Anadolu Agency: News in English, 02-01-30

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From: The Anadolu Agency Home Page at <http://www.anadoluajansi.com.tr/>

ANADOLU AJANSI

HABERLER

30 January

2002 Wednesday

Türkiye

Dünya

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Ekonomi

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Türkiye

CONTENTS

[01] TURKEY-PRESS SCAN

[02] DEPUTY PRIME MINISTER OZKAN RECEIVES U.S. TREASURY UNDERSECRETARY TAYLOR

[03] DERVIS SAYS MARKETS WILL ABSOLUTELY CORRECT EXCESSIVELY VALUED TURKISH LIRA

[04] STATE MINISTER DOGRU STARTS HIS CONTACTS IN AZERBAIJAN

[05] SWEDISH DEPUTY PRIME MINISTER HJELM-WALLEN VISITS MAUSOLEUM OF ATATURK AND MEETS WITH FOREIGN AFFAIRS COMMISSION CHAIRMAN INAN

[06] LAND FORCES COMMANDER GEN. OZKOK COMES TO TRNC

[07] PRIME MINISTER ECEVIT LEAVES FOR BULGARIA (2)

[08] TURKEY IMPORTS NEARLY 16 BILLION CUBIC METERS OF NATURAL GAS IN 2001

[09] STATE MINISTER KARAKOYUNLU RECEIVES U.S. TREASURY UNDERSECRETARY TAYLOR

[10] TURKEY WITHDRAWS ITS DECLARATION ON ARTICLE 5 OF ECHR

[11] TURKEY CONTINUES TO MAKE SUGGESTIONS TO BOTH SIDES IN MIDDLE EAST

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

S&P CHANGES OUTLOOK ON TURKEY FROM STABLE TO POSITIVE

Standard and Poor's (S&P), a leading international rating organization, changed outlook on Turkey from stable to positive. This means that Turkey's rating would be upgraded if positive developments in the economy continue. Releasing a statement, S&P said that Turkey's macroeconomic and structural reform policies which were backed by a three-year maturity IMF loan of 16 billion U.S. dollars would play an important role on decrease in Turkey's debts this year and settlement of them on a sustainable level and that this was effective in revision in outlook on Turkey. S&P said that it would upgrade Turkey's rating if the economic programme continued on track.

MILLIYET (LIBERAL)

GREEK DEPUTY FM IN HEYBELIADA
Greek Deputy Foreign Minister Yannis Magriotis and his wife Fotini prayed in old Ayatriada Monastery in Heybeliada of Istanbul. Magritotis said that ''there was a celebration on January 6-7 in Heybeliada for Saint Yannis and Saint Fotini whom me and my wife carry their names, but we missed it, and we came here now.'' Magriotis also visited Greek Orthodox Highschool on the island. He will attend a religious ceremony in Fener Greek Patriarchate today.

SABAH (LIBERAL)

TAYLOR SAYS BANKING REFORM IS IMPORTANT
U.S. Treasury Undersecretary John Taylor, who is currently in Turkey welcomed Turkey's efforts to overhaul legislation under its 19 billion dollars IMF programme but said implementation of the reforms would be just as critical. ''The laws that are being changed are very important and implementation of those laws is going to be important too,'' Taylor, undersecretary for international affairs, told reporters after meeting academics and economists. ''I think the reforms that the government are putting in place are important and substantial and they are leading the way to an improved economy,'' Taylor said.

CUMHURIYET (LEFT)

NSC SAYS DEMAND FOR KURDISH EDUCATION IS PKK'S INITIATIVE
National Security Council's (NSC) General Secretariat said after the six- hour meeting that ''the NSC discussed separatist activities mainly of demanding education in another language other than the official one which were mainly directed by the terrorist organization PKK, activities which are against the security of the country and the measures taken against these activities at the meeting in line with intelligence and security reports covering the last one year.''

RADIKAL (LEFT)

TURKIYE (RIGHT)

ZAMAN (CONSERVATIVE)

-WORLD BANK'S TURKEY DIRECTOR CHHIBBER: ''WE ARE AT LAST STAGE OF PSFSAL
2 TALKS''
ANKARA - World Bank Turkey Director Ajay Chhibber said on Wednesday that they are at the last stage of completing the talks regarding the Public Sector and Financial Sector Adjustment Loan (PSFSAL 2).

Chhibber met with U.S. Treasury Undersecretary John Taylor the same morning.

Upon questions of journalists after the meeting, Chhibber said that the talks could be finished today or tomorrow, adding that the related statement could be issued until the weekend.

The talks between World Bank experts and Turkish economy officials about the PSFSAL loan worth of 1,3 billion dollars, which will be given to Turkey continue for nearly two weeks.

IMF Turkey representative Odd Per Brek also participated in the meeting.

[02] DEPUTY PRIME MINISTER OZKAN RECEIVES U.S. TREASURY UNDERSECRETARY TAYLOR

The meeting at the Prime Ministry which was close to press lasted nearly 40 minutes.

No statement was issued after the meeting.

[03] DERVIS SAYS MARKETS WILL ABSOLUTELY CORRECT EXCESSIVELY VALUED TURKISH LIRA

Speaking at a cocktail party hosted by Turkish Exporters Assembly (TIM) to mark the start of publishing of its Turkishtime magazine, Dervis said that the currency had come to a specific balance without a Central Bank intervention and TL had started to increase.

Noting that it was a pleasing and necessary development that currency had not increased continuously and Turkish currency had not lost in value continuously, Dervis said, ''people have started to invest in Turkish lira again and this proved that Turkish lira can reach a balance within free market conditions and without a Central Bank intervention.''

Recalling that TL had never gained in value more like this except a few weeks in 1994, Dervis said, ''however, plans are destroyed in another way when it goes the side more. Serious problems occur especially about competitive power of exporters. We encountered the danger of losing again the competition share that we had lost in 2000 especially when one U.S. dollar decreased below 1 million 400 thousand TL. It has not totally lost yet but we have reached the point of losing it. There is really a problem here. We cannot say that this problem can be solved in one way or another but we should get used to free currency.''

''Foreign exchange which continuously gained in value until September triggered the inflation. We ended the year 2001 with high inflation. However, developments since October actually give us the trump card that the inflation will decrease and developments will have positive effects on the price in the domestic market. If this relative stability continues for a few period more, I hope that inflationist expectations will be destroyed. This is very important,'' he said.

Recalling that the civil society and private sector expected the inflations rate to be 50-60 percent although the inflation target in 2002 was 35 percent in the economic programme, Dervis said that this should be corrected in next two-three months.

[04] STATE MINISTER DOGRU STARTS HIS CONTACTS IN AZERBAIJAN

Speaking to reporters after the visit, Dogru said that Turkey and Azerbaijan are two friendly countries, adding that problems related to land transportation, Eximbank credits were solved by mutual understanding.

Noting that the agreement to be signed during his visit to Azerbaijan would also contribute to the improvement of the relations, Dorgu said that ''both countries want cooperation. Azerbaijan is a very important country for Turkey.''

Dogru said he also met with Azerbaijani customs minister Haydarov, adding that he was welcomed in Baku, adding that ''I believe that problems will be solved by reciprocal understanding. Our peoples need that.''

[05] SWEDISH DEPUTY PRIME MINISTER HJELM-WALLEN VISITS MAUSOLEUM OF ATATURK AND MEETS WITH FOREIGN AFFAIRS COMMISSION CHAIRMAN INAN

Later, Hjelm-Wallen met with Parliamentary Foreign Affairs Commission Chairman Kamran Inan.

Speaking at the meeting at the parliament, Inan said that North European countries had very high human rights standards, adding, ''we are doing our best to reach your human rights standards.''

Stressing that Turkey was different from Sweden, Inan said, ''you have nine million population while Turkey has nearly seventy million population. The national income per person in Turkey is between two and three thousand U.S. dollars while it is between twenty and twenty-five thousand U.S. dollars in your country. Sweden is located in a peaceful region while we have eight neighbors.''

Noting that Turkey had recorded progress in individual freedoms and democracy, Inan said that there was a special commission at the parliament for human rights and there was a State Ministry responsible for human rights.

Stressing that fight against terrorism had cost a lot to Turkey, Inan said, ''we lost forty thousand people in this fight. Nobody sees these, but whenever we capture the criminals, their human rights become the matter of discussion.''

Later, the meeting was closed to press.

[06] LAND FORCES COMMANDER GEN. OZKOK COMES TO TRNC

Noting that the opportunity to solve the problem has to be supported by the concerned sides, Gen. Ozkok said that ''we think that establishment of new partnership by the two sovereign states on the island is the only way of preventing any crisis in the East Mediterranean.''

Gen. Ozkok underlined the fact that Turkey would definitely object to the unilateral membership of Cyprus to the EU without finding a solution on the island based on equal sovereignty of states. ''We think that such a development will cause a continuous crisis atmosphere in the East Mediterranean,'' said Gen. Ozkok.

Referring to the Peace-2002 Planning Seminar, Gen. Ozkok said that the measures taken and to be taken to deter possible threats against the peaceful and security atmosphere installed by the Turkish Armed Forces on the island 28 years ago, will be discussed in the seminar.

[07] PRIME MINISTER ECEVIT LEAVES FOR BULGARIA (2)

Noting that he was going to Sofia upon the Bulgarian government's official invitation and that Transportation Minister Oktay Vural and Labor and Social Security Minister Yasar Okuyan were accompanying him, Ecevit said that he believed that Turkish-Bulgarian cooperation both at bilateral plan and international area would further improve in near future as a result of the comprehensive talks he would hold with his Bulgarian counterpart.

Ecevit said that he would also meet Bulgarian President Georgi Purvanov during his visit and he would congratulate him and wish him success in his new mission.

Noting that he would have a bilateral meeting with Bulgarian Deputy Parliament Speaker Kameliya Kassabova, Ecevit said, ''of course, I will meet political and social leaders of our kinsmen in Bulgaria and congratulate them for their valuable contributions to restructuring of Bulgaria.''

''As it is known that rapid political, social and economic changes have occurred in this neighboring country after transition to pluralist democracy. In this framework, the Rights and Freedoms Movement (HOH) led by Ahmet Dogan who displayed a responsible and consciously attitude has taken an important part in political life in Bulgaria. Consequently, HOH became a partner of Saxe-Coburg-Gotha's coalition government after the general elections on June 17, 2001, putting a signature to Bulgaria's brilliant future,'' Ecevit said.

Prime Minister Bulent Ecevit said that Bulgaria started to record progress for integration with EU and Europe-Atlantic institutions, adding that ''Bulgaria has the full support of Turkey in this respect.''

Important developments take place in bilateral economic relations, said Ecevit and recalled that State Minister and Deputy Prime Minister Mesut Yılmaz attended the Joint Economic Commission (JEC) meeting which was held in Sofia.

''The two neighbouring countries reached an agreement to sweep the borders from mines as a concrete sign of the confidence building measures in the Balkans. We will sign the protocol on exchange of documents of ratification on this agreement during my visit. I belive that my visit to Sofia will give positive results both at the bilateral level and also in respect of security and stability in the Balkans,'' he said.

Responding to questions of journalists who reminded Ecevit about the urgent message sent by Palestinian leader Yasser Arafat to him and President Ahmet Necdet Sezer calling for ending of Israeli siege and who asked him if Turkey would take any initiatives about the issue, Ecevit said that ''we will certainly take initiatives. I had particularly focused on this issue during my visit to the U.S. I had stressed that the U.S. had to definitely intervene in the situation in Israel and bring an effective solution. Upon the request of Mr. Arafat for help, I will do what is necessary whenever I return back.''

When his views were asked about the National Security Council (NSC) statement which regarded the applications demanding education in Kurdish as separatist, Ecevit said that it was not possible for Turkey to give any concession about education. ''We have always told that,'' he said.

When a journalist asked him if terrorist chief Abdullah Ocalan would be transferred to F type prison, Ecevit said, ''I also read that in the newspapers. I could not receive any official information about it.''

[08] TURKEY IMPORTS NEARLY 16 BILLION CUBIC METERS OF NATURAL GAS IN 2001

Cakan said that Turkey imported 10,928 million cubic meters of gas from Russia, 114 million cubic meters of gas from Iran, 3,625 million cubic meters of gas from Algeria and 1,197 million cubic meters natural gas from Nigeria in 2001.

He stated that 2,769 million cubic meters of this import were used in the real estates for heating in five provinces.

A total of 872 million cubic meters of gas was consumed in Ankara; 1,568 million cubic meters of gas was used in Istanbul; 47 million cubic meters of gas was consumed in Izmit; 201 million cubic meters of gas was used in Bursa and 81 million cubic meters of natural gas was consumed in Eskisehir by the residences.

Cakan said that one cubic meter of natural gas was sold at 227,300 Turkish liras to the natural gas distribution organizations as of January 8, 2002.

He noted that they brought 30 percent ceiling price to the sale price of the gas which the distribution organizations purchased from the Turkish Pipeline Transportation Inc. (BOTAS) in accordance with the notification on January 8, 2002.

Cakan added that there was no other tax apart from the 18 percent value- added tax on the price of the natural gas.

[09] STATE MINISTER KARAKOYUNLU RECEIVES U.S. TREASURY UNDERSECRETARY TAYLOR

Karakoyunlu said that he told Taylor that Turkish economy was on track and he briefed the ''discussions on opinions and proposals about solution to financial problems of Turkish economy''.

Stressing that they had focused on manufacturing sector and he told Taylor that financial support had provided the desired activity, Karakoyunlu said, ''I told the U.S. Treasury Undersecretary that the economic developments were positive, but Turkey encountered a very important situation against U.S. dollar. I told him that Turkish lira's gaining in value might create problems in the future about our exports and that this should be taken under control in a disciplined way.''

Noting that Taylor had said he had the same concerns, Karakoyunlu said that representatives of finance sector, industrialists and businessmen in Istanbul had conveyed Taylor the same concerns the day before.

Stating that he had informed Taylor on the content of the newly prepared privatization law, Karakoyunlu said that this bill would be presented to the Council of Ministers on Monday, February 4 together with a briefing note.

Responding a question, Karakoyunlu said that the existing law considered the privatization administration a temporary organization and did not set a date for closure of it while the new law stressed that the Privatization Administration was a temporary board and would be in charge for a specific period.

Noting that this was a three-year period, Karakoyunlu said, ''it is impossible to say that there was very successful privatization in last fifteen years. I believe that all of the organizations and institutions which are in the portfolio now will be privatized in next three years. The organization will automatically close down itself after three years.''

[10] TURKEY WITHDRAWS ITS DECLARATION ON ARTICLE 5 OF ECHR

NKARA - Turkey sent a letter to the Council of Europe (COE) Secretary General noting that it withdrew its earlier declaration which had suspended the implementation of Article 5 of the European Convention on Human Rights (ECHR) in emergency regions.

Speaking in a news conference on Wednesday, Foreign Ministry Spokesman Huseyin Dirioz said that Turkey suspended on August 6, 1990 the implementation of Article 5 of the ECHR which was about custody as fight with terrorism had intensified.

''We withdrew this declaration, and this shows the progress recorded in democratization, supremacy of law and human rights in our country,'' he said.

Dirioz said that Turkey decreased the custody period to four days by the amendments made in the Constitution, adding that ''therefore, the Turkish laws have been brought in line with the ECHR jurisprudence. The reason of Turkey's making such a declaration does no longer exist.''

[11] TURKEY CONTINUES TO MAKE SUGGESTIONS TO BOTH SIDES IN MIDDLE EAST

Speaking in a news conference on Wednesday, Foreign Ministry Spokesman Huseyin Dirioz responded to questions about the messages Palestinian leader Yasser Arafat sent to Turkey.

''It is true that Arafat sent a message to Mr. Prime Minister and Mr. President. However, it is not correct for us to give information about the content of the message for the moment,'' said Dirioz.

When asked if there is a change in Turkey's policy regarding the recent developments in the Middle East, Dirioz said that ''we are in contact with both sides. The international society wants ending of terrorism and violence. We continue to make suggestions to both sides to this end and we will continue launching efforts.''

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