08. August 2002

1. "Turkey Vows to Push IMF Deal Through Polls", Turkey has promised the IMF that despite the political vacuum of looming elections it will press ahead with what reforms it can under a $16 billion loan deal, including the privatization of huge state banks.

2. "International coalition against war on Iraq rapidly emerging", With each passing day the Bush administration escalates its war of words against Iraq, making a military campaign increasingly likely. But the situation on the international scene is very different from the conditions obtaining when George Bush senior went to war against Iraq in 1991.

3. "Leader: Iraqi Kurds won't 'blindly' join U.S. front", a key Iraqi opposition figure said Wednesday his group would not "blindly" commit to any U.S. plans to topple Saddam Hussein.

4. "Dervis paves way for Turkish alliance", In the unpredictable world of Turkish politics, there is one player that stands firm, lending a guiding hand and guaranteeing the principles of the secular state it vows to defend at all costs.

5. "ANALYSIS - Military stands firm in mire of Turkish politics", In the unpredictable world of Turkish politics, there is one player that stands firm, lending a guiding hand and guaranteeing the principles of the secular state it vows to defend at all costs.

6. "Turkish labor minister resigns in row over workers' rights", Turkey's Labor Minister Yasar Okuyan has resigned amid controversy over a bill aiming to expand the rights of workers in line with European Union standards, deputy Prime Minister Sukru Sina Gurel said Wednesday.


Dear reader,

Due to the holiday time our "Flash Bulletin" will not be forwarded to email addresses from August 1, 2002 until August 25, 2002. It can be viewed, however, right here in the internet at www.flash-bulletin.de as usual.

the staff


1. - Reuters - "Turkey Vows to Push IMF Deal Through Polls":

Istanbul / August 08, 2002 / by Steve Bryant

Turkey has promised the IMF that despite the political vacuum of looming elections it will press ahead with what reforms it can under a $16 billion loan deal, including the privatization of huge state banks.
"While early elections could delay legislative reforms, the government remains committed to timely implementation of those aspects of policy strategy that are the prerogative of the executive branch," Turkey said in a letter of intent to the fund released on Thursday.
The letter was matched by a separate appendix from the leaders of Prime Minister Bulent Ecevit's stalled coalition, which has called general elections on November 3, pledging loyalty to the loan pact.
A tranche of $1.1 billion from the loan package was disbursed on Wednesday.
Acknowledging slight slippage on some targets for privatization of the lumbering state banks that lay at the heart of its recent financial crisis, Turkey promised to press ahead with their sale.
"Working with the World Bank, we will now prepare the banks for privatization," Turkey told the fund in its latest letter of intent under a $16 billion loan deal
The letter promised a sale of state-owned Halk Bank by the first quarter of 2003 and a second attempt to sell Vakifbank in the second quarter of the same year.
"We will also seek outside assistance for the privatization of Ziraat (bank) and to sell it later as conditions permit," the letter, signed by Economy Minister Kemal Dervis, said.
It said Turkey had asked the IMF to waive Turkey's failure to meet a target to close 800 branches of state banks, "which was missed by a narrow margin -- with 788 closures, we fell just 12 short."

ON TRACK TO MEET TARGETS

The letter of intent said Turkey remained on track to meet the fund's targets for 2002, including cutting annual inflation to 35 percent and achieving three percent growth.
It also promised privatizations of a number of state-owned firms, including refinery Tupras, and action to prepare state firms such as TEKEL, the tobacco and alcohol monopoly, for sale.
The letter also pledged to continue preparing legislation, particularly tax reform bills, that would be sent to parliament to await the next government, likely to be formed late this year or early in 2003.


2. - TheJordan Times - "International coalition against war on Iraq rapidly emerging":

August 08, 2002 / by Michael Jansen

With each passing day the Bush administration escalates its war of words against Iraq, making a military campaign increasingly likely. But the situation on the international scene is very different from the conditions obtaining when George Bush senior went to war against Iraq in 1991.
George Bush senior had a casus belli, Iraq's invasion of Kuwait. He could also claim the moral high ground. He assembled a coalition which gave his assault on Iraq both international and Arab cover. And, Kuwait, Saudi Arabia and Japan had agreed to pick up the $60 billion bill for the US-led offensive. Bush senior was not obliged to consider the post-war scene in Iraq because his objective was to drive the Iraqi army from Kuwait not — at least not necessarily — to secure “regime change”. Finally, Bush senior made a serious effort to court the Arab world.

George Bush junior has no credible casus belli. Iraq has made no aggressive move towards anyone. The threat posed by weapons the US cannot prove Iraq possesses does not justify a war. Iraq's neighbours do not feel threatened and have, in fact, reconciled and achieved a fair degree of rapprochement with Baghdad.

George Bush junior cannot claim the moral high ground because his administration has repudiated international treaties and institutions designed to regulate nuclear weaponry, environmental pollution, the use of landmines, and the conduct of military campaigns. His isolationist unilateralism has antagonised the traditional European allies of the US and further alienated members of the international community which normally keep their distance from Washington's doings. Today an international coalition against a US war on Iraq is rapidly emerging. Bush junior can only claim to have the reluctant support of British Prime Minister Tony Blair who does not enjoy the backing of either his own Labour party or the British public on this issue.

Germany, France, Italy and Spain have made it clear they will not contribute troops to “Gulf War II”. Russia, which went along with “Gulf War I”, flatly opposes the idea. Japan has said that it would not back any action that does not have a Security Council mandate.

The Arab countries which joined Bush senior's coalition — Saudi Arabia, Egypt, Oman, Morocco, Kuwait and Syria — have flatly rejected a new campaign. The Beirut Arab summit in March tried to head off such a possibility by effecting a reconciliation between Iraq and Kuwait and warning that an attack against any Arab country will be seen as an attack on all.

The Arab leader responsible for these two decisions was Saudi Crown Prince Abdullah, who has deeply upset the Bush administration by refusing to permit US forces to launch attacks on Iraq (and Afghanistan) from bases in the kingdom. His Majesty King Abdullah has taken the same line. Their rejection makes it all the more difficult for other Arab countries to cooperate with the US.

George Bush junior does not have external financial backers for his war against Iraq which could cost more than $80 billion.

Finally, the current Bush administration is determined to wage war without reckoning post-war costs. Indeed, President George Bush made it clear while campaigning for the top job that his administration would not engage in peacekeeping and nation-building. However, failure to do so in Iraq could be disastrous.

Last week, in testimony to the Senate Foreign Relations Committee, a retired US army officer, who now works for a Washington think-tank, put forward some estimates. Colonel Scott Feil, formerly head of the strategy division in the joint chiefs-of-staff, said that 75,000 troops would have to be deployed as peacekeepers if the present government was removed. This would cost $16 billion in the first year. The mission would require special operation units, airborne troops, infantry brigades, armoured divisions and trainers. US troops could face threats from Kurdish, Shiite and Sunni factions intent on settling old scores and securing territorial and political advantages. US forces could also have to deal with Turkey, which has long sought to occupy Kirkuk and Mosul and the nearby oilfields, and Iran, which has ambitions in southern Iraq.

Finally, George Bush junior has made no effort to show goodwill towards the Arabs.

Indeed, he has done everything to antagonise them. As soon as he took office, Bush distanced his administration from the effort to secure a negotiated settlement between the Palestinians and Israel. Consequently the progress towards a deal reached during the last weeks of the Clinton administration was lost. Furthermore, Bush has backed the war of attrition against the Palestinians being waged by Israeli Prime Minister Ariel Sharon, the “butcher of Beirut”.

Instead of curbing Sharon, Bush has said that Israel has a right to “defend itself” in any way it sees fit and referred to Sharon as a “man of peace.” This characterisation shows that Bush knows nothing of Sharon's bloody track record, and of his determination to transform all of geographic Palestine into “Greater Israel.” Bush has also placed Washington's traditional friends in the region in a difficult position by snubbing Palestinian President Yasser Arafat, blamed him for the rising cycle of violence although Sharon is the man responsible and called for “regime change” in Palestine at a time “regime change” would be more appropriate in Israel.
Adding insult to injury, US Defence Secretary Donald Rumsfield, a senior administration hawk, has departed from longstanding US policy by calling the West Bank and Gaza, captured by Israel in 1967, as “so-called occupied territories.” He stated, “..there was a war. Israel urged neighbouring countries not to get involved in it once it started. They all jumped in they lost a lot of real estate to Israel because Israel prevailed in the conflict.” Consequently, he refused to call upon Israel to abandon its settlements in the conquered areas.
By these comments Rumsfeld revealed that he is as dangerously ignorant as Bush junior.
Rumsfeld also attempted to mollify Saudi Arabia by saying that a Washington Post report on a briefing alleging that Saudi Arabia is an “enemy” of the US was “unfortunate.”
According to the Post, an expert from the Rand Corporation think tank told the top Pentagon advisory board, “Saudi Arabia supports our enemies and attacks our allies” and is the “kernel of evil, the prime mover, the most dangerous opponent” of the US in the region.
While the administration and Rand promptly distanced themselves from these remarks, the Post quoted an official who said that “people are recognising reality and recognising Saudi Arabia is a problem.” A problem because Riyadh will not go along with Bush administration policies.
However, Rumsfeld's observation that the view of the Rand expert “does not represent “dominant opinion” in the administration cannot but raise Arab concern. This view has, apparently, been adopted by Vice President Dick Cheney, angered when the Saudis and other Arabs told him the US should not go to war against Iraq during his highly publicised tour of the region last spring.
One cannot underestimate the dangers posed by the ignorance or the ill will exhibited by some members of this administration. Combined with a unilateralist agenda and the power to carry it out, their ignorance and ill will pose a very serious threat to the region and to the well-being of the whole world.


3. - Associated Press - "Leader: Iraqi Kurds won't 'blindly' join U.S. front":

ANKARA / August 7, 2002

A key Iraqi opposition figure said Wednesday his group would not "blindly" commit to any U.S. plans to topple Saddam Hussein.

Jalal Talabani, leader of the Patriotic Union of Kurdistan, one of two Kurdish factions controlling northern Iraq, spoke during a visit to Ankara. He was en route to Washington for meetings with U.S. officials along with other opposition figures.
"We are not for blindly participating in any attack or in any plan," Talabani said after talks with Turkish Foreign Ministry officials. "We are not in favor of having a new dictatorship replacing the old one."
Iraqi Kurds control an autonomous zone in northern Iraq that could become a key base if U.S. forces try to oust Iraqi leader Saddam Hussein.
Kurds enjoy a large degree of freedom in the autonomous areas and are concerned about what type of government would replace Saddam and if the Kurds would continue to enjoy autonomy.
Kurds rose up against Saddam after the 1991 Gulf War, a rebellion that was suppressed by Iraqi forces. Many Kurds had been looking to the United States for support during that rebellion and are extremely hesitant to consider joining any U.S.-led alliance.
Earlier, Talabani told private NTV television he was confident that the Iraqi opposition could unite against Saddam.
"There is a high possibility of unifying the opposition," NTV quoted Talabani as saying. "I think a new front will emerge."
Talabani was scheduled to meet with military officials to discuss the prospects of U.S.-led military action against Iraq.
Turkey is extremely wary of any cooperation with the Iraqi Kurds. It fears they could set up an independent state that might encourage Turkey's own restive Kurdish minority.
Turkey was a staging point for attacks against Iraq during the 1991 Gulf War and would also be key to any future coalition.


4. - Financial Ttimes - "Dervis paves way for Turkish alliance":

By Semih Idiz in Ankara and Quentin Peel in London

August 06, 2002

Kemal Dervis, Turkey's embattled economy minister and architect of the country's economic stabilisation programme, on Tuesday spelt out what sounded like an election platform for the next Turkish government, in an apparent bid to unite the divided parties of the centre and centre-left.
Addressing local businessmen in the central Anatolian city of Eskisehir, Mr Dervis talked about the need for the elections in November to produce a "strong government with a unified vision" that would administer the country along rational lines, and attract new foreign investment.
His speech followed an ultimatum from Bulent Ecevit, the prime minister, for him to decide if he still supports the ruling coalition. The defection of many members has forced the government to call an early poll.
Mr Dervis's political statement and public attempts to bring together a liberal-leftwing alliance to run in the elections have angered the premier.
But Mr Dervis is seen in the financial markets as the one person guaranteeing implementation of economic reforms backed by a $16.3bn package of loans from the International Monetary Fund.
The next $1.1bn tranche is due to be approved by the IMF on Wednesday.
Repeating that he was a social democrat, the economy minister said on Tuesday that Turkey must reform its system of government. He said that a coalition where the partners represented radically different political views could only serve to preserve special interests.
In an earlier interview with the Financial Times, Mr Dervis called for the country's three social democratic parties to unite behind a common platform and a common candidate for prime minister.
He ruled out running for prime minister himself, insisting that his job was to manage the economy.
At the same time he praised the package of human rights reforms approved by the outgoing Turkish parliament at the weekend, saying that it "virtually fulfils the Copenhagen criteria" laid down by the European Union as the prerequisite for membership of the EU.
"There is a huge mobilisation in favour of Europe," he said. "Now Turkey's expectations from Europe are for a very decisive step forward."
Mr Dervis said that with the latest reform package, "it is very hard to argue that [membership] negotiations cannot start".
As for his own political plans, he said that he supported Ismail Cem, the former foreign minister, who quit the government to launch the New Turkey party in July.
"We will move together," Mr Dervis said. "But at this point I would like to try to convince all my colleagues that it would be better to join forces."


5. - Turkish Daily News - "ANALYSIS - Military stands firm in mire of Turkish politics":

Turkish Army's persistent influence in civilian life is at odds with Turkey's stated aim of joining the EU, a goal publicly embraced by the generals. Prof. Yayla said the army would play a crucial role in the coming months both in domestic politics and on the international stage.
"It wouldn't really make so much difference who is in charge (of the military) if AK Party is the winner," said Professor Hasan Unal of Bilkent University. Unal predicted Ozkok would be as tough on AKP as his predecessors were on Necmettin Erbakan, whose government was forced from power in 1997.

August 08, 2002 / by Claudia Parsons


In the unpredictable world of Turkish politics, there is one player that stands firm, lending a guiding hand and guaranteeing the principles of the secular state it vows to defend at all costs.

The military has carried out three coups since 1960 and as recently as 1997 forced an Islamist-led government out of power on the grounds that it threatened to overturn Muslim Turkey's fierce brand of secularism.
"We don't have a government. The prime minister is sick, everybody is looking forward to elections. The only establishment we have is the army," said Atilla Yayla, professor of political science at Hacettepe University.
Prime Minister Bulent Ecevit fought a losing battle last month to avert early elections, now set for November 3.
For several months his three-party coalition had been crumbling, divisions deepening over joining the European Union. Ecevit fell ill at the start of May and was away from his desk for nearly two months.
The army sees itself as the guardian of Turkey's secular democracy, and has always handed back power after its coups. Surveys show it is the most trusted institution in Turkey.
But the army's persistent influence in civilian life is at odds with Turkey's stated aim of joining the EU, a goal publicly embraced by the generals.
Yayla said the army would play a crucial role in the coming months both in domestic politics and on the international stage.
Turkey's election comes at a time of growing speculation that Washington is preparing military action in Iraq to topple President Saddam Hussein. The United States is expected to lean heavily on its NATO-ally Turkey for support in the operation.
"The army will decide what to do in all these issues, which is good for the United States," Yayla said, adding that the military would prefer to be involved in any U.S. action but would drive a hard bargain to protect Turkey's interests.
Turkey fears war in Iraq would damage its already fragile economy, recovering from a deep crisis last year, and could lead to the creation of a Kurdish state in northern Iraq that Ankara fears would encourage separatism among its own restive Kurds.
Ankara, led by the generals, will be seeking concrete guarantees before it commits itself to help in an attack.

Divided Cyprus

The attitude of the military will also be crucial in another foreign policy conundrum -- finding a solution on the divided island of Cyprus where peace talks underway since January have made little progress so far.
Peace talks have been given added urgency by the fact that Cyprus is close to finalising membership of the EU, expected to happen in 2004 or 2005. Ankara has threatened to annex the north if Cyprus is admitted without a solution, creating the potential for a major crisis in Turkey's relations with the EU.
Turkey's newly appointed chief of general staff, General Hilmi Ozkok, has plenty of experience on Cyprus. As head of Turkey's land forces until his promotion this weekend, he has visited the island frequently and has made clear his firm support for Turkish Cypriot leader Rauf Denktas's hard line.
On a visit to Cyprus in January, Ozkok said a solution based on two sovereign states was the only way to prevent a crisis in the region. Such an idea is anathema to Greek Cypriots. Ozkok warned of problems if the EU accepts Cyprus without a solution.
"We think that such a development will cause a continuous crisis atmosphere in the east Mediterranean," he said.

AK Party viewed with suspicion

On the domestic side too there are some who warn of looming crisis. The Justice and Development Party, AKP, formed from the ashes of an Islamist party banned last year, has topped most opinion polls in recent months.
Western diplomats, however, say AKP leader Recep Tayyip Erdogan has made efforts to move away from his Islamist roots and on policy he now resembles other conservative parties.
Military analyst Mehmet Ali Kislali said the generals would be unlikely to act hastily even if AKP were to come to power.
"Of course they would be worried and they would follow developments very carefully, and if they think the basic principles of the republic are in danger, they may (do something)," Kislali said.
"Nobody should make a wrong calculation," Kislali said. "I'm sure Erdogan...learned a lot in the last few years so I don't expect they would make the same stupid mistakes of Erbakan."


6. - AFP - "Turkish labor minister resigns in row over workers' rights"

ANKARA / August 07, 2002

Turkey's Labor Minister Yasar Okuyan has resigned amid controversy over a bill aiming to expand the rights of workers in line with European Union standards, deputy Prime Minister Sukru Sina Gurel said Wednesday.
Announcing Okuyan's resignation on NTV television, Gurel defended the legislation intended to make it more difficult for employers to sack workers.
Although a member of the pro-business Motherland Party, junior partner in Prime Minister Bulent Ecevit's three-party government, Okuyan was in favor of the bill.
The row adds to the woes of the shaky coalition at a time when it is heading towards early elections in November in the wake of a severe government crisis.
Business groups had earlier put strong pressure on the government to stop the legislation, expected to be debated in parliament on Thursday, on the grounds that it would increase their difficulties at a time when a severe economic crisis was already plaguing them.
"This is a new arrangement to come closer to EU and International Labor Organization (ILO) criteria" in the labor field, said Gurel, who is also Turkey's Foreign Minister.
"It is high time for us to align with EU norms in this field as well, and not only with the EU's political criteria," he said, referring to sweeping democracy reforms passed by parliament last week.
The bill enables sacked workers to sue employers and obliges employers to prove that the sacking is not in breach of contract terms.
If the court rules in favor of the plaintiff, the employer is obliged to either take the employee back or pay compensation amounting to at least six months' wages.
The bill also says that union activities by workers, pregnancy, gender, political convictions, ethnic and religious background cannot constitute a reason for ending work contracts. It also makes mass lay-offs more difficult.
Turkey's biggest confederation of unions, Turk-Is, denounced efforts by the business comunity to impede the reform.
"This bill brings no financial burden for employers, not even a penny," Turk-Is head Bayram Meral told reporters.
"We expect the parliament to pass this bill and we expect employer circles to give up their pressure against it," he added.