ECEVIT ON THE AEGEAN

Prime Minister Bulent Ecevit in a press conference he held yesterday said: "It is the best time to find solutions to the basic problems such as the Aegean and continental shelf issues between Greece and Turkey. Both sides have taken positive steps in economic, commercial and cultural areas. We are pleased with these developments. However we should also find solutions to the basic problems between the two countries. Greece is not in favour of discussing these issues in the framework of the recent rapproachement. In order to reach a lasting solution in the rapproachement period, Greece should change it policies over the Aegean." /Hurriyet/

ECEVIT CHIDES IMF

Regarding the suggestions by the IMF Chief of Turkey Desk, Carlo Cottarelli, Prime Minister Bulent Ecevit yesterday said that it is the State that determines solutions for Turkey's economic, financial and social problems. Ecevit told reporters in Ankara: "No international institution has the right to assume the role of the state or society." Stressing that the government tried to comply with the "stability programme" despite the devastating earthquake, the increase in the oil prices and drought, Mr. Ecevit said: "Turkish economy is determined not by the foreign institutions but by our state together with the related public institutions." Mr. Cottarelli had said that Turkey should comply with inflation targets concerning wage and price adjustments and he called for a fine-tuning to cool off the economy. /Turkiye/

ECEVIT ON ECONOMIC SITUATION

Prime Minister Bulent Ecevit said that this year economic growth rate will be at least 6 percent and towards the end of the year it may reach 10 percent. Mr. Ecevit said: " There are tremendous developments at manufacturing and automotive industries, as well as services and tourism sectors. It seems that these developments cause concern for foreign financial circles and the IMF since they think that such kind of a growth rate would negatively affect the stabilization process. Despite the hard economic conditions faced, these positive results show the extraordinary internal dynamism of Turkish people." /Hurriyet/

MINISTER CEM ON CYPRUS

Foreign Minister Ismail Cem met the President of Turkish Republic of Northern Cyprus (TRNC) Rauf Denktas yesterday to evaluate the proximity talks. Stating that the only solution to the Cyprus problem would be full equality between the TRNC and the Greek-Cypriot side, Mr. Cem replied to Greek-Cypriot leader Klerides' assertion on a possible intervention of the Security Council. Mr. Cem said: "The intervention of the Security Council would not change Turkey's policy over the TRNC." Minister Cem will start bilateral contacts today. He is scheduled to meet Greek Foreign Minister George Papandreou on Sept. 16. Mr. Cem will also meet his Belgian conterpart and discuss the extradition of Fehriye Erdal. "Turkey demands Fehriye Erdal be prosecuted because of committing murder.", said the Minister. Meanwhile, Mr. Cem expressed his concern over the so-called Armenian genocide bill waiting to be passed in the US Congress. Stating that Armenian lobbies were putting pressure also over the French Senate on the issue and pursuing such attempts in both Spain and Italy, Mr. Cem said that the governments of these countries were against the attempts of the Armenian lobbies. "Especially US President Bill Clinton and French President Jacques Chirac stated that they would try to obstruct the attempts of the Armenian lobbies.", the Minister said. /Cumhuriyet/

AKINCI: "IT IS TIME FOR A SOLUTION ON CYPRUS"

The fourth round of the proximity talks on Cyprus starts in New York today. TRNC President Rauf Denktas and Greek-Cypriot leader Glafkos Klerides will meet the UN General Secretary Kofi Annan and UN representative to Cyprus Alvaro de Soto separately in the opening session of the talks. TRNC Deputy Prime Minister Mustafa Akinci said: "I hope the proximity talks will be successful. It is time for a solution in Cyprus." Mr. Akinci stated that the success of the talks would create an opportunity for the direct talks and added that Turkey's relations with the EU and Greece were improving which would also result in positive developments in the Cyprus issue. Mr. Akinci said: "Although the two sides have not recognized the presence of each other so far, the solution would be the recognition of one international identity on the island." /Cumhuriyet/

TURKEY'S REQUEST FOR NATO'S NEW HEADQUARTERS

NATO Military Committee Meetings started yesterday in Athens with the participation of the Chief of General Staff Gen. Huseyin Kivrikoglu. Italian Admiral Guido Ventroni presided over the meeting which the Chiefs of General Staff of 19 countries attended. Gen. Kivrikoglu said that Turkey's views over increasing the security measures in the Aegean had been conveyed to Athens by the Turkish Foreign Ministry. Speaking to the press, Gen. Kivrikoglu said: "We have not demanded a meeting with Greek Chief of General Staff Manusos Parayudakis. We hope Athens will make a political decision on the Aegean issue." Stating that Turkey requested the NATO's new headquarters to be placed in Turkey, Gen. Kivrikoglu said: "NATO's most important problem is the transportation. Turkey is the closest country to the crisis regions." /Cumhuriyet/

TURKEY SUPPORTS PALESTINE'S DECISION

Turkey regarded Palestine's decision to postpone proclaiming an independent state as a constructive step in the Middle East Peace process. Turkey has been trying to contribute to the peace process by holding bilateral contacts with the leaders of the both sides and had proposed the Palestinian side to delay the decision. It was reported that officials from the Turkish Foreign Ministry viewed the decision as an opportunity to improve the peace process during which significant steps have been taken so far. /Cumhuriyet/

MILITARY COOPERATION BETWEEN TURKEY AND ISRAEL

Israeli Air Forces Commander Major General Dan Haloutz visited Turkish Air Forces Commander General Ergin Celasin yesterday in Ankara. It was reported that the two commanders discussed the ways to improve the military cooperation between Israel and Turkey. General Celasin said, "Israeli Air Forces are the protector of human rights and democracy in the region." Stating that the military cooperation between the two countries constituted a good example for the other countries, General Celasin said, "The common values strengthen the cooperation between Turkey and Israel." /Cumhuriyet/

TURKISH BRIGADE IN EUROPEAN FORCE

Turkey's proposal to participate in the European Force which will be formed in the scope of the European Security and Defense Identity (ESDI) with a brigade, was welcomed by the EU circles. The final decision on the formation of the European Force will be made during a meeting at the end of November with the participation of the EU and candidate countries' Defense Ministers. /Turkiye/

GREECE SUPPORTS TURKEY'S FULL EUROPEAN UNION MEMBERSHIP

Greece's Ambassador to Ankara Ionnis Corantis said: "We have actively supported Turkey's full EU membership and we will continue to do so." During a visit in the Black Sea region, Mr. Corantis said: "Greece is the only EU country which works directly together with Turkey. We want to share our experiences on this issue with Turkey. Turkey and Greece have similar economic and social structures. Therefore, we try to transfer information about our own preperations on infrastructure carried out before entering the EU." /Milliyet/

TURKISH ASSOCIATIONS TO COUNTER ARMENIAN LOBBY

Turkish Associations in the United States have begun a message campaign to prevent the Armenian lobby's bill on the alleged "genocide" committed by the Ottoman Empire being passed. Both the Assembly of Turkish-American Associations (ATAA) and the Federation of American-Turkish Associations (FATA) have asked Turkish residents in the US, as well as US citizens of Turkish origins, to send letters, e-mails and faxes to their congressmen asking them to vote against the Armenian bill. They are all being asked to say that the Armenian claims should be researched by independent historians and that Turkey should not become the victim of US domestic politics. /Turkish Daily News/

WORLD BANK'S CREDIT

After putting into effect the decree with the power of law (KHK) which enables the privatization of the state banks, the World Bank is planning to grant Turkey $1.250-billion loan at first. In the case of the ratification by the Executive Board of the World Bank, the bank will give Turkey $750 million for the financial sector and $500 million for restructuring the state banks in the scope of the Financial Sector Adoptation Loan (FSAL-1). After the regulations of the whole financial institutions are completed, regarding the FSAL-2, the remaining $750-million loan will also be released. Then, the loan granted to Turkey by the World Bank will reach $2 billion in total. /Turkiye/

THIRD TURKISH ENERGY CONFERENCE

The Third Turkish Energy Conference organized by The Economist, is commencing today in Ankara. During the conference, which will be held on Sep. 12-13, Turkey's energy requirements, energy policies are expected to be discussed. The Minister of Energy and Natural Resources Cumhur Ersumer and Undersecretary Yurdakul Yigitguden will attend the conference and they will deliver speeches. /Turkiye/

TECHNOLOGY AWARDS

At a ceremony held at Middle East Technical University (METU) Congress and Cultural Center, the "technology awards" were presented to their recipients by President Ahmet Necdet Sezer. The Alcatel Teletas Telecommunications won the "Technology Award", while the Sistas Digital Communications Joint Company and the Tesan Textile Machine Limited Company shared the "Accomplishment Award." /Turkiye/

FROM THE COLUMNS...FROM THE COLUMNS...FROM THE COLUMNS

DIPLOMACY IS ALWAYS A HOPE BY SAMI KOHEN (MILLIYET)

Columnist Sami Kohen comments on the Cyprus talks to begin their fourth round in New York. A summary of his column is as follows: "Cyrus and Palestine issues differ in many points. However, recent developments show interesting similarities. In both problems, talks are renewed despite serious bottlenecks. There are no changes in the positions of both sides. In both cases sovereignty forms the main cause of disagreement and deadlock. In both cases, while the sides decide to continue the talks with the influence of the US, an atmosphere of pessimism is dominant. However, the belief that these round of talks is the last chance for a solution and the hope that they may be completed with an unexpected development still prevails. The fourth round of the Cyprus talks which will begin in New York today has the same format as the discussions on which the former rounds are based. That is to say, both leaders, Denktas and Klerides are carrying on these talks with arbitration of the UN Secretary General or his special representative. (During the Middle East peace process Barak and Arafat held face-to-face talks in Camp David. At the new round of negotiations Israeli and Palestinian officials sit on the same table. If an appropriate discussion base can be found, the leaders will hold direct talks.) In the 'proximity talks' concerning the Cyprus issue, disagreement over the concepts of equality and sovereignty lies at the bottom of the contradictory views held by the parties. Denktas wants the equality between Northern and Southern Cyprus and the sovereignty of the TRNC to be recognized before holding direct talks and insists on a confederative solution. Klerides is opposed to that view and insists on a federal system in the light of the resolutions supported by the countries mediating recently and as adopted formerly by the UN. It is not clear whether this new round of talks will bridge the gap between the sides. There has been no development to that effect since the talks began in Geneva. However, diplomacy always instills hope in people. Therefore, the sides cannot just pull out from negotiations. May be it will lead to a new formula and this time pave the way for a compromise. The situation is no different in the Middle Eastern peace process. There have been no changes in the stances of either Barak or Arafat. However, it has been decided to continue with the negotiations. The proclamation of independence by Palestine has been postponed upon the request of Arafat. The negotiations between Israel and Palestine are considered to be the last chance to preserve the peace. These negotiations are deadlocked on the sovereignty of Jerusalem. Just as in the case of Cyprus, diplomacy has become a hope and even though it may seem like expecting a miracle at the moment, it will open the path for a compromise."

DIPLOMACY OF FINE-TUNING BY GUNGOR MENGI (SABAH)

Columnist Gungor Mengi comments on Prime Minister Ecevit's statement concerning the IMF Turkey Desk Chief Carlo Cottarelli's words. A summary of his column is as follows: "The fight against inflation has reached a critical point. Behaviour which would create negative psychological effects is always a danger and they should be avoided. IMF Turkey Desk Chief Carlo Cottarelli suggested a fine-tuning in economy to overcome the difficulties caused by the rising oil prices and the increase in the foreign trade deficit. These suggestions directed towards decreasing consumption, lowering wage increases and rises in fuel prices led to the reactions of the people who are frustrated with the high cost of living. Although inflation has entered into a declining trend, the suggestions and warnings by the IMF and the high cost of living are being used as a means to provoke the people. The Chairman of Turk-Is Labour Union Bayram Meral in a reply to Cottarelli's statement concerning the wages at the Economy Summit in Antalya has said that, if he was such an expert for fine-tuning, there was no need for other bureaucrats or professors in Turkey. Fearing that this approach will find support among the people, Prime Minister Bulent Ecevit found it necessary to make a statement on the issue. He said that Turkey's economic, financial and social policies were determined by the State and no other institution had the right to put itself in the position of the Turkish State. In fact, Cottarelli did not deserve such a challenge. He had said that the programme was determined by the Government. However, this should be considered as a fine political maneouvre for fine tuning. This should be understood as a maneouvre directed to create the necessary social background to implement the additional measures."

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