22 September 2001, Copyright © Turkish Daily News

Ecevit: We can train Afghan opposition

Bush calls Sezer:
We want to see Turkey with us

Tacan Ildem, top foreign policy advisor of Turkish President Ahmet Necdet Sezer, announced on Friday that U.S. President George W. Bush had called President Ahmet Necdet Sezer.

"Bush said the U.S. administration wants an active international fight against terrorism and in such a struggle, he said they wanted to see Turkey near them, adding that Turkey's support was very important for them," Ildem said.

"For a while, they discussed this and there was will on both sides for the realization of further such talks. Bush thanked Sezer for the opportunity to have the discussion and expressed his hope to exchange ideas," Tacan ildem stated.

"Declaring sorrow for the fact that citizens from more than 80 countries, including Turkey, had lost their lives as a result of the terrorist attacks, Bush expressed his condolences to the Turkish president and to the Turkish people," Ildem said to reporters on the discussion between the leaders of Turkey and the United States.

Ildem stated that Sezer had reaffirmed full support for the United States during the talk, adding that Sezer made emphasis on the active and regular coordination between Turkey and the United States. "Bush said they were not going for an approach based on religious discrimination, referring to the fact that Islam as a religion was for the good," he said.

Ecevit: Turkey can train Afghan opposition

Prime Minister Bulent Ecevit declared that Turkey would not send troops to Afghanistan, but could train the opposition groups in Afghanistan.

Speaking to Taha Akyol of CNN TURK, Ecevit said that there has not been a rift concerning the letter to be sent to Bush.

Ecevit said Turkey has been continuing with its intelligence activities in all parts of Afghanistan and can learn everything about this country.

Stating that an operation against Afghanistan can be a long one, Ecevit said that he was looking forward to see this operation.

"The United States is concretely showing its determination against terrorism. The speech made by President Bush at Congress removed the atmosphere of uncertainty," Ecevit said.

Ecevit expressed his wishes that the possibility of an operation against Iraq is decreasing.

Ecevit also said that military response to last week's attacks on the United States should be short-lived so world attention could shift to a looming global recession.

"The international fight against terrorism has to succeed without too much extension of the period," Ecevit told CNN Turk television, drawing attention to Turkey's need for global growth to help it out of its worst recession since 1945.

"It is necessary to enter a recovery period. Of course the weight here falls on America because it is a state with a strong economy that can influence the world," he said.

"I hope with American leadership the world economy can start developing. We have a particularly great need for that."

Financial markets around the world have slid since the Sept. 11 attacks as investors fear a drawn-out conflict could exacerbate an already shaky global economic outlook.

Foreign Minister plans to visit United States

Ankara prepares to demand the extradition of PKK, DHKP/C and
Islamic militants from European states

SAADET ORUC

As the Turkish policy makers are being accused of staying out of the global process which was launched after the attack against the United States, the Turkish Foreign Ministry is preparing an intensive week of action.

Foreign Minister Ismail Cem is planning to visit the United States in the coming week, Turkish sources told the Turkish Daily News on Friday.

Cem was scheduled to take part in the U.N. summit, which was postponed due to security concerns in the aftermath of the Sept. 11 attacks against the United States.

But the planned visit is not being organized within the framework of the U.N. meetings, officials said.

Ankara to demand the handover of terrorist factions based in Europe

In the new political circumstances, which prepared a new ground for the fight against terrorism, Ankara is preparing to demand the handover of terrorist factions based in European countries.

A leading figure of the Kurdistan Workers' Party (PKK) Riza Altun, based in France, the supporters of Cemalettin Kaplan and other fundamentalist militants living in Germany as well as members of the Revolutionary People's Liberation Party/Front (DHKP/C), who are reportedly present in the Netherlands and Belgium, will be demanded to be handed over to Turkey, senior Turkish officials said.

"Of course, there is a possibility that we can be told that these names do not harm the public order in these countries. Then we will need to think twice about the sincerity of these states on the fight against terrorism," Turkish officials said.

During a speech made by Prime Minister Bulent Ecevit during the Commemoration Meeting at the U.S. Embassy in Ankara, he made reference to the lack of tolerance of the European allies of Turkey in its fight against terrorism.

"The United States has always supported us in our fight against terrorism. But we have not seen similar tolerance from our European allies," Ecevit said.

European officials in Ankara did not refrain from expressing frustration about the prime minister's words.

Ankara - Turkish Daily News

Challenging Israel, US M-60 tank to make debut in Turkey

U.S. General Dynamics Land Systems is prepared to unveil its 120S main battle tank prototype later next week in a last minute effort to beat Israel in Turkey's M-60 A1 tank modernization project. In fact all the M-60s in Turkey's inventory are General Dynamics-made tanks, which Turkey had been negotiating with Israel for on the modernization of an initial 170 M-60 A1 tanks.

The 120S prototype will become one of the attractions of the International Defence and Exhibition Fair (IDEF) 2001 to be held in Ankara between Sept. 27 and 30.

Having almost 7,000 M-60 tanks all over the world, General Dynamics hopes to grab the attention of the other countries' delegations visiting the fair later next week. Douglas Starr, Turkey Director of General Dynamics, said, "We made the M-60s [In Turkey's inventory] so we are qualified to modernize the Turkish M-60s."

Turkey's selection of Israeli Military Industries (IMI) as a sole source last year in June has prompted companies, including General Dynamics and FNSS systems, to ask the military to give them a chance to compete in the project. But those efforts have not so far been taken into consideration by the Turkish military.

General Dynamics, on its part, completed the prototype in an attempt to prove to the Turkish Armed Forces (TSK) that it could modernize the Turkish tanks earlier, at a less expensive price and with more efficiency.

Amid Turkey's severe economic crisis, Israel, having the luxury of winning the project with no competition at all, now seeks about $1 billion in return for modernizing only 170 General Dynamics-made Turkish M-60 A1 tanks. General Dynamics said that their product will cost Turkey almost $3.5 million per tank, almost half of what the Israelis are offering.

With the aim of having their product being evaluated by the Turkish military, General Dynamics has given a briefing this week to officers.

Company officials said the 120S, an upgrade of the M-60 tank, is a unique product that integrates the M1A1 120 mm turret, equipped with a 240X4 FLIR, onto a fully modernized M-60 chassis.

The turret is protected with the latest armour that was successfully demonstrated to the Turkish Main Battle Tank committee, said the General Dynamics officials, speaking to the Turkish Daily News.

Turkey's plans to co-produce a third generation main battle tank has further delayed prompting the military from giving priority to the tank modernization in its inventory, most of which are either obsolete or due to become obsolete.

General Dynamics has also been competing in Turkey's tank project, the fat of which is now unclear due to the financial crisis.

General Dynamics, seeking their product to be evaluated, sent a letter almost two weeks ago to the Turkish Chief of Staff General Huseyin Kivrikoglu.

Starr said that General Dynamics was ready to transfer a satisfactory amount of technology to Turkey, even a greater degree of technology than what it has offered for the main battle tanks.

"It is in Turkey's best interest to evaluate all of the vehicle solutions in order to make the best decision for the country. Our solution is efficient and elegant," Starr said.

The company shipped the 120S prototype tank, built at its Detroit facility, in early August and it reached Izmir before being taken by truck to Ankara, awaiting now the IDEF visitors.

Ankara - Turkish Daily News

Black Sea Trade and Development Bank encourages Black Sea prosperity

Ertan Keskinsoy

There is a regularly recognized assertion in Turkey that for small and medium enterprises (SMEs) to do business is getting considerably harder, especially given the current economic situation, and the burden of economies of scale.

Even without taking the crisis into consideration, one has to acknowledge that the disadvantages of an SME entity is evident: First of all, it is getting harder to survive among the monopolization tendency in most sectors, particularly after the introduction of the notion of free trade. While the greater companies may survive easily thanks to the economies of scale, SME's rarely stand a chance against the financial difficulties they face.

Secondly, the openness to international corporations and markets is a rare possibility for SMEs. An SME may not be able to carry the weighty cost of establishing international links, even if it could have been conceived as a long term investment.

So, what is to be done for SMEs, other than mere survival? The countries that are well aware of the importance of diversity in the market structure, and of the establishment of international economic relations must take some measures.

This emphasis on the SMEs are shared by the governments as well. The most promising indication is the Black Sea Economic Cooperation's (BSEC) Ministerial Meeting on SMEs, which is to be held on Sept. 26 and 27 in Istanbul.

The Permanent International Secretariat of the BSEC, the Konrad Adenauer Foundation and the U.N. Economic Commission for Europe, along with the Turkish Small and Medium Industry Development Organization (KOSGEB), have organized 17 seminars and workshops so far concerning the SMEs in BSEC countries. This Ministerial Meeting will stage the adoption of a "Declaration of Small and Medium Sized Enterprises at the Dawn of the 21st Century."

Initiated by Turkey, and founded in June 1992 with the status of an international regional economic organization, the aim of the BSEC is to develop the Black Sea region through economic cooperation into a zone of peace, stability and prosperity.

The Black Sea Trade and Development Bank (BSTDB) was established by the eleven Member States of this cooperation in 1998 as a regional multilateral development financial institution. The main purpose of the bank, whose headquarters are based in Thessaloniki, is promoting regional trade, finance and projects, and facilitating the efforts of member states to create stronger links among their economies.

The BSTDB should not only be seen as a mere outcome of international cooperation among the Black Sea countries, but also the joint effort of these countries to diversify their economy within the BSEC.

Turkey is among the three biggest shareholders with Greece and the Russian Federation with 16.5 per cent each. Bulgaria, Romania and Ukraine have a share of 13.5 per cent each; and Albania, Armenia, Azerbaijan, Georgia and Moldavia have shares of 2.0 per cent each.

The president of the BSTDB, and the chairman of the board of directors at the same time, is a senior Turkish bureaucrat and banker, Ersoy Volkan.

The Project Policy

The BSTDB is more than a merely satisfactory organization that just consolidates the cooperation among the parties. It is a "bank," which has a solid project policy, which is definitely necessary given the volatile economic situation in the region.

The criteria for the projects to be given credit are:

To be able to facilitate trade and investment activities among member countries.
To promote economic prosperity in member states and have a strong developmental impact.
To achieve economic development in the region.
To mobilize domestic and foreign capital.

The sectors that were worked on are primarily telecommunications, manufacturing, financial services, energy and natural resources, transportation and agribusiness. Eligible projects in these sectors may include the construction of new productive capacities or upgrading and modernization of existing facilities. An eligible project may also involve the restructuring of an enterprise or privatization, which is always an issue for ex-communist countries and Turkey.

These projects must be viable, which means they must be economically justified, financially viable, technically feasible and environmentally sound. Furthermore, cross-country infrastructure projects enjoy highest priority in the bank. Some other projects which are of high priority are:

Investments or joint ventures in one BSEC member country by one or more firms from another member.
Investments which receive funding from financial institutions of another BSEC member country.
Projects with linkages that provide benefits to the economy of more than one BSEC member.
Financially sound projects that promise to deliver high developmental impact, either through high returns, sustainable infrastructure development, or sustained employment growth.
Projects which bring indirect region-wide benefits such as introduction of new technologies.

Apart from the project finance program, there is also a trade finance program which has four basic objectives:

To increase intra-regional trade by assisting importers in the member countries to purchase goods from other BSEC members.
To improve the competitive position of exporters in the member countries by providing post-shipment financing to their clients.
To mitigate exporter's risk in transactions by providing reimbursement undertaking.
To strengthen financial institutions in the region by providing additional liquidity and reimbursement undertaking for their letters of credit.

With the variety of the objectives noted above, it is natural that the BSTDB's clientele is diverse, consisting primarily of private firms and financial intermediaries, but also including national governments, official agencies, nongovernmental organizations (NGOs), and even research institutions. Furthermore, the bank doesn't limit itself within the BSEC region, but works with strategic investors and financiers from outside the region who are committed to undertaking investments in the Black Sea area.

The BSTDB doesn't perform all these on its own. Co-financing is essential for such a wide range of activity. BSTDB cooperates with other financial institutions which also act as co-financiers in the operations. These institutions are the European Bank for Reconstruction and Development, and the International Finance Corporation. Approximately two thirds of co-financing resources are from international financing institutes. There are some other co-financing partners such as export credit agencies from various countries including Canada, Finland, Japan and the United States, and commercial banks as well.

It's a fact that BSEC members have very different economic profiles, which is apparently a factor that increases obstacles that the BSTDB has to challenge. However, President Volkan looks at it from a different perspective:

"The countries around the Black Sea have similar production attributes, yet different in comparison. This is evident especially in the export structures of manufacturing industries, which dominate the total exports of the region with a share of approximately one third."

Volkan draws attention to the establishment of cooperation in the production of goods and services where a comparative picture is possible, which will carry the Black Sea region up a level to be a challenger against the European Union, at least in medium term.

For the achievement of this target, says Volkan, the countries in the region must use their advantages, such as qualified labour and rich natural resources, in a rationalist way. Furthermore, they have to concentrate their industrialization policies on qualified labour intensive sectors.

Trans-Balkan gas pipeline project

Among the current projects the bank finances, the most challenging is undoubtedly the Trans-Balkan Gas Pipeline Project. This project represents the first phase of a program aimed at the expansion of the capacity of the Trans-Balkan gas pipeline system in order to meet the obligation of Russia-based Gazprom to increase the delivery of natural gas to Turkey. In order to take advantage of the unused capacity in the existing pipeline, which also crosses Ukraine, Moldova, Romania and Bulgaria, the construction of a compressor station on the existing line in Ukraine is planned in order to increase the transit capacity. The project has a total cost of $77 million. Turkey is also to benefit from this project as well as Russia, Ukraine, Romania, Bulgaria and Moldova to some extent.

SME challenge

More than some existence and mentioning in the bank reports need the SMEs. The bank apparently seeks for some solutions to actively reach and present effective opportunities to the SMEs in the BSEC countries. Therefore a Trans-Balkan SME Equity Fund was established with the proposal of the Small Enterprise Assistance Fund (SEAF) in conjunction with its Dutch sister organization Sitchting-SEAF. The fund's objective is to provide equity financing, in combination with active business assistance and trade linkages, to SMEs in Balkan states.

The fund gives priority to high growth potential sectors, including high technology. This equity investment is a $4 million project, which allows the SMEs to "breathe" to conduct business.

Turkey prospects

The BSTDB's sector priorities in Turkey focuses on less developed regions and on infrastructure projects. In their annual report for 2000, which was also the first operational year of the bank, it was stated that: "The Bank seeks co-financing partners to undertake medium-term, medium size, public infrastructure operations and regional development projects. In addition, the Bank is keen to provide support for private sector development, in particular locally owned and incorporated medium size businesses in the manufacture of goods with export potential, and SME's in the less developed parts of the country."

However, the BSTDB is succeeding more in partnering with Turkish firms investing in other member countries, where they are already quite active. The bank's first operation in Turkey involved the extension of a credit line for the purpose of earthquake relief and reconstruction support to effected small and medium sized enterprises.

In addition to all these economic challenges, one should consider the history of the region, which has always been full of long rivalries and conflicts. Therefore, the BSTDB inevitably has a political role. Volkan celebrates the recent Turkish-Greek encounters as an example of prospects of strong collaborations in the region:

"These developments catalyzed both our establishment phase, and the business relations that our bank is considered to be a party of. It is essential not to be satisfied with the current level of relations, and to develop relations not only in economic, but also in technical, political, social and cultural platforms. We have to consider the worldwide tendency of regionalization."

The BSTDB, in short, presents promising conditions for the SME's and the governments to establish an environment of collaboration, and to turn this into profit.

Who is Ersoy Volkan?

Volkan started his career as the credit officer of Citibank Istanbul Branch in 1980. He was appointed to the headquarters of the same bank in New York seven years later. He was the group president of the Europe, Middle East and Africa (EMEA) office of Citibank for four of the seven years he spent in New York. He started a new career in Turkish Eximbank as the general director in 1994. He led the efforts to establish credit programs for the Commonwealth of Independent States (CIS) and contributed to the membership of Turkish Eximbank to Berne Union. Then he coordinated the establishment of the Black Sea Trade and Development Bank. He has been chairman of the board of directors, and the president of the same bank since February 1997.

Ankara - Turkish Daily News

Greece sticks with defense doctrine

Greek Government spokesperson Dimitri Reppas stated that the Greek defense doctrine will remain the same, refusing the speculations of the Greek press that a new doctrine is to be adopted after the terrorist act in the United States.

In his press meeting, Reppas informed reporters on the Greek position determined in the Foreign Policy and Defense Council (KYSEA), which convened the day before under the presidency of Prime Minister Kostas Simitis. Reppas said the modernization of the Greek army was another key issue of the Council.

Reppas stated that the recent developments led to a new situation in regards to security and stability, and added: "Nevertheless, our defense doctrine did not change. Our policies on the inviolability of our borders, the peaceful resolution of conflicts, reactions against any possible Turkish fait accompli, the protection of regional peace and stability and solidarity with Cyprus remain the same."

Greece seeks common migration policy

Reppas noted the risk of a new immigrant inflow, and said they protect the Greek borders and try to prevent any illegal entrances. The Greek spokesman told reporters that Athens wished to establish good cooperation with Turkey, and followed:

"The coastal length of the whole of North Africa is 20,000 kilometers, whereas Greek's coastal length amounts to 18,000 kilometers. Given the situation, the importance of stopping the immigrant flow coming from the East is evident. We seek cooperation with Turkey in order to coordinate our efforts to get concrete results. As a matter of fact, the political officers of the Foreign Ministries are already exchanging ideas on this issue."

Reppas also mentioned the modernization program of the Greek army, and said they were continuing their contacts to buy medium-range transport planes, tanks and helicopters, and to modernize the systems of six frigates, two torpedo-boats and three submarines, and the renewal of the electronic system of C-130 transport planes.

Ankara - Turkish Daily News

Turkish-Mongolian relations foster

Turkey is including Mongolia in the trade zone it is attempting to embrace in Asia by assisting a Turkish-Mongolian Business Council to be established to foster relations between the two countries. The establishment document of the Council, which is under the structure of the Foreign Economic Relations Board (DEIK), was signed by the recent Council President Ali Riza Arslan and Secretary General Baldorj Tserendorj.

At the press meeting, State Minister Abdulhaluk Cay noted that the current economic and trade relations with Mongolia are insufficient and they are shadowed by historical and cultural links.

Cay said he was happy to find the opportunity to observe these historical and cultural links during his two visits to Mongolia, also mentioning the recently discovered treasure of Bilge Khan.

Cay also noted the stability of both parties to improve trade relations, however, there are only a limited number of Turkish companies doing business in Mongolia. The state minister said the current trade volume is no more than $2 million.

Cay noted the possible sectors of mutual trade as mining, cattle, agriculture, textiles, clothing, contraction services, construction and tourism. Cay also asserted that Mongolia offers important opportunities for Turkish entrepreneurs who want to have businesses in the Far-East.

However, Cay stressed that transport still remains a discouraging factor for reciprocal trade. In spite of this fact, which was also mentioned by Mongolian Ambassador to Ankara Bulgaa Altingerel, Cay said, small and medium enterprises possess a strategical importance in the improvement of relations. Cay gave emphasis particularly to the textile manufacturers who can benefit from the Gobi-Kashmir plants, and construction businessmen who can work in infrastructure building activities, which Mongolia needs most.

Cay also offered the introduction of a barter system for countries such as Mongolia, which is short of foreign currency.

Ankara - Turkish Daily News

Turkey's alliance appreciated

An article in the Washington Times published yesterday paid attention to the positive Turkish attitude towards capturing Osama bin Laden.

The author Andrew Borowiec noted that Turkey has taken initial steps to facilitate any effort to seize suspected terrorist bin Laden, who, according to news, left Afghanistan yesterday, after the Taliban's decision to ask him to leave the country. According to Borowiec, such a backup action would include transit facilities for troops that might be used in an anti-terrorist operation and the right to use Turkey's airspace.

The author related this support to Turkey's commitment to a secular form of government and its firm opposition to Islamic terrorism. Borowiec also quoted General Huseyin Kivrikoglu, chief of Turkey's General Staff, declaring, "The hour has come for a fight against political Islam."

Borowiec also noted the Turkish measures, stating that following a 13-page report on the situation by the council, Turkey beefed up security at foreign diplomatic missions, tightened border controls and ordered a state of alert at selected military bases.

The author assessed that Turkey's apparent willingness to help in the U.S. anti-terrorist campaign underscores its commitment to NATO and its determination to stem political Islam at home, and paid attention to the release of an estimated 3,000 army officers for "voicing Islamic views." Borowiec followed:

"If Turkey plays a significant role in the anti-terrorist war, its international prestige will be considerably enhanced. A candidate for membership in the European Union, Turkey is frequently criticized in Europe for its human rights record and military presence in Northern Cyprus."

The author also noted Turkey's key alliance to America during the Gulf crisis in 1990-91 and the claims that observance of the sanctions against Iraq has cost it $35 billion.

Ankara - Turkish Daily News

Sezer calls Armenia to reason

President Ahmet Necdet Sezer expresses Turkey's will for peace and stability in the Caucasus, calling Armenia to leave their prejudices and obsessions from the past.

Joining a seminar organized by Historical Cities Union and Kafkas University in the Kars district, which is on the Armenian border, Sezer expressed his opinions and Turkey's position on the Caucasian region.

Sezer said that this strategic region will play an important role as it did in the past, because both have dynamic human forces and fertile soils, and the attributes of connecting Europe to Asia. Sezer added that Turkey wishes the Caucasus, where various religions and communities had lived together and founded mighty civilizations, to turn into a region where they can enjoy their freedom, raise their living standards and express solidarity with each other. Sezer followed:

"We also favour Caucasus transformation into a gathering of countries with an economic unity, with an advanced network of motor ways and railways, with the mutual benefit of the energy lines between the Caspian base and Europe."

"In this context, it is pleasing for us to observe that our neighboring Southern Caucus countries rapidly adapt to the Western economic institutions and rules, and perform close cooperation with European institutions."

"It's a fact that the safeguard of peace and stability in the Caucasus will also help our northeastern districts economically flourish. The consolidation of the cooperation as soon as the situation turns to normal in the region will help these countries come together."

Sezer, however, reserved the protection of the sovereignty and territorial integrity of Georgia and Azerbaijan in the solution efforts, and claimed that no solution ignoring this basis would be realistic.

'Armenia must leave the invaded territory'

President Ahmet Necdet Sezer stated that it is beneficial for the Armenian people in case Armenia leaves Azerbaijan territory, which they invaded in breach of international legal provisions, and follows a constructive policy for the solution of the Nagorno Karabakh problem. Sezer claimed, "Turkey expects Armenia to get rid of their prejudices and obsessions from the past, and to develop better and long-term relations with her neighbors."

Sezer said Turkey strives to form a civilization identity, in which tolerance, peace and solidarity are key factors.

Ankara - Turkish Daily News

Turkey keeps the moderate line, says Cem

Despite various criticisms that the government should have followed a more active policy in the anti-terrorist global coalition that emerged after the terrorist attack, Foreign Minister Ismail Cem states Turkey will not abandon her stable, however moderate line.

Ismail Cem met his Israeli counterpart Simon Perez in Tel Aviv, where the agenda is both the fragile truce in the region, and the global anti-terror policy. In the joint press meeting made by both ministers, Cem repeated Turkey's position that they are against the definition of terror in the context of a religion or nation. Cem said: "There is no Islamic, Christian or Jewish terror. There is no geography for terror, too." Simon Perez agreed with Cem, stating that Israeli's enemy is terror, not Islam.

'No more, no less'

Answering a question on how Turkey plans to contribute to the anti-terror coalition, Cem said, "Our contribution will be no more and no less than the contribution of other NATO member countries."

Cem said: "however, the greatest mistake would be to give a biased impression to the United States. We need to be discreet, and claim less, not more than what we can do for our part."

Cem added that fighting against terror on the front line for a long time, Turkey will keep her position even if no other Muslim country joins in this global coalition.

Cem called the world media to use a more careful language, to avoid from relating terrorism with any religion.

Turkey a signals regional leadership

Foreign Minister Cem told reporters that efforts for a truce in the region is essential for the whole world, and Turkey is ready to contribute. Cem also noted that a truce is likely to serve the effectiveness of the coalition against terror, and appreciated the peace efforts of Perez.

Perez told the reporters that Turkey gives the signals of a new regional leadership, because of her distinguishing democratic and secular attribute in the Islam world.

Ankara - Turkish Daily News

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