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Anadolu Agency: News in English, 01-05-03

Anadolu Agency: News in English Directory - Previous Article - Next Article

From: The Anadolu Agency Home Page at <http://www.anadoluajansi.com.tr/>

Anadolu Agency

ANADOLU AGENCY

NEWS

03 MAY 2001 Thursday


CONTENTS

  • [01] TURKEY-PRESS SCAN
  • [02] EXPORTS OF TEXTILES FROM BURSA DECREASE 15.6 PERCENT
  • [03] MILD EARTHQUAKE JOLTS TOKAT
  • [04] GROSSMAN TO VISIT TURKEY
  • [05] CEYLAN, DIRECTOR OF ''MAY BOREDOM'' PRESENTED WITH JURY SPECIAL AWARD IN SINGAPORE INTERNATIONAL FILM FESTIVAL
  • [06] ANKARA TO HOST SYMPOSIUM ON ''BALKAN SPIRIT-COMMON VALUES AND PEACE''
  • [07] PRIME MINISTER ECEVIT LEAVES FOR SPAIN (1)
  • [08] MALTESE-FLAGGED OIL TANKER TO PASS THROUGH STRAITS BETWEEN 7-8 MAY
  • [09] ALL CATTLES AND 5 MILLION SHEEPS VACCINATED AGAINST FOOT-AND-MOUTH DISEASE
  • [10] PRIVATIZATION OF TURKISH TELEKOM -STATE MINISTER YALOVA: ''ONE GOLDEN SHARE WILL BE ALLOCATED TO PREVENT ANY DAMAGE TO NATIONAL SECURITY AND NATIONAL ECONOMIC INTERESTS''
  • [11] EXPORTS BY AUTOMOTIVE SECTOR RISE 40.5 PERCENT IN FIRST FOUR MONTHS
  • [12] GENDARMERIE COMMANDERSHIP EXPRESSES ITS REGRET OVER NEWS STORIES AND STATEMENTS OF SOME PEOPLE AND INSTITUTIONS ABOUT A LAWSUIT FILED BY ANKARA DGM CHIEF PROSECUTOR'S OFFICE
  • [13] PRIME MINISTER ECEVIT LEAVES FOR SPAIN (2) -ECEVIT: ''DEVELOPMENTS ABOUT EXTERNAL SOURCE ARE VERY POSITIVE'' -''SOME AMENDMENTS CAN BE MADE REGARDING THE ISSUE OF GOLDEN SHARE''
  • [14] OECD: ''TURKISH BANKING SYSTEM REQUIRES A MASSIVE RESTRUCTURING''
  • [15] ECEVIT-AZNAR PRESS CONFERENCE (1) -ECEVIT: ''TURKEY COULD PLAY A KEY ROLE IN A PERIOD IN WHICH EUROPE AND ASIA ARE INTEGRATING''
  • [16] ECEVIT-AZNAR PRESS CONFERENCE (2) -AZNAR: ''TURKEY AND SPAIN ENJOY PERFECT ECONOMIC RELATIONS''
  • [17] ECEVIT:''TURKEY WILL NEVER ACCEPT TO BE EXCLUDED FROM DECISION MAKING MECHANISM OF A MILITARY FORMATION''

  • [01] TURKEY-PRESS SCAN

    These are some of the major headlines and their brief stories in Turkey's press on May 3, 2000. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

    HURRIYET (LIBERAL)

    DOUBLE WARNING FOR TELEKOM
    Three high-ranking military officials paid an unexpected visit to State Minister and Deputy Prime Minister Husamettin Ozkan. They expressed their sensitivity about privatization of Turkish Telekom. They said that no more than 45 percent of the company should be sold to foreigner investors while Telekom's subsidiary Turksat which owns two satellites and launches others should remain in state hands.

    HERE IS DOCUMENT OF ILLEGAL TELEPHONE TAPPING
    Intelligence units of Provincial Directorate of Security in Ankara had tapped telephones of 963 people and institutions illegally for nearly two years. The list of these people and institutions was transferred to the prosecutor's office as a top secret document. Telephones of the Hurriyet Newspaper's Office in Ankara had been tapped for a month in 1997 without permission of the court. Telephones of state institutions such as Foreign Ministry, Directorate General of Security and Ziraat Bankasi, political parties such as the People's Democracy Party (HADEP) and the Freedom and Solidarity Party (ODP), trade unions, foundations and associations were also tapped.

    MILLIYET (LIBERAL)

    PROSECUTORS RESPOND TO YILMAZ'S STATEMENTS BY
    LAUNCHING AN INVESTIGATION INTO BLUE STREAM
    Following harsh criticisms of State Minister and Deputy Prime Mesut Yilmaz, the leader of the Motherland Party (ANAP), about indictment regarded with investigation into allegations of corruption in energy tenders, Ankara State Security Court (DGM) Prosecutor's Office launched an investigation into the ''Blue Stream'' project. Ankara DGM Prosecutor Nuh Mete Yuksel will carry out the investigation.

    RAPE IN CLASSROOM
    Six students have raped their 15-year-old clasmate in their classroom during breaks for two years in central province of Eskisehir. The incident was revealed when the female student attempted suicide.

    500 INMATES RELEASED WRONGFULLY
    Thousands of inmates were released from prison wrongfully because of an unclear article of the Law on Conditional Release from Prison. The article was commented by prison officials in different ways. As a result, thousands of inmates were released from prison although they did not deserve it. Defending that the maximum 500 inmates were released from prison wrongfully, Justice Ministry officials claimed that they could capture these inmates again.

    SABAH (LIBERAL)

    EXPERT CRISIS
    Lawyer Yavuz Selim Sariibrahimoglu who was appointed as expert in the investigation into allegations of corruption in energy tenders, had filed a lawsuit against TEAS, TEDAS and Baskent Electricity by claiming that he suffered heavy loss due to Energy and Natural Resources Ministry's policy. He lost the case. During his appointment as expert in the investigation into allegations of corruption in energy tenders, Sariibrahimoglu hid this case.

    EXPORTS INCREASE BY 11.8 PERCENT
    Foreign Trade Undersecretary Kursad Tuzmen said, ''according to data from exporters' unions, exports increased by 11.8 percent to 9 billion 832.1 million U.S. dollars between January 1 and April 30, 2001, compared to figures of same period last year.'' Tuzmen said that exports increased by 17.3 percent to 2 billion 545.6 million U.S. dollars between April 1 and 30. Speaking at a meeting in which electricity and electronics sector was taken up, Tuzmen said, ''agricultural exports increased by 8.2 percent to 1 billion

    436.4 million U.S. dollars between January 1 and April 30. In the same period, exports of livestock increased by 8.7 percent to 61 million 639 thousand U.S. dollars. Exports of forestry products increased by 17.6 percent to 154.1 milion U.S. dollars.''

    INTERIOR MINISTER TANTAN DUE TO IRAN
    Interior Minister Sadettin Tantan will pay a four-day official visit to Iran next week. His contacts are expected to focus on struggle against organized crimes.

    CILLER DUE TO U.S.
    Tansu Ciller, the leader of the True Path Party (DYP) will pay visits to Washington D.C. and New York, the U.S., between May 7 and 9. Ciller will deliver a speech at the Washington Institute.

    CUMHURIYET (LEFT)

    PRESS BARRED IN PARLIAMENT
    The parliamentary chairmanship council prohibited journalists to enter the parliament's backstage by a decision taken unanimiously. A joint statement was issued by nine non-governmental organizations (NGOs) to react to the decision of the parliament. Journalists who entered the place which was allocated for them in the parliament, left the parliament hall after a few minutes to protest the decision.

    MANISA CASE TO BE HEARD AGAIN
    The Supreme Court of Appeals Eight Penal Department repealed the court verdict about 10 policemen who were sentenced to imprisonment for torturing 15 young people in western Manisa province in respect of procedure. The court verdict was repealed by the department which said that the right to defend was restricted. The policemen will be re-tried.

    RADIKAL (LEFT)

    TURKISH TELECOM BELONGS TO OKSUZ'S FAMILY!
    One of the brothers of Enis Oksuz, the Transportation Minister, who was a headmaster in an elementary school became a deputy chairman in Turkish State Railways and another one became a health director in Postal and Directorate General of Post, Telegraph and Telephone. His nephews and peasants started to work at Telecom in southern Mersin province.

    DEBATE ON PARLIAMENTARY IMMUNITY
    Mesut Yılmaz, the deputy prime minister and the leader of the Motherland Party (ANAP) responded to the proposal of Devlet Bahceli, the deputy premier and the leader of the Nationalist Movement Party (MHP) who said that parliamentary immunity should be restricted. Yılmaz said that ''Bahceli should not only issue statement about this issue, but also sign our proposal.'' Prime Minister Bulent Ecevit on the other hand is cautious about the issue.

    TURKIYE (RIGHT)

    GENERAL STAFF WARNS ABOUT TELECOM
    Ankara had a busy day yesterday about the Turkish Telecom. Prime Minister Bulent Ecevit said that the bill on privatization of Turkish Telecom will finish within few days. State Minister Husamettin Ozkan met with Deputy Chief of General Staff Gen. Yasar Buyukanit for three hours. Buyukanit said that the General Staff wants the limits related to the scope of the ''privileged share'' to be kept broad in order to protect the national security and it does not want the satellities to be sold.

    DGM PROSECUTOR YUKSEL STARTS INVESTIGATION ABOUT BLUE STREAM
    Nuh Mete Yuksel, the State Security Court (DGM) Prosecutor started an investigation about the project namely ''Blue Stream'' following the complaint of Nazlı Ilıcak, the Virtue Party (FP) deputy. Ilıcak gave her petition to Yuksel on April 12.

    ZAMAN (CONSERVATIVE)

    PARLIAMENTARY IMMUNITY TO BE LIFTED SOON
    Mesut Yılmaz, the leader of the Motherland Party (ANAP) and deputy prime minister responded to the call of Devlet Bahceli, the deputy premier and the leader of the Nationalist Movement Party (MHP) who said that ''our proposal waits in the parliament for one year, I invite you to sign it. Nothing can be done by issuing statements, but by giving signs.''

    [02] EXPORTS OF TEXTILES FROM BURSA DECREASE 15.6 PERCENT

    BURSA - Exports of textiles decreased 15.6 percent in April of 2001 while exports of textiles decreased by 3.3 percent to 147 million 86 thousand U.S. dollars in the first four months of the year.

    Officials at the Uludag Exporters' Unions told the A.A correspondent on Thursday that they exported textile products to 87 countries and autonomous regions and to six free area between January 1 and April 30 of 2001.

    The region exported textiles of 152 million 189 thousand U.S. dollars in the same period last year.

    The first ten countries in exports of textile products between January 1 and April 30 are as follows:

    . (thousand U.S. dollars) (difference)

    Country 2000 2001 percent

    ------------- --------- -------- ----------
    Germany 22.709 23.178 2

    Italy 16.944 15.216 -10.2

    the U.S. 19.764 14.845 -24.8

    Britain 16.172 13.652 -15.5

    France 5.846 7.094 21.3

    Egypt 6.803 5.523 -18.8

    Bulgaria 2.107 5.401 156.2

    the Netherlands 4.240 4.554 7.4

    Iran 2.318 4.223 82.1

    Russia 2.424 3.200 32

    [03] MILD EARTHQUAKE JOLTS TOKAT

    ISTANBUL/KADIKOY - A mild earthquake rocked Tokat province in Black Sea region early on Thursday.

    Bogazici University Kandilli Observatory and Seismology Institute said that the epicenter of the quake measuring 4.1 on the Richter scale was Erbaa township of Tokat.

    [04] GROSSMAN TO VISIT TURKEY

    WASHINGTON D.C. - Marc Grossman, the U.S. Under Secretary of State for political affairs will come to Turkey towards of the end of next week to hold consultations about the missile defense system plans of the U.S. President George Bush and to discuss the issue of Turkey's integration with the system.

    The missile defense system which the U.S. decided to set up against the threat of ballistic missile from countries which it calls as ''pirate'' states, foresees protection of NATO countries, too.

    Bush had decided to send Deputy Secretary of Defense Paul Wolfowitz and Deputy National Security Adviser Stephen Hadley to regional countries to persuade European NATO allies about the missile defense system.

    Bush wants to form the missile defense system against the threat of intercontinental ballistic missile that can come from Iran, Iraq and North Korea.

    Russia and China are against the project, and also the west European allies of NATO are worried about the fact that the project can cause a new armament competition in the world.

    [05] CEYLAN, DIRECTOR OF ''MAY BOREDOM'' PRESENTED WITH JURY SPECIAL AWARD IN SINGAPORE INTERNATIONAL FILM FESTIVAL

    ANKARA - Nuri Bilge Ceylan who won Golden Orange Award with his film ''Mayis Sikintisi (May Boredom)'', was presented with the ''Jury Special Award'' in Singapore International Film Festival.

    Earlier in the week, Ceylan won the Best Director Award in Buenos Aires International Film Festival.

    Singapore International Film Festival is considered as one of the most important festivals in Asia.

    ''Euroka'' of Japanese director Shinji Aoyama was presented with the Best Film Award in the festival.

    ''May Boredom'' will be shown in Buenos Aires, Argentina; San Francisco, Minneapolis and Washington D.C., the U.S.; Portugal, Bosnia-Herzegovina and Austria.

    [06] ANKARA TO HOST SYMPOSIUM ON ''BALKAN SPIRIT-COMMON VALUES AND PEACE''

    ANKARA - A symposium on ''Balkan Spirit, Common Values and Peace'' will be held in Ankara on Friday within the framework of the activities of the Association of Balkan News Agencies (ABNA), of which the Anadolu Agency (A.A) is a member.

    State Minister Rustu Kazim Yucelen will address the opening remarks of the symposium which will be hosted by the A.A.

    The symposium will start at 10.00 a.m. in the Conference Hall of the A.A General Headquarters in Tandogan district.

    The general directors and high-ranking officials of the Albanian, Yugoslavian, Romanian, Macedonian, Bulgarian and Greek news agencies will attend the symposium.

    Representatives of citizens of the above mentioned countries who are having education in Turkey, or who are working in Turkey, or who are participating in sporting activities in Turkey, will speak in the symposium.

    The dean and the students of the faculties of communication in Ankara will also participate in the symposium.

    Yigit Altogan, the Foreign Ministry Deputy Undersecretary, will represent Foreign Minister Ismail Cem in the meeting and will deliver a speech.

    The guests will be hosted in Cappadocia by the contributions of the Hacibektas and Avanos municipalities and Nevsehir Governorship on Saturday and Sunday and will visit the historical and touristic sites.

    [07] PRIME MINISTER ECEVIT LEAVES FOR SPAIN (1)

    ANKARA - Prime Minister Bulent Ecevit left on Thursday for Spain as official guest of his Spanish counterpart Jose Maria Aznar.

    His wife Rahsan Ecevit, the Deputy Chairperson of the Democratic Left Party (DSP), and Foreign Minister Ismail Cem are accompanying Prime Minister Ecevit.

    [08] MALTESE-FLAGGED OIL TANKER TO PASS THROUGH STRAITS BETWEEN 7-8 MAY

    ANKARA - Association of Peace with Nature will protest the passage of Maltese flagged oil tanker between 7-8 May at Istanbul Strait with the participation of many boats.

    During the protest in the Strait, a message will be announced in Turkish, English, Russian and Bulgarian saying that ''straits are not a path of oil pipeline, but means of friendship and peace.''

    Yuksel Ustun, the Chairman of the Association of Peace With Nature told A.A correspondent that the empty Maltese flagged oil tanker namely Sea Magic passed to the Black Sea from the straits between 29-30 April and it will pass from the straits after being loaded. Ustun said that the ship's overall length is 274 meters.

    Ustun said that they are planning to close the traffic in the straits for two times during this passage, adding that the passage of ships particularly those who carry hazardous substances from Black Sea and Turkish straits constitute threat for all regional countries. ''More than 500 ship accidents took place in the region especially in Turkish straits in the last 50 years,'' he said.

    The increase in the number of ships that pass from the straits is 6,5 percent.

    [09] ALL CATTLES AND 5 MILLION SHEEPS VACCINATED AGAINST FOOT-AND-MOUTH DISEASE

    ANKARA - Officials who have been on alert following spread of foot-and- mouth disease in Britain, vaccinated all cattles and 5 million sheeps in Turkey.

    Officials at the Agriculture and Rural Affairs Ministry told the A.A correspondent that they had vaccinated all cattles and 5 million sheeps against the foot-and-mouth disease, and that they had started a technical cooperation project with Iran that would be financed by the World Food and Agriculture Organization.

    Meanwhile, works are under way against a possible outbreak of mad-cow disease (BSE).

    [10] PRIVATIZATION OF TURKISH TELEKOM -STATE MINISTER YALOVA: ''ONE GOLDEN SHARE WILL BE ALLOCATED TO PREVENT ANY DAMAGE TO NATIONAL SECURITY AND NATIONAL ECONOMIC INTERESTS''

    NEW YORK - State Minister Yuksel Yalova for Privatization said on Wednesday that one preferential stock (golden share) would be allocated in sale of Turkish Telekom in order to prevent any damage to national security and national economic interests and they would provide for sale of all shares, except the golden share.

    Speaking to the A.A correspondent, Yalova who is currently in New York, the United States to hold meetings with managers of leading funds of the world, said that there would be amendments to the Telegram and Telephone Law regarding privatization of the Turkish Telekom.

    Noting that those amendments would aim to prevent any damage to national security and national economic interests, Yalova said that a golden share would be allocated within scope of those amendments and all other shares would be sold.

    Yalova said that within framework of the Counstitutional Court's decision about the matter, more than 50 percent of Telekom's shares won't be sold to foreign real and legal persons under any circumstances.

    ''Different groups of shares like A, B, C and D will be formed to separate state's golden share from other shares,'' he said.

    Noting that he had met managers of world-wide famous 20 funds in New York, Yalova said, ''foreign financial circles are closely following Turkey. If we fail to explain our determination to implement the new economic program, we face a more serious crisis.''

    Yalova who will proceed from New York to Boston the same day is expected to leave the U.S. for Turkey on Friday.

    [11] EXPORTS BY AUTOMOTIVE SECTOR RISE 40.5 PERCENT IN FIRST FOUR MONTHS

    BURSA - Exports by the Turkish automotive sector between January 1 and April 30, 2001 rose 40.5 percent to 1 billion 243 million U.S. dollars.

    According to the Uludag Exporters Unions (UIB) statistics, total exports by the automotive and by-industry which had been 224 million 857 thousand U.S. dollars in April of 2000 reached 344 million 35 thousand U.S. dollars in April of 2001.

    Total exports in the January-April period of 2000 had been 884 million 958 thousand U.S. dollars.

    Exports by the Turkish automotive sector between January 1 and April 30, 2001 are as follows:

    Name of Product Exports Difference

    . (thousand U.S. dollars) (percent)

    ----------------------------------- ------------ ------
    Tractors 13.378 -44.3

    Bus-Minibus-Midibus 120.717 15.1

    Passenger Cars 350.969 43.4

    Motor Vehicles for Transportation 94.324 1.025.5

    Motor Vehicles for Special Purpose 4.717 181.4

    Tow Trucks 834 149.4

    Work Machines 9.368 11.2

    Ships and Floating Vehicles 50.101 20.4

    Aircrafts 2.746 -86.2

    Two-Wheel Vehicles 6.193 15.6

    Agricultural Machines 2.063 -7.5

    Tanks and Armored Vehicles 19.311 64.3

    Other Tow Trucks 61 -56.6

    Automotive By-Industry 568.734 38.1

    ---------------------------------- ------------ ------
    TOTAL 1.243.522 40.5

    [12] GENDARMERIE COMMANDERSHIP EXPRESSES ITS REGRET OVER NEWS STORIES AND STATEMENTS OF SOME PEOPLE AND INSTITUTIONS ABOUT A LAWSUIT FILED BY ANKARA DGM CHIEF PROSECUTOR'S OFFICE

    ANKARA - The Gendarmerie Commandership stated on Thursday that investigation into allegations of corruption in energy tenders was unbiasedly carried out in accordance with the principle of supremacy of law and without targeting any person and institution.

    Releasing a statement, the Gendarmerie Commandership expressed its regret over news stories and statements of some people and institutions targeting gendarmerie forces about a lawsuit filed by the Ankara State Security Court (DGM) Chief Prosecutor's Office.

    The statement noted, ''in accordance with the Law on Gendarmerie Forces' Duties and Responsibilities no: 2803, the gendarme is a military security force responsible for providing security and public order. According to the Article 13 of the Law on Foundations of DGMs no: 2845, the gendarme is charged to fulfil orders given within scope of the investigations to be carried out by DGM prosecutors.''

    ''Acting on a tip-off about corruption in some institutions of the Energy and Natural Resources Ministry, the Gendarmerie Commandership launched an investigation upon directives of the DGM Chief Prosecutor's Office and the Interior Ministry. The investigation was carried out under supervision of the DGM Chief Prosecutor's Office. The Commandership informed the relevant authorities on developments. Despite these facts, some circles accused the gendarmerie officials of launching the investigation without informing the relevant authorities. These are baseless and unfair accusations. Efforts to compare our gendarmerie forces responsible for providing security of a country which is a state of law, with Gestapo are nothing but a serious irresponsibility,'' it said.

    The statement noted, ''people and institutions claiming that the gendarmerie forces violated the laws as they were fulfilling their duties, have to prove their claims legally. Otherwise, it is clear that misleading the public opinion through the press, and such unfair and baseless criticisms and accusations would not serve any target.''

    ''The investigation into allegations of corruption in energy tenders was unbiasedly carried out in accordance with the principle of supremacy of law and without targeting any person and institution,'' it added.

    [13] PRIME MINISTER ECEVIT LEAVES FOR SPAIN (2) -ECEVIT: ''DEVELOPMENTS ABOUT EXTERNAL SOURCE ARE VERY POSITIVE'' -''SOME AMENDMENTS CAN BE MADE REGARDING THE ISSUE OF GOLDEN SHARE''

    ANKARA - Prime Minister Bulent Ecevit said on Thursday that developments about external source were very positive.

    Speaking to journalists prior to his departure from Ankara's Esenboga Airport for Spain, Ecevit said that he would hold tete-a-tete meeting with his Spanish counterpart and preside interdelegationary meetings, and he would meet Parliament Speaker Luisa Fernando Rudi and be received by King Juan Carlos of Spain.

    Ecevit said that they would exchange opinions on bilateral relations and international and regional issues at their meetings.

    Noting that Turkey had historical and traditional relations with friendly ally Spain, Ecevit said that there had been a considerable progress recorded in relations between Turkey and Spain in recent years.

    ''As two important countries situated on frontiers of the Mediterranean, Turkey and Spain have similar functions in regional cooperation. We target to bring our relations with Spain to a further level,'' the Prime Minister said.

    When asked whether or there would be another postponement in sale of Turkish Telekom, Ecevit said that he believed that the problem about the Turkish Telekom would be solved in next few days.

    ''It is a very sensitive and strategically very important matter, of course. As a result of our responsibility, we are focusing on the details. Some amendments can be made regarding the issue of golden share. State Minister Kemal Dervis held a contact with the General Staff. I don't think that there would be a problem,'' he said.

    When asked whether or not Dervis had conveyed him a development about external source, Ecevit said, ''nearly 13 billion U.S. dollars of support was promised to be extended to Turkey as an International Monetary Fund contribution. It is seen that a 16 billion U.S. dollars of source has been obtained when 6 billion U.S. dollars of World Bank's promise is added to this source. It is a very positive development.''

    When asked whether or not legal arrangements about banking and Telekom laws would be finalized before IMF Board meeting, Ecevit said that he believed that they would be finalized.

    [14] OECD: ''TURKISH BANKING SYSTEM REQUIRES A MASSIVE RESTRUCTURING''

    PARIS - Paris-based Organization for Economic Cooperation and Development (OECD) released a report on Thursday saying, ''the Turkish banking system requires a massive restructuring. Stabilization of the economy will depend on re-establishing the credibility of the reform effort, which is a formidable challenge.''

    The report noted, ''Turkish banking system requires a massive restructuring including the take-over, sale or liquidation of many banks and the capitalization and privatization of the state banks. Significant expenditure reductions will be necessary to offset higher debt service. At the same time, a broad-based incomes policy is essential to ensure the equity of the adjustment process and to avert the risk of a wage-price spiral.''

    ''The structural reforms needed to attract private capital from abroad began to falter in the late summer of 2000, raising concerns about current- account sustainability and halting the decline in nominal interest rates. In November, evidence of banking-sector problems led to a drying-up of the interbark market, provoking a financial crisis that in turn drained reserves and pushed real interest rates back up to around 40 percent, where they remained even after a rescue package from the International Monetary Fund (IMF) calmed the markets down. A second financial crisis in February 2001 followed from the inability to re-establish confidence in the structural reform process. At that point, the authorities saw little choice but to float the lira and exit the program. The lira has thus far devalued by more than 45 percent,'' it said.

    The report noted, ''bank restructuring is the most urgent of the reforms, and the government has make this a high priority.''

    ''In 2000, the wages and incomes of groups such as civil servants, minimum wage earners, and farmers were linked to the inflation target. Following the adoption of a floating exchange-rate regime, the authorities have stated their intention to extend the incomes (and price) policy to all components of society. Though difficult to achieve, given the loss of monetary credibility during the crisis and the need to absorb large pos- devaluation real wage cuts, such a policy will be essential for establishing a measure of social cohesion behind the new strategy,'' it added.

    [15] ECEVIT-AZNAR PRESS CONFERENCE (1) -ECEVIT: ''TURKEY COULD PLAY A KEY ROLE IN A PERIOD IN WHICH EUROPE AND ASIA ARE INTEGRATING''

    MADRID - Prime Minister Bulent Ecevit who is visiting Spain has said that EU membership was a goal for Turkey which it could not give up.

    ''In a period in which Europe and Asia are integrating, Turkey could play a key role and it has already started doing so. Turkey will benefit the EU as much as it will benefit from it,'' Ecevit said during a joint press conference with Spanish Prime Minister Jose Maria Aznar on Thursday.

    Ecevit pointed to the developing economic and financial relations between Turkey and Spain. ''Actually there is an unbalanced situation in our trade relations which is against Turkey. Spain has its doors open to Turkish industrialists and merchants. Therefore Turkish industrialists should focus more in the Spanish market. But even with its present state, we have advanced economic and financial relations. There are several projects which Spain is willing to undertake in Turkey including electricity, ecology, environmental health and railroads. We're assessing solid cooperation opportunities. Mr. Anzar emphasized the importance of passing a law to prevent double taxation. Such a law would automatically accelerate our economic relations. I will do my best in Ankara to achieve this result,'' he said.

    Ecevit also indicated that both governments also wanted to increase relations in cultural and education fields besides economic ties and he praised the Spanish culture, art and literature.

    Dwelling on Turkey's EU membership, Ecevit said Turks have roots in the Balkans, Central Asia, Caucasia and Eastern Mediterranean. ''Turkey's EU membership, which it deserves, would open other doors to Europe. Turkey could play a key role and it has already started doing so in a period where Europe is integrating with Asia. Turkey will benefit the EU as much as the EU will benefit Turkey. We're hoping that we would join the EU in the shortest time possible. Mr. Aznar supported us greatly on this matter. Next year, Spain will take over the EU term presidency. I'm sure that Mr. Aznar and the Spanish delegation will do their best to help Turkey join the EU. I would like to thank them in advance.''

    ''We have to eliminate the shortcomings in our democracy and revive our economy,'' Ecevit continued. ''In the last 20 years, the Turkish economy has gained great dynamism. Turkey transformed from an agricultural society to an industrial society. But it also made mistakes. Turkey has been dealing with chronical high inflation about 80 or 90 percent for 15-20 years. We also couldn't form a functional bond between the banking system and production. Therefore, another economic crisis emerged just as the inflation was going below 30 percent. This was the consequence of past mistakes. Our economy suffered two blows last November and this February. But these are temporary situations. Turkish economy has a very large potential. The quicker we could pull down the inflation below ten percent, the quicker we will become an EU member.''

    Ecevit said the government was determined to do its share to eliminate the shortcomings in the economy.

    Ecevit said Spanish Prime Minister Aznar would visit Istanbul in September and attend the opening of the Cervantes Institute.

    [16] ECEVIT-AZNAR PRESS CONFERENCE (2) -AZNAR: ''TURKEY AND SPAIN ENJOY PERFECT ECONOMIC RELATIONS''

    MADRID - Spanish Prime Minister Jose Maria Aznar has said that economic relations between Turkey and Spain was at a very satisfactory level and that the trade volume between the two countries was tripled between 1996 and 2000.

    During a joint conference with Prime Minister Bulent Ecevit in Madrid on Thursday, Aznar defined the Turkish-Spanish relations as ''perfect.''

    Underlining the joint action plan which was signed in 1998, Aznar said this plan had significant contributions to bilateral relations. The Spanish prime minister also stated that the two governments agreed to prevent double taxation which would further advance economic relations between the two countries. He added that the Spanish government was also reviewing the 410 million U.S. dollar financial protocol.

    Speaking of cultural relations, Aznar said the opening of the Spanish Cervantes Institute in September would increase cultural relations.

    He said Spain placed great importance to Turkey which it sees as ''an ally and a friend'' and supported its efforts to join the EU. He also said that Spain would benefit if Turkey supports Spain's candidacy to the United Nations Security Council.

    Aznar is expected to visit Istanbul to attend the opening of the Spanish Cervantes Institute.

    [17] ECEVIT:''TURKEY WILL NEVER ACCEPT TO BE EXCLUDED FROM DECISION MAKING MECHANISM OF A MILITARY FORMATION''

    MADRID - Prime Minister Bulent Ecevit has said that Turkey would never accept being excluded from the decision making mechanism of a military formation while the EU countries could benefit from Turkey's military sources.

    Answering reporters' questions after a press conference on Thursday night, Spanish Prime Minister Jose Maria said Turkey so far didn't get the economic aid it deserves and that the EU was offering unequal aids to different EU candidates. He said he couldn't give an exact date for Turkey's membership since every country has different paces to prepare themselves to become an EU member. ''Turkey's accession process depends on the Turkish government and the citizens, therefore a date can't be given,'' he said.

    Responding to a question on terrorism, Aznar said ''The Spanish Government has a clear stance on terrorism and it condemns it.'' Ecevit said both Turkey and Spain which are two Mediterranean countries, suffered a lot from terrorism and added that Turkey also suffered from significant economic loss due to terrorism.

    Answering a question on the summit which was held in the French city of Nice, Ecevit said Turkey was not satisfied by the decisions taken regarding the European Security and Defense Identity. ''The ESDI is the EU's plan to benefit from NATO resources while creating its own military policy. However, non-EU members will not be allowed to participate in the decision making machanisms. Turkey gave great services to the NATO since 1950s. Turkey has NATO's most powerful army. Today, our allies have to ask Turkey's help whenever an incident occurs in our region such as Bosnia-Herzegovina, Macedonia and Albania. We told at the meeting in Nice that Turkey will not except to be excluded from the decision making mechanism but no positive decision came out of the summit. I'm sure my friend Aznar would understand Turkey's views on this matter.''

    Responding a question on corruption, human rights and prisons, Ecevit said the present government was conducting a very efficient, unprecedented fight against corruption. ''Several laws on human rights are being passed. I'm aware of our handicaps in human rights. The Turkish Parliament worked very hard recently and passed several laws on human rights. About ten years ago a big mistake was made and inmates who were sentenced for ideological crimes were allowed to stay in large dorms. As a result of this wards in many prisons turned to the training center of terrorists. This was causing strong reactions in the public and harming people's confidence in the state. We decided to erase this image and to form rooms for one to three people in the prisons. The inmates resisted and terrorists leaders who are outside prisons instructed their members to go on a death fast. This way, they wanted to preserve the dorm system. They thought they would get the support of the Western world.''

    A law which was passed only a couple of days ago lifted the obstacles in front of inmates who wanted to form social relations with each other at F type prisons, Ecevit said and added that inmates at these prisons could come together during certain social activities.


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