Anadolu Agency: News in English, 01-07-01

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ANADOLU AGENCY

NEWS

01 JULY 2001 Sunday

-TURKEY-PRESS SCAN

These are some of the major headlines and their brief stories in Turkey's press on July 1, 2001. The Anadolu Agency does not verify these stories and does not vouch for their occuracy.

HURRIYET (LIBERAL)

International Monetary Fund (IMF) Managing Director Horst Kohler called Prime Minister Bulent Ecevit on the phone two days before the IMF Board's meeting. Kohler expressed IMF's uneasiness about the Emlakbank Law which has not been adopted yet, and about the Telekom's administration.

BASKENT UNIVERSITY WINS FOUR AWARDS

Doctors from the Baskent University Faculty of Medicine won four awards in the 38th Congress of the European Association of Kidney and the European Association of Dialysis and Transplantation in Austrian capital Vienna. A total of 1,440 researches from different countries were submitted at the congress. Turkey was represented at the congress with 35 researches including 25 from the Baskent University. The Hacettepe University, the Istanbul University and the Edirne University also won awards at the congress.

CRISIS SHRINKS ECONOMY 4.2 PERCENT

The first quarter growth rate of Gross National Product (GNP) in 2001 compared to the same period of previous year decreased 4.2 percent. The State Institute of Statistics (DIE) announced the GNP estimates for the first quarter of 2001 and the Gross Domestic Product (GDP) estimates by expenditure approach for the first quarter of 2001 and the GDP estimates by cost components approach for the year of 2000. GNP figure in the first quarter of 2001 was 24 quadrillion 900 trillion 583 billion Turkish liras (TL) in current prices and it was 22 trillion 258 billion TL in fixed prices in 1987. The real growth rate was -4.2 percent and the current growth rate was 16.9 percent.

MILLIYET (LIBERAL)

State Minister Kemal Dervis for Economy started his 11-day tour to Europe and the U.S. Speaking at the World Economic Forum in Crans-Montana, Switzerland, State Minister Dervis said, ''it as more easier to convince International Monetary Fund (IMF) and World Bank on some issues. Naturally, there are minorities in every government. Arguments will of course take place. But we should not exaggerate them.''

CEM: ''MILOSEVIC SHOULD NOT BE LEFT UNPUNISHED''

Foreign Minister Ismail Cem expressed his satisfaction over extradition of Slobodan Milosevic, former president of Yugoslavia, to the United Nations War Crimes Tribunal. He stressed that Milosevic should not be left unpunished.

TURKEY WINS FIVE GOLD MEDALS

Turkey won five gold, three silver and seven bronze medals in the 15th International Bogazici Judo Tournament.

TURKISH NATIONAL TEAM ARRIVES IN GREECE

Turkish National Team arrived in Salonica, Greece, to participate in the World Youth Weight-Lifting Championships. A total of 450 sportsmen from 69 countries will participate in the championships which will start on Sunday. Ertan Ispara, Emrah Arslan, Ferit Sen, Taner Sagir, Izzet Ince, Nejat Akdeniz, Reyhan Elmali and Talat Bayram will represent Turkey in the championships. The championships will end on July 8.

SABAH (LIBERAL)

While Italy came on the first place in the list of application dossiers to the European Court of Human Rights (ECHR), Turkey ranked ninth. Application dossiers from other countries to the ECHR range from penal laws to private laws while application dossiers from Turkey to the ECHR concentrates on penal laws and criminal procedures. Applications from Turkey to ECHR increased at the beginning of 1990s when terrorist activities escalated.

CUMHURIYET (LEFT)

Prime Minister Bulent Ecevit confessed that Turkey's future was given shape according to international organizations' and developed countries' demands called structural reforms. Ecevit said that expectations of IMF, World Bank and G-7 from Turkey were fulfilled completely and in time. Expressing his gratitude for foreign aid, Ecevit said that they believed that they had already deserved this aid.

COOPERATION AGAINST EARTHQUAKE

Turkish, American, Greek and Italian research institutions will cooperate in determining the risk of earthquake on the North Anatolian Fault Line. The strategy about the initiative called ''Aegean Earthquake Project'' will be determined in Salonica one month later.

RADIKAL (LEFT)

Prime Minister Bulent Ecevit, the leader of the Democratic Left Party (DSP); State Minister and Deputy Prime Minister Devlet Bahceli, the leader of the Nationalist Movement Party (MHP); and State Minister and Deputy Prime Minister Mesut Yilmaz, the leader of the Motherland Party (ANAP); held a joint press conference about the 57th government's works and the parliament's activities in the legislative year. Speaking at the conference, Yilmaz said, ''the most significant characteristic of our government is to reach compromise even on the most complicated issues. However, I see that this characteristic of the government is being tried to be overshadowed after Kemal Dervis' appointment as the state minister for economy. The compromise should not be considered a compromise among three political parties forming the coalition government. Also a compromise should be provided between means of the economy and means of the politics. Dervis is an independent minister and a technocrat minister. One cannot expect him to display the necessary sensitivity about means of the politics.''

TURKIYE (RIGHT)

Speaking at his meeting with the Istanbul Governor, Interior Minister Rustu Kazim Yucelen said, ''instead of calling citizens to police station for simple works, we will bring police to them.'' Yucelen said that all police station personnel would pursue organized crime gangs and those who disquiet citizens.

LAW FINISHED

Prime Minister Bulent Ecevit held a press conference together with his deputies Devlet Bahceli and Mesut Yilmaz and assessed the legislative year. Noting that they had adopted 300 bills in two years, Ecevit said that all structural arrangements had been made.

DERVIS STARTS HIS TOUR TO SEEK MONEY

State Minister Kemal Dervis for Economy who felt relieved with solution of the Telekom crisis and adoption of delayed bills by the parliament started his 11-day visit to abroad. Dervis will hold contacts in Switzerland, U.S. and Britain.

PARENTS WHO CAUSE THEIR CHILDREN TO WORK

SENTENCED TO 3 MONTHS IN PRISON

Ankara Criminal Court of Peace no:11 sentenced Arife and Nurettin Altun who caused their four children to work in the streets to three months in prison. The court commutted the imprisonment term to fine and punished the parents to 498 million Turkish liras fine.

ZAMAN (CONSERVATIVE)

Etibank, a public institution, started to construct a wolfram mine enterprise on the peak of Uludag in 1974 with a 60 million U.S. dollars investment. The mine which was opened in 1980 was operated for 8 years but it never made profit. The unproductive mine was closed down with a 120 million U.S. dollars loss and sold to a scrap-iron dealer very cheaply.

GOVERNMENT TO GO TO COURT

Behcet Yurtcu, a 75-year old citizen living in Istanbul, will file a civil action for damages against the government on charges of making the country poor and causing citizens to suffer depression by creating crises. Noting that he had gone bankrupt, Yurtcu said, ''while I was think of committing suicide, I decided to struggle against the people who are responsible. I will call them to court to account for what they did.''

CONTENTS

[01] STATE MINISTER DERVIS: ''THE 57 PERCENT INFLATION RATE TARGET FOR THIS YEAR SHOULD BE ACHIEVED''

[02] SPORTS - JUDO -15TH INTERNATIONAL BOGAZICI TOURNAMENT STARTS IN ISTANBUL

[03] TREASURY TO SELL 5-MONTH BONDS ON TUESDAY

[04] NET MINIMUM WAGE RISES TO 107.3 MILLION TURKISH LIRAS

[05] 15 MILLION U.S. DOLLARS OF AGRICULTURAL, ANIMAL AND INDUSTRIAL GOODS EXPORTED FROM GAP REGION TO EAST EUROPEAN COUNTRIES

[06] LICENCES OF INTERBANK AND ESBANK WHICH MERGE UNDER ETIBANK FRAME TO BE ANNULLED AS OF JULY 2

[07] PRESIDENT SEZER: -''CONSIDERATION AND USE OF TURKISH STRAITS AS AN OPTION FOR AN OIL PIPELINE ROUTE CANNOT BE ACCEPTED''

[08] KANBAY WHO WITNESSED MASSACRE OF HIS RELATIVES WHO WERE BURNT ALIVE IN DERINCE VILLAGE BY ARMENIANS: ''I STILL SMELL STINK OF BURNING FLESH AND BONES''

[09] PRIME MINISTER ECEVIT (1): -''NECESSARY ATMOSPHERE FOR ELECTIONS DOES NOT EXIT IN TURKEY FOR THE TIME BEING''

[10] OMANI FOREIGN MINISTER BIN ABDULLAH COMES TO TURKEY

[11] STATE MINISTER DERVIS: ''CREATION OF SCENARIOS OVER RUMORS SHOULD END AND DISCUSSIONS SHOULD FOCUS ON ECONOMIC FIGURES''

[12] BAYKAL RE-ELECTED AS CHP LEADER

[13] NEWLY APPOINTED ISRAELI AMBASSADOR TO TURKEY SULTAN COMES TO ISTANBUL

[14] PRIME MINISTER ECEVIT (2): -''OUTLAWED FP HAD HAD A MORE DIFFERENT STRUCTURE THAN OUTLAWED RP OF ERBAKAN''

[15] PRIME MINISTER ECEVIT: ''TALKS WITH IMF HAVE ALWAYS BEEN DIFFICULT AND TOUGH FOR EVERY COUNTRY''

[16] DEPUTY PRIME MINISTER YILMAZ: ''DERVIS IS AN INDEPENDENT MINISTER''

[17] STATE MINISTER GUREL IN TRNC -''EU WILL EITHER MAKE DIVISION IN CYPRUS PERMANENT BY ACCEPTING GREEK CYPRIOT SIDE'S MEMBERSHIP ALONE OR ENDANGER ENLARGEMENT PROCESS UNDER THREAT OF GREECE BY GIVING UP SUCH A MEMBERSHIP''

[01] STATE MINISTER DERVIS: ''THE 57 PERCENT INFLATION RATE TARGET FOR THIS YEAR SHOULD BE ACHIEVED''

Dervis attended the Crans-Montana Forum, the first leg of his 11-day tour to abroad, and explained the economic program.

Stressing that adoption of 17 bills in last 3 months proved that politicians stood behind the economic program, Dervis said that the program should be implemented in a transparent atmosphere and that they attributed great importance to explanation of difficulties that people and economy would face in short term, adding that 60-70 percent of people supported the program.

Recalling that the economic crisis which had erupted in the beginning of the year had stemmed from the crisis in banking sector, Dervis said that businessmen and investors had expressed opinions that the economy was better than it was 10-12 months ago.

Stressing that Turkey was obliged to achieve a 7 percent growth rate to solve its social problems like education, unemployment and health, Dervis said that that target was to reach the point that Spain had reached.

Dervis who addressed a 70-80 member group including also United Nations Specail Representative to Balkans Carl Bildt, Turkish Permanent Representative to the United Nations Murat Sungar and many ministres of foreign countries, said that it was necessary to accelerate reforms and privatization in many fields in Turkey including agriculture.

Responding to reporters' questions about Telekom issue, Dervis said that selection of Telekom Executive Board members had been delayed unnecessarily and that the board comprised successful and professional people.

Dervis will meet with the Prime Minister of Madagascar and the Trade and Economy Minister of United Arab Emirates early on Sunday.

[02] SPORTS - JUDO -15TH INTERNATIONAL BOGAZICI TOURNAMENT STARTS IN ISTANBUL

On the first day of the two-day tournament, Turkey won five gold, three silver and seven bronze medals.

Nearly 200 judokas from 12 countries are competing in the tournament.

The medal-winners on the first day are as follows:

Men

Gold - Ugur Tavukcu (Turkey)

Silver - Bayram Inci (Turkey)

Bronze - Skerlev Suilen (Bulgaria)

Ole Bischef (Germany)

90 kg:

Gold - Ozgur Yilmaz (Turkey)

Silver - Masoud Khosravinezha (Iran)

Bronze - Mekic Amel (Bosnia-Herzegovina)

Selcuk Aksoy (Turkey)

100 kg:

Gold - Fedor Semakov (Germany)

Silver - Patrick Engel (Germany)

Bronze - Tufan Durmus (Turkey)

Yunus Aktas (Turkey)

over 100 kg:

Gold - Selim Tataroglu (Turkey)

Silver - Iliev Ivan (Bulgaria)

Bronze - Saied Khosravin (Iran)

Vahit Abdolahip (Iran)

Women

Gold - Nadyejda Jikakova (Turkmenistan)

Silver - Aylin Verberi (Turkey)

Bronze - Markova Mila (Bulgaria)

Zaburina (Bulgaria)

70 kg:

Gold - Ebru Aktan (Turkey)

Silver - Miteva Maria (Bulgaria)

Bronze - Hulya Bilek (Turkey)

Alesia Nazarin (Turkmenistan)

78 kg:

Gold - Nasiba Salayeva (Turkmenistan)

Silver - Seda Karadag (Turkey)

Bronze - Sema Ibrahimoglu (Turkey)

over 78 kg:

Gold - Zehra Kaya (Turkey)

Silver - Sulgun Aliyeva (Turkmenistan)

Bronze - Gulsen Sonmez (Turkey)

[03] TREASURY TO SELL 5-MONTH BONDS ON TUESDAY

Treasury Undersecretariat will sell 5-month (154-day) bonds on Tuesday, July 3. Treasury foresees a net minimun borrowing of 50 trillion Turkish liras (TL).

The value date of these bonds in July 4, 2001, and the maturity is December 5, 2001.
Meanwhile, Treasury will repay 638.5 trillion TL in domestic borrowing on July 4. Treasury's total domestic borrowing repayments in July will be 5 quadrillion 150 trillion TL.

[04] NET MINIMUM WAGE RISES TO 107.3 MILLION TURKISH LIRAS

In accordance with the Minimum Wage Determining Commission's decision, the gross minimum wage rose 6 million 997.5 thousand TL from 139 million 950 thousand TL to 146 million 947.5 thousand TL as of July 1.

Minimum wage as of years is as follows:

Value Date Gross Minimum Wage Net Minumum Wage

(TL) (TL)
---------------- ------------------ -----------------
September 1994 4.173.750 2.759.428

September 1995 8.460.000 5.547.135

August 1996 17.010.000 11.084.652

August 1997 35.437.500 22.943.025

August 1998 47.839.500 33.808.514

January 1999 78.075.000 57.620.790

July 1999 93.600.000 68.631.120

January 2000 109.800.000 80.550.900

July 2000 118.800.000 86.922.900

January 2001 139.950.000 102.369.600

July 2001 146.947.500 107.323.830

[05] 15 MILLION U.S. DOLLARS OF AGRICULTURAL, ANIMAL AND INDUSTRIAL GOODS EXPORTED FROM GAP REGION TO EAST EUROPEAN COUNTRIES

In the same period last year, the region exported 18 million 599 thousand U.S. dollars of agricultural, animal and industrial goods to East European countries.

Officials at the Southeast Anatolian Exporters' Unions told the A.A correspondent on Sunday that they exported 90 thousand U.S. dollars in livestock; 537 thousand U.S. dollars in grain-cereals; 835 thousand U.S. dollars in dried fruit; and 13 million 863 thousand U.S. dollars in textiles.

[06] LICENCES OF INTERBANK AND ESBANK WHICH MERGE UNDER ETIBANK FRAME TO BE ANNULLED AS OF JULY 2

In accordance with the decision of the Banking Regulatory and Supervisory Authority (BRSA), merger of Interbank and Esbank under Etibank umbrella has been finalized and these two banks' licences to carry out banking transactions and offer banking services will be annulled as of July 2.

With the transfer of Interbank and Eskisehir Bankasi (Esbank) to Etibank, the second frame bank after Sumerbank will be activated.

After finalization of the merger and transfer procedures, Interbank and Esbank branch offices will start giving services as Etibank branch offices as of Monday, July 2.

After the merger, Etibank's total assets will reach 2.8 quadrillion Turkish liras (TL) and its total loss will exceed 1.7 quadrillion TL.

Etibank was established as a state enterprise on June 14, 1935 with instructions of Mustafa Kemal Ataturk to evaluate and operate mining resources and to produce raw materials and energy for industry, as well as to operate within Turkey as a regular bank.

Over the years certain functions such as energy production, coal and iron and steel production were relinquished to other state organizations, and the division of Etibank that operates in the field of banking was converted into a joint-stock company under the name of Etibank Banking Co Inc. on January 3, 1994, but Etibank continues to invest in mineral development, notably copper, precious metals, chromite, bauxite and aluminium, boron, sulphate, and other industrial minerals. In order to avoid overcommitment of resources, much of the development is carried on through joint ventures with foreign partners.

As of end of 2000, Esbank had 91 branch offices, a financial partnership abroad and 1.898 personnel; Etibank had 151 branch offices and 2.035 personnel, and Interbank had 41 branch offices and 1.320 personnel.

Statistics about these banks as of end of 2000 are as follows:

. (Billion TL)

BANK TOTAL ASSETS DEPOSITS PROFIT/LOSS
----- ------------ ------- ---------
Esbank 948.233 895.823 -448.206

Etibank 826.269 852.124 -511.554

Interbank 1.111.458 1.292.980 -782.951

[07] PRESIDENT SEZER: -''CONSIDERATION AND USE OF TURKISH STRAITS AS AN OPTION FOR AN OIL PIPELINE ROUTE CANNOT BE ACCEPTED''

Releasing a statement on the occasion of the Cabotage and Maritime Day, President Sezer, ''Great Leader Mustafa Kemal Ataturk's real goal was to bring Republic of Turkey to the level of developed countries in every field by using resources of the country in accordance with the 'Republic' which is one of the biggest modernization projects of the history.''

''Our people's choosing independent and modern life strengthened Ataturk's projects for the future of the Republic of Turkey. A series of social, political and economic arrangements have been made in order to strengthen the state and to increase prosperity of our people. Within this framework, priviliges on rich resources of the country were lifted, and put to service of people. This accelerated the development of our country,'' he said.

President Sezer noted, ''the Cabotage Law was adopted on July 1, 1926. It was a step consolidating our economic independence as an extension of social and political changes. The law took back our right to sovereignty over our sea, and started an important process for use of our rich marine resources and improvement of our maritime. Today, Turkey is one of the richest countries of the world in regard to marine resources. But we cannot benefit from these resources in an appropriate way. We should use them to develop our country and to increase our people's prosperity.''

''Increase in number of vessels which carry hazardous substance and pass very close to populous settlements on the banks of the Istanbul Straits constitute a source of serious concern for Turkey. Recent developments about transportation of hazardous chemicals and nuclear waste via the Straits increase dimension of threat over the Straits and surrounding settlement units,'' he said.

President Sezer noted, ''consideration and use of the Turkish Straits as an option for an oil pipeline route cannot be accepted. Such a situation poses a serious threat not only for the Turkish Straits, but also for the Black Sea and the Aegean Sea. Security of the Turkish Straits is of vital importance also for all countries using the Straits. Turkey has been fulfilling its responsibilities to provide environmental security of the Straits. We expect all companies and international public opinion to display the same sensitivity.''

Meanwhile, Prime Minister Bulent Ecevit also released a message on the occasion of the Cabotage and Maritime Day.

In his message, Prime Minister Ecevit said, ''Turkish maritime sector has recorded a great progress in the last 75 years. Adoption of the Cabotage Law on July 1, 1926, was one of the most significant steps taken to consolidate economic independence.''

[08] KANBAY WHO WITNESSED MASSACRE OF HIS RELATIVES WHO WERE BURNT ALIVE IN DERINCE VILLAGE BY ARMENIANS: ''I STILL SMELL STINK OF BURNING FLESH AND BONES''

Erzurum's Ataturk University Directorate of Turkish-Armenian Relations Studies Center has begun to carry out excavations in Derince village to document what Kanbay had witnessed.

Witnesses of massacres committed by Armenian gangs in Eastern Anatolia in the wake of the World War I, have still difficulties in forgetting the traces of those gory incidents.

Ninty-year-old Abdulbaki Kanbay who witnessed massacre of Derince village residents in 1919 by Armenians, wants what he had seen to be documented.

Kanbay said, ''I was seven years old when Armenian gangs raided our village. I am one of 17 people who managed to save their lives from Armenians' massacre in the village. Our village's population was nearly 500 then.''

''In the wake of the World War I, Armenians started to settle in our village and live with us. One night, they raided all houses in the village and collected weapons. Residents in the village became defenseless without their weapons. They understood that a serious calamity would happen. But they had nothing to do. Because all neighboring Turkish villages were under occupation of Armenian gangs,'' he said.

Kanbay noted, ''Armenians who learnt that Turkish Army was advancing from Erzurum to Kars, engulfed in panic. Later, we heard that Armenians had collected all young girls in the village, led them to rural area outside the village, raped and killed them. My uncle took my younger brother and me to the mountainous area outside the village. There were Turks fleeing from other village. We survived despite bad weather conditions. One day, we heard that Armenians left our village. My uncle, other people and I decided to return to Derince. When we arrived in the village, there was a terrible silence. Smoke was coming out of a hayloft. A stink of burning flesh and bone was everywhere. And I still smell that stink of burning flesh and bone. It makes me shiver. I witnessed that starving wolfs which came from mountains were eating remains of bodies.''

Kanbay's son Ismet Kanbay who is now the head official of Derince, said, ''I have applied to authorities to document all these incidents. I informed officials at Ataturk University Directorate of Turkish-Armenian Relations Study Center on what my father told us. Armenians slaughtered hundreds of thousands of people in Eastern Anatolia. We are extremely sorry about Armenians' putting forward baseless allegations to deceive the world public opinion.''

Meanwhile, Erol Kurkcuoglu, the Director of Turkish-Armenian Relations Stuy Center, said, ''a 12-member delegation including historians, archaeologists and geographers visited Derince village. Preliminary studies revealed that what Kanbay told was true. In our studies both in Derince village and in archives, we unveiled that Armenian gangs massacred many defenseless civilians in Derince village between 1915 and 1919. We excavated the hayloft and unearthed human bones. We will carry out a detailed examination in coming months.''

He added, ''as a result of excavations in neighboring Subatan village, we discovered that 570 Turks were massacred by Armenian gangs in 1918. A monument was erected in the village out of respect to these people.''

Meanwhile, grave of a 17-year-old girl who was raped and killed by Armenians in front of residents, is now under protection outside the village.

[09] PRIME MINISTER ECEVIT (1): -''NECESSARY ATMOSPHERE FOR ELECTIONS DOES NOT EXIT IN TURKEY FOR THE TIME BEING''

If we hold elections without getting results of these steps, Turkey will suffer a serious damage.''

Speaking at a program on state-run TRT-1 TV Channel, Prime Minister Ecevit said, ''I held a telephone conversation with International Monetary Fund (IMF) Managing Director Horst Kohler yesterday. He explained his views about interest rates. He said that interest raters rose up to 80 percent, and noted that it was an extremely high rate. I told him that we were aware of it, and called on him to work together to solve this problem. It is a sensitive issue.''

Referring to new supplementary taxes, Prime Minister Ecevit said, ''everyone will be obliged to pay 1 million Turkish liras (TL) tax for the transactions made with the state. Everyone having business with the state, can easily affort 1 million TL. When we collect them, a considerable amount of money will be created. There is a serious unfairness in the state's taxation system. Control mechanism is not adequate. We are working to remove this unfairness. When we start to use new technologies, supervision will become easier.''

Noting that Turkey had been going through a difficult period, Prime Minister Ecevit said, ''we had to take some measures. 1 million TL do not constitute a burden on tax-payers. If a person has money to open a bank account, he can give 1 million TL. The most important thing is to activate our domestic sources and to increase these sources.''

Responding to a question, Prime Minister Ecevit said, ''inflation difference will be reflected in salaries of public workers, but there is not a new arrangement yet.''

When recalled of that some circles were talking about early elections, Prime Minister Ecevit said, ''Turkey has taken many important steps on some very important issues. If we hold elections without getting results of these steps, Turkey will suffer a serious damage. Therefore, talking about early elections without completing reformist legislative works, will cause confusion. At the same time, the government has been working in harmony. The government has the necessary majority at the parliament. We are able to take necessary measures. The necessary atmosphere for elections does not exist in Turkey for the time being.''

When asked, ''there are allegations saying that some deputies who became independent after closure of the Virtue Party (FP), would join the Nationalist Movement Party (MHP). Will such a development affect harmony of the government?'' Prime Minister Ecevit said, ''as State Minister and Deputy Prime Minister Devlet Bahceli, the leader of the MHP, said before, any change in number of deputies will not affect the government's structure.''

Referring to recent developments in Macedonia, Prime Minister Ecevit expressed his profound concern.

''A compromise should be reached with ethnic groups as soon as possible. NATO is reluctant to send military troops to the region before a political agreement was reached. If NATO decides to send a force after an agreement is reached in Macedonia, Turkey can make contribution.''

Responding to a question about allegations saying that the terrorist organization PKK had gotten into action in political platform in Europe, Prime Minister Ecevit said, ''an action process has begun in political field. However, some contries are acting carefully on the issue. For the time being, there is not any problem. PKK has been expending efforts to become politicized in Turkey in neighboring countries and in Europe. It is a well-known fact. But it was understood that politicization aimed at hiding the real face of the terrorist organization. We should be careful. Terrorism is about to come to an end. There are still thousands of armed members of PKK in our neighbors.''

When asked, ''France adopted a resolution on so-called Armenian genocide. Is there any new initiative about it?'' Prime Minister Ecevit said, ''we have launched a series of initiatives and will continue to do so. But Turkey has many problems. I think that we should not keep us so much engaged in this issue. The important thing is that we should explain the facts to the public opinion in an effective way.''

Referring to relations between Turkey and Greece, and the issues of Aegean and Cyprus, Prime Minister Ecevit underlined importance of beginning of a dialogue process between the two countries.

''If an appropriate atmosphere is reached, the issues of Aegean and Cyprus can be solved between Turkey and Greece. If the third countries leave us alone, we can solve our problems easily. Turkey has always followed a peaceful method in its relations with Greece. Therefore, there is no need to feel concern.''

(To be continued)

[10] OMANI FOREIGN MINISTER BIN ABDULLAH COMES TO TURKEY

Bin Abdullah was welcomed at Ankara's Esenboga Airport by Foreign Minister Ismail Cem.

Speaking to reporters at the airport, Cem said that he was pleased to see Abdullah and accompanying delegation in Turkey and that there were very good relations between the two countries.

Recalling that his visit to Oman had been very ''successful and friendly'', Cem said that they continued joint works to develop bilateral relations.

Bin Abdullah said in his part that he was pleased to come to Turkey.

[11] STATE MINISTER DERVIS: ''CREATION OF SCENARIOS OVER RUMORS SHOULD END AND DISCUSSIONS SHOULD FOCUS ON ECONOMIC FIGURES''

Dervis continued holding bilateral contacts by attending the Crans-Montana Forum, the first leg of his 11-day visit to abroad.

Speaking to reporters, Dervis said that discussions in Turkey should not be ordinary and aggressive as the Turkish citizens wanted tranquility and job.

''It is not true and appropriate to create scenarios over rumors in Turkey. Discussions should be made over economic figures. For example, it should be discussed whether or not the ten percent exportation target can be achieved within targeted period. We should give up following and making comments on statements of some people. There must be discussion, of course but reducing the aggression dose will be beneficial to Turkey. This is what Turkish citizens expect,'' he said.

Dervis who held bilateral contacts with the Romanian President, Tunisian Prime Minister, Moroccan Finance Minister, Saudi Arabian Oil Minister and the leader of Kosovar Albanians yesterday, met with the Madagascar Prime Minister and United Arab Emirates Economy Minister early on Sunday.

Speaking to reporters following the meeting, Dervis said, ''one should be global in a globalized world,'' adding that the bilateral contacts they held with the leaders of countries were very beneficial.

Giving his meeting with the Tunisian Prime Minister as an example, Dervis said that Tunisia had increased its exports by 22 percent in 5 months, and the Tunisian Prime Minister and he had discussed how Tunisian had achieved such an increase.

Kemal Dervis said that in addition to development of its free areas, Tunisia had drawn a great amount of foreign capital, increasing the production capacity.

Noting that his meeting with the Romanian President was also very beneficial, Dervis said that he had realized during the meeting that Romanian President Ion Iliescu had great sympathy towards Turkey.

Recalling that he had been visiting Crans-Montana for 10 years, Dervis said that he had attended the World Economic Forum as the World Bank Representative.

Recalling that he had paved the way for Bosnia Herzegovina's membership to World Bank after a meeting he had held at a hotel in Davos in 1994, Dervis said, ''as a Turkish citizen, I was very pleased to be a part of acceptance of Bosnia Herzegovina's membership to the World Bank at that night after those very difficult conditions in Bosnia.''

Dervis stressed that he was proud of seeing the Turkish Republic of Northern Cyprus (TRNC) as the fifth country which opened stand at the Crans- Montana Congress Center together with Romania, Monaco, Tunisia and Madagascar.

Recalling that he had visited the TRNC stand and met with TRNC Foreign and Defense Minister Tahsin Ertugruloglu and TRNC Finance Minister Mehmet Bayram, Dervis said that they had assessed the economic position of the TRNC.

Noting that economic problems in Turkey had affected also the TRNC, Dervis said, ''the important thing is extension of support to the TRNC and new economic vision. There can't be a long term and sound development with aid and transfers. Instead, there should be investments and registration of unregistered economy. The Cyprus should not be taken up not only with its political and military dimensions but also with its economic dimension.''

Stressing that 40-60 percent of Turkish society supported the economic program, Dervis added, ''Turks are a nation which has a great common sense and the matter is confidence.''

Meanwhile, Dervis would continue his bilateral contacts in Crans-Montana today and proceed to Geneva early on Monday, sources said.

[12] BAYKAL RE-ELECTED AS CHP LEADER

According to the results of the vote, Deniz Baykal won 732 votes while other candidate Ertugrul Gunay won 380 votes and other candidate Birol Bažaran won 6 votes out of 1,118 votes.

[13] NEWLY APPOINTED ISRAELI AMBASSADOR TO TURKEY SULTAN COMES TO ISTANBUL

Later, Sultan proceeded to Ankara with another plane.

Sultan is expected to submit his letter of credentials to President Ahmet Necdet Sezer on July 6.

Sultan who was born in Egypt in 1938 and settled in Israel in 1949, served at Israeli Armed Forces and Foreign Ministry.

[14] PRIME MINISTER ECEVIT (2): -''OUTLAWED FP HAD HAD A MORE DIFFERENT STRUCTURE THAN OUTLAWED RP OF ERBAKAN''

Speaking at a program on state-run TRT-1 TV Channel, Prime Minister Ecevit said, ''the government has carried out very productive and rapid works since it came to power two years ago. During this period, a total of 312 laws were adopted by the parliament. Most of these laws have the characteristics of structural reforms. We have been struggling against corruptions in a determined way. Such a rapid and widespread struggle has never taken place in Turkey before.''

Prime Minister Ecevit said, ''Turkey has suffered from terrorism for long years. During the 57th government's term in office, terrorism has nearly come to an end. It does not pose a threat any more. Meanwhile, we have recorded great progress in education. Influence of anti-secular trends in education has begun to recede. After terrorism has nearly come to an end, people have begun to return to their villages. Meanwhile, 42 thousand temporary workers at the Directorate General of Rural Affairs have been granted permanent status. Agricultural works have accelerated.''

Underlining importance of supporting alternative products, Prime Minister Ecevit said, ''some products have been overmuch cultivated in Turkey. They are either burnt down or thrown to sea. We are preparing a project to cultivate different products instead of these products.''

Noting that border trade had been improved, Prime Minister Ecevit said, ''important changes were recorded in income level of citizens living in border regions. When I visited southeastern province of Sirnak, I saw brand new buildings in the province.

Responding to a question about purifying land-mines in Eastern and Southeastern Anatolia provinces to open these fields for tobacco production, Prime Minister Ecevit said, ''it is an important decision. It is not clear yet what we can cultivate in these fields. All kinds of plants can be cultivated in these huge lands. Land reform could not be made in one way or another. This problem should be solved. We will give this huge and fruitful land to villagers who do not have their own fields.''

When asked, ''why could not we make land reform? Are there groups putting pressure to prevent land reform?'' Prime Minister Ecevit said, ''there are, of course, groups putting pressure to prevent land reform. There are traditional forces in the region. They have many representatives at the parliament. However, our people have begun to understand inconveniences of feudal system. I hope that we would take some steps on the issue in coming months.''

Responding to a question about minimum wage which decreased under the level of 100 U.S. dollars, Prime Minister Ecevit said, ''we came to this point as a result of last two decades' negligences, populism and irresponsibility. Problems came to the point of eruption. We have started a process to take necessary measures. This process will take time. We took up the problem of domestic source. We have been carrying out a detailed work.''

''In fact, Turkey is rich of domestic sources. But these sources are hidden underground. We should unearth them. A law was adopted by the parliament to this end,'' he said.

When asked of allegations saying that a report was submitted at the latest meeting of the National Security Council (NSC) claiming that some religious orders and sects were absorbed in the state and law system, Prime Minister Ecevit said, ''the issue of fundamentalism was not brought onto agenda of the meeting. The press has a prejudice that 'the NSC does not release any detailed statement. The Council takes up fundamentalism somehow or other.' A summary is submitted at the end of the meeting about what happened last month. In fact, figures in the summary revealed how fundamentalism had receded without making any concession from democracy.''

''Decrease in number of religious dormitories, control of private schools which offer courses to teach Holy Koran, opportunities of eight-year compulsory education and steps taken to this end, are developments strengthening secular and democratic structure in Turkey,'' he said.

Responding to a question about the outlawed FP, Prime Minister Ecevit said, ''the outlawed FP had had a more different structure than the banned RP of Erbakan. However, difficulties on the issue of secularism were still continuing.''

''We have been in favor of making closure of political parties more difficult from the very beginning. We brought the constitutional amendment onto agenda, but we could not provide the necessary majority. If a draft is rejected by the parliament, you can bring it onto agenda again only a year later. I hope that when the constitutional amendment package is brought onto parliamentary agenda on September 17, necessary changes to make closure of political parties more difficult will be made. In a closure case against a political party, it is decided either to close down the party or not to ban it. There should be different alternatives. In principle, it is not correct to punish the whole political party due to executive board's illegal acts,'' he said.

Responding to a question about the row over appointment of Turkish Telekom Executive Board, ''appointment of anyone by me is out of question.''

When asked whether or not State Minister Kemal Dervis for Economy would be involved in politics, Prime Minister Ecevit said, ''this is not an appropriate question. For the time being, Mr. Dervis does not have any connection with politics. He has a very important duty.''

Responding to another question about news stories saying that International Monetary Fund (IMF) Managing Director Horst Kohler expressed his uneasiness about the Emlakbank Law which was not adopted yet, and the Turkish Telekom's administration, Prime Minister Ecevit said, ''these news stories are correct in general. But there is also a mistake. Kohler did not call me on the phone. In fact, I called him. We carried out intense works at the parliament. Some of these works are regarded with our relations with the IMF. I called Mr. Kohler on the phone, and informed him on these works. He has some concerns. In my point of view, these are baseless concerns. If the issue of Telekom had not been discussed so much, the IMF would have not focused on the issue. Appointment of Turkish Telekom Executive Board is one of the details about domestic affairs of our country. He told me that Emlakbank Law had not been adopted yet. In response, I told him that we had submitted the law to President Ahmet Necdet Sezer. I sent a message to President Sezer and said that adoption of Emlakbank Law at the beginning of the week would be beneficial.''

''Our banking system has serious weaknesses. Banking system constitutes a serious problem. We have been seeking a solution and benefitting from experiences of international institutions. On some issues, the government does not have the opportunity to affect, to intervene or to accelerate. Although some circles claim that democracy has deficiencies in Turkey, I think that democracy has also some surplus. There are too many institutions and boards. Sometimes, the government cannot take necessary decisions or it cannot make some institutions take these decisions. This problem should be resolved,'' he noted.

When recalled of that some branches of Ziraat Bankasi were closed down, Prime Minister Ecevit said, ''we should be sensitive toward this issue. Ziraat Bankasi does not deal with only banking. It also contributes to insurance procedures between citizens and the state.''

''Closure of bank branches in rural areas and in small towns will be inconvenient. However, we could not come to a conclusion, because we do not have any authority over the issue,'' he added.

(End)

[15] PRIME MINISTER ECEVIT: ''TALKS WITH IMF HAVE ALWAYS BEEN DIFFICULT AND TOUGH FOR EVERY COUNTRY''

''However, I believe that we will overcome such difficulties as a result of our efforts, works and relations. I suppose that any other country which set up relations with the IMF has not acted in accordance with its commitments as much as Turkey,'' he said.

After speaking at a program on the state-run Turkish Radio and Television channel, Ecevit answered questions of journalists.

Responsing to a question about work on a second legal arrangement to create domestic source, Ecevit said that the work had not reached the point of releasing a statement about it. ''We will finalize works on this matter until the end of parliamentary recession, we hope to finalize them.''

When asked whether the new arrengement was about new taxes, Ecevit said, ''no, it is not. On the contrary, we want to create source to make more contributions to the low-income and middle class citizens and anything which can cause people suffer damage is out of question.''

Responding to a question which said, ''appointment of Telekom board was important for approval of the second loan tranche by the IMF, but IMF said that it was not satisfactory and they added the legal arrangement about Emlakbank. What do you think about these?'' Ecevit said, ''talks with the IMF have always been difficult and tough for every country. However, I believe that we will overcome such difficulties as a result of our efforts, works and relations. I suppose that any other country which set up relations with the IMF has not acted in accordance with its commitments as much as Turkey. All of the expected laws were adopted by the parliament. So I don't think that there would be a problem.''

''The law about Emlakbank has been adopted. The President has the authority, he will observe it. Turkey is a democratic country. Some rules can't be violated to meet IMF's demands. Actually, they don't expect us to do such a thing. So we can always be concerned, worried and uneasy about whether there would be a problem. Because, relations with the IMF have always been difficult for every country. However, we have not encountered a serious problem yet,'' he added.

[16] DEPUTY PRIME MINISTER YILMAZ: ''DERVIS IS AN INDEPENDENT MINISTER''

After attending a ceremony held in Eryaman district of Ankara to lay the foundation of mass housing project covering construction of 7,100 dwellings, Yilmaz answered questions of journalists.

When asked whether or not he agreed with the allegations which said that Dervis seemed as if he was the fourth partner of the government and such a situation would create problems in the future, Yilmaz said, ''Kemal Dervis is an independent minister. He was appointed as a state minister at the cabinet to provide the coordination in the economy. At the moment, he is responsible of implementation of the economic program. From time to time, some differences of opinion occur between Dervis and other ministers about the compromise matter which is a requirement of the program, of course. But as it is seen that these are solved without any problem.''

When asked, ''State Minister Kemal Dervis for Economy brings Turkey's commitments to the International Monetary Fund (IMF) onto the agenda frequently, and he experiences difficulties with coalition partners and other ministers. Will it cause an eruption?'' Yilmaz said, ''no, we have been implementing a very serious program. Three political parties forming the coalition government have taken a risk with implementation of the program. As you know, all laws entailed by the economic program, were adopted before the parliament recessed. Our parliament has displayed an extraordinary effort. There are some decrees and regulations that should be adopted in the next legislative year. At yesterday's meeting among coalition partners, we reviewed them. Meanwhile, the IMF should fulfil its commitments to Turkey.''

Question: You said that coalition partners had taken a risk. What is this risk?

Yilmaz: This program entails us to give up some usual arrangements. It is inevitable that some sections of the society react to these reforms. However, our public opinion is aware of the fact that our government has been paying careful attention to take measures to protect the producers from any damage. All these changes will be made in a time frame. We needed a supplementary source to remove unfair distribution of income, to encourage export and tourism, and to overcome problems of real economy. A supplementary source package will be put into practice to reach these targets. The package was submitted to President Ahmet Necdet Sezer. After the package is put into practice, we will use the sources to be obtained through sale of Treasury's immovable assets and properties and supplementary taxes, to reach these targets.

Question: Do you have concerns about closure of Emlakbank prior to IMF Board's meeting on July 3?

Yilmaz: Any arrangement cannot be put into practice without approval of the President. If President Sezer approves the arrangement about closure of Emlakbank, it will be beneficial in regard to decision to be taken by the IMF Board.

Question: Do you agree with that State Minister Kemal Dervis for Economy acts comfortably because he does not have any concern for getting vote?

Yilmaz: Each economic stability program includes a risk for the government. Governments do not want to implement these programs due to reactions of the society. Although our government is a three-party coalition government, it has taken this risk. It is determined to implement these measures. If we succeed in implementing the program, Turkish economy will reach stability, inflation will decrease, and economy will revive. Earlier, one of the most important problems in stability program of the 57th government was that a certain minister did not carry out coordination of the program. Appointment of Dervis solved this problem. Dervis is an independent minister. He does not have to take into consideration coalition partners' political concerns. He attributes importance to only economic factors of the program. However, coalition partners have to take into consideration some rightful demands. We have to set up a balance between economic program and these demands. Differences of opinions which occur from time to time should not be exaggerated.

[17] STATE MINISTER GUREL IN TRNC -''EU WILL EITHER MAKE DIVISION IN CYPRUS PERMANENT BY ACCEPTING GREEK CYPRIOT SIDE'S MEMBERSHIP ALONE OR ENDANGER ENLARGEMENT PROCESS UNDER THREAT OF GREECE BY GIVING UP SUCH A MEMBERSHIP''

Gurel arrived in the Turkish Republic of Northern Cyprus (TRNC) to attend graduation ceremony at the Yakin Dogu University (YDU) in Lefkosa as the ''honorary guest''.

TRNC Prime Minister Dervis Eroglu, Turkish Ambassador to the TRNC Hayati Guven and YDU officials welcomed Gurel at Lefkosa's Ercan Airport.

Responding to a question about the TRNC's economy, Gurel said that there were economic problems not only in the TRNC but also in Turkey, and that they were altogether trying to overcome those problems.

Noting that they had earlier tried to determine what they could do to recover the TRNC's economy, Gurel said that they had started to implement the decision they had taken.

When recalled of that ''Turkey's warnings about Greek Cypriot side's membership to the EU were defined as threats by Greece and Greek Cypriot side'', Gurel said, ''we don't threaten anybody in our international affairs as a principle of our foreign policy. However, if there are assessments which are beyond realities, we make warnings about them. Separate membership of Greek Cypriot side to the EU will of course draw our reaction, and this matter has become the matter of the EU. Because, the EU will either make division in Cyprus permanent and escalate the tension in Eastern Mediterranean by accepting Greek Cypriot side's membership or endanger the enlargement process under Greece's threat by giving up such a membership.''

State Minister Gurel will return to Ankara on Monday.

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