real terms and realized at 27,512,379 billion TL in nominal terms. On top of the growth of 73.1 percent in nominal terms and 4.2 percent in real terms incurred in the first quarter of the year compared to the same period of last year, the growth of GNP for the first half of year 2000 was 69.1 percent in nominal terms and 4.3 percent in real terms. The GNP reached 48,870,185 billion TL in nominal terms in this period. The main drivers of this growth was imports, realizing an increase of 29.2 percent in real terms in imports tax and commerce, which incurred an increase of 10.4 percent increase in real terms.

- In June 2000, the increase in industrial production was around the level of 2.4 percent, whereas it was 3.7 percent in the second quarter. This figure marked 3.4 percent level for the January-June period compared to the same period of last year.

In June, manufacturing and energy sectors production increased by 3 percent and 4.6 percent, respectively, and mining sector production decreased by 10.8 percent. As for the second quarter of the year, manufacturing and energy production rose by 3.9 percent and 5.2 percent, respectively, and mining production declined by 3.5 percent, compared to the same period of last year. In the January-June period, manufacturing industry and energy sector production rose by 3.3 percent and 8.6 percent, respectively, mining sector, on the other hand shrunk by 4.4 percent.

· Manufacturing industry capacity utilization rate has realized at 72.6 percent in the first quarter of the year 2000 while it stood at 70.3 percent in the same quarter of the last year, marking an increase of 2.3 percentage points. In the second quarter, capacity utilization rate rose to 76.1percent from 75.7percent level of the same period last year. For July 2000, capacity utilization rate realized at 73.9 percent as opposed to 75.9 percent capacity utilization in July 1999.

Public Finance

Public Balance

Adjusted total revenues in the January - July period reached 17,793 trillion TL, marking an increase of 99.7 percent compared to the same period of last year. The tax revenues amounted to 14,373 trillion TL while other revenues realised at 3,299 trillion TL.

While the total expenditures realised at 27,091 trillion TL registering an increase of 77.3 percent, non-interest expenditures amounted to 12,835 trillion TL in comparison with the 8,511 trillion figure of the same period in 1999. Hence, the primary balance stood at 4,492 trillion TL, in nominal terms 15.5 times higher than last year's figure of 289 trillion TL for the same period.

In January-August 2000 period, revenues on cash basis realised at 19,547.7 trillion TL while non-interest expenditures reached 14,583.9 trillion TL. In the same period, interest payments were 15,748.5 trillion TL. On cash basis primary surplus was 4,963.8 trillion TL, while overall cash balance stood at -10,784.7 trillion TL.

Domestic Borrowing

Compounded annual interest rates realized at the auctions in August stood at 31.37 percent for 3-month maturity, 33.41 percent for 11 months maturity and 34.58 percent for 18 months maturity. In the 2 year FRN auction, compounded annual interest rate has been realized at 36.13 percent.

Total domestic debt stock reached 30,943,793 billion TL as of end-July 2000. Out of the total stock, 29,794,700 billion TL are bonds and 1,149,093 billion TL are T-Bills.

Total domestic borrowing and redemption for the first eight months of the year is as follows:

. Domestic Borrowing (Net) Redemption

. (Trillion TL)

. ------------------------ ---------- Jan 3,202 3,899 Feb 3,087 4,346 Mar 2,461 3,462 Apr 3,737 4,650 May 3,768 4,587 June 1,389 2,198 July 1,490 2,044 August 3,097 5,587

Net borrowing was around 72.2 percent of the redemption amount throughout the first eight months of 2000.

September 2000 Redemption Schedule:

Principal and interest payments are shown below for September:

(TL Billion)

. Date Principal Interest Total ------------- --------- -------- ----
01 Sept. 2000 0,0 49,482 49,482

07 Sept. 2000 421,480 12,644 434,125

20 Sept. 2000 0,0 101,692 101,692

25 Sept. 2000 0,0 23,233 23,233

Accordingly, the total domestic debt service will be 608,532 billion TL in September, comprising 421,480 billion TL of principal repayments and 187, 052 billion TL of interest payments.

Foreign Borrowing

Treasury has increased the amount of Euro 533,06 million bonds, issued on July 13, 2000, by Euro 200 million on September 1, 2000. The transaction was lead managed by Deutsche Bank and Merrill Lynch International. The bonds will become fungible with DM 1,5 billion bonds issued in 1997, on October 22, 2000. Thus, the total amount of bonds will be Euro 1,5 billion.

Treasury has also increased the amount of 750 million U.S. dollar global bonds, issued on June 8, 2000, by 750 million U.S. dollars on September 5, 2000. The transaction was lead-managed by Morgan Stanley Dean Witter. Thus the total amount of bonds increased to 1,5 billion U.S. dollars.

The total amount of bonds issued by Treasury in the international capital markets reached to 7,02 billion U.S. dollars since the beginning of the year.

Inflation

During the January-August period of 2000, inflation has registered the levels shown in the table below:

Jan. Feb. Mar. April May June July Aug. Cumulative

CPI (percent) 4.9 3.7 2.9 2.3 2.2 0.7 2.2 2.2 23.1

WPI (percent) 5.8 4.1 3.1 2.4 1.7 0.3 1.0 0.9 20.9

WPI 5.8 3.0 2.5 1.9 2.5 2.2 1.9 1.7 20.6
CPI and WPI have increased by 2.2 percent and 0.9 percent, respectively, in August. Private manufacturing industry prices have risen by 1.7 percent in August compared to July. On an annual basis CPI and WPI have declined to 53.2 percent and 48.9 percent, respectively, in August from 56.2 percent and 52.3 percent, respectively, in August 1999.

Balance of Payments

Foreign Trade; For the month of June, there was a decline of 0.6 percent in exports wheras imports rose by 28 percent, reaching 2,109 million U.S. dollars and 4,609 million U.S. dollars, respectively. Foreign trade deficit incurred 69 percent increase in this month compared to the same month of 1999 and reached 2,501 million U.S. dollars. Imports coverage ratio was 45.7 percent in June compared to 58.9 percent in June 1999.

Exports have increased by 4.5 percent in the first half of the year compared to the same period of last year and reached 13,353 million U.S. dollars. In this period, imports reached 25,024 million U.S. dollars registering an increase of 36 percent compared to the first half of last year. As a result, for January-June period import coverage ratio shrunk to 53.4 percent in comparison to last year's ratio of 69.4 percent in the same period. The foreign trade deficit has jumped to 11,671 million U.S. dollars, compared to last year's figure of 5,624 million U.S. dollars, registering an increase of 107,5 percent in the first six months.

Consumption goods accounted for 51.8 percent of exports, wheras intermediary goods and capital goods accounted for 42.8 percent and 5.3 percent in June. In this month the biggest increase under the total imports was 40.6 percent increase of consumption goods which accounted for 13.5 percent of total imports. Intermediary goods accounting for 66 percent of imports registered an increase of 31.35 percent compared to last year. Capital goods accounts for 20.2 percent of imports registering an increase of 20.4 percent.

In the January-June period of 2000, the biggest item under exports was consumption goods with 49.3 percent. The intermediay goods and capital goods had shares of 43.1 percent and 7.4 percent, respectively. In this period, the biggest share, 67 percent of imports went to intermediary goods incurring an increase of 38.1 percent. consumption goods and capital goods had shares of 12.9 percent and 19.7 percent, respectively, showing increases of 42.6percent and 29.4 percent, respectively.

Tourism revenues increased by 43.2 percent and reached 2,566 million U.S. dollars in the January-June period. Net receipts from other goods and services shrunk by 12.5 percent and realized at 5,404 million U.S. dollars. Under other goods and services, tourism expenses realized at 1,020 million U.S. dollars, interest expenses were 2,891 million U.S. dollars and other goods and services were 3,618 million U.S. dollars.

Workers remittances increased by 5.3 percent and reached 4,203 million U.S. dollars in the January-June period of 2000.

As a result, current account deficit reached 5,588 million U.S. dollars in the first half of 2000 compared to 103 million U.S. dollars in the same period of 1999.''

[24] ''TURKISH ECONOMY'' MEETING IN LONDON COTTARELLI, IMF'S TURKEY DESK CHIEF, SAYS THEY HAVE NO DIFFERENCE OF OPINION WITH THE TURKISH GOVERNMENT

Cottarelli responded to the questions of audiences following the conference titled ''Capital Markets in Turkey and Investment,'' which is held in London.

A person from the audiences said there was a contradiction between him and Prime Minister Bulent Ecevit, and asked if there was a diffence in their understanding of fine tune. In response, Cottarelli said the fine tuning was taking better control over the budget, adding that Turkish government began to take measures to realize this. He said there was no difference of opinion in that respect.

When another audience said what kind of measures would be taken to reach the targets of the program in the budget of the year 2001, Cottarelli said it was early to respond this and noted that they have not begun to plan the budget.

Meanwhile, Selcuk Demiralp, the Treasury Undersecretary, responding to the same question, said it was early to plan the budget of the year 2001.

Mentioning privatization, Demiralp said privatization of Turk Telekom will be speeded up, adding that it would be completed at the beginning of next year the lastest. Speaking about the reforms realized in agriculture and social security, Demiral said important steps have been taken.

Gazi Ercel, Governor of Central Bank, gave the examples of Argentina, Brazil, and Israel, and noted that Turkey will have a better position than these countries in struggle against inflation soon.

Ercel said they targeted reducing the rate of inflation to single digit figures at the end of the year 2002.

[25] ANKARA REPUBLICAN CHIEF PROSECUTOR'S OFFICE POSTPONES EXECUTION OF ONE- YEAR IMPRISONMENT SENTENCE GIVEN TO ERBAKAN FOR FOUR MONTHS

Ankara Republican Chief Prosecutor's office examined the request of Yasar Gurkan, the lawyer of Erbakan, to postpone the execution of Erbakan's imprisonment sentence for four months.

Tonik, speaking to reporters, pointed out that the four months and 26 days postponement started as of today, and that Erbakan will be sent to prison on January 13, 2001.

Tonik said it was not yet clear in which prison Erbakan will serve his sentence. Tonik also said there was no ban preventing Erbakan to go abroad.

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