26 April 2001

1. "Turkey frees central bank from politics", pices have gone up sharply.

2. "Turk minister urges no immunity from graft probes", Turkey's Interior Minister said on Wednesday all state institutions should be open to inspection in an anti-corruption drive seen as essential to efforts to win foreign loans and pull the country out of crisis.

3. "Turkish military playing with fire", the headquarters of the People's Defense Forces announced that the Turkish military was continuing its build-up of troops in South [Iraqi] Kurdistan.

4. "'Inflated' praise from the MGK for 'action plan'", the "East and Southeast Anatolia Action Plan" which was put into effect last year was laid on the table at Tuesday's meeting of the National Security Council (MGK).

5."Barzani's visit delayed to May", despite the intensive talks on terrorism during the previous talks with the Iraqi Kurds, economic issues will put its seal on the upcoming meetings

6."EU proposes more efficient financial aid to Turkey", the European Commission on Wednesday proposed measures that would make the EU's pre-accession aid to candidate country Turkey more efficient.

1. - BBC - "Turkey frees central bank from politics":

Prices have gone up sharply

ISTANBUL / by Chris Morris

The Turkish parliament has approved a law which gives the country's central bank more autonomy and protection from political interference.

It is one of a series of reform measures which the government has pledged to implement to help Turkey recover from a severe economic crisis which has led to hundreds of thousands of job losses and steep price increases.

Turkey's economic minister, Kemal Dervis, has gone to the United States for talks with the International Monetary Fund about further foreign assistance.
Corruption

Political interference in the Turkish economy has created a climate where corruption has become commonplace.

Reforming the central bank is an important step towards a more transparent and independent system.

It is one of the measures which has been demanded by international lenders before they agree to give further financial support to the Turkish government.

Mr Dervis, the architect of the new reform programme, is hopeful that foreign funding will be approved soon.

Before he left for the US, he told a parliamentary commission on Tuesday that he expected more than $15bn in outside assistance.

Powerful support

There are still a number of other economic reforms which parliament has yet to address, and there are concerns among reformers that there could be efforts to block too much change.
But Mr Dervis received powerful support this week from the chief of the general staff of Turkey's influential armed forces.

General Huseyin Kivrikoglu told journalists that corrupt schemes are being uncovered one by one, and those responsible will have to pay for what they've done.

Corruption in the banking system was one of the main causes of the economic turmoil which hit the country in February.

Since then, the value of the Turkish lira has plunged, prices have risen dramatically and many Turks are now facing severe economic problems.

2. - Reuters - "Turk minister urges no immunity from graft probes":

ANKARA

Turkey's Interior Minister said on Wednesday all state institutions should be open to inspection in an anti-corruption drive seen as essential to efforts to win foreign loans and pull the country out of crisis.

Sadettin Tantan's remarks came a day after 15 people, including former state energy officials, were charged with corruption linked to energy sector privatization tenders.

Any spread of the investigation into the political establishment could unsettle a frail three-party coalition.

The prosecutor charging the 15 said he had no powers to question Energy Minister Cumhur Ersumer, who has parliamentary immunity as a deputy of the Motherland Party, but would provide any documentation to the legislature if asked.

The Nationalist Action Party, second biggest in the coalition, said it was considering demanding a parliamentary investigation into Ersumer's conduct, Anatolian news agency said.

Forbidden zones

Tantan said prosecutors were unable to press investigations into bodies such as the Capital Markets Board and trade unions. He gave no details of the obstacles.

"If there are institutions where prosecutors cannot enter and cannot obtain information, we cannot talk about a country of justice," Tantan said in remarks televised by NTV news channel.
"If corruption in the banking system has come onto the public agenda, then one should look into the treasury and finance legs of this," said Tantan.

Corruption allegations have occupied Turkey's agenda since a row between Prime Minister Bulent Ecevit and President Ahmet Necdet Sezer over the pace of anti-graft operations sparked a financial crisis in February.

Economy chief Kemal Dervis flew to Washington on Wednesday seeking some $10 billion in foreign loans to ease a financial crisis that has scuppered an IMF-backed anti-inflation plan and cut the value of the lira by almost a half.

Any potential backers will seek evidence of progress in fighting corruption endemic to the Turkish political system and cleaning up a banking sector also overshadowed by graft.
Earlier this week the powerful Chief of General Staff Huseyin Kivrikoglu blamed the crisis on lack of a political will to fight corruption, particularly in the ailing banking system.

3. - Kurdish Observer - "Turkish military playing with fire":

The headquarters of the People's Defense Forces announced that the Turkish military was continuing its build-up of troops in South [Iraqi] Kurdistan. It said additionally that clashes were occurring in North [Turkish] Kurdistan during military operations being carried out there.

NURDOGAN AYDOGAN/S.KURDISTAN

It has been learned that the Turkish military has begun preparations for an operation in South Kurdistan and that military forces in Semdinli, Yuksekova, Hakkari, Mardin, and other parts of Kurdistan have been put on high alert.

The People's Defense Forces (HSK) headquarters announced that Turkish military forces had increased operations, coinciding with contacts with the US State Department assistant. The People's Defense Forces said that Turkish soldiers had carried out a comprehensive operation in the region of Sate, Ertus, and Kinyanis that that they had withdrawn after taking some Southern Kurdistani villagers in the area with them.

The HSK headquarters statement also noted that Turkish military forces had built a bridge over the Hacibeg stream, which is on the South Kurdistan border in the region of Gerdi near Semdinli, and that the purpose of the bridge was for deployment during operations.

Local sources likewise have noted intensive military activity on the border of South Kurdistan and stress that there have been rumors that the villages and police stations near Ertus and Kinyanis are to be filled up again.

Clashes breaking out here and there

The HSK headquarters statement said that a brief clash had broken out between soldiers who had begun an operation near the Basya stream in the Herki region of Semdinli and guerrillas on April 20. According to information given by the HSK, the Turkish military also carried out an operation on Cudi mountain on April 21, but withdrew without any contact having been made. Soldiers have also set out around Cukurca for a military operation. It was noted that the soldiers setting out from Cukurca had cleared mines on the roads connecting Ertus and Kinyanis police stations to the highway.

The People's Defense Forces also said that Turkish military forces had begun an operation in the rural area between Amed [Diyarbakir] and Bingol on April 12 and that there had been a few clashes with guerrillas during this operation. It said that there had still been no news of five guerrillas who had been cut off from their units during the clashes and one wounded guerrilla had been captured by soldiers.

Who is directing this military activity?

The timing of this military and political activity has been striking, occurring during a recent visit to the region of Edward Walker, the US Assistant Secretary of State responsible for Middle East affairs. These operations, stretching from Amed in North Kurdistan all the way to Semdinli and occurring in spots through all of Kurdistan at such a time, must be a coincident. They also coincide with the intensification of clashes between Israel and Palestine following the US's announcement that it aimed at tightening the embargo against Iraq and the heightening of tension because of Israeli striking of Syrian targets in Lebanon.

All analysts are watching developments in the region closely, wondering if the violence in the region will heat up in response to political developments and contacts. Particularly Iran, which is watching developments in the region very closely and in a very sensitive fashion, is clearly trying to reformulate policies so that it will have influence in the case of potential developments and changes in balance in the region, particularly if it continues its relations with both Turkey and the Kurdish powers, and not see harm itself.

What is the meaning of Turkey, currently suffering a serious economic crisis and collapse, carrying out operations while it is in such a position and shedding so much blood, as has been seen in Bingol? How aware is the Turkish state of the realities? Are profiteering circles which wish to take advantage of crisis developing these military operations? These developments points towards an intruguing situation.

What will Turkish state officials - who evaluated the occupation of the Swiss Hotel, by forces who were recognized immediately (Chechens), as a "stab in the back" because it would harm tourism - have to say on the operations carried out in Kurdistan, the clashes that have broken out, and the blood that has been shed? Isn't this the greatest "stab in the back"? Doesn't a revival of the climate of conflict in Kurdistan mean the sabotaging of tourism as well? Isn't this the biggest threat for Turkey? Who is creating these threats? It is quite clear that the Turkish state will not be able to rise up from under these developments. What do officials think about those who create these events and support them?

Despite the fact that these developments and clashes have been reflected in the media, there has not been sufficient reaction or sensitivity.

Everyone should show a reaction in the face of the greatest period of conflict experienced since the PKK silenced its weapons and withdrew its guerrilla forces to the South. It appears as if the continued silence will once again turn the region into a lake of blood.

In that case, it is essential that all the peoples of the region show the necessary awareness to secure peace, watch developments moment by moment, and urgently take the necessary stance.

4. - Ozgur Politika - "'Inflated' praise from the MGK for 'action plan'":

The "East and Southeast Anatolia Action Plan" which was put into effect last year was laid on the table at Tuesday's meeting of the National Security Council (MGK). Activities carried out in the framework of the plan, which has been designed around the principle of destroying the Kurdish identity, were praised at the meetings and relayed with 'inflated' figures in the MGK meeting statement.

ANKARA

The National Security Council, which met on Tuesday under the leadership of President Ahmet Necdet Sezer, discussed progress made in the "East and Southeast Anatolia Action Plan" which was put into effect on May 9, 2000. The statement made after the meeting asserted "we have been successful."

State minister responsible for the economy Kemal Dervis attended the MGK meeting to give an evaluation of the economic program. Dervis left the meeting which lasted for 3.5 hours after participating for 2.5 hours.

In the statement made by the MGK General Secretariat following the regular April meeting of the MGK, it said that that it had evaluated implementation of the "Action Plan" put into effect on May 9. The aforementioned plan looks at the problems being experienced in Kurdish cities solely from the angle of "economic mentality" and "education."

A number of observers noted that a number of figures given in the MGK General Secretariat's statement concerning the action plan, particularly those pertaining to "economic facts and projects," had been "inflated." The observers commented: "The MGK probably isn't aware of the economic crisis gong on in Turkey."

The MGK General Secretariat statement released after the meeting made the following assertions concerning the meeting and action plan: "General security and public order in the country and the domestic and foreign developments which effect these were reviewed at the meeting. In this framework, information was presented to the board concerning the situation of implementation of the action plan which includes measures for a speedy solution to the problems in the East and Southeast Anatolia regions and which was put into effect on the date of May 9, 2000. As a result of the evaluation made on the subject, it was noted with pleasure that:

"a. 165 projects in the amount of 482 trillion liras foreseen for the year 2000 have been completed;

b. there has been a 13.7-percent increase compared to the previous year in payments for total public investment projects as required by the economic program being implemented in the framework of the Action Plan;

c. the area of implementation service aimed at supporting agriculture in the region has been increased from 19 thousand hectares to 22 thousand hectares, and appropriations for this aim were increased 17.1 percent;

d. there has been a real increase of 47 percent in resources set aside for projects being carried out in provinces within the framework of the plan to improve city infrastructure and a total of 83 projects of this characteristic were completed in the year 2000;

e. there has been an increase from 4 percent to 14 percent in the ratio of investments, in accordance with the plan for the country in general which secures state support for private sector investments with incentive documents, in the 28 provinces included in the action plan;

f. while programs in the framework of basic and preventative health services in the region broaden and continue, a 13-percent increase has been secured in the number of hospitals, 17-percent increase in the number of health clinics, 34-percent increase in the number of health centers, 76-percent increase in the number of specialist doctors, and 40 percent increase in the number of midwives and nurses.

g. the rate of increase in primary school students in the regional provinces in the plan period has been higher than the average in Turkey, the rate of increase in girl students has surpassed that of increase of boy students, the number of primary and middle school students in the region has increased 30.3 percent and the number of teachers increased 18 percent.

It has been understood that if the measures foreseen by the Action Plan continue to be implemented with the same determination, an economic vitalization that can be seen with the eyes could be realized in these regions in a short period."

5. - Turkish Daily News - "Barzani's visit delayed to May":

Despite the intensive talks on terrorism during the previous talks with the Iraqi Kurds, economic issues will put its seal on the upcoming meetings

The expected visit of Kurdistan Democratic Party (KDP) leader Massoud Barzani is delayed to May due to the intensive program of Turkish Prime Minister Bulent Ecevit.

The visit is expected to be scheduled on May 6-7. Despite the emphasis put on the threat of terrorism caused by the outlawed Kurdistan Workers' Party (PKK) elements based in northern Iraq during the previous meetings, economic issues will be raised by the KDP side, Ankara representative of the party Safeen Dizayee said on Wednesday in a statement to the Turkish Daily News.

"During the previous five meetings between Barzani and Turkish officials, security matters and the terrorist threat dominated the talks. But now the number of PKK members has decreased to 600-700 from 4,000 in northern Iraq and now they are locked in the Behdinan area," Dizayee said, putting emphasis on the point that no single PKK camp has remained in their area.
"We will discuss economic issues and the future of Iraq as well as the new U.S. policy on Iraq," Dizayee added. Turkish officials, at this point, related that the two sides will certainly have different agendas.

They explained that the reason for the delay of Barzani's visit was the schedule of Prime Minister Bulent Ecevit, nothing else. On April 30, the Ecevit-led Democratic Left Party (DSP) is meeting and on May 3, the prime minister is leaving for an official visit to Spain.

Reconciliation with the PUK

The two rival Iraqi Kurdish factions in Iraq are passing through a rarely-seen period of "spring" regarding bilateral relations. Jalal Talabani's Patriotic Union of Kurdistan (PUK) and the KDP have gone a long way toward the restarting of parliamentary work together and the holding of elections, as mentioned in the Washington agreement. "The influence of the PKK on the PUK was the main barrier to the implementation of the Washington agreement (signed between the Iraqi Kurds under the auspices of the U.S. administration in 1998 in Washington)," said Dizayee.
For three months an exchange of visits have taken place between the KDP and the PUK, and the two parties will open mutual offices in Arbil and Suleymaniya. The two groups had numerous clashed with each other during the past years but had never ended contacts with Baghdad.
However, following an attempt by the Iraqi army two months ago against several settlements near Dohuk city in northern Iraq, the traffic between the Iraqi administration and the Iraqi Kurds was eased. "Not only the allied forces, but also the Iraqi Kurds themselves, protect the Kurds in Iraq. Following the attempt, this message had been given to Iraq," Dizayee said. Dizayee also talked about Iraq's refusal to grant visas for 300 U.N. staff, most of whom were mine-clearers. The Kurdish-controlled area in Iraq is 40,000 square kilometers.

Three basket U.S. approach on Iraq

All eyes are turned on the upcoming developments in Iraq and northern Iraq following the assumption of office of the new U.S. President George W. Bush.

In earlier remarks, U.S. Secretary of State Colin Powell made a reference to a three-basket policy on Iraq, which is base firstly on sanctions, secondly on the no-fly zone and thirdly on a regime change. In his testimony at the U.S. House of representatives on March 8, Powell briefly commented on the basic principles of the U.S. policy on Iraq.

"First, we work within the U.N. system to make sure he has not developed and put into his inventory weapons of mass destruction," Powell said. "That is a result of the resolutions he agreed to at the end of the Gulf War. Also there is a policy of a no-fly zone, which is used to protect the Kurds in the northern part of the country and also to provide warning and protection in the southern part of Iraq. Now we have been flying in those no-fly zones for some time. The third part of U.S. policy does deal with regime change. It has been part of the government's policy for a number of years now to advocate that the country would be better off without this regime."

Clearly stating that the sanctions are falling apart, Secretary Powell stated the necessity to review sanctions on Iraq. "I would not call it an easing of sanctions. What's been happening is not only an easing of sanctions, it's a verge of collapse of sanctions. This gives us a new floor that all can agree to," Powell said.

Following these remarks, the difference of views among the top U.S. officials on Iraq became visible. The unavoidable contrast of being in administration and being faced with the realities and the election campaign slogans caused a more realistic look in Washington on Iraqi affairs, Turkish officials comment.

6. - AFP - "EU proposes more efficient financial aid to Turkey":

BRUSSELS

The European Commission on Wednesday proposed measures that would make the EU's pre-accession aid to candidate country Turkey more efficient.

A draft regulation tabled by Enlargement Commissioner Gunter Verheugen is aimed at putting aid to Turkey under a single coordinating umbrella, with "all funding targeted at addressing the pre-accession priorities set out in the Accession Partnership with Turkey," said a statement.

"The regulation we are proposing today is an important step in the pre-accession strategy for Turkey," said Verheugen. "It is completing a series of proposals the commission has made under this strategy."

He said the commission had asked other European institutions to adopt the proposal "as soon as possible so that the pre-accession strategy agreed at the Helsinki" summit "is fully in place."

Turkey was accorded EU candidate status at Helsinki, but with the proviso that membership negotiations begin only after Ankara has met EU standards on democracy, human rights and the rule of law, which is has not. Last weekend, at an informal meeting in Malmoe, Sweden, EU finance and economy ministers appealed to the World Bank and International Monetary Fund to accord Turkey speedy financial help to overcome its current economic crisis. EU financial aid to Turkey has been 177 million euro (158 million dollars) a year for 2000 and 2001.