TRKNWS-L Turkish Daily News (March 28, 1996)

From: TRKNWS-L <trh@aimnet.com>

Turkish News Directory

CONTENTS

TURKISH DAILY NEWS / 28 March 1996

[01] President Demirel begins US visit for talks with Clinton

WASHINGTON- President Suleyman Demirel arrived Wednesday in the U.S. capital for three days of intensive talks which include Senate majority leader, presidential candidate Robert Dole and the Washington Post editorial board.

The president's contacts start with a breakfast meeting with the Washington Institute for Near Eastern Policy, where he will make a speech on "Turkey's Role in the New World Order." Then he will head for interviews with the Washington Post, the Washington Times and CNN. Later on Thursday, he will hold meetings with Dole, Democrat Party Senator Robert Byrd and House Speaker Newt Gingrich.

Also on Thursday, he will participate in a luncheon with businessmen and sign the Agreement for Prevention of Double Taxation.

Demirel's meeting with President Bill Clinton will be on Friday at noon. Later, he will meet Secretary of Commerce Ron Brown (who is scheduled to visit Turkey later) and Energy Secretary Hazel O'Leary. The agenda of his meeting with O'Leary revolves around the Caspian oil pipeline.

Friday afternoon, Demirel will make a speech at Georgetown University, where he will also be given a medal of rectorship.

The same evening, he will meet with the Turkish community in the Turkish Embassy in Washington. He will mark the end of his working visit with a press conference for Turkish journalists.

Demirel will leave for Turkey on Saturday, after meeting Colin Powell, the former chief of staff.

Addressing reporters at Ankara's Esenboga Airport before his departure, Demirel said that the ties between the United States and Turkey had moved beyond being solely concerned with security and had become a relationship of "broad-based cooperation," the Anatolia news agency reported.

"In the past, our relations mostly focused on security issues; now, we are making efforts to increase our cooperation in the fields of commerce, economy, science, culture and technology," Demirel was quoted as saying.

The make-up of the accompanying delegation indicates that the situation in Iraq, with particular emphasis on the power vacuum in the north, will be high on Demirel's agenda. The Foreign Ministry's diplomats responsible for the Middle East and intelligence are accompanying Demirel, who has had a series of contacts with the leaders of Israel, Palestine, Egypt and Jordan before the Washington visit. The Turkish president is expected to convey to Clinton his views on the Middle East peace.

Another eye-catching name on the list is Ayhan Kamel, the Foreign Ministry's coordinator on the Karabakh conflict. Kamel recently travelled to Baku and Yerevan to convey Demirel's message to his Azeri and Armenian counterparts.

The issues to be discussed are not very different from what was discussed between Demirel, then prime minister, and George Bush, then president, in 1992. The question of Iraq's territorial integrity, the question of terrorism and the Middle East issues are still firmly on the agenda. 1992's focus on Central Asia, however, has been replaced by concern about the Caucasus.

It is interesting that Demirel's adviser on the visit of 1992, Emre Gonensay, is now accompanying him as foreign minister.

[02] DYP issues 'early warning' to coalition partner ANAP

TDN Parliament Bureau

ANKARA- Prime Minister Mesut Yilmaz's comment that the Turkish economy is sick, has triggered a warning from the coalition-partner True Path Party (DYP) that Yilmaz, who took the first turn at the rotating premiership, should not intervene too much with the precarious balances of the economy.

Dogan said that though Yilmaz complained about the budget deficit, the first thing he did after taking office was to scrap the $100 levy to the Housing Fund which Turkish nationals had to pay each time they went abroad. That was a big mistake, he told the TDN.

Warning against faulty policies on six issues affecting economic stability, he counseled strict steps to curtail state expenditures for balanced budget.

He said he had turned over an economy with favorable indicators to Yilmaz government except for the inflation rate.

"The growth rate was to reach 7.6 percent at the end of 1995.

Since the final quarter of 1995 the manufacturing industry sector has enjoyed full capacity utilization. Between 1992-1995, $39 billion were spent on investment. In 1995 $3 billion of foreign capital inflow was permitted by the authorities and the actual foreign capital inflow was estimated to be $1.2 billion," dogan detailed.

Dogan indicated that the 1995 export revenue figure is believed to be $21.8 billion, marking a 25 percent increase over the preceding year. Annual imports are estimated to be $35 billion. The current account of Turkey's balance of payments is expected to show for the year 1995 a $2 billion deficit due to the foreign trade deficit which stems from growth in demand.

The estimated 1995 budget deficit is TL 316 trillion in nominal prices, lesser than the 1994 deficit, Dogan said.

The share of the Domestic debts in GNP was below the world average, he said.

The foreign debt stock amounted to $67,815 million at the end of the third quarter of 1995 and were in a highly favorable state also from the standpoint of meeting the "Maastricht criteria" except in the area of inflation.

Total bank deposits have continued to expand, rising to $40.4 billion at the end of 1995 and exchange rates have been stabilized while gross Central Bank reserves climbed to $24.6 billion.

Dogan's suggestions to Yilmaz

Yilmaz and Finance Minister Lutfullah Kayalar painted a grim picture of the economy in their budget speeches.

In line with instructions of DYP leader Tansu Ciller, Dogan had his aides compile a 37-page booklet entitled "Turkish economy 1995".

Explaining the book, Dogan made the following suggestions to the Yilmaz Government "to ensure continuation of economic stability":

Despite the talk of revenue shortages, the $100 Housing Fund levied on people going abroad has been scrapped, forgetting it was levied on those who could afford foreign travel.

The move benefited the people the main opposition party has been criticizing as the "rentiers." These funds were being collected from people going abroad on vacation when ordinary citizens found it difficult to even travel to the capital city.

The $100 levied on someone who is taking with him $10,000 on vacation probably would not harm him but that sum would create a serious resource for the construction of mass housing for people with small incomes.

In public spending, thrift is very important. Criticism is directed mostly against the state's domestic borrowing policy without thinking about the fact that the scarcity of resources lies behind that policy. If you cut down your domestic spending then the borrowing requirement would diminish accordingly. The new budget orders the government to freeze the number of positions in the state system. But that would not suffice.

Public spending must be cut down in all areas of the public sector.

- A solution must definitely be found to the problem of the deficits of the agricultural producers' unions which total TL 130 trillion and the deficits of the social security organizations which amount to TL 200 trillion which are the main source of inflation.

- Officials should not even speak about the possibility of a domestic debt consolidation (moratorium). This is extremely important from the aspect of not undermining trust in the economy.

- As part of the economizing measures, all privileges enjoyed by state officials must be scrapped immediately. The reductions granted to civil servants, members of Parliament and even the members of the press, must be discontinued.

- If he can manage to, Mesut Yilmaz should switch from the Treasury to the Central Bank the task of managing the domestic debts, as he promised during the election campaign.

- The government can persuade the opposition in Parliament to support moves aimed at creating new resources. That would not be as difficult as it is believed to be. A legal arrangement aimed at "taxation of rents" which would eliminate the RP accusations about "supporting the rentiers' economy," could be passed though Parliament without difficulty.

[03] Expelled former chairman of DYP Cindoruk calls for peace

Turkish Daily News

ANKARA-Husamettin Cindoruk, a founder and former chairman of the True Path Party (DYP) expelled last year for voting against the minority government party leader Tansu Ciller formed, on Wednesday issued a surprise call for truce.

Cindoruk told a press conference that the DYP was suffering from a lack of coordination and harmony. The party administration, he said, had cancelled the membership of over 500,000 party members, and dismissed officials from about 80 party branches, replacing them with new people. Cindoruk said that party headquarters should not dictate to local branches and called for political and judicial equality between party organizations at the DYP convention. The DYP is due to hold a convention to elect a chairman before the end of this year.

Cindoruk noted that party delegates wanted to hold an extraordinary convention to find solutions to the problems. "We who were expelled from the party are the founders of the DYP, and we do not accept our expulsion, because the party's problems concern us," he said.

Cindoruk said that the DYP convention, to be held April 18, should strive to achieve unity within the party, calling on the party administration to seek reconciliation.

He also accused the DYP of clinging on to outdated ideology and political views. Cindoruk said that the party had become indexed to the viewpoints of the chairman. "We want to continue the ideology of the now-defunct Democrat Party (DP), which was established in 1946 and is the foundation of DYP, in the previous manner, which was based on the realities and problems of Turkey," Cindoruk said.

Continuing his attack on current DYP Chairwoman Tansu Ciller, the former Parliament speaker blamed her and party bosses for the shift of votes from the center-right DYP to the Islamist Welfare Party (RP) in the Dec. 24 election.

Throughout the December election campaign, Ciller voiced her opposition to the RP and said that she did not want to see the RP in government. To which Cindoruk replied: "Wanting is not enough. The votes of the DYP went to the RP in the election.

Something should have been done before the election, and if the DYP does not make new arrangements and amendments within the party it will even lose its present strength." Cindoruk further noted that he and other colleagues had proposed an alliance with the Motherland Party (ANAP) before the election, but the party administration had expelled them for their views. "Today, the DYP is a partner in a coalition government with ANAP. We support this government, but if they had made this alliance before the Dec. 24 elections, they would have come to power on their own," Cindoruk said.

He urged deeper cooperation between the coalition wings and steps to ensure they enter the mini-scale local elections in June in alliance.

[04] Heavy security and sun greet Hillary in Ephesus and Istanbul

ISTANBUL/IZMIR- U.S. first lady Hillary Rodham Clinton was greeted with sunny skies Wednesday afternoon as she arrived amid heavy security for a two-day visit to Istanbul. Her private plane was 45 minutes late arriving from Izmir, where she had spent the morning visiting nearby Ephesus and Selcuk.

At Selcuk airport that morning, security was tight and the equipment of local press was checked by U.S. security experts as Clinton, accompanied by her daughter Chelsea, was met by Izmir Governor Kutlu Aktas and Chief of Security Kemal Yazicioglu.

Selami Gurguc, the only member of Izmir's business community to welcome the party, presented the Clintons with a set of matching bath robes made by Gurguc's company and a letter requesting that the United States lift textile quotas on Turkey.

The Clintons visited the Virgin Mary House near Selcuk with a group of priests, after which they moved on to the ancient city of Ephesus. The first lady was impressed by the site and said that she was glad the restoration work had been supported by local authorities, "This place is very important for the entire world," she said.

Arriving in Istanbul, she was met on the tarmac by Foreign Ministry Protocol Chief Ataman Yalgin and Acting Istanbul Governor Ridvan Yenisen.

A heavy security cordon had been thrown around the VIP lounge at the airport, and journalists and photographers wanting to enter were searched one by one. Cars which were to form part of the Clinton motorcade were thoroughly examined.

Aides whisked the Clintons into a waiting bulletproof and bombproof limousine and, preceded by police cars in full cry, her motorcade visited the Social Security Administration's Bakirkoy Birth Clinic and the Women and Children's Disease Education Hospital.

At the hospital she was briefed by Chief Physician Tahsin Berk Arsan and Family Planning Clinic Director Dr. Kirac Yalcindag.

She was also taken on a tour of the hospital's primary school and nephrology section where she chatted with some of the children.

In a brief address, Clinton stressed how she had been affected by the strategic family planning which Turkey had been carrying out over the past 10 years. She also emphasized how very important family planning was for the whole world.

Clinton then proceeded to the Ciragan Palace where she delivered an address to approximately 400 guests of the Foreign Economic Relations Board (DEIK).

Clinton's visit has been marked (and at times marred) by extraordinarily tight security, as American officials kept news of her itinerary under wraps to keep the media from mobbing her and local journalists were subjected to searches which were not applied to the U.S. media. Further protection was afforded by overhead helicopters.

Before she leaves on Friday, she is expected to tour some historical places in Istanbul and visit the Islamic History, Art and Culture Research Center.

[05] Gonensay says Turkey has patience enough to wait for Greek response

Turkish Daily News

ANKARA- Foreign Minister Emre Gonensay has characterized Ankara's latest "peace offensive" aimed at Greece as an "important initiative by Turkish diplomacy" and has said that Athens needs time to assess the full meaning of this initiative.

"We expect that they are at the present time assessing (this initiative)," Gonensay said despite the fact that senior Greek officials have been dismissive in their initial remarks on Monday's call by Prime Minister Mesut Yilmaz for "unconditional talks." Meanwhile Constantine Mitsotakis, a former Greek Prime Minister and the honorary head of the opposition new Democracy Party, taking a different line to that of the Simitis government, said on Wednesday that the offer made by Yilmaz contained "many positive aspects."

The Anatolian news agency, reporting from Athens, quoted Mitsotakis as saying just prior to departing for the United States that it would be good for the government to study Yilmaz's offer very closely .

Foreign Minister Emre Gonensay, who was answering questions on the popular current affairs television program "32nd Day" late on Wednesday night, also said that the "olive branch" that Turkey had extended to Greece should not be confused with the issue of Turkey's relations with the European Union.

The foreign minister was clearly addressing speculation that Turkey's initiative, both in terms of content and in terms of timing, was aimed at encouraging Greece to lift its veto on funds to be extended by the EU to Ankara within the context of the Turkey-E.U. customs union accord.

Indicating that the offer made by Prime Minister Yilmaz for unconditional talks with help from "third parties" if necessary was the start of a long-term process, Gonensay said Turkey had "the patience to wait for a reasonable period" for a Greek response.

Gonensay said that this initiative launched by Ankara had also gotten the support of many European countries. He indicated that Italian Foreign Minister Susanna Agnelli whose country holds the E.U.'s term presidency told him over the phone on Monday that Turkey's position had been received well in the EU.

Foreign Minister Gonensay, referring to the postponement of Tuesday's Turkey-EU Association Council meeting because of Greece's continuing veto on credits earmarked for Ankara, said, "The ball is now in the EU court." He said that Turkey had fulfilled all its obligations under the customs union accord, and underlined that the EU side also had obligations under this accord.

Pointing out that the Association Council had to meet in line with Turkey's requests, Gonensay said Ankara was "at ease and would not plead with anyone in this respect." Asked what would happen if Greece remains determined to maintain its current position, Gonensay said, "Turkey will then assess the obligations it has fulfilled against those aspects of ties (with the EU) that are stalled, and arrive at the necessary conclusions based on the principles' mutual advantages." Asked if this were a "threat" of sorts, he said: "Is it a threat or is it realism... we will wait, we are patient." Reminded that Yilmaz had effectively opened the path to taking Aegean disputes to the International Court of Justice in The Hague, and asked if this did not fall counter to Turkey's interests, Gonensay said this course would not block the path to bilateral negotiations with Greece.

He said that Turkey had always underlined the need for settling disputes by peaceful means and indicated that it was now unfolding an approach in this context for settling disputes within the context of "dialogue under the broadest spectrum possible." Gonensay said that by opening the prospect for availing of the broadest possible spectrum for dialogue with Greece, Turkey, which until now had only underlined the "bilateral talks" formula, had thus done away with a shortcoming.

Gonensay tried to explain that taking Aegean disputes to The Hague carried no risks in the following manner: "In 1976 during the Aegean continental shelf crisis, Greece took the matter to The Hague and the U.N. Security Council.

Following two years of deliberations the Court decided that this was a matter that had to be sorted out between Turkey and Greece. So any decision to be taken (on Aegean affairs) will be arrived at mutually. There can be no decision to be imposed on the two sides from the outside. I see no risk here."

[06] US Supports Turkey's Economic Integration with European Union

Turkish Daily News

WASHINGTON- The United States supports Turkey's integration with the European Union, State Department spokesman Nicholas Burns said, responding to a question concerning the recent postponement of the Turkey-EU Association Council meeting.

"We want Turkey to have a close relationship and enter into a number of agreements to promote closer relations with EU," Burns said. "We supported that strongly as anyone else because we think that Turkey has got to be connected not only militarily to Western institutions but economically as well. We certainly support Turkey's growing relationship with the European Union.

We hope that continues."

Mediation?

On the question whether the US would mediate between Greece and Turkey to solve the bilateral issues, Burns told journalists on Tuesday that the US did not receive any official offers as such. "We can only mediate if the both sides want us to. We have not been asked to mediate. We're going to have good meetings with the Greek Prime Minister Simitis and the Turkish President Demirel," he said.

Seriously

When a Greek journalist questioned the way Burns praised on Monday the call Prime Minister Mesut Yilmaz made to Greece for dialogue, Burns told the Greek journalist "you should take seriously what we said yesterday. Prime Minister Yilmaz has done a good thing here. Now, perhaps his proposal didn't deal with every issue in Greek-Turkish relations. But what he said was positive. It was constructive, and`, you know, it was an offer to begin to discuss the differences between Greece and Turkey on an equitable basis. There was a spirit of reconciliation in his offer; and we think that's positive, and so we commended him for that. And I stand by everything I said yesterday on this."

Extending a hand

But the Greek journalist insisted that Burns re-evaluate the US position "since Yilmaz's proposal is a political dialogue, a package-deal process."

"I think you ought to understand that the prime minister Yilmaz made a very simple statement," Burns advised the Greek journalist. "It was a statement that extended a hand. You ought to look at it like that. If you're looking for other promises of support from the Turkish government, address yourself to the Turkish government. I can't speak for the Turkish government."