IT IS TIME FOR SMART POLICIES BY SAMI KOHEN (MILLIYET)
President Ahmet Necdet Sezer received the Belgian Deputy Prime Minister and Minister of Foreign Affairs, Louis Michel, and an accompanying delegation yesterday. Emphasizing Turkey's desire to develop bilateral relations with Belgium, President Ahmet Necdet Sezer asked the Belgian Minister to support Turkey's EU membership during the Belgian Term Presidency in the EU. The delegation also met with Turkish Grand National Assembly (TGNA) Speaker Omer Izgi and Premier Bulent Ecevit. /Turkiye/
The former German Minister of Foreign Affairs, Hans Dietrich Genscher, evaluated Turkey's full EU membership process at the "EU and Turkey Conference" held by the Euroseminars in Istanbul. He said the full membership of Turkey would be a productive and positive elements for both Turkey and the EU. Genscher evaluated Minister of Foreign Affairs Ismail Cem's proposal for the EU Partnership Council to meet in September to discuss Turkey's steps in the accession period as a proposal which should be taken seriously. Stating the EU can just offer the full membership to a country, Genscher said, "However, the decision for the full membership should be taken in that country. Turkey also has to decide which steps she will take. Turkey should also determine whether to accelerate the process or not." /Hurriyet/
The Government began the 2002 budgetary studies. The decree for the 2002 budget issued by the signature of Prime Minister Bulent Ecevit, said investments from the budget in the new year will reach up to TL 5 quadrillion. Ecevit demanded support for the economic program from all segments of society in the decree. He said, "The use of the civil resources in a very thrifty and efficient way is much more important now than compared to the past." /Cumhuriyet/
The Minister of National Defense Sabahattin Cakmakoglu traveled to Tbilisi yesterday to pay an official visit at the invitation of the Georgian Minister of Defense. Cakmakoglu will discuss bilateral relations with Georgian authorities. He is also expected to be received by Georgian President, Prime Minister, and meet with Minister of Foreign Affairs and Parliament Speaker. /Turkiye/
The European Court of Human Rights will take up the appeal of the Welfare Party, closed by the Constitutional Court, on July 10 and make a decison over the case. The Court will not declare its decison soon. Following the writing of the decision including the reasons, by the Secreteriat of the Court, the decision is expected to be announced to the public last week of July. /Turkiye/
In the report prepared by the European Commission Against Racism and Intolerance (ECRI), it was stated that the Article No. 312 of the Turkish Penal Code should be carried out not only in the separatist tendencies and the fundementalist ideologies, but also in all the fields which it "guarantees." This complaint of the ECRI derived from the claim that the 312th Article was not carried out particularly against the anti-Semist tendencies. /Milliyet/
Within the framework of the "F-4E Phantom" war plane modernization project, the first modernized F-4E plane in Turkey was delivered to the Turkish Air Force Command. In the delivery ceremony held in Eskisehir, the Chief of the General Staff Gen. Huseyin Kivrikoglu said Turkey is in a crisis center, one of the most important in the world. Stressing Turkey should have powerful armed forces, Gen. Kivrikoglu said, "Turkey's powerful armed forces is the major assurance for the peace and stability in the region." The project envisages modernization of 54 F-4E planes in total. 28 planes will be modernized in Turkey, and the others in Israel. /Turkiye/
The Middle East Technical University (METU) will establish a campus in the Turkish Republic of Northern Cyprus (TRNC). The METU Campus will ensure education opportunity for 10 thousand students. It is expected to start education in 2002 and to contribute to the TRNC economy estimated at $ 50 million annually. /Turkiye/
A Turkish ship named "Muzaffer Senkaya" sank in the Aegean Sea two days ago. Five crew were saved at first by other ships including a Greek one named "Champion Zed", and then four more were also rescued after a period of rescue-search work. /Cumhuriyet/
State Minister for Economy Kemal Dervis is continuing his contacts abroad. Last night Dervis proceeded to Washington where he will stay until July 7 and hold a series of meetings. Dervis is expected to meet the US Secretary of Treasury, Paul o'Neill, Chairman of the International Monetary Fund (IMF), Horst Kohler, and the US Trade Representative Robert Zoellick, as well as high level authorities from the World Bank. As today is the Independence Day of America, Dervis will begin his meetings tomorrow. Reportedly, Dervis will try to convince the IMF authorities for the loan to be extended to Turkey. /Turkiye/
The Government has reacted to IMF's postponement of the meeting during which the $1.5 billion loan to be delivered to Turkey would be discussed. Stating that he could not understand IMF's attitude, Prime Minister Bulent Ecevit said, "We have enacted all the laws they demanded so far. I spoke to the IMF Chairman on Friday and said that Turkey did her part very well. There did not seem to be a big negative development. I don't understand why they postponed the meeting." The Motherland Party (ANAP) Acting Group Chairman Ibrahim Yasar Dedelek said the Republic of Turkey was no Republic of Bananas. He emphasized that IMF's concerns over the management of Telekom and pressures over President Sezer to sign the bills as soon as possible damaged Turkey's independence and sovereignty. Democratic Left Party Ankara Deputy Uluc Gurkan said, "IMF also damaged itself, not just Turkey." Nationalist Acton Party (MHP) Acting Group Chairman Mehmet Sandir said, "IMF's postponement decision is not a productive attitude for Turkey-IMF relations. Economy must not dominate politics. If IMF extends the period for the additional loan, we shall activate our domestic resources." /Cumhuriyet/
Stating the IMF would not give up supporting Turkey, The Chief of the General Staff General Huseyin Kivrikoglu said, "They would not leave us in trouble." Attending the of the US Independence Day, Kivrikoglu spoke about Turkey's relations with the EU and IMF. Stating there might be behind-the-scenes scenarios resulting in the postponement of the IMF meeting, he said IMF might have certain demands beyond the ones mentioned in Turkey's Letter of Intent. Stating European countries had a feeling of exclusion for Turkey, Kivrikoglu said Turkey had to renew its image and correct such a negative attitude. He said, "According to a recent research, Turks, Serbians, and Albanians are not viewed as Europeans. What we should do is to correct European people's negative views towards us." /Hurriyet/
The meeting concerning two separate loans amounting to 1 billion 700 million US dollars to be extended to Turkey by the World Bank and the signing of this agreement was postponed. It has been previously decided that this agreement would be signed in Washington with the participation of the State Minister Kemal Dervis on July 5th. However, the International Monetary Fund (IMF) also acted simultaneously with the World Bank and decided to postpone the loan. Acting Chairman of the World Bank, Sven Sandstrom, stated, "After the undertakings in the banking and telecommunication fields are met, the Financial and Public Sector Harmonization Loan amounting to 1 billion 100 million US dollars and the Agricultural Reform Credit amounting to 600 tousand US dollars will be extended to Turkey." Sandstrom further stated that the discussion of the loan within the context of the country Aid Loan was postponed. /Milliyet/
In the news published in the "Financial Times" daily, it was stated that the cause of the postponement of the Executive Board of the International Monetary Fund (IMF) meeting was Turkey's not keeping the promises that she has given concerning the banking and establishment of the Turk Telecom administration. In the news, it was written, "Turkey has promised the IMF that the establishment of Turk Telecom administration will be independent from the political interests." It was further stated that however, only two appointments have been made in the Turk Telecom administration by the State Minister Kemal Dervis and the other people have been appointed by the Nationalist Action Party (MHP)." /Milliyet/
The government is planning to change the rates of withholding on bank deposits and slap rates varying by maturity, the Anatolia news agency reported yesterday. The Finance Ministry has proposed to apply different withholding rates on bank deposits, instead of the current fixed 16 percent, which will help banks collect long-term funds, and thus, overcome a maturity mismatch problem. The General Directorate of Revenues welcomes the proposal, provided that it doesn't cause a loss of budget revenue, and agreed to deal with the issue and determine the new rates. /Turkish Daily News/
The Turkish Treasury met about 62 percent of nominal bids in a debt auction on Tursday by selling a net TL 147.8 trillion of five-month bills. The interest rate of over 91 percent was above market predictions and comes after the International Monetary Fund on Monday decided to postpone payment of a 1.562 billion US dollars tranche of Turkey's crisis aid package. /Turkish News /
According to the records of the Turkish Exporters Assembly (TIM), the exports have increased by 9.2% in June when compared to the same period of last year and has reached 2 billion 629 million US dollars. The exports have increased by 12.9% and have reached 15 billion 258 million US dollars in the first six months of the year. /Milliyet/
The inflation rate's tendency towards increasing, which has started due to the economic crisis occurred in February, has begun to slow down in June. The Wholesale Price Index (TEFE) has increased by 2.9% and the Consumer Price Index (TUFE) has increased by 3.1% in June. The seasonal decrease in the agricultural prices has been an important factor regarding the monthly inflation rate decrease when compared to the decrease in March, April and May. /Milliyet/
Experts state that the reason for the markets' not responding to the postponement of the IMF negatively is connected with the summer time vitality in the markets. The Central Bank authorities said that although this development could have resulted in serious troubles in a different period, the postponement decision did not cause a turbulence in the markets because of the great vitality in the tourism sector. They said, "IMF's decision did not bring about the negative results expected because we are in a period during which the flow of foreign exchange is abundant. There are a great improvements concerning the tourism sector. Therefore banks do not need foreign exchange in this period. Additionally, markets are also aware that the government has fulfilled much of the its commitments to the IMF." /Hurriyet/
In the report titled "Cost of Living in the World" by the Economic Intellegency Unit (EIU) within the "The Economist" group, it was suggested to the travellers to go to the Middle Eastern countries instead of Asia. It was also suggested that the travellers prefer Istanbul instead of Tokyo. The EIU's research is made twice a year by carefully examining the prices and the basic products in 133 countries. According to the research, the cheap cities are Istanbul, Lisbon, Rome and Dublin. /Milliyet/
A group of 30 Greek tourists have come to visit Cappadocia. The Greek tourists are also mountaineers and started to climb to the peak of Mount Erciyes after performing a traditional Turkish dance at Tekir Plateau, Anatolia news agency reported on Tuesday. The group came to Turkey from Thessaloniki to explore the Cappadocia region and visited Erciyes Ski Center on Tuesday after being informed that Erciyes is the most appropriate mountain for climbing. /Turkish News/
Following Turkey, Greece, Tunisia, Bulgaria and Austria, the Magic Life has included Egypt to its hotels chain. Magic Life is serving the Nile, since May. The Chairman of the Magic Life Executive Board, Cem Kinay, said tourists have a nice voyage with a ship of 72 meters in length and 14 meters in width along the Nile river. /Turkiye/
Columnist Sami Kohen comments on the withdrawal of 'smart sanctions' to be implemented in Iraq. A summary of his column is as follows:
"Iraqi press is giving out cries of victory as always. 'Babil' daily defines the withdrawal of 'smart sanctions' draft proposed by the British with the support of the US at the UN Security as the rejection of US sovereignty. Baghdad radio claims that this event in itself proves that Iraq was right after all. The pleasure of the Iraqi Administration is not groundless at first sight. Certainly, the withdrawal of 'smart sanctions' by the UN is a success for Iraq. The US and Britain were left alone in the support lent to this proposal. Even their allies such as France opposed the draft. Finally when Russia indicated that she might use her veto power after all, Britain had to withdraw the bill. However, this does not mean that sanctions are lifted altogether. The 'food for oil' program will continue at least till the end of the year. The embargo implemented against Iraq is still in force. This should not please the Iraqis whose problems will go on for some time. Now, Baghdad has to resume the oil export she stopped while the talks over 'smart sanctions' were continuing and to comply with the old conditions put forth by the UN.
The new sanctions system defined as smart, envisaged widening the scope of goods exported to Iraq, (particularly foodstuff, pharmaceuticals and consumer goods) but restricting the export of goods that can be used for other purposes as well as for military purposes. According to this draft, Iraq would have to take measures against border trade and smuggling. A system controlling the revenues of official trade with Iraq would also be formed to prevent Saddam from using them for the purchase of weaponry. With the defeat of the joint US-British venture there is a retreat to the old system. The resolution adopted by the UN eleven years ago is still in force and so long as Iraq does not permit the control of mass murder weapons on her territory there is no end to it in sight.
The withdrawal of 'smart sanctions' proposal relieves Turkey. Ankara was concerned that the new system would bring new responsibilities to her. When complied with this system, border trade would end, and the people in the region would suffer as a result. Trade with Iraq was to be under international control, which did not seem right to Turkey. Last week Turkish Ambassador to the UN, Umit Pamir in a speech he delivered at the Security Council expressed Turkish concerns over the issue and stated that Turkey was in favor of lifting the embargo to Iraq. Pamir also called on the UN to enter a dialogue with Iraq. With the suspension of 'smart sanctions' this call gained a new importance. If Iraq is convinced to permit military controls, it is highly probable that the policy of sanctions will end in a reasonable time. If Saddam can be more flexible and be practical, encouraged by the success he claims to have achieved, he would have done a great service to both his nation and the people in the region. Now is the time to follow smart policies for all."
