25 July 2001

1. "Iraq vows to fight 'smart sanctions', boost trade with Turkey", Iraq will continue to fight against the adoption of so-called smart sanctions against it and will work to boost trade with itsneighbor Turkey, Iraqi Oil Minister Amer Rashid said here Tuesday.

2. "Turkish debt sale sparks IMF optimism", Turkey's economic gloom remains despite IMF loans.

3. "Turkey feels out changes for dialogue in Yyprus Question", in south, Greek Cypriots pray and sirens howl while military parades set tone in north.

4. "Yilmaz enlists HADEP for elections alliance", Mesut Yilmaz has reached a tentative agreement with the pro-Kurdish People's Democracy Party (HADEP) for an alliance in possible future elections, Motherland Party (ANAP) sources told the Turkish Daily News.

5. "Let to power in the next election", Tas pointed out that the chance for the left to come to power had risen and said "If Erdal Inonu doesn't repeat the same mistakes and if he makes an alliance with leftist segments and HADEP, the chance to come to power in the first [next] elections is high."

6. "Smear campaign against Piskinsut", prosecutors want Piskinsut investigated for failing to reveal identities of inmates she talked to, this makes her an accessory after the fact in torture investigation.


1. - AFP - "Iraq vows to fight 'smart sanctions', boost trade with Turkey":

ANKARA

Iraq will continue to fight against the adoption of so-called smart sanctions against it and will work to boost trade with itsneighbor Turkey, Iraqi Oil Minister Amer Rashid said here Tuesday."Even if there is some kind of modification or softening (in the planned sanctions), it is impossible for us to accept them. Our resistance against the adoption of the draft will continue," Rashid said, after meetings with Prime Minister Bulent Ecevit and other officials, Anatolia news agency reported.

"If this draft is passed by the UN Security Council, we might stop exporting oil," he added. The US-backed British proposal to impose "smart" sanctions on Iraq was shelved at the UN Security Council earlier this month due to Russian opposition. Rashid was in Ankara for an Iraq-Turkey economic cooperation committee meeting, which was to convene later in the day to discuss improved trade ties between the two countries. Both Rashid and Turkish officials emphasized the two countries' desire to increase bilateral trade, which has severely diminished due to the 11-year embargo on Iraq, imposed for its 1990 invasion of Kuwait. Turkish State Minister Edip Safter Gaydali said the trade volume between Turkey and Iraq should reach its pre-Gulf War level of 2.5 billion dollars (2.86 billion euros).

Ankara's plans to open a second gate at the border with Iraq in a bid to help the revival of trade was also high on the agenda of Rashid's talks. "We agreed that a second border gate is necessary," Rashid said. Baghdad has recently said it would give priority to Turkey, Syria, Jordan and Russia in bilateral trade in a sign of gratitude for their stances regarding the "smart sanctions." Ankara, a NATO member that hosts US and British warplanes enforcing a no-fly zone in northern Iraq, has maintained that the project should not hurt Iraq's neighbors, who have already suffered due to the 11-year UN embargo. Turkey puts its losses at about 35 billion dollars.

Even though Baghdad has often blasted Ankara for regularly extending the mandate of the US and British patrol jets in the no-fly zone, the ties between the two countries have remarkably improved in recent months. Turkey and Iraq have held a series of talks to revitalize trade and have restored train services between Baghdad and the southeast Turkish city of Gaziantep. Ankara has also sent several planes to Baghdad carrying humanitarian supplies.


2. - BBC - "Turkish debt sale sparks IMF optimism":

Turkey's economic gloom remains despite IMF loans

Turkey's plans for financial reform have been boosted by a successful sale of government debt at rates much cheaper than observers had expected.

The sale has raised hopes that the International Monetary Fund will release fresh funds to help the Turkish economy, which has been in crisis in the last few months.

The value of the Turkish currency, the lire, has plunged on international markets, while the IMF has insisted that the Turkish government complete controversial plans to privatise its banking and transport sectors.

The government's sale of its debt - at a lower interest rate than expected - has been taken as a sign of market approval for Turkey's reforms ahead of the visit on 30 July to Ankara of IMF Deputy Director Stanley Fischer.

Breathing space

He is expected to use the visit to make a public display of solidarity, and suggest that the disagreements over the IMF's deal with Turkey are over.

The positive mood triggered by the auction saw the lira strengthen and the Turkish stock market end the day higher, as dealers gave the government a breathing space to implement economic reforms.

Comments from US Treasury Secretary Paul O'Neill in London also reinforced sentiment, as he cast doubt on investors' concerns about "contagion" of problems spreading from one emerging market, like Argentina, to others.

"With a magnifying glass, you couldn't find a connection between Turkey and Argentina, except in people's minds," he said.

Turkey's economy is labouring under sky-high inflation, and corporate bankruptcies and compulsory redundancies are rife. Government debt has almost tripled in the first six months of this year to 92,000 trillion lira.

Suspension

In June, the IMF suspended its $15bn loan programme following allegations of foot-dragging on agreed reforms.

The programme was restarted with the release of $3.2bn in IMF and World Bank loans on 12 July after one of the main opponents in the government of the IMF plan was sacked.

The communications minister, Enis Oksuz, had refused to accept privatisation of state telecoms company Turk Telecom on national security grounds, and had become a symbol of nationalist scepticism about the IMF agreement as a whole.


3. - Frankfurter Rundschau - "Turkey feels out changes for dialogue in Yyprus Question":

In south, Greek Cypriots pray and sirens howl while military parades set tone in north

By Christiane Schloetzer

Istanbul - Every year, Cyprus commemorates the anniversary of its division with separate rituals.

For 27 years now, the Turkish invasion, which followed a Greek-backed coup against the then-ruling government, has been celebrated by Turkish Cypriots and their patron power Ankara as a "mission of peace". The Greek Cypriots in Nicosia, on the other hand, rountinely note that Turkey bears sole responsibility for the division.

And so it was again this past weekend. But this time a new, dangerous rhetoric mixed with the usual ritual.

Cyprus is supposed to become a member of the European Union as part of the group's eastward expansion. The southern half of the island has already fulfilled the membership criteria. That fact gives the government in Nicosia a showy self-confidence and that in turn may yet turn into a problem for the EU.

Nicosia's representatives in Brussels announced recently that, once Cyprus is in the club, Turkey's membership of the EU will be blocked until a political solution is found for the island. Ankara must have perceived that as a sudden attack.

Although reactions to the Greek Cypriot annoucement were strong, neither Ankara nor Turkish Cypriot leader Rauf Denktasch is currently in a good position. It was Denktasch, after all, who walked out of United Nations-mediated talks on the island's future, in November, 2000. Denktasch says he will return to the negotiating table only once his government is recognised as an equal partner - a demand the UN, however, is unlikely to meet.

Far-sighted politicians in Ankara are meanwhile starting to view the strategy of isolation as a mistake. Premier Bulent Ecevit has now ordered Denktasch - albeit in a diplomatic way - back to the table.

"In spite of everything," Ecevit said, "dialogue is necessary." And, indeed, most observers agree with him.

Radicals on both sides are re-organising again. There are already enough old horror stories, and new ones are readily believed. Thus, the spokesman of the Turkish Cypriot parliament has now denounced Cyprus' joining the EU as a Nicosian plot to unite with Greece (40 years ago the enosis movement, which aimed to achieve just that, sparked a civil war). He even went so far as to warn of "ethnic cleansing" being planned against the Turks.

The tough speeches widen the gap between the two parts of the island, especially since cross-border communication is already scant.

However, in a certain sense they are also self-serving. Many Turkish Cypriots are preparing for Cyprus' EU membership in their own way: by picking up Greek Cypriot passports.

The main reason behind this development is the poor economic situation in the north, which is living in a state of permanent embargo. Whereas tourists are only allowed to travel to northern Cyprus via Turkey, the south attracts more than two million tourists - and their hard currency - every year with direct flights. The impoverishment of the north is already leading to protests against Ankara, which only increase the tension.

EU diplomats in Ankara are urging Brussels to take quick action, since an escalation on the island would also ruin the current rapprochement between Athens and Ankara. That is why observers are cautioning EU Commission head Romano Prodi not to delay his trip to Nicosia, originally planned for July, too much longer.


4. - Turkish Daily News - "Yilmaz enlists HADEP for elections alliance":

Ilnur Cevik

Mesut Yilmaz has reached a tentative agreement with the pro-Kurdish People's Democracy Party (HADEP) for an alliance in possible future elections, Motherland Party (ANAP) sources told the Turkish Daily News.

The sources said Yilmaz, faced with a serious plunge in the popularity of his party in public opinion polls below the ten percent national threshold, has decided to enlist the backing of the pro-Kurdish party, which has the support of more than four percent of the votes, to overcome the elections hurdle and stay in Parliament.

Sources said this is why Yilmaz has not responded favorably to calls for a change in the elections law that will bring the threshold down to five percent. He feels that in such a case HADEP will not need ANAP to get into Parliament as it will be able to pass the five percent threshold with a bit of electoral push in the eastern and southeastern provinces. Besides, Yilmaz also opposes the five percent threshold as this will increase the number of parties represented in Parliament and his chances of being a kingmaker in a coalition and thus remaining in Cabinet will be seriously jeopardized.

Yilmaz reportedly wants to remain in any future Cabinet as a shield against possible corruption probes. He and his colleagues have faced the threat of serious investigations on energy deals but he has managed to avoid prosecution because of his position in Cabinet. Observers say that may not be the case if he is not in government.

HADEP is especially strong in the southeastern and eastern provinces. It won more than 4.1 percent of the votes in the 1999 general elections but could not win any seats in Parliament because it could not pass the ten percent threshold. Observers say HADEP now has a support of about 4.3 percent nationally but this could pass the five percent mark if people feel the party has a serious chance of getting into Parliament.

The public opinion polls also show ANAP's support down to around 4.3 today from 13.2 percent in the 1999 April elections.

HADEP swept the mayoral seats in most of the southeastern provinces including Diyarbakir in the local elections and showed its massive political strength in the region.

Sources said Yilmaz tried to court HADEP during the spring of 2000 as Parliament set out to elect Ahmet Necdet Sezer as president. At the time the idea of HADEP fielding its top candidates under the ANAP banner was floated. It was said HADEP would also enter the elections with weak candidates and allow the stronger HADEP personalities to be elected from the ANAP ticket.

It was not certain what the latest arrangement between Yilmaz and HADEP would be. But sources said HADEP had assured Yilmaz of its support.

Sources said Hasim Hasimi, a Motherland deputy from Diyarbakir and a popular personality in the region, may have played a key role in the HADEP-ANAP rapprochement.

In recent months Yilmaz has been more and more attentive to the Kurdish issue and democratic reforms. He is on record saying that Turkey's EU membership passes through Diyarbakir, the provincial capital of southeastern Anatolia. The population of the city is predominantly citizens of Kurdish origin.

Yilmaz reportedly asked Hasimi and other ANAP deputies to call the attention of Western diplomats to Yilmaz's statements on the Kurdish issue and democratization and stressed that he is sincere and that his remarks are not "empty talk."


5. - Kurdish Observer - "Let to power in the next election":

Tas pointed out that the chance for the left to come to power had risen and said "If Erdal Inonu doesn't repeat the same mistakes and if he makes an alliance with leftist segments and HADEP, the chance to come to power in the first [next] elections is high."

NEWS CENTER

PKK Council of Leaders Nizamettin Tas said that the chances for the left to come to power in Turkey were higher than ever, adding, "If an alliance is formed that encompasses all those who have seen harm from the regime, the state, war and chauvinism is formed, the chance of the left coming to power in the first elections is high."

Appearing on Medya-TV's "Cozum" (Solution) program by telephone the other evening, Tas evaluated the subject of new political formations in Turkey and the debates that have been going on about them, particularly concerning the left. Tas said that the left had never gone through such a fortunate period at any time in Turkey's history, continuing to add the following: "Many people think that the left cannot come to power again, that it has been destroyed. This is an fallacy. Society's demand for democracy is very high. Fazilet and Tayyip Erdogan are taking over this potential on the left. If the left becomes active, it is inevitable that it get votes from the impoverished segments, Islamic circles, and the MHP [Nationalist Action Party] base."

'A broad alliance is essential'

Tas stressed that it was necessary for the left to get organized as quickly as possible, continuing to say the following: "If an alliance that encompasses all those who have seen harm from the regime, the state, war and chauvinism is formed, if the circle separated from the CHP which is under the lead of Erdal Inonu doesn't make the same mistakes again, if it makes an alliance with the other leftist circles and Kurdish parties, with HADEP, then the chance of it coming to power in the first elections is high." Tas said that the reason the people had stayed far from the left parties was because they had not fulfilled the responsibilities of revolutionary democratic parties, adding the following: "The left must come down to the people and in this respect be of service to the moderates and the masses. It is necessary for them to carry out an intensive practice to establish ties with the masses, without getting too hung up on form, without putting the divisive sides out front.

'The masses don't listen to words'

Tas indicated that the era of engaging in state-driven politics had ended in Turkey, adding the following: "It is democracy that will shape the world in the 21st century, the Democratic Republic. All classes must unite in the Democratic Republic if they want to defend themselves and their interests."

Tas pointed out, however, that it would take some time for this situation to be reflected in the subjective plan, continuing: "The research shows this. The masses are not looking at words anymore. They are looking at how much the essence matches the words, how tied to democracy. This is valid from the aspect of the left and from the aspect of the right." Tas concluded by saying the following: "It doesn't matter if it is the segment that separated from Fazilet or a new party to be formed on the left or the right; they must distance themselves from chauvinism and a militaristic structure. Militarism and chauvinism aren't worth anything in Turkey anymore. How much presence can these really show? This is tied the program they develop and the power to carry it out after this.


6. - Turkish Daily News - "Smear campaign against Piskinsut":

Prosecutors want Piskinsut investigated for failing to reveal identities of inmates she talked to, this makes her an accessory after the fact in torture investigation

Ms. Sema Piskinsut, who headed the previous Parliament's Human Rights Investigation Commission, is now facing legal action after Ankara Chief Public Prosecution Service have prepared a note asking that she be investigated for withholding the identities of inmates she spoke to while head of the commission, the Anatolia news agency reported yesterday. In failing to reveal the identities of inmates and remand prisoners with whom she and other commission members spoke while they investigated allegations of torture at police stations and penitentiaries, Ms. Piskinsut is said to be "an accessory after the fact" in these inmates' crimes.

The two-page report prepared by Ankara Deputy Chief Public Prosecutor Bekir Selcuk noted that a reply signed by Ms. Piskinsut and dated Sept. 15, 2000, after she was asked to provide information to the prosecution services for their investigation of the alleged torture incidents at Erzurum and Erzincan, had been received in which she stated the commission had taken on a social duty and that its work should not be seen as a judicial inquiry. She said the inmates had been promised total confidentiality and that their names would not be disclosed. The report stated that other than this, no evidence, information or documentation had been sent.

The report stated that Ms. Piskinsut failed to provide the necessary information the prosecution service needed to investigate the allegations of torture and that this constituted obstruction of a judicial inquiry and made Ms. Piskinsut an accessory after the fact according to Article 286 of the Turkish Penal Code (TCK). The report asks that Ms. Piskinsut's parliamentary immunity from prosecution be revoked.