Anadolu Agency: News in English, 01-07-26

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ANADOLU AGENCY

NEWS

26 JULY 2001 Thursday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] EXPORTS OF TEXTILES AND PRODUCTS FROM GAP REGION RISE 8.1 PERCENT IN FIRST HALF OF 2001

[03] IRANIAN NATURAL GAS PROJECT -BOTAS SENDS DELEGATION TO IRAN TO OBSERVE WHETHER MEASURING STATION SET UP BY IRAN ON BORDER IS IN LINE WITH AGREEMENT CONDITIONS

[04] FOREIGN TRADE STATISTICS (1) -TURKEY'S EXPORTS INCREASES 10.3 PERCENT WHILE ITS IMPORTS REDUCES 16.5 PERCENT IN JANUARY-MAY PERIOD 2001

[05] LIANG, CHINESE EMBASSY UNDERSECRETARY: ''TRADE VOLUME BETWEEN THE TWO COUNTRIES IS REALIZED AS 389 MILLION U.S. DOLLARS IN JANUARY-MAY PERIOD''

[06] FOREIGN TRADE STATISTICS (2)

[07] EXTERNAL DEBT PAYMENTS -366.72 MILLION U.S. DOLLARS REPAID IN EXTERNAL DEBT BETWEEN JULY 1 AND 25

[08] FOREIGN EXCHANGE RESERVES OF CENTRAL BANK INCREASE BY 1.8 BILLION U.S. DOLLARS

[09] FOREIGN MINISTER CEM DUE TO EGYPT

[10] MOFAZ, CHIEF OF ISRAELI GENERAL STAFF, DUE IN ANKARA

[11] PRIME MINISTER ECEVIT:''IT IS TRUE THAT FLOATING CURRENCY GAVE NEGATIVE EFFECTS THAN EXPECTED''

[12] STATE MINISTER KEMAL DERVIS HOLDS NEWS CONFERENCE -''TARGET OF THE MEASURES IS TO HELP THOSE WHO WANT TO VALUE THEIR SAVINGS IN TURKISH LIRA''

[13] PRIME MINISTER ECEVIT: -''SOME CIRCLES TRY TO CREATE AN IMPRESSION THAT RESHUFFLE IN GOVERNMENT WOULD BETTER EVERYTHING''

[14] ALPTEKIN RESIGNS FROM SP

[15] MEMORANDUM OF UNDERSTANDING OF 13TH TERM MEETING OF TURKEY-IRAQ JEC SIGNED

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

START OF FRIENDSHIP WITH NATIONAL ANTHEM
World-wide famous conductor Riccardo Mutti who wanted to mediate between Turkey and Armenia repeated the ''Friendship Bridges'' concert he had given in Yerevan with La Scala Orchestra and Chorus in Istanbul. The orchestra played the National Anthem together with the TRT Youth Chorus.

DERVIS: ''WE SHOULD SAVE BANKERS FROM PRESSURE''
State Minister Kemal Dervis for Economy said that bankers who encountered great risks should be saved from psychological pressure. He said, ''we should get rid of corruption. However, we should also separate real thieves from those who make mistake in five out of the 100 commercial decisions.''

MILLIYET (LIBERAL)

RESCUE FUND TO COME
State Minister Kemal Dervis for Economy announced that a ''real sector rehabilitation fund'' would be formed together with the World Bank. Industrialists' loan problems will be solved with the help of the fund.

BRAZILIAN BRIDE OF FOREIGN MINISTER CEM
Foreign Minister Ismail Cem's son Kerim Cem got married with Andrea Sioufi of Brazil at the Ciragan Palace in Istanbul. Guests of the wedding ceremony were welcomed by Cem and his wife Elcin Cem and bride's parents Zilda and Alfred Sioufi. Cem's daughter Ipek Cem will marry a Turkmen businessman of Iraqi origin in the end of summer.

SABAH (LIBERAL)

FISCHER TO COME TO TURKEY FOR REVISION
IMF External Relations Department Chairman Thomas C. Dawson II said that IMF First Deputy Managing Director Stanley Fischer who would go to Turkey on Friday would observe minor details of the program. Dawson said Fischer would hold contacts until Sunday. He said that Fischer would visit Turkey to discuss the great progress achieved in the program. Noting thaty Fischer's visit was not linked with specific changes in Turkey program, Dawson said, ''there is no need to make speculations. Progress in Turkey program is effective.'' Stating that Fischer would visit Turkey upon Turkish officials' invitation, Dawson said that the aim of Fischer's visit was about the issue of how markets' confidence in Turkey's economy could be increased. Dawson said he hoped that Executive Directors meeting at which 1.5 billion U.S. dollars of third loan tranche would be approved would be completed by August 6.

CUMHURIYET (LEFT)

IS SEEMS WE ARE OVERCOMING THE SHOCK
State Minister Kemal Dervis announced that a ''reconstruction fund'' would be formed like in Korea and Brazil to rehabilitate the real sector. Confessing that negative 3 percent growth rate couldn't be achieved, Dervis said there could be a rapid recovery if they could settle confidence again. Prime Minister Bulent Ecevit defended that there was a reliable atmosphere, saying, ''everything is on track.''

RADIKAL (LEFT)

GOVERNMENT PLANS ADJUSTMENT ON WITHHOLDING TAXES
The government plans to raise the withholding tax on repo and adjust the same on deposits in a bid to enable the Treasury and banks to borrow with longer maturity. It also plans to raise the minimum limit for declaration of Treasury-bill interest gains in tax statements.

TURKIYE (RIGHT)

FIGHT IN PRISON: 1 INMATE KILLED
One inmate was killed while four others were injured in a fight among prisoners staying at the Bayrampasa Prison in Istanbul yesterday.

NSC DISCUSSES BALKANS
The National Security Council which held a 3.5-hour meeting under chairmanship of President Ahmet Necdet Sezer in Istanbul yesterday assessed the recent situation in the Balkans. In its statement, NSC said that Turkey attributed importance to peace in the region while the Foreign Ministry said that it had concerns about the clashes in Macedonia.

BAN ON SALES IN STREETS
Meat products, bread, foodstuffs, milk and milk products, dried fruits and edible nuts, Turkish delight, biscuits and sweet desserts can no more be sold in streets in accordance with a Health Ministry decision.

ZAMAN (CONSERVATIVE)

REFORMISTS TARGET ELECTIONS
Senior officials of the reformist movement, Abdullah Gul and Bulent Arinc who accelerated their works after lifting of political ban on Recep Tayyip Erdogan, visited the newspaper's office in Ankara. Gul and Arinc believe that the party they would found in early August would be influential at the Parliament. They said they targeted to gain 40 percent of total votes in next general elections, coming to the power alone.

[02] EXPORTS OF TEXTILES AND PRODUCTS FROM GAP REGION RISE 8.1 PERCENT IN FIRST HALF OF 2001

According to Southeast Anatolian Exporters' Associations statistics, 52 million 654 thousand U.S. dollars of synthetic thread, 34 million 774 thousand U.S. dollars of carpets, 31 million 989 thousand U.S. dollars of cotton thread and 22 million 562 thousand U.S. dollars of woven textiles were exported in the January-June period of 2001.

In the same period last year, the region had exported 42 million 467 thousand U.S. dollar of synthetic thread, 37 million 221 thousand U.S. dollars of carpets, 24 million 842 thousand U.S. dollars of cotton thread and 19 million 203 thousand U.S. dollars of woven textiles.

Those products were exported mostly to Syria, Saudi Arabia, Italy, Lebanon, Spain, Britain, Germany, Kazakhstan, Azerbaijan, Uzbekistan, Romania, Belgium, Israel, Bulgaria, Portugal, France, U.S., Greece and Algeria.

[03] IRANIAN NATURAL GAS PROJECT -BOTAS SENDS DELEGATION TO IRAN TO OBSERVE WHETHER MEASURING STATION SET UP BY IRAN ON BORDER IS IN LINE WITH AGREEMENT CONDITIONS

Releasing a statement, Botas said that the Iranian side had informant Botas on July 22 that the construction of the Bazargan measuring station had been finalized.

Upon this information, a Botas team had gone to Iran, Botas said.

''If it is observed that the measuring station is in line with the agreement conditions, Iranian natural gas flow to Turkey will start,'' it said.

Noting that investments in pipeline had been completed, Botas said that Turkey was ready to receive Iranian natural gas.

[04] FOREIGN TRADE STATISTICS (1) -TURKEY'S EXPORTS INCREASES 10.3 PERCENT WHILE ITS IMPORTS REDUCES 16.5 PERCENT IN JANUARY-MAY PERIOD 2001

The exports increased by 10.3 percent compared to same period last year while the decrease in imports reached 16.5 percent.

The State Institute of Statistics (DIE) said that the foreign trade deficit dropped 50.7 percent to 4 billion 457.5 million U.S. dollars, and the rate of exports meeting imports increased from 56 percent to 74 percent.

In the same peroid last year, the total exports were 11 billion 480.2 million U.S. dollars, the total imports were 20 billion 514.1 million U.S. dollars and the foreign trade deficit was 9 billion 33.9 million U.S. dollars.

Meanwhile, Turkey's exports increased by 19.1 percent from 2 billion 338.2 million U.S. dollars to 2 billion 784 million U.S. dollars, and imports decreased by 24.7 percent from 4 billion 698 million U.S. dollars to 3 billion 535.9 million U.S. dollars in May of 2001.

The realizations in foreign trade figures as of May 2000 and 2001 according to the DIE data are as follows: (million U.S. dollars)

. MAY Difference JAN-MAY Difference

. 2000 2001 (percent) 2000 2001 (percent)

. ------- ------- ------- ------- ------- ------
Exports 2,338.2 2,784.1 19.1 11,480.2 12,666.5 10.3

Imports 4,698.0 3,535.9 -24.7 20,514.1 17,124.1 -16.5

Deficit -2,359.9 -751.8 -68.1 -9,033.9 -4,457.5 -50.7

Rate of

Meeting (%) 49.8 78.7 56.0 74.0

[05] LIANG, CHINESE EMBASSY UNDERSECRETARY: ''TRADE VOLUME BETWEEN THE TWO COUNTRIES IS REALIZED AS 389 MILLION U.S. DOLLARS IN JANUARY-MAY PERIOD''

Wentao Liang, who addressed a news conference which was held in Chinese Embassy for the promotion of Chinese Republic as China would be the honorary guest of Izmir International Fair, pointed out that

Pointing out that China attributed importance to the 70th International Izmir Fair, Liang said China would attend the fair with 30 enterprises and 90 businessmen.

Liang said they would promote China in high technology, information, machine, light industry, textile and agriculture industry, and briefed about the foreign trade volume between China and Turkey.

Liang said foreign trade between the two countries reached 389 million U.S. dollars in January-May period, adding that 319 million U.S. dollars of this was formed by the exportation from China to Turkey.

Liang said the fair would be effective in overcoming this deficiency in foreign trade between the two countries, which is against Turkey.

[06] FOREIGN TRADE STATISTICS (2)

According to the State Institute of Statistics (DIE) data, Turkey imported 12 billion 205.2 million U.S. dollars of intermediate goods, 2 billion 957.1 million U.S. dollars of capital goods, and 1 billion 790.8 million U.S. dollars of consumer goods.

Imports of consumer goods decreased by 31.3 percent from 2 billion 605.1 million U.S. dollars to 1 billion 790.8 million U.S. dollars.

Imports of capital goods decreased by 26.3 percent from 4 billion 13.5 million U.S. dollars to 2 billion 957 million U.S. dollars while imports of intermediate goods decreased by 11.6 percent from 13 billion 800.8 million U.S. dollars to 12 billion 205.2 million U.S. dollars.

Meanwhile, exports of capital goods increased by 29.7 percent to 1 billion 186.3 million U.S. dollars, exports of intermediate goods rose by 11 percent to 5 billion 459.4 million U.S. dollars, and exports of consumer goods climbed 6.5 percent to 5 billion 991.9 million U.S. dollars.

Exports of manufacturing industry goods increased by 11.5 percent to 11 billion 711.1 million U.S. dollars.

Exports of agricultural and forestry products rose by 0.5 percent, and exports of fishery products increased by 17.6 percent while exports of mining and quarry products decreased 17.4 percent.

Meanwhile, imports of agricultural and forestry products decreased 42.3 percent, imports of fishery products dropped by 32.8 percent, and imports of manufacturing industry goods reduced by 18.9 percent while imports of mining and quarry products increased by 11.2 percent.

In the January-May period of 2001, exports to the European Union (EU) countries increased by 9.7 percent from 6 billion 62.1 million U.S. dollars to 6 billion 648.9 million U.S. dollars while imports from these countries decreased by 24.3 percent from 10 billion 107.3 million U.S. dollars to 7 billion 651.2 million U.S. dollars.

Exports to American countries increased by 65.2 percent from 88.6 million U.S. dollars to 146.3 million U.S. dollars while exports to Middle Eastern countries increased by 32.9 percent from 1 billion 14.4 million U.S. dollars to 1 billion 348.6 million U.S. dollars.

According to the DIE data, distribution of exports and imports in accordance with goods in January-May periods of 2000 and 2001 is as follows:

. EXPORTS Difference IMPORTS Difference

. 2000 2001 (percent) 2000 2001 (percent)

. -------- -------- ---------- ------- ------ ----------
Capital good 914.7 1,186.4 29.7 4,013.5 2,957.1 -26.3

Intermediate good 4,918.2 5,459.4 11.0 13,800.8 12,205.2 -11.6

Consumer good 5,626.4 5,991.9 6.5 2,605.1 1,790.8 -31.3

Other goods 20.8 28.7 37.8 94.6 170.9 80.7

TOTAL 11,480.2 12,666.5 10.3 20,51411 17,124.1 16.5

[07] EXTERNAL DEBT PAYMENTS -366.72 MILLION U.S. DOLLARS REPAID IN EXTERNAL DEBT BETWEEN JULY 1 AND 25

The Central Bank data show that the Treasury repaid 320.20 million U.S. dollars; the Central Bank repaid 11.32 million U.S. dollars; and the administrations with general and consolidated budget paid the remaining 35.20 million U.S. dollars.

Turkey has repaid 6 billion 437.11 million U.S. dollars in external debt since the beginning of the year.

[08] FOREIGN EXCHANGE RESERVES OF CENTRAL BANK INCREASE BY 1.8 BILLION U.S. DOLLARS

According to the Central Bank's weekly bulletin, the Central Bank's foreign exchange reserves which were 15 billion 913 million U.S. dollars on July 13, increased to 17 billion 768 million U.S. dollars on July 20.

Meanwhile, total foreign exchange reserves of banks and private finance organizations decreased 286 million U.S. dollars from 13 billion 55 million U.S. dollars to 12 billion 769 million U.S. dollars as of July 6.

Meanwhile, the international reserves comprising gold reserves of Turkey and foreign exchange reserves of the Central Bank, commercial banks and private finance organizations decreased by 389 million U.S. dollars from 30 billion 542 million U.S. dollars to 30 billion 153 million U.S. dollars as of July 6.

[09] FOREIGN MINISTER CEM DUE TO EGYPT

Cem, who will visit Cairo, is expected to meet Egyptian Foreign Minister Ahmed Mahir.

Recent developments in the Middle East, where tension gradually escalated, is expected to be mainly discussed during the visit.

The talks are important as it coincides with the visit of Israeli Prime Minister Ariel Sharon to Ankara.

Resumption of dialogue between the sides will be discussed, and the sides will seek for ways to stop violence.

[10] MOFAZ, CHIEF OF ISRAELI GENERAL STAFF, DUE IN ANKARA

Diplomatic sources told the A.A correspondent on Thursday that issues such as missile defense system, modernization of Turkish tanks, sale of unmanned planes, and delivery of Popeye-2 missiles, military satellite, helicopters and anti-tank weapons would be taken up during General Mofaz's contacts with Turkish military officials.

General Mofaz's visit to Turkey was postponed for two times due to security reasons in Israel.

His visit was attributed a peculiar importance because of discussions saying that Turkey and Israel would set up a joint missile defense system.

Earlier, Israeli Defense Minister Binyamin Ben Eliezer paid a visit to Turkey on July 9.

Following Ben Eliezer's visit, Israeli press claimed that Turkish officials had accepted Eliezer's proposal to form a joint missile defense system.

The Jerusalem Post newspaper said that Turkish defense authorities facing Iran's increasing missile threat had accepted Israel's proposal to form a joint defense system with deployment of Arrow anti-ballistic system.

Israeli Prime Minister Ariel Sharon is expected to come to Turkey in the first week of August.

[11] PRIME MINISTER ECEVIT:''IT IS TRUE THAT FLOATING CURRENCY GAVE NEGATIVE EFFECTS THAN EXPECTED''

Pointing out that they would discuss with the International Monetary Fund (IMF) how to eliminate its negative effects, Ecevit said, ''turning back from the floating currency is very difficult, but we will discuss with the IMF how to eliminate its negative effects.''

Ecevit responded to the questions of reporters following a tv program.

Responding to the question of a journalist if the government could see the future, and when the economy would overcome difficulties, Ecevit said, ''our people can look at the future with more confidence if those who direct the public don't create an extreme sensitivity in society.''

Pointing out that some positive developments were recorded in economy recently, Ecevit recalled that the IMF and the World Bank extended a big amount of aid and support to Turkey. Ecevit said this should be evaluated well, and stressed that this was an important opportunity for Turkey.

Prime Minister Ecevit stressed that there was a decrease in inflation in May and June that was more than expected, noting that that was an important development for future.

Stressing that budget figures developed well, Ecevit said, ''there are many developments which give hope. If element of confidence can be added to this, I am sure that we will be able to make economy healthy in a few months.''

When recalled that ''some decisions have been taken regarded with stoppage at source,'' and asked, ''are there any other measures to reduce foreign currency?'' Ecevit said, ''let us wait for tomorrow. Stanley Fischer, the First Deputy Managing Director of the IMF will visit Turkey. I think he will make detailed talks with the business circles and the government in Turkey. Of course, new facilities will be created for us to bring soution to many issues. Let us wait for one or two days.''

When asked if the tendency of the government was giving up floating currency, Ecevit said, ''abandoning the floating-currency regime is not on our agenda at this point. Turning back from the floating currency is very difficult, but we will discuss with the IMF how to eliminate its negative effects.''

Responding to a question if there were some concrete measures regarded with opening ways for real sector with some credits that will be obtained from the World Bank, Ecevit said, ''we have some plans in this respect. We have some ideas which particularly support the banks to contribute more to the real, producing sector. Yet, we could not reach the solution stage. The primarly problem of Turkey is to enliven productive economy. Unfortunately, many industry institutions had to be closed because of the negativities we experienced. This also adds momentum to unemployment.

[12] STATE MINISTER KEMAL DERVIS HOLDS NEWS CONFERENCE -''TARGET OF THE MEASURES IS TO HELP THOSE WHO WANT TO VALUE THEIR SAVINGS IN TURKISH LIRA''

Dervis said, ''at the same time, the target is to support the banks to fund themselves with Turkish lira.''

State Minister Kemal Dervis held a news conference with Treasury Undesecretary Faik Oztrak and Central Bank Governor Sureyya Serdengecti, and evaluated recent developments in economy.

Pointing out that renewed economy program was under implementation in Turkey for nearly three months, Dervis said when the course of the program and the economy is considered, it can be said that rapid progress started beginning from April to May.

Dervis said the interest rates decreased seriously and that first impressions of enlivening were seen starting as of mid May. He said, ''June was a intense and a difficult month. The parliament approved eight important laws in June. Naturally, some arguments occurred while discussing those laws, as it happened in every democratic country. Sometimes those discussions created tension. But when the international experiences are considered, this legal basis is accepted very rapidly. Unfortunately, a disruption occurred in the program in July because of arguments within the country, and the problems experienced in Argentina and some other countries. We witnessed some negative developments in interest rates, foreign currency, and currency market.''

Dervis said the government acted strongly, and the economy administration interverned to prevent negative developments and to put the program on the right track again. He said, ''we managed to turn the position, which was going to negative in the past one week, into positive. In fact, such kind of fluctuations occur everywhere. The betterment does not take place in a linear way in any place of the world. It is normal to experience problems in one week if betterment takes place for one week.''

Dervis pointed out that they found it beneficial to make some adjustments in economy policy from time to time under the light of developments within and outside the country. Briefing about those adjustments, Dervis said:

''The first one can be interpreted as changes toward finance sector. The second one is regarded with measures pertaining to finance sector. The target of the measures regarded with finance sector is to help those who want to value their savings in Turkish Lira,'' Dervis said.

[13] PRIME MINISTER ECEVIT: -''SOME CIRCLES TRY TO CREATE AN IMPRESSION THAT RESHUFFLE IN GOVERNMENT WOULD BETTER EVERYTHING''

Speaking at a program at the private TV-8 channel, Prime Minister Ecevit said, ''in fact, separating economy and politics from each other in the natural process is not a correct approach. Because, economy is a very important element of politics. At the same time, politics and economy have close ties with psychology. People's assessment on economic issues is based on psychological atmosphere in Turkey. Therefore, we have been experiencing an interesting process.''

Responding to a question about revision in the Council of Ministers, Prime Minister Ecevit said, ''the Democratic Left Party (DSP) targets change in the order instead of revision. Some circles try to create an impression that reshuffle in the government would better everything. It is true that ministers sometimes have to leave their office in the course of the time. I meant to say that some circles had been trying to create an impression that if number of ministers was decreased and the Political Parties Law was amended, economy would be relieved. In fact, an amendment to the Political Parties Law will be beneficial. However, I believe that we should separate them from economic problems.''

Underlining importance of security confidence in the public opinion, Prime Minister Ecevit, ''but we should refrain from using the factor of confidence in a wrong and misleading way. Both politicians and public opinion should pay careful attention to secure confidence. Therefore, transparency is of great importance. Television channels have great responsibilities to this end. Today, nothing can be hidden from Turkish public opinion. These are very pleasing developments. I suppose Turkey has the highest number of television channels among other countries. There are circles who are uneasy about it. But I do not have any concerns.''

[14] ALPTEKIN RESIGNS FROM SP

Number of SP deputies decreased to 48 following resignation of Ismail Alptekin while number of independent deputies increased to 69.

Earlier this week, Ali Sezal and Avni Dogan resigned from the SP.

Recent distribution of seats at the Parliament following Alptekin's resignation is as follows:

Democratic Left Party (DSP).....: 132

Nationalist Movement Party (MHP): 126

Motherland Party (ANAP).........: 87

True Path Party (DYP)...........: 80

SP..............................: 48
Independent.....................: 69

Vacant..........................: 8

TOTAL...........................: 550

[15] MEMORANDUM OF UNDERSTANDING OF 13TH TERM MEETING OF TURKEY-IRAQ JEC SIGNED

The memorandum of understanding was signed by the State Minister Edip Safder Gaydali and Iraqi Oil Minister Amir Rashid Muhammad al-Ubaydi.

Speaking at the signing ceremony, Gaydali noted that the memorandum of understanding would make a valuable contribution to further improvement of economic and commercial relations between Turkey and Iraq.

Underlining importance of putting into practice the memorandum of understanding, Gaydali said that they would expend efforts to encourage business circles.

Meanwhile, Iraqi Oil Minister Rashid said that both Turkey and Iraq had the necessary will to improve their commercial relations.

Rashid and accompanying delegation who came to Turkey on July 24 to attend the JEC meeting, are expected to return to Iraq on Friday.

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