IRAN HANDS OVER TWO TURKISH SOLDIERS

The Turkish Foreign Ministry stated that the two Turkish soldiers who have been detained by Iran since July 22 were handed over to Turkish officials yesterday. A statement issued by the Foreign Ministry said that the two Turkish soldiers were delivered to a delegation headed by Baskale Sub-Governor Sevket Cinbir during a meeting at the Kapikoy Border Gate. The statement remarked that the solution of this problem through good neighbourly relations was pleasing, the Anatolia News Agency reports. The statement added that Turkish Foreign Minister Ismail Cem thanked his Iranian counterpart Kemal Harrazi for his contributions to the solution of the problem.

PKK PRESSURE ON KURDS IN SYRIA

The PKK terrorist organization has resumed its activities against people of Kurdish origin living in Syria. The PKK which has lost power following the capture of the PKK chief Abdullah Ocalan has intensified its activities since it has not received support from the Kurds living in Syria, the Anatolia News Agency reports.

84TH ANNIVERSARY OF THE ANAFARTALAR VICTORY

The 84th anniversary of the Anafartalar Victory will be celebrated today, the Anatolia News Agency reports. Celebrations organized by the Canakkale Governor's Office and the Second Army Corps Command will be held on Gelibolu Peninsula.

TURCO-SYRIAN TOURISM COOPERATION

Tourism Minister Erkan Mumcu stated that the development of relations between Turkey and Syria in the field of tourism would also be beneficial from the economic point of view. Syrian Tourism Minister Danho Daioud and an accompanying delegation, who are in Ankara to attend the Turco-Syrian Fourth Term Tourism Joint Commission Meeting, visited Mumcu yesterday. During the visit, a protocol for the Joint Commission Meeting was signed. Mumcu said during the meeting that Turkey and Syria had deep historical and cultural ties. Syrian Minister Daioud said for his part that they would discuss what they could do in the field of tourism in the future and added that cultural and historical ties would be further developed with their relations in tourism, the Anatolia News Agency reports. The Syrian delegation will proceed to Istanbul today and then leave Turkey on August 11.

HERCUS ON DUTY UNTIL THE END OF SEPTEMBER

The Special Envoy of the UN Secretary-General to Cyprus, Dame Ann Hercus, has stated that she will continue in her post until the end of September. A statement issued by Sarah Russell, the Spokesman for the UN Peace Force in Cyprus, said that the new envoy to be assigned to replace Hercus has not been determined yet. Russell stressed that Hercus would continue with her shuttle diplomacy between the President of the Turkish Republic of Northern Cyprus (TRNC), Rauf Denktas, and the Greek Cypriot Leader, Glafkos Klerides, until the end of September, the Anatolia News Agency reports.

MILITARY OPERATIONS IN SOUTHEAST

During round-up operations organized in the Southeast, seven terrorists, six of whom were killed have been captured, reported by the Anatolian News Agency. In a statement by the Governorship of the State of Emergency Region, during the crack-down by security forces to protect for the welfare and safety of citizens a number of terrorists were killed: one in the rural area of Catak in Van; three in the district of Ercis in Mus; two in Varto; one in the rural area of Dicle. A total of six terrorists have been killed. In Bingol one terrorist was captured alive. It was reported that during the attacks a security official died. Security operations are on-going in the area.

TWO TERRORISTS KILLED

During an operation carried out by security forces in the Karakocan district of Elazig, two members of the PKK terrorist organization were killed yesterday. During the conflict, one Turkish soldier died while one was wounded. Officials said that a crack-down in the region was on-going, the Anatolia News Agency reports. Meanwhile, three people who are allegedly supporters of the PKK terrorist organization were captured in the Menemen district of Izmir yesterday.

MARITIME TRAFFIC CONTROL IN THE BOSPHORUS AND DARDANELLES

The bid put out to build a "Maritime Traffic Administration and Information System" in order to watch, control and direct maritime traffic in the Bosphorus and the Dardanelles has been decided, reported by the Anatolian News Agency. It was reported that German, American and French firms competed for the manufacturing of the system operated by the Undersecretariat for Merchant Shipping and that these firms' proposals had been evaluated. It was also stated that the pricing proposals of those firms that passed the technical examination would be exmined this week. Officials stated that the bid for which the German firm Daimler Benz, America's Lockheed and the French Thomson firm were competing would be decided this month. Traffic will be controlled better with the railway that will be laid along the Bosphorus and the Dardanelles. In addition, this construction will cost almost 30 or 40 million dollars and a bid has been put out to build this railway three times up to now. It was envisaged that the completed system that will be built by the chosen firm would be ready for service in the year 2001. More than 20 institutions and foundations including the Environment Ministry, the Directorate General of Customs, certain units of the Coastal Security Command and marine management will make use of this system.

TURKEY'S CREDIT RATE

One of America's leading rating institutions, Moody's, has stated through their analyst for Turkey, Hanan Amin Salem, that they could convert Turkey's position from "stable" to "positive" after structural reforms have been implemented and once permanent precautions have been taken, reported by the Anatolian News Agency. Hanan Amin Salem, talking about the developments in the Turkish economy and Turkey's credit rate, stated that the government was advancing with its bold steps in the right direction and added, "However, this should be permanent." Salem, declared that they are following the developments in the Turkish economy and stated that Turkey's biggest problem was to balance her public finance. Furthermore, permanent precautions were necessary for the public finance deficit. Salem, stated that now Turkey is experiencing an important period in the sense of showing the business world that she is determined. He said that there has been talk of reform for many years but the business world wants tangible developments. Salem, emphasizing the importance of reforms such as the agriculture reform and privatisation, stated that the Social Security Reform and International Arbitration were also Turkey's leading reforms. Talking about the new government's discussions of a positive privatization programme, Salem stated that continuing the privatization process by following this programme would be an important step for Turkey if she wants to increase her credit rate. Salem, further declared that economic references related to the third quarter of the year ought to be looked at in order to gain an idea of the Turkish economy. Moody's thought the IMF would make an agreement with Turkey by the end of the year after examining those references. The IMF also wants to see Turkey taking some tangible steps, according to Salem. He also said that it would determine the agreement with Turkey according to this. Hanan Amin Salem added that it would be better for Turkey to buy Euro bonds while the international markets were on holiday. Moody's, giving Turkey a "B1" mark, considers Turkey's economic position to be "stable".

$60 MILLION IN LOANS FOR TEB

The Turkish Economy Bank (TEB) has received $60 million in syndication loans. An agreement concerning the syndication loan was signed in London on August 3, 1999, a statement issued by the TEB said. /Hurriyet/

CLINTON TO VISIT ATHENS FOLLOWING ISTANBUL

It is reported that US President Bill Clinton will visit Greece. According to an article published in the Greek press, Clinton who is expected to attend the Organization for Security and Cooperation in Europe (OSCE) Summit in Istanbul on November 18 will later go to Ankara for a round of official talks. Clinton will also visit Athens on November 22. Turco-Greek relations will be the main topic at his meetings with Greek officials. /Hurriyet/

PKK DECIDES TO HOLD AN EXTRA-ORDINARY CONGRESS

The PKK terrorist organization, which has announced its approval Abdullah Ocalan's call to lay down weapons, has decided to hold an extra-ordinary congress. A decision made by the PKK central committee, during a meeting held between July 23-29, pointed out that the armed struggle had lost its importance and stressed that there should be efforts to make political issues more important. /Hurriyet/

CEASEFIRE FROM PKK TO BARZANI

It is reported that the PKK terrorist organization will implement a unilateral ceasefire towards peshmergas of the Irai Kurdistan Democratic Party (IKDP) headed by Mesud Barzani as of September 1, 1999. A member of the so-called chairmanship council of the PKK, Mustafa Karasu, said that they had entered a new process and they would accelerate their political and diplomatic efforts. /Hurriyet/

158 IMMIGRANTS CAPTURED

One hundred-fifty eight immigrants who were illegally trying to go from Izmir's Karaburun to Italy have been captured by the gendarmerie. Officials said that a search for the people responsible for the incident were underway. /Star/

BAKU-CEYHAN ON THE AGENDA

Energy Minister and Deputy Prime Minister Cumhur Ersumer said that initiatives would be launched to promote the Baku-Ceyhan crude oil pipeline project. Ersumer stated that the agreements concerning the 'passage country, host country, turn-key and guarantee' would be signed in the near future and pointed out that, however, financial resources were needed before these agreements were signed. Ersumer received the EU representative to Turkey, Ambassador Karen Fogg, yesterday. During the meeting, Fogg stressed the importance of international arbitration which will enable Turkey's membership of the European Energy Charter. Fogg added that she was expecting Turkey's contributions to the Inogate project concerning the transportation of gas and oil in the Caucasia and the Caspian region. /Star/

REFORMS WILL RELAX TURKISH ECONOMY

The General Director of the Treasury's Foreign Economic Relations Department, Aydin Karaoz, has evaluated the borrowing which was launched last week as 300 million Euro and then increased to 400 million Euro and said that they would not increase the amount of borrowing any more, because they had reached their target. Karaoz remarked that there would be no new borrowing until September. He added that new finance provided by the recent borrowing amounted to $2.7 billion. Karaoz stressed that the enactment of laws such as the Social Security and the International Arbitration Laws and the signing of an agreement with the IMF would positively affect Turkey's rating and foreign borrowing. Meanwhile, the Istanbul Stock Exchange index (IMKB) increased 3.63 % and reached 5,807 points yesterday while the rate of interest decreased by 2.3 points. /Star/

ARBITRATION LAW IN PARLIAMENT TODAY

The first meeting concerning the proposal for a Constitutional amendment which will enable international arbitration will be discussed by the General Council of the Turkish Grand National Assembly (TGNA) today. The second meeting will be held on August 13. /Star/

TSKB 'THE BEST INVESTMENT BANK'

'Euromoney' magazine has stated that the Turkish Industrial and Development Bank (TSKB) is the 'Best Investment Bank' in Turkey in 1999. A written statement issued by the TSKB said that quality research and evaluation directed towards the development of capital markets had an important role in this success. The statement added that the TSKB had received this award three times. /Aksam/

AMERICAN PLAN FOR CYPRUS

It has been claimed that the US is preparing a 10-article plan for a solution to the Cyprus problem. The plan prepared by the US State Department will be discussed at the meetings to be held in New York next month. Meanwhile, the President of the Turkish Republic of Northern Cyprus (TRNC) Rauf Denktas reacted to the US plan and said that such a plan could only be made by the two sides on the Island. He added that a plan which only includes the demands of the Greek-Cypriots could not be taken up. /Aksam/

ERBAKAN NOT TO BE INVOLVED IN POLITICS

Prime Minister Bulent Ecevit said that an amendment to the Political Parties Law (SPY) would not affect the former Chairman of the defunct Welfare Party (RP), Necmettin Erbakan. Ecevit stated that Erbakan had been deprived of his political rights for five years. /Aksam/

TURKS LOBBY IN US

Representatives of the Turks living in Georgia, the US, will meet Governor Roy Barnes this week and request the removal of the commemoration day for the so-called Armenian genocide which has been declared by the Armenian lobby in the province. /Aksam/

EMINGOR ON CNN

A Turkish woman who is living in Istanbul with her 400 dogs was given wide coverage on the CNN TV channel yesterday. The programme called 'World Report' on CNN was watched with great interest. /Aksam/

FOREIGN CREDITS FOR KOC

The Koc Holding Company which is preparing to enter the year 2000 with an investment volume worth $2.5 billion has received foreign resources worth nearly $300 million for the investments which have been launched during the past one-and-a-half year. /Turkiye/

KILIC INSTEAD OF DENIZER

Semsi Denizer, the General Secretary of the Turk-Is (Turkish Trade Unions Federation) who was killed on Saturday, will be replaced by Salih Kilic, the General Education Secretary of Turk-Is. Kilic will continue in his duty until December. /Turkiye/

CHECHEN ACTIVISTS RELEASED

Four of the Chechen activists who hijacked the Eurasian ferry going from Trabzon to Russia's Sochi Port in order to protest the Russian policy towards Chechenia on January 17, 1996, were released from Bolu Seben Prison yesterday. /Cumhuriyet/

$4 BILLION FROM EXIMBANK FOR EXPORTS

Eximbank aims at increasing its credit volume to $4 billion within this year. The General Director of the Eximbank, Ahmet Kilicoglu, said that if necessary resources are transferred to Eximbank, their goal will be realized. Kilicoglu stressed that during the first six months, they extended $1.5 billion in short-term credits while this figure reached $1.6 billion for medium and long-term credits. /Sabah/

BANVIT IN HOLLAND

The Banvit Company has decided to establish a firm in Holland. A statement sent by the Banvit Bandirma Vitamin-Rich Feed Company to the Istanbul Stock Exchange (IMKB) said that the company to be set up in Holland would be called Banvit Investment B.V.I.O. /Sabah/

ORDER WORTH $25 MILLION TO ASELSAN

An agreement for the production of various electronic systems worth $25 million required by the Turkish Armed Forces was signed by the ASELSAN Electronic Industry. According to a statement sent by the ASELSAN to the Istanbul Stock Exchange (IMKB), deliveries to be made as part of the agreement signed with the Defence Industry Undersecretariat will be completed between the years 2000-2002. /Sabah/

ECHR REPORT

Europe which criticizes Turkey about human rights violations created a doctrine that ignores Turkey's interior law. The European Court of Human Rights (ECHR) has been looking for the condition to "consume Turkey's ways of interior law" in the applications from the Southeast against Turkey. In ECHR's report it is stated that the authorities put the blame on the PKK without a proof and that the Public Prosecutors do not investigate the suspected incidents in which the security forces are involved. /Milliyet/

TWO EXHIBITIONS IN IMKB

Two exhibitions will be seen at the Istanbul Stock Exchange (IMKB) Building on August 17. The exhibitions will include statues made by Fikriye Aliev Koksal and paintings by Laura Elenes. The exhibitions will continue until September 4. /Hurriyet/

WORLD YOUTH GRECO-ROMAN CHAMPIONSHIP

The Turkish national team which will participate in the World Youth Greco-Roman Wrestling Championship will go to Romania today. The World Youth Greco-Roman Wrestling Championship will be held in Bucharest, Romania, between August 12-15, the Anatolia News Agency reports.

VIENNA SYMPHONY ORCHESTRA IN AMASYA

Tourism Minister Erkan Mumcu said that the Vienna Symphony Orchestra would stage a concert in Amasya on the occasion of the last solar eclipse of this century. The 98-people Vienna Symphony Orchestra will be conducted by Claudius Traunfellner. /Hurriyet/

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

NEW APPROACHES -BY SAMI KOHEN (MILLIYET)

Sami Kohen, a columnist in the daily 'Milliyet' newspaper, says the following in his article today: "During the week in which we gave a break and stopped writing, Turkey discussed two issues: initially, Ocalan's call to the PKK to stop armed attacks and secondly, the problem of arbitration. These two issues are of utmost importance for Turkey's international relations because the evaluations and the decisions to be made concerning these two issues, will affect Turkey's interior relations and her place in the world. Therefore new concepts and new approaches are necessary. Ocalan's order to his organization seems to be a "farewell to arms" at first sight. In fact, while ordering he does not say "disarm and surrender". This call can be considered to be an aim towards a strategic re-organization. The PKK will leave its terrorist aspect and put on a political face because of this re-organization. The new goal is to politicize the organization and thus to support and defend it on the international level. Obviously the PKK's giving up its terror actions is too important for Turkey's security. However, if the PKK puts itself on the agenda as a political action or if the PKK is supported internationally, then Turkish diplomacy will be in danger more than before. For example, the members of the PKK will give up the actions on the 1st of September but then where will they go and how will they act in the places they go? Ankara warns the possible places that they may go. But how effective it is? Is Turkey's reaction not going to make the relations with some of her neighbours more tense? Will Ankara be not be warned by giving examples such as PLO or IRA? Turkish diplomats are now thinking of this dimension of the issue and they are trying to prepare themselves to different scenarios. However, from now on not to come up with reactional policies but to create new strategies related to the subject is necessary. The government, Parliament, the Ministry of Foreign Affairs and all politicians should think over these issues within a creative approach. The discussions related to arbitration are now directed towards an ideological level. In this respect, Sevres Treaty and the caputilations are pertaining to the surface and the superficial opinions towards "arbitration" are addressing to international emotions. This issue should be discussed on "advantages-disadvantages" level. It should be remembered that this issue is closely related with Turkey's political and economic future. In international relations, particularly in economy, those who know that "mutual dependence" makes a change in classical concept of "sovereignity" will probably not reject the need to keep in line with this solution. Obviously the coalition leaders who could understand it give importance to the country's sovereignity, to her basic advantages and to her national values just like those who reject arbitration".

TURKEY AT THE THRESHOLD OF THE CLAMP -BY FUAL BOL (TURKIYE)

Fual Bol, a columnist in the daily 'Turkiye' newspaper, says the following in his article today: "A series of developments has been remarkable in recent days. Greece is softening. Greece is making confessions through the statements made by Greek Foreign Minister George Papandreu concerning the Turks living Western Thrace. Europe is softening. Europe, which has said that we wasted time over Turkey's EU membership, is now saying that the Helsinki Summit is a vital opportunity for Turkey. Germany, Britain and even Italy are extending an olive branch to Turkey. And Ocalan has made a call to PKK terrorists to lay down their weapons and leave Turkey! Turkey is lucky in that she has a strong government. Turkey will see her real friends and enemies; the real faces of those who seem to be friendly towards Turkey will be revealed sooner or later. Turkey is at the threshold of a clamp especially concerning the Cyprus and Northern Iraqi issues". END

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