Anadolu Agency: News in English, 98-06-08

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

08 JUNE 1998

CONTENTS

[01] STATE MINISTER SAHIN IN BAKU - AZERBAIJANI PRESIDENT ALIYEV: - ''OPENING OF OIL BEDS IN CASPIAN TO THE WORLD IS ONE OF THE IMPORTANT DEVELOPMENTS IN THE 20TH CENTURY''

[02] ENVIRONMENTAL PROTEST IN BOSPHORUS - AYKUT, THE MINISTER OF ENVIRONMENT: ''WE WILL RESIST THE TRANSFORMATION OF THE STRAITS INTO AN OIL ROUTE''

[03] DEMONSTRATION OF KESK - KESK MEMBER CIVIL SERVANTS HOLD DEMONSTRATION AT SIHHIYE SQUARE IN ANKARA TO PROTEST 20 PERCENT SALARY INCREASE

[04] PRESIDENT DEMIREL: ''THERE ARE PROBLEMS SURROUNDING TURKEY AND TURKEY ISN'T AT FAULT IN MANY OF THEM''(1)

[05] TURKEY-PRESS REVIEW (1)

[06] TURKEY-PRESS REVIEW (2)

[07] TURKEY-PRESS REVIEW (3)

[08] PRIME MINISTER YILMAZ ATTENDS THE LAUNCHING CEREMONY FOR THE SEVKET YARDIMCI SHIP

[09] PRESIDENT DEMIREL: ''THE EVENTS IN THE FRENCH PARLIAMENT AND IN OTHER PARLIAMENTS MEAN HOLDING TURKEY RESPONSIBLE FOR EVENTS WHICH HAPPENED 80-90 YEARS AGO''(2)

[10] TURKEY IN BRIEF - JUNE 8, 1998

[11] PRESIDENT DEMIREL: ''I CAN'T BE ENGAGED IN ANY WAY IN A GOVERNMENT FORMULA'' (3)

[12] 37 TERRORISTS KILLED, TWO OTHERS CAPTURED IN SOUTHEAST - ONE SOLDIER DIES

[13] TREASURY TO SELL NINE-MONTH TERM BONDS ON TUESDAY

[14] TURKISH PEOPLE IN ETHIOPIA - TURKS LEAVE MEKELE FOR ADDIS ABABA

[15] FOREIGN MINISTERS' MEETING OF SOUTHEASTERN EUROPEAN COUNTRIES STARTS

[16] TURKEY-WORLD BANK - WORLD BANK STIPULATES SIGNING OF AN AGREEMENT FOR THREE BILLION US DOLLARS SECTORAL ACCORD LOAN INSTEAD OF VERBAL SUPPORT OF IMF

[17] FOREIGN MINISTERS' MEETING OF SOUTHEASTERN EUROPEAN COUNTRIES (2) - FOREIGN MINISTER CEM:''IT IS THE RIGHT TIME TO SOLVE THE EXISTING PROBLEMS AMONG US IN ORDER TO FORM A COMMON VISION''

[18] ULUCEVIK, THE AMBASSADOR TO GERMANY PRESENTS HIS LETTERS OF CREDENCE TO GERMAN PRESIDENT: ''I CAME HERE TO SERVE TURKISH-GERMAN FRIENDSHIP''

[19] 22 TERRORISTS INCLUDING THOSE WHO BOMBED A COMMUTER TRAIN AND CAFE ARE CAPTURED

[20] EFFECTS OF SOUTHEAST ASIAN CRISIS ON TURKEY

[21] OPERATIONS AGAINST DRUG SMUGGLING - NARCOTICS OFFICIALS SEIZE 201 KG OF HEROIN HAVING MARKET VALUE OF NEARLY 10 TRILLION LIRAS

[01] STATE MINISTER SAHIN IN BAKU - AZERBAIJANI PRESIDENT ALIYEV: - ''OPENING OF OIL BEDS IN CASPIAN TO THE WORLD IS ONE OF THE IMPORTANT DEVELOPMENTS IN THE 20TH CENTURY''

Aliyev received Refaiddin Sahin, the Minister of State, and Namik Kemal Zeybek, the Deputy from the True Path Party (DYP), who are in the Azerbaijani capital of Baku to attend a ceremony.

Aliyev said in the meeting that they gave the start for the studies and activities for the operation of the Caspian oil together with Turkey and that the cooperation between the two countries was continuing and would continue.

Pointing out that the problems concerning the production of oil were solved, Aliyev said that the major topic on the agenda was transferring that oil to the world markets, adding that they accepted the Baku-Ceyhan as the route for the main oil pipeline.

Aliyev stressed that the decision regarding the construction process of the route would be made by the end of the year.

[02] ENVIRONMENTAL PROTEST IN BOSPHORUS - AYKUT, THE MINISTER OF ENVIRONMENT: ''WE WILL RESIST THE TRANSFORMATION OF THE STRAITS INTO AN OIL ROUTE''

Aykut participated at the demonstration held at the Istanbul Straits by the non-governmental organizations (NGOs) the same day.

Addressing the crowd, Aykut stated, ''we will never permit the increase in oil transports via the Straits from 60 million tonnes to 150 million tonnes.''

Stressing that the oil transported through the Straits put people living in Istanbul into a dangerous situation, Aykut pointed out, ''we address the whole world: if Istanbul was theirs, would they let something like this happen?''

[03] DEMONSTRATION OF KESK - KESK MEMBER CIVIL SERVANTS HOLD DEMONSTRATION AT SIHHIYE SQUARE IN ANKARA TO PROTEST 20 PERCENT SALARY INCREASE

After gathering at the Ankara Railway Station, the KESK member civil servants marched to the Sihhiye Square, chanting the slogans, ''we want collective bargaining not charity'' and ''we want the draft law to be rewritten''.

Addressing the demonstration, Nazim Alkaya, a high-level official from the KESK, said that the political authority was trying to intimidate civil servants with its restraint and banishment policies, but civil servants relentlessly continued their contention.

''We can't accept this misery wage. We want the draft law to be withdrawn, because it can only be defined as ''illegal''. We will use our power stemming from the production of services throughout the country on June 11, if our demands aren't met,'' Alkaya added. After the demonstration at the Sihhiye Square, the civil servants dispersed peacefully.

Meanwhile, the KESK member civil servants held another demonstration at the Beyazit Square in Istanbul to protest a 20 percent salary increase foreseen for the second half of the year and to protest the union draft law. These demonstrators also dispersed peacefully.

[04] PRESIDENT DEMIREL: ''THERE ARE PROBLEMS SURROUNDING TURKEY AND TURKEY ISN'T AT FAULT IN MANY OF THEM''(1)

Addressing the state-run television channel TRT-1, President Demirel noted that Turkey and the Turkish Cypriots can't give up the rights which they have acquired in 25 years. ''What can the Greek Cypriot side do with the S- 300 missiles? Will they attempt to harm Turkey? It isn't possible to understand that. They are only spending money. The S-300 missiles are just a drop in the bucket. We'll do what is necessary,'' he added.

Stressing that Turkey sells goods to 130 countries, more than three million Turkish persons live abroad and there is nearly 50,000 Turkish businessmen, Demirel said that Turkey played a leading role for the establishment of the Black Sea Economic Cooperation (BSEC) among the 11 states and the Economic Cooperation Organization (ECO) among Iran, Pakistan and the Central Asian countries.

Pointing out that Turkey tries to join the EU, Demirel stated, ''Turkey is a country which is uniting various cultures and economies and Europe has to benefit from us.''

Mentioning the Cyprus question, President Demirel said that there are two peoples on Cyprus and they don't share anything in common other than living on the same island.

''No political solution has been found to this problem for 24 years, however the world started to consider the Greek Cypriot side as the State of Cyprus. The Turkish people living on the island started to live in a closed camp without having any connection with the outside world. Turkey is a guarantor state, not an occupier country. A federation based on a bizonal and bi-communal principle should be established there, but this isn't possible as long as Europe and the world recognizes Southern Cyprus as the whole of Cyprus. Equality should be set up there,'' said Demirel.

Noting that there is a de facto situation on Cyprus and the EU shouldn't have started full membership negotiations with the Greek Cypriot side by ignoring the de facto situation on Cyprus, President Demirel said, ''Turkey will protect the rights and security of the Turkish Cypriots on the island. Turkey has the right to do so.''

[05] TURKEY-PRESS REVIEW (1)

(Derived from the Newsspot of the Turkish General Directorate of Press and Information.)

IMF SAYS TURKISH ECONOMIC PROGRESS IS ENCOURAGING
Stanley Fischer, the First Vice President of the International Monetary Fund (IMF), referred on Sunday to developments in the Turkish economy as encouraging, and said he hoped that the downward trend in inflation would continue into 1999. Before his departure from Turkey, Fischer made statements about his meetings with Prime Minister Mesut Yilmaz, Gunes Taner, the Minister of State, the top- level bureaucrats and representatives from the private sector in Istanbul. Pointing out that he had read prior to his visit the draft report evaluating Turkey, which Martin Hardy, the chief of the IMF Turkey desk, had prepared, Fischer said that during his meetings in Istanbul he had seen that the economic programme being followed in Turkey was encouraging.

Meanwhile, Gunes Taner said that Turkey had displayed a performance which was beyond the expectations of the IMF delegation. Taner said with such developments in the economy, expectations regarding the downward trend of inflation in 1998 had become stronger. In a press conference at the Ataturk Airport following Fischer's departure from Turkey, Taner said that the IMF delegation had found the opportunity to talk about economic and political stability in Turkey with organizations other than the government. He noted that a standby agreement with the IMF wasn't on the agenda. /All papers/

NEW LEVERAGE APPEARS IN TURCO-GERMAN RELATIONS
The German-Turk Foundation (DTS), which recently opened in Hamburg, will attempt to ease the recently tense relations and develop ties between Turkey and Germany. The DTS is one of the most powerful Turkish foundations established outside of Turkey and has such prominent members from the large Turco-German community as the owner of Oger Tours, Vural Oger, and the publisher of the leading German daily Die Zeit, Dr. Theo Sommer. In a meeting last week, Sommer said, ''The DTS will lobby intensely for Turkey's accession into the European Union (EU)''. The DTS will open a branch in Istanbul within two months. /All papers/

89TH LABOUR CONFERENCE
Nami Cagan, the Minister of Labour and Social Security, Refik Baydur, the Chairman of the Turkish Confederation of Employers' Unions (TISK) and Bayram Meral, the Chairman of the Confederation of Revolutionary Workers' Unions (DISK) are to address the International Labour Organization's (ILO) 89th Labour Conference. The conference will take up the child labour problem and will discuss the creation of more jobs for small and medium- scale enterprises. /All papers/

ERSUMER VISITS CANADA AND US
Cumhur Ersumer, the Minister of Energy and Natural Resources, started yesterday a key official trip covering the US and Canada. Ersumer left Ankara for New York, where he plans to address a conference entitled the ''Financing of the Eurasia Energy Projects in the 21st Century'' to be held at the East-West Institute. Ersumer said he would discuss ways of financing energy transportation projects in the east/west corridor. Ersumer will proceed to Canada after the conference in New York upon the invitation of his Canadian counterpart. Ersumer and the energy delegation will return to Turkey on Sunday. /All papers/

BASESGIOGLU TO ATTEND UN MEETING
Murat Basesgioglu, the Minister of the Interior, will attend a UN meeting, on the ''Fight Against Drugs in the US''. Before leaving Ankara yesterday, Basesgioglu said that the preliminary work for the meeting to be held between June 8-10 was completed during an earlier meeting in Vienna. ''Turkey is helping in the struggle against drugs, whether it be within her borders or connected to other countries'' he said. He also noted that he would emphasize the link between drug trafficking and international terrorism. /All papers/

[06] TURKEY-PRESS REVIEW (2)

(Derived from the Newsspot of the Turkish General Directorate of Press and Information.)

HEROIN WORTH 10 TRILLION TL SEIZED
During operations carried out in Istanbul, 201 kg of heroin has been seized. Information regarding the operations was given to Murat Basesgioglu, the Minister of the Interior, before he went to New York to attend a meeting for the struggle against drugs. An official noted that 14 people have been taken into custody and said, ''The market value of the heroin totalled 10 trillion TL. Operations are continuing.'' /Hurriyet/

PRODUCTION INCREASES IN MANUFACTURING INDUSTRY
According to the National Productivity Centre, there was an 18.2 percent increase in the manufacturing industry between 1992 and 1996. On the other hand, there was a 31 percent decrease in wages.

Meanwhile, according to the data of the Undersecretariat of the Treasury, the foreign capital permitted in Turkey since 1980 totals 22.9 billion US dollars, while the actual foreign capital entries amount to 10.7 billion US dollars. /Hurriyet/

WORLD BANK SUPPORT FOR FLOOD DISASTER
Experts from the World Bank will visit Turkey this week to hold meetings regarding the credit to be extended to Turkey for the reconstruction of the area which was destroyed following a flood disaster in the Western Black Sea region. The credit is expected to amount to 100 million US dollars. /Hurriyet/

PKK BOMB TEAM SEIZED IN ISTANBUL
Murat Basesgioglu, the Minister of the Interior, said yesterday before his departure to New York that a 21-member PKK team had been seized in Istanbul. He also revealed that the team had bombed a train in Istanbul the week before, which resulted in the death of a passenger. Basesgioglu noted that Hasan Ozdemir, the Chief of the Istanbul Police Department, would hold a press conference today evaluating the operation.

Meanwhile, a village guard was killed by an unknown person yesterday in Silvan, near Diyarbakir, which is used as a base by the Hezbollah terrorist organization. /Sabah/

SEA WOLF '98 MILITARY EXERCISE
The Sea Wolf '98 military exercise has been successfully completed in the international waters of the Aegean. Military observers from Bangladesh and Pakistan also watched the exercises. /Cumhuriyet/

JORDAN TO USE TURKISH AIR SPACE
Turkey, which is on the way to becoming one of the most important countries in the Middle East, has decided to open its air space to Jordan for training purposes. During General Ilhan Kilic's visit to Jordan last week, it was decided that Turkish and Jordanian pilots would mutually use their country's air space for training purposes. During the visit it was also decided that Turkey would give simulated flight training to Jordanian pilots in Turkey. Turkey will also hire-out two Spanish-made Casa transport planes to Jordan. According to diplomatic sources, these recent developments in military cooperation between two Muslim countries, Jordan and Turkey, will be a greater deterrent in the Middle East than the Turkish- Israeli military cooperation. /Cumhuriyet/

[07] TURKEY-PRESS REVIEW (3)

(Derived from the Newsspot of the Turkish General Directorate of Press and Information.)

SOUTHEAST EUROPEAN BUSINESSMEN'S CONFERENCE
Heads of governments and businessmen from eight southeastern European countries will meet today in Istanbul. The conference is being held by the Foreign Economic Relations Consul in parallel with a Southeastern Foreign Ministers' Meeting. Government representatives, chairmen of chambers of industry and trade and businessmen from Turkey, Albania, Bulgaria, Bosnia- Herzegovina, Croatia, Greece, Macedonia and Romania will attend the two-day meeting. /Cumhuriyet/

NEW SHAPE IN EU-TURKEY RELATIONS
It has been pointed out that Austria, which will take over the European Union (EU) term presidency in the second half of the year, will give new shape to the EU-Turkey relations. Andreas Khol, the Chairman of the Austrian People's Party, said in a conference on the ''European Union '98: Problems Awaiting the Austrian Term Presidency'', that Turkey-EU relations should be improved and the requirements of the Customs Union agreement between Turkey and the EU should be meet. /Cumhuriyet/

BOSPHORUS PROTEST
Thousands of people joined yesterday in a demonstration aiming to protest the lack of concern over the dangerous situation in the Turkish Straits. The demonstration was organized jointly by nearly 100 associations which want international organizations to give more attention to the Turkish Straits, namely the Bosphorus and Dardanelles, which are seriously threatened by ships carrying oil or other explosive substances. /Milliyet/

DEMIREL COMMENTS ON EARLY ELECTION AGREEMENTS
Commenting on the agreement reached by Prime Minister Mesut Yilmaz and Deniz Baykal, the Chairman of the Republican People's Party that foresees an early election to be held in April 1999, President Suleyman Demirel warned parliamentarians by saying that an election under the present election system would bring no good to the country and that necessary changes must be made in the system prior to another election. /All papers/

MISSILES TO ARRIVE ON CYPRUS IN AUGUST
The Russian Defence Ministry will deliver the S-300 missiles to the Greek Cypriots in August, the Greek ''To Vima'' newspaper reports. The report states that the announcement of the delivery by Russia has worried the Greek Cypriot officials because it will further intensify the tension on the island. /Cumhuriyet/

GERMAN TOURISTS IN TURKEY
The official State Institute of Statistics figures show that one out of every four tourists who chooses Turkey for a vacation is German. According to the same statistics, most of the tourists visiting Turkey between January and April were Germans (155,639 or about 24 percent of the total) followed by the French (44,218 or 6 percent) and the Russians (43,638 or 6 percent). /Hurriyet/

INTERNATIONAL FESTIVALS IN IZMIR AND ISTANBUL
The 12th International Izmir Festival organized by the Izmir Foundation of Culture, Art and Education will begin on June 14, while the 26th International Istanbul Music Festival will start today. /Hurriyet/

[08] PRIME MINISTER YILMAZ ATTENDS THE LAUNCHING CEREMONY FOR THE SEVKET YARDIMCI SHIP

Prime Minister Yilmaz attended a launching ceremony held for the Yardimci Companies' Group's Sevket Yardimci Ship at the Tuzla Shipyard in Istanbul.

Addressing the ceremony, Prime Minister Yilmaz said that he often paid visits to the Tuzla Shipyard and that the aim of these visits was to emphasize the vital importance they were attaching to the maritime sector.

Stressing that Turkey had failed to take serious and concrete steps until the 1980s, although Mustafa Kemal Ataturk, the founder of the modern Republic of Turkey, attached great importance to the maritime sector, Prime Minister Yilmaz said that the Turkish maritime fleet has grown fivefold between 1980 and 1988.

''Our aim is to reach the same tempo of improvement and to make the maritime sector become the engine of economic development,'' he added.

Later, Prime Minister Mesut Yilmaz launched the 9500 DW tonnes container ship which is 129 meters in length. Meanwhile, the Savi Nur Yardimci Ship was put on the slipway.

Gunes Taner, Burhan Kara, Eyup Asik, Cavit Kavak and Ahat Andican, the Miniters of State and Cengiz Kaptanoglu, the Chairman of the Maritime Chamber of Commerce, also participated in the ceremony.

[09] PRESIDENT DEMIREL: ''THE EVENTS IN THE FRENCH PARLIAMENT AND IN OTHER PARLIAMENTS MEAN HOLDING TURKEY RESPONSIBLE FOR EVENTS WHICH HAPPENED 80-90 YEARS AGO''(2)

Responding to questions about the Armenian issue at the state-run TV channel TRT-1, President Suleyman Demirel said, ''Turkey will do what is necessary about any injustice committed against her.''

Noting that Armenia put Azerbaijan into a difficult position due to the Nagorno Karabakh conflict, President Demirel said, ''Turkey's borders with Armenia are closed. Turkey always tells Armenia that she should withdraw from the territories she occupied, so that the Azerbaijani citizens can return to their towns.''

''When efforts were underway to solve the Nagorno Karabakh, the administration in Armenia changed and it doesn't seem to favour peace. I met the Armenian President and told him that as long as Armenia urges the Azerbaijani people to leave their homes, the Turkish people will oppose the opening of borders between Turkey and Armenia,'' said Demirel.

''I also told him that they should be at peace with Turkey and should not create hostility. This is to their interest, because Turkey is a big state. Armenian terrorists killed 33 Turkish diplomats, that was a dreadful thing. The draft law adopted by the French Parliament means holding Turkey liable for the events which happened in the past. I wrote a letter to Chirac. I hope that the French Senate won't approve the draft law. Every year on April 24, parliaments in many countries adopt decisions. When we ask, they say that this isn't to offend you, this isn't related with today's Turkey, but with the Ottomans, but this is a very serious matter.''

[10] TURKEY IN BRIEF - JUNE 8, 1998

Sahabettin Harput, the Mayor of Sanliurfa, told the A.A correspondent, ''there are three hotels in the city-center and one of these hotels is a four-star and the others are three-star. These hotels are being operated under the control of the Ministry of Tourism. This year, a five-star hotel will be constructed in our province.''

ISTANBUL - The opening ceremony of the 26th Istanbul Music Festival, which was organized by the Istanbul Foundation of Culture and Art, will be held on Monday.

The Europa Galante Orchestra will perform a mini-concert following the ceremony at the Church of St. Irene.

IZMIR - Ray Charles, the famous jazz singer, gave a concert on Sunday at the Kulturpark Ataturk Openair Theatre in Izmir.

Thousands of jazz-music lovers listened to the splendid songs of Ray Charles for nearly two hours on the last night of the Second Parliament Superband Jazz Festival-98 in Izmir.

[11] PRESIDENT DEMIREL: ''I CAN'T BE ENGAGED IN ANY WAY IN A GOVERNMENT FORMULA'' (3)

Addressing the TRT-1, the state-run television channel, President Demirel said ''I cannot be engaged in any way in a government formula,'' adding that he will think what to do when the government resigns.

[12] 37 TERRORISTS KILLED, TWO OTHERS CAPTURED IN SOUTHEAST - ONE SOLDIER DIES

The Emergency Rule Governor's Office said that during the operations launched by security forces to render ineffective the separatist terrorists, the security forces killed 23 terrorists in the Kelmehmet mountain region in Sirnak and 13 terrorists in the Dagdosulev region in Eruh county of Siirt and one terrorist in the rural area of Kulp county of Diyarbakir.

Meanwhile, security forces captured a terrorist during an operation in Sirnak, while another separatist terrorist, who escaped from the terrorist PKK organization, surrendered to security forces in Siirt.

One soldier died during the operations.

The operations are underway in the region.

[13] TREASURY TO SELL NINE-MONTH TERM BONDS ON TUESDAY

The export-date for the bonds is June 10, 1998 while the repayment will be deposited on March 10, 1999.

The interest rate for the previous nine-month term bond tender, which was arranged by the Treasury on May 18, 1998, was 91.15 percent while the bond sales reached 750 trillion 296.4 billion Turkish Liras (TL).

Meanwhile, the Treasury will repay a total of 23 trillion 700.4 billion TL in domestic borrowing on Tuesday. This amount is composed of 22 trillion 686.6 billion TL in principal and 1 trillion 13.8 billion TL in interest.

Besides, the Treasury will also realize 280 trillion 14.1 billion TL in repayments on June 10.

This payment is composed of 137 trillion 94.9 billion TL in principal and 142 trillion 919.2 billion TL in interest.

[14] TURKISH PEOPLE IN ETHIOPIA - TURKS LEAVE MEKELE FOR ADDIS ABABA

Responding to the questions of the A.A correspondent on the phone, Murat Ilhan, the Turkish Ambassador to Turkey said that Turkish citizens don't have any problems and they are expected to reach the capital, which is a secure place and they will be accompanied by the Ethiopian soldiers on the trip, which is 800 kilometers.

Noting that the ENKA firm didn't ask for any assistance as they have enough food, water and fuel oil, Ilhan stated, ''the Turks are on the way to Addis Abada in security. We expect them today. We'll locate them at the places which have been allocated for them. They will stay in Addis Ababa for a period until they can return to Turkey.''

''The ENKA will send our citizens to Turkey either by Turkish Airlines or Ethiopian Airlines as soon as possible,'' said Ilhan, adding that Ethiopia and Eritrea don't have any attack missiles.

''There is no need to worry, Addis Ababa is completely outside of the range, '' said Ilhan, adding that a few Turkish people out of 160 stayed voluntarily in the region for the security of the worksite.

The Turkish Ambassador said that the Ethiopian security forces also protect the worksite, adding that he can't confirm the news saying that Libya has persuaded both sides for peace, because he isn't informed about it.

[15] FOREIGN MINISTERS' MEETING OF SOUTHEASTERN EUROPEAN COUNTRIES STARTS

The most important issue to be taken up during the conference is the improvement of the Southeastern European cooperation process, adding that the establishment of regional peace is among the issues that will be discussed during the meeting.

The meeting, which is hosted by Turkey and which brought seven foreign ministers of the country together, started with the opening speech of Ismail Cem, the Foreign Minister.

Giving information to the press about the meeting held in Istanbul, Necati Utkan, the Foreign Ministry Spokesman said that several new projects which were jointly prepared by the regional countries have been presented to the Foreign Ministers for consideration. Utkan added that a formulation, namely ''the Balkan Countries Business Forum'' will convene on Tuesday in order to speed up the economic relations between the regional countries.

The Foreign Ministers from Turkey, Bulgaria, Albania, Greece, the Federal Republic of Yugoslavia, Romania and Macedonia are participating in the meeting, while Bosnia Herzegovina and Croatia are attending the meeting as observors. Observors from regional cooperation initiatives and international institutions are also participating at the meeting.

Approximately 200 journalists came to Istanbul to attend the meeting.

[16] TURKEY-WORLD BANK - WORLD BANK STIPULATES SIGNING OF AN AGREEMENT FOR THREE BILLION US DOLLARS SECTORAL ACCORD LOAN INSTEAD OF VERBAL SUPPORT OF IMF

The World Bank sources told the A.A correspondent that full-support of the IMF was being asked for the Concordance Loans having suitable conditions, while the support of the IMF wasn't requested for the project loans within the framework of the Country Assistance Strategy (CAS).

From this perspective, no conditions were sought for a 1.5 billion US dollars loan, which was undertaken to be given to Turkey within the framework of the CAS, except the condition of an effective implemention appropriate to the targets of the projects.

Within this framework, Turkey has been entitled to a 610 million US dollars (nearly 157 trillion TL) portion of the 1.5 billion US dollars loan before the end of 1998.

Officials said that there had been a depression in financial sources, especially after the Asian financial crisis and also the developing countries failed to implement the economic programmes they undertook and thus the World Bank started to seek more restrictive conditions when allocating its financial sources and that the full-support of the IMF was the most important condition.

Officials stressed that the verbal support of the IMF would be insufficient and that an agreement, which included Stand-by or EFF arrangements, should be signed for the World Bank's opening a three billion US dollars Sectoral Accord Loan for Turkey.

[17] FOREIGN MINISTERS' MEETING OF SOUTHEASTERN EUROPEAN COUNTRIES (2) - FOREIGN MINISTER CEM:''IT IS THE RIGHT TIME TO SOLVE THE EXISTING PROBLEMS AMONG US IN ORDER TO FORM A COMMON VISION''

In his opening speech at the Foreign Ministers' Meeting of the Southeastern European Countries, Cem stated, ''it is the time of change and hope. Democracy, freedom and development are the common values which we share.''

Recalling that important developments have recently been observed in Southeastern Europe, Cem stressed that all the countries should take lessons from the events that occurred in Bosnia Herzegovina.

''All kinds of violence, use of force and terrorist activities should stop immediately in Kosovo,'' said Cem, adding that the Turkish government favours finding a permanent and effective solution in Kosovo as soon as possible.

Cem stressed that the process of the Southeastern European Cooperation is an inseparable part of the European integration and the former is necessary for the stability in Europe.

Emphasing the importance of regular meetings between the regional countries, Cem said that these kinds of meetings can also be held between ministers of the interior, transportation and economy.

''We represent countries and people who share history, I believe that we'll also share a common future,'' added Cem, stressing that all kinds of impediments among regional countries should have to be lifted.

[18] ULUCEVIK, THE AMBASSADOR TO GERMANY PRESENTS HIS LETTERS OF CREDENCE TO GERMAN PRESIDENT: ''I CAME HERE TO SERVE TURKISH-GERMAN FRIENDSHIP''

Addressing a statement to the Turkish journalists after the ceremony, Ulucevik said that Herzog praised the Turkish businessmen, artists and football players who live in Germany.

Ulucevik quoted the words of Herzog as ''we don't have the intention to assimilate the Turkish people living in Germany. We wish to embrace the Turkish citizens living here and to ease their integration into the German society. Their presence enlivens our life.''

Noting that he came to Germany to serve the historical friendship between the two countries, Ulucevik said, ''I believe that the difficulties experienced between the two countries are temporary.''

Ulucevik said that Nami Cagan, the Minister of Labour and Social Security, held official contacts in Germany last week and Ismail Cem, the Foreign Minister met with Klaus Kinkel, the German Foreign Minister in Luxembourg during the same period.

''These meetings helped to warm the atmosphere between the two countries,'' said Ulucevik.

Stressing that he aims to pay close attention to the problems of the Turkish citizens living in Germany, Ulucevik said, ''I have another important duty, which is to protect the rights of my state's rights and position in this country and help in the efforts to make Turkey be easily understood by Germany.''

[19] 22 TERRORISTS INCLUDING THOSE WHO BOMBED A COMMUTER TRAIN AND CAFE ARE CAPTURED

Anti-Terrorism Office in Istanbul said that 22 terrorists were captured during operations staged against the separatist terrorist PKK organization due to the bomb attacks on a post office and a branch of the Garanti Bank in the Bak�rkoy District on May 31 1998 and on June 1 1998, on a cafe in the Kucukcekmece District on June 3, 1998 and on a commuter train in the Yesilkoy District of Istanbul.

[20] EFFECTS OF SOUTHEAST ASIAN CRISIS ON TURKEY

The Undersecretariat of Foreign Trade (DTM) General Directorate of Economic Research and Evaluation issued an evaluation, stressing that the global growth can slow down due to the crisis, and that this event may lead to a decrease in Turkey's foreign trade volume and in Turkey's tourism revenues.

Pointing out that the devaluation in China may increase competition in the world, the evaluation listed the probable short and long-term effects of the crisis on the Turkish economy and foreign trade as follows:

''The countries experiencing the crisis devaluated their national currencies by 18-75 percent, while China's and Hong Kong's not applying a devaluation let the exporters in China to expect a devaluation. It shouldn't be forgotten that an obligatory devaluation in China would create an intense atmosphere of competition in Turkey. The huge economies like the US and Germany reduced their growth rate estimates for 1998. Also, there are some expectations that the world economy would increase less than the estimates. Thus, these issues will adversely influence the Turkish exports and economy.''

Noting that the devaluation of natioal currencies of the Southeast Asian countries would provide an important competitive advantage in foreign markets, the evaluation said, ''this situation will negatively affect our exports to third countries. Within this framework, the increase in the competitive power of the regional countries, which are our rivals in the textiles and ready-to-wear and electrics-electronics sector in the European Union (EU) and the US markets, will affect our exports negatively.''

''Our exports to regional countries in 1996 was 1.2 billion US dollars and 51 percent (nearly 590 million US dollars) of this total was composed of iron-steel products. The construction and contracting sector is the first industry that will be badly affected by the depression in the regional countries,'' it added.

The evaluation stressed that the imports from the regional countries would probably increase, due to devaluations in these countries, adding that there was an expectation that the imports from these countries of textiles and ready-to-wear products, motor vehicles, shoes, electronic household appliances, toys, ceramics and glass household items and consumption goods would increase.

[21] OPERATIONS AGAINST DRUG SMUGGLING - NARCOTICS OFFICIALS SEIZE 201 KG OF HEROIN HAVING MARKET VALUE OF NEARLY 10 TRILLION LIRAS

Hasan Ozdemir, the Director of the Istanbul Security Directorate, said that acting on a tip-off, the narcotics officials found out that the drugs, which were brought to Istanbul from the countries surrounding Turkey from the border in the southeastern region, would have been transferred to the Netherlands, Britain, Germany and Hungary via Turkey.

The narcotics officials launched on June 3 a series of operations in Selimpasa, Halkali, Sirinevler, Avcilar and Gaziosmanpasa Counties of Istanbul Province and seized a total of 201 kg of heroin in hidden compartments of two different buses.

Officials took into custody the organizers of the drug trafficking, Mustafa Baykar, Behcet Tore, Rasim Uskuplu, Serif Mehmetovic, Fariz Korkmaz, Zafer Guncan, Sazi Akici, Raif Canan, Alaattin Canan, Bekir Altundal, Erdem Yaldiz, Veli Dogan Nagos and Hasan Akin, and seized two buses and eight automobiles to be used for the transports of the drugs.

Ozdemir said that narcotics officials seized a total of 3.5 tonnes of drugs in their operations in the last ten months in Istanbul.

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