Anadolu Agency: News in English, 01-08-02

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ANADOLU AGENCY

NEWS

02 AUGUST 2001 Thursday

-TURKEY-PRESS SCAN

These are some of the major headlines and their brief stories in Turkey's press on August 2, 2001. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

HURRIYET (LIBERAL)

Addressing to Necmettin Erbakan, former leader of the banned Welfare Party (RP), former president Suleyman Demirel said, ''the European Court of Human Rights blocked your path. You have to better stop being stubborn and tiring Turkey.'' Commenting on the ECHR's decision of the RP, Demirel said, ''this decision eternally closed the path of those who carry out activities against the regime by hiding themselves behind the shield of freedom of thought in Turkey.''

STUBBORNNESS CONTINUES ALSO IN EMBLEM

The emblem of the Felicity Party (SP) was introduced. It was perceived that those five starts were representing the 5 political parties which had been earlier founded and later banned.

''DON'T WORRY. THERE IS NOT ANY PROBLEM IN THE GOVERNMENT''

Prime Minister Bulent Ecevit gave the Turkish Armed Forces commanders the message that ''everything is all right'' regarding the issue of ''dispute among the coalition government partners'' which negatively affected the economy and cuased the soldiers fell concern. Noting that such arguments were natural in democracies, Ecevit said, ''the important thing is a compromise among the partners in the end. Actually, they reach a compromise. ''

MILLIYET (LIBERAL)

World Bank report on Turkey includes striking realities. Here is the caustic reality: ''people got poor, they eat only bread and drink water.'' World Bank which initiated Social Risk Mitigation Project in Turkey carried out a survey in Eastern, Central and Southeastern Anatolia and Black Sea region and metropols like Istanbul and Ankara before the project. The survey brought striking results. According to the report, some measures to recover situation of the poor should be immediately taken, the state's social aid and service system should be re-built and minimum health and education services should be given and business opportunities should be created for the 8 percent poorest circle. World Bank allocated 500 million U.S. dollars source for this project. The project will cost 748 million U.S. dollars.

TAYYIP'S MERVEs

Recep Tayyip Erdogan, the head of the reformist movement which left the conservatives after closure of the Virtue Party (FP), was seeking 20 modern women who don't wear Islamist-style headscarf. However, except Meral Aksener, there are only three women included Tayyip's list published in Yeni Safak newspaper. Two of these three women are wearing headscarf and one of them was sacked from the university she was working at due to her pro-fundamentalist book.

MR. MINISTER ATTAINS HIS DESIRE

State Minister Sukru Sina Gurel got married yesterday with Zeliha Sapmaz, Press Advisor French Embassy in Ankara. Gurel divorced from his wife on April 18 for Sapmaz's sake. Sources said newlyweds would spend their honeymoon in Hawaii.

RUSSIAN POLICE RAIDS PKK CAMP AT LAST

Russian Itar-Tass agency reported that Russian police had revealed a terrorist PKK camp in Yaroslavl city which was 300 kilometers northeast of Moscow. It said that Russian police had revealed the camp during an investigation into abduction of a Syrian businessman. Noting that the camp had been set up in a holiday village with the help of Syrian director, and that he had been arrested. Although the Turkish authorities had stated for years that the terrorist PKK was using the camp for training, Russian authorities had claimed that the camp was a ''culture center''.

SABAH (LIBERAL)

World Bank will distribute 500 million U.S. dollars among poor people through the Social Solidarity Fund known as Fak-Fuk-Fon. World Bank started talks with the government to help the destitute people who are suffering serious difficulties due to the economic crisis. Works will end in September at the latest and distribution of 500 million U.S. dollars to be given by the World Bank will start as of November. Two million families are expected to benefit from this aid. The aid worth of almost 650 trillion Turkish liras will be distributed through the Social Solidarity Fund, but World Bank's experts from the bank's representation in Ankara and headquarters in Washington D.C. will control the distribution process. The aid aims to help the poor families' children to continue their education and meet their medical care and medicine requirements.

U.S. DOLLAR ERA TO END

The government's scenario on the interest rates, inflation, U.S. dollar currencies and growth rate until 2003 which it has not publicly announced is published by the Turkish press for the first time. Although it is a scenario, achievement of those figures will be a condition of the tenth review. The government sent yesterday the letter of intent it prepared after the end of works on ninth review, to the IMF. The letter of intent includes many projections which have not been announced yet. According to the letter of intent, the U.S. dollar current is foreseen to be 1 million 305 thousand 503 Turkish liras (TL) at the end of 2001 while annual devaluation will reach 94.3 percent. One of the most interesting points among the projections is that the monthly devaluation in the first half of the second year of the program is foreseen to be 1.3 percent and 1.2 percent in the second half of 2002. With this respect, TL is foreseen to gain 16 percent in value against U.S. dollar in 2002. U.S. dollar is foreseen to be 1,515,367 TL at the end of 2002 and 1,667,417 TL at the end of 2003. Treasury bond interest rate which is current at about 90 percent will reduce to 54 percent at the end of 2001 and to 36 percent at the end of 2002. Inflation rate in wholesale prices will be 66 percent and consumer prices will be 58 percent this year.

GROWTH TO START IN 2002

While announcing the program, State Minister Kemal Dervis had said that Turkey's main target was sustainable and rapid growth. However, the year- end shrinkage target which had been foreseen to be 3 percent was revised as 5.5 percent shrinkage during IMF Frist Deputy Managing Director Stanley Fischer's visit to Turkey. According to the scenario in the supplementary letter of intent, the 4.2 percent shrinkage in the gross national product in the first quarter of the year is foreseen to reach 9.1 percent in the second quarter. According to the scenario, growth is impossible also in the second quarter of the year. Foundation of growth will be laid in the first quarter of 2002. This year, manufacturing industry and service sector are expected to shrink by 4.6 percent. However, service sector will be the engine of growth in 2002.

YILMAZ'S PLAN

State Minister, Deputy Prime Minister and leader of the Motherland Party (ANAP) Mesut Yilmaz is getting prepared to advance: he will re-arrange circle of his senior aides and group sharing common pursuit and he will prepare a Turkey program. Later, he will propose Kemal Dervis: ''let's win the elections. I will be the Prime Minister and you'll be the Deputy Premier.''

CUMHURIYET (LEFT)

Turkey wants domestic production of King Cobra helicopters but the United States approaches unwillingly toward transfer of technology. It is said that Turkey did have the intention to direct itself toward other sources due to problem its encountered with the United States about transfer of technology in purchases of arms.

TURKISH COMPANIES AMONG TOP 100

Aselsan, Havelsan and Turkish Aerospace Industries (TAI) were included in the list of 100 Major Defense Companies in the world released according to Defense News' research results.

RADIKAL (LEFT)

Nationalist Movement Party (MHP) leader Devlet Bahceli made IMF First Deputy Managing Director Stanley Fischer feel at ease with a determining he made about Fischer's concern that his party was against the economic program. Fischer enters Bahceli's room at the Prime Ministry Office during his contacts in Turkey to which he attributes importance. The question that Fischer wants to get an answer before standing surety for the government is this: ''Does the MHP really support the economic program?'' At first, Bahceli explains that the program belongs to the government not to the IMF and later he made Fischer feel at ease with these remarks: ''we are aware that the MHP will be kept responsible if the program fails. And the responsible abroad will be the IMF, right?''

TIME TO FOCUS ON MANUFACTURING RECOVERY

World Bank Turkey Representative Ajay Chhibber said Turkey's efforts to overcome a lingering economic crisis should focus on the manufacturing sector's recovery. ''It is time to bring the focus of efforts to emerge from the crisis in Turkey from the financial sector to the manufacturing sector and social issues,'' Chhibber said and added that the World Bank next week would begin talks with the Turkish government to rescue the manufacturing sector. He said high interest rates, troubled public and budget financing and the ailing banking system have hit the manufacturing sector worst.

TURKIYE (RIGHT)

Fifty Turkish companies which had been distressed by the economic crisis went to Switzerland. These companies to which the Swiss government offered tax, employment, and finance facilities have increased their profitability between 15 and 40 percent.

I FELT LIKE I WOULD DIE ON SUMMIT

State Minister Fikret Unlu who climbed Agri Mountain said, ''I was saved from falling in the last minute. Our foodstuffs finished. We ate grass and snow.''

ZAMAN (CONSERVATIVE)

Turkish Exporters Assembly (TIM) announced that exports from Turkey had risen 13.3 percent in the January-July period of 2001. TIM said that the seven-month total exports had reached 29 billion U.S. dollars.

RECORD FINE TO TURKCELL

The Competition Board sentenced Turkcell to 6 trillion 973 billion 129 million Turkish liras fine. The board decided that Turkcell had taken unfair advantage of its dominant situation over the market.

CIM BOM EASILY QUALIFIES TO 3RD ROUND

Galatasaray easily reached European Champions League third qualifying round by beating Albania's Vllaznia 4-1 in the second qualifying round second leg away (6-1 on aggregate). They will take on Bulgaria's PFC Levski Sofia in next round.

HAIL HITS IZMIR

Hail and storm started after territorial rains paralyzed daily life in Izmir yesterday. Three people who stepped on puddles on which broken power lines felt down were killed. Hundreds of houses and business places were inundated.

CONTENTS

[01] IMF EXPECTED TO APPROVE 3RD TRANCHE OF LOAN TO TURKEY ON FRIDAY

[02] 12TH ANNIVERSARY OF GULF CRISIS -GSO CHAIRMAN KOCER: ''WE BECAME THE LOSER''

[03] EXPORTS OF AGRICULTURAL, ANIMAL AND INDUSTRIAL PRODUCTS FROM SOUTHEAST RISE 12.2 PERCENT IN FIRST 7 MONTHS

[04] AUTOMOTIVE SECTOR EXPORTS PRODUCTS TO 160 MARKETS SINCE BEGINNING OF 2001

[05] AYCELL TO START GIVING SERVICE IN MID-AUGUST

[06] EXPORTS FROM KAYSERI RISE 59.7 PERCENT IN FIRST HALF OF 2001

[07] KUWAIT EXPRESSES GRATITUDE TO TURKEY

[08] COUNCIL OF MINISTERS MEETING ENDS (1) -STATE MINISTER AND GOVERNMENT SPOKESMAN TOSKAY: ''STATE MINISTER DERVIS ESTIMATED THAT NO PROBLEM WILL BE EXPERIENCED REGARDING THE DECISIONS THAT WILL BE TAKEN IN IMF EXECUTIVE BOARD MEETING''

[09] TOBB EXPENDS 100 MILLION U.S. DOLLARS CREDIT TO SMSEs

[10] COUNCIL OF MINISTERS MEETING ENDS (2) -STATE MINISTER TOSKAY SAYS REDUCING TAX RATIOS DOES NOT ALWAYS MEAN LOSS OF TAX INCOMES

[11] TURKEY SAYS RESOLVED EFFORTS TO IMPROVE DEMOCRACY AND HUMAN RIGHTS STANDARTS TO CONTINUE

[12] STATE MINISTER DERVIS POINTS OUT THAT 30 TRILLION LIRA FUND IS NEEDED FOR REHABILITATION OF CAYKUR

[13] SYRIAN DEPUTY FM NASSER SAYS FRIENDSHIP COOPERATION DOCUMENT TO TAKE ITS FINAL FORM AFTER CEM'S VISIT TO SYRIA

[14] STATE MINISTER DERVIS SAYS TURKEY AND ARGENTINA COULD NOT EVEN BE COMPARED REGARDING ECONOMIC CRISIS

[01] IMF EXPECTED TO APPROVE 3RD TRANCHE OF LOAN TO TURKEY ON FRIDAY

The board will evaluate Turkey's supplementary letter of intent at the meeting.

Following approval of the new loan tranche, almost 1.5 billion U.S. dollars source is expected to be sent to Turkey early next week.

Meanwhile, IMF officials said that they did not expect Turkey to encounter a serious economic problem in August after release of the third loan tranche which would relieve Turkey's economy.

Turkey's supplementary letter of intent is expected to focus on macro economic targets which had been reviewed within frame work of latest developments.

Following its meeting on Friday, IMF Executive Directors Board will recess for two weeks.

IMF delegation headed by IMF's Turkey Desk Chief Juha Kahkonen is foreseen to visit Turkey again in the end of August or early September to carry out 10th review works.

The fourth tranche of IMF loan to Turkey worth of 3 billion U.S. dollars is targeted to be approved after September 20.

The fifth tranche worth of 3 billion U.S. dollars is planned to be released after November 15.

[02] 12TH ANNIVERSARY OF GULF CRISIS -GSO CHAIRMAN KOCER: ''WE BECAME THE LOSER''

''We have always been the loser while others became the winners,'' he said.

Speaking to the A.A correspondent, Kocer said that the Gulf Crisis process which had started with occupation of Kuwait by Iraqi troops entered its 12th year, adding that Turkey became the country which had encountered most serious negativities while many countries had gotten rich during this process.

Noting that the Gulf Crisis process had caused Turkey which had suddenly found itself in the crisis to lose many things, Kocer said, ''as a result of the geography where it is located in and its structure which is open to abroad, Turkey must always be prepared agaisnt such developments, but we did not deserve what we have encountered and moreover, we don't have the power to bear it any more.''

''The Gulf Crisis process became missing years for Turkey while it has turned into years of direct profit and earnings for Jordan, Saudi Arabia and even Syria and Iran,'' he said.

''Turkey is watching only. World's leading companies which are companies of countries that decided on continuation of embargo have indirect commercial relations with Iraq. These countries make the economic embargo a stronghold which can't be surmounted when Turkey is in question. Those who raise objections when Turkey refers it as embargo do not leave Iraq for some reason or another,'' he said.

[03] EXPORTS OF AGRICULTURAL, ANIMAL AND INDUSTRIAL PRODUCTS FROM SOUTHEAST RISE 12.2 PERCENT IN FIRST 7 MONTHS

The region had exported 310 million 298 thousand U.S. dollars of agricultural, animal and industrial products in the same period last year.

According to the Southeast Anatolian Exporters' Associations statistics, 6 million 805 thousand U.S. dollars of livestock and animal products, 58 million 219 thousand U.S. dollars of grain-cereals, 25 million 581 thousand U.S. dollars of dried fruits, 214 million 315 thousand U.S. dollars of textiles and 43 million 317 thousand U.S. dollars of fresh fruits and vegetables were exported in the January-July period of 2001.

Meanwhile, the region exported 674 thousand U.S. dollars of livestock and animal products, 8 million 379 thousand U.S. dollars of grain-cereals, 3 million 823 thousand U.S. dollars of dried fruits, 30 million 492 thousand U.S. dollars of textiles and 9 million 795 thousand U.S. dollars of fresh fruits and vegetables and industrial products in July 2001.

[04] AUTOMOTIVE SECTOR EXPORTS PRODUCTS TO 160 MARKETS SINCE BEGINNING OF 2001

According to the Uludag Exporters Associations statistics, 2 billion 275 million 942 thousand U.S. dollars of foreign exchange income had been obtained through exports to 8 free areas and 160 countries and autonomous regions in the first seven months of the year.

The automotive industry exported goods for the first time this year to 15 countries and autonomous regions and 1 free area including Burundi, Marshall Islands, Angola, Haiti and Tanzania.

Top ten markets to which the automotive industry exported products in the first seven months of 2001 are as follows:

. Exports Difference

Country/Free Area (USD 1.000) (percent)

-------------------- --------- --------
Germany 566.120 66.6

France 339.559 46.6

Italy 287.058 95.4

U.S. 88.402 -10.6
Britain 84.636 46.8

Spain 62.703 122.9

Belgium 54.080 74.6

Iran 52.525 315.3

Istanbul Leather Free Area 51.689 -39.1

Egypt 42.017 1.8

[05] AYCELL TO START GIVING SERVICE IN MID-AUGUST

Sources said that Aycell which would be in service in Ankara, Istanbul, Izmir, Adana, Bursa, Antalya and Mugla with 1.000 base stations at first stage targeted to spread its network throughout Turkey within 5 months.

Meanwhile, sources added that talks between Aycell and other operators Turkcell, Telsim and Aria on roaming agreements which foresaw use of infrastructure of these operators by Aycell were under way.

[06] EXPORTS FROM KAYSERI RISE 59.7 PERCENT IN FIRST HALF OF 2001

Officials at the Kayseri Chambers of Industry and Trade told the A.A correspondent on Thursday that exports from Kayseri had been made to European Union countries, United States, Saudi Arabia, United Arab Emirates, Kuwait, Yemen, Jordan, Syria, Israel, Iraq, Malaysia, Indonesia, Japan, South Korea, Azerbaijan, Turkmenistan, Kazakhstan, Uzbekistan, Egypt, Tunisia, Algeria, Nigeria, Kenya, Zambia, Republic of South Africa, Ukraine, Romania, Hungary, Czech Republic, Poland, Russia, Canada, Brazil, Panama and Venezuela.

Mostly exported goods were denims, carpet, cloth, towel, thread, fibre optic cable and telephone cable, steel pipe, furniture, electric households, various foodstuffs, steel hawser, bed, and quilt.

[07] KUWAIT EXPRESSES GRATITUDE TO TURKEY

Issuing a written statement upon the 11st anniversary of Iraqi invasion of Kuwait on August 2, 1990, the Kuwaiti Embassy in Ankara thanked the countries which helped Kuwait in saving itself from the Iraqi invasion.

''The State of Kuwait remembers with gratitude the Turkish government and the nation, who rejected the invasion and who defended the independence of Kuwait and its sovereignty over its territories and borders and who helped us to save ourself from Iraqi invasion by their heroic attitude,'' the Embassy noted.

Calling on the international society to abide by all the resolutions of the U.N. Security Council, the Embassy said that the sanctions on Iraq have to continue until the Iraqi regime gives back the things it stole from Kuwait.

Noting that the Iraqi invasion continues to affect adversely Kuwait, the Kuwaiti Embassy in Ankara invited all countries to do what is necessary to make Iraqi regime to give up its ''threatening and provocative policy'' on Kuwait.

[08] COUNCIL OF MINISTERS MEETING ENDS (1) -STATE MINISTER AND GOVERNMENT SPOKESMAN TOSKAY: ''STATE MINISTER DERVIS ESTIMATED THAT NO PROBLEM WILL BE EXPERIENCED REGARDING THE DECISIONS THAT WILL BE TAKEN IN IMF EXECUTIVE BOARD MEETING''

Toskay said, ''Dervis underlined that preparations should start in the coming weeks pertaining to the 2002 year budget for the implementation and success of the economy program.''

Toskay briefed the journalists following the Council of Ministers meeting which lasted for 1.5 hours.

Noting that Prime Minister Bulent Ecevit gave information about the flood disaster which occurred in Aegean Izmir province, Toskay said the Council of Ministers expressed their sorrow over the disaster.

Toskay said Ecevit also shared his impressions about the visit of Stanley Fischer, the IMF First Deputy Managing Director, to Turkey, adding that State Minister Kemal Dervis gave information about general economic situation.

Toskay said Dervis told them that studies of the IMF regarding the review of the economic program did not have much difficulty, and that the IMF Executive Board would convene on Friday.

Toskay said, ''we all think that second half of July is calmer and more balanced in the markets when compared with the first half. The belief that we will experience a more positive development in current accounts deficit this year when compared with the year 2000 prevails on all of us.''

The Government Spokesman said next year would be a more important one, noting that, ''Dervis underlined that works, regarded with the preparation of the year 2002 budget, should seriously start in the coming days for the implementation of the economic program and its success.''

State Minister Toksay said Husnu Yusuf Gokalp, the Minister of Agriculture and Rural Affairs, gave information about the grains purchases of the Soil Products Office (TMO).

He said total purchase of TMO as of Wednesday was approximately 1.8 million tonnes, noting that the cost was 256 trillion lira. He said 203 trillion lira of this cost was paid.

Toskay said Gokalp told them that finance need of the TMO had been 1.5 billion U.S. dollars in the year 1998, noting that this number was reduced to 570 million U.S. dollars in 2000.

Toskay said Gokalp also briefed the ministers about the Alternative Product Project meeting which he attended on Wednesday.

Pointing out that Finance Minister Sumer Oral gave information to the Council of Ministers about the studies which were undertaken for implementation of the law, regarded with sale of immovables belonging to the Treasury.

''The minister said a special organization and a unit was established within the body of the Finance Ministry. This unit works intensely,'' Toskay said, adding that, ''another unit was set up in Istanbul as it is a very important province for those implementations. They have stated that the works continue very quickly and effectively.''

Toskay said State Minister Hasan Gemici briefed the Council of Ministers about the activities of Social Aid and Solidarity Foundation and that Edip Safter Gaydali, the State Minister, gave information about the Joint Economic Commission meeting held with Iraq.

[09] TOBB EXPENDS 100 MILLION U.S. DOLLARS CREDIT TO SMSEs

State Minister Tunca Toskay thanked to TOBB Chairman Hisarciklioglu, pointing out that acting together was very important in this difficult period.

Toskay said TOBB and Eximbank signed a protocol pertaining to the 100 million U.S. dollars credit agreement, adding that the source would immediately be conveyed to the real sector and producing sector rapidly.

Toskay said this initiative of the TOBB was a positive step for social solidarity and strengthening of confidence atmosphere in Turkey, stressing that he hoped this would form an example to the non-governmental organizations.

When asked if there was any resource transfer from the budget to Eximbank, Toskay said 186.5 trillion lira was lastly transferred from the budget to Eximbank.

Meanwhile, Rifat Hisarciklioglu, the TOBB Chairman, said time came for the Turkish private sector to find and create their own resources. Pointing out that the protocol regarded with this was signed, Hisarciklioglu said all other non-governmental organizations and unions should contribute to Eximbank to make the wheels of the economy work again.

Hisarciklioglu said he wished the finance, which will be a cure to the problems of the Turkish industry, would be created altogether.

Ahmet Kilicoglu, the Eximbank General Director, said Eximbank, which is the biggest supporter of the exportation, provided 1.8 billion U.S. dollars credit to the exporter so far, noting that 685 million U.S. dollars of this was used in the SMSEs.

[10] COUNCIL OF MINISTERS MEETING ENDS (2) -STATE MINISTER TOSKAY SAYS REDUCING TAX RATIOS DOES NOT ALWAYS MEAN LOSS OF TAX INCOMES

Responding to questions of journalists about the inflation rate foreseen for July, 2001, Toskay said that ''we can't foresee anything right now, when the inflation rate is announced, we will see it altogether.''

When a question asked to him if the issue of revision in the cabinet was discussed, Toskay said that the issue was not taken up in the meeting.

Upon another question about the decision of the government to decrease the Value Added Tax (VAT) of transfer of energy installations, Toskay said that ''there is sometimes interesting relation between the issues of tax and economic development. I don't remember the details of this issue. But I want to say that when the state decreases the taxes, your total tax revenue can increase in the end. Decreasing the tax ratios does not always mean loss of tax incomes.''

When asked about the alternative products included in the alternative products project, Toskay said that ''Certainly the Minister of Agriculture will give you detailed information about this issues. He explained the plants that can be cultivated in place of tobacco in east and southeast of Turkey and he also thinks that development of animal husbandry in the region can also be an alternative sector. The project is underway.''

Upon a question about economy, Toskay said that ''Mr. Dervis explained his expectations about the IMF Executive Board meeting to be held tomorrow and he added that the second half of July has been more positive and calm in respect of markets.''

[11] TURKEY SAYS RESOLVED EFFORTS TO IMPROVE DEMOCRACY AND HUMAN RIGHTS STANDARTS TO CONTINUE

Addressing the 53rd meeting of the U.N. Human Rights Sub-Commission meeting, Erdogan Iscan, Turkey's Deputy Permanent Representative to U.N. said that Turkey wanted democracy and human rights for its own nation, adding that Turkey won't return back from this process which started with resolution.

Showing the legal amendments the government undertook and the international conventions Turkey signed for improvement of human rights and democracy as examples of the government's resolution, Iscan said that Turkey is in cooperation with human rights observers.

Iscan explained the resolved steps of the government by giving examples the reconstruction in State Security Courts (DGMs), repentance law, the punishments given torturers under Articles 243, 245 and 354 of the Penalty Code and formation of the Human Rights Commission.

Iscan said that Turkey signed the international conventions of ''Civil and Political rights'' and of ''Economic, Social and Cultural Rights'' and it also started the process for approving the convention on prevention of all forms of racism.

Iscan remarked that improvement of the prison conditions comes among the priorities of the government, adding that the F-type prison project started with the prison reform in line with international standarts.

F-type prisons abide by the European standarts, said Iscan and added that the hunger strikes were organized by gang groups in prisons.

The operations launched in prisons aimed to end inmates's dying because of hunger strikes, he said and expressed regret over the death of several security forces personnel and inmates during the incidents that took place in the prison during the operation return to life.

Iscan indicated that Turkey has close cooperation with human rights institutions, adding that Asma Jahangir, Special Rapporteur on Extrajudicial, Arbitrary and Summary Executions came to Turkey last February and Francis Deng, the special representative of U.N. Secretary General for Internally Displaced Persons will visit Turkey soon.

The meeting in Geneva will continue till August 17.

[12] STATE MINISTER DERVIS POINTS OUT THAT 30 TRILLION LIRA FUND IS NEEDED FOR REHABILITATION OF CAYKUR

Dervis made general economic evaluations during the Council of Ministers meeting today.

Briefing about rehabilitation of CAYKUR, Dervis said the 30-trillion lira fund was need for increase of capital, retirement of some personnel, and payment of pruning costs, which was a commitment of the state.

Dervis wanted the Finance Ministry to transfer this money.

Finance Minister Sumer Oral pointed out that works regarded with the issue continued.

[13] SYRIAN DEPUTY FM NASSER SAYS FRIENDSHIP COOPERATION DOCUMENT TO TAKE ITS FINAL FORM AFTER CEM'S VISIT TO SYRIA

Nasser who presided the interdelegationary meetings together with Foreign Ministry Deputy Undersecretary Ugur Ziyal, talked to reporters after the meetings.

The guest deputy foreign minister said that they took up bilateral relations in his meetings on Wednesday and added that they exchanged views about regional issues particularly the Middle Eastern and Iraqi issues today. His contacts have been very useful and constructive, said Nasser and noted that he explained the views of Syria to Turkey about the Middle East Peace Process. He said that Syria is concerned about security following the recent developments in the region.

Nasser said that Syria extends support to the efforts started to reconstruct the peace process, commenting ''yet the Mitchell Report has been deficient in finding solution to the problem.''

Upon a question, Nasser said that it was by chance that his visit came just before Israeli Prime Minister Arial Sharon's visit to Turkey, adding that he didn't give any message to Turkey to be conveyed to Sharon.

Nasser said that he also took up the issue of Iraq in his contacts, adding that he explained the views of Syria which thinks that sanctions on Iraq has to be lifted and the suffering of the Iraqi people has to end.

Nasser stressed that Turkey and Syria are beyond the Declaration of Principles, and they work for Friendship Cooperation Document, adding that the new document will take its last form after Cem's visit to Syria.

Nasser said that he can't give a specific date about Cem's visit ot Syria, adding that Syria hoped it to take place soon. Nasser said that the document will cover all the developments seen in the relations between the two countries to date.

When asked if the document would refer to Hatay, the guest deputy foreign minister said that the document only covers the cooperation process between the two countries.

The Turkish side accepted the proposal of the Syrian side which wanted to abolish the declaration of principles as the relations between the two countries developed and a good will note has to be put instead of it.

According to the new proposal, the progress recorded in the relations to date and the things that will take place from now on will be put forward.

In return to the proposal of Syria to live in friendship with Turkey from now on, Turkey said that it is always ready for that, adding ''yet each country has to act properly'' referring to the attitude of Syria about the issue of Hatay.

Nasser also thanked Turkey for its giving 500 cubicmeters per seconds to Syria, adding that this was the sign of a good will between the two countries.

Meanwhile, Foreign Minister Ismail Cem accepted the invitation of Syrian Foreign Minister Faruq Al Shara, ading that the visit can't come true before one month.

After examining the new good will note prepared by Syria, the Turkish side will prepare its own document and the final note accepted by both sides will be signed during Cem's visit to Syria.

A new step has been taken in the relations between Turkey and Syria, however Turkey acts very cautiously and assumes a clear attitude on this issue.

Turkey and Syria reparted to have similar views about the ''smart sanctions'' which the U.N. will bring onto agenda again in the coming days.

Nasser who completed his contacts in Ankara today will leave Ankara on Friday.

[14] STATE MINISTER DERVIS SAYS TURKEY AND ARGENTINA COULD NOT EVEN BE COMPARED REGARDING ECONOMIC CRISIS

Prime Minister Bulent Ecevit, who addressed the meeting, pointed out that they succeeded to solve very important problems, noting that Turkey will be able to overcome the problems which may erupt in the future.

State Minister Dervis pointed out that Turkey and Argentina could not even be compared in regard to economic crisis, emphazizing that the two countries implemented totally separate economic models. He said the economic model implemented in Turkey was more realistic. He said 15 percent increase is given to the salaries of civil servants in Turkey whereas salaries were reduced in Argentina. He said they did not have any concern about a social explosion in Turkey.

Dervis said positive developments would be recorded in economy after IMF Executive Board approves the third loan tranche.

Meanwhile, Foreign Minister Ismail Cem, who also addressed the meeting, expressed his concern that the poverty credit that will be provided from the World Bank might give damage to the image of Turkey in international arena because of misunderstandings. He said this aid was not a donation and it would be paid back.

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